-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QokOPB0Upj10JrVgBKtHzGwO4jG4L2VnYthF0U2foKlzUIRmKXgn0GTzIgbprT/R jKRkl3JPVX6bJD9vDx9gRw== 0000836687-05-000177.txt : 20050420 0000836687-05-000177.hdr.sgml : 20050420 20050420095739 ACCESSION NUMBER: 0000836687-05-000177 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20050420 DATE AS OF CHANGE: 20050420 EFFECTIVENESS DATE: 20050429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEPARATE ACCOUNT B OF ING USA ANNUITY LIFE INSURANCE CO CENTRAL INDEX KEY: 0000836687 IRS NUMBER: 000000000 STATE OF INCORPORATION: IA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-33914 FILM NUMBER: 05760772 BUSINESS ADDRESS: STREET 1: 1475 DUNWOODY DRIVE STREET 2: SUITE 400 CITY: WEST CHESTER STATE: PA ZIP: 19380-1478 BUSINESS PHONE: 610-425-3400 MAIL ADDRESS: STREET 1: 1475 DUNWOODY DRIVE STREET 2: P.O. BOX 2700 CITY: WEST CHESTER STATE: PA ZIP: 19380-2700 FORMER COMPANY: FORMER CONFORMED NAME: SEPARATE ACCOUNT B OF ING USA ANNUITY & LIFE INSURANCE CO DATE OF NAME CHANGE: 20031230 FORMER COMPANY: FORMER CONFORMED NAME: SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE CO DATE OF NAME CHANGE: 19930506 FORMER COMPANY: FORMER CONFORMED NAME: SPECIALTY MANAGERS SEPARATE ACCOUNT B DATE OF NAME CHANGE: 19910529 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEPARATE ACCOUNT B OF ING USA ANNUITY LIFE INSURANCE CO CENTRAL INDEX KEY: 0000836687 IRS NUMBER: 000000000 STATE OF INCORPORATION: IA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05626 FILM NUMBER: 05760773 BUSINESS ADDRESS: STREET 1: 1475 DUNWOODY DRIVE STREET 2: SUITE 400 CITY: WEST CHESTER STATE: PA ZIP: 19380-1478 BUSINESS PHONE: 610-425-3400 MAIL ADDRESS: STREET 1: 1475 DUNWOODY DRIVE STREET 2: P.O. BOX 2700 CITY: WEST CHESTER STATE: PA ZIP: 19380-2700 FORMER COMPANY: FORMER CONFORMED NAME: SEPARATE ACCOUNT B OF ING USA ANNUITY & LIFE INSURANCE CO DATE OF NAME CHANGE: 20031230 FORMER COMPANY: FORMER CONFORMED NAME: SEPARATE ACCOUNT B OF GOLDEN AMERICAN LIFE INSURANCE CO DATE OF NAME CHANGE: 19930506 FORMER COMPANY: FORMER CONFORMED NAME: SPECIALTY MANAGERS SEPARATE ACCOUNT B DATE OF NAME CHANGE: 19910529 485BPOS 1 n4accessone.txt REGISTRATION STATEMENT As Filed with the Securities and Exchange Commission on April 20, 2005 Registration Nos. 333-33914, 811-5626 - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. __ [ ] Post-Effective Amendment No. 7 [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. [X] (Check appropriate box or boxes) SEPARATE ACCOUNT B (Exact Name of Registrant) ING USA ANNUITY AND LIFE INSURANCE COMPANY (Name of Depositor) 1475 Dunwoody Drive West Chester, Pennsylvania 19380-1478 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (610) 425-3400 Linda E. Senker, Esq. James A. Shuchart, Esq. ING ING 1475 Dunwoody Drive 1475 Dunwoody Drive West Chester, PA 19380-1478 West Chester, PA 19380-1478 (610) 425-4139 (610) 425-3563 (Name and Address of Agent for Service) Approximate Date of Proposed Public Offering: As soon as practical after the effective date of the Registration Statement It is proposed that this filing will become effective (check appropriate box): [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on April 29, 2005 pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] on (date) pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box: [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. Title of Securities Being Registered: Deferred Combination Variable and Fixed Annuity Contracts - -------------------------------------------------------------------------------- PART A ING USA ANNUITY AND LIFE INSURANCE COMPANY SEPARATE ACCOUNT B OF ING USA ANNUITY AND LIFE INSURANCE COMPANY SEPARATE ACCOUNT EQ OF ING USA ANNUITY AND LIFE INSURANCE COMPANY PROSPECTUS SUPPLEMENT DATED APRIL 29, 2005 TO YOUR CURRENT VARIABLE ANNUITY PROSPECTUS This supplement amends certain information contained in the most recent variable annuity prospectus. Please read it carefully and keep it with your prospectus for future reference. THE "INDUSTRY DEVELOPMENTS - TRADING" SECTION OF THE PROSPECTUS IS HEREBY DELETED AND REPLACED WITH THE FOLLOWING: INDUSTRY DEVELOPMENTS - TRADING As with many financial services companies, the Company and its affiliates have received informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the financial services industry. In each case, the Company and its affiliates have been and are providing full cooperation. FUND REGULATORY ISSUES Since 2002, there has been increased governmental and regulatory activity relating to mutual funds and variable insurance products. This activity has primarily focused on inappropriate trading of fund shares, revenue sharing and directed brokerage, compensation, sales practices and suitability, arrangements with service providers, pricing, compliance and controls, and adequacy of disclosure. In addition to responding to governmental and regulatory requests on fund regulatory issues, ING management, on its own initiative, conducted, through special counsel and a national accounting firm, an extensive internal review of mutual fund trading in ING insurance, retirement, and mutual fund products. The goal of this review was to identify any instances of inappropriate trading in those products by third parties or by ING investment professionals and other ING personnel. The internal review identified several isolated arrangements allowing third parties to engage in frequent trading of mutual funds within the variable insurance and mutual fund products of ING, and identified other circumstances where frequent trading occurred despite measures taken by ING intended to combat market timing. Each of the arrangements has been terminated and disclosed to regulators, to the independent trustees of ING Funds (U.S.) and in Company reports previously filed with the SEC pursuant to the Securities Exchange Act of 1934, as amended. An affiliate of the Company, ING Funds Distributors, LLC ("IFD") has received notice from the staff of the National Association of Securities Dealers ("NASD") that the staff has made a preliminary determination to recommend that disciplinary action be brought against IFD and one of its registered persons for violations of the NASD Conduct Rules and federal securities laws in connection with frequent trading arrangements. OTHER REGULATORY MATTERS The New York Attorney General and other regulators are also conducting broad inquiries and investigations involving the insurance industry. These initiatives currently focus on, among other things, compensation and other sales incentives, potential conflicts of interest, potential anti-competitive activity, marketing practices, certain financial reinsurance arrangements, and disclosure. It is likely that the scope of these investigations will further broaden before the investigations are concluded. U.S. affiliates of the Company have received formal and informal requests in connection with such investigations, and are cooperating fully with each request for information. These initiatives may result in new legislation and regulation that could significantly affect the financial services industry, including businesses in which the Company is engaged. In light of these and other developments, U.S. affiliates of ING, including the Company, periodically review whether modifications to our business practices are appropriate. Other regulators, including the SEC and the New York Attorney General, are also likely to take some action with respect to the Company or certain affiliates before concluding their investigation of ING relating to fund trading. The potential outcome of such action is difficult to predict but could subject the Company or certain affiliates to adverse consequences, including, but not limited to, settlement payments, penalties, and other financial liability. It is not currently anticipated, however, that the actual outcome of such action will have a material adverse effect on ING or ING's U.S.-based operations, including the Company. ING has agreed to indemnify and hold harmless the ING Funds from all damages resulting from wrongful conduct by ING or its employees or from ING's internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the Securities and Exchange Commission ("SEC"). Management reported to the ING Funds Board that ING management believes that the total amount of any indemnification obligations will not be material to ING or ING's U.S.-based operations , including the Company. ING USA ANNUITY AND LIFE INSURANCE COMPANY ING USA ANNUITY AND LIFE INSURANCE COMPANY IS A STOCK COMPANY DOMICILED IN IOWA. ING USA ANNUITY AND LIFE INSURANCE COMPANY SEPARATE ACCOUNT B OF ING USA ANNUITY AND LIFE INSURANCE COMPANY PROSPECTUS SUPPLEMENT DATED APRIL 29, 2005 TO YOUR CURRENT VARIABLE ANNUITY PROSPECTUS FOR DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY CONTRACTS ISSUED BY ING USA ANNUITY AND LIFE INSURANCE COMPANY ("GOLDENSELECT ACCESS ONE", "GOLDENSELECT LANDMARK", "GOLDENSELECT LEGENDS", "CUSTOMIZED SOLUTIONS ING FOCUS", "RETIREMENT SOLUTIONS ING ROLLOVER CHOICE", "SMARTDESIGN ADVANTAGE", "SMARTDESIGN SIGNATURE" AND "WELLS FARGO ING LANDMARK" PROSPECTUSES) FOR USE ONLY IN THE COMMONWEALTH OF MASSACHUSETTS The information in this supplement updates and amends certain information contained in the above listed prospectuses. You should read and keep this supplement along with the prospectus. For Contracts issued in the Commonwealth of Massachusetts, the following provisions apply: 1. The Fixed Interest Division is not available. 2. TSA loans are not available. 3. The Nursing Home Surrender Charge Waiver is not available. ING USA ANNUITY AND LIFE INSURANCE COMPANY ING USA ANNUITY AND LIFE INSURANCE COMPANY IS A STOCK COMPANY DOMICILED IN IOWA. - -------------------------------------------------------------------------------- ING USA ANNUITY AND LIFE INSURANCE COMPANY SEPARATE ACCOUNT B OF ING USA ANNUITY AND LIFE INSURANCE COMPANY DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY PROSPECTUS ING GOLDENSELECT ACCESS(R) ONE - -------------------------------------------------------------------------------- APRIL 29, 2005 This prospectus describes ING GoldenSelect Access One, a deferred group and individual deferred variable annuity contract (the "Contract") offered by ING USA Annuity and Life Insurance Company ("ING USA" the "Company," "we," "us" or "our"). The Contract is available in connection with certain retirement plans that qualify for special federal income tax treatment ("qualified Contracts") as well as those that do not qualify for such treatment ("non-qualified Contracts"). The Contract provides a means for you to invest your premium payments in one or more mutual fund investment portfolios. You may also allocate premium payments to our Fixed Account with guaranteed interest periods. Your contract value will vary daily to reflect the investment performance of the investment portfolio(s) you select and any interest credited to your allocations in the Fixed Account. For Contracts sold in some states, not all Fixed Interest Allocations or subaccounts are available. The investment portfolios available under your Contract and the portfolio managers are listed on the next page. You have a right to return a Contract within 10 days after you receive it for a refund of the adjusted contract value (which may be more or less than the premium payments you paid), or if required by your state, the original amount of your premium payment. Longer free look periods apply in some states and in certain situations. REPLACING AN EXISTING ANNUITY WITH THE CONTRACT MAY NOT BE BENEFICIAL TO YOU. YOUR EXISTING ANNUITY MAY BE SUBJECT TO FEES OR PENALTIES ON SURRENDER, AND THE CONTRACT MAY HAVE NEW CHARGES. This prospectus provides information that you should know before investing and should be kept for future reference. A Statement of Additional Information, dated April 29, 2005, has been filed with the Securities and Exchange Commission. It is available without charge upon request. To obtain a copy of this document, write to our Customer Service Center at P.O. Box 9271, Des Moines, Iowa 50306-9271 or call (800) 366-0066, or access the SEC's website (http://www.sec.gov). The table of contents of the Statement of Additional Information ("SAI") is on the last page of this prospectus and the SAI is made part of this prospectus by reference. THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN ANY SUBACCOUNT THROUGH A TRUST OR FUND IS NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED BY ANY BANK OR BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. - -------------------------------------------------------------------------------- THE INVESTMENT PORTFOLIOS ARE LISTED ON THE BACK OF THIS COVER. - -------------------------------------------------------------------------------- AccessOne - 134794 The investment portfolios available under your Contract are: ING INVESTORS TRUST ING AIM Mid Cap Growth Portfolio (Class S) ING Alliance Mid Cap Growth Portfolio (Class S) ING American Funds Growth Portfolio ING American Funds Growth-Income Portfolio ING American Funds International Portfolio ING Capital Guardian Managed Global Portfolio (Class S) ING Capital Guardian Small/Midcap Portfolio (Class S) ING Capital Guardian U.S. Equities Portfolio (Class S) ING Eagle Asset Capital Appreciation Portfolio (Class S) ING Evergreen Health Sciences Portfolio (Class S) ING Evergreen Omega Portfolio (Class S) ING FMR(SM) Diversified Mid Cap Portfolio (Class S) ING FMR(SM) Earnings Growth Portfolio (Class S) ING Global Resources Portfolio (Class S) ING Goldman Sachs Tollkeeper(SM) Portfolio (Class S) ING Janus Contrarian Portfolio (Class S) ING Jennison Equity Opportunities Portfolio (Class S) ING JPMorgan Emerging Markets Equity Portfolio (Class S) ING JPMorgan Small Cap Equity Portfolio (Class S) ING JPMorgan Value Opportunities Portfolio (Class S) ING Julius Baer Foreign Portfolio (Class S) ING Legg Mason Value Portfolio (Class S) ING LifeStyle Aggressive Growth Portfolio (Class S1) ING LifeStyle Growth Portfolio (Class S1) ING LifeStyle Moderate Growth Portfolio (Class S1) ING LifeStyle Moderate Portfolio (Class S1) ING Liquid Assets Portfolio (Class S) ING Marsico Growth Portfolio (Class S) ING Marisco International Opportunities Portfolio (Class S) ING Mercury Focus Value Portfolio (Class S) ING Mercury Large Cap Growth Portfolio (Class S) ING MFS Mid Cap Growth Portfolio (Class S) ING MFS Total Return Portfolio (Class S) ING MFS Utilities Portfolio (Class S) ING Oppenheimer Main Street Portfolio (Class S) ING PIMCO Core Bond Portfolio (Class S) ING PIMCO High Yield Portfolio (Class S) ING Pioneer Fund Portfolio (Class S) ING Pioneer Mid Cap Value Portfolio (Class S) ING Salomon Brothers All Cap Portfolio (Class S) ING Salomon Brothers Investors Portfolio (Class S) ING T. Rowe Price Capital Appreciation Portfolio (Class S) ING T. Rowe Price Equity Income Portfolio (Class S) ING UBS U.S. Allocation Portfolio (Class S) ING Van Kampen Equity Growth Portfolio (Class S) ING Van Kampen Global Franchise Portfolio (Class S) ING Van Kampen Growth and Income Portfolio (Class S) ING Van Kampen Real Estate Portfolio (Class S) ING PARTNERS, INC. ING Baron Small Cap Growth Portfolio (Service Class) ING Fundamental Research Portfolio (Service Class) ING JPMorgan Fleming International Portfolio (Service Class) ING Oppenheimer Global Portfolio (Service Class) ING Salomon Brothers Aggressive Growth Portfolio (Service Class) ING UBS U.S. Large Cap Equity Portfolio (Service Class) ING Van Kampen Comstock Portfolio (Service Class) ING Van Kampen Equity and Income Portfolio (Service Class) ING VARIABLE INSURANCE TRUST ING VP Global Equity Dividend Portfolio ING VARIABLE PORTFOLIOS, INC. ING VP Index Plus LargeCap Portfolio (Class S) ING VP Index Plus MidCap Portfolio (Class S) ING VP Index Plus SmallCap Portfolio (Class S) ING VARIABLE PRODUCTS TRUST ING VP Financial Services Portfolio (Class S) ING VP SmallCap Opportunities Portfolio (Class S) ING VP INTERMEDIATE BOND PORTFOLIO (CLASS S) AIM VARIABLE INSURANCE FUNDS AIM V.I. Leisure Fund (Series I) FIDELITY VARIABLE INSURANCE PRODUCTS PORTFOLIO Fidelity VIP Contrafund Portfolio (Service Class 2) Fidelity VIP Equity-Income Portfolio (Service Class 2) LIBERTY VARIABLE INSURANCE TRUST Colonial Small Cap Value Fund (Class B) PROFUNDS VP ProFund VP Bull ProFund VP Europe 30 ProFund VP Rising Rates Opportunity ProFund VP Small-Cap AccessOne - 134794 - -------------------------------------------------------------------------------- TABLE OF CONTENTS - -------------------------------------------------------------------------------- PAGE Index of Special Terms .................................................... ii Fees and Expenses ......................................................... 1 Condensed Financial Information ........................................... 2 Accumulation Unit ....................................................... 2 The Net Investment Factor ............................................... 2 Performance Information ................................................. 3 Financial Statements .................................................... 3 ING USA Annuity and Life Insurance Company ................................ 4 ING USA Separate Account B ................................................ 4 The Trusts and Funds ...................................................... 4 Charges and Fees .......................................................... 5 Charge Deduction Subaccount ............................................. 5 Charges Deducted from the Contract Value ................................ 5 No Surrender Charge ................................................. 5 Premium Taxes ....................................................... 5 Transfer Charge ..................................................... 5 Charges Deducted from the Subaccounts ................................... 6 Mortality and Expense Risk Charge ................................... 6 Asset-Based Administrative Charge ................................... 6 Trust and Fund Expenses ................................................. 6 The Annuity Contract ...................................................... 6 Contract Date and Contract Year ......................................... 6 Annuity Start Date ...................................................... 6 Contract Owner .......................................................... 7 Annuitant ............................................................... 7 Beneficiary ............................................................. 8 Purchase and Availability of the Contract ............................... 8 Crediting of Premium Payments ........................................... 8 Administrative Procedures ............................................... 10 Contract Value .......................................................... 10 Cash Surrender Value .................................................... 10 Surrendering to Receive the Cash Surrender Value ........................ 11 The Subaccounts ......................................................... 11 Addition, Deletion or Substitution of Subaccounts and Other Changes ..... 11 The Fixed Account ....................................................... 11 Other Contracts ......................................................... 11 Withdrawals ............................................................... 12 Transfers Among Your Investments .......................................... 14 Death Benefit ............................................................. 17 Death Benefit During the Accumulation Phase ............................. 17 Death Benefit During the Income Phase ................................... 17 Continuation After Death -- Spouse ...................................... 18 Continuation After Death -- Not a Spouse ................................ 18 Required Distributions Upon Contract Owner's Death ...................... 18 The Annuity Options ....................................................... 19 Other Contract Provisions ................................................. 21 Other Information ......................................................... 23 Federal Tax Considerations ................................................ 24 Statement of Additional Information Table of Contents .......................................................SAI-1 Appendix A Condensed Financial Information ......................................... A1 Appendix B The Investment Portfolios ............................................... B1 Appendix C Fixed Account I ......................................................... C1 Appendix D Fixed Interest Division ................................................. D1 i AccessOne - 134794 - -------------------------------------------------------------------------------- INDEX OF SPECIAL TERMS - -------------------------------------------------------------------------------- The following special terms are used throughout this prospectus. Refer to the page(s) listed for an explanation of each term: ------------------------------------------------------------ SPECIAL TERM PAGE ------------------------------------------------------------ Accumulation Unit 2 ------------------------------------------------------------ Annuitant 7 ------------------------------------------------------------ Annuity Start Date 6 ------------------------------------------------------------ Cash Surrender Value 10 ------------------------------------------------------------ Contract Date 6 ------------------------------------------------------------ Contract Owner 7 ------------------------------------------------------------ Contract Value 10 ------------------------------------------------------------ Contract Year 6 ------------------------------------------------------------ Death Benefit 17 ------------------------------------------------------------ Net Investment Factor 2 ------------------------------------------------------------ Net Rate of Return 2 ------------------------------------------------------------ The following terms as used in this prospectus have the same or substituted meanings as the corresponding terms currently used in the Contract: - -------------------------------------------------------------------------------- TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN THE CONTRACT - -------------------------------------------------------------------------------- Accumulation Unit Value Index of Investment Experience - -------------------------------------------------------------------------------- Annuity Start Date Annuity Commencement Date - -------------------------------------------------------------------------------- Contract Owner Owner or Certificate Owner - -------------------------------------------------------------------------------- Contract Value Accumulation Value - -------------------------------------------------------------------------------- Transfer Charge Excess Allocation Charge - -------------------------------------------------------------------------------- Fixed Interest Allocation Fixed Allocation - -------------------------------------------------------------------------------- Free Look Period Right to Examine Period - -------------------------------------------------------------------------------- Guaranteed Interest Period Guarantee Period - -------------------------------------------------------------------------------- Subaccount(s) Division(s) - -------------------------------------------------------------------------------- Net Investment Factor Experience Factor - -------------------------------------------------------------------------------- Regular Withdrawals Conventional Partial Withdrawals - -------------------------------------------------------------------------------- Withdrawals Partial Withdrawals - -------------------------------------------------------------------------------- ii AccessOne - 134794 - -------------------------------------------------------------------------------- FEES AND EXPENSES - -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. The first table describes the fees and expenses that you will pay at the time that you buy the contract, surrender the contract, or transfer contract value between investment options. State premium taxes may also be deducted. CONTRACT OWNER TRANSACTION EXPENSES(1) Surrender Charge.................................................... None Transfer Charge........................................ $25 per transfer, if you make more than 12 transfers in a contract year. (2) (1) If you invested in a Fixed Interest Allocation, a Market Value Adjustment may apply to certain transactions. This may increase or decrease your contract value and/or your transfer or surrender amount. (2) We currently do not impose this charge, but may do so in the future. The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including Trust or Fund fees and expenses. SEPARATE ACCOUNT ANNUAL CHARGES(3) Mortality & Expense Risk Charge.................................... 0.35% Asset-Based Administrative Charge.................................. 0.15% ----- Total............................................................ 0.50% (3) As a percentage of average daily assets in each subaccount. The mortality and expense risk charge and the asset-based administrative charge are deducted daily. TRUST OR FUND EXPENSES The next item shows the minimum and maximum total operating expenses charged by the Trust or Fund that you may pay periodically during the time that you own the Contract. More detail concerning each Trust or Fund's fees and expenses is contained in the prospectus for each Trust or Fund.
----------------------------------------------------------------------------------------------------------------- TOTAL ANNUAL TRUST OR FUND OPERATING EXPENSES (4) MINIMUM MAXIMUM ----------------------------------------------------------------------------------------------------------------- (expenses that are deducted from Trust or Fund assets, including management fees, distribution and/or service (12b-1) fees(5), and other expenses): 0.54% 1.78% -----------------------------------------------------------------------------------------------------------------
(4) The minimum and maximum total operating expenses charged by a Trust or Fund including applicable expense reimbursement or fee waiver arrangements would also be 0.54% to 1.78%. The expense reimbursement or fee arrangement reflected is expected to continue through May 1, 2006. (5) The Company may receive compensation from each of the funds or the funds' affiliates based on an annual percentage of the average net assets held in that fund by the Company. The percentage paid may vary from one fund company to another. For certain funds, some of this compensation may be paid out of 12b-1 fees or service fees that are deducted from fund assets. Any such fees deducted from fund assets are disclosed in the Fund or Trust prospectuses. The Company may also receive additional compensation from certain funds for administrative, recordkeeping or other services provided by the Company to the funds or the funds' affiliates. These additional payments are made by the funds or the funds' affiliates to the Company and do not increase, directly or indirectly, the fees and expenses shown above. 1 AccessOne - 134794 Premium taxes (which currently range from 0% to 3.5% of premium payments) may apply, but are not reflected in the example below. EXAMPLE: This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and Trust or Fund fees and expenses. The Example assumes that you invest $10,000 in the Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the maximum fees and expenses of any of the Trusts or Funds. The Example reflects the deduction of a mortality and expense risk charge and an asset-based administrative charge Although your actual costs may be higher or lower, based on these assumptions, your costs would be: - -------------------------------------------------------------------------------- If you surrender your contract at the end of the applicable time period: - -------------------------------------------------------------------------------- 1 year 3 years 5 years 10 years $232 $715 $1,225 $2,626 - -------------------------------------------------------------------------------- Compensation is paid for the sale of the Contracts. For information about this compensation, see "Selling the Contract." - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION - -------------------------------------------------------------------------------- ACCUMULATION UNIT We use accumulation units to calculate the value of a Contract. Each subaccount of Separate Account B has its own accumulation unit value. The accumulation units are valued each business day that the New York Stock Exchange is open for trading. Their values may increase or decrease from day to day according to a Net Investment Factor, which is primarily based on the investment performance of the applicable investment portfolio. Shares in the investment portfolios are valued at their net asset value. Tables containing (i) the accumulation unit value history of each subaccount of ING USA Separate Account B offered in this prospectus, and (ii) the total investment value history of each subaccount are presented in Appendix A -- Condensed Financial Information. THE NET INVESTMENT FACTOR The Net Investment Factor is an index number which reflects certain charges under the Contract and the investment performance of the subaccount. The Net Investment Factor is calculated for each subaccount as follows: 1) We take the net asset value of the subaccount at the end of each business day. 2) We add to (1) the amount of any dividend or capital gains distribution declared for the subaccount and reinvested in such subaccount. We subtract from that amount a charge for our taxes, if any. 3) We divide (2) by the net asset value of the subaccount at the end of the preceding business day. 4) We then subtract the applicable daily mortality and expense risk charge and the daily asset-based administrative charge from the subaccount. Calculations for the subaccounts are made on a per share basis. The Net Rate of Return equals the Net Investment Factor minus one. 2 AccessOne - 134794 PERFORMANCE INFORMATION From time to time, we may advertise or include in reports to contract owners performance information for the subaccounts of Separate Account B, including the average annual total return performance, yields and other nonstandard measures of performance. Such performance data will be computed, or accompanied by performance data computed, in accordance with standards defined by the SEC. Except for the Liquid Asset subaccount, quotations of yield for the subaccounts will be based on all investment income per unit (contract value divided by the accumulation unit) earned during a given 30-day period, less expenses accrued during such period. Information on standard total average annual return performance will include average annual rates of total return for 1, 5 and 10 year periods, or lesser periods depending on how long Separate Account B has been investing in the portfolio. We may show other total returns for periods less than one year. Total return figures will be based on the actual historic performance of the subaccounts of Separate Account B, assuming an investment at the beginning of the period when the separate account first invested in the portfolios, withdrawal of the investment at the end of the period, adjusted to reflect the deduction of all applicable portfolio and current contract charges. We may also show rates of total return on amounts invested at the beginning of the period with no withdrawal at the end of the period. Total return figures which assume no withdrawals at the end of the period will reflect all recurring charges. In addition, we may present historic performance data for the investment portfolios since their inception reduced by some or all of the fees and charges under the Contract. Such adjusted historic performance includes data that precedes the inception dates of the subaccounts of Separate Account B. This data is designed to show the performance that would have resulted if the Contract had been in existence before the separate account began investing in the portfolios. Current yield for the Liquid Asset subaccount is based on income received by a hypothetical investment over a given 7-day period, less expenses accrued, and then "annualized" (i.e., assuming that the 7-day yield would be received for 52 weeks). We calculate "effective yield" for the Liquid Asset subaccount in a manner similar to that used to calculate yield, but when annualized, the income earned by the investment is assumed to be reinvested. The "effective yield" will thus be slightly higher than the "yield" because of the compounding effect of earnings. We calculate quotations of yield for the remaining subaccounts on all investment income per accumulation unit earned during a given 30-day period, after subtracting fees and expenses accrued during the period. YOU SHOULD BE AWARE THAT THERE IS NO GUARANTEE THAT THE LIQUID ASSET SUBACCOUNT WILL HAVE A POSITIVE OR LEVEL RETURN. We may compare performance information for a subaccount to: (i) the Standard & Poor's 500 Stock Index, Dow Jones Industrial Average, Donoghue Money Market Institutional Averages, or any other applicable market indices, (ii) other variable annuity separate accounts or other investment products tracked by Lipper Analytical Services (a widely used independent research firm which ranks mutual funds and other investment companies), or any other rating service, and (iii) the Consumer Price Index (measure for inflation) to determine the real rate of return of an investment in the Contract. Our reports and promotional literature may also contain other information including the ranking of any subaccount based on rankings of variable annuity separate accounts or other investment products tracked by Lipper Analytical Services or by similar rating services. Performance information reflects only the performance of a hypothetical contract and should be considered in light of other factors, including the investment objective of the investment portfolio and market conditions. Please keep in mind that past performance is not a guarantee of future results. FINANCIAL STATEMENTS The statement of assets and liabilities of Separate Account B as of December 31, 2004, and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended are included in the Statement of Additional Information. The consolidated financial statements and schedules of ING USA Annuity and Life Insurance Company, as of December 31, 2004 and 2003 and for each of the three years in the period ended December 31, 2004 are included in the Statement of Additional Information. 3 AccessOne - 134794 - -------------------------------------------------------------------------------- ING USA ANNUITY AND LIFE INSURANCE COMPANY - -------------------------------------------------------------------------------- ING USA Annuity and Life Insurance Company, ("ING USA") is an Iowa stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. ING USA is a wholly owned subsidiary of Lion Connecticut Holdings Inc. ("Lion Connecticut"), which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. ING USA is authorized to sell insurance and annuities in all states, except New York, and the District of Columbia. ING USA's consolidated financial statements appear in the Statement of Additional Information. Lion Connecticut is the holding company for , Directed Services, Inc., the investment manager of the ING Investors Trust and the distributor of the Contracts, and other interests. ING also owns ING Investments, LLC and ING Investment Management, Co., portfolio managers of the ING Investors Trust, and the investment managers of the ING Variable Insurance Trust and ING Variable Products Trust and ING Variable Product Portfolios, respectively. ING also owns Baring International Investment Limited, another portfolio manager of the ING Investors Trust. Our principal office is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380. - -------------------------------------------------------------------------------- ING USA SEPARATE ACCOUNT B - -------------------------------------------------------------------------------- ING USA Separate Account B, ("Separate Account B") was established as a separate account of the Company on July 14, 1988. It is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (the "1940 Act"). Separate Account B is a separate investment account used for our variable annuity contracts. We own all the assets in Separate Account B but such assets are kept separate from our other accounts. Separate Account B is divided into subaccounts. Each subaccount invests exclusively in shares of one investment portfolio of a Trust or Fund. Each investment portfolio has its own distinct investment objectives and policies. Income, gains and losses, realized or unrealized, of a portfolio are credited to or charged against the corresponding subaccount of Separate Account B without regard to any other income, gains or losses of the Company. Assets equal to the reserves and other contract liabilities with respect to each are not chargeable with liabilities arising out of any other business of the Company. They may, however, be subject to liabilities arising from subaccounts whose assets we attribute to other variable annuity contracts supported by Separate Account B. If the assets in Separate Account B exceed the required reserves and other liabilities, we may transfer the excess to our general account. We are obligated to pay all benefits and make all payments provided under the Contracts. NOTE: We currently offer other variable annuity contracts that invest in Separate Account B but are not discussed in this prospectus. Separate Account B may also invest in other investment portfolios which are not available under your Contract. Under certain circumstances, we may make certain changes to the subaccounts. For more information, see "The Annuity Contract -- Addition, Deletion, or Substitution of Subaccounts and Other Changes." - -------------------------------------------------------------------------------- THE TRUSTS AND FUNDS - -------------------------------------------------------------------------------- YOU WILL FIND INFORMATION ABOUT THE TRUSTS AND FUNDS CURRENTLY AVAILABLE UNDER YOUR CONTRACT IN APPENDIX B -- THE INVESTMENT PORTFOLIOS. A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION ON EACH TRUST OR FUND MAY BE OBTAINED BY CALLING OUR CUSTOMER SERVICE CENTER AT 800-366-0066. YOU SHOULD READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. Certain funds are designated as "Master-Feeder" or "LifeStyle Funds". Funds offered in a Master-Feeder structure (such as the American Funds) or fund of funds structure (such as the LifeStyle Funds) may have higher fees and expenses than a fund that invests directly in debt and equity securities. See "Trust and Fund Expenses". Also, you should discuss with your registered representative whether the LifeStyle Funds are appropriate for you, particularly if you are a conservative investor. 4 AccessOne - 134794 If, due to differences in tax treatment or other considerations, the interests of contract owners of various contracts participating in the Trusts or Funds conflict, we, the Boards of Trustees or Directors of the Trusts or Funds, and any other insurance companies participating in the Trusts of Funds will monitor events to identify and resolve any material conflicts that may arise. - -------------------------------------------------------------------------------- CHARGES AND FEES - -------------------------------------------------------------------------------- We deduct the Contract charges described below to compensate us for our cost and expenses, services provided and risks assumed under the Contracts. We incur certain costs and expenses for distributing and administrating the Contracts, including compensation and expenses paid in connection with sales of the Contracts, for paying the benefits payable under the Contracts and for bearing various risks associated with the Contracts. The amount of a Contract charge will not always correspond to the actual costs associated with the charge. In the event there are any profits from fees and charges deducted under the Contract, including the mortality and expense risk charge and rider and benefit charges, we may use such profits to finance the distribution of Contracts. CHARGE DEDUCTION SUBACCOUNT You may elect to have all charges against your contract value deducted directly from a single subaccount designated by the Company. Currently we use the Liquid Asset subaccount for this purpose. If you do not elect this option, or if the amount of the charges is greater than the amount in the designated subaccount, the charges will be deducted as discussed below. You may cancel this option at any time by sending satisfactory notice to our Customer Service Center. CHARGES DEDUCTED FROM THE CONTRACT VALUE We deduct the following charges from your contract value: NO SURRENDER CHARGE. We do not deduct any surrender charges for withdrawals. PREMIUM TAXES. We may make a charge for state and local premium taxes depending your state of residence. The tax can range from 0% to 3.5% of the premium payment. We have the right to change this amount to conform with changes in the law or if you change your state of residence. We deduct the premium tax from your contract value on the annuity start date. However, some jurisdictions impose a premium tax at the time that initial and additional premiums are paid, regardless of when the annuity payments begin. In those states we may defer collection of the premium taxes from your contract value and deduct it when you surrender the Contract or on the annuity start date. TRANSFER CHARGE. We currently do not deduct any charges for transfers made during a contract year. We have the right, however, to assess up to $25 for each transfer after the twelfth transfer in a contract year. If such a charge is assessed, we would deduct the charge from the subaccounts and the Fixed Interest Allocations from which each such transfer is made in proportion to the amount being transferred from each such subaccount and Fixed Interest Allocation unless you have chosen to have all charges deducted from a single subaccount. The charge will not apply to any transfers due to the election of dollar cost averaging, auto rebalancing and transfers we make to and from any subaccount specially designated by the Company for such purpose. REDEMPTION FEES. If applicable, we may deduct the amount of any redemption fees imposed by the underlying portfolios as a result of withdrawals, transfers or other fund transactions you initiate. Redemption fees, if any, are separate and distinct from any transaction charges or other charges deducted from your contract value. 5 AccessOne - 134794 CHARGES DEDUCTED FROM THE SUBACCOUNTS MORTALITY AND EXPENSE RISK CHARGE. The mortality and expense risk charge is deducted each business day. The charge, on an annual basis, is equal to 0.35% of the assets you have in each subaccount. The charge is deducted on each business day at the rate of .000961% for each day since the previous business day. ASSET-BASED ADMINISTRATIVE CHARGE. The amount of the asset-based administrative charge, on an annual basis, is equal to 0.15% of the assets you have in each subaccount. The charge is deducted on each business day at the rate of .000411% for each day since the previous business day. This charge is deducted daily from your assets in each subaccount. TRUST AND FUND EXPENSES Each fund deducts management fees from the amounts allocated to the funds. In addition, each fund deducts other expenses which may include service fees which are used to compensate service providers, including the Company and its affiliates, for administrative and contract owner services provided on behalf of the fund. Furthermore, certain funds deduct a distribution or 12b-1 fee, which is used to finance any activity that is primarily intended to result in the sale of fund shares. FOR A MORE COMPLETE DESCRIPTION OF THE FUNDS' FEES AND EXPENSES, REVIEW EACH FUND'S PROSPECTUS. The Company, or its U.S. affiliates, receives from each of the funds or the funds' affiliates varying levels and types of revenue with respect to each of the funds available through the Contract. In terms of total dollar amounts received, the greatest amount of revenue comes from assets allocated to funds managed by ING Investments, LLC or other Company affiliates, which funds may or may not also be sub-advised by another Company affiliate. Assets allocated to funds managed by a Company affiliate, Directed Services, Inc., for example, but which are sub-advised by unaffiliated third parties generate the next greatest amount of revenue. Finally, assets allocated to unaffiliated funds generate the least amount of revenue. TYPES OF REVENUE RECEIVED FROM AFFILIATED FUNDS Affiliated funds are (a) funds managed by ING Investments, LLC or other Company affiliates, which may or may not also be sub-advised by a Company affiliate; and (b) funds managed by a Company affiliate but which are sub-advised by unaffiliated third parties. Revenues received by the Company from affiliated funds include: o Service fees that are deducted from fund assets. o For certain share classes, the Company may also receive compensation paid out of 12b-1 fees that are deducted from fund assets. o Additionally, the Company receives other revenues from affiliated funds and/or their affiliates which may be based either on an annual percentage of average net assets held in the fund by the Company or a percentage of the management fees. These revenues may be received as cash payments or according to a variety of financial accounting techniques which are used to allocate revenue and profits across ING businesses. For funds sub-advised by unaffiliated third parties, once the sub-adviser has been paid, the adviser may share a portion of the remaining management fee with the Company. Because sub-advisory fees vary by sub-adviser, varying amounts of revenue are retained by the affiliated investment adviser and ultimately shared with the Company. TYPES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS Revenues received from each of the unaffiliated funds or their affiliates is based on an annual percentage of the average net assets held in that fund by the Company. Some unaffiliated funds or their affiliates pay us more than others and some of the amounts we receive may be significant. 6 AccessOne - 134794 Revenues received by the Company from unaffiliated funds include: o For certain funds, compensation paid from 12b-1 fees or service fees that are deducted from fund assets. o We may also receive additional payments for administrative, recordkeeping or other services which we provide to the funds or their affiliates or as an incentive for us to make the funds available through the Contract. These additional payments may be used by us to finance distribution of the Contract. The following table shows the unaffiliated fund families which have funds currently offered through the Contract, ranked according to total dollar amounts they paid to the Company or its affiliates in 2004: Fidelity Variable Insurance Products Portfolio ProFunds VP AIM Variable Insurance Funds Liberty Variable Insurance Trust If the revenues received from affiliated funds were included in the table above, payments to the Company or its affiliates by ING Investments, LLC and other Company affiliates would be at the top of the list. Management personnel of the Company, and of its affiliated broker-dealers, may receive additional compensation if the overall amount of investments in funds advised by the Company or its affiliates meets certain target levels or increases over time. Compensation for certain management personnel, including sales management personnel, may be enhanced if the overall amount of investments in the contracts and other products issued or advised by the Company or its affiliates increases over time. Certain sales management personnel may also receive compensation that is a specific percentage of the commissions paid to distributors or of purchase payments received under the contracts. - -------------------------------------------------------------------------------- THE ANNUITY CONTRACT - -------------------------------------------------------------------------------- The Contract described in this prospectus is a deferred combination variable and fixed annuity contract. The Contract provides a means for you to invest in one or more of the available mutual fund portfolios of the Trusts and Funds through Separate Account B. It also provides a means for you to invest in a Fixed Interest Allocation through the Fixed Account. See Appendix C and the Fixed Account I prospectus for more information on the Fixed Interest Allocation and Fixed Account. CONTRACT DATE AND CONTRACT YEAR The date the Contract became effective is the contract date. Each 12-month period following the contract date is a contract year. ANNUITY START DATE The annuity start date is the date you start receiving annuity payments under your Contract. The Contract, like all deferred variable annuity contracts, has two phases: the accumulation phase and the income phase. The accumulation phase is the period between the contract date and the annuity start date. The income phase begins when you start receiving regular annuity payments from your Contract on the annuity start date. 7 AccessOne - 134794 CONTRACT OWNER You are the contract owner. You are also the annuitant unless another annuitant is named in the application. You have the rights and options described in the Contract. One or more persons may own the Contract. The death benefit becomes payable when you die. In the case of a sole contract owner who dies before the annuity start date, we will pay the beneficiary the death benefit then due. The sole contract owner's estate will be the beneficiary if no beneficiary has been designated or the beneficiary has predeceased the contract owner. In the case of a joint owner of the Contract dying before the annuity start date, we will designate the surviving contract owner as the beneficiary. This will override any previous beneficiary designation. See "Joint Owner" below. If the contract owner is a trust and a beneficial owner of the trust has been designated, the beneficial owner will be treated as the contract owner for determining the death benefit. If a beneficial owner is changed or added after the contract date, we will treat this as a change of contract owner for determining the death benefit (likely a taxable event). JOINT OWNER. For non-qualified Contracts only, joint owners may be named in a written request before the Contract is in effect. Joint owners may independently exercise transfers and other transactions allowed under the Contract. All other rights of ownership must be exercised by both owners. Joint owners own equal shares of any benefits accruing or payments made to them. All rights of a joint owner end at death of that owner if the other joint owner survives. The entire interest of the deceased joint owner in the Contract will pass to the surviving joint owner and the death benefit is paid upon the death of the first of the joint owners to die. If any owner's age is 86 or greater, the death benefit guarantee will be lost. Unless otherwise specified, the term "age" when used for joint owners shall mean the age of the oldest owner. ANNUITANT The annuitant is the person designated by you to be the measuring life in determining annuity payments. The annuitant's age determines when the income phase must begin and the amount of the annuity payments to be paid. You are the annuitant unless you choose to name another person. The annuitant may not be changed after the Contract is in effect. The contract owner will receive the annuity benefits of the Contract if the annuitant is living on the annuity start date. If the annuitant dies before the annuity start date, and a contingent annuitant has been named, the contingent annuitant becomes the annuitant (unless the contract owner is not an individual, in which case the death benefit becomes payable). When the annuitant dies before the annuity start date, and there is no contingent annuitant, the contract owner will become the annuitant. The contract owner may designate a new annuitant within 60 days of the death of the annuitant. If there is no contingent annuitant when the annuitant dies before the annuity start date and the contract owner is not an individual, we will pay the designated beneficiary the death benefit then due. If a beneficiary has not been designated, or if there is no designated beneficiary living, the contract owner will be the beneficiary. If the annuitant was the sole contract owner and there is no beneficiary designation, the annuitant's estate will be the beneficiary. Regardless of whether a death benefit is payable, if the annuitant dies and any contract owner is not an individual, distribution rules under federal tax law will apply. You should consult your tax advisor for more information if the contract owner is not an individual. BENEFICIARY The beneficiary is named by you in a written request. The beneficiary is the person who receives any death benefit proceeds. We pay death benefits to the primary beneficiary (unless there are joint owners, in which case death proceeds are payable to the surviving owner(s)). 8 AccessOne - 134794 If the beneficiary dies before the annuitant or the contract owner, we pay the death benefit proceeds to the contingent beneficiary, if any. If there is no surviving beneficiary, we pay the death benefit proceeds to the contract owner's estate. One or more persons may be a beneficiary or contingent beneficiary. In the case of more than one beneficiary, we will assume any death benefit proceeds are to be paid in equal shares to the surviving beneficiaries, unless you indicate otherwise in writing. You have the right to change beneficiaries during the annuitant's lifetime unless you have designated an irrevocable beneficiary. When an irrevocable beneficiary has been designated, you and the irrevocable beneficiary may have to act together to exercise some of the rights and options under the Contract. You may also restrict a beneficiary's right to elect an annuity option or receive a lump sum payment. If so such rights or options will not be available to the beneficiary. CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's lifetime, you may transfer ownership of a non-qualified Contract. A change in ownership may affect the amount of the death benefit. If the new owner's age is greater than 85, the death benefit will be the cash surrender value. The new owner's death will determine when a death benefit is payable. A change of owner likely has tax consequences. See "Federal Tax Considerations in this prospectus. PURCHASE AND AVAILABILITY OF THE CONTRACT The Contract is available only in connection with a non-discretionary asset-based fee brokerage account. We will issue a Contract only if both the annuitant and the contract owner are not older than age 85. The initial premium payment must be $10,000 or more ($1,500 for qualified Contracts). You may make additional payments of at least $500 or more ($50 for qualified Contracts) at any time after the free look period and up to the contract anniversary after your 85th birthday. Under certain circumstances, we may waive the minimum premium payment requirement. We may also change the minimum initial or additional premium requirements for certain group or sponsored arrangements. Any initial or additional premium payment that would cause the contract value of all annuities that you maintain with us to exceed $1,000,000 requires our prior approval. The Contract is designed for people seeking long-term tax-deferred accumulation of assets, generally for retirement or other long-term purposes. The tax-deferred feature is more attractive to people in high federal and state tax brackets. YOU SHOULD NOT BUY THIS CONTRACT: (I) IF YOU ARE LOOKING FOR A SHORT-TERM INVESTMENT; (II) IF YOU CANNOT RISK GETTING BACK LESS MONEY THAN YOU PUT IN; OR (III) IF YOUR ASSETS ARE IN A PLAN WHICH PROVIDES FOR TAX-DEFERRAL AND YOU SEE NO OTHER REASON TO PURCHASE THIS CONTRACT. IRAs and other qualified plans already have the tax-deferral feature found in this Contract. For an additional cost, the Contract provides other features and benefits including death benefits and the ability to receive a lifetime income. You should not purchase a qualified Contract unless you want these other features and benefits, taking into account their cost. See "Fees and Expenses" in this prospectus. We and our affiliates offer other variable products that may offer some of the same investment portfolios. These products have different benefits and charges, and may or may not better match your needs. If you are interested in learning more about these other products, contact our Customer Service Center or you registered representative. CREDITING OF PREMIUM PAYMENTS We will process your initial premium within 2 business days after receipt, if the application and all information necessary for processing the Contract are complete. We will process subsequent premium payments within 1 business day if we receive all information necessary. In certain states we also accept initial and additional premium payments by wire order. Wire transmittals must be accompanied by sufficient electronically transmitted data. We may retain your initial premium payment for up to 5 business days while attempting to complete an incomplete application. If the application cannot be completed within this period, we will inform you of the reasons for the delay. We will also return the premium payment immediately unless you direct us to hold the premium payment until the application is completed. If you choose to have us hold the premium payment, it will be held in a non-interest bearing account. 9 AccessOne - 134794 We will allocate your initial payment according to the instructions you specified. If a subaccount is not available or requested in error, we will make inquiry about a replacement subaccount. If we are unable to reach you or your representative, we will consider the application incomplete. For initial premium payments designated for a subaccount of Separate Account B, we will credit the payment at the accumulation unit value next determined after we receive your premium payment and the completed application. Once the completed application is received, we will allocate the payment to the subaccounts of Separate Account B specified by you within 2 business days. If your premium payment was transmitted by wire order from your broker/dealer, we will follow one of the following two procedures after we receive and accept the wire order and investment instructions. The procedure we follow depends on state availability and the procedures of your broker/dealer. 1) If either your state or broker/dealer do not permit us to issue a Contract without an application, we reserve the right to rescind the Contract if we do not receive and accept a properly completed application or enrollment form within 5 days of the premium payment. If we do not receive the application or form within 5 days of the premium payment, we will refund the contract value plus any charges we deducted, and the Contract will be voided. Some states require that we return the premium paid. 2) If your state and broker/dealer allow us to issue a Contract without an application, we will issue and mail the Contract to you or your representative, together with a Contract Acknowledgement and Delivery Statement for your execution. Until our Customer Service Center receives the executed Contract Acknowledgement and Delivery Statement, neither you nor the broker/dealer may execute any financial transactions on your Contract unless they are requested in writing by you. We may require additional information before complying with your request (e.g., signature guarantee). We will ask about any missing information related to subsequent payments. We will allocate the subsequent payment(s) pro-rata according to the current variable subaccount allocation unless you specify otherwise. Any fixed allocation(s) will not be considered in the pro-rata calculations. If a subaccount is no longer available or requested in error, we will allocate the subsequent payment(s) proportionally among the other subaccount(s) in your current allocation or your allocation instructions. For any subsequent premium payments, we will credit the payment designated for a subaccount of Separate Account B at the accumulation unit value next determined after receipt of your premium payment and instructions. Once we allocate your premium payment to the subaccounts selected by you, we convert the premium payment into accumulation units. We divide the amount of the premium payment allocated to a particular subaccount by the value of an accumulation unit for the subaccount to determine the number of accumulation units of the subaccount to be held in Separate Account B with respect to your Contract. The net investment results of each subaccount vary with its investment performance. In some states, we may require that an initial premium designated for a subaccount of Separate Account B or the Fixed Account be allocated to a subaccount specially designated by the Company (currently, the Liquid Asset subaccount) during the free look period. After the free look period, we will convert your contract value (your initial premium plus any earnings less any expenses) into accumulation units of the subaccounts you previously selected. The accumulation units will be allocated based on the accumulation unit value next computed for each subaccount. Initial premiums designated for Fixed Interest Allocations will be allocated to a Fixed Interest Allocation with the guaranteed interest period you have chosen; however, in the future we may allocate the premiums to the specially designated subaccount during the free look period. We may also refuse to accept certain forms of premium payments or loan repayments, if applicable, (traveler's checks, for example) or restrict the amount of certain forms of premium payments or loan repayments (money orders totaling more than $500, for example). In addition, we may require information as to why a particular form of payment was used (third party checks, for example) and the source of the funds of such payment in order to determine whether or not we will accept it. Use of an unacceptable form of payment may result in us returning your premium payment and not issuing the contract. 10 AccessOne - 134794 ADMINISTRATIVE PROCEDURES We may accept a request for Contract service in writing, by telephone, or other approved electronic means, subject to our administrative procedures, which vary depending on the type of service requested and may include proper completion of certain forms, providing appropriate identifying information, and/or other administrative requirements. We will process your request at the accumulation value next determined only after you have met all administrative requirements. Please be advised that with regard to withdrawal requests, the risk of a fraudulent transaction is increased by the use of a facsimile withdrawal request form, even if appropriate identifying information is provided. CONTRACT VALUE We determine your contract value on a daily basis beginning on the contract date. Your contract value is the sum of (a) the contract value in the Fixed Interest Allocations, and (b) the contract value in each subaccount in which you are invested. CONTRACT VALUE IN FIXED INTEREST ALLOCATIONS. The contract value in your Fixed Interest Allocation is the sum of premium payments allocated to the Fixed Interest Allocation under the Contract, plus contract value transferred to the Fixed Interest Allocation, plus credited interest, minus any transfers and withdrawals from the Fixed Interest Allocation (including any Market Value Adjustment applied to such withdrawal), contract fees (including, in some cases, fees for optional benefit riders) and premium taxes. CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the contract value in the subaccount in which you are invested is equal to the initial premium paid and designated to be allocated to the subaccount. On the contract date, we allocate your contract value to each subaccount and/or a Fixed Interest Allocation specified by you, unless the Contract is issued in a state that requires the return of premium payments during the free look period, in which case, the portion of your initial premium not allocated to a Fixed Interest Allocation may be allocated to a subaccount specially designated by the Company during the free look period for this purpose (currently, the Liquid Asset subaccount). On each business day after the contract date, we calculate the amount of contract value in each subaccount as follows: (1) We take the contract value in the subaccount at the end of the preceding business day. (2) We multiply (1) by the subaccount's Net Rate of Return since the preceding business day. (3) We add (1) and (2). (4) We add to (3) any additional premium payments, and then add or subtract any transfers to or from that subaccount. (5) We subtract from (4) any withdrawals, and any related charges, and then subtract any contract fees (including any rider charges) and premium taxes. CASH SURRENDER VALUE The cash surrender value is the amount you receive when you surrender the Contract. The cash surrender value will fluctuate daily based on the investment results of the subaccounts in which you are invested and interest credited to Fixed Interest Allocations and any Market Value Adjustment. See Appendix C and the Fixed Account I prospectus for a description of the calculation of values under any Fixed Interest Allocation. We do not guarantee any minimum cash surrender value. On any date during the accumulation phase, we calculate the cash surrender value as follows: we start with your contract value, then we adjust for any Market Value Adjustment, then we deduct any charge for premium taxes, and any other charges incurred but not yet deducted. 11 AccessOne - 134794 SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE You may surrender the Contract at any time while the annuitant is living and before the annuity start date. A surrender is effective on the date we receive your written request and the Contract at our Customer Service Center. After we receive all paperwork required for us to process your surrender, we will determine and pay the cash surrender value at the price next determined. Once paid, all benefits under the Contract will terminate. For administrative purposes, we will transfer your money to a specially designated subaccount (currently the Liquid Assets subaccount) prior to processing the surrender. This transfer will have no effect on your cash surrender value. You may receive the cash surrender value in a single sum payment or apply it under one or more annuity options. We will usually pay the cash surrender value within 7 days. Surrendering the Contract may have tax consequences. See "Federal Tax Considerations." Consult your tax adviser regarding the tax consequences associated with surrendering your Contract. A surrender made before you reach age 59 1/2 may result in a 10% tax penalty. See "Federal Tax Considerations" for more details. THE SUBACCOUNTS Each of the subaccounts of Separate Account B offered under this prospectus invests in an investment portfolio with its own distinct investment objectives and policies. Each subaccount of Separate Account B invests in a corresponding portfolio of a Trust or Fund. ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHANGES We may make additional subaccounts available to you under the Contract. These subaccounts will invest in investment portfolios we find suitable for your Contract. We may also withdraw or substitute investment portfolios, subject to the conditions in your Contract and compliance with regulatory requirements. We may amend the Contract to conform to applicable laws or governmental regulations. If we feel that investment in any of the investment portfolios has become inappropriate to the purposes of the Contract, we may, with approval of the SEC (and any other regulatory agency, if required) substitute another portfolio for existing and future investments. If you elected the dollar cost averaging, systematic withdrawals, or automatic rebalancing programs or if you have other outstanding instructions, and we substitute or otherwise eliminate a portfolio subject to those instructions, we will execute your instructions using the substituted or proposed replacement portfolio, unless you request otherwise. The substitute or proposed replacement portfolio may have higher fees and charges than any portfolio it replaces. We also reserve the right to: (i) deregister Separate Account B under the 1940 Act; (ii) operate Separate Account B as a management company under the 1940 Act if it is operating as a unit investment trust; (iii) operate Separate Account B as a unit investment trust under the 1940 Act if it is operating as a managed separate account; (iv) restrict or eliminate any voting rights as to Separate Account B; and (v) combine Separate Account B with other accounts. We will provide you with written notice before we make any of these changes. THE FIXED ACCOUNT The Fixed Account is a segregated asset account which contains the assets that support a contract owner's Fixed Interest Allocations. See Appendix C and the Fixed Account I prospectus for more information. OTHER CONTRACTS We and our affiliates offer various other products with different features and terms than the Contracts, and that may offer some or all of the same investment portfolios. These products have different benefits, fees and charges, and may or may not better match your needs. Please note that some of the Company's management personnel and certain other employees may receive a portion of their employment compensation based on the amount of Contract values allocated to investment portfolios of Trusts or Funds affiliated with ING. You should be aware that there are alternative options available, and, if you are interested in learning more about these other products, contact our Customer Service Center or your registered representative. 12 AccessOne - 134794 - -------------------------------------------------------------------------------- WITHDRAWALS - -------------------------------------------------------------------------------- Any time during the accumulation phase and before the death of the owner, you may withdraw all or part of your money. Keep in mind that if you request a withdrawal for more than 90% of the cash surrender value, and the remaining cash surrender value after the withdrawal is less than $2,500, we will treat it as a request to surrender the Contract. You need to submit to us a written request specifying the Fixed Interest Allocations or subaccounts from which to withdraw amounts, otherwise we will make the withdrawal on a pro-rata basis from all of the subaccounts in which you are invested. If there is not enough contract value in the subaccounts, we will deduct the balance of the withdrawal from your Fixed Interest Allocations starting with the guaranteed interest periods nearest their maturity dates until we have honored your request. We will apply a Market Value Adjustment to any withdrawal from your Fixed Interest Allocation taken more than 30 days before its maturity date. Definitive guidance on the proper federal tax treatment of the Market Value Adjustment has not been issued. You may want to discuss the potential tax consequences of a Market Value Adjustment with your tax adviser. We will determine the contract value as of the close of business on the day we receive your withdrawal request at our Customer Service Center. The contract value may be more or less than the premium payments made. For administrative purposes, we will transfer your money to a specially designated subaccount (currently, the Liquid Asset subaccount) prior to processing the withdrawal. This transfer will not affect the withdrawal amount you receive. CONSULT YOUR TAX ADVISER REGARDING THE TAX CONSEQUENCES ASSOCIATED WITH TAKING WITHDRAWALS. You are responsible for determining that withdrawals comply with applicable law. A withdrawal made before the taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See "Federal Tax Considerations" for more details. We offer the following three withdrawal options: REGULAR WITHDRAWALS After the free look period, you may make regular withdrawals. Each withdrawal must be a minimum of $100. We will apply a Market Value Adjustment to any regular withdrawal you take from a Fixed Interest Allocation that is taken more than 30 days before its maturity date. See Appendix C and the Fixed Account I prospectus for more information on the application of Market Value Adjustment. SYSTEMATIC WITHDRAWALS You may choose to receive automatic systematic withdrawal payments (1) from the contract value in the subaccounts in which you are invested, or (2) from the interest earned in your Fixed Interest Allocations. You may not elect the systematic withdrawal option if you are taking IRA withdrawals. Systematic withdrawals may be taken monthly, quarterly or annually. You decide when you would like systematic payments to start as long as it is at least 28 days after your contract date. You also select the date on which the systematic withdrawals will be made, but this date cannot be later than the 28th day of the month. If you have elected to receive systematic withdrawals but have not chosen a date, we will make the withdrawals on the same calendar day of each month as your contract date. If your contract date is after the 28th day of the month, your systematic withdrawal will be made on the first day of each month. Each systematic withdrawal amount must be a minimum of $100. The amount of your systematic withdrawal can either be (1) a fixed dollar amount, or (2) an amount based on a percentage of your contract value. Both forms of systematic withdrawals are subject to the following maximum, which is calculated on each withdrawal date: 13 AccessOne - 134794 -------------------------------------------------------- MAXIMUM PERCENTAGE FREQUENCY OF CONTRACT VALUE -------------------------------------------------------- Monthly 1.25% Quarterly 3.75% Annually 15.00% -------------------------------------------------------- If your systematic withdrawal is a fixed dollar amount and the amount to be withdrawn would exceed the applicable maximum percentage of your contract value on any withdrawal date, we will automatically reduce the amount withdrawn so that it equals such percentage. Thus, your fixed dollar systematic withdrawals will never exceed the maximum percentage. If you want fixed dollar systematic withdrawals to exceed the maximum percentage, consider the Fixed Dollar Systematic Withdrawal Feature which you may add to your regular fixed dollar systematic withdrawal program. If your systematic withdrawal is based on a percentage of your contract value and the amount to be withdrawn based on that percentage would be less than $100, we will automatically increase the amount to $100 as long as it does not exceed the maximum percentage. If the systematic withdrawal would exceed the maximum percentage, we will send the amount, and then automatically cancel your systematic withdrawal option. We limit systematic withdrawals from Fixed Interest Allocations to interest earnings during the prior month, quarter, or year, depending on the frequency you chose. Systematic withdrawals are not subject to a Market Value Adjustment, unless you have added the Fixed Dollar Systematic Withdrawal Feature discussed below and the payments exceed interest earnings. Systematic withdrawals from Fixed Interest Allocations under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. A Fixed Interest Allocation may not participate in both the systematic withdrawal option and the dollar cost averaging program at the same time. You may change the amount or percentage of your systematic withdrawal once each contract year or cancel this option at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next scheduled withdrawal date. If you submit a subsequent premium payment after you have applied for systematic withdrawals, we will not adjust future withdrawals under the systematic withdrawal program unless you specifically request that we do so. The systematic withdrawal option may commence in a contract year where a regular withdrawal has been taken but you may not change the amount or percentage of your withdrawals in any contract year during which you have previously taken a regular withdrawal. You may not elect the systematic withdrawal option if you are taking IRA withdrawals. Subject to availability, a spousal or non-spousal beneficiary may elect to receive death benefits as payments over the beneficiary's lifetime ("stretch"). "Stretch" payments will be subject to the same limitations as systematic withdrawals, and non-qualified "stretch" payments will be reported on the same basis as other systematic withdrawals. FIXED DOLLAR SYSTEMATIC WITHDRAWAL FEATURE. You may add the Fixed Dollar Systematic Withdrawal Feature to your regular fixed dollar systematic withdrawal program. This feature allows you to receive a systematic withdrawal in a fixed dollar amount regardless of any Market Value Adjustments. Systematic withdrawals from Fixed Interest Allocations under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. You choose the amount of the fixed systematic withdrawals, which may total up to a maximum of 15% of your contract value as determined on the day we receive your election of this feature. We will not recalculate the maximum limit when you make additional premium payments, unless you instruct us to do so. We will assess a Market Value Adjustment on the withdrawal date if the withdrawal from a Fixed Interest Allocation exceeds your interest earnings on the withdrawal date. We will apply any Market Value Adjustment directly to your contract value (rather than to the withdrawal) so that the amount of each systematic withdrawal remains fixed. 14 AccessOne - 134794 Flat dollar systematic withdrawals which are intended to satisfy the requirements of Section 72(q) or 72(t) of the Internal Revenue Code (the "Code") may exceed the maximum. Such withdrawals are subject to Market Value Adjustments when they exceed the applicable maximum percentage. IRA WITHDRAWALS If you have a non-Roth IRA Contract and will be at least age 70 1/2 during the current calendar year, you may elect to have distributions made to you to satisfy requirements imposed by federal tax law. IRA withdrawals provide payout of amounts required to be distributed by the Internal Revenue Service rules governing mandatory distributions under qualified plans. We will send you a notice before your distributions commence. You may elect to take IRA withdrawals at that time, or at a later date. You may not elect IRA withdrawals and participate in systematic withdrawals at the same time. If you do not elect to take IRA withdrawals, and distributions are required by Federal tax law, distributions adequate to satisfy the requirements imposed by Federal tax law may be made. Thus, if you are participating in systematic withdrawals, distributions under that option must be adequate to satisfy the mandatory distribution rules imposed by federal tax law. You may choose to receive IRA withdrawals on a monthly, quarterly or annual basis. Under this option, you may elect payments to start as early as 28 days after the contract date. You select the day of the month when the withdrawals will be made, but it cannot be later than the 28th day of the month. If no date is selected, we will make the withdrawals on the same calendar day of the month as the contract date. You may request that we calculate for you the amount that is required to be withdrawn from your Contract each year based on the information you give us and various choices you make. For information regarding the calculation and choices you have to make, see the Statement of Additional Information. Or, we will accept your written instructions regarding the calculated amount required to be withdrawn from your Contract each year. The minimum dollar amount you can withdraw is $100. When we determine the required IRA withdrawal amount for a taxable year based on the frequency you select, if that amount is less than $100, we will pay $100. At any time where the IRA withdrawal amount is greater than the contract value, we will cancel the Contract and send you the amount of the cash surrender value. You may change the payment frequency of your IRA withdrawals once each contract year or cancel this option at any time by sending us satisfactory notice to our Customer Service Center at least 7 days before the next scheduled withdrawal date. An IRA withdrawal from a Fixed Interest Allocation in excess of the amount allowed under systematic withdrawals will be subject to a Market Value Adjustment. CONSULT YOUR TAX ADVISER REGARDING THE TAX CONSEQUENCES ASSOCIATED WITH TAKING WITHDRAWALS. You are responsible for determining that withdrawals comply with applicable law. A withdrawal made before the taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See "Federal Tax Considerations" for more details. - -------------------------------------------------------------------------------- TRANSFERS AMONG YOUR INVESTMENTS - -------------------------------------------------------------------------------- Between the end of the free look period and the annuity start date, you may transfer your contract value among the subaccounts in which you are invested and your Fixed Interest Allocations. We currently do not charge you for transfers made during a contract year, but reserve the right to charge $25 for each transfer after the twelfth transfer in a contract year. We also reserve the right to limit the number of transfers you may make and may otherwise modify or terminate transfer privileges if required by our business judgment or in accordance with applicable law. If you submit a subsequent premium payment after you have applied for systematic withdrawals, we will not adjust future withdrawals under the systematic withdrawal program unless you specifically request that we do so. The minimum amount that you may transfer is $100 or, if less, your entire contract value held in a subaccount. 15 AccessOne - 134794 To make a transfer, you must notify our Customer Service Center and all other administrative requirements must be met. We will determine transfer values at the end of the business day in which the transfer request is received at our Customer Service Center. If we receive a transfer request after 4:00 p.m. eastern time or the close of regular trading of the New York Stock Exchange, we will make the transfer on the next business day. Separate Account B and the Company will not be liable for following instructions communicated by telephone or other approved electronic means that we reasonably believe to be genuine. We may require personal identifying information to process a request for transfer made over the telephone, over the internet or other approved electronic means. LIMITS IMPOSED BY UNDERLYING FUNDS. Orders for the purchase of fund shares may be subject to acceptance or rejection by the underlying fund. We reserve the right to reject, without prior notice, any allocation of a premium payment to a subaccount if the subaccount's investment in its corresponding fund is not accepted by the fund for any reason. LIMITS ON FREQUENT OR DISRUPTIVE TRANSFERS. The Contract is not designed to serve as a vehicle for frequent trading. Frequent trading can disrupt management of a fund and raise its expenses through: 1) increased trading and transaction costs; 2) forced and unplanned portfolio turnover; 3) lost opportunity costs; and 4) large asset swings that decrease the fund's ability to provide maximum investment return to all contract owners. This in turn can have an adverse effect on fund performance. Accordingly, individuals or organizations that use market-timing investment strategies and make frequent transfers should not purchase the Contract. We monitor transfer activity. With regard to frequent transfers, in the event that an individual's or organization's transfer activity: 1. exceeds our then-current monitoring standard for frequent trading; 2. is identified as problematic by an underlying fund even if the activity does not exceed our monitoring standard for frequent trading; or 3. if we determine in our sole discretion that such transfer activity may not be in the best interests of other contract owners, we will take the following actions to deter such activity. Upon the first violation, we will send a one time warning letter. A second violation will result in the suspension of trading privileges via facsimile, telephone, email and internet, and limit trading privileges to submission by regular U.S. mail for a period of six months. At the end of that period, trading privileges will be reinstated. If there is another violation after such rights are reinstated, we will suspend such privileges permanently. We will notify you in writing if we take any of these actions. With regard to transfers initiated by a market-timing organization or individual or other party authorized to give transfer instructions on behalf of multiple contract owners, we will also take the following actions, without prior notice: (1) not accepting transfer instructions from an agent acting on behalf of more than one contract owner; and (2) not accepting preauthorized transfer forms from market timers or other entities acting on behalf of more than one contract owner at a time. Our current definition of frequent trading is more than one purchase and sale of the same underlying fund within a 30-day period. We do not count transfers associated with scheduled dollar cost averaging or automatic rebalancing programs, transfers involving funds that affirmatively permit short-term trading in their fund shares, such as the ProFund portfolios, movement between such funds and the Liquid Assets Portfolio, and transfers involving certain de minimis amounts when determining whether trading activity is excessive. We reserve the right to modify our general standard, or the standard as it may apply to a particular fund, at any time without prior notice, depending on, among other factors, the needs of the underlying fund(s), the best interests of contract owners and fund investors and/or state or federal regulatory requirements. If we modify such standard, it will be applied uniformly to all contract owners or, as applicable, to all contract owners investing in the underlying fund. 16 AccessOne - 134794 In addition, if, due to the excessive dollar amounts of trades, even though not within our then current definition of frequent trading, an individual's or organization's transfer activity is determined, in our sole discretion, to be disruptive, we will take the same actions as are described above to limit frequent transfers. The Company does not allow waivers to the above policy. Our excessive trading policy may not be completely successful in preventing market timing or excessive trading activity. WE CURRENTLY REQUIRE THAT ORDERS RECEIVED VIA FACSIMILE TO EFFECT TRANSACTIONS IN SUBACCOUNTS THAT INVEST IN PROFUND PORTFOLIOS BE RECEIVED AT OUR CUSTOMER SERVICE CENTER NO LATER THAN 3 P.M. EASTERN TIME. DOLLAR COST AVERAGING You may elect to participate in our dollar cost averaging program if you have at least $1,200 of contract value in (i) the Liquid Assets subaccount, or (ii) a Fixed Interest Allocation with either a 6-month or a 1-year guaranteed interest period. These subaccounts or Fixed Interest Allocations serve as the source accounts from which we will, on a monthly basis, automatically transfer a set dollar amount of money to other subaccounts selected by you. We also may offer DCA Fixed Interest Allocations, which are 6-month and 1-year Fixed Interest Allocations available exclusively for use with the dollar cost averaging program. The DCA Fixed Interest Allocations require a minimum premium payment of $1,200 directed into a DCA Fixed Interest Allocation. A Fixed Interest Allocation or DCA Fixed Interest Allocation may not participate in the dollar cost averaging program and in systematic withdrawals at the same time. The dollar cost averaging program is designed to lessen the impact of market fluctuation on your investment. Since we transfer the same dollar amount to other subaccounts each month, more units of a subaccount are purchased if the value of its unit is low and fewer units are purchased if the value of its unit is high. Therefore, a lower than average value per unit may be achieved over the long term. However, we cannot guarantee this. When you elect the dollar cost averaging program, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels. Unless you have a DCA Fixed Interest Allocation, you elect the dollar amount you want transferred under this program. Each monthly transfer must be at least $100. If your source account is the Liquid Assets subaccount or a 1-year Fixed Interest Allocation, the maximum amount that can be transferred each month is your contract value in such source account divided by 12. If your source account is a 6-month Fixed Interest Allocation, the maximum amount that can be transferred each month is your contract value in such source account divided by 6. You may change the transfer amount once each contract year. If you have a DCA Fixed Interest Allocation, there is no minimum or maximum transfer amount. We will transfer all your money allocated to that source account into the subaccount(s) in equal payments over the selected 6-month or 1-year period. The last payment will include earnings accrued over the course of the selected period. If you make an additional premium payment into a Fixed Interest Allocation subject to dollar cost averaging, the amount of your transfers under the dollar cost averaging program remains the same, unless you instruct us to increase the transfer amount. Transfers from a Fixed Interest Allocation or a DCA Fixed Interest Allocation under the dollar cost averaging program are not subject to a Market Value Adjustment. However, if you terminate the dollar cost averaging program for a DCA Fixed Interest Allocation and there is money remaining in the DCA Fixed Interest Allocation, we will transfer the remaining money to the Liquid Assets subaccount. Such transfer will trigger a Market Value Adjustment if the transfer is made more than 30 days before the maturity date of the DCA Fixed Interest Allocation. If you do not specify to which subaccounts you want to transfer the dollar amount of the source account, we will transfer the money to the subaccounts in which you are invested on a proportional basis. The transfer date is the same day each month as your contract date. If, on any transfer date, your contract value in a source account is equal or less than the amount you have elected to have transferred, the entire amount will be transferred and the program will end. You may terminate the dollar cost averaging program at any time by sending satisfactory notice to our Customer Service Center at least 7 days before the next transfer date. 17 AccessOne - 134794 We may in the future offer additional subaccounts or withdraw any subaccount or Fixed Interest Allocation to or from the dollar cost averaging program or otherwise modify, suspend or terminate this program. Of course, such change will not affect any dollar cost averaging programs in operation at the time. AUTOMATIC REBALANCING If you have at least $10,000 of contract value invested in the subaccounts of Separate Account B, you may elect to have your investments in the subaccounts automatically rebalanced. We will transfer funds under your Contract on a quarterly, semi-annual, or annual calendar basis among the subaccounts to maintain the investment blend of your selected subaccounts. The minimum size of any allocation must be in full percentage points. Rebalancing does not affect any amounts that you have allocated to the Fixed Account. The program may be used in conjunction with the systematic withdrawal option only if withdrawals are taken pro-rata. Automatic rebalancing is not available if you participate in dollar cost averaging. Automatic rebalancing will not take place during the free look period. Transfers made pursuant to automatic rebalancing do not count toward the 12-transfer limit on free transfers. To participate in automatic rebalancing, send satisfactory notice to our Customer Service Center. We will begin the program on the last business day of the period in which we receive the notice. You may cancel the program at any time. The program will automatically terminate if you choose to reallocate your contract value among the subaccounts or if you make an additional premium payment or partial withdrawal on other than a pro-rata basis. Additional premium payments and partial withdrawals effected on a pro-rata basis will not cause the automatic rebalancing program to terminate. - -------------------------------------------------------------------------------- DEATH BENEFIT - -------------------------------------------------------------------------------- DEATH BENEFIT DURING THE ACCUMULATION PHASE During the accumulation phase, a death benefit is payable when either the annuitant (when contract owner is not an individual), the contract owner or the first of joint owners dies. Assuming you are the contract owner, your beneficiary will receive a death benefit unless the beneficiary is your surviving spouse and elects to continue the Contract. The death benefit value is calculated at the close of the business day on which we receive written notice and due proof of death, as well as any required paperwork, at our Customer Service Center. If your beneficiary elects to delay receipt of the death benefit until a date after the time of death, the amount of benefit payable in the future may be affected. The proceeds may be received in a single sum or applied to any of the annuity options, or, if available, paid over the beneficiary's lifetime. (See "Systematic Withdrawals" above). A beneficiary's right to elect an income phase payment option or receive a lump-sum payment may have been restricted by the contract owner. If so, such rights or options will not be available to the beneficiary. If we do not receive a request to apply the death benefit proceeds to an annuity option, we will make a single sum distribution. Unless you elect otherwise, the distribution will be made into an interest bearing account, backed by our general account that is accessed by the beneficiary through a checkbook feature. The beneficiary may access death benefit proceeds at any time without penalty. We will generally distribute death benefit proceeds within 7 days after our Customer Service Center has received sufficient information to make the payment. We will generally pay death benefit proceeds within 7 days after our Customer Service Center has received sufficient information to make the payment. For information on required distributions under federal income tax laws, you should see "Required Distributions upon Contract Owner's Death." For information on required distributions under federal income tax laws, you should see "Required Distributions upon Contract Owner's Death." The Death Benefit under the Contract is the greatest of (i) your contract value prior to death; (ii) total premium payments reduced by a pro-rata adjustment for any withdrawal; and (iii) the cash surrender value. DEATH BENEFIT DURING THE INCOME PHASE If any contract owner or the annuitant dies after the annuity start date, the Company will pay the beneficiary any certain benefit remaining under the annuity in effect at the time. 18 AccessOne - 134794 CONTINUATION AFTER DEATH -- SPOUSE If at the contract owner's death, the surviving spouse of the deceased contract owner is the beneficiary and such surviving spouse elects to continue the contract as his or her own, the following will apply: If the guaranteed death benefit as of the date we receive due proof of death, minus the contract value on that date is greater than zero, we will add such difference to the contract value. We will allocate such addition to the variable subaccounts in proportion to the contract value in the subaccounts, unless you direct otherwise. If there is no contract value in any subaccount, we will allocate the addition to the Liquid Assets subaccount, or its successor. Such addition to contract value will not affect the guaranteed death benefit or any living benefit rider values. Any addition to contract value is available only to the spouse of the owner as of the date of death of the owner if such spouse under the provisions of the contract elects to continue the contract as his or her own. The death benefits under each of the available options will continue, based on the surviving spouse's age on the date that ownership changes. CONTINUATION AFTER DEATH -- NOT A SPOUSE If the beneficiary or surviving joint owner is not the spouse of the owner, the contract may continue in force subject to the required distribution rules of the Code. See next section, "Required Distributions Upon Contract Owner's Death." If the guaranteed death benefit as of the date we receive due proof of death, minus the contract value also on that date, is greater than zero, we will add such difference to the contract value. Such addition will be allocated to the variable subaccounts in proportion to the contract value in the subaccounts, unless we are directed otherwise. If there is no contract value in any subaccount, the addition will be allocated to the Liquid Assets subaccount, or its successor. The death benefit will then terminate. At subsequent surrender, any surrender charge applicable to premiums paid prior to the date we receive due proof of death of the contract owner will be waived. No additional premium payments may be made. REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH We will not allow any payment of benefits provided under a non-qualified Contract which does not satisfy the requirements of Section 72(s) of the Code. If any contract owner of a non-qualified contract dies before the annuity start date, the death benefit payable to the beneficiary (calculated as described under "Death Benefit Choices" in this prospectus) will be distributed as follows: (a) the death benefit must be completely distributed within 5 years of the contract owner's date of death; or (b) the beneficiary may elect, within the 1-year period after the contract owner's date of death, to receive the death benefit in the form of an annuity from us, provided that (i) such annuity is distributed in substantially equal installments over the life of such beneficiary or over a period not extending beyond the life expectancy of such beneficiary; and (ii) such distributions begin not later than 1 year after the contract owner's date of death. Notwithstanding (a) and (b) above, if the sole contract owner's beneficiary is the deceased owner's surviving spouse, then such spouse may elect to continue the Contract under the same terms as before the contract owner's death. Upon receipt of such election from the spouse at our Customer Service Center: (1) all rights of the spouse as contract owner's beneficiary under the Contract in effect prior to such election will cease; (2) the spouse will become the owner of the Contract and will also be treated as the contingent annuitant, if none has been named and only if the deceased owner was the annuitant; and (3) all rights and privileges granted by the Contract or allowed by ING USA will belong to the spouse as contract owner of the Contract. This election will be deemed to have been made by the spouse if such spouse makes a premium payment to the Contract or fails to make a timely election as described in this paragraph. If the owner's beneficiary is a nonspouse, the distribution provisions described in subparagraphs (a) and (b) above, will apply even if the annuitant and/or contingent annuitant are alive at the time of the contract owner's death. If we do not receive an election from a nonspouse owner's beneficiary within the 1-year period after the contract owner's date of death, then we will pay the death benefit to the owner's beneficiary in a cash payment within five years from date of death. We will determine the death benefit as of the date we receive proof of death. We will make payment of the proceeds on or before the end of the 5-year period starting on the owner's date of death. Such cash payment will be in full settlement of all our liability under the Contract. 19 AccessOne - 134794 If the contract owner dies after the annuity start date, we will continue to distribute any benefit payable at least as rapidly as under the annuity option then in effect. All of the contract owner's rights granted under the Contract or allowed by us will pass to the contract owner's beneficiary. If the Contract has joint owners we will consider the date of death of the first joint owner as the death of the contract owner and the surviving joint owner will become the beneficiary of the Contract. - -------------------------------------------------------------------------------- THE ANNUITY OPTIONS - -------------------------------------------------------------------------------- ANNUITIZATION OF YOUR CONTRACT If the annuitant and contract owner are living on the annuity start date, we will begin making payments to the contract owner under an income plan. We will make these payments under the annuity option you chose. You may change an annuity option by making a written request to us at least 30 days before the annuity start date. The amount of the payments will be determined by applying your contract value, adjusted for any applicable Market Value Adjustment, on the annuity start date in accordance with the annuity option you chose. You may also elect an annuity option on surrender of the Contract for its cash surrender value or you may choose one or more annuity options for the payment of death benefit proceeds while it is in effect and before the annuity start date. If, at the time of the contract owner's death or the annuitant's death (if the contract owner is not an individual), no option has been chosen for paying death benefit proceeds, the beneficiary may choose an annuity option within 60 days. In all events, payments of death benefit proceeds must comply with the distribution requirements of applicable federal tax law. The minimum monthly annuity income payment that we will make is $20. We may require that a single sum payment be made if the contract value is less than $2,000 or if the calculated monthly annuity income payment is less than $20. For each annuity option we will issue a separate written agreement putting the annuity option into effect. Before we pay any annuity benefits, we require the return of your Contract. If your Contract has been lost, we will require that you complete and return the applicable lost Contract form. Various factors will affect the level of annuity benefits, such as the annuity option chosen, the applicable payment rate used and the investment performance of the portfolios and interest credited to the Fixed Interest Allocations. Our current annuity options provide only for fixed payments. Fixed annuity payments are regular payments, the amount of which is fixed and guaranteed by us. Some fixed annuity options provide fixed payments either for a specified period of time or for the life of the annuitant. The amount of life income payments will depend on the form and duration of payments you chose, the age of the annuitant or beneficiary (and gender, where appropriate) under applicable law, the total contract value applied to periodic income payments, and the applicable payment rate. Our approval is needed for any option where: (1) The person named to receive payment is other than the contract owner or beneficiary; (2) The person named is not a natural person, such as a corporation; or (3) Any income payment would be less than the minimum annuity income payment allowed. 20 AccessOne - 134794 SELECTING THE ANNUITY START DATE You select the annuity start date, which is the date on which the annuity payments commence. Unless we consent, the annuity start date must be at least 5 years from the contract date but before the month immediately following the annuitant's 90th birthday, or 10 years from the contract date, if later. If you do not select an annuity start date, it will automatically begin in the month following the annuitant's 90th birthday, or 10 years from the contract date, if later. If the annuity start date occurs when the annuitant is at an advanced age, such as over age 85, it is possible that the Contract will not be considered an annuity for federal tax purposes. For more information, see "Federal Tax Considerations" and the Statement of Additional Information. For a Contract purchased in connection with a qualified plan, other than a Roth IRA, distributions must commence not later than April 1st of the calendar year following the calendar year in which you reach age 70 1/2 (or, in some cases, retire). Distributions may be made through annuitization or withdrawals. You should consult a tax adviser for tax advice before investing. FREQUENCY OF ANNUITY PAYMENTS You choose the frequency of the annuity payments. They may be monthly, quarterly, semi-annually or annually. If we do not receive written notice from you, we will make the payments monthly. There may be certain restrictions on minimum payments that we will allow. BENEFICIARY RIGHTS A beneficiary's right to elect an annuity option or receive a lump sum may have been restricted by the contract owner. If so, such options will not be available to the beneficiary. THE ANNUITY OPTIONS We offer the 4 annuity options shown below. Payments under Options 1, 2 and 3 are fixed. Payments under Option 4 may be fixed or variable, although only fixed payments are currently available. For a fixed annuity option, the contract value in the subaccounts is transferred to the Company's general account. OPTION 1. INCOME FOR A FIXED PERIOD. Under this option, we make monthly payments in equal installments for a fixed number of years based on the contract value on the annuity start date. We guarantee that each monthly payment will be at least the amount stated in your Contract. If you prefer, you may request that payments be made in annual, semi-annual or quarterly installments. We will provide you with illustrations if you ask for them. If the cash surrender value or contract value is applied under this option, a 10% penalty tax may apply to the taxable portion of each income payment until the contract owner reaches age 59 1/2. OPTION 2. INCOME FOR LIFE WITH A PERIOD CERTAIN. Under this option, we make payments for the life of the annuitant in equal monthly installments and guarantee the income for at least a period certain such as 10 or 20 years. Other periods certain may be available to you on request. You may choose a refund period instead. Under this arrangement, income is guaranteed until payments equal the amount applied. If the person named lives beyond the guaranteed period, we will continue payments until his or her death. We guarantee that each payment will be at least the amount specified in the Contract corresponding to the person's age on his or her last birthday before the annuity start date. Amounts for ages not shown in the Contract are available if you ask for them. OPTION 3. JOINT LIFE INCOME. This option is available when there are 2 persons named to determine annuity payments. At least one of the persons named must be either the contract owner or beneficiary of the Contract. We guarantee monthly payments will be made as long as at least one of the named persons is living. There is no minimum number of payments. Monthly payment amounts are available if you ask for them. OPTION 4. ANNUITY PLAN. Under this option, your contract value can be applied to any other annuitization plan that we choose to offer on the annuity start date. Annuity payments under Option 4 may be fixed or variable. If variable and subject to the Investment Company Act of 1940, it will comply with the requirements of such Act. 21 AccessOne - 134794 PAYMENT WHEN NAMED PERSON DIES When the person named to receive payment dies, we will pay any amounts still due as provided in the annuity agreement between you and ING USA. The amounts we will pay are determined as follows: (1) For Option 1, or any remaining guaranteed payments under Option 2, we will continue payments. Under Options 1 and 2, the discounted values of the remaining guaranteed payments may be paid in a single sum. This means we deduct the amount of the interest each remaining guaranteed payment would have earned had it not been paid out early. We will base the discount interest rate on the interest rate used to calculate the payments for Options 1 and 2. (2) For Option 3, no amounts are payable after both named persons have died. (3) For Option 4, the annuity option agreement will state the amount we will pay, if any. - -------------------------------------------------------------------------------- OTHER CONTRACT PROVISIONS - -------------------------------------------------------------------------------- REPORTS TO CONTRACT OWNERS We will send you a quarterly report within 31 days after the end of each calendar quarter. The report will show the contract value, cash surrender value, and the death benefit as of the end of the calendar quarter. The report will also show the allocation of your contract value and reflects the amounts deducted from or added to the contract value since the last report. You have 30 days to notify our Customer Service Center of any errors or discrepancies contained in the report or in any confirmation notices. We will also send you copies of any shareholder reports of the investment portfolios in which Separate Account B invests, as well as any other reports, notices or documents we are required by law to furnish to you. SUSPENSION OF PAYMENTS The Company reserves the right to suspend or postpone the date of any payment or determination of values on any business day (1) when the New York Stock Exchange is closed; (2) when trading on the New York Stock Exchange is restricted; (3) when an emergency exists as determined by the SEC so that the sale of securities held in Separate Account B may not reasonably occur or so that the Company may not reasonably determine the value of Separate Account B's net assets; or (4) during any other period when the SEC so permits for the protection of security holders. We have the right to delay payment of amounts from a Fixed Interest Allocation for up to 6 months. IN CASE OF ERRORS IN YOUR APPLICATION If an age or gender given in the application or enrollment form is misstated, the amounts payable or benefits provided by the Contract shall be those that the premium payment would have bought at the correct age or gender. ASSIGNING THE CONTRACT AS COLLATERAL You may assign a non-qualified Contract as collateral security for a loan but understand that your rights and any beneficiary's rights may be subject to the terms of the assignment. An assignment likely has federal tax consequences. You should consult a tax adviser for tax advice. You must give us satisfactory written notice at our Customer Service Center in order to make or release an assignment. We are not responsible for the validity of any assignment. CONTRACT CHANGES APPLICABLE TAX LAW We have the right to make changes in the Contract to continue to qualify the Contract as an annuity under applicable federal tax law. You will be given advance notice of such changes. 22 AccessOne - 134794 FREE LOOK You may cancel your Contract within your 10-day free look period. We deem the free look period to expire 15 days after we mail the Contract to you. Some states may require a longer free look period. To cancel, you need to send your Contract to our Customer Service Center or to the agent from whom you purchased it. We will refund the contract value. For purposes of the refund during the free look period, (i) we adjust your contract value for any market value adjustment (if you have invested in the Fixed Account), and (ii) then we include a refund of any charges deducted from your contract value. Because of the market risks associated with investing in the portfolios and the potential positive or negative effect of the market value adjustment, the contract value returned may be greater or less than the premium payment you paid. Some states require us to return to you the amount of the paid premium (rather than the contract value) in which case you will not be subject to investment risk during the free look period. In these states, your premiums designated for investment in the subaccounts may be allocated during the free look period to a subaccount specially designated by the Company for this purpose (currently, the Liquid Asset subaccount). We may, in our discretion, require that premiums designated for investment in the subaccounts from all other states as well as premiums designated for a Fixed Interest Allocation be allocated to the specially designated subaccount during the free look period. Your Contract is void as of the day we receive your Contract and cancellation request. We determine your contract value at the close of business on the day we receive your written request. If you keep your Contract after the free look period and the investment is allocated to a subaccount specially designated by the Company, we will put your money in the subaccount(s) chosen by you, based on the accumulation unit value next computed for each subaccount, and/or in the Fixed Interest Allocation chosen by you. SPECIAL ARRANGEMENTS We may reduce or waive any Contract, rider, or benefit fees or charges for certain group or sponsored arrangements, under special programs, and for certain employees, agents, and related persons of our parent corporation and its affiliates. We reduce or waive these items based on expected economies, and the variations are based on differences in costs or services. SELLING THE CONTRACT Our affiliate, Directed Services, Inc. ("DSI"), 1475 Dunwoody Drive, West Chester, PA 19380 is the principal underwriter and distributor of the Contract as well as for other ING USA contracts. DSI, a New York corporation, is registered with the SEC as a broker/dealer under the Securities Exchange Act of 1934, and is a member of the National Association of Securities Dealers, Inc. ("NASD"). DSI does not retain any commissions or compensation paid to it by ING USA for Contract sales. DSI enters into selling agreements with affiliated and unaffiliated broker/dealers to sell the Contracts through their registered representatives who are licensed to sell securities and variable insurance products ("selling firms"). Selling firms are also registered with the SEC and are NASD member firms. DSI pays selling firms compensation for the promotion and sale of the Contracts. Registered representatives of the selling firms who solicit sales of the Contracts typically receive a portion of the compensation paid by DSI to the selling firm in the form of commissions or other compensation, depending on the agreement between the selling firm and the registered representative. This compensation, as well as other incentives or payments, is not paid directly by contract owners or the Separate Account. We intend to recoup this compensation and other sales expenses paid to selling firms through fees and charges imposed under the Contracts. DSI pays selling firms for Contract sales according to one or more schedules. This compensation is generally based on a percentage of premium payments. However, because this Contract is available only in connection with a non-discretionary asset-based fee brokerage account, compensation is based on Contract value only. Selling firms may receive ongoing annual compensation of up to 0.10% of all, or a portion, of values of Contracts sold through the firm. Individual representatives may receive all or a portion of compensation paid to their selling firm, depending on their firm's practices. To the extent permitted by SEC and NASD rules and other applicable laws and regulations, DSI may pay or allow other promotional incentives or payments in the form of cash or other compensation to selling firms. DSI may also enter into special compensation arrangements with certain selling firms based on those firms' aggregate or anticipated sales of the Contracts or other criteria. These special compensation arrangements will not be offered to all selling firms, and the terms of such arrangements may differ among selling firms based on various factors. Any such compensation payable to a selling firm will not result in any additional direct charge to you by us. 23 AccessOne - 134794 In addition to the direct cash compensation for sales of contracts described above, DSI may also pay selling firms additional compensation or reimbursement for their efforts in selling Contracts to you and other customers, including for, among other things, training of sales personnel, marketing or other sales-related services they provide to us or our affiliates. This compensation or reimbursement is not reflected in the fees and expenses listed in the Fund Expense Table in this prospectus and may take the form of: o Marketing allowances; o Education and training allowances to facilitate our attendance at certain educational and training meetings to provide information and training about our products, including holding training programs at our expense; o Sponsorship payments to support attendance at meetings by registered representatives who sell our products; o Reimbursement for the cost of attendance by registered representatives at conventions that we sponsor. The following is a list of the top 25 selling firms that, during 2004, received the largest dollar amounts, in the aggregate, from DSI in connection with the sale of annuity contracts, ranked by total dollars received: 1. UBS Financial Services Inc 14. Financial Network Investment Corp 2. Morgan Stanley Dean Witter 15, McDonald & Company 3. Linsco Private Ledger 16. RBC Dain Rauscher 4, Merrill Lynch 17. Mutual Service Corporation 5. Citigroup Global Markets 18. First Financial Planners, Inc 6. Wachovia Securities 19. Securities America 7. ING Financial Partners 20. Investors Capital 8. Planning Corporation of America 21. Wells Fargo Investments, LLC 9. National Planning Corporation 22. Waterstone Financial 10. PrimeVest 23. Commonwealth Financial Network 11. A.G. Edwards 24. Quick & Reilly, Inc. 12. ING Financial Advisers, LLC 25. NFP Securities Inc 13. Multi-Financial Securities Corp DSI may also compensate wholesalers/distributors, and their sales management personnel, for Contract sales within the wholesale/distribution channel. This compensation may be based on a percentage of premium payments and/or a percentage of Contract values. Affiliated selling firms may include Bancnorth Investment Group, Inc. Baring Investment Services, Inc., Financial Network Investment Corporation, Guaranty Brokerage Services, Inc., ING America Equities, Inc., ING DIRECT Securities, Inc., ING Financial Advisers LLC, ING Financial Markets, LLC., ING Financial Partners, Inc., ING Funds Distributor, LLC, ING Investment Management Services, LLC, Multi-Financial Securities Corporation, PrimeVest Financial Services, Inc. and Systematized Benefits Administrators, Inc. We do not pay any additional compensation on the sale or exercise of any of the Contract's optional benefit riders offered in this prospectus. This is a general discussion of the types and levels of compensation paid by us for sales of annuity contracts. It is important for you to know that the payment of volume-based compensation to a selling firm or registered representative may provide that registered representative a financial incentive to promote our contracts over those of another company. 24 AccessOne - 134794 - -------------------------------------------------------------------------------- OTHER INFORMATION - -------------------------------------------------------------------------------- VOTING RIGHTS We will vote the shares of a Trust owned by Separate Account B according to your instructions. However, if the Investment Company Act of 1940 or any related regulations should change, or if interpretations of it or related regulations should change, and we decide that we are permitted to vote the shares of a Trust in our own right, we may decide to do so. We determine the number of shares that you have in a subaccount by dividing the Contract's contract value in that subaccount by the net asset value of one share of the portfolio in which a subaccount invests. We count fractional votes. We will determine the number of shares you can instruct us to vote 180 days or less before a Trust shareholder meeting. We will ask you for voting instructions by mail at least 10 days before the meeting. If we do not receive your instructions in time, we will vote the shares in the same proportion as the instructions received from all contracts in that subaccount. We will also vote shares we hold in Separate Account B which are not attributable to contract owners in the same proportion. STATE REGULATION We are regulated by the Insurance Department of the State of Iowa. We are also subject to the insurance laws and regulations of all jurisdictions where we do business. The Contract offered by this prospectus has been approved where required by those jurisdictions. We are required to submit annual statements of our operations, including financial statements, to the Insurance Departments of the various jurisdictions in which we do business to determine solvency and compliance with state insurance laws and regulations. LEGAL PROCEEDINGS We are not aware of any pending legal proceedings which involve Separate Account B as a party. We are, or may be in the future, a defendant in various legal proceedings in connection with the normal conduct of our insurance operations. Some of these cases may seek class action status and may include a demand for punitive damages as well as for compensatory damages. In the opinion of management, the ultimate resolution of any existing legal proceeding is not likely to have a material adverse effect on our ability to meet our obligations under the contract. Directed Services, Inc., the principal underwriter and distributor of the contract, is not involved in any legal proceeding which, in the opinion of management, is likely to have a material adverse effect on its ability to distribute the contract. INDUSTRY DEVELOPMENTS - TRADING As with many financial services companies, the Company and affiliates of the Company have received requests for information from various governmental and self-regulatory agencies in connection with investigations related to trading in investment company shares. In each case, full cooperation and responses are being provided. The Company is also reviewing its policies and procedures in this area. EXPERTS The audited consolidated financial statements and schedules of the Company as of December 31, 2004 and 2003 and for each of the three years in the period ended December 31, 2004, and the statement of assets and liabilities of Separate Account B as of December 31, 2004 and the related statement of operations for the year then ended, and the statements of changes in net assets for each of the two years in the period then ended, included in the SAI and Registration Statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports thereon included in the SAI and in the Registration Statement, and are included in reliance on such reports given on the authority of such firm as experts in accounting and auditing. 25 AccessOne - 134794 - -------------------------------------------------------------------------------- FEDERAL TAX CONSIDERATIONS - -------------------------------------------------------------------------------- INTRODUCTION This section discusses our understanding of current federal income tax laws affecting the contract. You should keep the following in mind when reading it: o Your tax position (or the tax position of the designated beneficiary, as applicable) determines federal taxation of amounts held or paid out under the contract; o Tax laws change. It is possible that a change in the future could affect contracts issued in the past; o This section addresses federal income tax rules and does not discuss federal estate and gift tax implications, state and local taxes, foreign taxes or any other tax provisions; and o We do not make any guarantee about the tax treatment of the contract or transactions involving the contract. We do not intend this information to be tax advice. For advice about the effect of federal income taxes or any other taxes on amounts held or paid out under the contract, consult a tax adviser. For more comprehensive information, contact the Internal Revenue Service (IRS). TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED The Contract may be purchased on a non-tax-qualified basis or purchased on a tax-qualified basis. Non-qualified contracts are purchased with after tax contributions and are not related to retirement plans that receive special income tax treatment under the Code. Qualified Contracts are designed for use by individuals whose premium payments are comprised solely of proceeds from and/or contributions under retirement plans that are intended to qualify as plans entitled to special income tax treatment under Sections 401(a), 403(a), 403(b), 408, 408A or 457 of the Code. The ultimate effect of federal income taxes on the amounts held under a Contract, or annuity payments, depends on the type of retirement plan, on the tax and employment status of the individual concerned, and on your tax status. In addition, certain requirements must be satisfied in purchasing a qualified Contract with proceeds from a tax-qualified plan in order to continue receiving favorable tax treatment. Some retirement plans are subject to additional distribution and other requirements that are not incorporated into our Contract. Because the Plan is not part of the Contract, we are not bound by any Plan's terms or conditions. Contract owners, participants and beneficiaries are responsible for determining that contributions, distributions and other transactions with respect to the Contract comply with applicable law. Therefore, you should seek competent legal and tax advice regarding the suitability of a Contract for your particular situation. The following discussion assumes that qualified Contracts are purchased with proceeds from and/or contributions under retirement plans that qualify for the intended special federal income tax treatment. TAXATION OF NON-QUALIFIED CONTRACTS TAXATION PRIOR TO DISTRIBUTION We believe that if you are a natural person you will generally not be taxed on increases in the value of a non-qualified Contract until a distribution occurs or until annuity payments begin. This assumes that the Contract will qualify as an annuity contract for federal income tax purposes. For these purposes, the agreement to assign or pledge any portion of the contract value generally will be treated as a distribution. In order to receive deferral of taxation, the following requirements must be satisfied: DIVERSIFICATION. Internal Revenue Code Section 817(h) requires investments of a variable account be adequately diversified in order for a contract to be treated as an annuity contract for federal income tax purposes. The Treasury has issued regulations which set the standards for measuring the adequacy of any diversification. To be adequately diversified, each variable investment option must meet certain tests. Each sub-account's corresponding fund has represented that it will meet the diversification standards that apply to your policy. We therefore believe that Separate Account B, through the subaccounts, will satisfy these diversification requirements. 26 AccessOne - 134794 INVESTOR CONTROL. Although earnings under non-qualified contracts are generally not taxed until withdrawn, the Internal Revenue Service (IRS) has stated in published rulings that a variable contract owner will be considered the owner of separate account assets if the contract owner possesses incidents of investment control over the assets. In these circumstances, income and gains from the separate account assets would be currently includible in the variable contract owner's gross income. Future guidance regarding the extent to which owners could direct their investments among subaccounts without being treated as owners of the underlying assets of the separate account may adversely affect the tax treatment of existing contracts. The Company therefore reserves the right to modify the contract as necessary to attempt to prevent the contract holder from being considered the federal tax owner of a pro rata share of the assets of the separate account. REQUIRED DISTRIBUTIONS. In order to be treated as an annuity contract for federal income tax purposes, the Code requires any non-qualified Contract to contain certain provisions specifying how your interest in the Contract will be distributed in the event of your death. The non-qualified Contracts contain provisions that are intended to comply with these Code requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such distribution provisions and modify them if necessary to assure that they comply with the applicable requirements when such requirements are clarified by regulation or otherwise. See "Death Benefit Choices" for additional information on required distributions from non-qualified contracts. NON-NATURAL PERSONS. The owner of any annuity contract who is not a natural person generally must include in income any increase in the excess of the contract value over the "investment in the contract" (generally, the premiums or other consideration you paid for the contract less any nontaxable withdrawals) during the taxable year. There are some exceptions to this rule and a prospective contract owner that is not a natural person may wish to discuss these with a tax adviser. DELAYED ANNUITY STARTING DATE. If the Contract's annuity starting date occurs (or is scheduled to occur) at a time when the annuitant has reached an advanced age (e.g., age 85), it is possible that the Contract would not be treated as an annuity for federal income tax purposes. In that event, the income and gains under the Contract could be currently includible in your income. TAXATION OF DISTRIBUTIONS GENERAL. When a withdrawal from a non-qualified Contract occurs, the amount received will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the contract value (unreduced by the amount of any surrender charge) immediately before the distribution over the contract owner's investment in the contract at that time. Investment in the contract is generally equal to the amount of all contributions to the contract, plus amounts previously included in your gross income as the result of certain loans, assignments or gifts, less the aggregate amount of non-taxable distributions previously made. The contract value that applies for this purpose is unclear in some respects. For example, the market value adjustment could increase the contract value that applies. Thus, the income on the Contracts could be higher than the amount of income that would be determined without regard to such benefits. As a result, you could have higher amounts of income than will be reported to you. In the case of a surrender under a non-qualified Contract, the amount received generally will be taxable only to the extent it exceeds the contract owner's cost basis in the contract. 10% PENALTY TAX. A distribution from a non-qualified Contract may be subject to a federal tax penalty equal to 10% of the amount treated as income. In general, however, there is no penalty on distributions: o made on or after the taxpayer reaches age 59 1/2; 27 AccessOne - 134794 o made on or after the death of a contract owner; o attributable to the taxpayer's becoming disabled; or o made as part of a series of substantially equal periodic payments for the life (or life expectancy) of the taxpayer. Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. A tax adviser should be consulted with regard to exceptions from the penalty tax. TAX-FREE EXCHANGES. Section 1035 of the Tax Code permits the exchange of a life insurance, endowment or annuity contract for an annuity contract on a tax-free basis. In such instance, the "investment in the contract" in the old contract will carry over to the new contract. You should consult with your tax advisor regarding procedures for making Section 1035 exchanges. If your Contract is purchased through a tax-free exchange of a life insurance, endowment or annuity contract that was purchased prior to August 14, 1982, then any distributions other than annuity payments will be treated, for tax purposes, as coming: o First, from any remaining "investment in the contract" made prior to August 14, 1982 and exchanged into the Contract; o Next, from any "income on the contract" attributable to the investment made prior to August 14, 1982; o Then, from any remaining "income on the contract"; and o Lastly, from any remaining "investment in the contract". The IRS has concluded that in certain instances, the partial exchange of a portion of one annuity contract for another contract will be tax-free. However, the IRS has reserved the right to treat transactions it considers abusive as ineligible for favorable partial 1035 tax-free exchange treatment. It is not certain whether the IRS would treat an immediate withdrawal or annuitization after a partial exchange as abusive. In addition, it is unclear how the IRS will treat a partial exchange from a life insurance, endowment, or annuity contract directly into an immediate annuity. Currently, we will accept a partial 1035 exchange from a non-qualified annuity into a deferred annuity or an immediate annuity as a tax-free transaction unless we believe that we would be expected to treat the transaction as abusive. We are not responsible for the manner in which any other insurance company, for tax reporting purposes, or the IRS, with respect to the ultimate tax treatment, recognizes or reports a partial exchange. We strongly advise you to discuss any proposed 1035 exchange with your tax advisor prior to proceeding with the transaction. TAXATION OF ANNUITY PAYMENTS. Although tax consequences may vary depending on the payment option elected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of an annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income. The tax treatment of partial annuitizations is unclear. We currently treat any partial annuitizations as withdrawals rather than as annuity payments. Please consult your tax adviser before electing a partial annuitization. DEATH BENEFITS. Amounts may be distributed from a Contract because of your death or the death of the annuitant. Generally, such amounts are includible in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a surrender of the Contract, or (ii) if distributed under a payment option, they are taxed in the same way as annuity payments. Special rules may apply to amounts distributed after a Beneficiary has elected to maintain Contract value and receive payments. The Contract offers a death benefit (including the benefit provided by the earnings multiplier benefit rider) that may exceed the greater of the premium payments and the contract value. Certain charges are imposed with respect to the death benefit. It is possible that these charges (or some portion thereof) could be treated for federal tax purposes as a distribution from the Contract. 28 AccessOne - 134794 ASSIGNMENTS AND OTHER TRANSFERS. A transfer, pledge or assignment of ownership of a Contract, or the designation of an annuitant or payee other than an owner, may result in certain tax consequences to you that are not discussed herein. A contract owner contemplating any such transfer, pledge, assignment, or designation or exchange, should consult a tax adviser as to the tax consequences. IMMEDIATE ANNUITIES. Under section 72 of the Tax Code, an immediate annuity means an annuity (1) which is purchased with a single premium, (2) with annuity payments starting within one year from the date of purchase, and (3) which provides a series of substantially equal periodic payments made annually or more frequently. Treatment as an immediate annuity will have significance with respect to exceptions from the 10% early withdrawal penalty, to contracts owned by non-natural persons, and for certain policy exchanges. MULTIPLE CONTRACTS. The tax law requires that all non-qualified deferred annuity contracts that are issued by a company or its affiliates to the same contract owner during any calendar year be treated as one non-qualified deferred annuity contract for purposes of determining the amount includible in such contract owner's income when a taxable distribution occurs. WITHHOLDING. We will withhold and remit to the U.S. government a part of the taxable portion of each distribution made under a Contract unless the distributee notifies us at or before the time of the distribution that he or she elects not to have any amounts withheld. Withholding will be mandatory, however, if the distributee fails to provide a valid taxpayer identification number or if we are notified by the IRS that the taxpayer identification number we have on file is incorrect. The withholding rates applicable to the taxable portion of periodic annuity payments are the same as the withholding rates generally applicable to payments of wages. In addition, a 10% withholding rate applies to the taxable portion of non-periodic payments. Regardless of whether you elect not to have federal income tax withheld, you are still liable for payment of federal income tax on the taxable portion of the payment. TAXATION OF QUALIFIED CONTRACTS GENERAL The Contracts are designed for use with several types of qualified plans. The tax rules applicable to participants in these qualified plans vary according to the type of plan and the terms and conditions of the plan itself. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from: contributions in excess of specified limits; distributions before age 59 1/2 (subject to certain exceptions); distributions that do not conform to specified commencement and minimum distribution rules; and in other specified circumstances. Therefore, no attempt is made to provide more than general information about the use of the Contracts with the various types of qualified retirement plans. Contract owners, annuitants, and beneficiaries are cautioned that the rights of any person to any benefits under these qualified retirement plans may be subject to the terms and conditions of the plans themselves, regardless of the terms and conditions of the Contract, but we shall not be bound by the terms and conditions of such plans to the extent such terms contradict the Contract, unless the Company consents. You will not generally pay taxes on earnings from the annuity contract described in this prospectus until they are withdrawn. When an annuity contract is used to fund one of these tax qualified retirement arrangements, you should know that the annuity contract does not provide any additional tax deferral of earnings beyond the tax deferral provided by the tax-qualified retirement arrangement. Tax-qualified retirement arrangements under Tax Code sections 401(a), 401(k), 403(a), 403(b) or governmental 457 plans also generally defer payment of taxes on earnings until they are withdrawn (or in the case of a non-governmental 457 plan, paid or made available to you or a designated beneficiary). However, annuities do provide other features and benefits which may be valuable to you. You should discuss your alternatives with your local representative. 29 AccessOne - 134794 DISTRIBUTIONS - GENERAL For qualified plans under Section 401(a) and 403(b), the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the plan participant for whose benefit the contract is purchased (i) reaches age 70 1/2 or (ii) retires, and must be made in a specified form or manner. If the plan participant is a "5 percent owner" (as defined in the Code), distributions generally must begin no later than April 1 of the calendar year following the calendar year in which the plan participant reaches age 70 1/2. For IRAs described in Section 408, distributions generally must commence no later than by April 1 of the calendar year following the calendar year in which the individual contract owner reaches age 70 1/2. Roth IRAs under Section 408A do not require distributions at any time before the contract owner's death. Please note that required minimum distributions under qualified Contracts may be subject to surrender charges and/or market value adjustment, in accordance with the terms of the Contract. This could affect the amount that must be taken from the Contract in order to satisfy required minimum distributions. DIRECT ROLLOVERS If the Contract is used in connection with a pension, profit-sharing, or annuity plan qualified under sections 401(a) or 403(a) of the Code, or is a tax-sheltered annuity under section 403(b) of the Code, or is used with an eligible deferred compensation plan that has a government sponsor and that is qualified under section 457(b), any "eligible rollover distribution" from the Contract will be subject to the direct rollover and mandatory withholding requirements. An eligible rollover distribution generally is any taxable distribution from a qualified pension plan under section 401(a) of the Code, qualified annuity plan under section 403(a) of the Code, section 403(b) annuity or custodial account, or an eligible section 457(b) deferred compensation plan that has a government sponsor, excluding certain amounts (such as minimum distributions required under section 401(a)(9) of the Code, distributions which are part of a "series of substantially equal periodic payments" made for life or a specified period of 10 years or more, or hardship distributions as defined in the tax law). Under these requirements, federal income tax equal to 20% of the eligible rollover distribution will be withheld from the amount of the distribution. Unlike withholding on certain other amounts distributed from the Contract, discussed below, you cannot elect out of withholding with respect to an eligible rollover distribution. However, this 20% withholding will not apply if, instead of receiving the eligible rollover distribution, you elect to have it directly transferred to certain qualified plans. Prior to receiving an eligible rollover distribution, you will receive a notice (from the plan administrator or us) explaining generally the direct rollover and mandatory withholding requirements and how to avoid the 20% withholding by electing a direct rollover. CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS Section 401(a) of the Code permits corporate employers to establish various types of retirement plans for employees, and permits self-employed individuals to establish these plans for themselves and their employees. These retirement plans may permit the purchase of the Contracts to accumulate retirement savings under the plans. Adverse tax or other legal consequences to the plan, to the participant, or to both may result if this Contract is assigned or transferred to any individual as a means to provide benefit payments, unless the plan complies with all legal requirements applicable to such benefits before transfer of the Contract. Employers intending to use the Contract with such plans should seek competent advice. INDIVIDUAL RETIREMENT ANNUITIES - GENERAL Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an "Individual Retirement Annuity" or "IRA." These IRAs are subject to limits on the amount that can be contributed, the deductible amount of the contribution, the persons who may be eligible, and the time when distributions commence. Also, distributions from certain other types of qualified retirement plans may be "rolled over" on a tax-deferred basis into an IRA. Also, amounts in another IRA or individual retirement account can be rolled over or transferred tax-free to an IRA. There are significant restrictions on rollover or transfer contributions from Savings Incentive Match Plans for Employees (SIMPLE), under which certain employers may provide contributions to IRAs on behalf of their employees, subject to special restrictions. Employers may establish Simplified Employee Pension (SEP) Plans to provide IRA contributions on behalf of their employees. If you make a tax-free rollover of a distribution from any of these IRAs, you may not make another tax-free rollover from the IRA within a 1-year period. Sales of the Contract for use with IRAs may be subject to special requirements of the IRS. 30 AccessOne - 134794 INDIVIDUAL RETIREMENT ANNUITIES - DISTRIBUTIONS All distributions from a traditional IRA are taxed as received unless either one of the following is true: o The distribution is rolled over to a plan eligible to receive rollovers or to another traditional IRA or certain qualified plans in accordance with the Tax Code; or o You made after-tax contributions to the IRA. In this case, the distribution will be taxed according to rules detailed in the Tax Code. To avoid certain tax penalties, you and any designated beneficiary must also meet the minimum distribution requirements imposed by the Tax Code. The requirements do not apply to Roth IRA contracts while the owner is living. These rules may dictate the following: o Start date for distributions; o The time period in which all amounts in your account(s) must be distributed; and o Distribution amounts. Generally, you must begin receiving distributions from a traditional IRA by April 1 of the calendar year following the calendar year in which you attain age 70 1/2. We must pay out distributions from the contract over a period not extending beyond one of the following time periods: o Over your life or the joint lives of you and your designated beneficiary; or o Over a period not greater than your life expectancy or the joint life expectancies of you and your designated beneficiary. The amount of each periodic distribution must be calculated in accordance with IRS regulations. If you fail to receive the minimum required distribution for any tax year, a 50% excise tax may be imposed on the required amount that was not distributed. The following applies to the distribution of death proceeds under 408(b) and 408A (Roth IRA - See below) plans. Different distribution requirements apply after your death. If your death occurs on or after you begin receiving minimum distributions under the contract, distributions must be made at least as rapidly as under the method in effect at the time of your death. Code section 401(a)(9) provides specific rules for calculating the required minimum distributions at your death. The death benefit under the contract and also certain other contract benefits, such as living benefits, may affect the amount of the required minimum distribution that must be taken. If your death occurs before you begin receiving minimum distributions under the contract, your entire balance must be distributed by December 31 of the calendar year containing the fifth anniversary of the date of your death. For example, if you die on September 1, 2005, your entire balance must be distributed to the designated beneficiary by December 31, 2010. However, if distributions begin by December 31 of the calendar year following the calendar year of your death, and you have named a designated beneficiary, then payments may be made over either of the following time frames: 31 AccessOne - 134794 o Over the life of the designated beneficiary; or o Over a period not extending beyond the life expectancy of the designated beneficiary. If the designated beneficiary is your spouse, distributions must begin on or before the later of the following: o December 31 of the calendar year following the calendar year of your death; or o December 31 of the calendar year in which you would have attained age 70 1/2. ROTH IRAS - GENERAL Section 408A of the Code permits certain eligible individuals to contribute to a Roth IRA. Contributions to a Roth IRA, which are subject to limits on the amount of the contributions and the persons who may be eligible to contribute, are not deductible, and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. Certain qualifying individuals may convert an IRA, SEP, or SIMPLE IRA, to a Roth IRA. Such rollovers and conversions are subject to tax, and other special rules may apply. If you make a tax-free rollover of a distribution from a Roth IRA to another Roth IRA, you may not make another tax-free rollover from the Roth IRA from which the rollover was made within a 1-year period. A 10% penalty may apply to amounts attributable to a conversion to a Roth IRA if the amounts are distributed during the five taxable years beginning with the year in which the conversion was made. ROTH IRAS - DISTRIBUTIONS A qualified distribution from a Roth IRA is not taxed when it is received. A qualified distribution is a distribution: o Made after the five-taxable year period beginning with the first taxable year for which a contribution was made to a Roth IRA of the owner; and o Made after you attain age 59 1/2, die, become disabled as defined in the Tax Code, or for a qualified first-time home purchase. If a distribution is not qualified, it will be taxable to the extent of the accumulated earnings. Under special ordering rules, a partial distribution will first be treated generally as a return of contributions which is not taxable and then as taxable accumulated earnings. TAX SHELTERED ANNUITIES - GENERAL The Contracts may be used by individuals whose premium payments are comprised solely of proceeds from and/or contributions under retirement plans that are intended to qualify as plans entitled to special income tax treatment under Code section 403(b) plans. Section 403(b) of the Code allows employees of certain Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, to a Contract that will provide an annuity for the employee's retirement. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from: contributions in excess of specified limits; distributions before age 59 1/2 (subject to certain exceptions); distributions that do not conform to specified commencement and minimum distribution rules; and other specified circumstances. 403(b) plans may be subject to additional distribution and other requirements that are not incorporated into our Contract. In addition, the Treasury proposed 403(b) regulations in November, 2004 which, if finalized, do not take effect until after 2005. These proposed regulations may not be relied upon until they become final. The proposed regulations include rules governing the ability of a 403(b) plan to be terminated which would entitle a participant to a distribution, a revocation of IRS Revenue Ruling 90-204 which would increase restrictions on a participant's right to transfer his or her 403(b) account, the imposition of withdrawal restrictions on non-salary reduction amounts, as well as other changes. As a result, no attempt is made to provide more than general information about the use of the Contracts with 403(b) plans. Contract owners, annuitants, and beneficiaries are cautioned that the rights of any person to any benefits under these 403(b) plans may be subject to the terms and conditions of the plans themselves, regardless of the terms and conditions of the Contract, but we are not bound by the terms and conditions of such plans to the extent such terms contradict the Contract. Contract owners, participants and beneficiaries are responsible for determining that contributions, distributions and other transactions with respect to the Contract comply with applicable law. You should seek competent legal and tax advice regarding the suitability of a Contract for your particular situation. The following discussion assumes that Contracts are purchased with proceeds from and/or contributions under 403(b) plans that qualify for the intended special federal income tax treatment. 32 AccessOne - 134794 TAX SHELTERED ANNUITIES - LOANS Loans may be available if you purchased your contract in connection with a non-ERISA plan qualified under Section 403(b) of the Code ("TSA"). We do not currently permit loans under Section 403(b) Contracts that are subject to ERISA. If your Contract was issued in connection with a TSA and the terms of your plan permit, you may take a loan from us, using your surrender value as collateral for the loan. Loans are subject to the terms of the Contract, your 403(b) plan, the Code and other federal and state regulations. The amount and number of loans outstanding at any one time under your TSA are limited, whether under our contracts or those of other carriers. We may modify the terms of a loan to comply with changes in applicable law. Various mandatory repayment requirements apply to loans, and failure to repay generally would result in income to you and the potential application of tax penalties. We urge you to consult with a qualified tax advisor prior to effecting a loan transaction under your Contract. We may apply additional restrictions or limitations on loans, and you must make loan requests in accordance with our administrative practices and loan request procedures in effect at the time you submit your request. Read the terms of the loan agreement before submitting any request. Any outstanding loan balance impacts the following: o Withdrawals and Charges: We determine amounts available for maximum withdrawal amounts, free partial withdrawals, systematic withdrawals and waiver of administrative charges by reducing the otherwise applicable amounts by the amount of any outstanding loan balance. o Death Benefits, Annuitization and Surrenders: We deduct the outstanding loan balance from any amounts otherwise payable and in determining the amount available for annuitization. TAX SHELTERED ANNUITIES - DISTRIBUTIONS All distributions from Section 403(b) plans are taxed as received unless either of the following is true: o The distribution is rolled over to another plan eligible to receive rollovers or to a traditional individual retirement annuity/account (IRA) in accordance with the Tax Code; or o You made after-tax contributions to the plan. In this case, the amount will be taxed according to rules detailed in the Tax Code. Generally, you must begin receiving distributions by April 1 of the calendar year following the calendar year in which you attain age 70 1/2 or retire, whichever occurs later, unless you had amounts under the contract as of December 31, 1986. In this case, distribution of these amounts generally must begin by the end of the calendar year in which you attain age 75 or retire, if later. The death benefit under the contract and also certain other contract benefits, such as the living benefits, may affect the amount of the required minimum distribution that must be taken. If you take any distributions in excess of the required minimum amount, then special rules require that some or all of the December 31, 1986 balance be distributed earlier. 33 AccessOne - 134794 TAX CONSEQUENCES OF ENHANCED DEATH BENEFIT The Contract offers a death benefit (including the benefit provided by the earnings multiplier benefit rider) that may exceed the greater of the premium payments and the contract value. It is possible that the IRS could characterize such a death benefit as an incidental death benefit. There are limitations on the amount of incidental benefits that may be provided under pension and profit sharing plans. In addition, the provision of such benefits may result in currently taxable income to participants. Also, as stated above, the presence of the death benefit, as well as certain other contract benefits, could affect the amount of required minimum distributions. OTHER TAX CONSEQUENCES As noted above, the foregoing comments about the federal tax consequences under the Contracts are not exhaustive, and special rules are provided with respect to other tax situations not discussed in this prospectus. Further, the federal income tax consequences discussed herein reflect our understanding of current law, and the law may change. Federal estate and state and local estate, inheritance and other tax consequences of ownership or receipt of distributions under a Contract depend on the individual circumstances of each contract owner or recipient of the distribution. A competent tax adviser should be consulted for further information. POSSIBLE CHANGES IN TAXATION Although the likelihood of legislative change is uncertain, there is always the possibility that the tax treatment of the Contracts could change by legislation or other means. It is also possible that any change could be retroactive (that is, effective before the date of the change). You should consult a tax adviser with respect to legislative developments and their effect on the Contract. FEDERAL INCOME TAX WITHHOLDING We will withhold and remit to the U.S. government a part of the taxable portion of each distribution made under a Contract unless the distributee notifies us at or before the time of the distribution that he or she elects not to have any amounts withheld. In certain circumstances, we may be required to withhold tax, as explained above. The withholding rates applicable to the taxable portion of periodic annuity payments (other than eligible rollover distributions) are the same as the withholding rates generally applicable to payments of wages. In addition, a 10% withholding rate applies to the taxable portion of non-periodic payments (including withdrawals prior to the annuity starting date) and conversions of, and rollovers from, non-Roth IRAs to Roth IRAs. Regardless of whether you elect not to have federal income tax withheld, you are still liable for payment of federal income tax on the taxable portion of the payment. As discussed above, the withholding rate applicable to eligible rollover distributions is 20%. ASSIGNMENTS Adverse tax consequences to the plan and/or to you may result if your beneficial interest in the contract is assigned or transferred to persons other than: a plan participant as a means to provide benefit payments; an alternate payee under a qualified domestic relations order in accordance with code section 414(p); or to the Company as collateral for a loan. TAXATION OF COMPANY We are taxed as a life insurance company under the Tax Code. The Separate Account is not a separate entity from us. Therefore, it is not taxed separately as a "regulated investment company," but is taxed as part of the Company. We automatically apply investment income and capital gains attributable to the separate account to increase reserves under the contracts. Because of this, under existing federal tax law we believe that any such income and gains will not be taxed to the extent that such income and gains are applied to increase reserves under the contracts. In addition, any foreign tax credits attributable to the separate account will be first used to reduce any income taxes imposed on the separate account before being used by the Company. 34 AccessOne - 134794 In summary, we do not expect that we will incur any federal income tax liability attributable to the separate account and we do not intend to make any provision for such taxes. However, changes in federal tax laws and/or their interpretation may result in our being taxed on income or gains attributable to the separate account. In this case, we may impose a charge against the separate account (with respect to some or all of the contracts) to set aside provisions to pay such taxes. We may deduct this amount from the separate account, including from your account value invested in the subaccounts. 35 AccessOne - 134794 This page intentionally left blank. 36 AccessOne - 134794 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- TABLE OF CONTENTS Item Introduction Description of ING USA Annuity and Life Insurance Company Safekeeping of Assets The Administrator Independent Auditors Distribution of Contracts Performance Information IRA Partial Withdrawal Option Other Information Consolidated Financial Statements of ING USA Annuity and Life Insurance Company Financial Statements of ING USA Annuity and Life Insurance Company Separate Account B - -------------------------------------------------------------------------------- PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER THE PROSPECTUS. ADDRESS THE FORM TO OUR CUSTOMER SERVICE CENTER. THE ADDRESS IS SHOWN ON THE PROSPECTUS COVER. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION FOR SEPARATE ACCOUNT B. Please Print or Type: __________________________________________________ NAME __________________________________________________ SOCIAL SECURITY NUMBER __________________________________________________ STREET ADDRESS __________________________________________________ CITY, STATE, ZIP AccessOne - 134794 04/29/05 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SAI-1 AccessOne - 134794 - -------------------------------------------------------------------------------- APPENDIX A - -------------------------------------------------------------------------------- CONDENSED FINANCIAL INFORMATION EXCEPT FOR SUBACCOUNTS WHICH DID NOT COMMENCE OPERATIONS AS OF DECEMBER 31, 2004, THE FOLLOWING TABLES GIVE (1) THE ACCUMULATION UNIT VALUE ("AUV") AT THE BEGINNING OF THE PERIOD, (2) THE AUV AT THE END OF THE PERIOD AND (3) THE TOTAL NUMBER OF ACCUMULATION UNITS OUTSTANDING AT THE END OF THE PERIOD FOR EACH SUBACCOUNT OF ING USA SEPARATE ACCOUNT B AVAILABLE UNDER THE CONTRACT FOR THE INDICATED PERIODS.
2004 2003 2002 2001 2000 ---- ---- ---- ---- ---- SEPARATE ACCOUNT ANNUAL CHARGES OF 0.50% ING CAPITAL GUARDIAN LARGE CAP VALUE (Fund first available during September 2000) AUV at beginning of period $10.52 $7.73 $10.20 $10.63 $10.77 AUV at end of period $11.44 $10.52 $7.73 $10.20 $10.63 Number of accumulation units outstanding at end of period 1,323 1,323 185 185 0 ING CAPITAL GUARDIAN MANAGED GLOBAL (Fund first available during September 2000) AUV at beginning of period $20.51 $15.12 $19.04 $21.72 $23.85 AUV at end of period $22.64 $20.51 $15.12 $19.04 $21.72 Number of accumulation units outstanding at end of period 1,151 1,151 953 953 953 ING CAPITAL GUARDIAN SMALL CAP (Fund first available during September 2000) AUV at beginning of period $19.55 $14.00 $18.87 $19.25 $24.08 AUV at end of period $20.91 $19.55 $14.00 $18.87 $19.25 Number of accumulation units outstanding at end of period 1,340 1,340 1,141 1,141 1,040 ING HARD ASSETS (Fund first available during September 2000) AUV at beginning of period $24.12 $15.93 $15.88 $18.16 $18.93 AUV at end of period 0 $24.12 $15.93 $15.88 $18.16 Number of accumulation units outstanding at end of period 0 0 14,311 0 0 ING LIMITED MATURITY BOND (Fund first available during September 2000) AUV at beginning of period $23.37 $22.84 $21.41 $19.77 $19.20 AUV at end of period $23.58 $23.37 $22.84 $21.41 $19.77 Number of accumulation units outstanding at end of period 1,262 5,354 1,262 1,262 1,095 ING LIQUID ASSETS (Fund first available during September 2000) AUV at beginning of period $18.00 $17.96 $17.79 $17.22 $16.94 AUV at end of period 0 $18.00 $17.96 $17.79 $17.22 Number of accumulation units outstanding at end of period 0 13,259 0 23,869 0 ING MARSICO GROWTH (Fund first available during September 2000) AUV at beginning of period $14.76 $11.18 $15.95 $22.98 $29.10 AUV at end of period $16.52 $14.76 $11.18 $15.95 $22.98 Number of accumulation units outstanding at end of period 808 808 808 808 808 ING MFS TOTAL RETURN (Fund first available during September 2000) AUV at beginning of period $24.07 $20.72 $21.94 $21.95 $20.55 AUV at end of period $26.62 $24.07 $20.72 $21.94 $21.95 Number of accumulation units outstanding at end of period 244 244 244 244 0 ING T. ROWE PRICE EQUITY INCOME (Fund first available during September 2000) AUV at beginning of period $28.87 $23.18 $26.84 $26.61 $24.14 AUV at end of period 33 $28.87 $23.18 $26.84 $26.61 Number of accumulation units outstanding at end of period 875 875 875 875 833 ING VAN KAMPEN GROWTH & INCOME (Fund first available during September 2000) AUV at beginning of period $25.14 $19.76 $23.30 $26.59 $27.08 AUV at end of period $28.54 $25.14 $19.76 $23.30 $26.59 Number of accumulation units outstanding at end of period 49 49 49 49 0
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2004 2003 2002 2001 2000 ---- ---- ---- ---- ---- ING VAN KAMPEN REAL ESTATE (Fund first available during September 2000) AUV at beginning of period $43.58 $31.80 $31.90 $29.64 $27.65 AUV at end of period $59.73 $43.58 $31.80 $31.90 $29.64 Number of accumulation units outstanding at end of period 73 73 73 73 0 PIMCO HIGH YIELD PORTFOLIO (Fund first available during May 2004) AUV at beginning of period $10.00 AUV at end of period $10.89 Number of accumulation units outstanding at end of period 224
A2 AccessOne - 134794 - -------------------------------------------------------------------------------- APPENDIX B - -------------------------------------------------------------------------------- THE INVESTMENT PORTFOLIOS During the accumulation phase, you may allocate your premium payments and contract value to any of the investment portfolios available under this Contract. They are listed in this appendix. You bear the entire investment risk for amounts you allocate to any investment portfolio, and you may lose your principal. The investment results of the mutual funds (funds) are likely to differ significantly and there is no assurance that any of the funds will achieve their respective investment objectives. You should consider the investment objectives, risks and charges and expenses of the funds carefully before investing. Please refer to the fund prospectuses for this and additional information. Shares of the funds will rise and fall in value and you could lose money by investing in the funds. Shares of the funds are not bank deposits and are not guaranteed, endorsed or insured by any financial institution, the Federal Deposit Insurance Corporation or any other government agency. Except as noted, all funds are diversified, as defined under the Investment Company Act of 1940. Fund prospectuses may be obtained free of charge, from our Customer Service Center at the address and telephone number listed in the prospectus, by accessing the SEC's web site or by contacting the SEC Public Reference Room. Certain funds offered under the contracts have investment objectives and policies similar to other funds managed by the fund's investment adviser. The investment results of a fund may be higher or lower than those of other funds managed by the same adviser. There is no assurance and no representation is made that the investment results of any fund will be comparable to those of another fund managed by the same investment adviser. Certain funds are designated as "Master-Feeder" and "LifeStyle Funds". Funds offered in a Master-Feeder structure (such as the American Funds) or fund of funds structure (such as the LifeStyle Funds) may have higher fees and expenses than a fund that invests directly in debt and equity securities.
- ------------------------------------------------------------------------------------------------------------------------------- LIST OF FUND NAME CHANGES - ------------------------------------------------------------------------------------------------------------------------------- FORMER FUND NAME CURRENT FUND NAME - ------------------------------------------------------------------------------------------------------------------------------- ING Capital Guardian Large Cap Value Portfolio ING Capital Guardian U.S. Equities Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING Capital Guardian Small Cap Portfolio ING Capital Guardian Small/Mid Cap Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING Developing World Portfolio ING JPMorgan Emerging Markets Equity Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING Goldman Sachs Internet Tollkeeper Portfolio ING Goldman Sachs Tollkeeper Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING Hard Assets Portfolio ING Global Resources Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING Janus Special Equity Portfolio ING Janus Contrarian Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING Mercury Fundamental Growth Portfolio ING Mercury LargeCap Growth Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING MFS Research Portfolio ING Oppenheimer Main Street Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING UBS U.S. Balanced Portfolio ING UBS U.S. Allocation Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING VP Bond Portfolio ING VP Intermediate Bond Portfolio - ------------------------------------------------------------------------------------------------------------------------------- ING VP Worldwide Growth Portfolio ING VP Global Equity Dividend Portfolio - ------------------------------------------------------------------------------------------------------------------------------- INVESCO VIF - Leisure Fund (Series I) AIM V.I. Leisure Fund (Series I) - -------------------------------------------------------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING INVESTORS TRUST 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258 - ------------------------------------------------------------------------------------------------------------------------------- ING AIM MID CAP GROWTH PORTFOLIO (Class S) Seeks capital appreciation. Normally, invests at least 80% INVESTMENT ADVISER: Directed Services, Inc. of its assets in securities of mid-capitalization INVESTMENT SUBADVISER: A I M Capital Management, Inc. companies. May also invest up to 25% in foreign securities. - ------------------------------------------------------------------------------------------------------------------------------- ING ALLIANCE MID CAP GROWTH PORTFOLIO Seeks long-term total return. Invests in common stocks of (Class S) middle capitalization companies. Normally invests INVESTMENT ADVISER: Directed Services, Inc. substantially all of its assets in high-quality common INVESTMENT SUBADVISER: Alliance Capital Management, L.P. stocks that the subadviser expects to increase in value. - ------------------------------------------------------------------------------------------------------------------------------- ING AMERICAN FUNDS GROWTH PORTFOLIO Seeks to make your investment grow. The Portfolio operates INVESTMENT ADVISER: ING Investments, LLC as a "feeder fund" which invests all of its assets in the INVESTMENT SUBADVISER: Capital Research Management Company "master fund" which is Class 2 shares of the Growth Fund, a series of American Funds Insurance Series(R), a registered open-end investment company. The master fund invests primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. The Growth Fund is designed for investors seeking long-term capital appreciation through stocks. - ------------------------------------------------------------------------------------------------------------------------------- ING AMERICAN FUNDS GROWTH-INCOME PORTFOLIO Seeks to make your investment grow and provide you with INVESTMENT ADVISER: ING Investments, LLC income over time. The Portfolio operates as a "feeder INVESTMENT SUBADVISER: Capital Research Management Company fund" which invests all of its assets in the "master fund" which is Class 2 shares of the Growth-Income Fund, a series of American Funds Insurance Series(R), a registered open-end investment company. The master fund invests primarily in common stocks or other securities which demonstrate the potential for appreciation and/or dividends. The Growth-Income Fund is designed for investors seeking both capital appreciation and income. - ------------------------------------------------------------------------------------------------------------------------------- ING AMERICAN FUNDS INTERNATIONAL PORTFOLIO Seeks to make your investment grow over time. The Portfolio INVESTMENT ADVISER: ING Investments, LLC operates as a "feeder fund" which invests all of its assets INVESTMENT SUBADVISER: Capital Research Management Company in the "master fund" which is Class 2 shares of the International Fund, a series of American Funds Insurance Series(R), a registered open-end investment company. The master fund invests primarily in common stocks of companies located outside the United States. The International Fund is designed for investors seeking capital appreciation through stocks. - ------------------------------------------------------------------------------------------------------------------------------- ING CAPITAL GUARDIAN MANAGED GLOBAL PORTFOLIO Seeks capital appreciation. Current income is only an (Class S) incidental consideration. Invests primarily in common INVESTMENT ADVISER: Directed Services, Inc. stocks traded in securities markets throughout the world. INVESTMENT SUBADVISER: Capital Guardian Trust Company May invest up to 100% of its total assets in securities traded in securities markets outside the United States. Generally invests at least 65% of its total assets in at least three different countries, one of which may be the United States. - -------------------------------------------------------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- Seeks long-term capital appreciation. Invests at least 80% ING CAPITAL GUARDIAN SMALL/MID CAP PORTFOLIO of its assets in equity securities of small/mid (Class S) capitalization ("small/mid-cap") companies. (formerly ING Capital Guardian Small Cap Portfolio) INVESTMENT ADVISER: Directed Services, Inc. INVESTMENT SUBADVISER: Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------- Seeks long-term growth of capital and income. Invests, ING CAPITAL GUARDIAN U.S. EQUITIES PORTFOLIO under normal market conditions, at least 80% of its assets (Class S) in equity and equity-related securities of issuers located (formerly ING Capital Guardian Large Cap Value Portfolio) in the United States. INVESTMENT ADVISER: Directed Services, Inc. INVESTMENT SUBADVISER: Capital Guardian Trust Company - ------------------------------------------------------------------------------------------------------------------------------- ING EAGLE ASSET CAPITAL APPRECIATION PORTFOLIO (Class S) Seeks capital appreciation. Dividend income is a secondary INVESTMENT ADVISER: Directed Services, Inc. objective. Normally invests at least 80% of its assets in INVESTMENT SUBADVISER: Eagle Asset Management, Inc. equity securities of domestic and foreign issuers that meet quantitative standards relating to financial soundness and high intrinsic value relative to price. - ------------------------------------------------------------------------------------------------------------------------------- ING EVERGREEN HEALTH SCIENCES PORTFOLIO A non-diversified Portfolio that seeks long-term capital (Class S) growth. Normally invests at 80% of its assets in the equity securities of healthcare companies. May invest in INVESTMENT ADVISER: Directed Services, Inc. securities of relatively well-known and large companies as INVESTMENT SUBADVISER: Evergreen Investment Management well as small- and medium-sized companies. Company, LLC - ------------------------------------------------------------------------------------------------------------------------------- ING EVERGREEN OMEGA PORTFOLIO (Class S) Seeks long-term capital growth. Invests primarily in common stocks and securities convertible into common stocks INVESTMENT ADVISER: Directed Services, Inc. of U.S. companies across all market capitalizations. May INVESTMENT SUBADVISER: Evergreen Investment Management invest up to 25% of its assets in foreign securities. Company, LLC - ------------------------------------------------------------------------------------------------------------------------------- Seeks long-term growth of capital. Normally invests ING FMR(SM) DIVERSIFIED MID CAP PORTFOLIO primarily in common stocks and normally invests at least (Class S) 80% of assets in securities of companies with medium market INVESTMENT ADVISER: Directed Services, Inc. capitalizations. INVESTMENT SUBADVISER: Fidelity Management & Research Co. - ------------------------------------------------------------------------------------------------------------------------------- ING FMR(SM) EARNINGS GROWTH PORTFOLIO Seeks growth of capital over the long term. Normally (Class S) invests primarily in common stocks. Invests the assets in INVESTMENT ADVISER: Directed Services, Inc. companies it believes have above-average growth potential. INVESTMENT SUBADVISER: Fidelity Management & Research Co. Growth may be measured by factors such as earnings or revenue. Companies with high growth potential tend to be companies with higher than average price/earnings (P/E) or price/book (P/B) ratios. - ------------------------------------------------------------------------------------------------------------------------------- A non-diversified Portfolio that seeks long-term capital ING GLOBAL RESOURCES PORTFOLIO (Class S) appreciation. Normally invests at least 80% of its assets (formerly ING Hard Assets Portfolio) in the equities of producers of commodities. INVESTMENT ADVISER: Directed Services, Inc. INVESTMENT SUBADVISER: Baring International Investment Limited - -------------------------------------------------------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING GOLDMAN SACHS TOLLKEEPER(SM) PORTFOLIO* (Class S) Seeks long-term growth of capital. Invests, under normal (formerly ING Goldman Sachs Internet Tollkeeper Portfolio) circumstances, at least 80% of its net assets plus any INVESTMENT ADVISER: Directed Services, Inc. borrowings for investment purposes (measured at time of INVESTMENT SUBADVISER: Goldman Sachs Asset Management, L.P. purchase) in equity investments in "Tollkeeper" companies, which are high-quality technology, media, or service companies that adopt or use technology to improve cost * Goldman Sachs Tollkeeper(SM) is a service mark of structure, revenue opportunities, and/or competitive Goldman Sachs & Co. advantage. - ------------------------------------------------------------------------------------------------------------------------------- ING JANUS CONTRARIAN PORTFOLIO (Class S) A non-diversified Portfolio that seeks capital (formerly ING Janus Special Equity Portfolio) appreciation. Invests, under normal circumstances, at least INVESTMENT ADVISER: Directed Services, Inc. 80% of its net assets (plus borrowings for investment INVESTMENT SUBADVISER: Janus Capital Management, LLC purposes) in equity securities with the potential for long-term growth of capital. - ------------------------------------------------------------------------------------------------------------------------------- ING JENNISON EQUITY OPPORTUNITIES PORTFOLIO Seeks long-term capital growth. Normally invests at least (Class S) 80% of its net assets (plus any borrowings for investment INVESTMENT ADVISER: Directed Services, Inc. purposes) in attractively valued equity securities of INVESTMENT SUBADVISER: Jennison Associates, LLC companies with current or emerging earnings growth it believes to be not fully appreciated or recognized by the market. - ------------------------------------------------------------------------------------------------------------------------------- ING JPMORGAN EMERGING MARKETS EQUITY PORTFOLIO (Class S) Seeks capital appreciation. Normally invests at least 80% (formerly ING Developing World Portfolio) of its assets in securities of issuers located in at least INVESTMENT ADVISER: Directed Services, Inc. three countries with emerging securities markets. May also INVESTMENT SUBADVISER: JPMorgan Investment Management Inc. invest to a lesser extent in debt securities of issuers in countries with emerging markets. May also invest in high-quality, short-term money market instruments and repurchase agreements. - ------------------------------------------------------------------------------------------------------------------------------- ING JPMORGAN SMALL CAP EQUITY PORTFOLIO Seeks capital growth over the long term. Under normal (Class S) market conditions, invests at least 80% of its total assets INVESTMENT ADVISER: Directed Services, Inc. in equity securities of small-cap companies. May invest up INVESTMENT SUBADVISER: J.P. Morgan Investment Management to 20% of its assets in foreign securities, convertible Inc. securities and high quality money market instruments and repurchase agreements. May invest in REITs and derivatives. - ------------------------------------------------------------------------------------------------------------------------------- ING JPMORGAN VALUE OPPORTUNITIES PORTFOLIO Seeks to provide long-term capital appreciation. Under (Class S) normal market conditions, the Portfolio invests at least INVESTMENT ADVISER: Directed Services, Inc. 80% of its assets in equity securities of mid and INVESTMENT SUBADVISER: J.P. Morgan Investment Management large-capitalization companies at the time of purchase. Inc. - ------------------------------------------------------------------------------------------------------------------------------- ING JULIUS BAER FOREIGN PORTFOLIO (Class S) Seeks long-term growth of capital. Under normal INVESTMENT ADVISER: Directed Services, Inc. conditions, invests in a wide variety of international INVESTMENT SUBADVISER: Julius Baer Investment Management LLC equity securities issued through the world, normally excluding the United States. Normally invests at least 80% of its assets in equity securities tied economically to countries outside the United States. - -------------------------------------------------------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING LEGG MASON VALUE PORTFOLIO (Class S) A non-diversified portfolio that seeks long-term growth of (formerly ING Janus Growth and Income Portfolio) capital. Normally invests in equity securities, including foreign securities, that offer the potential for capital INVESTMENT ADVISER: Directed Services, Inc. growth. May also invest in companies with market INVESTMENT SUBADVISER: Legg Mason Funds Management, Inc. capitalizations greater than $5 billion, but may invest in companies of any size. May also invest up to 25% of its total assets in long-term debt securities. - ------------------------------------------------------------------------------------------------------------------------------- ING LIFESTYLE AGGRESSIVE GROWTH PORTFOLIO Seeks growth of capital. Invests in a combination of underlying funds according to a fixed formula that over INVESTMENT ADVISER: ING Investments, LLC time should reflect an allocation of approximately 100% in equity securities. - ------------------------------------------------------------------------------------------------------------------------------- ING LIFESTYLE GROWTH PORTFOLIO Seeks growth of capital and some current income. Invests in a combination of underlying funds according to a fixed INVESTMENT ADVISER: ING Investments, LLC formula that over time should reflect an allocation of approximately 80% in equity securities and 20% in fixed income securities. - ------------------------------------------------------------------------------------------------------------------------------- ING LIFESTYLE MODERATE GROWTH PORTFOLIO Seeks growth of capital and current income. Invests in a combination of underlying funds according to a fixed INVESTMENT ADVISER: ING Investments, LLC formula that over time should reflect an allocation of approximately 50% in equity securities and 50% in fixed income securities. - ------------------------------------------------------------------------------------------------------------------------------- ING LIFESTYLE MODERATE PORTFOLIO Seeks growth of capital and a low to moderate level of current income. Invests in a combination of underlying INVESTMENT ADVISER: ING Investments, LLC funds according to a fixed formula that over time should reflect an allocation of approximately 65% in equity securities and 35% in fixed income securities. - ------------------------------------------------------------------------------------------------------------------------------- ING LIQUID ASSETS PORTFOLIO (Class S) Seeks high level of current income consistent with the INVESTMENT ADVISER: Directed Services, Inc. preservation of capital and liquidity. Strives to maintain INVESTMENT SUBADVISER: ING Investment Management Co. a stable $1 per share net asset value and its investment strategy focuses on safety of principal, liquidity and yield, in order of importance, to achieve this goal. - ------------------------------------------------------------------------------------------------------------------------------- ING MARSICO GROWTH PORTFOLIO (Class S) Seeks capital appreciation. Invests primarily in equity INVESTMENT ADVISER: Directed Services, Inc. securities selected for their growth potential. May invest INVESTMENT SUBADVISER: Marsico Capital Management, LLC in companies of any size, from larger, well-established companies to smaller, emerging growth companies. - ------------------------------------------------------------------------------------------------------------------------------- ING MARSICO INTERNATIONAL OPPORTUNITIES PORTFOLIO (Class S) Seeks long-term growth of capital. Invests primarily (no INVESTMENT ADVISER: Directed Services, Inc. less than 65% of its total assets) in common stocks of INVESTMENT SUBADVISER: Marsico Capital Management, LLC foreign companies that are selected for their long-term growth potential. May invest in companies of any size throughout the world. Normally invests in issuers from at least three different countries not including the United States and generally maintains a core position of between 35 and 50 common stocks. May invest in common stocks of companies operating in emerging markets. - -------------------------------------------------------------------------------------------------------------------------------
B5 AccessOne - 134794
- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING MERCURY FOCUS VALUE PORTFOLIO (Class S) Seeks long-term growth of capital. Invests primarily in a INVESTMENT ADVISER: Directed Services, Inc. diversified portfolio consisting of equity securities that INVESTMENT SUBADVISER: Mercury Advisors it believes are undervalued relative to its assessment of the current or prospective condition of the issuer. - ------------------------------------------------------------------------------------------------------------------------------- ING MERCURY LARGECAP GROWTH PORTFOLIO Seeks long-term growth of capital. Invests at least 80% of (Class S) its assets in equity securities of large capitalization (formerly ING Mercury Fundamental Growth Portfolio) companies located in the United States believed to have INVESTMENT ADVISER: Directed Services, Inc. good prospects for earnings growth. These securities will INVESTMENT SUBADVISER: Mercury Advisors be selected from companies that are included in the Russell 1000(R) Growth Index. May invest up to 10% of its total assets in securities issued by foreign companies. Normally will invest a portion of its assets in short-term debt securities. - ------------------------------------------------------------------------------------------------------------------------------- ING MFS MID CAP GROWTH PORTFOLIO (Class S) Seeks long-term growth of capital. Normally invests at INVESTMENT ADVISER: Directed Services, Inc. least 80% of its net assets in common stocks and related INVESTMENT SUBADVISER: Massachusetts Financial Services securities (such as preferred stocks, convertible Company securities and depositary receipts) of companies with medium market capitalizations (or "mid-cap companies") which it believes have above-average growth potential. - ------------------------------------------------------------------------------------------------------------------------------- ING MFS TOTAL RETURN PORTFOLIO (Class S) Seeks above-average income (compared to a portfolio INVESTMENT ADVISER: Directed Services, Inc. entirely invested in equity securities) consistent with the INVESTMENT SUBADVISER: Massachusetts Financial Services prudent employment of capital. Secondarily seeks reasonable Company opportunity for growth of capital and income. Invests in a combination of equity and fixed income securities. - ------------------------------------------------------------------------------------------------------------------------------- ING MFS UTILITIES PORTFOLIO (Class S) A non-diversified portfolio that seeks capital growth and INVESTMENT ADVISER: Directed Services, Inc. current income. Normally invests at least 80% of its net INVESTMENT SUBADVISER: Massachusetts Financial Services assets in equity and debt securities of domestic and Company foreign (including emerging markets) companies in the utilities industry. - ------------------------------------------------------------------------------------------------------------------------------- ING OPPENHEIMER MAIN STREET PORTFOLIO (Class S) Seeks long-term growth of capital and future income. (formerly ING MFS Research Portfolio) Normally invests mainly in common stocks of U.S. companies INVESTMENT ADVISER: Directed Services, Inc. of different capitalization ranges, presently focusing on INVESTMENT SUBADVISER: OppenheimerFunds, Inc. large-capitalization issuers. May also invest in debt securities, such as bonds and debentures, but does not currently emphasize these investments. - ------------------------------------------------------------------------------------------------------------------------------- ING PIMCO CORE BOND PORTFOLIO (Class S) Seeks maximum total return, consistent with preservation of INVESTMENT ADVISER: Directed Services, Inc. capital and prudent investment management. Invests, under INVESTMENT SUBADVISER: Pacific Investment Management normal circumstances, at least 80% of its net assets (plus Company LLC borrowings for investment purposes) in a diversified portfolio of fixed income instruments of varying maturities. - -------------------------------------------------------------------------------------------------------------------------------
B6 AccessOne - 134794
- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING PIMCO HIGH YIELD PORTFOLIO (Class S) Seeks maximum total return, consistent with preservation of INVESTMENT ADVISER: Directed Services, Inc. capital and prudent investment management. Normally INVESTMENT SUBADVISER: Pacific Investment Management invests at least 80% of its net assets (plus borrowings for Company LLC investment purposes) in a diversified portfolio of high yield securities ("junk bonds") rated below investment grade but rated at least CCC/Caa by Moody's Investors Service, Inc., Standard and Poor's Rating Service, or Fitch, or if unrated, determined by PIMCO to be of comparable quality, subject to a maximum of 5% of total assets in CCC/Caa securities, determined at the time of investment. - ------------------------------------------------------------------------------------------------------------------------------- ING PIONEER FUND PORTFOLIO (Class S) Seeks reasonable income and capital growth. Invests in a INVESTMENT ADVISER: Directed Services, Inc. broad list of carefully selected securities believed to be INVESTMENT SUBADVISER: Pioneer Investment Management, Inc. reasonably priced, rather than in securities whose prices reflect a premium resulting from their current market popularity. Invests the major portion of its assets in equity securities, primarily of U.S. issuers. - ------------------------------------------------------------------------------------------------------------------------------- ING PIONEER MID CAP VALUE PORTFOLIO (Class S) Seeks capital appreciation. Normally invests at least 80% INVESTMENT ADVISER: Directed Services, Inc. of its total assets in equity securities of mid-size INVESTMENT SUBADVISER: Pioneer Investment Management, Inc. companies, that is companies with market values within the range of market values of companies included in the Russell Midcap Value Index. - ------------------------------------------------------------------------------------------------------------------------------- ING SALOMON BROTHERS ALL CAP PORTFOLIO (Class S) A non-diversified Portfolio that seeks capital appreciation INVESTMENT ADVISER: Directed Services, Inc. through investment in securities which it believes have INVESTMENT SUBADVISER: Salomon Brothers Asset Management, above-average capital appreciation potential. Invests Inc. primarily in common stocks and common stock equivalents, such as preferred stocks and securities convertible into common stocks, of companies it believes are undervalued in the marketplace. - ------------------------------------------------------------------------------------------------------------------------------- ING SALOMON BROTHERS INVESTORS PORTFOLIO Seeks long-term growth of capital. Secondarily seeks (Class S) current income. Invests primarily in equity securities of INVESTMENT ADVISER: Directed Services, Inc. U.S. companies. May also invest in other securities. To a INVESTMENT SUBADVISER: Salomon Brothers Asset Management, lesser degree, invests in income producing securities such Inc. as debt securities, and may also invest in securities of foreign issuers. - ------------------------------------------------------------------------------------------------------------------------------- ING T. ROWE PRICE CAPITAL APPRECIATION PORTFOLIO Seeks, over the long-term, a high total investment return, (Class S) consistent with the preservation of capital and prudent INVESTMENT ADVISER: Directed Services, Inc. investment risk. Pursues an active asset allocation INVESTMENT SUBADVISER: T. Rowe Price Associates, Inc. strategy whereby investments are allocated among three asset classes - equity securities, debt securities and money market instruments. May invest up to 25% of its net assets in foreign equity securities. - ------------------------------------------------------------------------------------------------------------------------------- ING T. ROWE PRICE EQUITY INCOME PORTFOLIO Seeks substantial dividend income as well as long-term (Class S) growth of capital. Normally invests at least 80% of its INVESTMENT ADVISER: Directed Services, Inc. assets in common stocks, with 65% in the common stocks of INVESTMENT SUBADVISER: T. Rowe Price Associates, Inc. well-established companies paying above-average dividends. May also invest in convertible securities, warrants and preferred stocks, foreign securities, debt securities including high-yield debt securities and future and options. - -------------------------------------------------------------------------------------------------------------------------------
B7 AccessOne - 134794
- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING UBS U.S. ALLOCATION PORTFOLIO (Class S) Seeks to maximize total return over the long term by (formerly ING UBS U.S. Balanced Portfolio) allocating its assets among stocks, bonds, short-term INVESTMENT ADVISER: Directed Services, Inc. instruments and other investments. Allocates its assets INVESTMENT SUBADVISER: UBS Global Asset Management among the following classes, or types, of investments: (Americas) Inc. stocks, bonds, and short-term money market debt obligations. - ------------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN EQUITY GROWTH PORTFOLIO Seeks long-term capital appreciation. Under normal (Class S) circumstances, at least 80% of the net assets of the INVESTMENT ADVISER: Directed Services, Inc. Portfolio will be invested in equity securities (plus INVESTMENT SUBADVISER: Van Kampen borrowings for investment purposes). Invests primarily in growth-oriented companies. May invest, to a limited extent, in foreign companies that are listed on U.S. exchanges or traded in U.S. markets. - ------------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN GLOBAL FRANCHISE PORTFOLIO A non-diversified Portfolio that seeks long-term capital (Class S) appreciation. Invests primarily in equity securities of INVESTMENT ADVISER: Directed Services, Inc. issuers located throughout the world that it believes have, INVESTMENT SUBADVISER: Van Kampen among other things, resilient business franchises and growth potential. Under normal market conditions, invests at least 65% of its total assets in securities of issuers from at least three different countries, which may include the United States. - ------------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN GROWTH AND INCOME PORTFOLIO Seeks long-term growth of capital and income. Under normal (Class S) market conditions, investing primarily in what it believes INVESTMENT ADVISER: Directed Services, Inc. to be income-producing equity securities, including common INVESTMENT SUBADVISER: Van Kampen stocks and convertible securities; although investments are also made in non-convertible preferred stocks and debt securities rated "investment grade," which are securities rated within the four highest grades assigned by Standard & Poor's or by Moody's Investors Service, Inc. - ------------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN REAL ESTATE PORTFOLIO (Class S) A non-diversified Portfolio that seeks capital appreciation INVESTMENT ADVISER: Directed Services, Inc. and secondarily seeks current income. Invests at least 80% INVESTMENT SUBADVISER: Van Kampen of its assets in equity securities of companies in the U.S. real estate industry that are listed on national exchanges or the National Association of Securities Dealers Automated Quotation System ("NASDAQ"). - ------------------------------------------------------------------------------------------------------------------------------- ING PARTNERS, INC. 151 Farmington Avenue, Hartford, CT 06156-8962 - ------------------------------------------------------------------------------------------------------------------------------- Seeks capital appreciation. Invests primarily (at least 80% ING BARON SMALL CAP GROWTH PORTFOLIO (Service Class) of total assets under normal circumstances) in securities INVESTMENT ADVISER: ING Life Insurance and Annuity Company of smaller companies with market values under $2.5 billion INVESTMENT SUBADVISER: Bamco, Inc. as measured at the time of purchase. - -------------------------------------------------------------------------------------------------------------------------------
B8 AccessOne - 134794
- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING FUNDAMENTAL RESEARCH PORTFOLIO (Service Class) Seeks to maximize total return through investments in a INVESTMENT ADVISER: ING Life Insurance and Annuity Company diversified portfolio of common stocks and securities INVESTMENT SUBADVISER: ING Investment Management Co. convertible into common stock. Prior to July 5, 2005, invests at least 80% of assets in stocks included in the S&P 500 Index. Effective July 5, 2005, will invest at least 65% of total assets in common stocks and securities convertible into common stocks. May invest principally in common stocks having significant potential for capital appreciation emphasizing stocks of larger companies. May also invest a portion of assets in stocks of mid-sized companies, and up to 25% of assets in stocks of foreign issuers, depending upon market conditions. May also invest in derivative instruments. - ------------------------------------------------------------------------------------------------------------------------------- ING JPMORGAN FLEMING INTERNATIONAL PORTFOLIO Seeks long-term growth of capital. Invests primarily (at (Service Class) least 65% of total assets) in the equity securities of INVESTMENT ADVISER: ING Life Insurance and Annuity Company foreign companies that the subadviser believes have high INVESTMENT SUBADVISER: J.P. Morgan Fleming Asset Management growth potential. Will normally invest in securities of at (London) Ltd. least three different countries other than the U.S. and will invest in both developed and developing markets. - ------------------------------------------------------------------------------------------------------------------------------- ING OPPENHEIMER GLOBAL PORTFOLIO (Service Class) Seeks capital appreciation. Invests mainly in common stocks INVESTMENT ADVISER: ING Life Insurance and Annuity Company of companies in the U.S. and foreign countries. Can invest INVESTMENT SUBADVISER: OppenheimerFund, Inc. without limit in foreign securities in any country, including countries with emerging markets. Currently emphasizes investments in developed markets such as the United States, Western European countries and Japan. May invest in companies of any size, but currently focuses its investments in mid- and large-cap companies. Normally will invest in at least three countries (one of which may be the United States). - ------------------------------------------------------------------------------------------------------------------------------- ING SALOMON BROTHERS AGGRESSIVE GROWTH PORTFOLIO Seeks long-term growth of capital. Invests primarily (at (Service Class) least 80% of net assets under normal circumstances) in INVESTMENT ADVISER: ING Life Insurance and Annuity Company common stocks and related securities, such as preferred INVESTMENT SUBADVISER: Salomon Brothers Asset Management stock, convertible securities and depositary receipts, of Inc. emerging growth companies. May invest in foreign securities (including emerging market securities). - ------------------------------------------------------------------------------------------------------------------------------- Seeks long-term growth of capital and future income. Under ING UBS U.S. LARGE CAP EQUITY PORTFOLIO normal circumstances, invests at least 80% of net assets (Service Class) (plus borrowings for investment purposes, if any) in equity INVESTMENT ADVISER: ING Life Insurance and Annuity Company securities of U.S. large capitalization companies. INVESTMENT SUBADVISER: UBS Global Asset Management Investments in equity securities may include (Americas) Inc. dividend-paying securities, common stock and preferred stock. - ------------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN COMSTOCK PORTFOLIO (Service Class) Seeks capital growth and income. Invests in a portfolio of INVESTMENT ADVISER: ING Life Insurance and Annuity Company equity securities, including common stocks, preferred INVESTMENT SUBADVISER: Van Kampen stocks and securities convertible into common and preferred stocks. May invest up to 25% of total assets in securities of foreign issuers and may purchase and sell certain derivative instruments, such as options, futures and options on futures, for various portfolio management purposes. - -------------------------------------------------------------------------------------------------------------------------------
B9 AccessOne - 134794
- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING VAN KAMPEN EQUITY AND INCOME PORTFOLIO (Service Class) Seeks total return, consisting of long-term capital INVESTMENT ADVISER: ING Life Insurance and Annuity Company appreciation and current income. Normally invests at least INVESTMENT SUBADVISER: Van Kampen 80% of net assets (plus any borrowings for investment purposes) in equity and income securities at the time of investment. Normally invests at least 65% of assets in income producing equity instruments (including common stocks, preferred stocks and convertible securities) and investment grade quality debt securities. May invest up to 25% of total assets in securities of foreign issuers. May purchase and sell certain derivative instruments, such as options, futures contracts, and options on futures contracts, for various portfolio management purposes, including to earn income, to facilitate portfolio management and to mitigate risks. - ------------------------------------------------------------------------------------------------------------------------------- ING VARIABLE INSURANCE TRUST 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258 - ------------------------------------------------------------------------------------------------------------------------------- ING VP GLOBAL EQUITY DIVIDEND PORTFOLIO Seeks growth of capital with dividend income as a secondary (formerly ING VP Worldwide Growth Portfolio) consideration. Normally invests at least 80% of assets in INVESTMENT ADVISER: ING Investments, LLC equity securities of dividend paying companies. At least INVESTMENT SUBADVISER: ING Investment Management Co. 65% of assets will be invested in equity securities of issuers in at least three countries, one of which may be the U.S., with at least 75% of total assets in common and preferred stocks, warrants and convertible securities. May invest in companies located in countries with emerging securities markets when the fund's subadviser believes they present attractive investment opportunities. - ------------------------------------------------------------------------------------------------------------------------------- ING VARIABLE PORTFOLIOS, INC. 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258 - ------------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS LARGECAP PORTFOLIO (Class S) Seeks to outperform the total return performance of the INVESTMENT ADVISER: ING Investments, LLC Standard & Poor's 500 Composite Stock Price Index (S&P 500 INVESTMENT SUBADVISER: ING Investment Index), while maintaining a market level of risk. Invests Management Co., at least 80% of assets in stocks included in the S&P 500 Index. The subadviser's objective is to overweight those stocks in the S&P 500 Index that it believes will outperform the index and underweight (or avoid altogether) those stocks it believes will underperform the index. May invest in derivatives. - ------------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS MIDCAP PORTFOLIO (Class S) Seeks to outperform the total return performance of the Standard & Poor's MidCap 400 Index (S&P MidCap 400 Index), INVESTMENT ADVISOR: ING Investments, LLC while maintaining a market level of risk. Invests at least INVESTMENT SUBADVISER: ING Investment Management Co. 80% of assets in stocks included in the S&P MidCap 400 Index. The subadviser's objective is to overweight those stocks in the S&P MidCap 400 Index that it believes will outperform the index and underweight (or avoid altogether) those stocks that it believes will underperform the index. May invest in derivatives. - -------------------------------------------------------------------------------------------------------------------------------
B10 AccessOne - 134794
- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- ING VP INDEX PLUS SMALLCAP PORTFOLIO (Class S) Seeks to outperform the total return performance of the Standard & Poor's SmallCap 600 Index (S&P 600 Index), while INVESTMENT ADVISOR: ING Investments, LLC maintaining a market level of risk. Invests at least 80% INVESTMENT SUBADVISER: ING Investment Management Co. of assets in stocks included in the S&P 600 Index. The subadviser's objective is to overweight those stocks in the S&P 600 Index that it believes will outperform the index and underweight (or avoid altogether) those stocks that it believes will underperform the index. May invest in derivatives. - ------------------------------------------------------------------------------------------------------------------------------- ING VARIABLE PRODUCTS TRUST 7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258 - ------------------------------------------------------------------------------------------------------------------------------- ING VP FINANCIAL SERVICES PORTFOLIO (Class S) Seeks long-term capital appreciation. Under normal conditions, invests at least 80% of assets in equity INVESTMENT ADVISER: ING Investments, LLC securities and equity equivalent securities of companies INVESTMENT SUBADVISER: ING Investment Management Co. principally engaged in the financial services industry. Equity securities in which the Portfolio invests are normally common stocks, but may also include preferred stocks, warrants and convertible securities. May invest in initial public offerings. - ------------------------------------------------------------------------------------------------------------------------------- ING VP SMALLCAP OPPORTUNITIES PORTFOLIO (Class S) Seeks long-term capital appreciation. Normally invests at INVESTMENT ADVISER: ING Investments, LLC least 80% of assets in the common stock of smaller, INVESTMENT SUBADVISER: ING Investment Management Co. lesser-known U.S. companies that the sub-adviser believes have above average prospects for growth. For this Portfolio, smaller companies are those with market capitalizations that fall within the range of companies in the Russell 2000 Growth Index. - ------------------------------------------------------------------------------------------------------------------------------- ING VP INTERMEDIATE BOND PORTFOLIO - ------------------------------------------------------------------------------------------------------------------------------- ING VP INTERMEDIATE BOND PORTFOLIO (Class S) Seeks to maximize total return consistent with reasonable (formerly ING VP Bond Portfolio) risk, through investment in a diversified portfolio INVESTMENT ADVISER: ING Investments, LLC consisting primarily of debt securities. It is anticipated INVESTMENT SUBADVISER: ING Investment that capital appreciation and investment income will both Management Co., be major factors in achieving total return. Under normal market conditions, the Portfolio invests at least 80% of its assets in a portfolio of bonds, including but not limited to corporate, government and mortgage bonds, which, at the time of investment, are rated investment grade or have an equivalent rating by a nationally recognized statistical rating organization, or of comparable quality if unrated. May also invest in: preferred stocks; high quality money market instruments; municipal bonds; debt securities of foreign issuers; mortgage- and asset-backed securities; and options and futures contracts involving securities, securities indices and interest rates. Although the portfolio may invest in high yield debt securities rated below investment grade, it seeks to maintain a minimum average portfolio quality of at least investment grade. - -------------------------------------------------------------------------------------------------------------------------------
B11 AccessOne - 134794
- ------------------------------------------------------------------------------------------------------------------------------- FUND NAME AND INVESTMENT ADVISER/SUBADVISER INVESTMENT OBJECTIVE - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS 11 Greenway Plaza, Suite 100, Houston, TX 77046-1173 - ------------------------------------------------------------------------------------------------------------------------------- AIM V.I. LEISURE FUND (Series I) Seeks capital growth. Normally invests at least 80% of net (formerly INVESCO VIF - Leisure Fund) assets in the equity securities and equity-related instruments of companies engaged in the design, production, INVESTMENT ADVISER: A I M Advisors, Inc. and distribution of products related to the leisure activities. - ------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VARIABLE INSURANCE PRODUCTS 82 Devonshire Street, Boston, MA 02109 - ------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND PORTFOLIO (Service Class 2) Seeks long-term capital appreciation. Normally invests INVESTMENT ADVISER: Fidelity Management & Research Co. primarily in common stocks of companies whose value the INVESTMENT SUBADVISER: FMR Co., Inc. Portfolio's investment adviser believes is not fully recognized by the public. - ------------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO Seeks reasonable income. Also considers the potential for (Service Class 2) capital appreciation. Seeks to achieve a yield which INVESTMENT ADVISER: Fidelity Management & Research Co. exceeds the composite yield on the securities comprising INVESTMENT SUBADVISER: FMR Co., Inc. the Standard & Poor's 500(SM) Index. Normally invests at least 80% of total assets in income-producing equity securities (which tends to lead to investments in large cap "value" stocks). - ------------------------------------------------------------------------------------------------------------------------------- LIBERTY VARIABLE INSURANCE TRUST 600 Atlantic Avenue, Boston, MA 02210 - ------------------------------------------------------------------------------------------------------------------------------- COLONIAL SMALL CAP VALUE FUND (Class B) The Fund seeks long-term growth by investing primarily in INVESTMENT ADVISER: Columbia Management Advisers, Inc. smaller capitalization (small-cap) equities. - ------------------------------------------------------------------------------------------------------------------------------- PROFUNDS VP 3435 Stelzer Road, Suite 1000, P.O. Box 182100, Columbus, OH 43218-2000 - ------------------------------------------------------------------------------------------------------------------------------- PROFUND VP BULL Seeks daily investment results, before fees and expenses, INVESTMENT ADVISER: ProFund Advisors LLC that correspond to the daily performance of the S&P 500 Index. - ------------------------------------------------------------------------------------------------------------------------------- PROFUND VP EUROPE 30 Seeks daily investment results, before fees and expenses, INVESTMENT ADVISER: ProFund Advisors LLC that correspond to the daily performance of the ProFunds Europe 30 Index. - ------------------------------------------------------------------------------------------------------------------------------- PROFUND VP RISING RATES OPPORTUNITY Seeks daily investment results, before fees and expenses, INVESTMENT ADVISER: ProFund Advisors LLC that correspond to one and one-quarter times (125%) the inverse (opposite) of the daily price movement of the most recently issued 30-year U.S. Treasury Bond ("Long Bond"). - ------------------------------------------------------------------------------------------------------------------------------- PROFUND VP SMALL-CAP Seeks daily investment results, before fees and expenses, INVESTMENT ADVISER: ProFund Advisors LLC that correspond to the daily performance of the Russell 2000 Index. - -------------------------------------------------------------------------------------------------------------------------------
B12 AccessOne - 134794 THE FOLLOWING PORTFOLIOS ARE WITHIN THE CURRENT GROUP OF ING PORTFOLIOS INCLUDED IN ONE OR MORE OF THE LIFESTYLE PORTFOLIOS: ING Alliance Mid Cap Growth Portfolio ING JPMorgan Fleming International Portfolio ING JPMorgan Value Opportunities Portfolio ING Julius Baer Foreign Portfolio ING Legg Mason Value Portfolio ING Liquid Assets Portfolio ING PIMCO Core Bond Portfolio ING PIMCO High Yield Portfolio ING Pioneer Mid Cap Value Portfolio ING Salomon Brothers Aggressive Growth Portfolio ING Salomon Brothers All Cap Portfolio ING Salomon Brothers Investors Portfolio ING Van Kampen Comstock Portfolio ING Van Kampen Real Estate Portfolio ING VP High Yield Bond Portfolio ING VP Index Plus LargeCap Portfolio ING VP Index Plus MidCap Portfolio ING VP Index Plus SmallCap Portfolio ING VP Intermediate Bond Portfolio ING VP Small Company Portfolio THE FOLLOWING PORTFOLIOS ARE THOSE WITHIN THE GROUP OF ING PORTFOLIOS THAT MAY BE INCLUDED IN ONE OR MORE OF THE ING LIFESTYLE PORTFOLIOS: ING AIM Mid Cap Growth Portfolio ING Alliance Mid Cap Growth Portfolio ING American Century Large Company Value Portfolio ING American Century Select Portfolio ING Capital Guardian Managed Global Portfolio ING Capital Guardian Small/Mid Cap Portfolio ING Capital Guardian U.S. Equities Portfolio ING Eagle Asset Capital Appreciation Portfolio ING Evergreen Omega Portfolio ING FMR(SM) Diversified Mid Cap Portfolio ING FMR(SM) Earnings Growth Portfolio ING Fundamental Research Portfolio ING International Portfolio ING Janus Contrarian Portfolio ING Jennison Equity Opportunities Portfolio ING JPMorgan Emerging Markets Equity Portfolio ING JPMorgan Fleming International Portfolio ING JPMorgan Mid Cap Value Portfolio ING JPMorgan Small Cap Equity Portfolio ING JPMorgan Value Opportunities Portfolio ING Julius Baer Foreign Portfolio ING Legg Mason Value Portfolio ING Liquid Asset Portfolio ING Marsico Growth Portfolio ING Marsico International Opportunities Portfolio ING Mercury Focus Value Portfolio ING Mercury Large Cap Growth Portfolio ING MFS Capital Opportunities Portfolio ING MFS Mid Cap Growth Portfolio ING MFS Total Return Portfolio ING OpCap Balanced Value Portfolio ING Oppenheimer Global Portfolio ING Oppenheimer Main Street Portfolio(R) ING Oppenheimer Strategic Income Portfolio ING PIMCO Core Bond Portfolio ING PIMCO High Yield Portfolio ING Pioneer Fund Portfolio ING Pioneer Mid Cap Value Portfolio ING Salomon Brothers Aggressive Growth Portfolio ING Salomon Brothers All Cap Portfolio ING Salomon Brothers Investors Portfolio ING T. Rowe Price Capital Appreciation Portfolio ING T. Rowe Price Diversified Mid Cap Growth Portfolio ING T. Rowe Price Equity Income Portfolio ING T. Rowe Price Growth Equity Portfolio ING UBS U.S. Large Cap Equity Portfolio ING Van Kampen Comstock Portfolio ING Van Kampen Equity and Income Portfolio ING Van Kampen Equity Growth Portfolio ING Van Kampen Global Franchise Portfolio ING Van Kampen Growth and Income Portfolio ING Van Kampen Real Estate Portfolio ING VP Balanced Portfolio ING VP Growth and Income Portfolio ING VP Growth Portfolio ING VP High Yield Bond Portfolio ING VP Index Plus LargeCap Portfolio ING VP Index Plus MidCap Portfolio ING VP Index Plus SmallCap Portfolio ING VP Intermediate Bond Portfolio ING VP International Equity Portfolio ING VP MidCap Opportunities Portfolio ING VP Real Estate Portfolio ING VP Small Company Portfolio ING VP SmallCap Opportunities Portfolio ING VP Value Opportunity Portfolio THE PROSPECTUS FOR THE ING LIFESTYLE PORTFOLIO CONTAINS INFORMATION ABOUT THE UNDERLYING PORTFOLIOS INCLUDED IN THE ING LIFESTYLE PORTFOLIO. B13 AccessOne - 134794 - -------------------------------------------------------------------------------- APPENDIX C - -------------------------------------------------------------------------------- FIXED ACCOUNT I Fixed Account I ("Fixed Account") is an optional fixed interest allocation offered during the accumulation phase of your variable annuity contract between you and ING USA Annuity and Life Insurance Company ("ING USA," the "Company," "we" or "our"). The Fixed Account, which is a segregated asset account of ING USA, provides a means for you to invest on a tax-deferred basis and earn a guaranteed interest for guaranteed interest periods (Fixed Interest Allocation(s)). We will credit your Fixed Interest Allocation(s) with a fixed rate of interest. We currently offer Fixed Interest Allocations with guaranteed interest periods of 5, 7 and 10 years. In addition, we may offer DCA Fixed Interest Allocations, which are 6-month and 1-year Fixed Interest Allocations available exclusively in connection with our dollar cost averaging program. We may offer additional guaranteed interest periods in some or all states, may not offer all guaranteed interest periods on all contracts and the rates for a given guaranteed interest period may vary among contracts. We set the interest rates periodically. We may credit a different interest rate for each interest period. The interest you earn in the Fixed Account as well as your principal is guaranteed by ING USA, as long as you do not take your money out before the maturity date for the applicable interest period. If you take your money out from a Fixed Interest Allocation more than 30 days before the applicable maturity date, we will apply a market value adjustment ("Market Value Adjustment"). A Market Value Adjustment could increase or decrease your contract value and/or the amount you take out. A surrender charge may also apply to withdrawals from your contract. You bear the risk that you may receive less than your principal because of the Market Value Adjustment. For contracts sold in some states, not all Fixed Interest Allocations are available. You have a right to return a contract for a refund as described in the prospectus. THE FIXED ACCOUNT You may allocate premium payments and transfer your Contract value to the guaranteed interest periods of the Fixed Account during the accumulation period as described in the prospectus. Every time you allocate money to the Fixed Account, we set up a Fixed Interest Allocation for the guaranteed interest period you select. We will credit your Fixed Interest Allocation with a guaranteed interest rate for the interest period you select, so long as you do not withdraw money from that Fixed Interest Allocation before the end of the guaranteed interest period. Each guaranteed interest period ends on its maturity date which is the last day of the month in which the interest period is scheduled to expire. Your Contract value in the Fixed Account is the sum of your Fixed Interest Allocations and the interest credited as adjusted for any withdrawals, transfers or other charges we may impose, including any Market Value Adjustment. Your Fixed Interest Allocation will be credited with the guaranteed interest rate in effect for the guaranteed interest period you selected when we receive and accept your premium or reallocation of Contract value. We will credit interest daily at a rate that yields the quoted guaranteed interest rate. If you surrender, withdraw, transfer or annuitize your investment in a Fixed Interest Allocation more than 30 days before the end of the guaranteed interest period, we will apply a Market Value Adjustment to the transaction. A Market Value Adjustment could increase or decrease the amount you surrender, withdraw, transfer or annuitize, depending on current interest rates at the time of the transaction. You bear the risk that you may receive less than your principal because of the Market Value Adjustment. GUARANTEED INTEREST RATES Each Fixed Interest Allocation will have an interest rate that is guaranteed as long as you do not take your money out until its maturity date. We do not have a specific formula for establishing the guaranteed interest rates for the different guaranteed interest periods. We determine guaranteed interest rates at our sole discretion. We cannot predict the level of future interest rates. For more information see the prospectus for the Fixed Account. C1 AccessOne - 134794 TRANSFERS FROM A FIXED INTEREST ALLOCATION You may transfer your Contract value in a Fixed Interest Allocation to one or more new Fixed Interest Allocations with new guaranteed interest periods, or to any of the subaccounts of ING USA's Separate Account B as described in the prospectus on the maturity date of a guaranteed interest period. The minimum amount that you can transfer to or from any Fixed Interest Allocation is $100. Transfers from a Fixed Interest Allocation may be subject to a Market Value Adjustment. If you have a special Fixed Interest Allocation that was offered exclusively with our dollar cost averaging program, cancelling dollar cost averaging will cause a transfer of the entire Contract value in such Fixed Interest Allocation to the Liquid Asset subaccount, and such a transfer will be subject to a Market Value Adjustment. Please be aware that the benefit we pay under certain optional benefit riders will be adjusted by any transfers you make to and from the Fixed Interest Allocations during specified periods while the rider is in effect. See "Optional Riders" in the prospectus. WITHDRAWALS FROM A FIXED INTEREST ALLOCATION During the accumulation phase, you may withdraw a portion of your Contract value in any Fixed Interest Allocation. You may make systematic withdrawals of only the interest earned during the prior month, quarter or year, depending on the frequency chosen, from a Fixed Interest Allocation under our systematic withdrawal option. A withdrawal from a Fixed Interest Allocation may be subject to a Market Value Adjustment and a contract surrender charge. Be aware that withdrawals may have federal income tax consequences, including a 10% penalty tax, as well as state income tax consequences. Please be aware that the benefit we pay under any of the optional benefit riders will be reduced by any withdrawals you made from the Fixed Interest Allocations during the period while the rider is in effect. See "Optional Riders" in the prospectus. MARKET VALUE ADJUSTMENT A Market Value Adjustment may decrease, increase or have no effect on your Contract value. We will apply a Market Value Adjustment (i) whenever you withdraw or transfer money from a Fixed Interest Allocation (unless made within 30 days before the maturity date of the applicable guaranteed interest period, or under the systematic withdrawal or dollar cost averaging program) and (ii) if on the annuity start date a guaranteed interest period for any Fixed Interest Allocation does not end on or within 30 days of the annuity start date. A Market Value Adjustment may be positive, negative or result in no change. In general, if interest rates are rising, you bear the risk that any Market Value Adjustment will likely be negative and reduce your Contract value. On the other hand, if interest rates are falling, it is more likely that you will receive a positive Market Value Adjustment that increases your Contract value. In the event of a full surrender, transfer or annuitization from a Fixed Interest Allocation, we will add or subtract any Market Value Adjustment from the amount surrendered, transferred or annuitized. In the event of a partial withdrawal, transfer or annuitization, we will add or subtract any Market Value Adjustment from the total amount withdrawn, transferred or annuitized in order to provide the amount requested. If a negative Market Value Adjustment exceeds your Contract value in the Fixed Interest Allocation, we will consider your request to be a full surrender, transfer or annuitization of the Fixed Interest Allocation. CONTRACT VALUE IN THE FIXED INTEREST ALLOCATIONS On the contract date, the Contract value in any Fixed Interest Allocation in which you are invested is equal to the portion of the initial premium paid and designated for allocation to the Fixed Interest Allocation. On each business day after the contract date, we calculate the amount of Contract value in each Fixed Interest Allocation as follows: C2 AccessOne - 134794 (1) We take the Contract value in the Fixed Interest Allocation at the end of the preceding business day. (2) We credit a daily rate of interest on (1) at the guaranteed rate since the preceding business day. (3) We add (1) and (2). (4) We subtract from (3) any transfers from that Fixed Interest Allocation. (5) We subtract from (4) any withdrawals, and then subtract any contract fees (including any rider charges) and premium taxes. Additional premium payments and transfers allocated to the Fixed Account will be placed in a new Fixed Interest Allocation. The Contract value on the date of allocation will be the amount allocated. Several examples which illustrate how the Market Value Adjustment works are included in the prospectus for the Fixed Account. CASH SURRENDER VALUE The cash surrender value is the amount you receive when you surrender the Contract. The cash surrender value of amounts allocated to the Fixed Account will fluctuate daily based on the interest credited to Fixed Interest Allocations, any Market Value Adjustment, and any surrender charge. We do not guarantee any minimum cash surrender value. On any date during the accumulation phase, we calculate the cash surrender value as follows: we start with your Contract value, then we adjust for any Market Value Adjustment, and then we deduct any surrender charge, any charge for premium taxes, the annual contract administrative fee (unless waived), and any optional benefit rider charge, and any other charges incurred but not yet deducted. DOLLAR COST AVERAGING FROM FIXED INTEREST ALLOCATIONS You may elect to participate in our dollar cost averaging program if you have at least $1,200 of Contract value in Fixed Account Interest Allocations with a guaranteed interest period of 1 year or less. The Fixed Interest Allocations serve as the source accounts from which we will, on a monthly basis, automatically transfer a set dollar amount of money to other Fixed Interest Allocations or contract investment portfolio subaccounts selected by you. The dollar cost averaging program is designed to lessen the impact of market fluctuation on your investment. Since we transfer the same dollar amount to subaccounts each month, more units of a subaccount are purchased if the value of its unit is low and fewer units are purchased if the value of its unit is high. Therefore, a lower than average value per unit may be achieved over the long term. However, we cannot guarantee this. When you elect the dollar cost averaging program, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels. You elect the dollar amount you want transferred under this program. Each monthly transfer must be at least $100. You may change the transfer amount once each contract year. Transfers from a Fixed Interest Allocation under the dollar cost averaging program are not subject to a Market Value Adjustment. We may in the future offer additional subaccounts or withdraw any subaccount or Fixed Interest Allocation to or from the dollar cost averaging program or otherwise modify, suspend or terminate this program. Of course, such change will not affect any dollar cost averaging programs in operation at the time. SUSPENSION OF PAYMENTS We have the right to delay payment of amounts from a Fixed Interest Allocation for up to 6 months. C3 AccessOne - 134794 MORE INFORMATION See the prospectus for Fixed Account I. C4 AccessOne - 134794 - -------------------------------------------------------------------------------- APPENDIX D - -------------------------------------------------------------------------------- FIXED INTEREST DIVISION A Fixed Interest Division option is available through the group and individual deferred variable annuity contracts offered by ING USA Annuity and Life Insurance Company,. The Fixed Interest Division is part of the ING USA General Account. Interests in the Fixed Interest Division have not been registered under the Securities Act of 1933, and neither the Fixed Interest Division nor the General Account is registered under the Investment Company Act of 1940. Interests in the Fixed Interest Division are offered in certain states through an Offering Brochure, dated April 29, 2005. The Fixed Interest Division is different from the Fixed Account which is described in the prospectus but which is not available in your state. If you are unsure whether the Fixed Account is available in your state, please contact our Customer Service Center at (800) 366-0066. When reading through the Prospectus, the Fixed Interest Division should be counted among the various investment options available for the allocation of your premiums, in lieu of the Fixed Account. The Fixed Interest Division may not be available in some states. Some restrictions may apply. You will find more complete information relating to the Fixed Interest Division in the Offering Brochure. Please read the Offering Brochure carefully before you invest in the Fixed Interest Division. D1 AccessOne - 134794 ING [LOGO] ING USA ANNUITY AND LIFE INSURANCE COMPANY ING USA Annuity and Life Insurance Company is a stock company domiciled in Iowa. AccessOne - 134794 04/29/2005 PART B STATEMENT OF ADDITIONAL INFORMATION GOLDENSELECT ACCESS ONE Deferred Combination Variable and Fixed Annuity Contract Issued by SEPARATE ACCOUNT B of ING USA ANNUITY AND LIFE INSURANCE COMPANY This Statement of Additional Information is not a prospectus. The information contained herein should be read in conjunction with the Prospectus for the ING USA Annuity and Life Insurance Company Deferred Variable Annuity Contract, which is referred to herein. The Prospectus sets forth information that a prospective investor ought to know before investing. For a copy of the Prospectus, send a written request to ING USA Annuity and Life Insurance Company, Customer Service Center, P.O. Box 9271 Des Moines, IA 50306-9271 or telephone 1-800-366-0066. DATE OF PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION: APRIL 29, 2005 TABLE OF CONTENTS ITEM PAGE Introduction...................................................................1 Description of ING USA Annuity and Life Insurance Company......................1 Separate Account B of ING USA Annuity and Life Insurance Company...............1 Safekeeping of Assets..........................................................1 The Administrator..............................................................1 Independent Registered Public Accounting Firm..................................1 Distribution of Contracts......................................................1 IRA Partial Withdrawal Option..................................................3 Other Information..............................................................3 Consolidated Financial Statements of ING USA Annuity and Life Insurance Company.........................................................4 Financial Statements of Separate Account B.....................................4 i INTRODUCTION This Statement of Additional Information provides background information regarding Separate Account B. DESCRIPTION OF ING USA ANNUITY AND LIFE INSURANCE COMPANY ING USA Annuity and Life Insurance Company ("ING USA") is an Iowa stock life insurance company, which was originally incorporated in Minnesota on January 2, 1973. ING USA is a wholly owned subsidiary of Lion Connecticut Holdings Inc. ("Lion Connecticut"), which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands. ING USA is authorized to sell insurance and annuities in all states, except New York and the District of Columbia. ING USA's consolidated financial statements appear in the Statement of Additional Information. As of December 31, 2004, ING USA had approximately $2,774.5 million in stockholder's equity and approximately $52.4 billion in total assets, including approximately $25 billion of separate account assets. ING USA is authorized to do business in all jurisdictions except New York. ING USA offers variable insurance products. Reliastar Life Insurance Company of New York ("RLNY"), an affiliate of ING USA, is licensed to do variable annuity business in the state of New York. SEPARATE ACCOUNT B OF ING USA ANNUITY AND LIFE INSURANCE COMPANY Separate Account B is a separate account established by the Company for the purpose of funding variable annuity contracts issued by the Company. The separate account is registered with the Securities and Exchange Commission ("SEC") as a unit investment trust under the Investment Company act of 1940, as amended. Purchase payments to accounts under the contract may be allocated to one or more of the subaccounts. Each subaccount invests in the shares of only one of the funds offered under the contracts. We may make additions to, deletions from or substitutions of available investment options as permitted by law and subject to the conditions of the contract. The availability of the funds is subject to applicable regulatory authorization. Not all funds are available in all jurisdictions or under all contracts. SAFEKEEPING OF ASSETS ING USA acts as its own custodian for Separate Account B. THE ADMINISTRATOR Effective January 1, 1997, Equitable Life Insurance Company of Iowa ("Equitable Life") and ING USA became parties to a service agreement pursuant to which Equitable Life agreed to provide certain accounting, actuarial, tax, underwriting, sales, management and other services to ING USA. Expenses incurred by Equitable Life in relation to this service agreement were reimbursed by ING USA on an allocated cost basis. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP, Suite 2800, 600 Peachtree Street, Atlanta GA 30308, an Independent Registered Public Accounting Firm, perform annual audits of ING USA and Separate Account B. DISTRIBUTION OF CONTRACTS The offering of contracts under the prospectus associated with this Statement of Additional Information is continuous. Directed Services, Inc. ("DSI"), an affiliate of ING USA, acts as the principal underwriter (as defined in the Securities Act of 1933 and the Investment Company Act of 1940, as amended) of the variable insurance products (the "variable insurance products") issued by ING USA. The contracts are distributed through registered representatives of other 1 broker-dealers who have entered into selling agreements with DSI. For the years ended 2004, 2003 and 2002 commissions paid by ING USA, including amounts paid by its affiliated Company, RLNY, to DSI aggregated $374,955,000, $270,633,000, and $287,208,000, respectively. All commissions received by the distributor were passed through to the broker-dealers who sold the contracts. DSI is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478. Under a management services agreement, last amended in 1995, ING USA provides to DSI certain of its personnel to perform management, administrative and clerical services and the use of certain facilities. ING USA charges DSI for such expenses and all other general and administrative costs, first on the basis of direct charges when identifiable, and the remainder allocated based on the estimated amount of time spent by ING USA's employees on behalf of DSI. In the opinion of management, this method of cost allocation is reasonable. This fee, calculated as a percentage of average assets in the variable separate accounts, was $36,570,000 $27,898,000, and $25,914,000, for the years ended 2004, 2003, and 2002, respectively. PUBLISHED RATINGS From time to time, the rating of ING USA as an insurance company by A.M. Best may be referred to in advertisements or in reports to contract owners. Each year the A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best's Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. Best's ratings range from A+ + to F. An A++ and A+ ratings mean, in the opinion of A.M. Best, that the insurer has demonstrated the strongest ability to meet its respective policyholder and other contractual obligations. ACCUMULATION UNIT VALUE The calculation of the Accumulation Unit Value ("AUV") is discussed in the prospectus for the Contracts under Condensed Financial Information. Note that in your Contract, accumulation unit value is referred to as the Index of Investment Experience. The following illustrations show a calculation of a new AUV and the purchase of Units (using hypothetical examples). Note that the examples below are calculated for a Contract issued with the death benefit option with the highest mortality and expense risk charge. The mortality and expense risk charge associated with other death benefit options are lower than that used in the examples and would result in higher AUV's or contract values. ILLUSTRATION OF CALCULATION OF AUV EXAMPLE 1. 1. AUV, beginning of period $10.00 2. Value of securities, beginning of period $10.00 3. Change in value of securities $0.10 4. Gross investment return (3) divided by (2) 0.01 5. Less daily mortality and expense charge 0.00004280 6. Less asset based administrative charge 0.00000411 7. Net investment return (4) minus (5) minus (6) 0.009953092 8. Net investment factor (1.000000) plus (7) 1.009953092 9. AUV, end of period (1) multiplied by (8) $10.09953092 2 ILLUSTRATION OF PURCHASE OF UNITS (ASSUMING NO STATE PREMIUM TAX) EXAMPLE 2. 1. Initial premium payment $1,000 2. AUV on effective date of purchase (see Example 1) $10.00 3. Number of units purchased (1) divided by (2) 100 4. AUV for valuation date following purchase (see Example 1) $10.09953092 5. Contract Value in account for valuation date following purchase (3) multiplied by (4) $1,009.95 IRA PARTIAL WITHDRAWAL OPTION If the contract owner has an IRA contract and will attain age 70 1/2 in the current calendar year, distributions will be made in accordance with the requirements of Federal tax law. This option is available to assure that the required minimum distributions from qualified plans under the Internal Revenue Code (the "Code") are made. Under the Code, distributions must begin no later than April 1st of the calendar year following the calendar year in which the contract owner attains age 70 1/2. If the required minimum distribution is not withdrawn, there may be a penalty tax in an amount equal to 50% of the difference between the amount required to be withdrawn and the amount actually withdrawn. Even if the IRA Partial Withdrawal Option is not elected, distributions must nonetheless be made in accordance with the requirements of Federal tax law. ING USA notifies the contract owner of these regulations with a letter mailed in the calendar year in which the contract owner reaches age 70 1/2 which explains the IRA Partial Withdrawal Option and supplies an election form. If electing this option, the owner specifies whether the withdrawal amount will be based on a life expectancy calculated on a single life basis (contract owner's life only) or, if the contract owner is married, on a joint life basis (contract owner's and spouse's lives combined). The contract owner selects the payment mode on a monthly, quarterly or annual basis. If the payment mode selected on the election form is more frequent than annually, the payments in the first calendar year in which the option is in effect will be based on the amount of payment modes remaining when ING USA receives the completed election form. ING USA calculates the IRA Partial Withdrawal amount each year based on the minimum distribution rules. We do this by dividing the contract value by the life expectancy. In the first year withdrawals begin, we use the contract value as of the date of the first payment. Thereafter, we use the contract value on December 31st of each year. The life expectancy is recalculated each year. Certain minimum distribution rules govern payouts if the designated beneficiary is other than the contract owner's spouse and the beneficiary is more than ten years younger than the contract owner. OTHER INFORMATION Registration statements have been filed with the SEC under the Securities Act of 1933, as amended, with respect to the Contracts discussed in this Statement of Additional Information. Not all of the information set forth in the registration statements, amendments and exhibits thereto has been included in this Statement of Additional Information. Statements contained in this Statement of Additional Information concerning the content of the Contracts and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, reference should be made to the instruments filed with the SEC. 3 CONSOLIDATED FINANCIAL STATEMENTS OF ING USA ANNUITY AND LIFE INSURANCE COMPANY The audited consolidated financial statements of ING USA Annuity and Life Insurance Company are listed below and are included in this Statement of Additional Information: Report of Independent Registered Public Accounting Firm Audited Consolidated Financial Statements of ING USA Annuity and Life Insurance Company Consolidated Income Statements for the years ended December 31, 2004, 2003 and 2002 Consolidated Balance Sheets as of December 31, 2004 and 2003 Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 2004, 2003 and 2002 Consolidated Statements of Cash Flows for the years ended December 31, 2004, 2003 and 2002 Notes to Consolidated Financial Statements FINANCIAL STATEMENTS OF SEPARATE ACCOUNT B The audited financial statements of Separate Account B are listed below and are included in this Statement of Additional Information: Report of Independent Registered Public Accounting Firm Audited Financial Statements of ING USA Annuity and Life Insurance Company Separate Account B Statement of Assets and Liabilities as of December 31, 2004 Statement of Operations for the year ended December 31, 2004 Statements of Changes in Net Assets for the years ended December 31, 2004 and 2003 Notes to Financial Statements 4 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Index to Financial Statements Page ---- Report of Independent Registered Public Accounting Firm C-2 Financial Statements: Statements of Operations for the years ended December 31, 2004, 2003 and 2002 C-3 Balance Sheets as of December 31, 2004 and 2003 C-4 Statements of Changes in Shareholder's Equity for the years ended December 31, 2004, 2003 and 2002 C-6 Statements of Cash Flows for the years ended December 31, 2004, 2003 and 2002 C-7 Notes to Financial Statements C-9 C-1 Report of Independent Registered Public Accounting Firm The Board of Directors ING USA Annuity and Life Insurance Company We have audited the accompanying balance sheets of ING USA Annuity and Life Insurance Company as of December 31, 2004 and 2003, and the related statements of operations, statements of changes in shareholder's equity, and statements of cash flows for each of the three years in the period ended December 31, 2004. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of ING USA Annuity and Life Insurance Company as of December 31, 2004 and 2003, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2004, in conformity with U.S. generally accepted accounting principles. As discussed in Note 1 to the financial statements, the Company changed the accounting principle for goodwill and other intangible assets effective January 1, 2002 and changed the accounting principle for certain non-traditional long duration contracts and for separate accounts effective January 1, 2004. /s/ Ernst & Young LLP Atlanta, Georgia March 18, 2005 C-2 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Statements of Operations (In millions) Year ended December 31, 2004 2003 2002 ----------------- ----------------- ----------------- Revenue: Net investment income $ 1,023.9 $ 974.6 $ 989.3 Fee income 566.7 397.7 295.7 Premiums 22.8 26.0 36.8 Net realized capital gains (losses) 57.6 106.9 (196.5) Other income 2.8 3.8 16.3 ----------------- ----------------- ----------------- Total revenue 1,673.8 1,509.0 1,141.6 ----------------- ----------------- ----------------- Benefits and expenses: Interest credited and other benefits to contractowners 1,134.0 925.7 848.0 Operating expenses 162.6 162.1 155.1 Amortization of deferred policy acquisition costs and value of business acquired 186.8 347.9 302.0 Interest expense 14.6 15.8 16.9 Other 2.2 1.0 (4.1) ----------------- ----------------- ----------------- Total benefits and expenses 1,500.2 1,452.5 1,317.9 ----------------- ----------------- ----------------- Income (loss) before income taxes and cumulative effect of change in accounting principle 173.6 56.5 (176.3) Income tax expense (benefit) 80.7 (0.8) (60.2) ----------------- ----------------- ----------------- Income (loss) before cumulative effect of change in accounting principle 92.9 57.3 (116.1) Cumulative effect of change in accounting principle, net of tax (1.0) - (1,298.4) ----------------- ----------------- ----------------- Net income (loss) $ 91.9 $ 57.3 $ (1,414.5) ================= ================= =================
The accompanying notes are an integral part of these financial statements. C-3 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Balance Sheets (In millions, except share data) As of December 31, 2004 2003 ----------------- ----------------- Assets Investments: Fixed maturities, available-for-sale, at fair value (amortized cost of $17,045.9 at 2004 and $15,025.0 at 2003) $ 17,489.2 $ 15,538.7 Equity securities, available-for-sale, at fair value (cost of $34.8 at 2004 and $115.2 at 2003) 35.3 120.2 Mortgage loans on real estate 3,851.8 3,388.7 Policy loans 169.0 177.1 Other investments 228.8 60.8 Securities pledged (amortized cost of $1,100.5 at 2004 and $555.5 at 2003) 1,108.6 559.1 ----------------- ----------------- Total investments 22,882.7 19,844.6 Cash and cash equivalents 209.0 65.1 Short-term investments under securities loan agreement 402.8 22.9 Accrued investment income 205.8 185.7 Receivable for securities sold 38.9 11.7 Reinsurance recoverable 1,388.1 651.9 Deferred policy acquisition costs 1,704.1 1,826.7 Value of business acquired 112.2 111.5 Sales inducements to contractowners 514.6 - Due from affiliates 184.3 117.7 Deferred income taxes - 19.4 Other assets 28.4 20.1 Assets held in separate accounts 24,746.7 18,220.1 ----------------- ----------------- Total assets $ 52,417.6 $ 41,097.4 ================= =================
The accompanying notes are an integral part of these financial statements. C-4 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Balance Sheets (In millions, except share data) As of December 31, 2004 2003 ----------------- ----------------- Liabilities and Shareholder's Equity Future policy benefits and claims reserves $ 22,961.0 $ 19,400.5 Notes to affiliates 435.0 85.0 Due to affiliates 43.6 60.7 Payables for securities purchased 35.9 - Payables under securities loan agreement 402.8 22.9 Borrowed money 713.4 534.2 Current income taxes 15.7 19.4 Deferred income taxes 12.6 - Other liabilities 276.4 226.6 Liabilities related to separate accounts 24,746.7 18,220.1 ----------------- ---------------- Total liabilities 49,643.1 38,569.4 ----------------- ---------------- Shareholder's equity Common stock (250,000 shares authorized, issued and outstanding; $10.00 per share value) 2.5 2.5 Additional paid-in capital 4,041.1 3,811.1 Accumulated other comprehensive income 112.7 188.1 Retained earnings (deficit) (1,381.8) (1,473.7) ----------------- ---------------- Total shareholder's equity 2,774.5 2,528.0 ----------------- ---------------- Total liabilities and shareholder's equity $ 52,417.6 $ 41,097.4 ================= ================
The accompanying notes are an integral part of these financial statements. C-5 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Statements of Changes in Shareholder's Equity (In millions) Accumulated Additional Other Retained Total Common Paid-In Comprehensive Earnings Shareholder's Stock Capital Income (Deficit) Equity ------------- --------------- ---------------- -------------- ---------------- Balance at December 31, 2001 Excluding impact of merger $ 2.5 $ 780.4 $ 3.8 $ 31.1 $ 817.8 Impact of merger - 2,493.9 (73.8) (135.2) 2,284.9 ------------- --------------- ---------------- -------------- ---------------- Balance at December 31, 2001 Including impact of merger 2.5 3,274.3 (70.0) (104.1) 3,102.7 Comprehensive loss: Net loss - - - (1,414.5) (1,414.5) Other comprehensive loss net of tax: Net unrealized gain on securities ($202.3 pretax) - - 203.2 - 203.2 ---------------- Comprehensive loss (1,211.3) ---------------- Contribution of capital - 456.3 - - 456.3 Other - (8.2) - - (8.2) ------------- --------------- ---------------- -------------- ---------------- Balance at December 31, 2002 2.5 3,722.4 133.2 (1,518.6) 2,339.5 Comprehensive income: Net income - - - 57.3 57.3 Other comprehensive income net of tax: Net unrealized gain on securities ($82.8 pretax) - - 54.9 - 54.9 ---------------- Comprehensive income 112.2 ---------------- Dividends paid - - - (12.4) (12.4) Contribution of capital - 88.7 - - 88.7 ------------- --------------- ---------------- -------------- ---------------- Balance at December 31, 2003 2.5 3,811.1 188.1 (1,473.7) 2,528.0 Comprehensive income: Net income 91.9 91.9 Other comprehensive loss net of tax: Net unrealized loss on securities (($113.9) pretax) (70.5) (70.5) Minimum pension liability (4.9) (4.9) ---------------- Comprehensive income 16.5 ---------------- Contribution of capital 230.0 230.0 ------------- --------------- ---------------- -------------- ---------------- Balance at December 31, 2004 $ 2.5 4 4,041.1 $ 112.7 $(1,381.8) $ 2,774.5 ============= =============== ================ ============== ================
The accompanying notes are an integral part of these financial statements. C-6 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Statements of Cash Flows (In millions) Year ended December 31, 2004 2003 2002 --------------- --------------- ---------------- Cash Flows from Operating Activities: Net income (loss) $ 91.9 $ 57.3 $ (1,414.5) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Capitalization of deferred policy acquisition costs (688.3) (396.9) (469.5) Amortization of deferred policy acquisition costs and value of business acquired 241.0 252.9 210.8 Net accretion/decretion of discount/premium 139.6 218.2 173.3 Future policy benefits, claims reserves, and interest credited 916.7 1,196.8 926.6 Impairment of goodwill - - 1,314.4 Provision for deferred income taxes 75.5 (1.9) (43.5) Net realized capital (gains) losses (57.3) (110.0) 151.5 Depreciation - - 0.2 Change in: Accrued investment income (20.1) 9.3 (45.4) Accounts receivables and asset accruals (35.5) (2.4) (2.3) Due to/from affiliates (83.7) (68.4) 76.4 Other payables and accruals 77.1 73.1 (219.8) --------------- --------------- ---------------- Net cash provided by operating activities 656.9 1,228.0 658.2 Cash Flows from Investing Activities: Proceeds from the sale, maturity, or redemption of: Fixed maturities, available-for-sale 17,903.6 20,179.8 20,419.3 Equity securities, available-for-sale 106.8 45.7 0.7 Mortgage loans on real estate originated 388.6 561.1 667.6 Short-term investments 2,854.0 15,364.1 8,638.3 Acquisition of: Fixed maturities, available-for-sale (20,553.5) (21,223.3) (24,532.0) Equity securities, available-for-sale (20.2) (16.2) (144.1) Mortgage loans on real estate (856.4) (1,075.5) (782.1) Short-term investments (2,860.6) (15,362.2) (8,580.9) Proceeds from sale of interest in subsidiary - - 27.7 Other investments (152.9) (84.0) 74.1 Other, net 10.8 2.7 10.8 --------------- --------------- ---------------- Net cash used in investing activities (3,179.8) (1,607.8) (4,200.6)
The accompanying notes are an integral part of these financial statements. C-7 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Statements of Cash Flows (In millions) Year ended December 31, 2004 2003 2002 --------------- --------------- ---------------- Cash Flows from Financing Activities: Deposits received for investment contracts 5,474.7 1,475.3 4,826.1 Maturities and withdrawals from investment contracts (2,830.9) (1,676.5) (1,636.3) Reinsurance recapture - 134.5 - Change in reinsurance recoverable (736.2) 25.6 (211.3) Net short-term loans 179.2 210.6 48.6 Intercompany dividends - (12.4) - Intercompany loans 350.0 - - Contribution of capital from Parent 230.0 88.7 456.3 Other - - (8.2) --------------- --------------- ---------------- Net cash provided by financing activities 2,666.8 245.8 3,475.2 --------------- --------------- ---------------- Net increase (decrease) in cash and cash equivalents 143.9 (134.0) (67.2) Cash and cash equivalents, beginning of year 65.1 199.1 266.3 --------------- --------------- ---------------- Cash and cash equivalents, end of year $ 209.0 $ 65.1 $ 199.1 =============== =============== ================ Supplemental cash flow information: Income taxes paid (received), net $ 8.3 $ 53.0 $ (41.7) =============== =============== ================ Interest paid $ 14.2 $ 10.8 $ 13.5 =============== =============== ================
The accompanying notes are an integral part of these financial statements. C-8 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- 1. Organization and Significant Accounting Policies Basis of Presentation ING USA Annuity and Life Insurance Company ("ING USA" or the "Company" as appropriate), a wholly-owned subsidiary of Lion Connecticut Holdings Inc. ("Lion" or "Parent"), is a stock life insurance company organized under the laws of the State of Iowa. Lion is an indirect, wholly-owned subsidiary of ING Groep N.V. ("ING"), a global financial services holding company based in The Netherlands, with American Depository Shares listed on the New York Stock Exchange under the symbol "ING". ING USA is authorized to conduct its insurance business in the District of Columbia and all states except New York. ING USA was domiciled as a life insurance company under the laws of the State of Delaware until December 31, 2003 and has been domiciled as such in Iowa since January 1, 2004. On January 1, 2004 (the "Merger Date"), the Company simultaneously redomesticated from Delaware to Iowa, changed its name from Golden American Life Insurance Company to ING USA Annuity and Life Insurance Company, and merged the following affiliates into the Company: Equitable Life Insurance Company of Iowa ("Equitable Life"), USG Annuity & Life Company ("USG"), and United Life & Annuity Insurance Company ("ULA") (the collectively, "Merger Companies"). Prior to the merger date, ING USA was a wholly-owned subsidiary of Equitable Life. Equitable Life merged its affiliate, Ameribest Life Insurance Company ("AMB"), a life insurance company domiciled in Georgia, into its operations on January 1, 2003. Statement of Financial Accounting Standards ("FAS") No. 141, "Business Combinations", excludes transfers of net assets or exchanges of shares between entities under common control, and notes that certain provisions under Accounting Principles Board ("APB") Opinion No. 16, "Business Combinations", provide a source of guidance for such transactions. In accordance with APB Opinion No. 16, financial information of the combined entity is presented as if the entities had been combined for the full year, and all comparative financial statements are restated and presented as if the entities had previously been combined, in a manner similar to a pooling-of-interests. The Balance Sheets and Statements of Operations give effect to the consolidation transactions as if they had occurred on December 31, 2003 and January 1, 2002, respectively. As of April 1, 2002, ING USA sold First Golden American Life Insurance Company of New York ("First Golden") to its sister company, ReliaStar Life Insurance Company ("ReliaStar"). ReliaStar, the parent of Security-Connecticut Life Insurance Company ("Security-Connecticut"), which in turn is the parent of ReliaStar Life Insurance Company of New York ("RLNY"), merged the First Golden business into RLNY operations and dissolved First Golden at book value for $27.7 in cash and a receivable C-9 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- totaling $0.2 from RLNY. The receivable from RLNY was assumed by Equitable Life, and ultimately by ING USA. The consideration was based on First Golden's statutory-basis book value. RLNY's payable to the Company was assumed by ING USA and subsequently forgiven. ING USA realized a loss of $3.0 related to the sale of First Golden, which was recorded as a capital transaction. Approval for the merger was obtained from the Insurance Departments of the States of New York and Delaware. As of October 1, 2003, RLNY's parent, Security-Connecticut merged with and into its parent, ReliaStar. In accordance with APB Opinion No. 16, RLNY presented combined results of operations including First Golden activity as of the beginning of the year ended December 31, 2002. The first three months of First Golden activity is not reflected in the ING USA's Statement of Operations for the period ended December 31, 2002, as the amounts were not material. Description of Business The Company offers various insurance products including immediate and deferred variable and fixed annuities. The Company's annuity products are distributed by national wirehouses, regional securities firms, independent National Association of Securities Dealers, Inc. ("NASD") firms with licensed registered representatives, banks, life insurance companies with captive agency sales forces, independent insurance agents, independent marketing organizations and the ING broker-dealer network. The Company also offers guaranteed investment contracts ("GICs") and funding agreements marketed by direct sale by home office personnel or through specialty insurance brokers. Historically, the Company has provided interest-sensitive, traditional and variable life insurance, and health insurance. All health insurance is ceded to other insurers and new policies are no longer written. The Company ceased the issuance of life insurance policies in 2001, and all life insurance business is currently in run-off. The Company's primary customers are retail consumers and corporations. Recently Adopted Accounting Standards Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts The Company adopted Statement of Position ("SOP") 03-1, "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts," on January 1, 2004. SOP 03-1 establishes several new accounting and disclosure requirements for certain nontraditional long-duration contracts and for separate accounts including, among other things, a requirement that assets and liabilities of separate account arrangements that do not meet certain criteria be accounted for as general account assets and liabilities, and that the revenue and expenses related to such arrangements be consolidated within the respective line items in the Statements of Operations. In addition, the SOP requires C-10 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- additional liabilities be established for certain guaranteed death and other benefits and for products with certain patterns of cost of insurance charges. In addition, sales inducements provided to contractowners must be recognized on the balance sheet separately from deferred policy acquisition costs and amortized as a component of benefits expense using methodologies and assumptions consistent with those used for amortization of deferred policy acquisition costs. The Company evaluated all requirements of SOP 03-1 and determined that it is affected by the SOP's requirements to establish additional liabilities for certain guaranteed benefits and products with patterns of cost of insurance charges resulting in losses in later policy durations from the insurance benefit function and to defer, amortize, and recognize separately, sales inducements to contractowners. Upon adoption of SOP 03-1 on January 1, 2004, the Company recognized a cumulative effect of a change in accounting principle of $(3.6), before tax or $(2.3), net of $1.3 of income taxes. In addition, requirements for certain separate account arrangements that do not meet the established criteria for separate asset and liability recognition are applicable to the Company, however, the Company's policies on separate account assets and liabilities have historically been, and continue to be, in conformity with the requirements newly established. In the fourth quarter of 2004, the cumulative effect of a change in accounting principle was revised due to the Company's implementation of Technical Practice Aid 6300.05 - 6300.08, "Q&As Related to the Implementation of SOP 03-1, `Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts"' (the "TPA"). The TPA, which was approved in September 2004, provides additional guidance regarding certain implicit assessments that may be used in the testing of the base mortality function on contracts, which is performed to determine whether additional liabilities are required in conjunction with SOP 03-1. In addition, the TPA provides additional guidance surrounding the allowed level of aggregation of additional liabilities determined under SOP 03-1. While the TPA was implemented during the fourth quarter of 2004, the TPA is retroactive to the original implementation date of SOP 03-1, January 1, 2004 and is reported as an adjustment to the SOP 03-1 cumulative effect of change in accounting principle. The adoption of the TPA reduced the Company's cumulative effect of change in accounting principle by $2.0, before tax and decreased quarterly 2004 net income approximately $0.6 in each quarter, for a total decrease of $2.3. The implementation of SOP 03-1 also raised questions regarding the interpretation of the requirements of FAS No. 97 "Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments" ("FAS 97"), concerning when it is appropriate to record an unearned revenue liability related to the insurance benefit function. To clarify its position, the C-11 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Financial Accounting Standards Board ("FASB") issued FASB Staff Position No. FAS 97-1 ("FSP FAS 97-1"), "Situations in Which Paragraphs 17(b) and 20 of FASB Statement No. 97, `Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments,' Permit or Require Accrual of an Unearned Revenue Liability," effective for fiscal periods beginning subsequent to the date the guidance was issued, June 18, 2004. The Company adopted FSP FAS 97-1 on July 1, 2004. The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments In March 2004, the Emerging Issues Task Force ("EITF") reached a final consensus on EITF Issue No. 03-1, "The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments," adopting a three-step impairment model for securities within its scope. The three-step model is applied on a security-by-security basis as follows: Step 1: Determine whether an investment is impaired. An investment is impaired if the fair value of the investment is less than its cost basis. Step 2: Evaluate whether an impairment is other-than-temporary. Step 3: If the impairment is other-than-temporary, recognize an impairment loss equal to the difference between the investment's cost and its fair value. On September 30, 2004, the FASB issued FASB Staff Position No. EITF Issue 03-1-1 ("FSP EITF 03-1-1"), "Effective Date of Paragraphs 10-20 of EITF Issue No. 03-1, `The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments,'" which delayed the EITF Issue No. 03-1 original effective date of July 1, 2004 related to steps two and three of the impairment model introduced. The delay is in effect until a final consensus can be reached on such guidance. Despite the delay of the implementation of steps two and three, other-than-temporary impairments are still to be recognized as required by existing guidance. Earlier consensus reached by the EITF on this issue required that certain quantitative and qualitative disclosures be made for unrealized losses on debt and equity securities that have not been recognized as other-than-temporary impairments. These disclosures were adopted by the Company, effective December 31, 2003, and are included in the Investments footnote. Accounting for Derivative Instruments and Hedging Activities In 2003, the Derivative Implementation Group ("DIG") who was responsible for issuing guidance on behalf of the FASB for implementation of FAS No. 133, "Accounting for Derivative Instruments and Hedging Activities", issued Statement No. 133 Implementation Issue No. B36, "Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate C-12 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Credit Risk Exposures That Are Unrelated or Only Partially Related to the Credit Worthiness of the Obligor Under Those Instruments" ("DIG B36"). Under this interpretation, modified coinsurance and coinsurance with funds withheld reinsurance agreements as well as other types of receivables and payables where interest is determined by reference to a pool of fixed maturity assets or a total return debt index may be determined to contain embedded derivatives that are required to be bifurcated from the host instrument. The Company adopted DIG B36 on October 1, 2003 and has modified coinsurance treaties that are applicable to the guidance. The applicable contracts, however, were determined to generate embedded derivatives with a fair value of zero. Therefore, implementation of DIG B36 did not impact the Company's financial position, results of operations, or cash flows. Variable Interest Entities In January 2003, the FASB issued FASB Interpretation 46, "Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51" ("FIN 46"). In December 2003, the FASB modified FIN 46 to make certain technical corrections and address certain implementation issues that had arisen. FIN 46 provides a new framework for identifying variable interest entities ("VIEs") and determining when a company should include the assets, liabilities, noncontrolling interests and results of activities of a VIE in its consolidated financial statements. In general, a VIE is a corporation, partnership, limited-liability corporation, trust, or any other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. FIN 46 requires a VIE to be consolidated if a party with an ownership, contractual or other financial interest in the VIE (a variable interest holder) is obligated to absorb a majority of the risk of loss from the VIE's activities, is entitled to receive a majority of the VIE's residual returns (if no party absorbs a majority of the VIE's losses), or both. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE's assets, liabilities and noncontrolling interests at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. FIN 46 also requires disclosures about VIEs that the variable interest holder is not required to consolidate but in which it has a significant variable interest. C-13 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The Company holds investments in variable interest entities ("VIEs") in the form of private placement securities, structured securities, securitization transactions and limited partnerships with an aggregate fair value of $7.0 billion as of December 31, 2004. These VIEs are held by the Company for investment purposes. Consolidation of these investments in the Company's financial statements is not required as the Company is not the primary beneficiary for any of these VIEs. Book value as of December 31, 2004 of $6.9 billion represents the maximum exposure to loss except for those structures for which the Company also receives asset management fees. Goodwill Impairment During 2002, the Company adopted FAS No. 142, "Goodwill and Other Intangible Assets". The adoption of this standard resulted in the recognition of an impairment loss of $1,298.4, net of $699.1 of income taxes, related to a prior acquisition, recorded retroactive to the first quarter of 2002. Prior quarters of 2002 were restated accordingly. This impairment loss represented the entire carrying amount of goodwill, net of accumulated amortization. This impairment charge is shown as a change in accounting principle on the 2002 Statement of Operations. Guarantees In November 2002, the FASB issued Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others" ("FIN 45"), to clarify accounting and disclosure requirements relating to a guarantor's issuance of certain types of guarantees, or groups of similar guarantees, even if the likelihood of the guarantor's having to make any payments under the guarantee is remote. The disclosure provisions are effective for financial statements for fiscal years ending after December 15, 2002. For certain guarantees, the interpretation also requires that guarantors recognize a liability equal to the fair value of the guarantee upon its issuance. This initial recognition and measurement provisions are to be applied on a prospective basis to guarantees issued or modified after December 31, 2002. The Company has performed an assessment of its guarantees and believes that all of its guarantees are excluded from the scope of this interpretation. New Accounting Pronouncements In December 2004, the FASB issued FAS No. 123 (revised 2004), "Share-Based Payment" ("FAS 123R"), which requires all share-based payments to employees be recognized in the financial statements based upon the fair value. FAS 123R is effective at the beginning of the first interim or annual period beginning after June 15, 2005. Earlier adoption is encouraged. FAS 123R provides two transition methods, modified-prospective and modified-retrospective. C-14 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The modified-prospective method recognizes the grant-date fair value of compensation for new awards granted after the effective date and unvested awards beginning in the fiscal period in which the recognition provisions are first applied. Prior periods are not restated. The modified-retrospective method permits entities to restate prior periods by recognizing the compensation cost based on the amount previously reported in the pro forma footnote disclosures as required under FAS No. 123, "Accounting for Stock-Based Compensation". The Company intends to early adopt the provisions of FAS 123R on January 1, 2005, using the modified-prospective method. Due to the Company's few number of employees, the adoption of FAS 123R is not expected to have a material impact on the Company's financial position, results of operations, or cash flows. Prior to January 2005, the Company applied the intrinsic value-based provisions set forth in APB Opinion No. 25, "Accounting for Stock Issued to Employees". Under the intrinsic value method, compensation expense is determined on the measurement date, which is the first date on which both the number of shares the employee is entitled to receive and the exercise price are known. Compensation expense, if any, is measured based on the award's intrinsic value, which is the excess of the market price of the stock over the exercise price on the measurement date. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates. Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year classifications. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, money market instruments and other debt issues with a maturity of 90 days or less when purchased. Investments All of the Company's fixed maturity and equity securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized gains and losses on these securities are included directly in shareholder's equity, after adjustment for related C-15 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- changes in deferred policy acquisition costs ("DAC"), value of business acquired ("VOBA"), and deferred income taxes. Other-Than-Temporary-Impairments The Company analyzes the general account investments to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. Management considers the length of the time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer; future economic conditions and market forecasts; and the Company's intent and ability to retain the investment in the issuer for a period of time sufficient to allow for recovery in market value. If it is probable that all amounts due according to the contractual terms of a debt security will not be collected, an other-than-temporary impairment is considered to have occurred. In addition, the Company invests in structured securities that meet the criteria of EITF Issue No. 99-20, "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets." Under EITF Issue No. 99-20, a determination of the required impairment is based on credit risk and the possibility of significant prepayment risk that restricts the Company's ability to recover the investment. An impairment is recognized if the fair value of the security is less than amortized cost and there has been an adverse change in cash flow since the remeasurement date. When a decline in fair value is determined to be other-than-temporary, the individual security is written down to fair value and the loss is accounted for as a realized loss. Purchases and Sales Purchases and sales of fixed maturities and equity securities (excluding private placements) are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Valuation Fair values for fixed maturities are obtained from independent pricing services or broker-dealer quotations. Fair values for privately placed bonds are determined using a matrix-based model. The matrix-based model considers the level of risk-free interest rates, current corporate spreads, the credit quality of the issuer, and cash flow characteristics of the security. The fair values for actively traded equity securities are based on quoted market prices. For equity securities not actively traded, estimated fair values are based upon values of issues of comparable yield and quality or conversion value, where applicable. C-16 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Mortgage loans on real estate are reported at amortized cost less impairment writedowns. If the value of any mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to either the present value of expected cash flows from the loan (discounted at the loan's effective interest rate), or fair value of the collateral. If the loan is in foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell. The carrying value of the impaired loans is reduced by establishing a permanent writedown charged to realized loss. Investments in real estate are reported at historical cost, less accumulated depreciation and impairment writedowns, with the exception of land, which is not depreciated. If the value of any real estate is determined to be impaired (i.e., when it is probable that the Company will be unable to recover the carrying value of the real estate), the carrying value of the real estate is reduced to the current fair value. The carrying value of the impaired real estate is reduced by establishing a permanent writedown charged to realized loss. Policy loans are carried at unpaid principal balances. Short-term investments, consisting primarily of money market instruments and other fixed maturity issues purchased with an original maturity of 91 days to one year, are considered available-for-sale and are carried at fair value, which approximates amortized cost. Derivative instruments are reported at fair value and are obtained internally from the derivative accounting system. Embedded derivative instruments are reported at fair value based upon internally established valuations that are consistent with external valuation models or market quotations. Guaranteed minimum withdrawals benefits ("GMWBs") and guaranteed minimum accumulation benefits ("GMABs") represent an embedded derivative liability in the variable annuity contract that is required to be reported separately from the host variable annuity contract. GMWBs and GMABs are carried at fair value based on actuarial assumptions related to projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning contractowner behavior. Estimating cash flows involves numerous estimates and subjective judgments including those regarding expected market rates of return, market volatility, correlations of market returns, and discount rates. Securities Lending The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned domestic securities. The collateral is deposited C-17 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- by the borrower with a lending agent, and retained and invested by the lending agent according to the Company's guidelines to generate additional income. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. Repurchase Agreements The Company engages in dollar repurchase agreements ("dollar rolls") and repurchase agreements to increase the return on investments and improve liquidity. These transactions involve a sale of securities and an agreement to repurchase substantially the same securities as those sold. Company policies require a minimum of 95% of the fair value of securities pledged under dollar rolls and repurchase agreement transactions to be maintained as collateral. Cash collateral received is invested in fixed maturities and the offsetting collateral liability is included in borrowed money on the Balance Sheets. Derivatives The Company's use of derivatives is limited mainly to hedging purposes. However, these derivatives are not accounted for using hedge accounting treatment under FAS No. 133, as the Company does not seek hedge accounting treatment. The Company enters into interest rate, equity market, and currency contracts, including swaps, caps, floors, options and futures, to reduce and manage risks associated with changes in value, yield, price, or cash flow or exchange rates of assets or liabilities held or intended to be held. Changes in the fair value of open derivative contracts are recorded in net realized capital gains and losses in the Statements of Operations. Derivatives are included in other investments on the Balance Sheets. The Company also has investments in certain fixed maturity instruments and has retail annuity products that contain embedded derivatives, including those whose market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short- or long-term), exchange rates, prepayment rates, equity markets, or credit ratings/spreads. Changes in the fair value of embedded derivatives are recorded in net realized capital gains (losses) in the Statements of Operations. Embedded derivatives within securities are included in fixed maturities in the Balance Sheets. Embedded derivatives within retail annuity products are included in future policy benefits and claims reserves on the Balance Sheets. Deferred Policy Acquisition Costs and Value of Business Acquired Deferred policy acquisition costs ("DAC") represent policy acquisition costs that have been capitalized and are subject to amortization. Such costs consist principally of certain commissions, underwriting, contract issuance, and agency expenses, related to the production of new and renewal business. C-18 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Value of business acquired ("VOBA") represents the outstanding value of in force business capitalized and are subject to amortization in purchase accounting when the Company was acquired. The value is based on the present value of estimated net cash flows embedded in the Company's contracts. The amortization methodology used for DAC and VOBA varies by product type. Statement of Financial Accounting Standards ("FAS") No. 60, "Accounting and Reporting by Insurance Enterprises," applies to traditional life insurance products, primarily traditional whole life and term life insurance contracts. Under FAS No. 60, DAC and VOBA are amortized over the premium payment period, in proportion to the premium revenue recognized. FAS No. 97 applies to universal life and investment-type products, such as fixed and variable deferred annuities. Under FAS No. 97, DAC and VOBA are amortized, with interest, over the life of the related contracts (usually 25 years) in relation to the present value of estimated future gross profits from investment, mortality, and expense margins; asset-based fees, policy administration, and surrender charges; less policy maintenance fees and non-capitalized commissions, as well as realized gains and losses on investments. Guaranteed investment contracts, however, are amortized on a straight-line basis over the life of the contract. Changes in assumptions can have a significant impact on DAC and VOBA balances and amortization rates. Several assumptions are considered significant in the estimation of future gross profits associated with variable universal life and variable deferred annuity products. One of the most significant assumptions involved in the estimation of future gross profits is the assumed return associated with the variable account performance. To reflect the volatility in the equity markets, this assumption involves a combination of near-term expectations and long-term assumptions regarding market performance. The overall return on the variable account is dependent on multiple factors, including the relative mix of the underlying sub-accounts among bond funds and equity funds, as well as equity sector weightings. Other significant assumptions include surrender and lapse rates, estimated interest spread, and estimated mortality. Due to the relative size and sensitivity to minor changes in underlying assumptions of DAC and VOBA balances, the Company performs a quarterly and annual analysis of DAC and VOBA for the annuity and life businesses, respectively. The DAC and VOBA balances are evaluated for recoverability and are reduced to the extent that estimated future gross profits are inadequate to recover the asset. At each evaluation date, actual historical gross profits are reflected, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated profit requires that the amortization rate be revised ("unlocking"), retroactively to the date of the policy or contract issuance. The cumulative prior period adjustment is recognized as a component of current period amortization. In general, C-19 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- increases in investment returns, and thus estimated profits, lower the rate of amortization. Increases in surrender charges and mortality margins, decreases in investment returns, and decreases in estimated profits, increase the rate of amortization. Reserves Future policy benefits include reserves for universal life, immediate annuities with life contingent payouts, and traditional life insurance contracts. Reserves for universal life products are equal to cumulative deposits less withdrawals and charges plus credited interest thereon. Reserves for traditional life insurance contracts represent the present value of future benefits to be paid to or on behalf of contractowners and related expenses less the present value of future net premiums. Reserves for deferred annuity investment contracts and immediate annuity without life contingent payouts are equal to cumulative deposits less charges and withdrawals, plus credited interest thereon (reserve interest rates vary by product up to 10.0% for all periods presented). Reserves for immediate annuities with life contingent payout benefits are computed on the basis of assumed interest discount rate, mortality, and expenses, including a margin for adverse deviations. Such assumptions generally vary by plan, year of issue and policy duration. Reserve interest rates ranged from 3.0% to 8.0% for all periods presented. Mortality and withdrawal rate assumptions are based on relevant Company experience and are periodically reviewed against both industry standards and experience. Certain variable annuity contracts offer guaranteed minimum death benefits ("GMDB"), as well as guaranteed living benefits. The GMDB is provided in the event the customer's account value at death is below the guaranteed value. Guaranteed living benefits offered include guaranteed minimum income benefits, guaranteed minimum withdrawal benefits, and guaranteed minimum accumulation benefits. Although the Company reinsures or hedges a significant portion of the death and living benefit guarantees associated with its in force business, declines in the equity market may increase the Company's net exposure to the death and living benefits under these contracts. Reserves for GICs are calculated using the principal amount deposited with the Company, less withdrawals, plus interest accrued to the ending valuation date. Interest on these contracts is accrued by a predetermined index plus a spread or a fixed rate, established at the issue date of the contract. Reserves for universal life products are equal to cumulative deposits less withdrawals and charges plus credited interest thereon. In addition, the Company holds reserves as required for SOP 03-1 for certain products with anticipated losses in later policy durations. Reserves for traditional life insurance contracts represent the present value of future benefits to be C-20 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- paid to or on behalf of contractowners and related expenses less the present value of future net premiums. Sales Inducements Sales inducements represent benefits paid to contractowners that are incremental to the amounts the Company credits on similar contracts and are higher than the contract's expected ongoing crediting rates for periods after the inducement. As of January 1, 2004, such amounts are reported separately on the balance sheet in accordance with SOP 03-1. Prior to 2004, sales inducements were recorded as a component of DAC on the Balance Sheet. Beginning in 2004, sales inducements are amortized as a component of interest credited and other benefits to contractowners using methodologies and assumptions consistent with those used for amortization of DAC. Revenue Recognition For universal life and most annuity contracts, charges assessed against contractowners' funds for the cost of insurance, surrender, expenses, and other fees are recorded as revenue as charges are assessed against contractowners. Other amounts received for these contracts are reflected as deposits and are not recorded as premium or revenue. Related policy benefits are recorded in relation to the associated premiums or gross profit so that profits are recognized over the expected lives of the contracts. When annuity payments with life contingencies begin under contracts that were initially investment contracts, the accumulated balance in the account is treated as a single premium for the purchase of an annuity and reflected as an offsetting amount in both premiums and benefits in the Statements of Operations. Premiums on the Statements of Operations primarily represent amounts received under traditional life insurance policies. For GICs, deposits made to the Company are not recorded as revenue in the Statements of Operations and are recorded directly to policy liabilities and accruals on the Balance Sheet. Separate Accounts Separate Account assets and liabilities generally represent funds maintained to meet specific investment objectives of contractowners who bear the investment risk, subject, in limited cases, to certain minimum guarantees. Investment income and investment gains and losses generally accrue directly to such contractowners. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. C-21 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Separate Account assets supporting variable options under annuity and universal life contracts are invested, as designated by the contractowner or participant (who bears the investment risk, subject, in limited cases, to minimum guaranteed rates) under a contract, in shares of mutual funds which are managed by the Company or its affiliates, or in other selected mutual funds not managed by the Company or its affiliates. Separate Account assets and liabilities are carried at fair value and shown as separate captions in the Balance Sheets. Deposits, investment income and net realized and unrealized capital gains and losses of the Separate Accounts are not reflected in the Statement of Operations. The Statements of Cash Flows do not reflect investment activity of the Separate Accounts. Assets and liabilities of separate account arrangements that do not meet the criteria in SOP 03-1 for presentation in the separate caption in the Balance Sheets (primarily guaranteed interest options), and revenue and expenses related to such arrangements, are consolidated in the financial statements with the general account. At December 31, 2004 and 2003, unrealized gains of $100.5 and $112.8, respectively, after taxes, on assets supporting a guaranteed interest option are reflected in shareholder's equity. Reinsurance The Company utilizes indemnity reinsurance agreements to reduce its exposure to large losses in certain aspects of its insurance business. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Company as direct insurer of the risks reinsured. The Company evaluates the financial strength of potential reinsurers and continually monitors the financial condition of reinsurers. Only those reinsurance recoverable balances deemed probable of recovery are reflected as assets on the Company's Balance Sheets. Participating Insurance Participating business approximates 10% of the Company's ordinary life insurance in force and 26% of premium income. The amount of dividends to be paid is determined annually by the Board of Directors. Amounts allocable to participating contractowners are based on published dividend projections or expected dividend scales. Dividends to participating policyholders of $16.2, $17.2, and $23.7, were incurred during the years ended December 31, 2004, 2003 and 2002, respectively. Income Taxes The Company is taxed at regular corporate rates after adjusting income reported for financial statement purposes for certain items. Deferred income tax expenses/benefits result from changes during the year in cumulative temporary differences between the tax basis and book basis of assets and liabilities. C-22 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- 2. Investments Fixed maturities and equity securities available-for-sale as of December 31, 2004 were as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value -------------- -------------- --------------- -------------- Fixed maturities: U.S. government and government agencies and authorities $ 464.0 $ 1.8 $ 1.1 $ 464.7 State, municipalities and political subdivisions 20.7 - 0.8 19.9 U.S. corporate securities: Public utilities 1,796.9 78.4 8.9 1,866.4 Other corporate securities 6,292.4 243.5 22.7 6,513.2 -------------- -------------- --------------- -------------- Total U.S. corporate securities 8,089.3 321.9 31.6 8,379.6 -------------- -------------- --------------- -------------- Foreign securities: Government 518.9 24.2 2.2 540.9 Other 2,571.2 97.7 11.5 2,657.4 -------------- -------------- --------------- -------------- Total foreign securities 3,090.1 121.9 13.7 3,198.3 -------------- -------------- --------------- -------------- Residential mortgage-backed securities 3,440.3 43.9 22.4 3,461.8 Commercial mortgaged-backed securities 1,107.8 34.9 3.0 1,139.7 Other asset-backed securities 1,934.2 14.3 14.7 1,933.8 -------------- -------------- --------------- -------------- Total fixed maturities, including fixed maturities pledged 18,146.4 538.7 87.3 18,597.8 Less: fixed maturities pledged 1,100.5 9.8 1.7 1,108.6 -------------- -------------- --------------- -------------- Fixed maturities 17,045.9 528.9 85.6 17,489.2 Equity securities 34.8 0.5 - 35.3 -------------- -------------- --------------- -------------- Total investments available-for-sale $ 17,080.7 $ 529.4 $ $ 85.6 $ 17,524.5 ============== ============== =============== ==============
C-23 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Fixed maturities and equity securities available-for-sale as of December 31, 2003 were as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value -------------- -------------- --------------- -------------- Fixed maturities: U.S. government and government agencies and authorities $ 195.5 $ 2.0 $ 0.1 $ 197.4 State, municipalities and political subdivisions 31.7 - 2.5 29.2 U.S. corporate securities: Public utilities 1,341.2 84.3 8.0 1,417.5 Other corporate securities 6,246.4 300.9 33.7 6,513.6 -------------- -------------- --------------- -------------- Total U.S. corporate securities 7,587.6 385.2 41.7 7,931.1 -------------- -------------- --------------- -------------- Foreign securities: Government 487.1 21.7 3.9 504.9 Other 1,984.4 96.0 24.1 2,056.3 -------------- -------------- --------------- -------------- Total foreign securities 2,471.5 117.7 28.0 2,561.2 -------------- -------------- --------------- -------------- Residential mortgage-backed securities 3,247.0 66.7 21.8 3,291.9 Commercial mortgage-backed securities 774.2 45.8 2.1 817.9 Other asset-backed securities 1,273.0 17.2 21.1 1,269.1 Total fixed maturities, including fixed maturities pledged 15,580.5 634.6 117.3 16,097.8 Less: fixed maturities pledged 555.5 6.4 2.8 559.1 -------------- -------------- --------------- -------------- Fixed maturities 15,025.0 628.2 114.5 15,538.7 Equity securities 115.2 5.0 - 120.2 -------------- -------------- --------------- -------------- Total investments available-for-sale $ 15,140.2 $ 633.2 $ 114.5 $ 15,658.9 ============== ============== =============== ==============
At December 31, 2004 and 2003, net unrealized appreciation is $451.9 and $522.3, respectively, on total fixed maturities, including fixed maturities pledged to creditors, and equity securities. C-24 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The aggregate unrealized losses and related fair values of total fixed maturities, including fixed maturities pledged to creditors, and equity securities with unrealized losses as of December 31, 2004, are shown below by duration: Unrealized Fair Loss Value ----------------- ----------------- Duration category: Less than six months below cost $ 27.2 $ 3,199.9 More than six months and less than twelve months below cost 29.9 1,710.7 More than twelve months below cost 30.2 709.1 ----------------- ----------------- $ 87.3 $ 5,619.7 ================= =================
Of the unrealized losses less than 6 months in duration of $27.2, there were $12.3 in unrealized losses that are primarily related to interest rate movement or spread widening for other than credit-related reasons. The remaining unrealized losses of $14.9 as of December 31, 2004, relates to securities under the guidance prescribed by EITF Issue No. 99-20. This category includes U.S. government-backed securities, principal protected securities, and structured securities, which did not have an adverse change in cash flows for which the carrying amount was $1,560.4. Of the unrealized losses more than 6 months and less than 12 months in duration of $29.9, there were $16.9 in unrealized losses that are primarily related to interest rate movement or spread widening for other than credit-related reasons. The remaining unrealized losses of $13.0 as of December 31, 2004, relates to securities under the guidance prescribed by EITF Issue No. 99-20. This category includes U.S. government-backed securities, principal protected securities, and structured securities, which did not have an adverse change in cash flows for which the carrying amount was $768.8. Of the unrealized losses more than 12 months in duration of $30.2, there were $18.0, in unrealized losses that are primarily related to interest rate movement or spread widening for other than credit-related reasons. The remaining unrealized losses of $12.2 as of December 31, 2004, relates to securities under the guidance prescribed by EITF Issue No. 99-20. This category includes U.S. government-backed securities, principal protected securities, and structured securities, which did not have an adverse change in cash flows for which the carrying amount was $222.8. C-25 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The amortized cost and fair value of fixed maturities as of December 31, 2004 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called, or prepaid. Amortized Fair Cost Value ----------------- ----------------- Due to mature: One year or less $ 336.8 $ 341.5 After one year through five years 4,066.3 4,151.2 After five years through ten years 4,209.5 4,403.0 After ten years 3,051.6 3,166.9 Mortgage-backed securities 4,548.0 4,601.4 Other asset-backed securities 1,934.2 1,933.8 Less: fixed maturities pledged 1,100.5 1,108.6 ----------------- ----------------- Fixed maturities, excluding fixed maturities pledged $ 17,045.9 $ 17,489.2 ================= =================
The Company did not have any investments in a single issuer, other than obligations of the U.S. government, with a carrying value in excess of 10% of the Company's shareholder's equity at December 31, 2004. At December 31, 2004 and 2003, fixed maturities with fair values of $11.9 and $20.1, respectively, were on deposit as required by regulatory authorities. The Company is a member of the Federal Home Loan Bank of Des Moines ("FHLB") and is required to maintain a collateral deposit that backs funding agreements issued to the FHLB. At December 31, 2004 and 2003, respectively, the Company had $376.3 and $125.3 in non-putable funding agreements issued to the FHLB. At December 31, 2004 and 2003, respectively, assets with a carrying value of approximately $422.0 and $148.2 collateralized the funding agreements to the FHLB. Collateralized assets are included in fixed maturities in the Balance Sheets. The Company enters into dollar repurchase agreements ("dollar rolls") and repurchase agreements to increase its return on investments and improve liquidity. At December 31, 2004 and 2003, the carrying value of the securities pledged in dollar rolls and repurchase agreements was $715.9 and $536.8, respectively. The carrying value of the securities pledged in dollar rolls and repurchase agreements is included in pledged securities on the Balance Sheets. The repurchase obligation related to dollar rolls and repurchase agreements totaled $713.4 and $534.2 at December 31, 2004 and 2003, respectively. The repurchase obligation related to dollar rolls and repurchase agreements is included in borrowed money on the Balance Sheets. C-26 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned domestic securities. The collateral is deposited by the borrower with a lending agent and retained and invested by the lending agent according to the Company's guidelines to generate additional income. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, an amount that was not material at December 31, 2004. The Company believes the counterparties to the dollar rolls, repurchase agreements, reverse repurchase agreements, and securities lending are financially responsible and that the counterparty risk is immaterial. Impairments The following table identifies the Company's other-than-temporary impairments by type as of December 31: 2004 2003 2002 ---------------------------- ---------------------------- --------------------------- No. of No. of No. of Impairment Securities Impairment Securities Impairment Securities --------------- ------------ --------------- ------------ -------------- ------------ U.S. Corporate $ - - $ 23.7 16 $ 0.1 1 Residential mortgage-backed 9.1 88 81.3 173 81.3 125 Foreign 8.5 4 11.5 2 8.5 3 Asset-backed 11.5 6 5.8 7 31.1 14 Equity - - - - - 1 Limited partnerships 2.2 1 - - - - --------------- ------------ --------------- ------------ -------------- ------------ Total $ 31.3 99 $ 122.3 198 $ 121.0 144 =============== ============ =============== ============ ============== ============
The remaining fair value of the impaired fixed maturities at December 31, 2004 and 2003 is $168.7 and $192.0, respectively. C-27 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Net Investment Income Sources of net investment income were as follows: Year ended December 31, 2004 2003 2002 ----------------- ----------------- ------------------ Fixed maturities $ 960.5 $ 957.6 $ 946.1 Equity securities 0.3 0.2 - Mortgage loans on real estate 221.8 208.5 202.2 Real estate 0.2 0.6 0.3 Policy loans 9.8 8.8 9.5 Short-term investments and cash equivalents 1.4 1.5 3.7 Other (98.4) (138.6) (127.9) ----------------- ----------------- ------------------ Gross investment income 1,095.6 1,038.6 1,033.9 Less: investment expenses 71.7 64.0 44.6 ----------------- ----------------- ------------------ Net investment income $ 1,023.9 $ 974.6 $ 989.3 ================= ================= ==================
Net Realized Capital Gains and Losses Net realized capital gains (losses) are comprised of the difference between the carrying value of investments and proceeds from sale, maturity, and redemption, as well as losses incurred due to the impairment of investments. Net realized capital gains (losses) on investments were as follows: Year ended December 31, 2004 2003 2002 ----------------- ------------------ ----------------- Fixed maturities $ 44.0 $ 108.7 $ (105.9) Equity securities 6.4 0.2 0.1 Derivatives 9.3 1.7 (92.0) Real estate - (3.4) 1.7 Other (2.1) (0.3) (0.4) ----------------- ------------------ ----------------- Pretax net realized capital gains (losses) $ 57.6 $ 106.9 $ (196.5) ================= ================== ================= After-tax net realized capital gains (losses) $ 37.4 $ 69.5 $ (127.7) ================= ================== =================
Proceeds from the sale of fixed maturities and equity securities and the related gross gains and losses were as follows: Year ended December 31, 2004 2003 2002 ----------------- ----------------- ----------------- Proceeds on sales $ 9,916.3 $ 13,664.8 $ 15,027.8 Gross gains 145.5 297.6 253.3 Gross losses 59.3 60.4 224.2
C-28 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Changes in accumulated other comprehensive income related to changes in net unrealized capital gains and losses on securities, including securities pledged were as follows: Year ended December 31, 2004 2003 2002 ----------------- ----------------- ----------------- Fixed maturities $ (65.9) $ (90.4) $ 556.5 Equity securities (4.5) 8.6 (3.9) DAC/VOBA (48.1) 151.2 (353.1) Sales inducements (6.7) - - Other 11.3 13.4 2.8 ----------------- ----------------- ----------------- Subtotal (113.9) 82.8 202.3 Deferred income taxes 43.4 (27.9) 0.9 ----------------- ----------------- ----------------- Net unrealized capital gains (losses) $ (70.5) $ 54.9 $ 203.2 ================= ================= =================
3. Financial Instruments Estimated Fair Value The following disclosures are made in accordance with the requirements of FAS No. 107, "Disclosures about Fair Value of Financial Instruments." FAS No. 107 requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the instrument. FAS No. 107 excludes certain financial instruments, including insurance contracts, and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The following valuation methods and assumptions were used by the Company in estimating the fair value of the following financial instruments: Fixed maturity securities: The fair values for the actively traded marketable bonds are determined based upon the quoted market prices. The fair values for marketable bonds without an active market are obtained through several commercial pricing services which provide the estimated fair values. Fair values of privately placed bonds are determined using a matrix-based pricing model. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer, and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees, and the C-29 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Company's evaluation of the borrower's ability to compete in their relevant market. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond. Equity securities: Fair values of these securities are based upon quoted market price. Mortgage loans on real estate: The fair values for mortgage loans on real estate are estimated using discounted cash flow analyses and rates currently being offered in the marketplace for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. Cash, cash equivalents, short-term investments under securities loan agreement and policy loans: The carrying amounts for these assets approximate the assets' fair values. Derivatives are carried at fair value on the Balance Sheets. Assets held in separate accounts: Assets held in separate accounts are reported at the quoted fair values of the individual securities in the separate accounts. Other financial instruments reported as assets: The carrying amounts for these financial instruments (primarily derivatives) approximate those assets' fair values. Derivatives are carried at fair value on the Balance Sheets. Notes to affiliates: Estimated fair value of the Company's notes to affiliates are based upon discounted future cash flows using a discount rate approximating the current market value. Investment contract liabilities (included in future policy benefits and claims reserves): With a fixed maturity: Fair value is estimated by discounting cash flows at interest rates currently being offered by, or available to, the Company for similar contracts. Without a fixed maturity: Fair value is estimated as the amount payable to the contractowner upon demand. However, the Company has the right under such contracts to delay payment of withdrawals which may ultimately result in paying an amount different than that determined to be payable on demand. Liabilities related to separate accounts: Liabilities related to separate accounts are reported at full account value in the Company's Balance Sheets. Estimated fair values of separate account liabilities are equal to their carrying amount. C-30 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The carrying values and estimated fair values of certain of the Company's financial instruments at December 31, 2004 and 2003 were as follows: 2004 2003 ------------------------------ ------------------------------ Carrying Fair Carrying Fair Value Value Value Value -------------- -------------- -------------- -------------- Assets: Fixed maturity, including securities pledged $ 18,597.8 $ 18,597.8 $ 16,097.8 $ 16,097.8 Equity securities 35.3 35.3 120.2 120.2 Mortgage loans on real estate 3,851.8 3,969.4 3,388.7 3,581.4 Policy loans 169.0 169.0 177.1 177.1 Cash, cash equivalents, and short-term investments under securities loan agreement 611.8 611.8 88.0 88.0 Other investments 228.8 229.0 60.8 61.1 Assets held in separate accounts 24,746.7 24,746.7 18,220.1 18,220.1 Liabilities: Notes to affiliates 435.0 508.5 85.0 145.2 Investment contract liabilities: Deferred annuities 17,525.9 16,344.6 16,072.4 15,069.0 Supplementary contracts and immediate annuities 864.9 864.9 840.1 840.1 Liabilities related to separate accounts 24,746.7 24,746.7 18,220.1 18,220.1
Fair value estimates are made at a specific point in time, based on available market information and judgments about various financial instruments, such as estimates of timing and amounts of future cash flows. Such estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating the Company's management of interest rate, price, and liquidity risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above. Derivative Financial Instruments Interest Rate Caps Interest rate caps are used to manage the interest rate risk in the Company's bond portfolio. Interest rate caps are purchased contracts that provide the Company with an annuity in an increasing interest rate environment. The notional amount of the Company's open interest rate caps as of December 31, 2004 was $236.2. Carrying value and estimated fair value of the open interest rate caps was minimal as of December 31, 2004. The notional amount of the Company's open interest rate caps as of December 31, C-31 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- 2003 was $1,036.2. Carrying value and estimated fair value of the open interest rate caps were minimal as of December 31, 2003. Interest Rate Swaps Interest rate swaps are used to manage the interest rate risk in the Company's bond portfolio as well as the Company's liabilities. Interest rate swaps represent contracts that require the exchange of cash flows at regular interim periods, typically monthly or quarterly. The notional amount, carrying value and estimated fair value of the Company's open interest rate swaps as of December 31, 2004 were $2,832.8, $34.0 and $34.0, respectively. The notional amount, carrying value and estimated fair value of the Company's open interest rate swaps as of December 31, 2003 were $1,266.5, $(91.2) and $(91.2), respectively. Futures Futures contracts are used to hedge against a decrease in certain indexes. Such decrease results in increased reserve liabilities, and the futures offset this increased expense. The underlying reserve liabilities are carried at market value with the change in value recorded in the Statements of Operations, which is offset by the daily cash movement of the futures. The notional amount, carrying value and estimated fair value of the Company's open futures contracts as of December 31, 2004, were $1,177.9, $(0.2) and $(0.2), respectively. The notional amount, carrying value and estimated fair value of the Company's open futures contracts as of December 31, 2003, were $491.3, $0.8 and $0.8, respectively. Foreign Exchange Swaps Foreign exchange swaps are used to reduce the risk of a change in the value, yield, or cash flow with respect to invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows for US dollar cash flows at regular interim periods, typically quarterly or semi-annually. The notional amount, carrying value, and estimated fair value of the Company's open foreign exchange rate swaps as of December 31, 2004 were $146.7, $(34.5) and $(34.5), respectively. The notional amount, carrying value, and estimated fair value of the Company's open foreign exchange rate swaps as of December 31, 2003 were $128.2, $(19.4) and $(19.4), respectively. Options Standard & Poor's ("S&P") Options are used to hedge against an increase in the S&P Index. Such increase results in increased reserve liabilities, and the options offset this increased expense. The options are accounted for in C-32 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- a consistent manner with the underlying reserve liabilities, both of which are carried at fair value with the change in value recorded in the Statements of Operations. If the options mature in the money, the amount received is recorded in income to offset the increased expense for the reserve liabilities. The notional amount, carrying value and estimated fair value of the Company's open options as of December 31, 2004 were $2,335.4, $166.0, and $166.0, respectively. The notional amount, carrying value and estimated fair value of the Company's open options as of December 31, 2003 were $1,287.8, $100.9, and $100.9, respectively. Embedded Derivatives The Company also has investments in certain fixed maturity instruments and retail annuity products that contain embedded derivatives, including those whose market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short- or long-term), exchange rates, prepayment rates, equity markets, or credit ratings/spreads. The estimated fair value of the embedded derivatives within securities as of December 31, 2004 and 2003 was $(4.6) and $(1.1), respectively. The estimated fair value of the embedded derivatives within retail annuity products as of December 31, 2004 and 2003, was $479.9 and $238.9, respectively. 4. Deferred Policy Acquisition Costs and Value of Business Acquired Activity for the years ended December 31, 2004, 2003 and 2002, within VOBA was as follows: Balance at December 31, 2001 $ 202.5 Adjustment for unrealized gains/losses (34.2) Interest accrued at 4% - 5% 10.1 Amortization (43.9) ----------------- Balance at December 31, 2002 134.5 Adjustment for unrealized gains/losses 7.0 Interest accrued at 4% - 5% 6.6 Amortization (36.6) ----------------- Balance at December 31, 2003 111.5 Adjustment for unrealized gains/losses (0.5) Interest accrued at 4% - 5% 6.8 Amortization (5.6) ----------------- Balance at December 31, 2004 $ 112.2 =================
The estimated amount of VOBA to be amortized, net of interest, over the next five years is $15.5, $13.6, $11.0, $10.1, and $12.3, for the years 2005, 2006, 2007, 2008 and 2009, respectively. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results. C-33 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Analysis of DAC/VOBA - Annuity The variance in amortization expense in 2004 versus 2003 was impacted by SOP 03-1. In prior years, amortization of inducements was included in amortization of DAC and VOBA. Beginning in 2004, sales inducement amortization is included as a component of benefit expense in accordance with SOP 03-1. Therefore, the decrease in amortization of DAC and VOBA is partially related to 2004 sales inducement amortization being included in interest credited instead of amortization of DAC and VOBA. Also contributing to the decrease is the improved market performance during 2003, which lowered the amortization rate for 2004. Amortization expense in 2003 was higher than 2002 due in part to the poor equity market performance in 2002, which increased the amortization rate in 2003, as well as to the amortization of acquisition costs related to increased sales of fixed annuities during 2002. 2003 was the first full year of amortization for this block of acquisition costs. Also impacting amortization of DAC and VOBA are unlocking adjustments discussed below. The actual separate account market return exhibited by the variable deposits invested in mutual funds associated with the Company's liabilities in 2004 exceeded the long-term assumption, thereby producing deceleration of DAC/VOBA amortization of $6.6, before tax. As a part of the regular analysis of DAC/VOBA, at the end of the first quarter of 2004, the Company modified its assumptions regarding the future rate of spread income on some of its fixed annuity liabilities. The assumption modification was in the direction of lower spread income, and produced an acceleration of DAC/VOBA amortization of $5.0, before tax. Similar regular analysis of DAC\VOBA at the end of the third quarter of 2004 included unlocking of the Company's assumptions regarding contractowner withdrawal behavior. Based on experience studies, assumed rates of full surrender for both fixed and variable annuities and rates of partial withdrawal of account balance for variable annuities were all modified downward, producing a deceleration of DAC/VOBA amortization of $4.2, before tax. The combined effect of the three factors of actual variable return for 2004 exceeding long-term assumptions, modification of future spread income expectations, and modification of expectations regarding future withdrawal behavior was a deceleration of DAC/VOBA amortization totaling $5.8, before tax, or $3.8, net of $2.0 of federal income tax expense. The Company reset long-term return assumptions for the separate account to 8.5% from 9.0% (gross before fund management fees and mortality, expense, and other policy charges) as of December 31, 2003, reflecting a blended return of equity and other sub-accounts. The largest component of the 2003 unlocking adjustment comprised a deceleration of DAC/VOBA amortization totaling $41.3, before tax. This component was primarily driven by improved market performance. The Company also unlocked assumptions regarding future lapse rates for fixed annuities during the analysis at the end of 2003, resulting in an acceleration of DAC/VOBA amortization of $6.0, before tax. In each of the regular analyses of DAC/VOBA at the end of the third and fourth quarters of 2003, expectations regarding yields on assets backing C-34 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- fixed annuity liabilities were revised downward, resulting in respective accelerations of DAC/VOBA amortization measuring $2.1, before tax and $6.0, before tax. The combined effect of all unlocking in 2003 was a deceleration of DAC/VOBA amortization totaling $27.2, before tax, or $17.7, net of $9.5 of federal income tax expense. As part of the regular analysis of DAC/VOBA, at the end of third quarter of 2002, the Company unlocked its long-term rate of return assumptions. The Company reset long-term assumptions for the separate account return to 9.0% (gross before fund management fees and mortality, expense, and other policy charges), as of December 31, 2002, reflecting a blended return of equity and other sub-accounts. The largest component of the 2002 unlocking adjustment comprised an acceleration of DAC/VOBA amortization totaling $91.5, before tax. This component was primarily driven by the sustained downturn in the equity markets and revised expectations for future returns. The Company also unlocked assumptions regarding future lapse and partial withdrawal rates for fixed annuities during the analysis at the end of the third quarter of 2002, resulting in an acceleration of DAC/VOBA amortization measuring $2.0, before tax. During the regular analysis at the end of the fourth quarter of 2002, expectations regarding the assets backing the fixed annuity liabilities were revised to reflect higher anticipated default rates. This fourth quarter adjustment resulted in an acceleration of DAC/VOBA amortization of $8.0, before tax. The combined effect of all unlocking adjustments in 2002 was an acceleration of DAC/VOBA amortization totaling $101.5 before tax, or $66.0, net of $35.5 of federal income tax benefit. Analysis DAC/VOBA - Life As part of the regular analysis of DAC/VOBA for the life insurance block, at the end of each of the years ended December 31, 2004, 2003, and 2002, the Company unlocked due to assumption changes related primarily to mortality, lapse, expense, and interest amounts. The impact of unlocking on the amortization of DAC/VOBA was a decrease of $1.2 in 2004, an increase of $6.0 in 2003, and an increase of $5.2 in 2002. 5. Dividend Restrictions and Shareholder's Equity The Company's ability to pay dividends to its parent is subject to the prior approval of the Iowa Division of Insurance for payment of any dividend, which, when combined with other dividends paid within the preceding twelve months, exceeds the greater of (1) ten percent (10%) of the Company's statutory surplus at the prior year end or (2) the Company's prior year statutory net gain from operations. The Company did not pay any dividends on its common stock during 2004 or 2002. During 2003, the Company paid $12.4 in dividends on its common stock to its Parent. C-35 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The Insurance Division of the State of Iowa (the "Division"), effective January 1, 2004, recognizes as net income and capital and surplus those amounts determined in conformity with statutory accounting practices prescribed or permitted by the Division, which differ in certain respects from accounting principles generally accepted in the United States. Statutory net income (loss) was $96.1, $(85.1), and $(328.0), for the years ended December 31, 2004, 2003 and 2002, respectively. Statutory capital and surplus was $1,668.3 and $1,081.1 as of December 31, 2004 and 2003, respectively. As of December 31, 2004, the Company did not utilize any statutory accounting practices, which are not prescribed by state regulatory authorities that, individually or in the aggregate, materially affected statutory capital and surplus. 6. Additional Insurance Benefits and Minimum Guarantees Under SOP 03-1, the Company calculates additional liabilities ("SOP reserves") for certain guaranteed benefits and for universal life products with certain patterns of cost of insurance charges and certain other fees. The SOP reserve recognized for such products is in addition to the liability previously held (the "Account Value") and recognizes the portion of contract assessments received in early years used to compensate the insurer for services provided in later years. ING USA calculates a benefit ratio for each block of business subject to the SOP, and calculates an SOP reserve by accumulating amounts equal to the benefit ratio multiplied by the assessments for each period, reduced by excess death benefits during the period. The SOP reserve is accumulated at interest rates using the contract-credited rate for the period. The calculated reserve includes a provision for universal life contracts with patterns of cost of insurance charges that produce expected gains from the insurance benefit function followed by losses from that function in later years. C-36 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The SOP reserve for annuities with GMDBs is determined each period by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used to adjust the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The following assumptions and methodology were used to determine the GMDB SOP reserve at December 31, 2004: Area Assumptions/Basis for Assumptions ------------------------- --------------------------------------- Data used Based on 101 investment performance scenarios stratified based on 10,000 random generated scenarios Mean investment performance 8.5% Volatility 18.0% Mortality 60.0%, 60.0%, 75.0%, 75.0% of the 90-95 ultimate mortality table for standard, rachet, rollup and combination rollup and rachet, respectively Lapse rates Vary by contract type and duration; range between 1.0% and 40.0% Discount rates 6.5%, based on the portfolio earned rate of the general account
The SOP reserve for annuities with GMABs and GMWBs are considered to be derivatives under FAS No. 133 and are recognized at fair value through earnings. The SOP reserve for the guaranteed minimum income benefits ("GMIB") is determined each period by estimating the expected value of the annutization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if the actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used for calculating the additional GMIB liability at December 31, 2004, are consistent with those used for the calculating the additional GMDB liability. In addition, the calculation of the GMIB liability assumes dynamic surrenders and dynamic annuitization reflecting the extent to which the benefit, at the time of payment, has a positive value. C-37 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The separate account liabilities subject to SOP 03-1 for minimum guaranteed benefits, and the additional liabilities recognized related to minimum guarantees, by type, as of December 31, 2004, and the paid and incurred amounts by type for the year ended December 31, 2004 were as follows: Guaranteed Guaranteed Guaranteed Minimum Minimum Minimum Death Accumulation/ Income Benefit Withdrawal Benefit Benefit (GMDB) (GMAB/GMWB) (GMIB) -------------- --------------------- -------------- Separate account liability balance $ 25,843.4 $ 1,826.7 $ 9,079.6 ============== ===================== ============== Additional liability balance: Balance at January 1, 2004 $ 56.5 $ 14.5 $ 13.6 Incurred guaranteed benefits 39.0 (4.9) 17.1 Paid guaranteed benefits (28.6) - - -------------- --------------------- -------------- Balance at December 31, 2004 $ 66.9 $ 9.6 $ 30.7 ============== ===================== ==============
The net amount at risk (net of reinsurance) and the weighted average attained age of contractowners by type of minimum guaranteed benefit, were as follows as of December 31, 2004: Guaranteed Guaranteed Guaranteed Minimum Minimum Minimum Death Accumulation/ Income Benefit Withdrawal Benefit Benefit (GMDB) (GMAB/GMWB) (GMIB) --------------- --------------------- --------------- Net Amount at Risk (net of reinsurance) $ 1,365.7 $ 65.4 $ 204.3 Weighted Average Attained Age 63 61 61
The aggregate fair value of equity securities (including mutual funds), supporting separate accounts with additional insurance benefits and minimum investment return guarantees as of December 31, 2004 was $24,746.7. 7. Sales Inducements Sales inducements represent benefits paid to contractowners that are incremental to the amounts the Company credits on similar contracts and are higher than the contract's expected ongoing crediting rates for periods after the inducement. Such amounts are reported separately on the balance sheet as of January 1, 2004. Prior to 2004, these amounts were included in DAC. Sales inducements are amortized as a component of benefit expense using methodologies and assumptions consistent with those used for amortization of DAC. During the year ended December 31, 2004, the Company C-38 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- capitalized and amortized $100.9 and $65.5, respectively, of sales inducements. The unamortized balance of capitalized sales inducements, net of unrealized gains and losses, is $514.6 as of December 31, 2004. 8. Income Taxes Effective January 1, 2004, the Company files a stand-alone federal income tax return. Prior to that date, the Company and each of the Merger Companies, filed federal income tax returns with their respective filing groups. Income tax expense (benefit) from continuing operations included in the financial statements are as follows: Year ended December 31, 2004 2003 2002 ----------------- ----------------- ------------------ Current tax expense (benefit): Federal $ 4.7 $ 1.2 $ (19.9) ----------------- ----------------- ------------------ Total current tax expense (benefit) 4.7 1.2 (19.9) ----------------- ----------------- ------------------ Deferred tax expense (benefit): Operations and capital loss carryforwards 31.5 53.3 (3.9) Other federal deferred tax 44.5 (55.3) (36.4) ----------------- ----------------- ------------------ Total deferred tax expense (benefit) 76.0 (2.0) (40.3) ----------------- ----------------- ------------------ Total income tax expense (benefit) $ 80.7 $ (0.8) $ (60.2) ================= ================= ==================
Income taxes were different from the amount computed by applying the federal income tax rate to income from continuing operations before income taxes for the following reasons: Year ended December 31, 2004 2003 2002 ----------------- ----------------- ------------------ Income before income taxes and cumulative effect of change in accounting principle $ 173.6 $ 56.5 $ (176.3) Tax rate 35% 35% 35% ----------------- ----------------- ------------------ Income tax at federal statutory rate 60.8 19.8 (61.7) Tax effect of: Meals and entertainment 0.5 0.4 0.6 Dividend received deduction 1.3 (11.5) 0.8 Product reserves 3.0 - - Investments 15.0 - - Refinement of deferred tax balances - (9.5) - Other 0.1 - 0.1 ----------------- ----------------- ------------------ Income tax expense (benefit) $ 80.7 $ (0.8) $ (60.2) ================= ================= ==================
C-39 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31, 2004 and 2003 are presented below: 2004 2003 ----------------- ----------------- Deferred tax assets: Operations and capital loss carryforwards $ 133.5 $ 168.5 Future policy benefits 619.9 517.4 Goodwill 9.3 9.8 Investments 42.4 20.5 Employee compensation and benefits 19.9 16.8 Other 19.5 33.4 ----------------- ----------------- Total gross assets 844.5 766.4 Deferred tax liabilities: Unrealized gains on investments (157.1) (170.1) Deferred policy acquisition cost (663.1) (529.1) Value of purchased insurance in force (33.4) (38.3) Other (3.5) (9.5) ----------------- ----------------- Total gross liabilities (857.1) (747.0) ----------------- ----------------- Net deferred income tax asset (liability) $ (12.6) $ 19.4 ================= =================
Valuation allowances are provided when it is considered unlikely that deferred tax assets will be realized. No valuation allowance has been established at this time as management believes the above conditions presently do not exist. At December 31, 2004, the Company has operating loss carryforwards of approximately $381.5, for federal income tax purposes, which are available to offset future taxable income. If not used, these carryforwards will expire between 2015 and 2019. Net unrealized capital gains and losses are presented in shareholder's equity net of deferred taxes. Under prior law, life insurance companies were allowed to defer from taxation a portion of income. The deferred income was accumulated in the Policyholders' Surplus Account. Equitable Life had a Policyholders' Surplus Account prior to the merger, which carried over to the Company. This deferred income only becomes taxable under certain conditions, which management believes to be remote. Furthermore, the American Jobs Creation Act of 2004 allows certain tax-free distributions from the Policyholders' Surplus Account during 2005 and 2006. Therefore, based on currently available information, no federal income taxes have been provided on the Policyholders' Surplus Account accumulated balance of $14.4. The Company establishes reserves for possible proposed adjustments by various taxing authorities. Management believes there are sufficient reserves provided for, or adequate defenses against any such adjustments. C-40 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Currently, the Internal Revenue Service is conducting examinations for the years 2000 and 2001 and various state tax audits are in process. 9. Benefit Plans Defined Benefit Plan ING North America Insurance Corporation ("ING North America") sponsors the ING Americas Retirement Plan (the "Retirement Plan"), effective as of December 31, 2001. Substantially all employees of ING North America and its subsidiaries and affiliates (excluding certain employees) are eligible to participate, including the Company's employees. The Retirement Plan is a tax-qualified defined benefit plan, the benefits of which are guaranteed (within certain specified legal limits) by the Pension Benefit Guaranty Corporation ("PBGC"). As of January 1, 2002, each participant in the Retirement Plan (except for certain specified employees) earns a benefit under a final average compensation formula. Subsequent to December 31, 2001, ING North America is responsible for all Retirement Plan liabilities. The costs allocated to the Company for its employees' participation in the Retirement Plan were $11.4, $9.3, and $4.8, for the years ended 2004, 2003 and 2002, respectively. Defined Contribution Plans ING North America sponsors the ING Savings Plan and ESOP (the "Savings Plan"). Substantially all employees of ING North America and its subsidiaries and affiliates (excluding certain employees) are eligible to participate, including the Company's employees other than Company agents. The Savings Plan is a tax-qualified profit sharing and stock bonus plan, which includes an employee stock ownership plan ("ESOP") component. Savings Plan benefits are not guaranteed by the PBGC. The Savings Plan allows eligible participants to defer into the Savings Plan a specified percentage of eligible compensation on a pre-tax basis. ING North America matches such pre-tax contributions, up to a maximum of 6% of eligible compensation. All matching contributions are subject to a 4-year graded vesting schedule (although certain specified participants are subject to a 5-year graded vesting schedule). All contributions made to the Savings Plan are subject to certain limits imposed by applicable law. Pre-tax charges to operations of the Company for the Savings Plan were $3.5, $2.8, and $3.0, for the years ended December 31, 2004, 2003 and 2002, respectively. C-41 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Other Benefit Plans In addition to providing retirement plan benefits, the Company, in conjunction with ING North America, provides certain supplemental retirement benefits to eligible employees and health care and life insurance benefits to retired employees and other eligible dependents. The supplemental retirement plan includes a non-qualified defined benefit pension plan, and a non-qualified defined contribution plan, which means all benefits are payable from the general assets of the Company. The post-retirement health care plan include contributory, with retiree contribution levels adjusted annually. The life insurance plan provides a flat amount of noncontributory coverage and optional contributory coverage. The benefits charges allocated to the Company related to all of these plans for the years ended December 31, 2004, 2003, and 2002 were not significant. 10. Related Party Transactions Operating Agreements The Company has certain agreements whereby it generates revenues and incurs expenses with affiliated entities. The agreements are as follows: |X| Underwriting and distribution agreement with Directed Services, Inc. ("DSI"), for the variable insurance products issued by the Company. DSI is authorized to enter into agreements with broker-dealers to distribute the Company's variable products and appoint representatives of the broker-dealers as agents. For the years ended December 31, 2004, 2003 and 2002, expenses were incurred in the amounts of $371.4, $269.3, and $287.1, respectively. |X| Asset management agreement with ING Investment Management LLC ("IIM"), in which IIM provides asset management and accounting services. The Company records a fee, which is paid quarterly, based on the value of the assets under management. For the years ended December 31, 2004, 2003 and 2002, expenses were incurred in the amounts of $69.8, $62.4, and $43.4, respectively. |X| Service agreement with DSI, in which the Company provides managerial and supervisory services to DSI and earns a fee that is calculated as a percentage of average assets in the variable separate accounts. For the years ended December 31, 2004, 2003, and 2002, revenue for these services was $36.4, $27.8, and $25.8 respectively. |X| Expense sharing agreements with ING North America Insurance Corporation ("NAC") for administrative, management, financial, and information technology services, which were approved in 2001. For the years ended December 31, 2004, 2003 and 2002, expenses were incurred in the amounts of $65.0, $67.5, and $70.6, respectively. |X| Services agreement between the Company and its affiliates dated January 1, 2001, and amended effective January 1, 2002. For the years ended December 31, 2004, 2003, and 2002, net expenses related to the C-42 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- agreement were incurred in the amount of $5.1, $16.2, and $17.1, respectively. |X| ING Advisors Network, a group of broker-dealers affiliated with the Company, distributes the Company's annuity products. For the years ended December 31, 2004, 2003, and 2002, ING Advisors Network sold new contracts of $1,121.8, $765.8, and $949.1, respectively. Management and service contracts and all cost sharing arrangements with other affiliated companies are allocated in accordance with the Company's expense and cost allocation methods. Reinsurance Agreements ING USA entered into a reinsurance agreement with Security Life of Denver International, Limited. ("SLDI"), an affiliate, covering variable annuity minimum guaranteed death benefits and minimum guaranteed living benefits of variable annuities issued after January 1, 2000. In March 2003, the Company amended its reinsurance agreement with SLDI. Under this amendment, the Company terminated the reinsurance agreement for all in force and new business and recaptured all in force business reinsured under the reinsurance agreement between the Company and SLDI retroactive to January 1, 2003 and the Company reduced its reinsurance recoverable related to these liabilities by $150.1. On March 28, 2003, SLDI transferred assets to the Company in the amount of $185.6. The difference in amounts transferred on March 28, 2003 and the reduction of the reinsurance recoverables as of January 1, 2003, reflects adjustments on the investment of the reinsurance recoverable as of January 1, 2003. It also reflects adjustments on the investment income on the assets and letter of credit costs between January 1, 2003 and the date of the asset transfer. It also encompasses the net effect of a recapture fee paid in the amount of $5.0 offset by the receipt of a $24.1 negative ceding commission. The net impact of which was deferred in policy acquisition costs and is being amortized over the period of estimated future profits. The Company is a party to a Facultative Reinsurance Agreement with its affiliate, Security Life of Denver Insurance Company ("Security Life") dated August 20, 1999. Under the terms of the Agreement, the Company facultatively cedes certain GICs and funding agreements to Security Life on a 100% coinsurance basis. As of December 31, 2004, the value of GIC and funding agreement reserves ceded by the Company under this agreement was $1,262.7. Reciprocal Loan Agreement On January 1, 2004, the Company entered into a new reciprocal loan agreement with ING America Insurance Holding Company, Inc. ("ING AIH"), a Delaware corporation and affiliate, to facilitate the handling of unusual and/or unanticipated short-term cash requirements. In accordance with this C-43 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- agreement, the maximum outstanding amount to be borrowed or lent shall not exceed 3% of ING USA's total admitted assets as of the preceding December 31. This agreement supersedes previous reciprocal loan agreements between each of the Merged Companies and ING AIH, which contained various terms and maximum borrowing/lending limits. Under the previous and current reciprocal loan agreements, interest on any ING USA borrowings was charged at the rate of ING AIH's cost of funds for the interest period plus 0.15%. Interest on any ING AIH borrowings was charged at a rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration. Under these agreements, ING USA incurred interest expense of $0.2, $0.3, and $0.3, for the years ended December 31, 2004, 2003, and 2002, respectively. ING USA earned interest of $2.5, $1.0, and $1.3, for the years ended December 31, 2004, 2003 and 2002, respectively. At December 31, 2004 and 2003, ING USA had $184.2 and $120.4 receivable from ING AIH under these agreements included in due from affiliates. Notes to Affiliates The Company's promissory note in the amount of $50.0 payable to Lion was repaid on May 17, 2004. The note was issued on April 15, 1997. Interest was charged at an annual rate of 8.75% and the face amount was due on demand. The Company incurred interest expense of $1.7, $4.4, and $4.4, for the years ended December 31, 2004, 2003, and 2002, respectively. ING USA issued a 30-year surplus note in the principal amount of $35.0 on December 8, 1999, to its affiliate, Security Life of Denver Insurance Company (successor-in-interest to First Columbine Life Insurance Company), which matures on December 7, 2029. Interest is charged at an annual rate of 7.98%. Payment of the note and related accrued interest is subordinate to payments due to contractowners and claimant and beneficiary claims, as well as debts owed to all other classes of debtors, other than surplus note holders, of ING USA. Any payment of principal and/or interest made is subject to the prior approval of the Iowa Insurance Commissioner. Interest expense was $2.8, $2.8, and $2.8, for the years ended December 31, 2004, 2003, and 2002, respectively. On December 29, 2004, the Company issued surplus notes in the aggregate principal amount of $400.0 (the "Notes"), scheduled to mature on December 29, 2034, to its affiliates, ING Life Insurance and Annuity Company ("ILIAC"), ReliaStar Life and SLDI, in an offering that was exempt from the registration requirements of the Securities Act of 1933. The Notes bear interest at a rate of 6.26% per year. Any payment of principle and/or interest is subject to the prior approval of the Iowa Insurance Commissioner. Interest is scheduled to be paid semi-annually in arrears on June 29 and December 29 of each year, commencing on June 29, 2005. Interest expense was $0.2 for the year ended December 31, 2004. C-44 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Tax Sharing Agreements The Company has entered into a state tax sharing agreement with ING AIH and each of the specific subsidiaries that are parties to the agreement. The state tax agreement applies to situations in which ING AIH and all or some of the subsidiaries join in the filing of a state or local franchise, income tax, or other tax return on a consolidated, combined, or unitary basis. Capital Transactions During the years ended December 31, 2004, 2003, and 2002, ING USA received capital contributions of $230.0, $88.7, and $456.3, respectively. 11. Financing Agreements The Company maintains a revolving loan agreement with SunTrust Bank, Atlanta (the "Bank"). Under this agreement, which is due on demand, the Company can borrow up to $125 from the Bank. Interest on any borrowing accrues at an annual rate equal to a rate quoted by the Bank to the Company for the borrowing. Under the agreement, the Company incurred minimal interest expense for the years ended December 31, 2004, 2003, and 2002, respectively. At December 31, 2004 and 2003, the Company did not have any balances payable to the Bank. The Company also maintains a perpetual revolving loan agreement with Bank of New York ("BONY"). Under this agreement, the Company can borrow up to $100 from BONY. Interest on any of the Company borrowing accrues at an annual rate equal to a rate quoted by BONY to the Company for the borrowing. Under this agreement, the Company incurred minimal interest expense for the years ended December 31, 2004, 2003, and 2002. At December 31, 2004 and 2003, the Company did not have any balances payable to BONY. 12. Reinsurance At December 31, 2004, ING USA had reinsurance treaties with 17 unaffiliated reinsurers and 1 affiliated reinsurer covering a portion of the mortality risks and guaranteed death and living benefits under its variable contracts. ING USA remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. C-45 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Reinsurance ceded in force for life mortality risks were $906.0 and $1,209.4 at December 31, 2004 and 2003, respectively. At December 31, 2004 and 2003, net receivables were comprised of the following: 2004 2003 ----------------- ----------------- Claims recoverable from reinsurers $ 13.4 $ 17.1 Payable for reinsurance premiums (3.2) (6.6) Reinsured amounts due to an unaffiliated reinsurer (3.2) (3.1) Reserve credits 17.6 21.1 Reinsurance ceded 1,359.9 619.4 Other 3.6 4.0 ------------------ ----------------- Total $ 1,388.1 $ 651.9 ================== =================
Included in the accompanying financial statements are net policy benefit recoveries of $48.4, $48.4, and $60.0, for the years ended December 31, 2004, 2003, and 2002, respectively. Interest credited and other benefits to contractowners included the following premiums ceded and reinsurance recoveries: Year ended December 31, 2004 2003 2002 ----------------- ----------------- ------------------ Premiums ceded under reinsurance $ 12.5 $ 16.4 $ 59.6 Reinsurance recoveries 0.8 2.2 2.7
13. Commitments and Contingent Liabilities Leases The Company leases its office space and certain other equipment under operating leases that expire through 2017. For the years ended December 31, 2004, 2003, and 2002, rent expense for leases was $7.6, $7.4, and $6.6, respectively. The future net minimum payments under noncancelable leases for the years ended December 31, 2005 through 2009 are estimated to be $7.8, $7.8, $7.6, $7.5, and $7.5, respectively, and $39.4, thereafter. The Company pays substantially all expenses associated with its leased and subleased office properties. Expenses not paid directly by the Company are paid for by an affiliate and allocated back to the Company. C-46 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Commitments Through the normal course of investment operations, the Company commits to either purchase or sell securities, commercial mortgage loans, or money market instruments at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. At December 31, 2004 and 2003, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $175.3 and $154.0, respectively. Litigation The Company is a party to threatened or pending lawsuits/arbitrations arising from the normal conduct of business. Due to the climate in insurance and business litigation/arbitrations, suits against the Company sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Moreover, certain claims are asserted as class actions, purporting to represent a group of similarly situated individuals. While it is not possible to forecast the outcome of such lawsuits/arbitrations, in light of existing insurance, reinsurance and established reserves, it is the opinion of management that the disposition of such lawsuits/arbitrations will not have a materially adverse effect on the Company's operations or financial position. Other Regulatory Matters Regulatory Matters As with many financial services companies, the Company and its affiliates have received informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the financial services industry. In each case, the Company and its affiliates have been and are providing full cooperation. Fund Regulatory Issues Since 2002, there has been increased governmental and regulatory activity relating to mutual funds and variable insurance products. This activity has primarily focused on inappropriate trading of fund shares, revenue sharing and directed brokerage, compensation, sales practices and suitability, arrangements with service providers, pricing, compliance and controls, and adequacy of disclosure. In addition to responding to governmental and regulatory requests on fund regulatory issues, ING management, on its own initiative, conducted, through special counsel and a national accounting firm, an extensive internal review of mutual fund trading in ING insurance, retirement, and mutual fund products. The goal of this review was to identify any instances C-47 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- of inappropriate trading in those products by third parties or by ING investment professionals and other ING personnel. The internal review identified several isolated arrangements allowing third parties to engage in frequent trading of mutual funds within the variable insurance and mutual fund products of ING, and identified other circumstances where frequent trading occurred despite measures taken by ING intended to combat market timing. Each of the arrangements has been terminated and disclosed to regulators, to the independent trustees of ING Funds (U.S.) and in Company reports previously filed with the SEC pursuant to the Securities Exchange Act of 1934, as amended. An affiliate of the Company, ING Funds Distributors, LLC ("IFD") has received notice from the staff of the National Association of Securities Dealers ("NASD") that the staff has made a preliminary determination to recommend that disciplinary action be brought against IFD and one of its registered persons for violations of the NASD Conduct Rules and federal securities laws in connection with frequent trading arrangements. Other regulators, including the SEC and the New York Attorney General, are also likely to take some action with respect to the Company or certain affiliates before concluding their investigation of ING relating to fund trading. The potential outcome of such action is difficult to predict but could subject the Company or certain affiliates to adverse consequences, including, but not limited to, settlement payments, penalties, and other financial liability. It is not currently anticipated, however, that the actual outcome of such action will have a material adverse effect on ING or ING's U.S.-based operations, including the Company. ING has agreed to indemnify and hold harmless the ING Funds from all damages resulting from wrongful conduct by ING or its employees or from ING's internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the Securities and Exchange Commission ("SEC"). Management reported to the ING Funds Board that ING management believes that the total amount of any indemnification obligations will not be material to ING or ING's U.S.-based operations , including the Company. C-48 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Other Regulatory Matters The New York Attorney General and other regulators are also conducting broad inquiries and investigations involving the insurance industry. These initiatives currently focus on, among other things, compensation and other sales incentives, potential conflicts of interest, potential anti-competitive activity, marketing practices, certain financial reinsurance arrangements, and disclosure. It is likely that the scope of these investigations will further broaden before the investigations are concluded. U.S. affiliates of ING have received formal and informal requests in connection with such investigations, and are cooperating fully with each request for information. These initiatives may result in new legislation and regulation that could significantly affect the financial services industry, including businesses in which the Company is engaged. In light of these and other developments, U.S. affiliates of ING, including the Company, periodically review whether modifications to our business practices are appropriate. 14. Other Comprehensive Income The components of other comprehensive income for the years ended December 31, 2004 and 2003 were as follows: 2004 2003 ------------------ ----------------- Net unrealized capital gains (losses): Fixed maturities $ 451.4 $ 517.3 Equity securities 0.5 5.0 DAC/VOBA (258.6) (210.5) Sales inducements (6.7) - Other (2.6) (13.9) ------------------ ----------------- Subtotal 184.0 297.9 Less: Deferred income taxes (66.4) (109.8) ------------------ ----------------- Net unrealized capital gains (losses) 117.6 188.1 Minimum pension liability (4.9) - ------------------ ----------------- Net accumulated other comprehensive income $ 112.7 $ 188.1 ================== =================
C-49 ING USA Annuity and Life Insurance Company (A wholly-owned subsidiary of Lion Connecticut Holdings Inc.) Notes to Financial Statements (Dollar amounts in millions, unless otherwise stated) - -------------------------------------------------------------------------------- Changes in accumulated other comprehensive income related to changes in net unrealized gains (losses) on securities, including securities pledged, were as follows: Year ended December 31, 2004 2003 2002 ------------------ ----------------- ----------------- Unrealized holding gains (losses) arising during the year (1) $ (26.8) $ 125.9 $ 152.6 Less: reclassification adjustment for gains (losses) and other items included in net income (2) 43.7 71.0 (50.6) ------------------ ----------------- ----------------- Net unrealized gains (losses) on securities $ (70.5) $ 54.9 $ 203.2 ================== ================= =================
(1) Pretax unrealized holding gains (losses) were $(41.2), $193.7 and $234.8, for the years ended December 31, 2004, 2003 and 2002, respectively. (2) Pretax reclassification adjustments for gains (losses) and other items included in net income were $67.2, $109.2 and $(77.8), for the years ended December 31, 2004, 2003 and 2002, respectively. C-50 FINANCIAL STATEMENTS Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Year ended December 31, 2004 with Report of Independent Registered Public Accounting Firm S-1 This page intentionally left blank. Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Financial Statements Year ended December 31, 2004 Contents Report of Independent Registered Public Accounting Firm 1 Audited Financial Statements Statements of Assets and Liabilities 5 Statements of Operations 43 Statements of Changes in Net Assets 81 Notes to Financial Statements 128 This page intentionally left blank. Report of Independent Registered Public Accounting Firm The Board of Directors and Participants ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company) We have audited the accompanying statements of assets and liabilities of Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) (the "Account") as of December 31, 2004, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements. These financial statements are the responsibility of the Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. The Account is comprised of the following Divisions: ING GET Fund: ING GET Fund - Series N ING GET Fund - Series P ING GET Fund - Series Q ING GET Fund - Series R ING GET Fund - Series S ING GET Fund - Series T ING GET Fund - Series U ING GET Fund - Series V ING Investors Trust: ING AIM Mid-Cap Growth Portfolio (Service Class) ING AIM Mid-Cap Growth Portfolio (Advisor Class) ING Alliance Mid-Cap Growth Portfolio (Service Class) ING Alliance Mid-Cap Growth Portfolio (Advisor Class) ING American Funds Growth Portfolio (Service Class) ING American Funds Growth-Income Portfolio (Service Class) ING American Funds International Portfolio (Service Class) ING Capital Guardian Large Cap Value Portfolio (Service Class) ING Capital Guardian Large Cap Value Portfolio (Advisor Class) ING Capital Guardian Managed Global Portfolio (Service Class) ING Capital Guardian Managed Global Portfolio (Advisor Class) ING Capital Guardian Small Cap Portfolio (Service Class) ING Capital Guardian Small Cap Portfolio (Advisor Class) ING Developing World Portfolio (Service Class) ING Developing World Portfolio (Advisor Class) ING Eagle Asset Capital Appreciation Portfolio (Service Class) ING Eagle Asset Capital Appreciation Portfolio (Advisor Class) ING Evergreen Health Sciences (Advisor Class) ING Evergreen Health Sciences (Service Class) ING Evergreen Omega (Advisor Class) ING Evergreen Omega (Service Class) ING FMR Diversified Mid-Cap Portfolio (Service Class) ING FMR Diversified Mid-Cap Portfolio (Advisor Class) ING Goldman Sachs Tollkeeper Portfolio (Service Class) ING Goldman Sachs Tollkeeper Portfolio (Advisor Class) ING Hard Assets Portfolio (Service Class) ING Hard Assets Portfolio (Advisor Class) ING International Portfolio (Service Class) ING Investors Trust (continued): ING International Portfolio (Advisor Class) ING Janus Special Equity Portfolio (Service Class) ING Janus Special Equity Portfolio (Advisor Class) ING Jennison Equity Opportunities Portfolio (Service Class) ING Jennison Equity Opportunities Portfolio (Advisor Class) ING JPMorgan Small Cap Equity Portfolio (Service Class) ING JPMorgan Small Cap Equity Portfolio (Advisor Class) ING Julius Baer Foreign Portfolio (Service Class) ING Julius Baer Foreign Portfolio (Advisor Class) ING Legg Mason Value Portfolio (Service Class) ING Legg Mason Value Portfolio (Advisor Class) ING LifeStyle Aggressive Growth ING LifeStyle Growth ING LifeStyle Moderate Growth ING LifeStyle Moderate ING Limited Maturity Bond Portfolio (Service Class) ING Liquid Assets Portfolio (Service Class) ING Liquid Assets Portfolio (Advisor Class) ING Marsico Growth Portfolio (Service Class) ING Marsico Growth Portfolio (Advisor Class) ING Mercury Focus Value Portfolio (Service Class) ING Mercury Focus Value Portfolio (Advisor Class) ING Mercury Large Cap Growth Portfolio (Service Class) ING Mercury Large Cap Growth Portfolio (Advisor Class) ING MFS(R) Mid-Cap Growth Portfolio (Service Class) ING MFS(R) Mid-Cap Growth Portfolio (Advisor Class) ING MFS(R) Total Return Portfolio (Service Class) ING MFS(R) Total Return Portfolio (Advisor Class) ING Oppenheimer Main Street Portfolio (Service Class) ING Oppenheimer Main Street Portfolio (Advisor Class) ING PIMCO Core Bond Portfolio (Service Class) ING PIMCO Core Bond Portfolio (Advisor Class) ING PIMCO High Yield ING Salomon Brothers All Cap Portfolio (Service Class) ING Salomon Brothers All Cap Portfolio (Advisor Class) ING Salomon Brothers Investors Portfolio (Service Class) ING Salomon Brothers Investors Portfolio (Advisor Class) ING T. Rowe Price Capital Appreciation Portfolio (Service Class) ING T. Rowe Price Capital Appreciation Portfolio (Advisor Class) ING T. Rowe Price Equity Income Portfolio (Service Class) ING T. Rowe Price Equity Income Portfolio (Advisor Class) ING UBS U.S. Balanced Portfolio (Service Class) ING UBS U.S. Balanced Portfolio (Advisor Class) ING Van Kampen Equity Growth Portfolio (Service Class) ING Van Kampen Equity Growth Portfolio (Advisor Class) ING Van Kampen Global Franchise Portfolio (Service Class) ING Van Kampen Global Franchise Portfolio (Advisor Class) ING Van Kampen Growth and Income Portfolio (Service Class) ING Van Kampen Growth and Income Portfolio (Advisor Class) ING Van Kampen Real Estate Portfolio (Service Class) ING Van Kampen Real Estate Portfolio (Advisor Class) ING Partners, Inc.: ING American Century Select Portfolio (Service Class) ING American Century Small Cap Value Portfolio (Service Class) ING Baron Small Cap Growth Portfolio (Service Class) ING JPMorgan International Portfolio (Service Class) ING JPMorgan Mid Cap Value Portfolio (Service Class) ING MFS(R) Capital Opportunities Portfolio (Initial Class) ING MFS(R) Capital Opportunities Portfolio (Service Class) ING OpCap Balanced Value Portfolio (Service Class) ING Oppenheimer Global Portfolio (Service Class) ING PIMCO Total Return Portfolio (Service Class) ING Salomon Brothers Aggressive Growth Portfolio (Service Class) ING Salomon Brothers Fundamental Value Portfolio (Service Class) ING Salomon Brothers Investors Value Portfolio (Service Class) ING T. Rowe Price Diversified Mid Cap Growth Portfolio (Service Class) ING Partners, Inc (continued): ING T. Rowe Price Growth Equity Portfolio (Service Class) ING UBS U.S. Large Cap Equity Portfolio (Service Class) ING Van Kampen Comstock Fund (Service Class) ING Van Kampen Equity and Income Portfolio (Service Class) ING Variable Insurance Trust: ING GET U.S. Core Portfolio - Series 1 ING GET U.S. Core Portfolio - Series 2 (Guaranteed) ING GET U.S. Core Portfolio - Series 3 ING GET U.S. Core Portfolio - Series 4 ING GET U.S. Core Portfolio - Series 5 ING GET U.S. Core Portfolio - Series 6 ING GET U.S. Core Portfolio - Series 7 ING VP Worldwide Growth Portfolio ING Variable Portfolios, Inc.: ING VP Balanced Portfolio (Service Class) ING VP Growth Portfolio (Service Class) ING VP Index Plus LargeCap Portfolio (Service Class) ING VP Index Plus MidCap Portfolio (Service Class) ING VP Index Plus SmallCap Portfolio (Service Class) ING VP Intermediate Bond Portfolio (Service Class) ING VP International Equity Portfolio (Service Class) ING VP Small Company Portfolio (Service Class) ING VP Value Opportunity Portfolio (Service Class) ING Variable Products Trust: ING VP Convertible Portfolio (Service Class) ING VP Financial Services Portfolio (Service Class) ING VP Growth and Income Portfolio (Service Class) ING VP Growth Opportunities Portfolio (Service Class) ING VP International Value Portfolio (Service Class) ING VP LargeCap Growth Portfolio (Service Class) ING VP MagnaCap Portfolio (Service Class) ING VP MidCap Opportunities Portfolio (Service Class) ING VP SmallCap Opportunities Portfolio (Service Class) AIM Variable Insurance Funds: AIM V.I. Capital Appreciation Fund (Class II) AIM V.I. Core Equity Fund (Class II) AIM V.I. Dent Demographic Trends Fund (Class II) AIM V.I. Financial Services Fund AIM V.I. Growth Fund (Class II) AIM V.I. Health Sciences Fund AIM V.I. Leisure Fund AIM V.I. Premier Equity Fund (Class II) AIM V.I. Utilities Fund AllianceBernstein Variable Products Series Fund, Inc.: AllianceBernstein Growth and Income Portfolio (Class B) AllianceBernstein Premier Growth Portfolio (Class B) AllianceBernstein Value Portfolio (Class B) Fidelity Variable Insurance Products Fund: Fidelity(R) VIP Equity-Income Portfolio (Class S2) Fidelity(R) VIP Growth Portfolio (Class S2) Fidelity(R) VIP Contrafund(R) Portfolio (Class S2) Fidelity(R) VIP Overseas Portfolio (Class S2) Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities Fund (Class 2) Goldman Sachs Asset Management, L.P.: ING Goldman Sachs(R) Capital Growth Greenwich Street Series Fund: Greenwich Appreciation Portfolio Janus Aspen Series: Janus Aspen Series Balanced Portfolio (Class S) Janus Aspen Series Flexible Income Portfolio (Class S) Janus Aspen Series Growth Portfolio (Class S) Janus Aspen Series Worldwide Growth Portfolio (Class S) Liberty Variable Insurance Trust: Colonial Small Cap Value Fund (Class B) Liberty Variable Series: Liberty Asset Allocation Fund Variable Series (Class A) Liberty Equity Fund Variable Series (Class A) Liberty Federal Securities Fund Variable Series (Class A) Liberty Small Company Growth Fund Variable Series (Class A) Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities Fund/VA (Class S) Oppenheimer Strategic Bond Fund/VA (Class S) PIMCO Variable Insurance Trust: PIMCO High Yield Portfolio PIMCO StocksPLUS Growth and Income Portfolio Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT Portfolio (Class II) Pioneer Fund VCT Portfolio (Class II) Pioneer Mid-Cap Value VCT Pioneer Small Company VCT Portfolio (Class II) ProFunds VP: ProFund VP Bull ProFund VP Europe 30 ProFund VP Rising Rates Opportunity ProFund VP Small Cap Prudential Series Fund, Inc.: Jennison Portfolio (Class II) SP William Blair International Growth Portfolio (Class II) Putnam Variable Trust: Putnam VT Discovery Growth Fund (Class IB) Putnam VT Growth and Income (Class IB) Putnam VT International Growth and Income (Class IB) Travelers Series Fund Inc.: Smith Barney High Income Smith Barney International All Cap Growth Smith Barney Large Cap Value Smith Barney Money Market UBS Series Trust: UBS U.S. Allocation Portfolio (Class I) Wells Fargo: Wells Fargo VT Asset Allocation Wells Fargo VT Equity Income Fund Wells Fargo VT Equity Value Wells Fargo VT Large Company Growth Wells Fargo VT Money Market Wells Fargo VT Small Cap Growth Wells Fargo VT Total Return Bond We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Account's internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures also included confirmation of securities owned as of December 31, 2004, by correspondence with the transfer agents. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the Divisions comprising the Separate Account B of ING USA Annuity and Life Insurance Company at December 31, 2004, and the results of their operations and changes in their net assets for the periods disclosed in the financial statements, in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Atlanta, Georgia March 15, 2005 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING GET ING GET ING GET ING GET ING GET Fund- Fund- Fund- Fund- Fund- Series N Series P Series Q Series R Series S ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 17,681 $ 84,987 $ 107,157 $ 113,414 $ 134,164 ----------- ----------- ----------- ----------- ----------- Total assets 17,681 84,987 107,157 113,414 134,164 Liabilities Payable to ING USA Annuity and Life Insurance Company 2 4 22 24 18 ----------- ----------- ----------- ----------- ----------- Total liabilities 2 4 22 24 18 ----------- ----------- ----------- ----------- ----------- Net assets $ 17,679 $ 84,983 $ 107,135 $ 113,390 $ 134,146 =========== =========== =========== =========== =========== Net assets Accumulation units $ 17,679 $ 84,983 $ 107,135 $ 113,390 $ 134,146 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 17,679 $ 84,983 $ 107,135 $ 113,390 $ 134,146 =========== =========== =========== =========== =========== Total number of mutual fund shares 1,752,322 8,439,651 10,333,324 10,649,190 12,814,161 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 17,650 $ 84,778 $ 103,677 $ 106,840 $ 128,541 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 5 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING AIM ING AIM Mid-Cap Mid-Cap ING GET ING GET ING GET Growth Growth Fund- Fund- Fund- (Service (Advisor Series T Series U Series V Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 136,456 $ 143,430 $ 231,081 $ 226,742 $ 6,536 ----------- ----------- ----------- ----------- ----------- Total assets 136,456 143,430 231,081 226,742 6,536 Liabilities Payable to ING USA Annuity and Life Insurance Company 9 32 51 55 1 ----------- ----------- ----------- ----------- ----------- Total liabilities 9 32 51 55 1 ----------- ----------- ----------- ----------- ----------- Net assets $ 136,447 $ 143,398 $ 231,030 $ 226,687 $ 6,535 =========== =========== =========== =========== =========== Net assets Accumulation units $ 136,447 $ 143,398 $ 231,030 $ 226,557 $ 6,535 Contracts in payout (annuitization) period -- -- -- 130 -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 136,447 $ 143,398 $ 231,030 $ 226,687 $ 6,535 =========== =========== =========== =========== =========== Total number of mutual fund shares 13,020,636 13,764,877 23,131,238 16,265,565 470,543 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 130,666 $ 137,961 $ 231,496 $ 173,332 $ 5,778 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 6 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING Alliance ING Alliance Mid-Cap Mid-Cap ING ING American Growth Growth American Funds ING American (Service (Advisor Funds Growth- Funds Class) Class) Growth Income International ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 517,122 $ 12,842 $ 854,182 $ 661,236 $ 316,903 ----------- ----------- ----------- ----------- ----------- Total assets 517,122 12,842 854,182 661,236 316,903 Liabilities Payable to ING USA Annuity and Life Insurance Company 108 2 119 86 39 ----------- ----------- ----------- ----------- ----------- Total liabilities 108 2 119 86 39 ----------- ----------- ----------- ----------- ----------- Net assets $ 517,014 $ 12,840 $ 854,063 $ 661,150 $ 316,864 =========== =========== =========== =========== =========== Net assets Accumulation units $ 517,014 $ 12,840 $ 854,063 $ 661,150 $ 316,864 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 517,014 $ 12,840 $ 854,063 $ 661,150 $ 316,864 =========== =========== =========== =========== =========== Total number of mutual fund shares 29,035,482 723,097 16,788,165 17,905,105 19,769,380 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 341,863 $ 10,668 $ 776,358 $ 610,914 $ 279,135 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 7 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING Capital ING Capital ING Capital ING Capital Guardian Guardian Guardian Guardian ING Capital Large Cap Large Cap Managed Managed Guardian Value Value Global Global Small Cap (Service Class) (Advisor Class) (Service Class) (Advisor Class) (Service Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 648,768 $ 10,042 $ 383,155 $ 4,767 $ 538,135 ----------- ----------- ----------- ----------- ----------- Total assets 648,768 10,042 383,155 4,767 538,135 Liabilities Payable to ING USA Annuity and Life Insurance Company 103 1 62 -- 114 ----------- ----------- ----------- ----------- ----------- Total liabilities 103 1 62 -- 114 ----------- ----------- ----------- ----------- ----------- Net assets $ 648,665 $ 10,041 $ 383,093 $ 4,767 $ 538,021 =========== =========== =========== =========== =========== Net assets Accumulation units $ 648,665 $ 10,041 $ 382,995 $ 4,767 $ 537,992 Contracts in payout (annuitization) period -- -- 98 -- 29 ----------- ----------- ----------- ----------- ----------- Total net assets $ 648,665 $ 10,041 $ 383,093 $ 4,767 $ 538,021 =========== =========== =========== =========== =========== Total number of mutual fund shares 56,219,061 871,694 30,701,494 383,543 45,643,301 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 535,847 $ 8,317 $ 306,280 $ 4,173 $ 392,490 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 8 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING Capital ING ING ING Eagle ING Eagle Guardian Developing Developing Asset Capital Asset Capital Small Cap World World Appreciation Appreciation (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 7,940 $ 151,735 $ 7,218 $ 223,289 $ 1,905 ----------- ----------- ----------- ----------- ----------- Total assets 7,940 151,735 7,218 223,289 1,905 Liabilities Payable to ING USA Annuity and Life Insurance Company 1 29 1 42 -- ----------- ----------- ----------- ----------- ----------- Total liabilities 1 29 1 42 -- ----------- ----------- ----------- ----------- ----------- Net assets $ 7,939 $ 151,706 $ 7,217 $ 223,247 $ 1,905 =========== =========== =========== =========== =========== Net assets Accumulation units $ 7,939 $ 151,645 $ 7,217 $ 223,238 $ 1,905 Contracts in payout (annuitization) period -- 61 -- 9 -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 7,939 $ 151,706 $ 7,217 $ 223,247 $ 1,905 =========== =========== =========== =========== =========== Total number of mutual fund shares 674,623 13,933,426 665,264 12,255,153 104,703 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 6,899 $ 123,259 $ 5,968 $ 178,928 $ 1,590 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 9 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING ING ING FMR Evergreen Evergreen ING ING Diversified Health Health Evergreen Evergreen Mid-Cap Sciences Sciences Omega Omega (Service (Advisor Class) (Service Class) (Advisor Class) (Service Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 2,731 $ 29,374 $ 317 $ 3,037 $ 252,407 ----------- ----------- ----------- ----------- ----------- Total assets 2,731 29,374 317 3,037 252,407 Liabilities Payable to ING USA Annuity and Life Insurance Company -- 3 -- -- 42 ----------- ----------- ----------- ----------- ----------- Total liabilities -- 3 -- -- 42 ----------- ----------- ----------- ----------- ----------- Net assets $ 2,731 $ 29,371 $ 317 $ 3,037 $ 252,365 =========== =========== =========== =========== =========== Net assets Accumulation units $ 2,731 $ 29,371 $ 317 $ 3,037 $ 252,365 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 2,731 $ 29,371 $ 317 $ 3,037 $ 252,365 =========== =========== =========== =========== =========== Total number of mutual fund shares 273,410 2,937,373 30,144 288,104 20,587,855 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 2,566 $ 27,699 $ 299 $ 2,885 $ 188,912 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 10 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING FMR ING ING Diversified Goldman Sachs Goldman Sachs ING Hard ING Hard Mid-Cap Tollkeeper Tollkeeper Assets Assets (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 9,745 $ 68,263 $ 4,338 $ 187,973 $ 10,191 ----------- ----------- ----------- ----------- ----------- Total assets 9,745 68,263 4,338 187,973 10,191 Liabilities Payable to ING USA Annuity and Life Insurance Company 1 12 1 28 2 ----------- ----------- ----------- ----------- ----------- Total liabilities 1 12 1 28 2 ----------- ----------- ----------- ----------- ----------- Net assets $ 9,744 $ 68,251 $ 4,337 $ 187,945 $ 10,189 =========== =========== =========== =========== =========== Net assets Accumulation units $ 9,744 $ 68,251 $ 4,337 $ 187,911 $ 10,189 Contracts in payout (annuitization) period -- -- -- 34 -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 9,744 $ 68,251 $ 4,337 $ 187,945 $ 10,189 =========== =========== =========== =========== =========== Total number of mutual fund shares 796,186 9,126,098 581,555 11,965,153 649,934 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 7,688 $ 56,345 $ 3,774 $ 161,084 $ 9,006 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 11 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING Janus ING Janus ING Jennison ING ING Special Special Equity International International Equity Equity Opportunities (Service (Advisor (Service (Advisor (Service Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 177,674 $ 9,038 $ 65,692 $ 2,177 $ 315,006 ----------- ----------- ----------- ----------- ----------- Total assets 177,674 9,038 65,692 2,177 315,006 Liabilities Payable to ING USA Annuity and Life Insurance Company 34 1 14 -- 76 ----------- ----------- ----------- ----------- ----------- Total liabilities 34 1 14 -- 76 ----------- ----------- ----------- ----------- ----------- Net assets $ 177,640 $ 9,037 $ 65,678 $ 2,177 $ 314,930 =========== =========== =========== =========== =========== Net assets Accumulation units $ 177,640 $ 9,037 $ 65,678 $ 2,177 $ 314,760 Contracts in payout (annuitization) period -- -- -- -- 170 ----------- ----------- ----------- ----------- ----------- Total net assets $ 177,640 $ 9,037 $ 65,678 $ 2,177 $ 314,930 =========== =========== =========== =========== =========== Total number of mutual fund shares 17,300,276 881,754 5,966,548 198,232 21,356,308 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 143,117 $ 7,204 $ 51,304 $ 1,818 $ 237,272 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 12 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING Jennison ING JPMorgan ING JPMorgan ING ING Equity Small Small Julius Baer Julius Baer Opportunities Cap Equity Cap Equity Foreign Foreign (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 3,292 $ 158,649 $ 32,614 $ 185,622 $ 17,518 ----------- ----------- ----------- ----------- ----------- Total assets 3,292 158,649 32,614 185,622 17,518 Liabilities Payable to ING USA Annuity and Life Insurance Company -- 22 4 30 2 ----------- ----------- ----------- ----------- ----------- Total liabilities -- 22 4 30 2 ----------- ----------- ----------- ----------- ----------- Net assets $ 3,292 $ 158,627 $ 32,610 $ 185,592 $ 17,516 =========== =========== =========== =========== =========== Net assets Accumulation units $ 3,292 $ 158,627 $ 32,610 $ 185,592 $ 17,516 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 3,292 $ 158,627 $ 32,610 $ 185,592 $ 17,516 =========== =========== =========== =========== =========== Total number of mutual fund shares 223,774 11,866,070 2,448,499 15,189,977 1,433,534 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 2,760 $ 128,683 $ 25,761 $ 160,953 $ 15,133 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 13 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING Legg ING Legg ING ING Mason Value Mason Value LifeStyle ING LifeStyle (Service (Advisor Aggressive LifeStyle Moderate Class) Class) Growth Growth Growth ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 288,374 $ 13,917 $ 214,588 $ 475,452 $ 453,932 ----------- ----------- ----------- ----------- ----------- Total assets 288,374 13,917 214,588 475,452 453,932 Liabilities Payable to ING USA Annuity and Life Insurance Company 48 2 22 -- 45 ----------- ----------- ----------- ----------- ----------- Total liabilities 48 2 22 -- 45 ----------- ----------- ----------- ----------- ----------- Net assets $ 288,326 $ 13,915 $ 214,566 $ 475,452 $ 453,887 =========== =========== =========== =========== =========== Net assets Accumulation units $ 288,326 $ 13,915 $ 214,566 $ 475,452 $ 453,887 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 288,326 $ 13,915 $ 214,566 $ 475,452 $ 453,887 =========== =========== =========== =========== =========== Total number of mutual fund shares 28,751,194 1,388,881 18,873,202 42,262,420 41,005,626 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 240,121 $ 11,720 $ 193,404 $ 435,349 $ 421,259 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 14 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING ING Liquid ING Liquid ING Marsico ING Limited Assets Assets Growth LifeStyle Maturity (Service (Advisor (Service Moderate Bond Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 211,846 $ 357,370 $ 618,391 $ 9,498 $ 813,644 ----------- ----------- ----------- ----------- ----------- Total assets 211,846 357,370 618,391 9,498 813,644 Liabilities Payable to ING USA Annuity and Life Insurance Company 19 65 110 1 212 ----------- ----------- ----------- ----------- ----------- Total liabilities 19 65 110 1 212 ----------- ----------- ----------- ----------- ----------- Net assets $ 211,827 $ 357,305 $ 618,281 $ 9,497 $ 813,432 =========== =========== =========== =========== =========== Net assets Accumulation units $ 211,827 $ 357,234 $ 618,267 $ 9,497 $ 813,432 Contracts in payout (annuitization) period -- 71 14 -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 211,827 $ 357,305 $ 618,281 $ 9,497 $ 813,432 =========== =========== =========== =========== =========== Total number of mutual fund shares 19,382,043 32,195,535 618,391,025 9,498,131 56,074,696 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 199,474 $ 369,629 $ 618,391 $ 9,498 $ 577,617 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 15 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING Mercury ING Mercury ING Marsico ING Mercury ING Mercury Large Cap Large Cap Growth Focus Value Focus Value Growth Growth (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 15,097 $ 40,919 $ 2,419 $ 18,863 $ 2,165 ----------- ----------- ----------- ----------- ----------- Total assets 15,097 40,919 2,419 18,863 2,165 Liabilities Payable to ING USA Annuity and Life Insurance Company 2 6 -- 2 -- ----------- ----------- ----------- ----------- ----------- Total liabilities 2 6 -- 2 -- ----------- ----------- ----------- ----------- ----------- Net assets $ 15,095 $ 40,913 $ 2,419 $ 18,861 $ 2,165 =========== =========== =========== =========== =========== Net assets Accumulation units $ 15,095 $ 40,913 $ 2,419 $ 18,861 $ 2,165 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 15,095 $ 40,913 $ 2,419 $ 18,861 $ 2,165 =========== =========== =========== =========== =========== Total number of mutual fund shares 1,043,343 3,500,380 207,287 1,799,937 207,385 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 12,680 $ 37,524 $ 2,255 $ 17,748 $ 2,040 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 16 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING MFS(R) ING MFS(R) ING Mid-Cap Mid-Cap ING MFS(R) ING MFS(R) Oppenheimer Growth Growth Total Return Total Return Main Street (Service (Advisor (Service (Advisor (Service Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 661,736 $ 17,095 $ 1,279,599 $ 35,151 $ 487,752 ----------- ----------- ----------- ----------- ----------- Total assets 661,736 17,095 1,279,599 35,151 487,752 Liabilities Payable to ING USA Annuity and Life Insurance Company 164 2 227 4 114 ----------- ----------- ----------- ----------- ----------- Total liabilities 164 2 227 4 114 ----------- ----------- ----------- ----------- ----------- Net assets $ 661,572 $ 17,093 $ 1,279,372 $ 35,147 $ 487,638 =========== =========== =========== =========== =========== Net assets Accumulation units $ 661,515 $ 17,093 $ 1,279,372 $ 35,147 $ 487,638 Contracts in payout (annuitization) period 57 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 661,572 $ 17,093 $ 1,279,372 $ 35,147 $ 487,638 =========== =========== =========== =========== =========== Total number of mutual fund shares 56,947,978 1,474,990 68,136,245 1,878,739 29,294,423 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 456,394 $ 14,217 $ 1,115,976 $ 31,513 $ 398,887 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 17 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING ING Salomon Oppenheimer ING PIMCO ING PIMCO Brothers Main Street Core Bond Core Bond All Cap (Advisor (Service (Advisor ING PIMCO (Service Class) Class) Class) High Yield Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 2,848 $ 581,680 $ 27,858 $ 655,007 $ 427,312 ----------- ----------- ----------- ----------- ----------- Total assets 2,848 581,680 27,858 655,007 427,312 Liabilities Payable to ING USA Annuity and Life Insurance Company -- 85 3 146 76 ----------- ----------- ----------- ----------- ----------- Total liabilities -- 85 3 146 76 ----------- ----------- ----------- ----------- ----------- Net assets $ 2,848 $ 581,595 $ 27,855 $ 654,861 $ 427,236 =========== =========== =========== =========== =========== Net assets Accumulation units $ 2,848 $ 581,595 $ 27,855 $ 654,861 $ 427,236 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 2,848 $ 581,595 $ 27,855 $ 654,861 $ 427,236 =========== =========== =========== =========== =========== Total number of mutual fund shares 171,339 53,267,441 2,555,787 62,381,651 33,409,875 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 2,426 $ 563,664 $ 27,602 $ 625,635 $ 362,404 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 18 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING Salomon ING Salomon ING Salomon ING T. Rowe ING T. Rowe Brothers Brothers Brothers Price Capital Price Capital All Cap Investors Investors Appreciation Appreciation (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 14,781 $ 145,344 $ 1,920 $ 1,867,107 $ 55,433 ----------- ----------- ----------- ----------- ----------- Total assets 14,781 145,344 1,920 1,867,107 55,433 Liabilities Payable to ING USA Annuity and Life Insurance Company 2 22 -- 303 6 ----------- ----------- ----------- ----------- ----------- Total liabilities 2 22 -- 303 6 ----------- ----------- ----------- ----------- ----------- Net assets $ 14,779 $ 145,322 $ 1,920 $ 1,866,804 $ 55,427 =========== =========== =========== =========== =========== Net assets Accumulation units $ 14,779 $ 145,322 $ 1,920 $ 1,866,241 $ 55,427 Contracts in payout (annuitization) period -- -- -- 563 -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 14,779 $ 145,322 $ 1,920 $ 1,866,804 $ 55,427 =========== =========== =========== =========== =========== Total number of mutual fund shares 1,158,407 12,660,603 167,395 76,208,466 2,268,131 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 13,054 $ 125,811 $ 1,665 $ 1,425,105 $ 47,298 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 19 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING T. Rowe ING T. Rowe ING ING ING Price Equity Price Equity UBS U.S. UBS U.S. Van Kampen Income Income Balanced Balanced Equity Growth (Service (Advisor (Service (Advisor (Service Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 916,344 $ 23,094 $ 102,119 $ 3,204 $ 40,335 ----------- ----------- ----------- ----------- ----------- Total assets 916,344 23,094 102,119 3,204 40,335 Liabilities Payable to ING USA Annuity and Life Insurance Company 154 3 17 -- 6 ----------- ----------- ----------- ----------- ----------- Total liabilities 154 3 17 -- 6 ----------- ----------- ----------- ----------- ----------- Net assets $ 916,190 $ 23,091 $ 102,102 $ 3,204 $ 40,329 =========== =========== =========== =========== =========== Net assets Accumulation units $ 915,658 $ 23,091 $ 102,102 $ 3,204 $ 40,329 Contracts in payout (annuitization) period 532 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 916,190 $ 23,091 $ 102,102 $ 3,204 $ 40,329 =========== =========== =========== =========== =========== Total number of mutual fund shares 66,691,676 1,685,726 10,715,503 336,936 3,912,226 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 768,602 $ 19,599 $ 91,608 $ 2,925 $ 35,208 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 20 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING ING ING ING ING Van Kampen Van Kampen Van Kampen Van Kampen Van Kampen Equity Growth Global Global Growth and Growth and (Advisor Franchise Franchise Income Income Class) (Service Class) (Advisor Class) (Service Class) (Advisor Class) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 9,812 $ 117,224 $ 39,836 $ 772,951 $ 53,337 ----------- ----------- ----------- ----------- ----------- Total assets 9,812 117,224 39,836 772,951 53,337 Liabilities Payable to ING USA Annuity and Life Insurance Company 1 16 5 155 $ 6 ----------- ----------- ----------- ----------- ----------- Total liabilities 1 16 5 155 6 ----------- ----------- ----------- ----------- ----------- Net assets $ 9,811 $ 117,208 $ 39,831 $ 772,796 $ 53,331 =========== =========== =========== =========== =========== Net assets Accumulation units $ 9,811 $ 117,208 $ 39,831 $ 772,703 $ 53,331 Contracts in payout (annuitization) period -- -- -- 93 -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 9,811 $ 117,208 $ 39,831 $ 772,796 $ 53,331 =========== =========== =========== =========== =========== Total number of mutual fund shares 954,496 9,281,389 3,164,090 31,104,675 2,151,573 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 8,772 $ 98,769 $ 33,919 $ 702,604 $ 44,870 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 21 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING ING ING Van Kampen Van Kampen ING American Real Estate Real Estate American Century ING Baron (Service (Advisor Century Small Cap Small Cap Class) Class) Select Value Growth ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 557,477 $ 17,801 $ 291 $ 389 $ 1,448 ----------- ----------- ----------- ----------- ----------- Total assets 557,477 17,801 291 389 1,448 Liabilities Payable to ING USA Annuity and Life Insurance Company 100 2 -- -- -- ----------- ----------- ----------- ----------- ----------- Total liabilities 100 2 -- -- -- ----------- ----------- ----------- ----------- ----------- Net assets $ 557,377 $ 17,799 $ 291 $ 389 $ 1,448 =========== =========== =========== =========== =========== Net assets Accumulation units $ 557,284 $ 17,799 $ 291 $ 389 $ 1,448 Contracts in payout (annuitization) period 93 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 557,377 $ 17,799 $ 291 $ 389 $ 1,448 =========== =========== =========== =========== =========== Total number of mutual fund shares 20,191,119 645,436 31,425 31,848 96,811 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 383,864 $ 13,444 $ 262 $ 342 $ 1,229 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 22 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING MFS(R) ING ING MFS(R) Capital ING JPMorgan Capital Opportunities ING OpCap JPMorgan Mid Cap Opportunities (Service Balanced International Value (Initial Class) Class) Value ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 63,875 $ 21,151 $ 3,939 $ 444 $ 1,031 ----------- ----------- ----------- ----------- ----------- Total assets 63,875 21,151 3,939 444 1,031 Liabilities Payable to ING USA Annuity and Life Insurance Company 10 2 1 -- -- ----------- ----------- ----------- ----------- ----------- Total liabilities 10 2 1 -- -- ----------- ----------- ----------- ----------- ----------- Net assets $ 63,865 $ 21,149 $ 3,938 $ 444 $ 1,031 =========== =========== =========== =========== =========== Net assets Accumulation units $ 63,865 $ 21,149 $ 3,938 $ 444 $ 1,031 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 63,865 $ 21,149 $ 3,938 $ 444 $ 1,031 =========== =========== =========== =========== =========== Total number of mutual fund shares 5,218,574 1,522,736 144,815 16,418 76,789 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 57,490 $ 18,954 $ 3,301 $ 358 $ 944 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 23 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING ING ING ING Salomon Salomon Salomon ING ING PIMCO Brothers Brothers Brothers Oppenheimer Total Aggressive Fundamental Investors Global Return Growth Value Value ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 3,060 $ 2,116 $ 113,051 $ 809 $ 651 ----------- ----------- ----------- ----------- ----------- Total assets 3,060 2,116 113,051 809 651 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- 20 -- -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- 20 -- -- ----------- ----------- ----------- ----------- ----------- Net assets $ 3,060 $ 2,116 $ 113,031 $ 809 $ 651 =========== =========== =========== =========== =========== Net assets Accumulation units $ 3,060 $ 2,116 $ 113,031 $ 809 $ 651 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 3,060 $ 2,116 $ 113,031 $ 809 $ 651 =========== =========== =========== =========== =========== Total number of mutual fund shares 243,276 193,092 2,851,228 44,970 45,957 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 2,746 $ 2,082 $ 105,877 $ 707 $ 580 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 24 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING T. Rowe Price ING ING Van Diversified T. Rowe Price ING UBS U.S. ING Van Kampen Mid Cap Growth Large Cap Kampen Equity and Growth Equity Equity Comstock Income ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 529 $ 2,982 $ 674 $ 103,296 $ 256 ----------- ----------- ----------- ----------- ----------- Total assets 529 2,982 674 103,296 256 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- -- 12 -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- -- 12 -- ----------- ----------- ----------- ----------- ----------- Net assets $ 529 $ 2,982 $ 674 $ 103,284 $ 256 =========== =========== =========== =========== =========== Net assets Accumulation units $ 529 $ 2,982 $ 674 $ 103,284 $ 256 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 529 $ 2,982 $ 674 $ 103,284 $ 256 =========== =========== =========== =========== =========== Total number of mutual fund shares 66,220 60,262 79,139 8,404,891 7,660 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 484 $ 2,508 $ 615 $ 87,506 $ 232 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 25 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING GET ING GET ING GET ING GET ING GET U.S. Core U.S. Core U.S. Core U.S. Core U.S. Core Portfolio - Portfolio - Portfolio - Portfolio - Portfolio - Series 1 Series 2 Series 3 Series 4 Series 5 ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 170,878 $ 113,378 $ 139,184 $ 76,388 $ 43,094 ----------- ----------- ----------- ----------- ----------- Total assets 170,878 113,378 139,184 76,388 43,094 Liabilities Payable to ING USA Annuity and Life Insurance Company 23 10 23 15 6 ----------- ----------- ----------- ----------- ----------- Total liabilities 23 10 23 15 6 ----------- ----------- ----------- ----------- ----------- Net assets $ 170,855 $ 113,368 $ 139,161 $ 76,373 $ 43,088 =========== =========== =========== =========== =========== Net assets Accumulation units $ 170,855 $ 113,368 $ 139,161 $ 76,373 $ 43,088 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 170,855 $ 113,368 $ 139,161 $ 76,373 $ 43,088 =========== =========== =========== =========== =========== Total number of mutual fund shares 16,090,185 10,859,982 13,739,822 7,261,244 4,076,994 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 161,054 $ 108,670 $ 137,565 $ 72,682 $ 40,844 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 26 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING GET ING GET U.S. Core U.S. Core ING VP Portfolio - Portfolio - Worldwide ING VP ING VP Series 6 Series 7 Growth Balanced Growth ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 60,320 $ 1,268 $ 56,083 $ 3,120 $ 356 ----------- ----------- ----------- ----------- ----------- Total assets 60,320 1,268 56,083 3,120 356 Liabilities Payable to ING USA Annuity and Life Insurance Company 6 -- 10 -- -- ----------- ----------- ----------- ----------- ----------- Total liabilities 6 -- 10 -- -- ----------- ----------- ----------- ----------- ----------- Net assets $ 60,314 $ 1,268 $ 56,073 $ 3,120 $ 356 =========== =========== =========== =========== =========== Net assets Accumulation units $ 60,314 $ 1,268 $ 56,073 $ 3,120 $ 356 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 60,314 $ 1,268 $ 56,073 $ 3,120 $ 356 =========== =========== =========== =========== =========== Total number of mutual fund shares 5,960,491 126,727 7,418,413 233,717 37,516 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 59,767 $ 1,268 $ 45,955 $ 2,892 $ 305 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 27 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP ING VP ING VP Index Plus Index Plus Index Plus Intermediate International LargeCap MidCap SmallCap Bond Equity ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 128,169 $ 79,297 $ 68,993 $ 203,403 $ 265 ----------- ----------- ----------- ----------- ----------- Total assets 128,169 79,297 68,993 203,403 265 Liabilities Payable to ING USA Annuity and Life Insurance Company 14 8 8 38 -- ----------- ----------- ----------- ----------- ----------- Total liabilities 14 8 8 38 -- ----------- ----------- ----------- ----------- ----------- Net assets $ 128,155 $ 79,289 $ 68,985 $ 203,365 $ 265 =========== =========== =========== =========== =========== Net assets Accumulation units $ 128,155 $ 79,289 $ 68,985 $ 203,365 $ 265 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 128,155 $ 79,289 $ 68,985 $ 203,365 $ 265 =========== =========== =========== =========== =========== Total number of mutual fund shares 8,701,222 4,393,192 4,237,928 15,538,800 30,443 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 114,944 $ 68,735 $ 60,009 $ 213,464 $ 237 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 28 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP ING VP Small Value ING VP Financial Growth and Company Opportunity Convertible Services Income ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 1,267 $ 3,479 $ 8,609 $ 14,252 $ 1,776 ----------- ----------- ----------- ----------- ----------- Total assets 1,267 3,479 8,609 14,252 1,776 Liabilities Payable to ING USA Annuity and Life Insurance Company -- 1 1 2 -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- 1 1 2 -- ----------- ----------- ----------- ----------- ----------- Net assets $ 1,267 $ 3,478 $ 8,608 $ 14,250 $ 1,776 =========== =========== =========== =========== =========== Net assets Accumulation units $ 1,267 $ 3,478 $ 8,608 $ 14,250 $ 1,776 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 1,267 $ 3,478 $ 8,608 $ 14,250 $ 1,776 =========== =========== =========== =========== =========== Total number of mutual fund shares 63,672 265,152 730,837 1,289,806 91,844 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 1,075 $ 3,049 $ 8,238 $ 13,241 $ 1,545 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 29 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP ING VP International LargeCap ING VP MidCap SmallCap Value Growth MagnaCap Opportunities Opportunities ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 1,244 $ 1,873 $ 29,644 $ 31,960 $ 103,716 ----------- ----------- ----------- ----------- ----------- Total assets 1,244 1,873 29,644 31,960 103,716 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- 5 5 18 ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- 5 5 18 ----------- ----------- ----------- ----------- ----------- Net assets $ 1,244 $ 1,873 $ 29,639 $ 31,955 $ 103,698 =========== =========== =========== =========== =========== Net assets Accumulation units $ 1,244 $ 1,873 $ 29,639 $ 31,955 $ 103,698 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 1,244 $ 1,873 $ 29,639 $ 31,955 $ 103,698 =========== =========== =========== =========== =========== Total number of mutual fund shares 96,295 205,849 3,107,349 4,706,883 6,426,020 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 1,111 $ 1,401 $ 24,466 $ 29,801 $ 84,187 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 30 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
AIM V.I. AIM V.I. AIM V.I. Dent AIM V.I. Capital Core Demographic Financial AIM V.I. Appreciation Equity Trends Services Growth ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 69 $ 162 $ 67,233 $ 55,521 $ 3,975 ----------- ----------- ----------- ----------- ----------- Total assets 69 162 67,233 55,521 3,975 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- 13 10 -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- 13 10 -- ----------- ----------- ----------- ----------- ----------- Net assets $ 69 $ 162 $ 67,220 $ 55,511 $ 3,975 =========== =========== =========== =========== =========== Net assets Accumulation units $ 69 $ 162 $ 67,220 $ 55,511 $ 3,975 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 69 $ 162 $ 67,220 $ 55,511 $ 3,975 =========== =========== =========== =========== =========== Total number of mutual fund shares 3,086 7,224 12,005,901 3,800,174 249,537 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 60 $ 130 $ 59,809 $ 49,673 $ 3,432 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 31 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
Alliance- AIM V.I. AIM V.I. Bernstein Health AIM V.I. Premier AIM V.I. Growth and Sciences Leisure Equity Utilities Income ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 92,045 $ 55,929 $ 157 $ 77,563 $ 16,978 ----------- ----------- ----------- ----------- ----------- Total assets 92,045 55,929 157 77,563 16,978 Liabilities Payable to ING USA Annuity and Life Insurance Company 16 9 -- 12 2 ----------- ----------- ----------- ----------- ----------- Total liabilities 16 9 -- 12 2 ----------- ----------- ----------- ----------- ----------- Net assets $ 92,029 $ 55,920 $ 157 $ 77,551 $ 16,976 =========== =========== =========== =========== =========== Net assets Accumulation units $ 92,029 $ 55,920 $ 157 $ 77,551 $ 16,976 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 92,029 $ 55,920 $ 157 $ 77,551 $ 16,976 =========== =========== =========== =========== =========== Total number of mutual fund shares 4,870,111 4,517,701 7,423 4,968,830 711,270 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 82,285 $ 46,212 $ 136 $ 67,111 $ 14,420 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 32 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
Alliance- Fidelity(R) Bernstein Alliance- VIP Fidelity(R) Fidelity(R) Premier Bernstein Equity- VIP VIP Growth Value Income Growth Contrafund(R) ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 4,895 $ 10,411 $ 245,447 $ 239,997 $ 46,863 ----------- ----------- ----------- ----------- ----------- Total assets 4,895 10,411 245,447 239,997 46,863 Liabilities Payable to ING USA Annuity and Life Insurance Company 1 1 33 38 4 ----------- ----------- ----------- ----------- ----------- Total liabilities 1 1 33 38 4 ----------- ----------- ----------- ----------- ----------- Net assets $ 4,894 $ 10,410 $ 245,414 $ 239,959 $ 46,859 =========== =========== =========== =========== =========== Net assets Accumulation units $ 4,894 $ 10,410 $ 245,414 $ 239,959 $ 46,859 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 4,894 $ 10,410 $ 245,414 $ 239,959 $ 46,859 =========== =========== =========== =========== =========== Total number of mutual fund shares 211,813 830,209 9,782,657 7,585,230 1,778,474 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 4,176 $ 8,535 $ 210,061 $ 221,480 $ 39,098 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 33 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
Franklin ING Goldman Fidelity(R) Small Cap Sachs(R) Janus Aspen VIP Value Capital Greenwich Series Overseas Securities Growth Appreciation Balanced ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 458 $ 1,018 $ 9 $ 626 $ 4,286 ----------- ----------- ----------- ----------- ----------- Total assets 458 1,018 9 626 4,286 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net assets $ 458 $ 1,018 $ 9 $ 626 $ 4,286 =========== =========== =========== =========== =========== Net assets Accumulation units $ 458 $ 1,018 $ 9 $ 626 $ 4,286 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 458 $ 1,018 $ 9 $ 626 $ 4,286 =========== =========== =========== =========== =========== Total number of mutual fund shares 26,339 65,019 771 26,723 169,823 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 438 $ 851 $ 8 $ 564 $ 3,842 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 34 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
Janus Aspen Janus Aspen Series Janus Aspen Series Colonial Liberty Flexible Series Worldwide Small Cap Asset Income Growth Growth Value Allocation ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 1,768 $ 752 $ 6,720 $ 240,464 $ 601 ----------- ----------- ----------- ----------- ----------- Total assets 1,768 752 6,720 240,464 601 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- 1 40 -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- 1 40 -- ----------- ----------- ----------- ----------- ----------- Net assets $ 1,768 $ 752 $ 6,719 $ 240,424 $ 601 =========== =========== =========== =========== =========== Net assets Accumulation units $ 1,768 $ 752 $ 6,719 $ 240,424 $ 601 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 1,768 $ 752 $ 6,719 $ 240,424 $ 601 =========== =========== =========== =========== =========== Total number of mutual fund shares 139,111 37,907 252,447 14,211,821 40,522 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 1,821 $ 652 $ 5,908 $ 212,225 $ 464 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 35 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
Liberty Liberty Small Oppenheimer Oppenheimer Liberty Federal Company Global Strategic Equity Securities Growth Securities Bond ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 618 $ 90 $ 81 $ 7,640 $ 1,496 ----------- ----------- ----------- ----------- ----------- Total assets 618 90 81 7,640 1,496 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net assets $ 618 $ 90 $ 81 $ 7,640 $ 1,496 =========== =========== =========== =========== =========== Net assets Accumulation units $ 618 $ 90 $ 81 $ 7,640 $ 1,496 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 618 $ 90 $ 81 $ 7,640 $ 1,496 =========== =========== =========== =========== =========== Total number of mutual fund shares 40,465 8,153 7,332 260,494 282,724 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 759 $ 90 $ 62 $ 6,312 $ 1,440 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 36 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
PIMCO StocksPLUS Pioneer Pioneer Pioneer Growth and Equity- Pioneer Mid-Cap Small Income Income VCT Fund VCT Value VCT Company VCT ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 171,059 $ 1,659 $ 83,536 $ 485,776 $ 7,983 ----------- ----------- ----------- ----------- ----------- Total assets 171,059 1,659 83,536 485,776 7,983 Liabilities Payable to ING USA Annuity and Life Insurance Company 36 -- 11 76 1 ----------- ----------- ----------- ----------- ----------- Total liabilities 36 -- 11 76 1 ----------- ----------- ----------- ----------- ----------- Net assets $ 171,023 $ 1,659 $ 83,525 $ 485,700 $ 7,982 =========== =========== =========== =========== =========== Net assets Accumulation units $ 171,023 $ 1,659 $ 83,525 $ 485,700 $ 7,982 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 171,023 $ 1,659 $ 83,525 $ 485,700 $ 7,982 =========== =========== =========== =========== =========== Total number of mutual fund shares 16,953,307 80,214 4,072,929 19,876,266 621,272 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 137,935 $ 1,422 $ 70,417 $ 390,078 $ 6,561 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 37 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
ProFund VP ProFund ProFund Rising Rates ProFund VP VP Bull VP Europe 30 Opportunity Small Cap Jennison ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 106,166 $ 37,243 $ 52,385 $ 147,670 $ 67,096 ----------- ----------- ----------- ----------- ----------- Total assets 106,166 37,243 52,385 147,670 67,096 Liabilities Payable to ING USA Annuity and Life Insurance Company 21 6 7 26 11 ----------- ----------- ----------- ----------- ----------- Total liabilities 21 6 7 26 11 ----------- ----------- ----------- ----------- ----------- Net assets $ 106,145 $ 37,237 $ 52,378 $ 147,644 $ 67,085 =========== =========== =========== =========== =========== Net assets Accumulation units $ 106,145 $ 37,237 $ 52,378 $ 147,644 $ 67,085 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 106,145 $ 37,237 $ 52,378 $ 147,644 $ 67,085 =========== =========== =========== =========== =========== Total number of mutual fund shares 3,847,982 1,316,951 2,520,950 4,109,937 3,733,801 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 100,535 $ 34,698 $ 57,841 $ 135,163 $ 53,095 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 38 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
SP Putnam VT William Blair Putnam VT Putnam VT International International Discovery Growth and Growth and Smith Barney Growth Growth Income Income High Income ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 108,396 $ 3,031 $ 3,362 $ 3,609 $ 265 ----------- ----------- ----------- ----------- ----------- Total assets 108,396 3,031 3,362 3,609 265 Liabilities Payable to ING USA Annuity and Life Insurance Company 16 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total liabilities 16 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net assets $ 108,380 $ 3,031 $ 3,362 $ 3,609 $ 265 =========== =========== =========== =========== =========== Net assets Accumulation units $ 108,380 $ 3,031 $ 3,362 $ 3,609 $ 265 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 108,380 $ 3,031 $ 3,362 $ 3,609 $ 265 =========== =========== =========== =========== =========== Total number of mutual fund shares 16,011,202 609,763 132,162 267,161 35,160 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 93,154 $ 2,484 $ 2,717 $ 2,604 $ 297 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 39 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
Smith Barney International Smith Barney Smith Barney Wells Fargo All Cap Large Money UBS U.S. VT Asset Growth Cap Value Market Allocation Allocation ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 214 $ 422 $ 37 $ 5,828 $ 1,880 ----------- ----------- ----------- ----------- ----------- Total assets 214 422 37 5,828 1,880 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- -- 1 -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- -- 1 -- ----------- ----------- ----------- ----------- ----------- Net assets $ 214 $ 422 $ 37 $ 5,827 $ 1,880 =========== =========== =========== =========== =========== Net assets Accumulation units $ 214 $ 422 $ 37 $ 5,827 $ 1,880 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 214 $ 422 $ 37 $ 5,827 $ 1,880 =========== =========== =========== =========== =========== Total number of mutual fund shares 16,473 23,391 36,716 433,015 144,922 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 260 $ 447 $ 37 $ 4,927 $ 1,787 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 40 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands)
Wells Fargo Wells Fargo Wells Fargo VT Large Wells Fargo Wells Fargo VT Equity VT Equity Company VT Money VT Small Cap Income Value Growth Market Growth ----------- ----------- ----------- ----------- ----------- Assets Investments in mutual funds at fair value $ 882 $ 211 $ 2,266 $ 369 $ 569 ----------- ----------- ----------- ----------- ----------- Total assets 882 211 2,266 369 569 Liabilities Payable to ING USA Annuity and Life Insurance Company -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total liabilities -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net assets $ 882 $ 211 $ 2,266 $ 369 $ 569 =========== =========== =========== =========== =========== Net assets Accumulation units $ 882 $ 211 $ 2,266 $ 369 $ 569 Contracts in payout (annuitization) period -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total net assets $ 882 $ 211 $ 2,266 $ 369 $ 569 =========== =========== =========== =========== =========== Total number of mutual fund shares 54,020 23,147 255,140 368,901 72,486 =========== =========== =========== =========== =========== Cost of mutual fund shares $ 828 $ 199 $ 2,159 $ 369 $ 514 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 41 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Assets and Liabilities December 31, 2004 (Dollars in thousands) Wells Fargo VT Total Return Bond ------------ Assets Investments in mutual funds at fair value $ 484 ----------- Total assets 484 Liabilities Payable to ING USA Annuity and Life Insurance Company -- ----------- Total liabilities -- ----------- Net assets $ 484 =========== Net assets Accumulation units $ 484 Contracts in payout (annuitization) period -- ----------- Total net assets $ 484 =========== Total number of mutual fund shares 48,039 =========== Cost of mutual fund shares $ 489 =========== The accompanying notes are an integral part of these financial statements. 42 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING GET ING GET ING GET ING GET ING GET Fund- Fund- Fund- Fund- Fund- Series N Series P Series Q Series R Series S ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 710 $ 3,482 $ 4,188 $ 3,903 $ 3,847 ----------- ----------- ----------- ----------- ----------- Total investment income 710 3,482 4,188 3,903 3,847 Expenses: Mortality and expense risk and other charges 415 1,969 2,451 2,607 3,118 Annual administrative charges 5 26 32 35 42 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 29 117 88 104 113 Other contract charges -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 449 2,112 2,571 2,746 3,273 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) 261 1,370 1,617 1,157 574 Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 66 510 1,136 1,440 1,657 Capital gains distributions -- -- -- -- 2,217 ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 66 510 1,136 1,440 3,874 Net unrealized appreciation (depreciation) of investments (428) (2,585) (3,137) (2,109) (3,896) ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ (101) $ (705) $ (384) $ 488 $ 552 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 43 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING AIM ING AIM Mid-Cap Mid-Cap ING GET ING GET ING GET Growth Growth Fund- Fund- Fund- (Service (Advisor Series T Series U Series V Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 4,138 $ 2,974 $ 2,816 $ -- $ -- ----------- ----------- ----------- ----------- ----------- Total investment income 4,138 2,974 2,816 -- -- Expenses: Mortality and expense risk and other charges 3,231 3,356 5,706 3,599 78 Annual administrative charges 48 48 76 107 2 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 143 110 269 147 -- Other contract charges 2 6 5 479 27 ----------- ----------- ----------- ----------- ----------- Total expenses 3,424 3,520 6,056 4,332 107 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) 714 (546) (3,240) (4,332) (107) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 1,715 1,630 (526) 11,600 139 Capital gains distributions 2,440 6,476 -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 4,155 8,106 (526) 11,600 139 Net unrealized appreciation (depreciation) of investments (4,487) (6,055) 4,290 3,148 334 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 382 $ 1,505 $ 524 $ 10,416 $ 366 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 44 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING Alliance ING Alliance Mid-Cap Mid-Cap ING ING American Growth Growth American Funds ING American (Service (Advisor Funds Growth- Funds Class) Class) Growth Income International ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ -- $ 66 $ 620 $ 404 ----------- ----------- ----------- ----------- ----------- Total investment income -- -- 66 620 404 Expenses: Mortality and expense risk and other charges 7,867 142 8,225 6,309 2,854 Annual administrative charges 210 3 174 132 61 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 245 2 136 93 45 Other contract charges 824 48 1,939 1,334 626 ----------- ----------- ----------- ----------- ----------- Total expenses 9,146 195 10,474 7,868 3,586 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (9,146) (195) (10,408) (7,248) (3,182) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 48,319 335 788 464 1,024 Capital gains distributions -- -- 3 2 6 ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 48,319 335 791 466 1,030 Net unrealized appreciation (depreciation) of investments 33,101 1,460 71,574 44,785 35,050 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 72,274 $ 1,600 $ 61,957 $ 38,003 $ 32,898 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 45 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING Capital ING Capital ING Capital ING Capital Guardian Guardian Guardian Guardian ING Capital Large Cap Large Cap Managed Managed Guardian Value Value Global Global Small Cap (Service Class) (Advisor Class) (Service Class) (Advisor Class) (Service Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 1,149 $ 19 $ 1,721 $ 27 $ 998 ----------- ----------- ----------- ----------- ----------- Total investment income 1,149 19 1,721 27 998 Expenses: Mortality and expense risk and other charges 10,419 137 5,762 57 8,514 Annual administrative charges 207 2 123 1 214 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 227 -- 106 -- 236 Other contract charges 1,847 48 870 19 1,121 ----------- ----------- ----------- ----------- ----------- Total expenses 12,700 187 6,861 77 10,085 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (11,551) (168) (5,140) (50) (9,087) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 1,609 229 6,718 74 18,245 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 1,609 229 6,718 74 18,245 Net unrealized appreciation (depreciation) of investments 50,165 562 29,309 328 15,248 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 40,223 $ 623 $ 30,887 $ 352 $ 24,406 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 46 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING Capital ING ING ING Eagle ING Eagle Guardian Developing Developing Asset Capital Asset Capital Small Cap World World Appreciation Appreciation (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 23 $ 497 $ 29 $ 1,950 $ 18 ----------- ----------- ----------- ----------- ----------- Total investment income 23 497 29 1,950 18 Expenses: Mortality and expense risk and other charges 100 1,960 69 3,438 25 Annual administrative charges 1 52 2 84 -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges -- 49 1 96 -- Other contract charges 36 298 24 332 9 ----------- ----------- ----------- ----------- ----------- Total expenses 137 2,359 96 3,950 34 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (114) (1,862) (67) (2,000) (16) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 115 14,124 104 9 57 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 115 14,124 104 9 57 Net unrealized appreciation (depreciation) of investments 467 5,151 905 27,689 159 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 468 $ 17,413 $ 942 $ 25,698 $ 200 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 47 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING ING ING FMR Evergreen Evergreen ING ING Diversified Health Health Evergreen Evergreen Mid-Cap Sciences Sciences Omega Omega (Service (Advisor Class) (Service Class) (Advisor Class) (Service Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ -- $ 1 $ 10 $ 268 ----------- ----------- ----------- ----------- ----------- Total investment income -- -- 1 10 268 Expenses: Mortality and expense risk and other charges 16 229 1 12 3,230 Annual administrative charges -- 6 -- -- 75 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges -- 5 -- -- 71 Other contract charges 4 44 -- 2 642 ----------- ----------- ----------- ----------- ----------- Total expenses 20 284 1 14 4,018 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (20) (284) -- (4) (3,750) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (5) (766) -- (11) 1,305 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions (5) (766) -- (11) 1,305 Net unrealized appreciation (depreciation) of investments 165 1,675 18 152 42,022 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 140 $ 625 $ 18 $ 137 $ 39,577 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 48 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING FMR ING ING Diversified Goldman Sachs Goldman Sachs ING Hard ING Hard Mid-Cap Tollkeeper Tollkeeper Assets Assets (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 15 $ -- $ -- $ 1,555 $ 90 ----------- ----------- ----------- ----------- ----------- Total investment income 15 -- -- 1,555 90 Expenses: Mortality and expense risk and other charges 102 993 56 2,734 106 Annual administrative charges 2 21 1 54 2 Minimum death benefit guarantee charges -- -- -- 1 -- Contingent deferred sales charges 3 18 -- 71 1 Other contract charges 34 272 21 412 37 ----------- ----------- ----------- ----------- ----------- Total expenses 141 1,304 78 3,272 146 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (126) (1,304) (78) (1,717) (56) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 73 3,351 121 14,263 78 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 73 3,351 121 14,263 78 Net unrealized appreciation (depreciation) of investments 1,442 3,214 311 (5,715) 542 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 1,389 $ 5,261 $ 354 $ 6,831 $ 564 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 49 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING Janus ING Janus ING Jennison ING ING Special Special Equity International International Equity Equity Opportunities (Service (Advisor (Service (Advisor (Service Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 1,555 $ 86 $ -- $ -- $ 918 ----------- ----------- ----------- ----------- ----------- Total investment income 1,555 86 -- -- 918 Expenses: Mortality and expense risk and other charges 2,736 116 952 26 5,031 Annual administrative charges 67 2 25 1 150 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 74 1 27 -- 147 Other contract charges 300 41 207 9 427 ----------- ----------- ----------- ----------- ----------- Total expenses 3,177 160 1,211 36 5,755 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (1,622) (74) (1,211) (36) (4,837) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 11,866 68 1,711 58 (6,568) Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 11,866 68 1,711 58 (6,568) Net unrealized appreciation (depreciation) of investments 11,741 1,021 7,344 237 41,710 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 21,985 $ 1,015 $ 7,844 $ 259 $ 30,305 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 50 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING Jennison ING JPMorgan ING JPMorgan ING ING Equity Small Small Julius Baer Julius Baer Opportunities Cap Equity Cap Equity Foreign Foreign (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 14 $ -- $ -- $ 125 $ 3 ----------- ----------- ----------- ----------- ----------- Total investment income 14 -- -- 125 3 Expenses: Mortality and expense risk and other charges 42 1,667 333 1,828 140 Annual administrative charges 1 37 6 39 3 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges -- 35 3 59 1 Other contract charges 14 431 117 454 46 ----------- ----------- ----------- ----------- ----------- Total expenses 57 2,170 459 2,380 190 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (43) (2,170) (459) (2,255) (187) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 45 4,833 142 2,003 60 Capital gains distributions -- 156 33 1,002 92 ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 45 4,989 175 3,005 152 Net unrealized appreciation (depreciation) of investments 274 19,884 5,221 21,788 2,071 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 276 $ 22,703 $ 4,937 $ 22,538 $ 2,036 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 51 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING Legg ING ING ING Legg Mason Value LifeStyle ING LifeStyle Mason Value (Advisor Aggressive LifeStyle Moderate (Service Class) Class) Growth Growth Growth ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 365 $ 21 $ -- $ -- $ -- ----------- ----------- ----------- ----------- ----------- Total investment income 365 21 -- -- -- Expenses: Mortality and expense risk and other charges 3,966 146 1,054 2,217 2,182 Annual administrative charges 88 2 26 10 57 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 87 -- 5 39 39 Other contract charges 791 49 247 485 423 ----------- ----------- ----------- ----------- ----------- Total expenses 4,932 197 1,332 2,751 2,701 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (4,567) (176) (1,332) (2,751) (2,701) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (1,706) 268 75 -- 72 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions (1,706) 268 75 -- 72 Net unrealized appreciation (depreciation) of investments 35,252 1,283 21,184 40,103 32,673 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 28,979 $ 1,375 $ 19,927 $ 37,352 $ 30,044 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 52 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING ING Liquid ING Liquid ING Marsico ING Limited Assets Assets Growth LifeStyle Maturity (Service (Advisor (Service Moderate Bond Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ 18,706 $ 7,148 $ 82 $ -- ----------- ----------- ----------- ----------- ----------- Total investment income -- 18,706 7,148 82 -- Expenses: Mortality and expense risk and other charges 993 7,018 12,978 171 12,415 Annual administrative charges 24 128 540 4 413 Minimum death benefit guarantee charges -- 1 3 -- -- Contingent deferred sales charges 19 240 31,843 263 437 Other contract charges 187 638 1,362 52 1,347 ----------- ----------- ----------- ----------- ----------- Total expenses 1,223 8,025 46,726 490 14,612 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (1,223) 10,681 (39,578) (408) (14,612) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 297 7,549 -- -- 15,605 Capital gains distributions -- 2,950 -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 297 10,499 -- -- 15,605 Net unrealized appreciation (depreciation) of investments 12,372 (23,234) -- -- 74,252 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 11,446 $ (2,054) $ (39,578) $ (408) $ 75,245 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 53 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING Mercury ING Mercury ING Marsico ING Mercury ING Mercury Large Cap Large Cap Growth Focus Value Focus Value Growth Growth (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ 90 $ 3 $ -- $ -- ----------- ----------- ----------- ----------- ----------- Total investment income -- 90 3 -- -- Expenses: Mortality and expense risk and other charges 194 594 27 261 25 Annual administrative charges 3 11 1 4 -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 3 8 -- 5 -- Other contract charges 68 150 8 74 9 ----------- ----------- ----------- ----------- ----------- Total expenses 268 763 36 344 34 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (268) (673) (33) (344) (34) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 147 1,905 37 1,149 28 Capital gains distributions -- 1,722 101 1,433 161 ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 147 3,627 138 2,582 189 Net unrealized appreciation (depreciation) of investments 1,450 (99) 68 (842) 4 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 1,329 $ 2,855 $ 173 $ 1,396 $ 159 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 54 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING MFS(R) ING MFS(R) ING Mid-Cap Mid-Cap ING MFS(R) ING MFS(R) Oppenheimer Growth Growth Total Return Total Return Main Street (Service (Advisor (Service (Advisor (Service Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ -- $ 22,816 $ 649 $ 3,882 ----------- ----------- ----------- ----------- ----------- Total investment income -- -- 22,816 649 3,882 Expenses: Mortality and expense risk and other charges 10,424 223 19,857 433 7,826 Annual administrative charges 324 4 451 6 230 Minimum death benefit guarantee charges 1 -- -- -- -- Contingent deferred sales charges 289 1 527 3 243 Other contract charges 1,289 77 2,404 142 744 ----------- ----------- ----------- ----------- ----------- Total expenses 12,327 305 23,239 584 9,043 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (12,327) (305) (423) 65 (5,161) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 29,832 326 5,847 109 (18,834) Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 29,832 326 5,847 109 (18,834) Net unrealized appreciation (depreciation) of investments 58,083 1,638 100,058 2,269 72,757 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 75,588 $ 1,659 $ 105,482 $ 2,443 $ 48,762 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 55 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING ING Salomon Oppenheimer ING PIMCO ING PIMCO Brothers Main Street Core Bond Core Bond All Cap (Advisor (Service (Advisor ING PIMCO (Service Class) Class) Class) High Yield Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 25 $ 15,122 $ 723 $ 23,893 $ 750 ----------- ----------- ----------- ----------- ----------- Total investment income 25 15,122 723 23,893 750 Expenses: Mortality and expense risk and other charges 40 9,279 357 6,791 7,212 Annual administrative charges 1 166 5 272 150 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges -- 276 15 212 167 Other contract charges 11 1,361 125 1,051 1,193 ----------- ----------- ----------- ----------- ----------- Total expenses 52 11,082 502 8,326 8,722 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (27) 4,040 221 15,567 (7,972) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 102 6,985 91 (3) (139) Capital gains distributions -- 904 43 -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 102 7,889 134 (3) (139) Net unrealized appreciation (depreciation) of investments 175 2,633 164 29,372 29,687 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 250 $ 14,562 $ 519 $ 44,936 $ 21,576 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 56 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING Salomon ING Salomon ING Salomon ING T. Rowe ING T. Rowe Brothers Brothers Brothers Price Capital Price Capital All Cap Investors Investors Appreciation Appreciation (Advisor (Service (Advisor (Service (Advisor Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 40 $ 914 $ 12 $ 18,082 $ 579 ----------- ----------- ----------- ----------- ----------- Total investment income 40 914 12 18,082 579 Expenses: Mortality and expense risk and other charges 170 2,432 24 25,848 627 Annual administrative charges 3 44 -- 574 10 Minimum death benefit guarantee charges -- -- -- 1 -- Contingent deferred sales charges 1 55 -- 637 3 Other contract charges 61 423 6 3,878 216 ----------- ----------- ----------- ----------- ----------- Total expenses 235 2,954 30 30,938 856 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (195) (2,040) (18) (12,856) (277) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 24 (507) 58 11,710 83 Capital gains distributions -- -- -- 12,010 355 ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 24 (507) 58 23,720 438 Net unrealized appreciation (depreciation) of investments 825 12,669 80 210,797 5,502 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 654 $ 10,122 $ 120 $ 221,661 $ 5,663 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 57 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING T. Rowe ING T. Rowe ING ING ING Price Equity Price Equity UBS U.S. UBS U.S. Van Kampen Income Income Balanced Balanced Equity Growth (Service (Advisor (Service (Advisor (Service Class) Class) Class) Class) Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 7,507 $ 198 $ 686 $ 24 $ -- ----------- ----------- ----------- ----------- ----------- Total investment income 7,507 198 686 24 -- Expenses: Mortality and expense risk and other charges 12,798 288 1,465 34 602 Annual administrative charges 285 5 32 1 12 Minimum death benefit guarantee charges 3 -- -- -- -- Contingent deferred sales charges 263 2 62 -- 11 Other contract charges 2,139 98 257 12 159 ----------- ----------- ----------- ----------- ----------- Total expenses 15,488 393 1,816 47 784 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (7,981) (195) (1,130) (23) (784) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 3,016 266 (2) 10 395 Capital gains distributions 4,474 112 -- -- 187 ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 7,490 378 (2) 10 582 Net unrealized appreciation (depreciation) of investments 99,781 2,005 8,967 228 2,087 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 99,290 $ 2,188 $ 7,835 $ 215 $ 1,885 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 58 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING ING ING ING ING Van Kampen Van Kampen Van Kampen Van Kampen Van Kampen Equity Growth Global Global Growth and Growth and (Advisor Franchise Franchise Income Income Class) (Service Class) (Advisor Class) (Service Class) (Advisor Class) ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ -- $ -- $ 7,059 $ 538 ----------- ----------- ----------- ----------- ----------- Total investment income -- -- -- 7,059 538 Expenses: Mortality and expense risk and other charges 133 1,442 422 11,547 631 Annual administrative charges 2 27 8 308 10 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 2 22 5 292 5 Other contract charges 45 371 143 1,023 204 ----------- ----------- ----------- ----------- ----------- Total expenses 182 1,862 578 13,170 850 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (182) (1,862) (578) (6,111) (312) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 137 2,226 91 5,315 281 Capital gains distributions 45 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 182 2,226 91 5,315 281 Net unrealized appreciation (depreciation) of investments 462 9,205 3,601 84,022 4,986 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 462 $ 9,569 $ 3,114 $ 83,226 $ 4,955 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 59 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING ING ING Van Kampen Van Kampen ING American Real Estate Real Estate American Century ING Baron (Service (Advisor Century Small Cap Small Cap Class) Class) Select Value Growth ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 6,906 $ 229 $ -- $ 1 $ -- ----------- ----------- ----------- ----------- ----------- Total investment income 6,906 229 -- 1 -- Expenses: Mortality and expense risk and other charges 6,744 186 2 2 10 Annual administrative charges 180 3 -- -- -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 178 2 -- -- -- Other contract charges 1,136 64 -- -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 8,238 255 2 2 10 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (1,332) (26) (2) (1) (10) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 14,287 167 -- 14 168 Capital gains distributions 4,275 136 -- 24 -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 18,562 303 -- 38 168 Net unrealized appreciation (depreciation) of investments 113,247 3,445 9 22 126 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 130,477 $ 3,722 $ 7 $ 59 $ 284 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 60 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING MFS(R) ING ING MFS(R) Capital ING JPMorgan Capital Opportunities ING OpCap JPMorgan Mid Cap Opportunities (Service Balanced International Value (Initial Class) Class) Value ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 445 $ 30 $ 16 $ 1 $ 6 ----------- ----------- ----------- ----------- ----------- Total investment income 445 30 16 1 6 Expenses: Mortality and expense risk and other charges 578 226 60 4 7 Annual administrative charges 16 3 1 -- -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 11 5 3 -- -- Other contract charges 124 5 1 -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 729 239 65 4 7 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (284) (209) (49) (3) (1) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 1,350 381 47 -- 34 Capital gains distributions -- 617 -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 1,350 998 47 -- 34 Net unrealized appreciation (depreciation) of investments 5,819 1,706 380 45 37 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 6,885 $ 2,495 $ 378 $ 42 $ 70 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 61 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING ING ING ING Salomon Salomon Salomon ING ING PIMCO Brothers Brothers Brothers Oppenheimer Total Aggressive Fundamental Investors Global Return Growth Value Value ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ -- $ -- $ -- $ 5 ----------- ----------- ----------- ----------- ----------- Total investment income -- -- -- -- 5 Expenses: Mortality and expense risk and other charges 36 18 1,177 6 5 Annual administrative charges 1 -- 25 -- -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 2 -- 14 -- -- Other contract charges 1 -- 322 -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 40 18 1,538 6 5 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (40) (18) (1,538) (6) -- Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 168 8 834 25 18 Capital gains distributions 25 19 -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 193 27 834 25 18 Net unrealized appreciation (depreciation) of investments 153 60 6,465 27 27 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 306 $ 69 $ 5,761 $ 46 $ 45 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 62 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING T. Rowe Price ING ING Van Diversified T. Rowe Price ING UBS U.S. ING Van Kampen Mid Cap Growth Large Cap Kampen Equity and Growth Equity Equity Comstock Income ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ 1 $ 2 $ -- $ -- ----------- ----------- ----------- ----------- ----------- Total investment income -- 1 2 -- -- Expenses: Mortality and expense risk and other charges 5 22 3 1,095 1 Annual administrative charges -- -- -- 19 -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges -- -- -- 12 -- Other contract charges -- -- -- 288 -- ----------- ----------- ----------- ----------- ----------- Total expenses 5 22 3 1,414 1 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (5) (21) (1) (1,414) (1) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 29 87 11 85 4 Capital gains distributions -- -- -- 338 -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 29 87 11 423 4 Net unrealized appreciation (depreciation) of investments (6) 170 46 11,516 15 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 18 $ 236 $ 56 $ 10,525 $ 18 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 63 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING GET ING GET ING GET ING GET ING GET U.S. Core U.S. Core U.S. Core U.S. Core U.S. Core Portfolio - Portfolio - Portfolio - Portfolio - Portfolio - Series 1 Series 2 Series 3 Series 4 Series 5 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 1,302 $ 130 $ 2 $ -- $ -- ----------- ----------- ----------- ----------- ----------- Total investment income 1,302 130 2 -- -- Expenses: Mortality and expense risk and other charges 4,159 2,879 2,726 1,014 353 Annual administrative charges 52 34 52 19 8 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 117 93 58 19 8 Other contract charges 2 2 -- 1 -- ----------- ----------- ----------- ----------- ----------- Total expenses 4,330 3,008 2,836 1,053 369 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (3,028) (2,878) (2,834) (1,053) (369) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 2,429 1,606 (277) 370 475 Capital gains distributions 206 1 -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 2,635 1,607 (277) 370 475 Net unrealized appreciation (depreciation) of investments 2,488 3,468 1,616 3,706 2,250 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 2,095 $ 2,197 $ (1,495) $ 3,023 $ 2,356 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 64 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING GET ING GET U.S. Core U.S. Core ING VP Portfolio - Portfolio - Worldwide ING VP ING VP Series 6 Series 7 Growth Balanced Growth ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ -- $ 411 $ 45 $ -- ----------- ----------- ----------- ----------- ----------- Total investment income -- -- 411 45 -- Expenses: Mortality and expense risk and other charges 88 -- 925 20 3 Annual administrative charges 6 -- 20 -- -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 1 -- 21 -- -- Other contract charges -- -- 203 -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 95 -- 1,169 20 3 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (95) -- (758) 25 (3) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 2 -- 26 41 3 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 2 -- 26 41 3 Net unrealized appreciation (depreciation) of investments 553 -- 4,200 154 19 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 460 $ -- $ 3,468 $ 220 $ 19 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 65 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP ING VP ING VP Index Plus Index Plus Index Plus Intermediate International LargeCap MidCap SmallCap Bond Equity ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 954 $ 148 $ 34 $ 12,183 $ 2 ----------- ----------- ----------- ----------- ----------- Total investment income 954 148 34 12,183 2 Expenses: Mortality and expense risk and other charges 1,503 648 551 2,473 2 Annual administrative charges 26 13 12 55 -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 21 12 10 85 -- Other contract charges 326 41 42 472 -- ----------- ----------- ----------- ----------- ----------- Total expenses 1,876 714 615 3,085 2 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (922) (566) (581) 9,098 -- Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 1,034 480 1,704 (705) 27 Capital gains distributions -- -- 178 5,928 -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 1,034 480 1,882 5,223 27 Net unrealized appreciation (depreciation) of investments 8,335 7,708 6,657 (10,965) 7 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 8,447 $ 7,622 $ 7,958 $ 3,356 $ 34 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 66 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP ING VP Small Value ING VP Financial Growth and Company Opportunity Convertible Services Income ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 3 $ 22 $ 155 $ 42 $ 37 ----------- ----------- ----------- ----------- ----------- Total investment income 3 22 155 42 37 Expenses: Mortality and expense risk and other charges 10 45 97 94 15 Annual administrative charges -- 1 1 3 -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges -- 1 3 3 -- Other contract charges -- -- 2 18 -- ----------- ----------- ----------- ----------- ----------- Total expenses 10 47 103 118 15 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (7) (25) 52 (76) 22 Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 59 (28) 144 115 45 Capital gains distributions -- -- 227 135 -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 59 (28) 371 250 45 Net unrealized appreciation (depreciation) of investments 81 300 23 1,011 43 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 133 $ 247 $ 446 $ 1,185 $ 110 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 67 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP ING VP Growth International LargeCap ING VP MidCap Opportunities Value Growth MagnaCap Opportunities ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ 8 $ 60 $ 401 $ -- ----------- ----------- ----------- ----------- ----------- Total investment income -- 8 60 401 -- Expenses: Mortality and expense risk and other charges 147 7 26 474 358 Annual administrative charges (3) -- 1 10 14 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 3 -- -- 10 6 Other contract charges 29 -- -- 80 85 ----------- ----------- ----------- ----------- ----------- Total expenses 176 7 27 574 463 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (176) 1 33 (173) (463) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 3,956 79 77 (52) (155) Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 3,956 79 77 (52) (155) Net unrealized appreciation (depreciation) of investments (2,788) 75 88 2,072 2,117 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 992 $ 155 $ 198 $ 1,847 $ 1,499 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 68 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
AIM V.I. ING VP AIM V.I. AIM V.I. Dent AIM V.I. SmallCap Capital Core Demographic Financial Opportunities Appreciation Equity Trends Services ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ -- $ 1 $ -- $ 393 ----------- ----------- ----------- ----------- ----------- Total investment income -- -- 1 -- 393 Expenses: Mortality and expense risk and other charges 1,571 1 1 1,106 1,041 Annual administrative charges 33 -- -- 25 21 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 28 -- -- 29 21 Other contract charges 408 -- -- 260 236 ----------- ----------- ----------- ----------- ----------- Total expenses 2,040 1 1 1,420 1,319 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (2,040) (1) -- (1,420) (926) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments (2,947) 1 7 4,717 5,682 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions (2,947) 1 7 4,717 5,682 Net unrealized appreciation (depreciation) of investments 12,096 2 5 (439) (2,185) ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 7,109 $ 2 $ 12 $ 2,858 $ 2,571 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 69 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
AIM V.I. AIM V.I. AIM V.I. Health AIM V.I. Premier AIM V.I. Growth Sciences Leisure Equity Utilities ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ -- $ 165 $ -- $ 827 ----------- ----------- ----------- ----------- ----------- Total investment income -- -- 165 -- 827 Expenses: Mortality and expense risk and other charges 56 1,732 739 2 763 Annual administrative charges 1 34 15 -- 20 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 1 39 12 -- 16 Other contract charges 1 396 201 -- 155 ----------- ----------- ----------- ----------- ----------- Total expenses 59 2,201 967 2 954 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (59) (2,201) (802) (2) (127) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 96 7,211 1,182 8 3,034 Capital gains distributions -- -- 45 -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 96 7,211 1,227 8 3,034 Net unrealized appreciation (depreciation) of investments 171 (1,366) 4,862 (2) 7,772 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 208 $ 3,644 $ 5,287 $ 4 $ 10,679 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 70 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
Alliance- Alliance- Fidelity(R) Bernstein Bernstein Alliance- VIP Fidelity(R) Growth and Premier Bernstein Equity- VIP Income Growth Value Income Growth ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 107 $ -- $ 66 $ 2,280 $ 273 ----------- ----------- ----------- ----------- ----------- Total investment income 107 -- 66 2,280 273 Expenses: Mortality and expense risk and other charges 237 65 127 3,206 3,699 Annual administrative charges 4 1 2 60 73 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 11 3 5 57 67 Other contract charges 2 1 2 708 964 ----------- ----------- ----------- ----------- ----------- Total expenses 254 70 136 4,031 4,803 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (147) (70) (70) (1,751) (4,530) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 37 110 188 4,256 7,717 Capital gains distributions -- -- -- 594 -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 37 110 188 4,850 7,717 Net unrealized appreciation (depreciation) of investments 1,425 284 850 15,452 (1,874) ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 1,315 $ 324 $ 968 $ 18,551 $ 1,313 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 71 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
Franklin ING Goldman Fidelity(R) Fidelity(R) Small Cap Sachs(R) VIP VIP Value Capital Greenwich Contrafund(R) Overseas Securities Growth Appreciation ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 51 $ 5 $ 1 $ -- $ 7 ----------- ----------- ----------- ----------- ----------- Total investment income 51 5 1 -- 7 Expenses: Mortality and expense risk and other charges 471 3 5 -- 9 Annual administrative charges 8 -- -- -- -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 17 -- -- -- -- Other contract charges 6 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 502 3 5 -- 9 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (451) 2 (4) -- (2) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 143 27 16 -- 10 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 143 27 16 -- 10 Net unrealized appreciation (depreciation) of investments 5,097 -- 128 1 36 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 4,789 $ 29 $ 140 $ 1 $ 44 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 72 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
Janus Aspen Janus Aspen Janus Aspen Series Janus Aspen Series Colonial Series Flexible Series Worldwide Small Cap Balanced Income Growth Growth Value ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 94 $ 109 $ -- $ 62 $ 707 ----------- ----------- ----------- ----------- ----------- Total investment income 94 109 -- 62 707 Expenses: Mortality and expense risk and other charges 35 16 8 91 2,272 Annual administrative charges -- -- -- 2 57 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges -- -- -- 2 50 Other contract charges -- -- -- 1 616 ----------- ----------- ----------- ----------- ----------- Total expenses 35 16 8 96 2,995 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) 59 93 (8) (34) (2,288) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 115 3 51 222 777 Capital gains distributions -- 14 -- -- 5,724 ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 115 17 51 222 6,501 Net unrealized appreciation (depreciation) of investments 127 (58) (33) (25) 25,388 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 301 $ 52 $ 10 $ 163 $ 29,601 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 73 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
Liberty Liberty Liberty Small Oppenheimer Asset Liberty Federal Company Global Allocation Equity Securities Growth Securities ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 14 $ 4 $ 5 $ -- $ 45 ----------- ----------- ----------- ----------- ----------- Total investment income 14 4 5 -- 45 Expenses: Mortality and expense risk and other charges 9 10 1 1 47 Annual administrative charges -- -- -- -- -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 2 1 1 1 1 Other contract charges -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 11 11 2 2 48 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) 3 (7) 3 (2) (3) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 10 (46) -- 13 244 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 10 (46) -- 13 244 Net unrealized appreciation (depreciation) of investments 32 86 (2) (7) 844 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 45 $ 33 $ 1 $ 4 $ 1,085 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 74 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
PIMCO Oppenheimer PIMCO StocksPLUS Pioneer Strategic High Growth and Equity- Pioneer Bond Yield Income Income VCT Fund VCT ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 48 $ 13,168 $ 2,915 $ 26 $ 702 ----------- ----------- ----------- ----------- ----------- Total investment income 48 13,168 2,915 26 702 Expenses: Mortality and expense risk and other charges 11 3,345 2,882 10 1,256 Annual administrative charges -- (40) 72 -- 20 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 2 85 82 -- 25 Other contract charges -- 451 228 -- 288 ----------- ----------- ----------- ----------- ----------- Total expenses 13 3,841 3,264 10 1,589 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) 35 9,327 (349) 16 (887) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 15 33,855 693 32 2,645 Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 15 33,855 693 32 2,645 Net unrealized appreciation (depreciation) of investments 42 (46,475) 13,866 129 4,835 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 92 $ (3,293) $ 14,210 $ 177 $ 6,593 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 75 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
Pioneer Pioneer ProFund VP Mid-Cap Small ProFund ProFund Rising Rates Value VCT Company VCT VP Bull VP Europe 30 Opportunity ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 979 $ -- $ -- $ 43 $ -- ----------- ----------- ----------- ----------- ----------- Total investment income 979 -- -- 43 -- Expenses: Mortality and expense risk and other charges 5,876 117 1,472 582 714 Annual administrative charges 125 2 38 9 13 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 96 3 71 28 18 Other contract charges 1,443 1 235 77 115 ----------- ----------- ----------- ----------- ----------- Total expenses 7,540 123 1,816 696 860 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (6,561) (123) (1,816) (653) (860) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 2,754 72 3,873 2,686 (3,764) Capital gains distributions 3,429 -- 1,374 289 -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 6,183 72 5,247 2,975 (3,764) Net unrealized appreciation (depreciation) of investments 67,636 851 1,952 679 (4,848) ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 67,258 $ 800 $ 5,383 $ 3,001 $ (9,472) =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 76 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
SP William Blair Putnam VT Putnam VT ProFund VP International Discovery Growth and Small Cap Jennison Growth Growth Income ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ -- $ 27 $ -- $ -- $ 53 ----------- ----------- ----------- ----------- ----------- Total investment income -- 27 -- -- 53 Expenses: Mortality and expense risk and other charges 1,937 1,044 1,528 48 51 Annual administrative charges 42 21 31 1 1 Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 86 16 25 1 1 Other contract charges 348 192 382 -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 2,413 1,273 1,966 50 53 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (2,413) (1,246) (1,966) (50) -- Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 4,646 1,383 7,239 (29) 54 Capital gains distributions 3,374 -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 8,020 1,383 7,239 (29) 54 Net unrealized appreciation (depreciation) of investments 7,782 4,180 6,690 229 237 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 13,389 $ 4,317 $ 11,963 $ 150 $ 291 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 77 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
Putnam VT Smith Barney International International Smith Barney Smith Barney Growth and Smith Barney All Cap Large Money Income High Income Growth Cap Value Market ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 50 $ 21 $ 2 $ 8 $ -- ----------- ----------- ----------- ----------- ----------- Total investment income 50 21 2 8 -- Expenses: Mortality and expense risk and other charges 59 4 3 6 1 Annual administrative charges 1 -- -- -- -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 1 -- -- -- 4 Other contract charges -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total expenses 61 4 3 6 5 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (11) 17 (1) 2 (5) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 462 (42) (15) (7) -- Capital gains distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 462 (42) (15) (7) -- Net unrealized appreciation (depreciation) of investments 194 48 47 42 -- ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 645 $ 23 $ 31 $ 37 $ (5) =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 78 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
Wells Fargo Wells Fargo Wells Fargo Wells Fargo VT Large UBS U.S. VT Asset VT Equity VT Equity Company Allocation Allocation Income Value Growth ----------- ----------- ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 39 $ 24 $ 8 $ 2 $ -- ----------- ----------- ----------- ----------- ----------- Total investment income 39 24 8 2 -- Expenses: Mortality and expense risk and other charges 82 14 7 2 20 Annual administrative charges 1 -- -- -- -- Minimum death benefit guarantee charges -- -- -- -- -- Contingent deferred sales charges 2 -- -- -- -- Other contract charges 2 4 2 1 5 ----------- ----------- ----------- ----------- ----------- Total expenses 87 18 9 3 25 ----------- ----------- ----------- ----------- ----------- Net investment income (loss) (48) 6 (1) (1) (25) Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments 47 (6) 1 1 (2) Capital gains distributions -- 29 -- -- -- ----------- ----------- ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions 47 23 1 1 (2) Net unrealized appreciation (depreciation) of investments 461 93 54 12 106 ----------- ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ 460 $ 122 $ 54 $ 12 $ 79 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 79 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Operations December 31, 2004 (Dollars in thousands)
Wells Fargo Wells Fargo Wells Fargo VT Money VT Small Cap VT Total Market Growth Return Bond ----------- ----------- ----------- Net investment income (loss) Income: Dividends $ 2 $ -- $ 6 ----------- ----------- ----------- Total investment income 2 -- 6 Expenses: Mortality and expense risk and other charges 4 3 2 Annual administrative charges -- -- -- Minimum death benefit guarantee charges -- -- -- Contingent deferred sales charges -- -- -- Other contract charges -- 1 1 ----------- ----------- ----------- Total expenses 4 4 3 ----------- ----------- ----------- Net investment income (loss) (2) (4) 3 Realized and unrealized gain (loss) on investments Net realized gain (loss) on investments -- 1 (1) Capital gains distributions -- -- 9 ----------- ----------- ----------- Net realized gain (loss) on investments and capital gains distributions -- 1 8 Net unrealized appreciation (depreciation) of investments -- 55 (5) ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations $ (2) $ 52 $ 6 =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 80 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING GET ING GET ING GET ING GET Fund- Fund- Fund- Fund- Series N Series P Series Q Series R --------- --------- --------- --------- Net assets at January 1, 2003 $ 28,661 $ 143,846 $ 169,029 $ 170,526 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 127 (995) (3,371) (3,412) Net realized gain (loss) on investments 87 949 1,500 1,886 Net unrealized appreciation (depreciation) of investments and capital gains distributions 336 857 6,401 7,326 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 550 811 4,530 5,800 Changes from contract transactions: Purchase payments (25) (112) (123) (88) Contract distributions and terminations (1,353) (6,238) (6,340) (5,347) Transfer payments from (to) other Divisions (including the fixed accounts), net (4,476) (28,206) (36,001) (36,136) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (5,854) (34,556) (42,464) (41,571) --------- --------- --------- --------- Total increase (decrease) (5,304) (33,745) (37,934) (35,771) --------- --------- --------- --------- Net assets at December 31, 2003 23,357 110,101 131,095 134,755 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 261 1,370 1,617 1,157 Net realized gain (loss) on investments 66 510 1,136 1,440 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions (428) (2,585) (3,137) (2,109) --------- --------- --------- --------- Net increase (decrease) in net assets from operations (101) (705) (384) 488 Changes from contract transactions: Purchase payments (17) (88) (62) (67) Contract distributions and terminations (1,475) (4,717) (5,243) (5,377) Transfer payments from (to) other Divisions (including the fixed accounts), net (4,085) (19,608) (18,271) (16,409) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (5,577) (24,413) (23,576) (21,853) --------- --------- --------- --------- Total increase (decrease) (5,678) (25,118) (23,960) (21,365) --------- --------- --------- --------- Net assets at December 31, 2004 $ 17,679 $ 84,983 $ 107,135 $ 113,390 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 81 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING GET ING GET ING GET ING GET Fund- Fund- Fund- Fund- Series S Series T Series U Series V --------- --------- --------- --------- Net assets at January 1, 2003 $ 219,270 $ 237,948 $ 1,048 $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (4,169) (4,260) (3,757) (4,565) Net realized gain (loss) on investments 2,646 3,572 5,263 (1,614) Net unrealized appreciation (depreciation) of investments and capital gains distributions 8,506 7,977 11,523 (4,705) --------- --------- --------- --------- Net increase (decrease) in net assets from operations 6,983 7,289 13,029 (10,884) Changes from contract transactions: Purchase payments (100) (258) 5,900 12,238 Contract distributions and terminations (6,106) (6,877) (4,265) (4,915) Transfer payments from (to) other Divisions (including the fixed accounts), net (58,227) (75,220) 153,214 329,545 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (64,433) (82,355) 154,849 336,868 --------- --------- --------- --------- Total increase (decrease) (57,450) (75,066) 167,878 325,984 --------- --------- --------- --------- Net assets at December 31, 2003 161,820 162,882 168,926 325,984 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 574 714 (546) (3,240) Net realized gain (loss) on investments 1,657 1,715 1,630 (526) Capital gains distributions 2,217 2,440 6,476 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions (3,896) (4,487) (6,055) 4,290 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 552 382 1,505 524 Changes from contract transactions: Purchase payments (78) (102) (70) (171) Contract distributions and terminations (5,804) (6,414) (5,694) (11,938) Transfer payments from (to) other Divisions (including the fixed accounts), net (22,344) (20,301) (21,269) (83,369) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (28,226) (26,817) (27,033) (95,478) --------- --------- --------- --------- Total increase (decrease) (27,674) (26,435) (25,528) (94,954) --------- --------- --------- --------- Net assets at December 31, 2004 $ 134,146 $ 136,447 $ 143,398 $ 231,030 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 82 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING AIM ING AIM ING Alliance ING Alliance Mid-Cap Mid-Cap Mid-Cap Mid-Cap Growth Growth Growth Growth (Service (Advisor (Service (Advisor Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 139,852 $ 78 $ 246,769 $ 148 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (3,246) (26) (6,283) (35) Net realized gain (loss) on investments 12,008 11 29,527 57 Net unrealized appreciation (depreciation) of investments and capital gains distributions 50,126 425 140,666 720 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 58,888 410 163,910 742 Changes from contract transactions: Purchase payments 28,579 2,392 41,672 3,213 Contract distributions and terminations (8,002) (12) (18,672) (13) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,416 326 29,145 534 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 22,993 2,706 52,145 3,734 --------- --------- --------- --------- Total increase (decrease) 81,881 3,116 216,055 4,476 --------- --------- --------- --------- Net assets at December 31, 2003 221,733 3,194 462,824 4,624 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (4,332) (107) (9,146) (195) Net realized gain (loss) on investments 11,600 139 48,319 335 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 3,148 334 33,101 1,460 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 10,416 366 72,274 1,600 Changes from contract transactions: Purchase payments 27,530 2,898 53,352 6,371 Contract distributions and terminations (11,087) (105) (26,361) (100) Transfer payments from (to) other Divisions (including the fixed accounts), net (21,905) 182 (45,075) 345 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (5,462) 2,975 (18,084) 6,616 --------- --------- --------- --------- Total increase (decrease) 4,954 3,341 54,190 8,216 --------- --------- --------- --------- Net assets at December 31, 2004 $ 226,687 $ 6,535 $ 517,014 $ 12,840 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 83 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Capital ING ING American Guardian American Funds ING American Large Cap Funds Growth- Funds Value Growth Income International (Service Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ -- $ -- $ 295,688 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (376) (277) (110) (7,818) Net realized gain (loss) on investments -- -- 3 (4,588) Net unrealized appreciation (depreciation) of investments and capital gains distributions 6,250 5,537 2,718 131,558 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 5,874 5,260 2,611 119,152 Changes from contract transactions: Purchase payments 65,269 49,855 24,658 117,569 Contract distributions and terminations (658) (467) (90) (17,769) Transfer payments from (to) other Divisions (including the fixed accounts), net 61,835 45,311 18,161 46,648 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 126,446 94,699 42,729 146,448 --------- --------- --------- --------- Total increase (decrease) 132,320 99,959 45,340 265,600 --------- --------- --------- --------- Net assets at December 31, 2003 132,320 99,959 45,340 561,288 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (10,408) (7,248) (3,182) (11,551) Net realized gain (loss) on investments 788 464 1,024 1,609 Capital gains distributions 3 2 6 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 71,574 44,785 35,050 50,165 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 61,957 38,003 32,898 40,223 Changes from contract transactions: Purchase payments 507,247 381,171 148,241 88,595 Contract distributions and terminations (13,028) (11,384) (4,716) (24,767) Transfer payments from (to) other Divisions (including the fixed accounts), net 165,567 153,401 95,101 (16,674) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 659,786 523,188 238,626 47,154 --------- --------- --------- --------- Total increase (decrease) 721,743 561,191 271,524 87,377 --------- --------- --------- --------- Net assets at December 31, 2004 $ 854,063 $ 661,150 $ 316,864 $ 648,665 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 84 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Capital ING Capital ING Capital Guardian Guardian Guardian ING Capital Large Cap Managed Managed Guardian Value Global Global Small Cap (Advisor Class) (Service Class) (Advisor Class) (Service Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 333 $ 223,084 $ 50 $ 341,146 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (72) (4,985) (15) (7,074) Net realized gain (loss) on investments (30) (2,433) 17 (13,248) Net unrealized appreciation (depreciation) of investments and capital gains distributions 1,177 89,795 267 154,436 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1,075 82,377 269 134,114 Changes from contract transactions: Purchase payments 5,282 53,400 1,684 66,650 Contract distributions and terminations (465) (12,470) (40) (18,324) Transfer payments from (to) other Divisions (including the fixed accounts), net 580 5,996 121 13,700 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 5,397 46,926 1,765 62,026 --------- --------- --------- --------- Total increase (decrease) 6,472 129,303 2,034 196,140 --------- --------- --------- --------- Net assets at December 31, 2003 6,805 352,387 2,084 537,286 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (168) (5,140) (50) (9,087) Net realized gain (loss) on investments 229 6,718 74 18,245 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 562 29,309 328 15,248 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 623 30,887 352 24,406 Changes from contract transactions: Purchase payments 2,787 40,976 1,959 66,054 Contract distributions and terminations (308) (15,621) (29) (23,873) Transfer payments from (to) other Divisions (including the fixed accounts), net 134 (25,536) 401 (65,852) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 2,613 (181) 2,331 (23,671) --------- --------- --------- --------- Total increase (decrease) 3,236 30,706 2,683 735 --------- --------- --------- --------- Net assets at December 31, 2004 $ 10,041 $ 383,093 $ 4,767 $ 538,021 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 85 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Capital ING ING ING Eagle Guardian Developing Developing Asset Capital Small Cap World World Appreciation (Advisor (Service (Advisor (Service Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 321 $ 60,000 $ 79 $ 173,239 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (32) (1,145) (13) (2,902) Net realized gain (loss) on investments 2 (728) 4 (9,173) Net unrealized appreciation (depreciation) of investments and capital gains distributions 573 29,880 347 50,235 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 543 28,007 338 38,160 Changes from contract transactions: Purchase payments 2,853 14,583 1,305 20,666 Contract distributions and terminations (7) (3,396) -- (9,738) Transfer payments from (to) other Divisions (including the fixed accounts), net 438 10,064 234 (10,178) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 3,284 21,251 1,539 750 --------- --------- --------- --------- Total increase (decrease) 3,827 49,258 1,877 38,910 --------- --------- --------- --------- Net assets at December 31, 2003 4,148 109,258 1,956 212,149 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (114) (1,862) (67) (2,000) Net realized gain (loss) on investments 115 14,124 104 9 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 467 5,151 905 27,689 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 468 17,413 942 25,698 Changes from contract transactions: Purchase payments 2,941 24,597 3,901 12,286 Contract distributions and terminations (178) (6,005) (46) (11,446) Transfer payments from (to) other Divisions (including the fixed accounts), net 560 6,443 464 (15,440) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 3,323 25,035 4,319 (14,600) --------- --------- --------- --------- Total increase (decrease) 3,791 42,448 5,261 11,098 --------- --------- --------- --------- Net assets at December 31, 2004 $ 7,939 $ 151,706 $ 7,217 $ 223,247 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 86 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Eagle ING ING Asset Capital Evergreen Evergreen ING Appreciation Health Health Evergreen (Advisor Sciences Sciences Omega Class) (Advisor Class) (Service Class) (Advisor Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 107 $ -- $ -- $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (11) -- -- -- Net realized gain (loss) on investments -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 159 -- -- -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 148 -- -- -- Changes from contract transactions: Purchase payments 728 -- -- -- Contract distributions and terminations (6) -- -- -- Transfer payments from (to) other Divisions (including the fixed accounts), net 45 -- -- -- --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 767 -- -- -- --------- --------- --------- --------- Total increase (decrease) 915 -- -- -- --------- --------- --------- --------- Net assets at December 31, 2003 1,022 -- -- -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (16) (20) (284) -- Net realized gain (loss) on investments 57 (5) (766) -- Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 159 165 1,675 18 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 200 140 625 18 Changes from contract transactions: Purchase payments 623 2,122 13,782 278 Contract distributions and terminations (11) (3) (582) -- Transfer payments from (to) other Divisions (including the fixed accounts), net 71 472 15,546 21 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 683 2,591 28,746 299 --------- --------- --------- --------- Total increase (decrease) 883 2,731 29,371 317 --------- --------- --------- --------- Net assets at December 31, 2004 $ 1,905 $ 2,731 $ 29,371 $ 317 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 87 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING FMR ING FMR ING ING Diversified Diversified Goldman Sachs Evergreen Mid-Cap Mid-Cap Tollkeeper Omega (Service (Advisor (Service (Service Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ 91,159 $ 220 $ 12,802 Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- (2,492) (40) (625) Net realized gain (loss) on investments -- (876) 4 1,039 Net unrealized appreciation (depreciation) of investments and capital gains distributions -- 37,624 619 8,672 --------- --------- --------- --------- Net increase (decrease) in net assets from operations -- 34,256 583 9,086 Changes from contract transactions: Purchase payments -- 38,594 2,739 20,789 Contract distributions and terminations -- (4,100) (32) (1,153) Transfer payments from (to) other Divisions (including the fixed accounts), net -- 4,296 244 12,098 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions -- 38,790 2,951 31,734 --------- --------- --------- --------- Total increase (decrease) -- 73,046 3,534 40,820 --------- --------- --------- --------- Net assets at December 31, 2003 -- 164,205 3,754 53,622 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (4) (3,750) (126) (1,304) Net realized gain (loss) on investments (11) 1,305 73 3,351 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 152 42,022 1,442 3,214 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 137 39,577 1,389 5,261 Changes from contract transactions: Purchase payments 1,669 31,659 3,844 15,705 Contract distributions and terminations (11) (7,375) (149) (1,645) Transfer payments from (to) other Divisions (including the fixed accounts), net 1,242 24,299 906 (4,692) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 2,900 48,583 4,601 9,368 --------- --------- --------- --------- Total increase (decrease) 3,037 88,160 5,990 14,629 --------- --------- --------- --------- Net assets at December 31, 2004 $ 3,037 $ 252,365 $ 9,744 $ 68,251 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 88 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Goldman Sachs ING Hard ING Hard ING Tollkeeper Assets Assets International (Advisor (Service (Advisor (Service Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 53 $ 67,753 $ 97 $ 120,477 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (19) (1,197) (15) (2,107) Net realized gain (loss) on investments 43 2,794 22 16,547 Net unrealized appreciation (depreciation) of investments and capital gains distributions 257 37,546 641 19,653 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 281 39,143 648 34,093 Changes from contract transactions: Purchase payments 2,167 17,646 1,982 19,354 Contract distributions and terminations (63) (5,336) (3) (5,614) Transfer payments from (to) other Divisions (including the fixed accounts), net 157 20,810 313 (6,228) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 2,261 33,120 2,292 7,512 --------- --------- --------- --------- Total increase (decrease) 2,542 72,263 2,940 41,605 --------- --------- --------- --------- Net assets at December 31, 2003 2,595 140,016 3,037 162,082 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (78) (1,717) (56) (1,622) Net realized gain (loss) on investments 121 14,263 78 11,866 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 311 (5,715) 542 11,741 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 354 6,831 564 21,985 Changes from contract transactions: Purchase payments 1,932 34,124 5,748 17,762 Contract distributions and terminations (24) (7,991) (108) (7,116) Transfer payments from (to) other Divisions (including the fixed accounts), net (520) 14,965 948 (17,073) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,388 41,098 6,588 (6,427) --------- --------- --------- --------- Total increase (decrease) 1,742 47,929 7,152 15,558 --------- --------- --------- --------- Net assets at December 31, 2004 $ 4,337 $ 187,945 $ 10,189 $ 177,640 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 89 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Janus ING Janus ING Jennison ING Special Special Equity International Equity Equity Opportunities (Advisor (Service (Advisor (Service Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 254 $ 21,794 $ 56 $ 280,954 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (40) (680) (6) (5,027) Net realized gain (loss) on investments 5 (642) 4 (51,233) Net unrealized appreciation (depreciation) of investments and capital gains distributions 813 14,396 122 130,334 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 778 13,074 120 74,074 Changes from contract transactions: Purchase payments 3,679 11,922 451 13,680 Contract distributions and terminations (8) (1,281) (6) (16,077) Transfer payments from (to) other Divisions (including the fixed accounts), net 277 8,402 180 (19,251) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 3,948 19,043 625 (21,648) --------- --------- --------- --------- Total increase (decrease) 4,726 32,117 745 52,426 --------- --------- --------- --------- Net assets at December 31, 2003 4,980 53,911 801 333,380 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (74) (1,211) (36) (4,837) Net realized gain (loss) on investments 68 1,711 58 (6,568) Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 1,021 7,344 237 41,710 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1,015 7,844 259 30,305 Changes from contract transactions: Purchase payments 2,735 9,075 1,126 11,075 Contract distributions and terminations (52) (2,104) (3) (18,058) Transfer payments from (to) other Divisions (including the fixed accounts), net 359 (3,048) (6) (41,772) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 3,042 3,923 1,117 (48,755) --------- --------- --------- --------- Total increase (decrease) 4,057 11,767 1,376 (18,450) --------- --------- --------- --------- Net assets at December 31, 2004 $ 9,037 $ 65,678 $ 2,177 $ 314,930 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 90 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Jennison ING JPMorgan ING JPMorgan ING Equity Small Small Julius Baer Opportunities Cap Equity Cap Equity Foreign (Advisor (Service (Advisor (Service Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 34 $ 9,490 $ 511 $ 4,990 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (14) (614) (96) (104) Net realized gain (loss) on investments 10 (64) 1 2,277 Net unrealized appreciation (depreciation) of investments and capital gains distributions 258 10,493 1,641 2,852 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 254 9,815 1,546 5,025 Changes from contract transactions: Purchase payments 1,124 30,395 7,957 12,400 Contract distributions and terminations (11) (550) (43) (325) Transfer payments from (to) other Divisions (including the fixed accounts), net 238 16,334 1,117 12,554 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,351 46,179 9,031 24,629 --------- --------- --------- --------- Total increase (decrease) 1,605 55,994 10,577 29,654 --------- --------- --------- --------- Net assets at December 31, 2003 1,639 65,484 11,088 34,644 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (43) (2,170) (459) (2,255) Net realized gain (loss) on investments 45 4,833 142 2,003 Capital gains distributions -- 156 33 1,002 Net unrealized appreciation (depreciation) of investments and capital gains distributions 274 19,884 5,221 21,788 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 276 22,703 4,937 22,538 Changes from contract transactions: Purchase payments 1,364 40,141 14,954 107,491 Contract distributions and terminations (50) (2,906) (241) (3,047) Transfer payments from (to) other Divisions (including the fixed accounts), net 63 33,205 1,872 23,966 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,377 70,440 16,585 128,410 --------- --------- --------- --------- Total increase (decrease) 1,653 93,143 21,522 150,948 --------- --------- --------- --------- Net assets at December 31, 2004 $ 3,292 $ 158,627 $ 32,610 $ 185,592 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 91 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Julius Baer ING Legg ING Foreign ING Legg Mason Value LifeStyle (Advisor Mason Value (Advisor Aggressive Class) (Service Class) Class) Growth --------- --------- --------- --------- Net assets at January 1, 2003 $ 165 $ 130,345 $ 587 $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (9) (3,592) (89) -- Net realized gain (loss) on investments 90 (1,267) 18 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 315 38,839 929 -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 396 33,980 858 -- Changes from contract transactions: Purchase payments 1,870 57,855 4,981 -- Contract distributions and terminations (4) (6,459) (50) -- Transfer payments from (to) other Divisions (including the fixed accounts), net 123 9,001 819 -- --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,989 60,397 5,750 -- --------- --------- --------- --------- Total increase (decrease) 2,385 94,377 6,608 -- --------- --------- --------- --------- Net assets at December 31, 2003 2,550 224,722 7,195 -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (187) (4,567) (176) (1,332) Net realized gain (loss) on investments 60 (1,706) 268 75 Capital gains distributions 92 -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 2,071 35,252 1,283 21,184 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 2,036 28,979 1,375 19,927 Changes from contract transactions: Purchase payments 10,376 52,170 5,508 152,013 Contract distributions and terminations (81) (8,049) (55) (683) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,635 (9,496) (108) 43,309 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 12,930 34,625 5,345 194,639 --------- --------- --------- --------- Total increase (decrease) 14,966 63,604 6,720 214,566 --------- --------- --------- --------- Net assets at December 31, 2004 $ 17,516 $ 288,326 $ 13,915 $ 214,566 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 92 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING ING ING LifeStyle ING Limited LifeStyle Moderate LifeStyle Maturity Growth Growth Moderate Bond --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ -- $ -- $ 558,941 Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- -- -- (6,631) Net realized gain (loss) on investments -- -- -- 10,257 Net unrealized appreciation (depreciation) of investments and capital gains distributions -- -- -- 1,985 --------- --------- --------- --------- Net increase (decrease) in net assets from operations -- -- -- 5,611 Changes from contract transactions: Purchase payments -- -- -- 112,379 Contract distributions and terminations -- -- -- (37,669) Transfer payments from (to) other Divisions (including the fixed accounts), net -- -- -- (104,308) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions -- -- -- (29,598) --------- --------- --------- --------- Total increase (decrease) -- -- -- (23,987) --------- --------- --------- --------- Net assets at December 31, 2003 -- -- -- 534,954 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (2,751) (2,701) (1,223) 10,681 Net realized gain (loss) on investments -- 72 297 7,549 Capital gains distributions -- -- -- 2,950 Net unrealized appreciation (depreciation) of investments and capital gains distributions 40,103 32,673 12,372 (23,234) --------- --------- --------- --------- Net increase (decrease) in net assets from operations 37,352 30,044 11,446 (2,054) Changes from contract transactions: Purchase payments 328,211 289,453 122,173 12,996 Contract distributions and terminations (3,716) (4,990) (3,004) (32,227) Transfer payments from (to) other Divisions (including the fixed accounts), net 113,605 139,380 81,212 (156,364) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 438,100 423,843 200,381 (175,595) --------- --------- --------- --------- Total increase (decrease) 475,452 453,887 211,827 (177,649) --------- --------- --------- --------- Net assets at December 31, 2004 $ 475,452 $ 453,887 $ 211,827 $ 357,305 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 93 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Liquid ING Liquid ING Marsico ING Marsico Assets Assets Growth Growth (Service (Advisor (Service (Advisor Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $1,023,179 $ 1,800 $ 560,041 $ 92 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (35,629) (93) (12,294) (78) Net realized gain (loss) on investments -- -- (10,462) 15 Net unrealized appreciation (depreciation) of investments and capital gains distributions -- -- 190,448 972 --------- --------- --------- --------- Net increase (decrease) in net assets from operations (35,629) (93) 167,692 909 Changes from contract transactions: Purchase payments 415,072 9,725 80,708 6,065 Contract distributions and terminations (582,769) (491) (32,653) (46) Transfer payments from (to) other Divisions (including the fixed accounts), net (74,179) (6,104) 2,912 1,304 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (241,876) 3,130 50,967 7,323 --------- --------- --------- --------- Total increase (decrease) (277,505) 3,037 218,659 8,232 --------- --------- --------- --------- Net assets at December 31, 2003 745,674 4,837 778,700 8,324 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (39,578) (408) (14,612) (268) Net realized gain (loss) on investments -- -- 15,605 147 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions -- -- 74,252 1,450 --------- --------- --------- --------- Net increase (decrease) in net assets from operations (39,578) (408) 75,245 1,329 Changes from contract transactions: Purchase payments 418,037 28,378 72,134 5,062 Contract distributions and terminations (718,817) (3,657) (38,547) (311) Transfer payments from (to) other Divisions (including the fixed accounts), net 212,965 (19,653) (74,100) 691 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (87,815) 5,068 (40,513) 5,442 --------- --------- --------- --------- Total increase (decrease) (127,393) 4,660 34,732 6,771 --------- --------- --------- --------- Net assets at December 31, 2004 $ 618,281 $ 9,497 $ 813,432 $ 15,095 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 94 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Mercury ING Mercury ING Mercury ING Mercury Large Cap Large Cap Focus Value Focus Value Growth Growth (Service (Advisor (Service (Advisor Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 5,931 $ 48 $ 2,742 $ 108 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (238) (6) (162) (9) Net realized gain (loss) on investments 292 10 3 4 Net unrealized appreciation (depreciation) of investments and capital gains distributions 3,584 98 2,071 126 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 3,638 102 1,912 121 Changes from contract transactions: Purchase payments 10,747 573 6,401 516 Contract distributions and terminations (273) -- (198) (4) Transfer payments from (to) other Divisions (including the fixed accounts), net 6,141 82 2,773 115 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 16,615 655 8,976 627 --------- --------- --------- --------- Total increase (decrease) 20,253 757 10,888 748 --------- --------- --------- --------- Net assets at December 31, 2003 26,184 805 13,630 856 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (673) (33) (344) (34) Net realized gain (loss) on investments 1,905 37 1,149 28 Capital gains distributions 1,722 101 1,433 161 Net unrealized appreciation (depreciation) of investments and capital gains distributions (99) 68 (842) 4 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 2,855 173 1,396 159 Changes from contract transactions: Purchase payments 10,949 1,141 4,215 825 Contract distributions and terminations (1,179) (22) (366) (25) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,104 322 (14) 350 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 11,874 1,441 3,835 1,150 --------- --------- --------- --------- Total increase (decrease) 14,729 1,614 5,231 1,309 --------- --------- --------- --------- Net assets at December 31, 2004 $ 40,913 $ 2,419 $ 18,861 $ 2,165 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 95 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING MFS(R) ING MFS(R) Mid-Cap Mid-Cap ING MFS(R) ING MFS(R) Growth Growth Total Return Total Return (Service (Advisor (Service (Advisor Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 435,581 $ 549 $ 853,266 $ 955 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (10,199) (90) (12,834) (108) Net realized gain (loss) on investments (77,150) 18 (1,736) 2 Net unrealized appreciation (depreciation) of investments and capital gains distributions 248,319 1,249 150,200 1,398 --------- --------- ---------- --------- Net increase (decrease) in net assets from operations 160,970 1,177 135,630 1,292 Changes from contract transactions: Purchase payments 70,479 6,803 180,209 11,852 Contract distributions and terminations (26,211) (14) (53,967) (33) Transfer payments from (to) other Divisions (including the fixed accounts), net (6,462) 1,110 27,270 2,191 --------- --------- ---------- --------- Net increase (decrease) in net assets derived from principal transactions 37,806 7,899 153,512 14,010 --------- --------- ---------- --------- Total increase (decrease) 198,776 9,076 289,142 15,302 --------- --------- ---------- --------- Net assets at December 31, 2003 634,357 9,625 1,142,408 16,257 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (12,327) (305) (423) 65 Net realized gain (loss) on investments 29,832 326 5,847 109 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 58,083 1,638 100,058 2,269 --------- --------- ---------- --------- Net increase (decrease) in net assets from operations 75,588 1,659 105,482 2,443 Changes from contract transactions: Purchase payments 50,044 5,715 141,847 13,285 Contract distributions and terminations (30,692) (359) (61,713) (331) Transfer payments from (to) other Divisions (including the fixed accounts), net (67,725) 453 (48,652) 3,493 --------- --------- ---------- --------- Net increase (decrease) in net assets derived from principal transactions (48,373) 5,809 31,482 16,447 --------- --------- ---------- --------- Total increase (decrease) 27,215 7,468 136,964 18,890 --------- --------- ---------- --------- Net assets at December 31, 2004 $ 661,572 $ 17,093 $1,279,372 $ 35,147 ========= ========= ========== =========
The accompanying notes are an integral part of these financial statements. 96 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING ING Oppenheimer Oppenheimer ING PIMCO ING PIMCO Main Street Main Street Core Bond Core Bond (Service (Advisor (Service (Advisor Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 421,035 $ 326 $ 425,125 $ 992 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (7,527) (21) (8,064) (168) Net realized gain (loss) on investments (121,817) 11 17,399 221 Net unrealized appreciation (depreciation) of investments and capital gains distributions 219,580 250 3,595 95 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 90,236 240 12,930 148 Changes from contract transactions: Purchase payments 42,251 1,306 161,509 14,672 Contract distributions and terminations (24,773) (14) (28,070) (192) Transfer payments from (to) other Divisions (including the fixed accounts), net (33,838) 93 (57,467) 925 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (16,360) 1,385 75,972 15,405 --------- --------- --------- --------- Total increase (decrease) 73,876 1,625 88,902 15,553 --------- --------- --------- --------- Net assets at December 31, 2003 494,911 1,951 514,027 16,545 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (5,161) (27) 4,040 221 Net realized gain (loss) on investments (18,834) 102 6,985 91 Capital gains distributions -- -- 904 43 Net unrealized appreciation (depreciation) of investments and capital gains distributions 72,757 175 2,633 164 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 48,762 250 14,562 519 Changes from contract transactions: Purchase payments 16,993 824 97,860 11,756 Contract distributions and terminations (25,860) (79) (27,530) (860) Transfer payments from (to) other Divisions (including the fixed accounts), net (47,168) (98) (17,324) (105) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (56,035) 647 53,006 10,791 --------- --------- --------- --------- Total increase (decrease) (7,273) 897 67,568 11,310 --------- --------- --------- --------- Net assets at December 31, 2004 $ 487,638 $ 2,848 $ 581,595 $ 27,855 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 97 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Salomon ING Salomon ING Salomon Brothers Brothers Brothers All Cap All Cap Investors ING PIMCO (Service (Advisor (Service High Yield Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ 247,740 $ 176 $ 92,136 Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- (6,221) (54) (1,973) Net realized gain (loss) on investments -- (8,074) 7 (4,397) Net unrealized appreciation (depreciation) of investments and capital gains distributions -- 113,725 903 34,032 --------- --------- --------- --------- Net increase (decrease) in net assets from operations -- 99,430 856 27,662 Changes from contract transactions: Purchase payments -- 63,595 4,569 23,253 Contract distributions and terminations -- (13,162) (9) (4,531) Transfer payments from (to) other Divisions (including the fixed accounts), net -- 23,879 532 (2,373) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions -- 74,312 5,092 16,349 --------- --------- --------- --------- Total increase (decrease) -- 173,742 5,948 44,011 --------- --------- --------- --------- Net assets at December 31, 2003 -- 421,482 6,124 136,147 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 15,567 (7,972) (195) (2,040) Net realized gain (loss) on investments (3) (139) 24 (507) Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 29,372 29,687 825 12,669 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 44,936 21,576 654 10,122 Changes from contract transactions: Purchase payments 60,150 46,631 7,041 13,583 Contract distributions and terminations (20,261) (17,446) (111) (5,621) Transfer payments from (to) other Divisions (including the fixed accounts), net 570,036 (45,007) 1,071 (8,909) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 609,925 (15,822) 8,001 (947) --------- --------- --------- --------- Total increase (decrease) 654,861 5,754 8,655 9,175 --------- --------- --------- --------- Net assets at December 31, 2004 $ 654,861 $ 427,236 $ 14,779 $ 145,322 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 98 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Salomon ING T. Rowe ING T. Rowe ING T. Rowe Brothers Price Capital Price Capital Price Equity Investors Appreciation Appreciation Income (Advisor (Service (Advisor (Service Class) Class) Class) Class) --------- ---------- --------- --------- Net assets at January 1, 2003 $ 297 $ 935,079 $ 894 $ 409,670 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (11) (16,437) (148) (7,387) Net realized gain (loss) on investments 3 6,591 56 (2,996) Net unrealized appreciation (depreciation) of investments and capital gains distributions 175 247,300 2,652 117,245 --------- ---------- --------- --------- Net increase (decrease) in net assets from operations 167 237,454 2,560 106,862 Changes from contract transactions: Purchase payments 430 241,070 14,945 127,708 Contract distributions and terminations (22) (58,806) (208) (24,248) Transfer payments from (to) other Divisions (including the fixed accounts), net 142 10,882 2,015 23,866 --------- ---------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 550 193,146 16,752 127,326 --------- ---------- --------- --------- Total increase (decrease) 717 430,600 19,312 234,188 --------- ---------- --------- --------- Net assets at December 31, 2003 1,014 1,365,679 20,206 643,858 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (18) (12,856) (277) (7,981) Net realized gain (loss) on investments 58 11,710 83 3,016 Capital gains distributions -- 12,010 355 4,474 Net unrealized appreciation (depreciation) of investments and capital gains distributions 80 210,797 5,502 99,781 --------- ---------- --------- --------- Net increase (decrease) in net assets from operations 120 221,661 5,663 99,290 Changes from contract transactions: Purchase payments 754 316,296 25,440 192,239 Contract distributions and terminations (13) (74,058) (478) (34,492) Transfer payments from (to) other Divisions (including the fixed accounts), net 45 37,226 4,596 15,295 --------- ---------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 786 279,464 29,558 173,042 --------- ---------- --------- --------- Total increase (decrease) 906 501,125 35,221 272,332 --------- ---------- --------- --------- Net assets at December 31, 2004 $ 1,920 $1,866,804 $ 55,427 $ 916,190 ========= ========== ========= =========
The accompanying notes are an integral part of these financial statements. 99 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING T. Rowe ING ING ING Price Equity UBS U.S. UBS U.S. Van Kampen Income Balanced Balanced Equity Growth (Advisor (Service (Advisor (Service Class) Class) Class) Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 640 $ 47,241 $ -- $ 4,362 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (89) (1,047) (4) (305) Net realized gain (loss) on investments 11 (1,392) -- 286 Net unrealized appreciation (depreciation) of investments and capital gains distributions 1,510 10,222 51 3,210 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1,432 7,783 47 3,191 Changes from contract transactions: Purchase payments 7,340 10,455 819 16,184 Contract distributions and terminations (12) (2,191) -- (338) Transfer payments from (to) other Divisions (including the fixed accounts), net 1,419 5,376 97 6,449 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 8,747 13,640 916 22,295 --------- --------- --------- --------- Total increase (decrease) 10,179 21,423 963 25,486 --------- --------- --------- --------- Net assets at December 31, 2003 10,819 68,664 963 29,848 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (195) (1,130) (23) (784) Net realized gain (loss) on investments 266 (2) 10 395 Capital gains distributions 112 -- -- 187 Net unrealized appreciation (depreciation) of investments and capital gains distributions 2,005 8,967 228 2,087 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 2,188 7,835 215 1,885 Changes from contract transactions: Purchase payments 9,991 25,150 1,748 9,844 Contract distributions and terminations (241) (3,977) (11) (992) Transfer payments from (to) other Divisions (including the fixed accounts), net 334 4,430 289 (256) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 10,084 25,603 2,026 8,596 --------- --------- --------- --------- Total increase (decrease) 12,272 33,438 2,241 10,481 --------- --------- --------- --------- Net assets at December 31, 2004 $ 23,091 $ 102,102 $ 3,204 $ 40,329 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 100 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING ING ING ING Van Kampen Van Kampen Van Kampen Van Kampen Equity Growth Global Global Growth and (Advisor Franchise Franchise Income Class) (Service Class) (Advisor Class) (Service Class) --------- --------- --------- --------- Net assets at January 1, 2003 $ 458 $ 14,670 $ 708 $ 554,608 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (64) (344) (77) (9,133) Net realized gain (loss) on investments 67 362 22 (16,135) Net unrealized appreciation (depreciation) of investments and capital gains distributions 600 9,459 2,310 164,870 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 603 9,477 2,255 139,602 Changes from contract transactions: Purchase payments 4,187 24,852 9,904 63,751 Contract distributions and terminations (38) (672) (105) (34,738) Transfer payments from (to) other Divisions (including the fixed accounts), net 699 9,692 1,744 (17,970) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 4,848 33,872 11,543 11,043 --------- --------- --------- --------- Total increase (decrease) 5,451 43,349 13,798 150,645 --------- --------- --------- --------- Net assets at December 31, 2003 5,909 58,019 14,506 705,253 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (182) (1,862) (578) (6,111) Net realized gain (loss) on investments 137 2,226 91 5,315 Capital gains distributions 45 -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 462 9,205 3,601 84,022 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 462 9,569 3,114 83,226 Changes from contract transactions: Purchase payments 4,021 41,118 19,169 52,622 Contract distributions and terminations (214) (2,571) (326) (38,794) Transfer payments from (to) other Divisions (including the fixed accounts), net (367) 11,073 3,368 (29,511) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 3,440 49,620 22,211 (15,683) --------- --------- --------- --------- Total increase (decrease) 3,902 59,189 25,325 67,543 --------- --------- --------- --------- Net assets at December 31, 2004 $ 9,811 $ 117,208 $ 39,831 $ 772,796 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 101 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING ING ING Van Kampen Van Kampen Van Kampen ING Growth and Real Estate Real Estate American Income (Service (Advisor Century (Advisor Class) Class) Class) Select --------- --------- --------- --------- Net assets at January 1, 2003 $ 990 $ 187,607 $ 276 $ 39 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (200) (4,116) (58) (1) Net realized gain (loss) on investments 20 2,454 43 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 3,492 75,798 914 24 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 3,312 74,136 899 23 Changes from contract transactions: Purchase payments 16,830 60,739 4,313 80 Contract distributions and terminations (318) (12,633) (10) -- Transfer payments from (to) other Divisions (including the fixed accounts), net 3,244 21,015 768 -- --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 19,756 69,121 5,071 80 --------- --------- --------- --------- Total increase (decrease) 23,068 143,257 5,970 103 --------- --------- --------- --------- Net assets at December 31, 2003 24,058 330,864 6,246 142 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (312) (1,332) (26) (2) Net realized gain (loss) on investments 281 14,287 167 -- Capital gains distributions -- 4,275 136 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 4,986 113,247 3,445 9 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 4,955 130,477 3,722 7 Changes from contract transactions: Purchase payments 21,974 101,854 7,305 140 Contract distributions and terminations (490) (17,500) (161) (6) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,834 11,682 687 8 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 24,318 96,036 7,831 142 --------- --------- --------- --------- Total increase (decrease) 29,273 226,513 11,553 149 --------- --------- --------- --------- Net assets at December 31, 2004 $ 53,331 $ 557,377 $ 17,799 $ 291 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 102 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING American ING Century ING Baron ING JPMorgan Small Cap Small Cap JPMorgan Mid Cap Value Growth International Value --------- --------- --------- --------- Net assets at January 1, 2003 $ 2 $ -- $ 7 $ 301 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) (2) (21) (13) Net realized gain (loss) on investments 4 -- 130 50 Net unrealized appreciation (depreciation) of investments and capital gains distributions 25 93 567 483 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 28 91 676 520 Changes from contract transactions: Purchase payments 132 717 4,202 2,381 Contract distributions and terminations -- -- (23) (35) Transfer payments from (to) other Divisions (including the fixed accounts), net -- 220 3,157 2,984 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 132 937 7,336 5,330 --------- --------- --------- --------- Total increase (decrease) 160 1,028 8,012 5,850 --------- --------- --------- --------- Net assets at December 31, 2003 162 1,028 8,019 6,151 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) (10) (284) (209) Net realized gain (loss) on investments 14 168 1,350 381 Capital gains distributions 24 -- -- 617 Net unrealized appreciation (depreciation) of investments and capital gains distributions 22 126 5,819 1,706 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 59 284 6,885 2,495 Changes from contract transactions: Purchase payments 93 391 27,685 8,396 Contract distributions and terminations (7) (8) (956) (348) Transfer payments from (to) other Divisions (including the fixed accounts), net 82 (247) 22,232 4,455 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 168 136 48,961 12,503 --------- --------- --------- --------- Total increase (decrease) 227 420 55,846 14,998 --------- --------- --------- --------- Net assets at December 31, 2004 $ 389 $ 1,448 $ 63,865 $ 21,149 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 103 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING MFS(R) ING MFS(R) Capital Capital Opportunities ING OpCap ING Opportunities (Service Balanced Oppenheimer (Initial Class) Class) Value Global --------- --------- --------- --------- Net assets at January 1, 2003 $ 1,280 $ 72 $ 126 $ 75 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (26) (2) 4 (7) Net realized gain (loss) on investments (106) -- -- 13 Net unrealized appreciation (depreciation) of investments and capital gains distributions 539 54 55 161 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 407 52 59 167 Changes from contract transactions: Purchase payments 855 267 164 706 Contract distributions and terminations (76) -- -- (17) Transfer payments from (to) other Divisions (including the fixed accounts), net 543 -- 59 655 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,322 267 223 1,344 --------- --------- --------- --------- Total increase (decrease) 1,729 319 282 1,511 --------- --------- --------- --------- Net assets at December 31, 2003 3,009 391 408 1,586 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (49) (3) (1) (40) Net realized gain (loss) on investments 47 -- 34 168 Capital gains distributions -- -- -- 25 Net unrealized appreciation (depreciation) of investments and capital gains distributions 380 45 37 153 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 378 42 70 306 Changes from contract transactions: Purchase payments 981 52 596 1,117 Contract distributions and terminations (132) (6) (10) (19) Transfer payments from (to) other Divisions (including the fixed accounts), net (298) (35) (33) 70 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 551 11 553 1,168 --------- --------- --------- --------- Total increase (decrease) 929 53 623 1,474 --------- --------- --------- --------- Net assets at December 31, 2004 $ 3,938 $ 444 $ 1,031 $ 3,060 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 104 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING ING ING ING Salomon Salomon Salomon ING PIMCO Brothers Brothers Brothers Total Aggressive Fundamental Investors Return Growth Value Value --------- --------- --------- --------- Net assets at January 1, 2003 $ 593 $ -- $ 9 $ 4 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 43 (40) 3 -- Net realized gain (loss) on investments 12 38 1 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions (20) 709 75 44 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 35 707 79 44 Changes from contract transactions: Purchase payments 1,454 7,413 462 273 Contract distributions and terminations (51) (33) -- -- Transfer payments from (to) other Divisions (including the fixed accounts), net (113) 5,793 50 41 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,290 13,173 512 314 --------- --------- --------- --------- Total increase (decrease) 1,325 13,880 591 358 --------- --------- --------- --------- Net assets at December 31, 2003 1,918 13,880 600 362 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (18) (1,538) (6) -- Net realized gain (loss) on investments 8 834 25 18 Capital gains distributions 19 -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 60 6,465 27 27 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 69 5,761 46 45 Changes from contract transactions: Purchase payments 505 82,588 261 324 Contract distributions and terminations (165) (1,652) (27) (5) Transfer payments from (to) other Divisions (including the fixed accounts), net (211) 12,454 (71) (75) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 129 93,390 163 244 --------- --------- --------- --------- Total increase (decrease) 198 99,151 209 289 --------- --------- --------- --------- Net assets at December 31, 2004 $ 2,116 $ 113,031 $ 809 $ 651 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 105 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING T. Rowe Price ING ING Diversified T. Rowe Price UBS U.S. ING Van Mid Cap Growth Large Cap Kampen Growth Equity Equity Comstock --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ 144 $ -- $ 1,737 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (2) (6) -- (128) Net realized gain (loss) on investments 20 (3) -- 723 Net unrealized appreciation (depreciation) of investments and capital gains distributions 51 322 13 4,267 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 69 313 13 4,862 Changes from contract transactions: Purchase payments 509 1,701 84 28,099 Contract distributions and terminations -- (16) -- (707) Transfer payments from (to) other Divisions (including the fixed accounts), net (21) 153 -- 3,592 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 488 1,838 84 30,984 --------- --------- --------- --------- Total increase (decrease) 557 2,151 97 35,846 --------- --------- --------- --------- Net assets at December 31, 2003 557 2,295 97 37,583 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (5) (21) (1) (1,414) Net realized gain (loss) on investments 29 87 11 85 Capital gains distributions -- -- -- 338 Net unrealized appreciation (depreciation) of investments and capital gains distributions (6) 170 46 11,516 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 18 236 56 10,525 Changes from contract transactions: Purchase payments 151 529 398 47,110 Contract distributions and terminations (8) (34) (6) (1,276) Transfer payments from (to) other Divisions (including the fixed accounts), net (189) (44) 129 9,342 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (46) 451 521 55,176 --------- --------- --------- --------- Total increase (decrease) (28) 687 577 65,701 --------- --------- --------- --------- Net assets at December 31, 2004 $ 529 $ 2,982 $ 674 $ 103,284 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 106 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Van ING GET ING GET ING GET Kampen U.S. Core U.S. Core U.S. Core Equity and Portfolio - Portfolio - Portfolio - Income Series 1 Series 2 Series 3 --------- --------- --------- --------- Net assets at January 1, 2003 $ 2 $ -- $ -- $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- (1,630) (240) (5) Net realized gain (loss) on investments -- 372 3 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 9 7,336 1,240 3 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 9 6,078 1,003 (2) Changes from contract transactions: Purchase payments 59 5,774 3,179 7,124 Contract distributions and terminations (1) (1,572) (344) (5) Transfer payments from (to) other Divisions (including the fixed accounts), net 20 210,525 163,493 1,849 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 78 214,727 166,328 8,968 --------- --------- --------- --------- Total increase (decrease) 87 220,805 167,331 8,966 --------- --------- --------- --------- Net assets at December 31, 2003 89 220,805 167,331 8,966 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1) (3,028) (2,878) (2,834) Net realized gain (loss) on investments 4 2,429 1,606 (277) Capital gains distributions -- 206 1 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 15 2,488 3,468 1,616 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 18 2,095 2,197 (1,495) Changes from contract transactions: Purchase payments 119 (121) (53) (3,730) Contract distributions and terminations (2) (7,484) (4,393) (3,535) Transfer payments from (to) other Divisions (including the fixed accounts), net 32 (44,440) (51,714) 138,955 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 149 (52,045) (56,160) 131,690 --------- --------- --------- --------- Total increase (decrease) 167 (49,950) (53,963) 130,195 --------- --------- --------- --------- Net assets at December 31, 2004 $ 256 $ 170,855 $ 113,368 $ 139,161 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 107 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING GET ING GET ING GET ING GET U.S. Core U.S. Core U.S. Core U.S. Core Portfolio - Portfolio - Portfolio - Portfolio - Series 4 Series 5 Series 6 Series 7 --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ -- $ -- $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- -- -- -- Net realized gain (loss) on investments -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions -- -- -- -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations -- -- -- -- Changes from contract transactions: Purchase payments -- -- -- -- Contract distributions and terminations -- -- -- -- Transfer payments from (to) other Divisions (including the fixed accounts), net -- -- -- -- --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions -- -- -- -- --------- --------- --------- --------- Total increase (decrease) -- -- -- -- --------- --------- --------- --------- Net assets at December 31, 2003 -- -- -- -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1,053) (369) (95) -- Net realized gain (loss) on investments 370 475 2 -- Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 3,706 2,250 553 -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 3,023 2,356 460 -- Changes from contract transactions: Purchase payments 2,664 1,737 749 13 Contract distributions and terminations (1,003) (358) (66) (1) Transfer payments from (to) other Divisions (including the fixed accounts), net 71,689 39,353 59,171 1,256 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 73,350 40,732 59,854 1,268 --------- --------- --------- --------- Total increase (decrease) 76,373 43,088 60,314 1,268 --------- --------- --------- --------- Net assets at December 31, 2004 $ 76,373 $ 43,088 $ 60,314 $ 1,268 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 108 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING VP ING VP Worldwide ING VP ING VP Index Plus Growth Balanced Growth LargeCap --------- --------- --------- --------- Net assets at January 1, 2003 $ 27,358 $ -- $ 46 $ 4,589 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (783) (3) (1) (226) Net realized gain (loss) on investments (1,417) 2 5 901 Net unrealized appreciation (depreciation) of investments and capital gains distributions 11,402 74 36 4,973 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 9,202 73 40 5,648 Changes from contract transactions: Purchase payments 13,165 1,087 225 34,119 Contract distributions and terminations (1,291) -- (19) (679) Transfer payments from (to) other Divisions (including the fixed accounts), net 1,885 71 -- 16,016 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 13,759 1,158 206 49,456 --------- --------- --------- --------- Total increase (decrease) 22,961 1,231 246 55,104 --------- --------- --------- --------- Net assets at December 31, 2003 50,319 1,231 292 59,693 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (758) 25 (3) (922) Net realized gain (loss) on investments 26 41 3 1,034 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 4,200 154 19 8,335 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 3,468 220 19 8,447 Changes from contract transactions: Purchase payments 7,521 1,454 58 47,213 Contract distributions and terminations (1,897) (23) (4) (2,598) Transfer payments from (to) other Divisions (including the fixed accounts), net (3,338) 238 (9) 15,400 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 2,286 1,669 45 60,015 --------- --------- --------- --------- Total increase (decrease) 5,754 1,889 64 68,462 --------- --------- --------- --------- Net assets at December 31, 2004 $ 56,073 $ 3,120 $ 356 $ 128,155 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 109 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP ING VP Index Plus Index Plus Intermediate International MidCap SmallCap Bond Equity --------- --------- --------- --------- Net assets at January 1, 2003 $ 5,909 $ 4,005 $ 49,590 $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (115) (105) (182) -- Net realized gain (loss) on investments (100) 45 1,465 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 2,998 2,362 1,098 21 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 2,783 2,302 2,381 21 Changes from contract transactions: Purchase payments 7,716 5,242 36,354 158 Contract distributions and terminations (181) (136) (4,072) -- Transfer payments from (to) other Divisions (including the fixed accounts), net 3,666 4,928 (12,770) 18 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 11,201 10,034 19,512 176 --------- --------- --------- --------- Total increase (decrease) 13,984 12,336 21,893 197 --------- --------- --------- --------- Net assets at December 31, 2003 19,893 16,341 71,483 197 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (566) (581) 9,098 -- Net realized gain (loss) on investments 480 1,704 (705) 27 Capital gains distributions -- 178 5,928 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 7,708 6,657 (10,965) 7 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 7,622 7,958 3,356 34 Changes from contract transactions: Purchase payments 32,859 25,171 119,065 (14) Contract distributions and terminations (977) (823) (7,557) (6) Transfer payments from (to) other Divisions (including the fixed accounts), net 19,892 20,338 17,018 54 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 51,774 44,686 128,526 34 --------- --------- --------- --------- Total increase (decrease) 59,396 52,644 131,882 68 --------- --------- --------- --------- Net assets at December 31, 2004 $ 79,289 $ 68,985 $ 203,365 $ 265 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 110 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP Small Value ING VP Financial Company Opportunity Convertible Services --------- --------- --------- --------- Net assets at January 1, 2003 $ 156 $ 1,086 $ 1,034 $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (2) (13) 33 -- Net realized gain (loss) on investments (5) (34) 105 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 164 379 400 -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 157 332 538 -- Changes from contract transactions: Purchase payments 599 640 1,226 -- Contract distributions and terminations (24) (32) (67) -- Transfer payments from (to) other Divisions (including the fixed accounts), net (12) 244 1,194 -- --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 563 852 2,353 -- --------- --------- --------- --------- Total increase (decrease) 720 1,184 2,891 -- --------- --------- --------- --------- Net assets at December 31, 2003 876 2,270 3,925 -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (7) (25) 52 (76) Net realized gain (loss) on investments 59 (28) 144 115 Capital gains distributions -- -- 227 135 Net unrealized appreciation (depreciation) of investments and capital gains distributions 81 300 23 1,011 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 133 247 446 1,185 Changes from contract transactions: Purchase payments 398 768 3,422 7,290 Contract distributions and terminations (44) (96) (203) (245) Transfer payments from (to) other Divisions (including the fixed accounts), net (96) 289 1,018 6,020 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 258 961 4,237 13,065 --------- --------- --------- --------- Total increase (decrease) 391 1,208 4,683 14,250 --------- --------- --------- --------- Net assets at December 31, 2004 $ 1,267 $ 3,478 $ 8,608 $ 14,250 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 111 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING VP ING VP ING VP ING VP Growth and Growth International LargeCap Income Opportunities Value Growth --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ 9,918 $ 42 $ 1,006 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (5) (340) (1) (23) Net realized gain (loss) on investments -- (492) 19 23 Net unrealized appreciation (depreciation) of investments and capital gains distributions 188 5,210 68 432 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 183 4,378 86 432 Changes from contract transactions: Purchase payments 1,540 8,829 366 577 Contract distributions and terminations -- (416) (1) (29) Transfer payments from (to) other Divisions (including the fixed accounts), net -- 3,338 41 (45) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,540 11,751 406 503 --------- --------- --------- --------- Total increase (decrease) 1,723 16,129 492 935 --------- --------- --------- --------- Net assets at December 31, 2003 1,723 26,047 534 1,941 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 22 (176) 1 33 Net realized gain (loss) on investments 45 3,956 79 77 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 43 (2,788) 75 88 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 110 992 155 198 Changes from contract transactions: Purchase payments 407 3,066 488 4 Contract distributions and terminations (9) (263) (31) (48) Transfer payments from (to) other Divisions (including the fixed accounts), net (455) (29,842) 98 (222) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (57) (27,039) 555 (266) --------- --------- --------- --------- Total increase (decrease) 53 (26,047) 710 (68) --------- --------- --------- --------- Net assets at December 31, 2004 $ 1,776 $ -- $ 1,244 $ 1,873 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 112 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING VP ING VP AIM V.I. ING VP MidCap SmallCap Capital MagnaCap Opportunities Opportunities Appreciation --------- --------- --------- --------- Net assets at January 1, 2003 $ 12,338 $ 12 $ 30,118 $ 27 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (204) (1) (1,155) -- Net realized gain (loss) on investments (278) -- (1,179) (6) Net unrealized appreciation (depreciation) of investments and capital gains distributions 5,308 46 19,418 14 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 4,826 45 17,084 8 Changes from contract transactions: Purchase payments 6,703 220 31,301 48 Contract distributions and terminations (672) -- (1,526) -- Transfer payments from (to) other Divisions (including the fixed accounts), net 4,356 3 13,476 (6) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 10,387 223 43,251 42 --------- --------- --------- --------- Total increase (decrease) 15,213 268 60,335 50 --------- --------- --------- --------- Net assets at December 31, 2003 27,551 280 90,453 77 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (173) (463) (2,040) (1) Net realized gain (loss) on investments (52) (155) (2,947) 1 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 2,072 2,117 12,096 2 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1,847 1,499 7,109 2 Changes from contract transactions: Purchase payments 4,162 5,124 21,987 -- Contract distributions and terminations (1,210) (686) (2,300) -- Transfer payments from (to) other Divisions (including the fixed accounts), net (2,711) 25,738 (13,551) (10) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 241 30,176 6,136 (10) --------- --------- --------- --------- Total increase (decrease) 2,088 31,675 13,245 (8) --------- --------- --------- --------- Net assets at December 31, 2004 $ 29,639 $ 31,955 $ 103,698 $ 69 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 113 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
AIM V.I. AIM V.I. Dent AIM V.I. Core Demographic Financial AIM V.I. Equity Trends Services Growth --------- --------- --------- --------- Net assets at January 1, 2003 $ 41 $ 11,335 $ 22,941 $ 848 Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- (630) (494) (23) Net realized gain (loss) on investments -- (826) 1,322 (59) Net unrealized appreciation (depreciation) of investments and capital gains distributions 30 9,992 8,589 456 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 30 8,536 9,417 374 Changes from contract transactions: Purchase payments 100 24,832 21,142 961 Contract distributions and terminations -- (908) (1,462) (34) Transfer payments from (to) other Divisions (including the fixed accounts), net 4 14,512 7,566 580 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 104 38,436 27,246 1,507 --------- --------- --------- --------- Total increase (decrease) 134 46,972 36,663 1,881 --------- --------- --------- --------- Net assets at December 31, 2003 175 58,307 59,604 2,729 Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- (1,420) (926) (59) Net realized gain (loss) on investments 7 4,717 5,682 96 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 5 (439) (2,185) 171 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 12 2,858 2,571 208 Changes from contract transactions: Purchase payments 4 17,098 8,069 810 Contract distributions and terminations -- (2,294) (2,221) (49) Transfer payments from (to) other Divisions (including the fixed accounts), net (29) (8,749) (12,512) 277 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (25) 6,055 (6,664) 1,038 --------- --------- --------- --------- Total increase (decrease) (13) 8,913 (4,093) 1,246 --------- --------- --------- --------- Net assets at December 31, 2004 $ 162 $ 67,220 $ 55,511 $ 3,975 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 114 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
AIM V.I. AIM V.I. Health AIM V.I. Premier AIM V.I. Sciences Leisure Equity Utilities --------- --------- --------- --------- Net assets at January 1, 2003 $ 30,558 $ 6,097 $ 80 $ 7,783 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1,096) (358) (1) (22) Net realized gain (loss) on investments 285 (11) (6) (293) Net unrealized appreciation (depreciation) of investments and capital gains distributions 12,824 4,839 29 2,884 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 12,013 4,470 22 2,569 Changes from contract transactions: Purchase payments 36,226 16,623 89 10,772 Contract distributions and terminations (1,743) (448) -- (470) Transfer payments from (to) other Divisions (including the fixed accounts), net 9,610 7,668 (17) 6,314 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 44,093 23,843 72 16,616 --------- --------- --------- --------- Total increase (decrease) 56,106 28,313 94 19,185 --------- --------- --------- --------- Net assets at December 31, 2003 86,664 34,410 174 26,968 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (2,201) (802) (2) (127) Net realized gain (loss) on investments 7,211 1,182 8 3,034 Capital gains distributions -- 45 -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions (1,366) 4,862 (2) 7,772 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 3,644 5,287 4 10,679 Changes from contract transactions: Purchase payments 13,998 15,371 2 13,907 Contract distributions and terminations (3,633) (1,104) -- (1,666) Transfer payments from (to) other Divisions (including the fixed accounts), net (8,644) 1,956 (23) 27,663 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,721 16,223 (21) 39,904 --------- --------- --------- --------- Total increase (decrease) 5,365 21,510 (17) 50,583 --------- --------- --------- --------- Net assets at December 31, 2004 $ 92,029 $ 55,920 $ 157 $ 77,551 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 115 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
Alliance- Alliance- Fidelity(R) Bernstein Bernstein Alliance- VIP Growth and Premier Bernstein Equity- Income Growth Value Income --------- --------- --------- --------- Net assets at January 1, 2003 $ 4,730 $ 2,094 $ 2,709 $ 23,851 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (58) (47) (40) (852) Net realized gain (loss) on investments (169) 61 (77) 1,150 Net unrealized appreciation (depreciation) of investments and capital gains distributions 2,108 540 1,249 19,809 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1,881 554 1,132 20,107 Changes from contract transactions: Purchase payments 2,715 676 1,637 65,306 Contract distributions and terminations (314) (120) (248) (2,043) Transfer payments from (to) other Divisions (including the fixed accounts), net 2,485 336 1,330 38,035 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 4,886 892 2,719 101,298 --------- --------- --------- --------- Total increase (decrease) 6,767 1,446 3,851 121,405 --------- --------- --------- --------- Net assets at December 31, 2003 11,497 3,540 6,560 145,256 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (147) (70) (70) (1,751) Net realized gain (loss) on investments 37 110 188 4,256 Capital gains distributions -- -- -- 594 Net unrealized appreciation (depreciation) of investments and capital gains distributions 1,425 284 850 15,452 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1,315 324 968 18,551 Changes from contract transactions: Purchase payments 4,155 1,132 2,288 75,535 Contract distributions and terminations (790) (211) (277) (6,451) Transfer payments from (to) other Divisions (including the fixed accounts), net 799 109 871 12,523 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 4,164 1,030 2,882 81,607 --------- --------- --------- --------- Total increase (decrease) 5,479 1,354 3,850 100,158 --------- --------- --------- --------- Net assets at December 31, 2004 $ 16,976 $ 4,894 $ 10,410 $ 245,414 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 116 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
Franklin Fidelity(R) Small Cap Fidelity(R) VIP VIP Fidelity(R) VIP Value Growth Contrafund Overseas Securities --------- --------- --------- --------- Net assets at January 1, 2003 $ 23,212 $ 4,438 $ 9 $ 17 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1,690) (139) (1) (1) Net realized gain (loss) on investments 3,517 17 70 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 21,592 2,949 20 42 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 23,419 2,827 89 41 Changes from contract transactions: Purchase payments 95,702 9,959 124 180 Contract distributions and terminations (2,427) (321) -- -- Transfer payments from (to) other Divisions (including the fixed accounts), net 45,736 4,410 638 (2) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 139,011 14,048 762 178 --------- --------- --------- --------- Total increase (decrease) 162,430 16,875 851 219 --------- --------- --------- --------- Net assets at December 31, 2003 185,642 21,313 860 236 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (4,530) (451) 2 (4) Net realized gain (loss) on investments 7,717 143 27 16 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions (1,874) 5,097 -- 128 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1,313 4,789 29 140 Changes from contract transactions: Purchase payments 70,474 15,129 100 552 Contract distributions and terminations (6,279) (842) (15) (3) Transfer payments from (to) other Divisions (including the fixed accounts), net (11,191) 6,470 (516) 93 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 53,004 20,757 (431) 642 --------- --------- --------- --------- Total increase (decrease) 54,317 25,546 (402) 782 --------- --------- --------- --------- Net assets at December 31, 2004 $ 239,959 $ 46,859 $ 458 $ 1,018 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 117 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ING Goldman Janus Aspen Sachs(R) Janus Aspen Series Capital Greenwich Series Flexible Growth Appreciation Balanced Income --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ 589 $ 496 $ 283 Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- (5) 37 38 Net realized gain (loss) on investments -- (15) (1) 22 Net unrealized appreciation (depreciation) of investments and capital gains distributions -- 141 346 (5) --------- --------- --------- --------- Net increase (decrease) in net assets from operations -- 121 382 55 Changes from contract transactions: Purchase payments -- 6 3,680 1,919 Contract distributions and terminations -- (24) (22) (71) Transfer payments from (to) other Divisions (including the fixed accounts), net -- (29) (72) (313) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions -- (47) 3,586 1,535 --------- --------- --------- --------- Total increase (decrease) -- 74 3,968 1,590 --------- --------- --------- --------- Net assets at December 31, 2003 -- 663 4,464 1,873 Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- (2) 59 93 Net realized gain (loss) on investments -- 10 115 3 Capital gains distributions -- -- -- 14 Net unrealized appreciation (depreciation) of investments and capital gains distributions 1 36 127 (58) --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1 44 301 52 Changes from contract transactions: Purchase payments 6 23 376 240 Contract distributions and terminations -- (16) (137) (124) Transfer payments from (to) other Divisions (including the fixed accounts), net 2 (88) (718) (273) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 8 (81) (479) (157) --------- --------- --------- --------- Total increase (decrease) 9 (37) (178) (105) --------- --------- --------- --------- Net assets at December 31, 2004 $ 9 $ 626 $ 4,286 $ 1,768 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 118 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
Janus Aspen Janus Aspen Series Colonial Liberty Series Worldwide Small Cap Asset Growth Growth Value Allocation --------- --------- --------- --------- Net assets at January 1, 2003 $ 192 $ 3,534 $ -- $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (4) (29) (43) (7) Net realized gain (loss) on investments (8) 461 582 5 Net unrealized appreciation (depreciation) of investments and capital gains distributions 165 941 2,851 105 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 153 1,373 3,390 103 Changes from contract transactions: Purchase payments 759 3,026 19,000 -- Contract distributions and terminations -- (209) (212) (8) Transfer payments from (to) other Divisions (including the fixed accounts), net (97) (524) 18,817 506 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 662 2,293 37,605 498 --------- --------- --------- --------- Total increase (decrease) 815 3,666 40,995 601 --------- --------- --------- --------- Net assets at December 31, 2003 1,007 7,200 40,995 601 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (8) (34) (2,288) 3 Net realized gain (loss) on investments 51 222 777 10 Capital gains distributions -- -- 5,724 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions (33) (25) 25,388 32 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 10 163 29,601 45 Changes from contract transactions: Purchase payments 86 863 121,588 -- Contract distributions and terminations (1) (204) (3,224) (35) Transfer payments from (to) other Divisions (including the fixed accounts), net (350) (1,303) 51,464 (10) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (265) (644) 169,828 (45) --------- --------- --------- --------- Total increase (decrease) (255) (481) 199,429 -- --------- --------- --------- --------- Net assets at December 31, 2004 $ 752 $ 6,719 $ 240,424 $ 601 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 119 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
Liberty Liberty Small Oppenheimer Liberty Federal Company Global Equity Securities Growth Securities --------- --------- --------- --------- Net assets at January 1, 2003 $ 487 $ -- $ -- $ 205 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (8) (1) (1) (6) Net realized gain (loss) on investments (56) 1 4 (4) Net unrealized appreciation (depreciation) of investments and capital gains distributions 193 2 26 523 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 129 2 29 513 Changes from contract transactions: Purchase payments -- -- -- 2,095 Contract distributions and terminations (11) (2) (2) (3) Transfer payments from (to) other Divisions (including the fixed accounts), net 43 87 48 91 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 32 85 46 2,183 --------- --------- --------- --------- Total increase (decrease) 161 87 75 2,696 --------- --------- --------- --------- Net assets at December 31, 2003 648 87 75 2,901 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (7) 3 (2) (3) Net realized gain (loss) on investments (46) -- 13 244 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 86 (2) (7) 844 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 33 1 4 1,085 Changes from contract transactions: Purchase payments 1 -- -- 2,855 Contract distributions and terminations (33) (16) (10) (82) Transfer payments from (to) other Divisions (including the fixed accounts), net (31) 18 12 881 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (63) 2 2 3,654 --------- --------- --------- --------- Total increase (decrease) (30) 3 6 4,739 --------- --------- --------- --------- Net assets at December 31, 2004 $ 618 $ 90 $ 81 $ 7,640 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 120 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
PIMCO Oppenheimer PIMCO StocksPLUS Pioneer Strategic High Growth and Equity- Bond Yield Income Income VCT --------- --------- --------- --------- Net assets at January 1, 2003 $ 16 $ 305,237 $ 181,637 $ 179 Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- 24,725 293 7 Net realized gain (loss) on investments 21 (3,672) (32,864) (2) Net unrealized appreciation (depreciation) of investments and capital gains distributions 14 61,195 78,606 128 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 35 82,248 46,035 133 Changes from contract transactions: Purchase payments 582 138,449 13,029 688 Contract distributions and terminations (4) (25,898) (12,150) (1) Transfer payments from (to) other Divisions (including the fixed accounts), net 73 108,739 (38,015) 11 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 651 221,290 (37,136) 698 --------- --------- --------- --------- Total increase (decrease) 686 303,538 8,899 831 --------- --------- --------- --------- Net assets at December 31, 2003 702 608,775 190,536 1,010 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 35 9,327 (349) 16 Net realized gain (loss) on investments 15 33,855 693 32 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 42 (46,475) 13,866 129 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 92 (3,293) 14,210 177 Changes from contract transactions: Purchase payments 801 47,772 443 324 Contract distributions and terminations (58) (10,431) (10,192) (45) Transfer payments from (to) other Divisions (including the fixed accounts), net (41) (642,823) (23,974) 193 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 702 (605,482) (33,723) 472 --------- --------- --------- --------- Total increase (decrease) 794 (608,775) (19,513) 649 --------- --------- --------- --------- Net assets at December 31, 2004 $ 1,496 $ -- $ 171,023 $ 1,659 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 121 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
Pioneer Pioneer Pioneer Mid-Cap Small ProFund Fund VCT Value VCT Company VCT VP Bull --------- --------- --------- --------- Net assets at January 1, 2003 $ 20,064 $ 53,062 $ 3,417 $ 31,265 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (398) (1,785) (67) (982) Net realized gain (loss) on investments (651) (273) (73) 7,956 Net unrealized appreciation (depreciation) of investments and capital gains distributions 9,623 34,933 1,100 4,488 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 8,574 32,875 960 11,462 Changes from contract transactions: Purchase payments 23,708 78,759 1,012 14,159 Contract distributions and terminations (1,307) (3,194) (57) (2,243) Transfer payments from (to) other Divisions (including the fixed accounts), net 11,494 28,991 1,059 31,021 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 33,895 104,556 2,014 42,937 --------- --------- --------- --------- Total increase (decrease) 42,469 137,431 2,974 54,399 --------- --------- --------- --------- Net assets at December 31, 2003 62,533 190,493 6,391 85,664 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (887) (6,561) (123) (1,816) Net realized gain (loss) on investments 2,645 2,754 72 3,873 Capital gains distributions -- 3,429 -- 1,374 Net unrealized appreciation (depreciation) of investments and capital gains distributions 4,835 67,636 851 1,952 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 6,593 67,258 800 5,383 Changes from contract transactions: Purchase payments 15,825 189,367 2,002 10,550 Contract distributions and terminations (2,939) (10,326) (219) (4,801) Transfer payments from (to) other Divisions (including the fixed accounts), net 1,513 48,908 (992) 9,349 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 14,399 227,949 791 15,098 --------- --------- --------- --------- Total increase (decrease) 20,992 295,207 1,591 20,481 --------- --------- --------- --------- Net assets at December 31, 2004 $ 83,525 $ 485,700 $ 7,982 $ 106,145 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 122 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
ProFund VP ProFund Rising Rates ProFund VP VP Europe 30 Opportunity Small Cap Jennison --------- --------- --------- --------- Net assets at January 1, 2003 $ 15,627 $ -- $ 38,612 $ 37,748 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (267) (99) (1,199) (969) Net realized gain (loss) on investments 3,373 (117) 13,339 690 Net unrealized appreciation (depreciation) of investments and capital gains distributions 2,207 (608) 6,166 11,818 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 5,313 (824) 18,306 11,539 Changes from contract transactions: Purchase payments 4,055 2,018 20,314 11,809 Contract distributions and terminations (807) (251) (2,824) (1,725) Transfer payments from (to) other Divisions (including the fixed accounts), net 8,686 22,032 52,837 (647) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 11,934 23,799 70,327 9,437 --------- --------- --------- --------- Total increase (decrease) 17,247 22,975 88,633 20,976 --------- --------- --------- --------- Net assets at December 31, 2003 32,874 22,975 127,245 58,724 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (653) (860) (2,413) (1,246) Net realized gain (loss) on investments 2,686 (3,764) 4,646 1,383 Capital gains distributions 289 -- 3,374 -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 679 (4,848) 7,782 4,180 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 3,001 (9,472) 13,389 4,317 Changes from contract transactions: Purchase payments 6,560 17,704 22,429 6,205 Contract distributions and terminations (2,848) (2,090) (5,455) (2,360) Transfer payments from (to) other Divisions (including the fixed accounts), net (2,350) 23,261 (9,964) 199 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 1,362 38,875 7,010 4,044 --------- --------- --------- --------- Total increase (decrease) 4,363 29,403 20,399 8,361 --------- --------- --------- --------- Net assets at December 31, 2004 $ 37,237 $ 52,378 $ 147,644 $ 67,085 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 123 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
SP Putnam VT William Blair Putnam VT Putnam VT International International Discovery Growth and Growth and Growth Growth Income Income --------- --------- --------- --------- Net assets at January 1, 2003 $ 15,341 $ 1,645 $ 1,662 $ 2,981 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (624) (39) (2) (1) Net realized gain (loss) on investments 3,034 (50) (94) (129) Net unrealized appreciation (depreciation) of investments and capital gains distributions 9,129 703 648 1,208 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 11,539 614 552 1,078 Changes from contract transactions: Purchase payments 30,145 811 1,279 856 Contract distributions and terminations (802) (91) (93) (47) Transfer payments from (to) other Divisions (including the fixed accounts), net 12,390 194 (199) (569) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 41,733 914 987 240 --------- --------- --------- --------- Total increase (decrease) 53,272 1,528 1,539 1,318 --------- --------- --------- --------- Net assets at December 31, 2003 68,613 3,173 3,201 4,299 Increase (decrease) in net assets from operations Operations: Net investment income (loss) (1,966) (50) -- (11) Net realized gain (loss) on investments 7,239 (29) 54 462 Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 6,690 229 237 194 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 11,963 150 291 645 Changes from contract transactions: Purchase payments 25,257 88 315 295 Contract distributions and terminations (2,636) (110) (280) (89) Transfer payments from (to) other Divisions (including the fixed accounts), net 5,183 (270) (165) (1,541) --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 27,804 (292) (130) (1,335) --------- --------- --------- --------- Total increase (decrease) 39,767 (142) 161 (690) --------- --------- --------- --------- Net assets at December 31, 2004 $ 108,380 $ 3,031 $ 3,362 $ 3,609 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 124 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
Smith Barney International Smith Barney Smith Barney Smith Barney All Cap Large Money High Income Growth Cap Value Market --------- --------- --------- --------- Net assets at January 1, 2003 $ 319 $ 201 $ 371 $ 143 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 16 (1) -- (11) Net realized gain (loss) on investments (81) (25) (41) -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 134 71 125 -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 69 45 84 (11) Changes from contract transactions: Purchase payments -- -- -- -- Contract distributions and terminations (18) (5) (24) (310) Transfer payments from (to) other Divisions (including the fixed accounts), net (62) (20) (26) 228 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (80) (25) (50) (82) --------- --------- --------- --------- Total increase (decrease) (11) 20 34 (93) --------- --------- --------- --------- Net assets at December 31, 2003 308 221 405 50 Increase (decrease) in net assets from operations Operations: Net investment income (loss) 17 (1) 2 (5) Net realized gain (loss) on investments (42) (15) (7) -- Capital gains distributions -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 48 47 42 -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 23 31 37 (5) Changes from contract transactions: Purchase payments -- 5 14 -- Contract distributions and terminations (15) (7) (29) (255) Transfer payments from (to) other Divisions (including the fixed accounts), net (51) (36) (5) 247 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions (66) (38) (20) (8) --------- --------- --------- --------- Total increase (decrease) (43) (7) 17 (13) --------- --------- --------- --------- Net assets at December 31, 2004 $ 265 $ 214 $ 422 $ 37 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 125 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
Wells Fargo Wells Fargo Wells Fargo UBS U.S. VT Asset VT Equity VT Equity Allocation Allocation Income Value --------- --------- --------- --------- Net assets at January 1, 2003 $ 1,548 $ -- $ -- $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (22) -- -- -- Net realized gain (loss) on investments (51) -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 694 -- -- -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 621 -- -- -- Changes from contract transactions: Purchase payments 784 25 11 -- Contract distributions and terminations (133) -- -- -- Transfer payments from (to) other Divisions (including the fixed accounts), net 1,764 -- -- -- --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 2,415 25 11 -- --------- --------- --------- --------- Total increase (decrease) 3,036 25 11 -- --------- --------- --------- --------- Net assets at December 31, 2003 4,584 25 11 -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (48) 6 (1) (1) Net realized gain (loss) on investments 47 (6) 1 1 Capital gains distributions -- 29 -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 461 93 54 12 --------- --------- --------- --------- Net increase (decrease) in net assets from operations 460 122 54 12 Changes from contract transactions: Purchase payments 698 1,648 632 136 Contract distributions and terminations (261) -- (5) (3) Transfer payments from (to) other Divisions (including the fixed accounts), net 346 85 190 66 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 783 1,733 817 199 --------- --------- --------- --------- Total increase (decrease) 1,243 1,855 871 211 --------- --------- --------- --------- Net assets at December 31, 2004 $ 5,827 $ 1,880 $ 882 $ 211 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 126 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Statements of Changes in Net Assets December 31, 2004 (Dollars in thousands)
Wells Fargo VT Large Wells Fargo Wells Fargo Wells Fargo Company VT Money VT Small Cap VT Total Growth Market Growth Return Bond --------- --------- --------- --------- Net assets at January 1, 2003 $ -- $ -- $ -- $ -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) -- -- -- -- Net realized gain (loss) on investments -- -- -- -- Net unrealized appreciation (depreciation) of investments and capital gains distributions 1 -- -- -- --------- --------- --------- --------- Net increase (decrease) in net assets from operations 1 -- -- -- Changes from contract transactions: Purchase payments 33 -- 7 -- Contract distributions and terminations -- -- -- -- Transfer payments from (to) other Divisions (including the fixed accounts), net -- -- -- -- --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 33 -- 7 -- --------- --------- --------- --------- Total increase (decrease) 34 -- 7 -- --------- --------- --------- --------- Net assets at December 31, 2003 34 -- 7 -- Increase (decrease) in net assets from operations Operations: Net investment income (loss) (25) (2) (4) 3 Net realized gain (loss) on investments (2) -- 1 (1) Capital gains distributions -- -- -- 9 Net unrealized appreciation (depreciation) of investments and capital gains distributions 106 -- 55 (5) --------- --------- --------- --------- Net increase (decrease) in net assets from operations 79 (2) 52 6 Changes from contract transactions: Purchase payments 1,924 2,310 403 346 Contract distributions and terminations (5) (1) (1) -- Transfer payments from (to) other Divisions (including the fixed accounts), net 234 (1,938) 108 132 --------- --------- --------- --------- Net increase (decrease) in net assets derived from principal transactions 2,153 371 510 478 --------- --------- --------- --------- Total increase (decrease) 2,232 369 562 484 --------- --------- --------- --------- Net assets at December 31, 2004 $ 2,266 $ 369 $ 569 $ 484 ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. 127 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- 1. Organization Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) (the "Account") was established by ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company) ("ING USA" or the "Company") to support the operations of variable annuity contracts ("Contracts"). The Company is an indirect, wholly-owned subsidiary of ING Groep, N.V. ("ING"), a global financial services holding company based in The Netherlands. On January 1, 2004 (the "merger date"), Equitable Life Insurance Company of Iowa, USG Annuity & Life Company, and United Life & Annuity Insurance Company (the "Merger Companies"), merged with and into Golden American Life Insurance Company ("Golden American"). Also on January 1, 2004, immediately after the merger, Golden American changed its name to ING USA Annuity and Life Insurance Company. As of the merger date, the Merger Companies ceased to exist and were succeeded by ING USA. In conjunction with the Golden American name change, the Account changed its name to Separate Account B of ING USA Annuity and Life Insurance Company. The Account is registered as a unit investment trust with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended. ING USA provides for variable accumulation and benefits under the Contracts by crediting annuity considerations to one or more divisions within the Account or the ING USA guaranteed interest division, the ING USA fixed interest division, and the fixed separate account, which are not part of the Account, as directed by the Contractowners. The portion of the Account's assets applicable to Contracts will not be charged with liabilities arising out of any other business ING USA may conduct, but obligations of the Account, including the promise to make benefit payments, are obligations of ING USA. The assets and liabilities of the Account are clearly identified and distinguished from the other assets and liabilities of ING USA. During 2004, the Account had ING GoldenSelect Contracts, ING SmartDesign Contracts, ING Rollover Choice Contracts, ING Focus Variable Annuity ("Focus VA") Contracts, ING PrimElite, and Wells Fargo ING Contracts. ING GoldenSelect Contracts sold by ING USA during 2003 included Access, Premium Plus, ESII, Access One, Landmark, Generations, and Opportunities Contracts. ING SmartDesign Contracts included Variable Annuity ("VA"), Advantage, and Signature Contracts. Wells Fargo ING Contracts included Opportunities Contracts and Landmark Contracts. The Account discontinued offering DVA 80 Contracts in May 1991 and discontinued registering DVA and DVA Series 100 Contracts for sale to the public as of May 1, 2000. 128 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- The Account also includes The Fund For Life Division, which is not included in the accompanying financial statements, and which ceased to accept new Contracts effective December 31, 1994. At December 31, 2004, the Account had 186 investment divisions (the "Divisions"), 55 of which invest in independently managed mutual funds and 131 of which invest in mutual funds managed by affiliates, either Direct Services, Inc., ING Investments, LLC, or ING Life Insurance and Annuity Company. The assets in each Division are invested in shares of a designated series ("Series," which may also be referred to as "Portfolio" or "Fund") of various investment trusts (the "Trusts"). Investment Divisions at December 31, 2004 and related Trusts are as follows: ING GET Fund: ING GET Fund - Series N ING GET Fund - Series P ING GET Fund - Series Q ING GET Fund - Series R ING GET Fund - Series S ING GET Fund - Series T ING GET Fund - Series U ING GET Fund - Series V* ING Investors Trust: ING AIM Mid-Cap Growth Portfolio (Service Class) ING AIM Mid-Cap Growth Portfolio (Advisor Class) ING Alliance Mid-Cap Growth Portfolio (Service Class) ING Alliance Mid-Cap Growth Portfolio (Advisor Class) ING American Funds Growth Portfolio (Service Class)* ING American Funds Growth-Income Portfolio (Service Class)* ING American Funds International Portfolio (Service Class)* ING Capital Guardian Large Cap Value Portfolio (Service Class) ING Capital Guardian Large Cap Value Portfolio (Advisor Class) ING Capital Guardian Managed Global Portfolio (Service Class) ING Capital Guardian Managed Global Portfolio (Advisor Class) ING Capital Guardian Small Cap Portfolio (Service Class) ING Capital Guardian Small Cap Portfolio (Advisor Class) ING Developing World Portfolio (Service Class) ING Developing World Portfolio (Advisor Class) ING Eagle Asset Capital Appreciation Portfolio (Service Class) ING Eagle Asset Capital Appreciation Portfolio (Advisor Class) ING Evergreen Health Sciences (Advisor Class)** ING Evergreen Health Sciences (Service Class)** ING Evergreen Omega (Advisor Class)** ING Evergreen Omega (Service Class)** ING FMR Diversified Mid-Cap Portfolio (Service Class) ING FMR Diversified Mid-Cap Portfolio (Advisor Class) ING Goldman Sachs Tollkeeper Portfolio (Service Class) ING Goldman Sachs Tollkeeper Portfolio (Advisor Class) ING Hard Assets Portfolio (Service Class) ING Hard Assets Portfolio (Advisor Class) ING International Portfolio (Service Class) ING International Portfolio (Advisor Class) ING Janus Special Equity Portfolio (Service Class) ING Janus Special Equity Portfolio (Advisor Class) ING Jennison Equity Opportunities Portfolio (Service Class) ING Jennison Equity Opportunities Portfolio (Advisor Class) ING JPMorgan Small Cap Equity Portfolio (Service Class) ING JPMorgan Small Cap Equity Portfolio (Advisor Class) ING Julius Baer Foreign Portfolio (Service Class) ING Julius Baer Foreign Portfolio (Advisor Class) 129 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- ING Investors Trust (continued): ING Legg Mason Value Portfolio (Service Class) ING Legg Mason Value Portfolio (Advisor Class) ING LifeStyle Aggressive Growth** ING LifeStyle Growth** ING LifeStyle Moderate Growth** ING LifeStyle Moderate** ING Limited Maturity Bond Portfolio (Service Class) ING Liquid Assets Portfolio (Service Class) ING Liquid Assets Portfolio (Advisor Class) ING Marsico Growth Portfolio (Service Class) ING Marsico Growth Portfolio (Advisor Class) ING Mercury Focus Value Portfolio (Service Class) ING Mercury Focus Value Portfolio (Advisor Class) ING Mercury Large Cap Growth Portfolio (Service Class) ING Mercury Large Cap Growth Portfolio (Advisor Class) ING MFS(R) Mid-Cap Growth Portfolio (Service Class) ING MFS(R) Mid-Cap Growth Portfolio (Advisor Class) ING MFS(R) Total Return Portfolio (Service Class) ING MFS(R) Total Return Portfolio (Advisor Class) ING Oppenheimer Main Street Portfolio (Service Class) ING Oppenheimer Main Street Portfolio (Advisor Class) ING PIMCO Core Bond Portfolio (Service Class) ING PIMCO Core Bond Portfolio (Advisor Class) ING PIMCO High Yield** ING Salomon Brothers All Cap Portfolio (Service Class) ING Salomon Brothers All Cap Portfolio (Advisor Class) ING Salomon Brothers Investors Portfolio (Service Class) ING Salomon Brothers Investors Portfolio (Advisor Class) ING T. Rowe Price Capital Appreciation Portfolio (Service Class) ING T. Rowe Price Capital Appreciation Portfolio (Advisor Class) ING T. Rowe Price Equity Income Portfolio (Service Class) ING T. Rowe Price Equity Income Portfolio (Advisor Class) ING UBS U.S. Balanced Portfolio (Service Class) ING UBS U.S. Balanced Portfolio (Advisor Class)* ING Van Kampen Equity Growth Portfolio (Service Class) ING Van Kampen Equity Growth Portfolio (Advisor Class) ING Van Kampen Global Franchise Portfolio (Service Class) ING Van Kampen Global Franchise Portfolio (Advisor Class) ING Van Kampen Growth and Income Portfolio (Service Class) ING Van Kampen Growth and Income Portfolio (Advisor Class) ING Van Kampen Real Estate Portfolio (Service Class) ING Van Kampen Real Estate Portfolio (Advisor Class) ING Partners, Inc.: ING American Century Select Portfolio (Service Class) ING American Century Small Cap Value Portfolio (Service Class) ING Baron Small Cap Growth Portfolio (Service Class)* ING JPMorgan International Portfolio (Service Class) ING JPMorgan Mid Cap Value Portfolio (Service Class) ING MFS(R) Capital Opportunities Portfolio (Initial Class) ING MFS(R) Capital Opportunities Portfolio (Service Class) ING OpCap Balanced Value Portfolio (Service Class) ING Oppenheimer Global Portfolio (Service Class) ING PIMCO Total Return Portfolio (Service Class) ING Salomon Brothers Aggressive Growth Portfolio (Service Class)* ING Salomon Brothers Fundamental Value Portfolio (Service Class) ING Salomon Brothers Investors Value Portfolio (Service Class) ING T. Rowe Price Diversified Mid Cap Growth Portfolio (Service Class)* 130 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- ING Partners, Inc. (continued): ING T. Rowe Price Growth Equity Portfolio (Service Class) ING UBS U.S. Large Cap Equity Portfolio (Service Class)* ING Van Kampen Comstock Fund (Service Class) ING Van Kampen Equity and Income Portfolio (Service Class) ING Variable Insurance Trust: ING GET U.S. Core Portfolio - Series 1* ING GET U.S. Core Portfolio - Series 2 (Guaranteed)* ING GET U.S. Core Portfolio - Series 3* ING GET U.S. Core Portfolio - Series 4** ING GET U.S. Core Portfolio - Series 5** ING GET U.S. Core Portfolio - Series 6** ING GET U.S. Core Portfolio - Series 7** ING VP Worldwide Growth Portfolio ING Variable Portfolios, Inc.: ING VP Balanced Portfolio (Service Class)* ING VP Growth Portfolio (Service Class) ING VP Index Plus LargeCap Portfolio (Service Class) ING VP Index Plus MidCap Portfolio (Service Class) ING VP Index Plus SmallCap Portfolio (Service Class) ING VP Intermediate Bond Portfolio (Service Class) ING VP International Equity Portfolio (Service Class)* ING VP Small Company Portfolio (Service Class) ING VP Value Opportunity Portfolio (Service Class) ING Variable Products Trust: ING VP Convertible Portfolio (Service Class) ING VP Financial Services Portfolio (Service Class)** ING VP Growth and Income Portfolio (Service Class)* ING VP International Value Portfolio (Service Class) ING VP LargeCap Growth Portfolio (Service Class) ING VP MagnaCap Portfolio (Service Class) ING VP MidCap Opportunities Portfolio (Service Class) ING VP SmallCap Opportunities Portfolio (Service Class) AIM Variable Insurance Funds: AIM V.I. Capital Appreciation Fund (Class II) AIM V.I. Core Equity Fund (Class II) AIM V.I. Dent Demographic Trends Fund (Class II) AIM V.I. Financial Services Fund AIM V.I. Growth Fund (Class II) AIM V.I. Health Sciences Fund AIM V.I. Leisure Fund AIM V.I. Premier Equity Fund (Class II) AIM V.I. Utilities Fund AllianceBernstein Variable Products Series Fund, Inc.: AllianceBernstein Growth and Income Portfolio (Class B) AllianceBernstein Premier Growth Portfolio (Class B) AllianceBernstein Value Portfolio (Class B) Fidelity Variable Insurance Products Fund: Fidelity(R) VIP Equity-Income Portfolio (Class S2) Fidelity(R) VIP Growth Portfolio (Class S2) Fidelity(R) VIP Contrafund(R) Portfolio (Class S2) Fidelity(R) VIP Overseas Portfolio (Class S2) Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities Fund (Class 2) Goldman Sachs Asset Management, L.P.: ING Goldman Sachs(R) Capital Growth** Greenwich Street Series Fund: Greenwich Appreciation Portfolio Janus Aspen Series: Janus Aspen Series Balanced Portfolio (Class S) Janus Aspen Series Flexible Income Portfolio (Class S) Janus Aspen Series Growth Portfolio (Class S) Janus Aspen Series Worldwide Growth Portfolio (Class S) Liberty Variable Insurance Trust: Colonial Small Cap Value Fund (Class B)* Liberty Variable Series: Liberty Asset Allocation Fund Variable Series (Class A)* Liberty Equity Fund Variable Series (Class A) Liberty Federal Securities Fund Variable Series (Class A)* Liberty Small Company Growth Fund Variable Series (Class A)* 131 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities Fund/VA (Class S) Oppenheimer Strategic Bond Fund/VA (Class S) PIMCO Variable Insurance Trust: PIMCO StocksPLUS Growth and Income Portfolio Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT Portfolio (Class II) Pioneer Fund VCT Portfolio (Class II) Pioneer Mid-Cap Value VCT Pioneer Small Company VCT Portfolio (Class II) ProFunds VP: ProFund VP Bull ProFund VP Europe 30 ProFund VP Rising Rates Opportunity* ProFund VP Small Cap Prudential Series Fund, Inc.: Jennison Portfolio (Class II) SP William Blair International Growth Portfolio (Class II) Putnam Variable Trust: Putnam VT Discovery Growth Fund (Class IB) Putnam VT Growth and Income (Class IB) Putnam VT International Growth and Income (Class IB) Travelers Series Fund Inc.: Smith Barney High Income Smith Barney International All Cap Growth Smith Barney Large Cap Value Smith Barney Money Market UBS Series Trust: UBS U.S. Allocation Portfolio (Class I) Wells Fargo: Wells Fargo VT Asset Allocation* Wells Fargo VT Equity Income Fund* Wells Fargo VT Equity Value** Wells Fargo VT Large Company Growth* Wells Fargo VT Money Market** Wells Fargo VT Small Cap Growth* Wells Fargo VT Total Return Bond** * Investments added in 2003 ** Investments added in 2004 The names of certain Divisions were changed during 2004. The following is a summary of current and former names for those Divisions:
Current Name Former Name - ----------------------------------------------------------------- ----------------------------------------------------------------- ING Investors Trust: ING Investors Trust: ING Eagle Asset Capital Appreciation Portfolio (Service Class) ING Eagle Asset Value Equity Portfolio (Service Class) ING Eagle Asset Capital Appreciation Portfolio (Advisor Class) ING Eagle Asset Value Equity Portfolio (Advisor Class) ING Goldman Sachs Tollkeeper Portfolio (Service Class) ING Goldman Sachs Internet Tollkeeper Portfolio (Service Class) ING Goldman Sachs Tollkeeper Portfolio (Advisor Class) ING Goldman Sachs Internet Tollkeeper Portfolio (Advisor Class) ING Legg Mason Value Portfolio (Service Class) ING Janus Growth and Income Portfolio (Service Class) ING Legg Mason Value Portfolio (Advisor Class) ING Janus Growth and Income Portfolio (Advisor Class) ING JPMorgan Small Cap Equity Portfolio (Service Class) ING JPMorgan Fleming Small Cap Equity Portfolio (Service Class) ING JPMorgan Small Cap Equity Portfolio (Advisor Class) ING JPMorgan Fleming Small Cap Equity Portfolio (Advisor Class) ING Mercury Large Cap Growth Portfolio (Service Class) ING Mercury Fundamental Growth Portfolio (Service Class) ING Mercury Large Cap Growth Portfolio (Advisor Class) ING Mercury Fundamental Growth Portfolio (Advisor Class) ING Oppenheimer Main Street Portfolio (Service Class) ING MFS(R) Research Portfolio (Service Class) ING Oppenheimer Main Street Portfolio (Advisor Class) ING MFS(R) Research Portfolio (Advisor Class)
132 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Current Name Former Name - -------------------------------------------------------------------------- -------------------------------------------------------- ING Partners, Inc: ING Partners, Inc: ING American Century Select Portfolio (Service Class) ING Alger Growth Portfolio (Service Class) ING JPMorgan International Portfolio (Service Class) ING JPMorgan Fleming International Portfolio (Service Class) ING Oppenheimer Global Portfolio (Service Class) ING MFS Global Growth Portfolio (Service Class) ING T. Rowe Price Diversified Mid Cap Growth Portfolio - Service Class ING Alger Aggressive Growth Portfolio (Service Class) ING UBS U.S. Large Cap Equity Portfolio (Service Class) ING MFS Research Equity Portfolio (Service Class) ING Van Kampen Equity and Income Portfolio (Service Class) ING UBS Tactical Asset Allocation Portfolio (Service Class) ING Variable Insurance Trust: ING Variable Insurance Trust: ING VP Worldwide Growth Portfolio ING VIT Worldwide Growth ING Variable Portfolios, Inc: ING Variable Portfolios, Inc: ING VP Intermediate Bond Portfolio (Service Class) ING VP Bond Portfolio (Service Class) AIM Variable Insurance Funds: AIM Variable Insurance Funds: AIM V.I. Financial Services Fund INVESCO VIF - Financial Services Fund AIM V.I. Health Sciences Fund INVESCO VIF - Health Sciences Fund AIM V.I. Leisure Fund INVESCO VIF - Leisure Fund AIM V.I. Utilities Fund INVESCO VIF - Utilities Fund Prudential Series Fund, Inc: Prudential Series Fund, Inc: SP William Blair International Growth Portfolio (Class II) SP Jennison International Growth Portfolio (Class II) UBS Series Trust: UBS Series Trust: UBS U.S. Allocation Portfolio (Class I) UBS Tactical Allocation Portfolio (Class I)
During 2004, the ING VP Growth Opportunities Portfolio (Service Class) and PIMCO High Yield Portfolio were closed to Contractowners. 2. Significant Accounting Policies The following is a summary of the significant accounting policies of the Account: Use of Estimates The preparation of the 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 those estimates. 133 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Investments Investments are made in shares of a Series or Portfolio of the Trusts and are recorded at fair value, determined by the net asset value per share of the respective Series or Portfolio of the Trusts. Investment transactions in each Series or Portfolio of the Trusts are recorded on the trade date. Distributions of net investment income and capital gains from each Series or Portfolio of the Trusts are recognized on the ex-distribution date. Realized gains and losses on redemptions of the shares of the Series or Portfolio of the Trusts are determined on the specific identification basis. The difference between cost and current market value of investments owned on the day of measurement is recorded as unrealized appreciation or depreciation of investments. Federal Income Taxes Operations of the Account form a part of, and are taxed with, the total operations of ING USA, which is taxed as a life insurance company under the Internal Revenue Code. Earnings and realized capital gains of the Account attributable to the Contractowners are excluded in the determination of the federal income tax liability of ING USA. Transfers Transfers between the Account and ING USA relate to gains and losses resulting from actual mortality experience, the full responsibility for which is assumed by ING USA, Contractowner transfers between the general account and the Divisions, and other Contractowner activity, including Contract deposits and withdrawals. Unsettled transactions as of the reporting date appear on a net basis in the line Payable to ING USA Annuity and Life Insurance Company on the Statements of Assets and Liabilities. 3. Charges and Fees Prior to February 1, 2000, DVA Plus, Access, and Premium Plus Contracts each had three different death benefit options referred to as Standard, Annual Ratchet, and 7% Solution; however, in the state of Washington, the 5.5% Solution is offered instead of the 7% Solution. After February 1, 2000, DVA Plus, Access and Premium Plus each had four different death benefit options referred to as Standard, Annual Ratchet, 7% Solution and Max 7. In the state of Washington, the 5.5% Solution is offered instead of the 7% Solution and Max 5.5 is offered instead of Max 7 after February 1, 2000. ES II, Generations, Landmark and Opportunities contracts each have four different death benefit options referred to as Standard, Annual Ratchet, 7% Solution and Max 7. In the state of Washington, the 5.5% Solution is offered instead of the 7% Solution and Max 5.5 is offered instead of Max 7. Granite PrimElite has two death benefit options referred to as Standard and Annual Ratchet. 134 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Under the terms of all Contracts, certain charges are allocated to the Contracts to cover ING USA's expenses in connection with the issuance and administration of the Contracts. Following is a summary of these charges: Mortality and Expense Risk Charges ING USA assumes mortality and expense risks related to the operations of the Account and, in accordance with the terms of the Contracts, deducts a daily charge from the assets of the Account. Daily charges deducted at annual rates to cover these risks follows: Series Annual Rates ------------------------------------------------------ ---------------- DVA 80 0.80 % DVA 0.90 DVA Series 100 1.25 DVA Plus (pre February 2000) Standard 1.10 DVA Plus (post January 2000) Standard 1.15 DVA Plus (post 2000) Standard 1.15 DVA Plus (pre February 2000) Annual Ratchet 1.25 DVA Plus (pre February 2000) 5.5% Solution 1.25 DVA Plus (post January 2000) 5.5% Solution 1.25 DVA Plus (post 2000) 5.5% Solution 1.30 DVA Plus (post January 2000) Annual Ratchet 1.30 DVA Plus (pre February 2000) 7% Solution 1.40 DVA Plus (post January 2000) Max 5.5 1.40 DVA Plus (post 2000) Annual Ratchet 1.40 DVA Plus (post 2000) Max 5.5 1.45 DVA Plus (post January 2000) 7% Solution 1.50 DVA Plus (post 2000) 7% Solution 1.50 DVA Plus (post January 2000) Max 7 1.60 DVA Plus (post 2000) Max 7 1.60 Access (pre February 2000) Standard 1.25 Access (post January 2000) Standard 1.30 Access (post 2000) Standard 1.30 Access (pre February 2000) Annual Ratchet 1.40 Access (pre February 2000) 5.5% Solution 1.40 Access (post January 2000) Annual Ratchet 1.45 Access (post January 2000) 5.5 % Solution 1.45 Access (post 2000) 5.5% Solution 1.45 Access (pre February 2000) 7% Solution 1.55 Access (post January 2000) Max 5.5 1.55 Access (post 2000) Annual Ratchet 1.55 Access (post 2000) Max 5.5 1.60 Access (post January 2000) 7% Solution 1.65 135 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Series Annual Rates ------------------------------------------------------ ---------------- Access (post 2000) 7% Solution 1.65 % Access (post April 2001) Standard 1.65 Access (post January 2000) Max 7 1.75 Access (post 2000) Max 7 1.75 Access (post April 2001) 5.5% Solution 1.80 Access (post April 2001) Annual Ratchet 1.90 Access (post April 2001) Max 5.5 1.95 Access (post April 2001) 7% Solution 2.00 Access (post April 2001) Max 7 2.10 Premium Plus (pre February 2000) Standard 1.25 Premium Plus (post January 2000) Standard 1.30 Premium Plus (post 2000) Standard 1.30 Premium Plus (pre February 2000) Annual Ratchet 1.40 Premium Plus (pre February 2000) 5.5% Solution 1.40 Premium Plus (post January 2000) Annual Ratchet 1.45 Premium Plus (post January 2000) 5.5% Solution 1.45 Premium Plus (post 2000) 5.5% Solution 1.45 Premium Plus (pre February 2000) 7% Solution 1.55 Premium Plus (post January 2000) Max 5.5 1.55 Premium Plus (post 2000) Annual Ratchet 1.55 Premium Plus (post 2000) Max 5.5 1.60 Premium Plus (post January 2000) 7% Solution 1.65 Premium Plus (post 2000) 7% Solution 1.65 Premium Plus (post January 2000) Max 7 1.75 Premium Plus (post 2000) Max 7 1.75 ES II (pre 2001) 1.25 ES II (post 2000) Standard 1.25 ES II (post 2000) Deferred Ratchet 1.30 ES II (post 2000) 5.5% 1.40 ES II (post 2000) Annual Ratchet 1.50 ES II (post 2000) Max 5.5 1.55 ES II (post 2000) 7% Solution 1.60 ES II (post 2000) Max 7 1.70 Value Standard 0.75 Access One 0.35 Granite PrimElite-Standard 1.10 Granite PrimElite-Annual Ratchet 1.25 Generations-Standard 1.25 Generations-Deferred Ratchet 1.30 Generations-Annual Ratchet 1.50 Generations-7% Solution 1.60 Generations-Max 7 1.70 Landmark-Standard 1.50 Landmark-5.5% Solution 1.65 136 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Series Annual Rates ------------------------------------------------------ ---------------- Landmark-Annual Ratchet 1.75 % Landmark-Max 5.5 1.80 Landmark-7% Solution 1.85 Landmark-Max 7 1.95 VA Option I 0.80 VA Option II 1.10 VA Option III 1.25 VA Bonus Option I 1.30 VA Bonus Option II 1.60 VA Bonus Option III 1.75 Advantage Option I 2.05 Advantage Option II 2.25 Advantage Option III 2.40 Rollover Choice Option I 0.60 Rollover Choice Option II 0.80 Rollover Choice Option III 0.95 Opportunities-Standard 1.25 Opportunities-5.5% Solution 1.40 Opportunities-Annual Ratchet 1.50 Opportunities-7% Solution 1.60 Opportunities-Max 5.5 1.55 Opportunities-Max 7 1.70 Signature Option I 1.10 Signature Option II 1.30 Signature Option III 1.45 Focus VA Option I 0.60 Focus VA Option II 0.80 Asset Based Administrative Charges A daily charge at an annual rate of 0.10% is deducted from assets attributable to DVA and DVA Series 100 Contracts. A daily charge at an annual rate of 0.15% is deducted from the assets attributable to the DVA Plus, Access, Premium Plus, ESII, Value, Access One, Granite PrimElite, Generations, Landmark, VA, Advantage, Rollover Choice, Focus VA, and Opportunities Contracts. 137 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Administrative Charges An administrative charge is deducted from the accumulation value of deferred annuity contracts to cover ongoing administrative expenses. The charge is $30 per Contract year for ES II, Value, VA, Advantage, and Rollover Choice Contracts. For DVA Series 100 and Access One Contracts there is no charge. For all other Contracts, the charge is $40. The charge is incurred at the beginning of the Contract processing period and deducted at the end of the Contract processing period. This charge had been waived for certain offerings of the Contracts. For certain Contracts, a minimum death benefit guarantee charge of up to $1.20 per $1,000 of guaranteed death benefit per Contract year is deducted from the accumulation value of each Contract on its anniversary date. Contingent Deferred Sales Charges Under DVA 80, DVA, DVA Plus, Premium Plus, ES II, Value, Granite PrimElite, Landmark, VA, Advantage, and Rollover Choice Contracts, a contingent deferred sales charge ("Surrender Charge") is imposed as a percentage of each premium payment if the Contract is surrendered or an excess partial withdrawal is taken. The following table reflects the Surrender Charge that is assessed based upon the date a premium payment is received.
Complete Granite Years Elapsed PrimElite Opportunities, Since Premium DVA 80 & DVA Premium ES II & Payment & DVA Plus Plus Generations Value --------------- -------------- ------------- ----------- --------------- --------- 0 6% 7% 8% 8% 6% 1 5% 7% 8% 7% 6% 2 4% 6% 8% 6% 6% 3 3% 5% 8% 5% 5% 4 2% 4% 7% 4% 4% 5 1% 3% 6% 3% 3% 6 0% 1% 5% 2% 1% 7 0% 0% 3% 1% 0% 8 0% 0% 1% 0% 0% 9+ 0% 0% 0% 0% 0%
138 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Complete Years Elapsed Since Premium Signature Rollover Focus Payment Advantage Landmark & VA Choice VA --------------- ----------- ------------ ------------- ------------ --------- 0 6% 6% 7% 6% 3% 1 5% 5% 7% 6% 2% 2 4% 4% 6% 5% 1% 3 0% 3% 6% 4% 0% 4 0% 0% 5% 3% 0% 5 0% 0% 4% 2% 0% 6 0% 0% 3% 1% 0% 7 0% 0% 0% 0% 0% 8 0% 0% 0% 0% 0% 9+ 0% 0% 0% 0% 0%
Other Contract Charges Under DVA 80, DVA, and DVA Series 100 Contracts, a charge is deducted from the accumulation value for Contractowners taking more than one conventional partial withdrawal during a Contract year. For DVA 80 and DVA Contracts, annual distribution fees are deducted from the Contracts' accumulation values. Deferred Sales Load Under Contracts offered prior to October 1995, a sales load of up to 7.5% was assessed against each premium payment for sales-related expenses, as specified in the Contracts. For DVA Series 100, the sales load is deducted in equal annual installments over the period the Contract is in force, not to exceed 10 years. For DVA 80 and DVA Contracts, although the sales load is chargeable to each premium when ING USA receives it, the amount of such charge is initially advanced by ING USA to Contractowners and included in the accumulation value, and then deducted in equal installments on each Contract anniversary date over a period of six years. Upon surrender of the Contract, the unamortized deferred sales load is deducted from the accumulation value. In addition, when partial withdrawal limits are exceeded, a portion of the unamortized deferred sales load is deducted. Premium Taxes For certain Contracts, premium taxes are deducted, where applicable, from the accumulation value of each Contract. The amount and timing of the deduction depends on the Contractowner's state of residence and currently ranges up to 3.5% of premiums. 139 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Fees Waived by ING USA Certain charges and fees for various types of Contracts are currently waived by ING USA. ING USA reserves the right to discontinue these waivers at its discretion or to conform with changes in the law. 4. Related Party Transactions During the year ended December 31, 2004, management and service fees were paid indirectly to Directed Services, Inc., an affiliate of the Company, in its capacity as investment manager to the ING Investors Trust. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.49% to 1.60% of the average net assets of each respective Series. In addition, management and service fees were paid to ING Investments, LLC, in its capacity as investment adviser to the ING GET Fund, the ING Variable Insurance Trust, ING VP Intermediate Bond Portfolio, ING Variable Portfolios, Inc., and the ING Variable Products Trust. The Trusts' advisory agreement provided for fees at annual rates ranging from 0.35% to 1.00% of the average net assets of each respective Portfolio. Management and service fees were paid to ING Life Insurance and Annuity Company, an affiliate of the Company, in its capacity as investment adviser to ING Partners, Inc. The Trust's advisory agreement provided for a fee at annual rates ranging from 0.50% to 1.00% of the average net assets of each respective Portfolio. 140 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- 5. Purchases and Sales of Investment Securities The aggregate cost of purchases and proceeds from sales of investments follows:
Year ended December 31 2004 2003 -------------------------- -------------------------- Purchases Sales Purchases Sales ---------- ---------- ---------- ---------- (Dollars in thousands) ING GET Fund: ING GET Fund - Series N $ 962 $ 6,278 $ 719 $ 6,446 ING GET Fund - Series P 3,588 26,632 3,277 37,406 ING GET Fund - Series Q 4,214 26,177 143 45,984 ING GET Fund - Series R 4,151 24,850 729 45,720 ING GET Fund - Series S 6,065 31,503 209 68,817 ING GET Fund - Series T 6,808 30,473 841 87,461 ING GET Fund - Series U 10,038 31,147 260,067 108,937 ING GET Fund - Series V 2,832 101,568 385,428 53,056 ING Investors Trust: ING AIM Mid-Cap Growth (Service Class) 31,365 41,164 146,376 126,554 ING AIM Mid-Cap Growth (Advisor Class) 3,361 492 2,750 70 ING Alliance Mid-Cap Growth (Service Class) 82,581 109,808 202,510 156,537 ING Alliance Mid-Cap Growth (Advisor Class) 7,240 817 3,912 213 ING American Funds Growth 659,514 10,026 126,082 -- ING American Funds Growth-Income 520,373 4,354 94,431 -- ING American Funds International 244,406 8,920 43,141 519 ING Capital Guardian Large Cap Value (Service Class) 92,411 56,801 158,785 20,113 ING Capital Guardian Large Cap Value (Advisor Class) 3,296 851 5,891 565 ING Capital Guardian Managed Global (Service Class) 45,149 50,471 77,858 35,871 ING Capital Guardian Managed Global (Advisor Class) 2,527 246 1,883 133 ING Capital Guardian Small Cap (Service Class) 44,179 76,946 198,157 143,109 ING Capital Guardian Small Cap (Advisor Class) 3,649 439 3,260 8 ING Developing World (Service Class) 66,413 43,236 67,328 47,207 ING Developing World (Advisor Class) 4,573 320 1,546 20 ING Eagle Asset Capital Appreciation (Service Class) 17,435 34,037 34,721 36,843 ING Eagle Asset Capital Appreciation (Advisor Class) 875 208 872 116 ING Evergreen Health Sciences (Advisor Class) 2,682 111 -- -- ING Evergreen Health Sciences (Service Class) 50,071 21,606 -- -- ING Evergreen Omega (Advisor Class) 300 1 -- -- ING Evergreen Omega (Service Class) 3,168 272 -- -- ING FMR Diversified Mid-Cap (Service Class) 62,538 17,693 41,284 4,975 ING FMR Diversified Mid-Cap (Advisor Class) 4,708 233 3,042 130 ING Goldman Sachs Tollkeeper (Service Class) 19,913 11,846 37,453 6,338 ING Goldman Sachs Tollkeeper (Advisor Class) 2,077 766 2,452 210 ING Hard Assets (Service Class) 83,597 44,212 98,184 66,246
141 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 -------------------------- -------------------------- Purchases Sales Purchases Sales ---------- ---------- ---------- ---------- (Dollars in thousands) ING Investors Trust (continued): ING Hard Assets (Advisor Class) $ 6,776 $ 242 $ 2,370 $ 93 ING International (Service Class) 56,127 64,177 288,321 282,883 ING International (Advisor Class) 3,225 256 3,936 28 ING Janus Special Equity (Service Class) 17,336 14,621 22,316 3,948 ING Janus Special Equity (Advisor Class) 1,274 193 658 39 ING Jennison Equity Opportunities (Service Class) 8,066 61,667 59,176 85,768 ING Jennison Equity Opportunities (Advisor Class) 1,514 180 1,388 51 ING JPMorgan Small Cap Equity (Service Class) 85,844 17,405 46,793 1,220 ING JPMorgan Small Cap Equity (Advisor Class) 16,622 460 9,013 77 ING Julius Baer Foreign (Service Class) 138,465 11,282 41,204 15,658 ING Julius Baer Foreign (Advisor Class) 13,068 231 2,121 60 ING Legg Mason Value (Service Class) 50,522 20,461 63,371 6,551 ING Legg Mason Value (Advisor Class) 6,512 1,342 6,371 709 ING LifeStyle Aggressive Growth 194,009 680 -- -- ING LifeStyle Growth 435,349 -- -- -- ING LifeStyle Moderate Growth 427,733 6,546 -- -- ING LifeStyle Moderate 206,168 6,991 -- -- ING Limited Maturity Bond 30,745 192,741 135,215 170,287 ING Liquid Assets (Service Class) 984,305 1,111,723 1,736,952 2,014,414 ING Liquid Assets (Advisor Class) 27,799 23,139 12,886 9,848 ING Marsico Growth (Service Class) 20,227 75,368 151,832 112,858 ING Marsico Growth (Advisor Class) 5,783 608 7,334 88 ING Mercury Focus Value (Service Class) 21,036 8,111 18,337 1,751 ING Mercury Focus Value (Advisor Class) 1,643 134 692 37 ING Mercury Large Cap Growth (Service Class) 10,760 5,836 9,541 725 ING Mercury Large Cap Growth (Advisor Class) 1,423 146 660 42 ING MFS(R) Mid-Cap Growth (Service Class) 41,863 102,569 238,851 211,017 ING MFS(R) Mid-Cap Growth (Advisor Class) 6,585 1,080 8,015 205 ING MFS(R) Total Return (Service Class) 101,744 70,679 222,700 81,903 ING MFS(R) Total Return (Advisor Class) 17,278 764 14,146 242 ING Oppenheimer Main Street (Service Class) 13,744 74,953 113,001 136,752 ING Oppenheimer Main Street (Advisor Class) 1,038 418 1,498 134 ING PIMCO Core Bond (Service Class) 147,978 90,022 213,083 139,250 ING PIMCO Core Bond (Advisor Class) 14,025 2,969 17,218 1,791 ING PIMCO High Yield 733,793 108,155 -- -- ING Salomon Brothers All Cap (Service Class) 45,368 69,166 106,924 38,799 ING Salomon Brothers All Cap (Advisor Class) 7,898 91 5,067 28 ING Salomon Brothers Investors (Service Class) 16,157 19,144 25,471 11,089 ING Salomon Brothers Investors (Advisor Class) 996 228 556 17
142 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 -------------------------- -------------------------- Purchases Sales Purchases Sales ---------- ---------- ---------- ---------- (Dollars in thousands) ING Investors Trust (continued): ING T. Rowe Price Capital Appreciation (Service Class) $ 319,234 $ 40,567 $ 219,954 $ 41,604 ING T. Rowe Price Capital Appreciation (Advisor Class) 30,021 381 17,090 462 ING T. Rowe Price Equity Income (Service Class) 203,104 33,530 148,931 28,175 ING T. Rowe Price Equity Income (Advisor Class) 11,069 1,066 9,266 595 ING UBS U.S. Balanced (Service Class) 27,487 3,010 18,600 6,006 ING UBS U.S. Balanced (Advisor Class) 2,099 96 918 6 ING Van Kampen Equity Growth (Service Class) 10,597 2,597 22,819 517 ING Van Kampen Equity Growth (Advisor Class) 4,135 832 4,889 42 ING Van Kampen Global Franchise (Service Class) 57,565 9,799 41,286 7,742 ING Van Kampen Global Franchise (Advisor Class) 21,996 360 11,725 255 ING Van Kampen Growth and Income (Service Class) 39,273 61,072 63,901 61,838 ING Van Kampen Growth and Income (Advisor Class) 25,311 1,302 20,621 1,062 ING Van Kampen Real Estate (Service Class) 150,109 51,096 110,208 43,180 ING Van Kampen Real Estate (Advisor Class) 8,370 428 5,076 25 ING Partners, Inc.: ING American Century Select 150 10 80 1 ING American Century Small Cap Value 241 50 136 1 ING Baron Small Cap Growth 1,304 1,178 937 2 ING JPMorgan International 83,006 34,320 11,322 4,006 ING JPMorgan Mid Cap Value 14,241 1,328 5,429 70 ING MFS(R) Capital Opportunities (Initial Class) 1,357 854 1,674 378 ING MFS(R) Capital Opportunities (Service Class) 66 58 267 2 ING OpCap Balanced Value 731 179 229 2 ING Oppenheimer Global Portfolio 2,126 973 1,477 140 ING PIMCO Total Return 1,188 1,058 1,557 214 ING Salomon Brothers Aggressive Growth 101,833 9,962 16,007 2,873 ING Salomon Brothers Fundamental Value 300 143 518 3 ING Salomon Brothers Investors Value 353 109 317 3 ING T. Rowe Price Diversified Mid Cap Growth 202 253 591 105 ING T. Rowe Price Growth Equity 810 380 1,860 28 ING UBS U.S. Large Cap Equity 684 164 84 -- ING Van Kampen Comstock 54,500 392 33,171 1,711 ING Van Kampen Equity and Income 166 18 81 3
143 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 -------------------------- -------------------------- Purchases Sales Purchases Sales ---------- ---------- ---------- ---------- (Dollars in thousands) ING Variable Insurance Trust: ING GET U.S. Core Portfolio - Series 1 $ 1,924 $ 56,798 $ 238,806 $ 25,679 ING GET U.S. Core Portfolio - Series 2 661 59,703 166,567 464 ING GET U.S. Core Portfolio - Series 3 164,807 35,928 8,964 1 ING GET U.S. Core Portfolio - Series 4 84,641 12,329 -- -- ING GET U.S. Core Portfolio - Series 5 53,643 13,274 -- -- ING GET U.S. Core Portfolio - Series 6 60,257 492 -- -- ING GET U.S. Core Portfolio - Series 7 1,382 114 -- -- ING VIT Worldwide Growth 10,619 9,091 19,828 6,849 ING Variable Portfolios, Inc.: ING VP Balanced 2,073 379 1,197 42 ING VP Growth 59 17 261 56 ING VP Index Plus LargeCap 69,686 10,584 62,351 13,117 ING VP Index Plus MidCap 53,314 2,100 16,264 5,177 ING VP Index Plus SmallCap 50,623 6,334 13,623 3,693 ING VP Intermediate Bond 170,626 27,050 89,990 70,653 ING VP International Equity 420 386 183 7 ING VP Small Company 519 268 653 92 ING VP Value Opportunity 1,564 628 1,009 169 ING Variable Products Trust: ING VP Convertible 5,343 826 3,324 879 ING VP Financial Services 22,095 8,969 -- -- ING VP Growth and Income 426 461 1,606 71 ING VP Growth Opportunities 4,439 31,659 13,123 1,710 ING VP International Value 1,007 451 576 171 ING VP LargeCap Growth 76 309 1,248 768 ING VP MagnaCap 5,037 4,968 12,289 2,104 ING VP MidCap Opportunities 36,964 7,246 223 1 ING VP SmallCap Opportunities 19,063 14,965 46,178 4,073 AIM Variable Insurance Funds: AIM V.I. Capital Appreciation -- 11 66 24 AIM V.I. Core Equity 17 42 105 1 AIM V.I. Dent Demographic Trends 24,782 20,144 42,067 4,254 AIM V.I. Financial Services 19,553 27,143 58,467 31,710 AIM V.I. Growth 1,403 424 1,911 427 AIM V.I. Health Sciences 34,035 34,514 81,144 38,138 AIM V.I. Leisure 20,612 5,142 24,801 1,312 AIM V.I. Premier Equity 19 42 88 17 AIM V.I. Utilities 58,506 18,721 19,832 3,235
144 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 -------------------------- -------------------------- Purchases Sales Purchases Sales ---------- ---------- ---------- ---------- (Dollars in thousands) AllianceBernstein Variable Products Series Fund, Inc.: AllianceBernstein Growth and Income $ 6,480 $ 2,462 $ 5,730 $ 902 AllianceBernstein Premier Growth 1,552 591 2,862 2,017 AllianceBernstein Value 3,959 1,147 3,623 943 Fidelity Variable Insurance Products Fund: Fidelity(R) VIP Equity-Income 99,758 19,295 118,197 17,735 Fidelity(R) VIP Growth 79,611 31,124 188,912 51,570 Fidelity(R) VIP Contrafund(R) 21,253 945 14,431 521 Fidelity(R) VIP Overseas 2,374 2,803 7,214 6,453 Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 718 80 180 3 Goldman Sachs Asset Management, L.P.: ING Goldman Sachs(R) Capital Growth 8 -- -- -- Greenwich Street Series Fund: Greenwich Appreciation 29 112 34 86 Janus Aspen Series: Janus Aspen Series Balanced 572 992 3,875 252 Janus Aspen Series Flexible Income 622 672 2,046 473 Janus Aspen Series Growth 87 360 742 84 Janus Aspen Series Worldwide Growth 1,344 2,022 19,777 17,513 Liberty Variable Insurance Trust: Colonial Small Cap Value 176,508 3,208 38,705 642 Liberty Variable Series: Liberty Asset Allocation 14 56 575 84 Liberty Equity 5 75 98 74 Liberty Federal Securities 24 19 124 40 Liberty Small Company Growth 38 38 62 17 Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities 4,520 869 2,204 27 Oppenheimer Strategic Bond 1,482 745 968 317 PIMCO Variable Insurance Trust: PIMCO High Yield 74,851 671,104 412,507 166,432 PIMCO StocksPLUS Growth and Income 2,943 37,022 27,584 64,388 Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 738 250 718 13 Pioneer Fund VCT 27,319 13,804 39,976 6,474 Pioneer Mid-Cap Value VCT 237,923 13,055 104,888 2,103 Pioneer Small Company VCT 2,425 1,757 2,653 706
145 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 -------------------------- -------------------------- Purchases Sales Purchases Sales ---------- ---------- ---------- ---------- (Dollars in thousands) ProFunds VP: ProFund VP Bull $ 284,834 $ 270,174 $ 255,458 $ 213,494 ProFund VP Europe 30 103,358 102,359 145,136 133,466 ProFund VP Rising Rates Opportunity 108,121 70,102 32,296 8,593 ProFund VP Small Cap 325,266 317,292 317,059 247,916 Prudential Series Fund, Inc.: Jennison 12,409 9,611 19,753 11,282 SP William Blair International Growth 63,882 38,037 74,583 33,468 Putnam Variable Trust: Putnam VT Discovery Growth 248 590 1,239 364 Putnam VT Growth and Income 577 707 1,626 641 Putnam VT International Growth and Income 897 2,244 1,554 1,314 Travelers Series Fund Inc.: Smith Barney High Income 22 71 25 89 Smith Barney International All Cap Growth 7 46 10 36 Smith Barney Large Cap Value 21 39 32 82 Smith Barney Money Market 9 22 34 127 UBS Series Trust: UBS U.S. Allocation Portfolio 1,684 948 2,728 335 Wells Fargo Variable Trust: Wells Fargo VT Asset Allocation 2,023 255 25 -- Wells Fargo VT Equity Income 836 20 11 -- Wells Fargo VT Equity Value 214 16 -- -- Wells Fargo VT Large Company Growth 2,203 75 33 -- Wells Fargo VT Money Market 2,779 2,410 Wells Fargo VT Small Cap Growth 515 9 7 -- Wells Fargo VT Total Return Bond 504 14 -- --
146 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- 6. Changes in Units The changes in units outstanding for the years ended December 31, 2004 and 2003 are shown in the following table. The activity includes Contractowners electing to update a DVA 100 or DVA Series 100 Contract to a DVA Contract. Updates to DVA Contracts resulted in both a redemption (surrender of the old Contract) and an issue (acquisition of the new Contract).
Year ended December 31 2004 2003 ------------------------------------ -------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ---------- ----------- ------------ ----------- ----------- ------------ ING GET Fund: ING GET Fund - Series N 64,321 613,209 (548,888) 2,813 582,838 (580,025) ING GET Fund - Series P 206,415 2,637,868 (2,431,453) 427,496 3,875,525 (3,448,029) ING GET Fund - Series Q 391,384 2,691,943 (2,300,559) 540,093 4,702,920 (4,162,827) ING GET Fund - Series R 122,580 2,229,403 (2,106,823) 662,537 4,700,603 (4,038,066) ING GET Fund - Series S 300,318 3,029,233 (2,728,915) 778,306 7,069,347 (6,291,041) ING GET Fund - Series T 131,731 2,717,087 (2,585,356) 1,110,001 9,134,206 (8,024,205) ING GET Fund - Series U 480,341 3,067,510 (2,587,169) 27,424,655 11,466,254 15,958,401 ING GET Fund - Series V 577,285 10,404,006 (9,826,721) 39,493,072 5,925,624 33,567,448 ING Investors Trust: ING AIM Mid-Cap Growth (Service Class) 6,367,568 6,878,476 (510,908) 20,239,308 18,505,860 1,733,448 ING AIM Mid-Cap Growth (Advisor Class) 301,808 69,494 232,314 244,294 17,832 226,462 ING Alliance Mid-Cap Growth (Service Class) 13,060,531 14,440,337 (1,379,806) 30,683,632 27,132,870 3,550,762 ING Alliance Mid-Cap Growth (Advisor Class) 544,617 134,006 410,611 289,350 33,689 255,661 ING American Funds Growth 75,588,327 15,707,624 59,880,703 13,769,489 1,471,401 12,298,088 ING American Funds Growth-Income 56,799,845 10,075,723 46,724,122 10,140,145 1,034,017 9,106,128 ING American Funds International 26,252,480 6,740,245 19,512,235 4,737,237 831,014 3,906,223 ING Capital Guardian Large Cap Value (Service Class) 22,692,356 18,431,317 4,261,039 31,963,365 15,626,833 16,336,532 ING Capital Guardian Large Cap Value (Advisor Class) 288,524 91,322 197,202 626,639 164,468 462,171 ING Capital Guardian Managed Global (Service Class) 6,322,929 6,348,593 (25,664) 9,589,344 6,596,769 2,992,575 ING Capital Guardian Managed Global (Advisor Class) 211,856 36,460 175,396 160,376 13,074 147,302
147 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 ------------------------------------ -------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ---------- ---------- ------------ ----------- ----------- ------------ ING Investors Trust (continued): ING Capital Guardian Small Cap (Service Class) 9,459,624 11,003,388 (1,543,764) 23,836,823 20,086,014 3,750,809 ING Capital Guardian Small Cap (Advisor Class) 343,922 71,576 272,346 288,617 11,915 276,702 ING Developing World (Service Class) 12,456,786 9,987,288 2,469,498 13,707,508 11,144,731 2,562,777 ING Developing World (Advisor Class) 395,322 68,567 326,755 141,785 9,786 131,999 ING Eagle Asset Capital Appreciation (Service Class) 2,786,084 3,577,865 (791,781) 5,456,564 5,513,235 (56,671) ING Eagle Asset Capital Appreciation (Advisor Class) 74,900 18,648 56,252 91,756 16,399 75,357 ING Evergreen Health Sciences (Advisor Class) 579,944 303,171 276,773 -- -- -- ING Evergreen Health Sciences (Service Class) 6,228,198 3,256,326 2,971,872 -- -- -- ING Evergreen Omega (Advisor Class) 37,746 7,391 30,355 -- -- -- ING Evergreen Omega (Service Class) 360,779 70,644 290,135 -- -- -- ING FMR Diversified Mid-Cap (Service Class) 10,437,113 5,910,228 4,526,885 9,117,415 4,385,125 4,732,290 ING FMR Diversified Mid-Cap (Advisor Class) 410,416 47,280 363,136 312,293 32,870 279,423 ING Goldman Sachs Tollkeeper (Service Class) 6,188,180 4,839,831 1,348,349 9,293,284 3,690,700 5,602,584 ING Goldman Sachs Tollkeeper (Advisor Class) 180,026 77,669 102,357 202,253 27,084 175,169 ING Hard Assets (Service Class) 8,858,384 6,870,066 1,988,318 9,957,046 8,031,960 1,925,086 ING Hard Assets (Advisor Class) 554,121 72,967 481,154 214,555 17,599 196,956 ING International (Service Class) 11,054,022 11,852,585 (798,563) 45,122,881 44,094,402 1,028,479 ING International (Advisor Class) 309,609 64,971 244,638 392,995 17,995 375,000 ING Janus Special Equity (Service Class) 3,756,173 3,411,660 344,513 4,712,526 2,282,039 2,430,487 ING Janus Special Equity (Advisor Class) 99,416 20,158 79,258 54,493 3,864 50,629 ING Jennison Equity Opportunities (Service Class) 2,320,241 4,888,803 (2,568,562) 7,487,170 8,997,369 (1,510,199) ING Jennison Equity Opportunities (Advisor Class) 136,480 25,675 110,805 134,102 6,870 127,232 ING JPMorgan Small Cap Equity (Service Class) 11,358,419 5,293,354 6,065,065 6,441,180 1,314,781 5,126,399 ING JPMorgan Small Cap Equity (Advisor Class) 1,530,599 236,392 1,294,207 886,242 51,332 834,910 ING Julius Baer Foreign (Service Class) 17,924,576 6,065,652 11,858,924 5,465,920 2,801,803 2,664,117
148 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 ------------------------------------ -------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ---------- ----------- ------------ ----------- ----------- ------------ ING Investors Trust (continued): ING Julius Baer Foreign (Advisor Class) 1,127,353 85,637 1,041,716 208,049 21,627 186,422 ING Legg Mason Value (Service Class) 12,506,118 8,611,957 3,894,161 15,080,009 7,058,656 8,021,353 ING Legg Mason Value (Advisor Class) 688,527 218,299 470,228 676,501 120,816 555,685 ING LifeStyle Aggressive Growth 21,033,612 1,931,339 19,102,273 -- -- -- ING LifeStyle Growth 47,731,376 4,965,325 42,766,051 -- -- -- ING LifeStyle Moderate Growth 47,027,641 5,538,710 41,488,931 -- -- -- ING LifeStyle Moderate 23,846,235 4,237,375 19,608,860 -- -- -- ING Limited Maturity Bond 3,951,500 12,903,915 (8,952,415) 22,024,027 23,493,026 (1,468,999) ING Liquid Assets (Service Class) 216,515,479 224,353,188 (7,837,709) 263,960,840 281,659,270 (17,698,430) ING Liquid Assets (Advisor Class) 4,879,503 4,398,971 480,532 1,605,225 1,295,814 309,411 ING Marsico Growth (Service Class) 12,587,344 15,715,894 (3,128,550) 27,316,330 23,711,846 3,604,484 ING Marsico Growth (Advisor Class) 545,585 111,337 434,248 692,233 47,674 644,559 ING Mercury Focus Value (Service Class) 2,512,205 1,475,004 1,037,201 2,390,740 669,562 1,721,178 ING Mercury Focus Value (Advisor Class) 125,017 16,039 108,978 62,575 5,799 56,776 ING Mercury Large Cap Growth (Service Class) 1,178,993 813,285 365,708 1,342,793 314,981 1,027,812 ING Mercury Large Cap Growth (Advisor Class) 112,331 14,577 97,754 68,767 7,459 61,308 ING MFS(R) Mid-Cap Growth (Service Class) 7,269,565 9,553,963 (2,284,398) 25,134,567 23,309,608 1,824,959 ING MFS(R) Mid-Cap Growth (Advisor Class) 615,076 166,789 448,287 730,445 64,597 665,848 ING MFS(R) Total Return (Service Class) 15,117,511 13,582,514 1,534,997 24,648,572 17,000,181 7,648,391 ING MFS(R) Total Return (Advisor Class) 1,686,186 260,363 1,425,823 1,428,064 107,319 1,320,745 ING Oppenheimer Main Street (Service Class) 3,398,796 6,443,036 (3,044,240) 13,516,901 14,641,938 (1,125,037) ING Oppenheimer Main Street (Advisor Class) 97,762 43,594 54,168 151,542 20,594 130,948 ING PIMCO Core Bond (Service Class) 26,660,244 22,711,549 3,948,695 41,045,236 35,097,502 5,947,734 ING PIMCO Core Bond (Advisor Class) 1,674,344 660,365 1,013,979 2,063,501 587,700 1,475,801 ING PIMCO High Yield 85,351,103 24,705,684 60,645,419 -- -- --
149 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 ----------------------------------- -------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ---------- ----------- ----------- ---------- ----------- ------------ ING Investors Trust (continued): ING Salomon Brothers All Cap (Service Class) 11,637,087 13,216,432 (1,579,345) 21,857,383 14,656,980 7,200,403 ING Salomon Brothers All Cap (Advisor Class) 740,039 97,133 642,906 477,684 24,492 453,192 ING Salomon Brothers Investors (Service Class) 3,755,224 3,916,972 (161,748) 5,618,795 3,949,522 1,669,273 ING Salomon Brothers Investors (Advisor Class) 95,637 32,657 62,980 55,667 5,391 50,276 ING T. Rowe Price Capital Appreciation (Service Class) 2,706,534 324,111 2,382,423 18,480,713 11,934,957 6,545,756 ING T. Rowe Price Capital Appreciation (Advisor Class) 19,311,344 11,231,852 8,079,492 1,667,923 111,132 1,556,791 ING T. Rowe Price Equity Income (Service Class) 16,345,689 9,114,667 7,231,022 13,716,461 7,870,709 5,845,752 ING T. Rowe Price Equity Income (Advisor Class) 1,066,058 234,653 831,405 946,179 115,013 831,166 ING UBS U.S. Balanced (Service Class) 5,674,595 2,707,870 2,966,725 3,555,272 1,900,413 1,654,859 ING UBS U.S. Balanced (Advisor Class) 198,541 15,839 182,702 85,480 597 84,883 ING Van Kampen Equity Growth (Service Class) 1,729,498 845,176 884,322 3,278,306 691,267 2,587,039 ING Van Kampen Equity Growth (Advisor Class) 439,989 136,842 303,147 481,686 23,976 457,710 ING Van Kampen Global Franchise (Service Class) 7,748,385 3,378,092 4,370,293 6,033,511 2,399,718 3,633,793 ING Van Kampen Global Franchise (Advisor Class) 2,168,072 282,709 1,885,363 1,292,472 134,695 1,157,777 ING Van Kampen Growth and Income (Service Class) 6,481,973 7,172,507 (690,534) 9,697,228 9,299,298 397,930 ING Van Kampen Growth and Income (Advisor Class) 2,389,262 386,619 2,002,643 2,180,618 321,267 1,859,351 ING Van Kampen Real Estate (Service Class) 7,329,250 4,869,555 2,459,695 7,319,516 5,201,384 2,118,132 ING Van Kampen Real Estate (Advisor Class) 685,644 124,055 561,589 505,929 53,365 452,564 ING Partners, Inc.: ING American Century Select 15,857 1,079 14,778 12,186 2,782 9,404 ING American Century Small Cap Value 20,365 6,495 13,870 14,721 287 14,434 ING Baron Small Cap Growth 122,116 112,110 10,006 90,459 1,243 89,216 ING JPMorgan International 8,455,184 4,513,734 3,941,450 1,355,419 677,674 677,745 ING JPMorgan Mid Cap Value 1,381,958 333,892 1,048,066 527,569 33,903 493,666 ING MFS(R) Capital Opportunities (Initial Class) 202,727 137,202 65,525 275,325 95,137 180,188
150 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 -------------------------------------- ------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ---------- --------- ------------ --------- --------- ------------ ING Partners, Inc. (continued): ING MFS(R) Capital Opportunities (Service Class) 5,806 6,275 (469) 32,298 15 32,283 ING OpCap Balanced Value 83,481 35,307 48,174 23,882 68 23,814 ING Oppenheimer Global Portfolio 207,068 103,498 103,570 160,424 22,562 137,862 ING PIMCO Total Return 128,481 113,217 15,264 158,515 37,896 120,619 ING Salomon Brothers Aggressive Growth 12,566,803 4,119,061 8,447,742 1,900,446 615,504 1,284,942 ING Salomon Brothers Fundamental Value 41,331 28,946 12,385 62,039 7,006 55,033 ING Salomon Brothers Investors Value 35,106 14,339 20,767 37,838 2,273 35,565 ING T. Rowe Price Diversified Mid Cap Growth 17,410 24,171 (6,761) 65,235 12,689 52,546 ING T. Rowe Price Growth Equity 91,968 53,555 38,413 227,525 17,367 210,158 ING UBS U.S. Large Cap Equity 74,372 24,008 50,364 10,430 37 10,393 ING Van Kampen Comstock 5,849,429 856,698 4,992,731 4,136,428 795,326 3,341,102 ING Van Kampen Equity and Income 15,430 1,653 13,777 10,498 1,710 8,788 ING Variable Insurance Trust: ING GET U.S. Core Portfolio - Series 1 786,470 5,870,005 (5,083,535) 24,292,343 2,721,588 21,570,755 ING GET U.S. Core Portfolio - Series 2 284,401 5,831,059 (5,546,658) 16,910,671 218,793 16,691,878 ING GET U.S. Core Portfolio - Series 3 17,473,102 4,327,611 13,145,491 915,632 18,683 896,949 ING GET U.S. Core Portfolio - Series 4 8,890,302 1,510,553 7,379,749 -- -- -- ING GET U.S. Core Portfolio - Series 5 9,976,793 5,856,100 4,120,693 -- -- -- ING GET U.S. Core Portfolio - Series 6 6,067,558 75,852 5,991,706 -- -- -- ING GET U.S. Core Portfolio - Series 7 149,001 22,160 126,841 -- -- -- ING VP Worldwide Growth 2,944,895 2,672,560 272,335 5,334,548 2,955,189 2,379,359 ING Variable Portfolios, Inc.: ING VP Balanced 195,990 46,898 149,092 116,275 6,785 109,490 ING VP Growth 5,702 2,129 3,573 39,910 14,404 25,506 ING VP Index Plus LargeCap 11,303,638 4,802,284 6,501,354 9,215,533 3,211,932 6,003,601
151 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 ---------------------------------------------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ---------- ----------- ------------ ----------- ----------- ------------ ING Variable Portfolios, Inc. (continued): ING VP Index Plus MidCap 6,090,329 1,341,734 4,748,595 2,015,920 923,833 1,092,087 ING VP Index Plus SmallCap 5,631,848 1,665,934 3,965,914 1,534,395 579,748 954,647 ING VP Intermediate Bond 22,505,906 11,088,382 11,417,524 15,174,268 13,388,596 1,785,672 ING VP International Equity 37,775 34,058 3,717 20,184 2,092 18,092 ING VP Small Company 49,441 29,684 19,757 74,835 13,928 60,907 ING VP Value Opportunity 209,354 103,472 105,882 159,786 42,748 117,038 ING Variable Products Trust: ING VP Convertible 536,900 176,656 360,244 330,356 111,896 218,460 ING VP Financial Services 2,485,809 1,198,601 1,287,208 -- -- -- ING VP Growth and Income 66,391 70,531 (4,140) 161,032 18,186 142,846 ING VP Growth Opportunities 926,830 4,748,989 (3,822,159) 3,154,558 1,227,767 1,926,791 ING VP International Value 87,388 41,378 46,010 61,584 18,501 43,083 ING VP LargeCap Growth 4,910 36,841 (31,931) 198,724 122,054 76,670 ING VP MagnaCap 923,075 920,327 2,748 2,070,135 782,965 1,287,170 ING VP MidCap Opportunities 5,874,890 1,621,167 4,253,723 26,831 8 26,823 ING VP SmallCap Opportunities 6,848,247 5,962,973 885,274 12,410,160 4,513,193 7,896,967 AIM Variable Insurance Funds: AIM V.I. Capital Appreciation 49 1,192 (1,143) 7,484 3,211 4,273 AIM V.I. Core Equity 5,713 8,102 (2,389) 12,098 8 12,090 AIM V.I. Dent Demographic Trends 4,474,151 3,960,367 513,784 6,647,819 2,292,483 4,355,336 AIM V.I. Financial Services 3,109,211 3,875,618 (766,407) 9,715,318 6,670,182 3,045,136 AIM V.I. Growth 212,236 104,369 107,867 274,535 93,371 181,164 AIM V.I. Health Sciences 5,627,623 5,593,668 33,955 15,231,350 10,188,192 5,043,158 AIM V.I. Leisure 2,980,300 1,498,741 1,481,559 3,256,460 748,922 2,507,538
152 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 ------------------------------------ -------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) ---------- ----------- ------------ ----------- ----------- ------------ AIM Variable Insurance Funds (continued): AIM V.I. Premier Equity 5,313 7,862 (2,549) 10,766 3,838 6,928 AIM V.I. Utilities 10,376,171 5,350,940 5,025,231 4,192,548 1,736,129 2,456,419 AllianceBernstein Variable Products Series Fund, Inc.: AllianceBernstein Growth and Income 901,268 489,768 411,500 812,719 251,537 561,182 AllianceBernstein Premier Growth 238,144 115,265 122,879 460,022 333,463 126,559 AllianceBernstein Value 449,557 190,480 259,077 472,742 183,509 289,233 Fidelity Variable Insurance Products Fund: Fidelity(R) VIP Equity-Income 15,974,411 8,088,620 7,885,791 18,102,244 6,614,886 11,487,358 Fidelity(R) VIP Growth 17,702,973 11,537,580 6,165,393 38,300,438 19,520,348 18,780,090 Fidelity(R) VIP Contrafund(R) 2,424,237 592,522 1,831,715 1,779,394 347,498 1,431,896 Fidelity(R) VIP Overseas 429,979 465,748 (35,769) 613,141 545,358 67,783 Franklin Templeton Variable Insurance Products Trust: Franklin Small Cap Value Securities 59,719 10,625 49,094 18,497 377 18,120 Goldman Sachs Asset Management, L.P.: ING Goldman Sachs(R) Capital Growth 715 -- 715 -- -- -- Greenwich Street Series Fund: Greenwich Appreciation 1,423 6,059 (4,636) 2,140 5,725 (3,585) Janus Aspen Series: Janus Aspen Series Balanced 64,028 110,191 (46,163) 421,393 47,868 373,525 Janus Aspen Series Flexible Income 65,161 76,872 (11,711) 181,934 42,626 139,308 Janus Aspen Series Growth 9,439 37,825 (28,386) 92,866 16,222 76,644 Janus Aspen Series Worldwide Growth 195,914 292,022 (96,108) 3,066,592 2,725,678 340,914 Liberty Variable Insurance Trust: Colonial Small Cap Value 15,593,700 4,114,890 11,478,810 3,666,414 699,990 2,966,424
153 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 ------------------------------------ -------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) --------- ----------- ------------ ----------- ----------- ------------ Liberty Variable Series: Liberty Asset Allocation 1,591 5,473 (3,882) 58,374 8,193 50,181 Liberty Equity 1,173 9,294 (8,121) 17,945 11,418 6,527 Liberty Federal Securities 3,053 2,920 133 12,474 3,869 8,605 Liberty Small Company Growth 2,769 2,815 (46) 6,299 1,313 4,986 Oppenheimer Variable Accounts Fund: Oppenheimer Global Securities 408,821 110,335 298,486 243,106 13,364 229,742 Oppenheimer Strategic Bond 141,292 78,096 63,196 88,167 29,331 58,836 PIMCO Variable Insurance Trust: PIMCO High Yield 15,271,772 67,096,288 (51,824,516) 70,549,933 50,078,253 20,471,680 PIMCO StocksPLUS Growth and Income 600,739 3,897,527 (3,296,788) 8,167,955 12,300,696 (4,132,741) Pioneer Variable Contracts Trust: Pioneer Equity-Income VCT 73,687 33,357 40,330 91,561 14,035 77,526 Pioneer Fund VCT 5,213,322 3,657,765 1,555,557 6,575,983 2,345,851 4,230,132 Pioneer Mid-Cap Value VCT 26,376,159 9,240,635 17,135,524 12,983,227 3,520,104 9,463,123 Pioneer Small Company VCT 354,116 275,573 78,543 380,789 153,965 226,824 ProFunds VP: ProFund VP Bull 55,424,308 53,765,800 1,658,508 45,236,028 39,510,148 5,725,880 ProFund VP Europe 30 17,062,474 17,028,038 34,436 27,515,639 26,105,711 1,409,928 ProFund VP Rising Rates Opportunity 18,522,111 14,587,034 3,935,077 3,678,414 1,221,881 2,456,533 ProFund VP Small Cap 46,946,165 46,811,229 134,936 51,869,933 44,621,619 7,248,314 Prudential Series Fund, Inc.: Jennison 4,080,907 3,398,226 682,681 7,101,405 5,126,319 1,975,086 SP William Blair International Growth 18,244,333 13,546,580 4,697,753 20,418,826 11,908,116 8,510,710
154 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Year ended December 31 2004 2003 ------------------------------------ -------------------------------------- Units Units Net Increase Units Units Net Increase Issued Redeemed (Decrease) Issued Redeemed (Decrease) --------- ----------- ------------ ----------- ----------- ------------ Putnam Variable Trust: Putnam VT Discovery Growth 43,907 83,771 (39,864) 210,296 78,555 131,741 Putnam VT Growth and Income 94,075 108,126 (14,051) 245,886 127,759 118,127 Putnam VT International Growth and Income 101,451 217,479 (116,028) 218,826 196,346 22,480 Travelers Series Fund Inc.: Smith Barney High Income 45 4,554 (4,509) 453 7,012 (6,559) Smith Barney International All Cap Growth 472 3,802 (3,330) 996 3,826 (2,830) Smith Barney Large Cap Value 827 1,861 (1,034) 1,738 5,226 (3,488) Smith Barney Money Market 19,938 20,966 (1,028) 20,411 27,723 (7,312) UBS Series Trust: UBS U.S. Allocation Portfolio 201,093 117,357 83,736 360,783 67,068 293,715 Wells Fargo Variable Trust: Wells Fargo VT Asset Allocation 232,512 68,839 163,673 2,338 1 2,337 Wells Fargo VT Equity Income 97,629 23,264 74,365 982 -- 982 Wells Fargo VT Equity Value 21,154 3,142 18,012 -- -- -- Wells Fargo VT Large Company Growth 239,082 24,349 214,733 3,283 -- 3,283 Wells Fargo VT Money Market 386,550 349,027 37,523 -- -- -- Wells Fargo VT Small Cap Growth 48,232 1,003 47,229 661 -- 661 Wells Fargo VT Total Return Bond 60,711 14,118 46,593 -- -- --
155 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- 1. Unit Summary Accumulation unit value information for units outstanding, by Contract type, as of December 31, 2004 follows:
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET Fund - Series N Contracts in accumulation period: Band 26 234,471.800 $ 10.40 $ 2,438,507 Band 27 135,962.606 10.29 1,399,055 Band 28 110,947.502 10.24 1,136,102 Band 29 574,739.690 10.22 5,873,840 Band 30 405,682.009 10.11 4,101,445 Band 31 271,568.075 10.06 2,731,975 --------------- --------------- 1,733,371.682 $ 17,680,924 =============== =============== ING GET Fund - Series P Contracts in accumulation period: Band 9 109,347.669 $ 10.04 $ 1,097,851 Band 13 34,748.567 9.97 346,443 Band 15 19,864.482 9.92 197,056 Band 26 900,926.105 10.26 9,243,502 Band 27 734,115.239 10.15 7,451,270 Band 28 275,571.958 10.10 2,783,277 Band 29 2,832,857.525 10.09 28,583,532 Band 30 2,339,100.477 9.98 23,344,223 Band 31 1,202,429.895 9.93 11,940,129 --------------- --------------- 8,448,961.917 $ 84,987,283 =============== =============== ING GET Fund - Series Q Contracts in accumulation period: Band 9 597,996.181 $ 10.30 $ 6,159,361 Band 13 168,369.656 10.24 1,724,105 Band 15 69,180.552 10.19 704,950 Band 26 1,182,346.190 10.51 12,426,458 Band 27 1,023,888.045 10.41 10,658,675 Band 28 320,088.233 10.36 3,316,114 Band 29 2,770,575.613 10.35 28,675,458 Band 30 2,438,662.631 10.25 24,996,292 Band 31 1,110,414.738 10.20 11,326,230 Band 32 496,149.217 10.12 5,021,030 Band 33 134,158.433 10.05 1,348,292 Band 34 77,247.191 10.01 773,244 Band 35 2,491.907 10.58 26,364 --------------- --------------- 10,391,568.587 $ 107,156,573 =============== ===============
156 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET Fund - Series R Contracts in accumulation period: Band 9 818,867.138 $ 10.54 $ 8,630,860 Band 13 156,691.268 10.48 1,642,124 Band 15 77,591.425 10.44 810,054 Band 26 1,359,306.001 10.73 14,585,353 Band 27 707,401.059 10.64 7,526,747 Band 28 330,988.748 10.60 3,508,481 Band 29 2,660,511.289 10.58 28,148,209 Band 30 2,186,742.705 10.49 22,938,931 Band 31 1,108,138.489 10.45 11,580,047 Band 32 733,779.482 10.36 7,601,955 Band 33 319,213.176 10.30 3,287,896 Band 34 289,866.380 10.26 2,974,029 Band 35 12,451.490 10.80 134,476 Band 36 4,162.909 10.74 44,710 --------------- --------------- 10,765,711.559 $ 113,413,872 =============== =============== ING GET Fund - Series S Contracts in accumulation period: Band 9 716,525.110 $ 10.45 $ 7,487,687 Band 13 435,720.214 10.40 4,531,490 Band 15 211,279.527 10.36 2,188,856 Band 26 1,614,511.794 10.63 17,162,260 Band 27 664,984.384 10.55 7,015,585 Band 28 201,659.562 10.51 2,119,442 Band 29 3,454,011.273 10.49 36,232,578 Band 30 2,283,276.347 10.41 23,768,907 Band 31 1,196,207.533 10.37 12,404,672 Band 32 1,071,756.848 10.30 11,039,096 Band 33 722,423.290 10.24 7,397,614 Band 34 255,657.176 10.20 2,607,703 Band 35 14,728.364 10.69 157,446 Band 36 4,791.599 10.63 50,935 --------------- --------------- 12,847,533.021 $ 134,164,271 =============== ===============
157 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET Fund - Series T Contracts in accumulation period: Band 6 40,068.952 $ 10.54 $ 422,327 Band 9 938,109.203 10.49 9,840,766 Band 10 9,425.795 10.48 98,782 Band 12 105,004.757 10.45 1,097,300 Band 13 342,798.248 10.44 3,578,814 Band 15 232,206.352 10.40 2,414,946 Band 20 55,430.803 10.43 578,143 Band 26 1,237,977.127 10.65 13,184,456 Band 27 705,797.759 10.57 7,460,282 Band 28 257,781.278 10.53 2,714,437 Band 29 3,311,251.697 10.52 34,834,368 Band 30 1,967,700.851 10.45 20,562,474 Band 31 1,400,365.917 10.41 14,577,809 Band 32 1,205,138.136 10.34 12,461,128 Band 33 718,508.880 10.30 7,400,641 Band 34 408,734.836 10.26 4,193,619 Band 35 95,434.570 10.70 1,021,150 Band 36 1,391.312 10.65 14,817 --------------- --------------- 13,033,126.473 $ 136,456,259 =============== =============== ING GET Fund - Series U Contracts in accumulation period: Band 6 225,424.660 $ 10.70 $ 2,412,044 Band 9 1,360,585.799 10.66 14,503,845 Band 10 6,336.534 10.65 67,484 Band 12 17,367.075 10.62 184,438 Band 13 404,842.424 10.61 4,295,378 Band 15 370,205.805 10.58 3,916,777 Band 20 177,190.760 10.60 1,878,222 Band 26 1,419,793.251 10.80 15,333,767 Band 27 536,911.094 10.73 5,761,056 Band 28 448,906.218 10.70 4,803,297 Band 29 3,092,491.343 10.69 33,058,732 Band 30 1,524,929.663 10.62 16,194,753 Band 31 996,792.464 10.59 10,556,032 Band 32 1,329,289.941 10.53 13,997,423 Band 33 811,020.616 10.48 8,499,496 Band 34 531,049.918 10.45 5,549,472 Band 35 216,829.117 10.85 2,352,596 Band 36 6,037.589 10.80 65,206 --------------- --------------- 13,476,004.271 $ 143,430,018 =============== ===============
158 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET Fund - Series V Contracts in accumulation period: Band 6 227,219.638 $ 9.77 $ 2,219,936 Band 7 5,266.200 9.76 51,398 Band 9 2,164,902.208 9.74 21,086,148 Band 10 46,499.765 9.73 452,443 Band 12 34,433.626 9.71 334,351 Band 13 521,299.630 9.70 5,056,606 Band 14 7,302.891 9.68 70,692 Band 15 683,681.596 9.67 6,611,201 Band 17 58,800.989 9.65 567,430 Band 19 7,044.137 9.62 67,765 Band 20 90,444.368 9.69 876,406 Band 26 2,883,198.087 9.85 28,399,501 Band 27 822,946.401 9.80 8,064,875 Band 28 556,069.345 9.77 5,432,798 Band 29 6,410,673.331 9.76 62,568,172 Band 30 3,333,237.115 9.71 32,365,732 Band 31 1,874,859.735 9.68 18,148,642 Band 32 2,066,464.517 9.63 19,900,053 Band 33 677,980.772 9.59 6,501,836 Band 34 745,705.858 9.57 7,136,405 Band 35 503,256.906 9.89 4,977,211 Band 36 19,438.777 9.85 191,472 --------------- --------------- 23,740,725.892 $ 231,081,073 =============== =============== ING AIM Mid Cap-Growth Portfolio - Service Class Contracts in accumulation period: Band 1 7,268.738 $ 15.77 $ 114,628 Band 2 98,225.952 15.48 1,520,538 Band 3 5,479.964 14.98 82,090 Band 4 162,274.918 15.14 2,456,842 Band 5 134,578.614 15.06 2,026,754 Band 6 2,589,000.506 14.93 38,653,778 Band 7 2,122,818.436 14.85 31,523,854 Band 8 1,530,116.174 14.73 22,538,611 Band 9 579,707.455 14.64 8,486,917 Band 10 646,997.830 14.57 9,426,758 Band 11 2,201,703.182 14.50 31,924,696 Band 12 518,089.911 14.43 7,476,037 Band 13 1,327,212.191 14.37 19,072,039 Band 14 2,226,474.652 14.23 31,682,734 Band 15 3,740.368 14.16 52,964 Band 16 32,591.790 14.03 457,263
159 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING AIM Mid-Cap Growth Portfolio - Service Class (continued) Band 17 441,645.563 $ 13.97 $ 6,169,789 Band 18 57,556.309 13.90 800,033 Band 19 86,284.761 13.77 1,188,141 Band 20 649,883.864 14.30 9,293,339 Band 21 105,948.754 14.10 1,493,877 Band 25 19,212.220 15.63 300,287 --------------- --------------- 15,546,812.152 $ 226,741,969 =============== =============== ING AIM Mid-Cap Growth Portfolio - Adviser Class Contracts in accumulation period: Band 6 97,071.778 $ 14.49 $ 1,406,570 Band 10 45,119.853 14.40 649,726 Band 11 1,661.482 14.39 23,909 Band 12 27,927.454 14.37 401,318 Band 14 2,520.890 10.33 26,041 Band 17 41,303.963 10.31 425,844 Band 20 251,215.323 14.34 3,602,428 --------------- --------------- 466,820.743 $ 6,535,836 =============== =============== ING Alliance Mid-Cap Growth Portfolio - Service Class Contracts in accumulation period: Band 1 1,530.467 $ 20.66 $ 31,619 Band 2 107,225.750 20.30 2,176,683 Band 3 5,422.784 19.68 106,720 Band 4 252,276.154 19.86 5,010,204 Band 5 177,236.701 19.77 3,503,970 Band 6 4,750,522.337 19.60 93,110,238 Band 7 3,025,948.471 19.51 59,036,255 Band 8 3,525,160.386 19.34 68,176,602 Band 9 561,408.565 19.25 10,807,115 Band 10 1,007,647.612 19.17 19,316,605 Band 11 5,372,096.496 19.08 102,499,601 Band 12 841,675.078 19.00 15,991,826 Band 13 2,040,023.764 18.91 38,576,849 Band 14 3,046,960.180 18.75 57,130,503 Band 15 3,598.635 18.66 67,151 Band 16 96,774.428 18.50 1,790,327 Band 17 672,083.579 18.42 12,379,780 Band 18 70,237.356 18.33 1,287,451 Band 19 197,735.676 18.17 3,592,857 Band 20 978,118.020 18.83 18,417,962 Band 21 143,730.655 18.58 2,670,516 Band 25 70,366.145 20.48 1,441,099 --------------- --------------- 26,947,779.239 $ 517,121,933 =============== ===============
160 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Alliance Mid-Cap Growth Portfolio - Adviser Class Contracts in accumulation period: Band 6 171,022.505 $ 20.25 $ 3,463,206 Band 7 1,246.789 20.23 25,223 Band 8 65.611 20.18 1,324 Band 10 44,722.763 20.13 900,269 Band 11 4,004.799 20.11 80,537 Band 12 46,382.996 20.08 931,371 Band 14 43,094.394 10.80 465,419 Band 17 47,199.022 10.78 508,805 Band 20 322,656.896 20.04 6,466,044 --------------- --------------- 680,395.775 $ 12,842,198 =============== =============== ING American Funds Growth Contracts in accumulation period: Band 2 35,010.814 $ 11.95 $ 418,379 Band 4 361,864.201 11.91 4,309,803 Band 5 175,093.647 11.90 2,083,614 Band 6 9,468,741.111 11.89 112,583,332 Band 7 9,624,874.842 11.88 114,343,513 Band 8 1,165,893.075 11.86 13,827,492 Band 9 889,396.944 11.85 10,539,354 Band 10 7,574,704.650 11.85 89,760,250 Band 11 4,110,116.524 11.84 48,663,780 Band 12 1,802,348.190 11.83 21,321,779 Band 13 3,253,026.242 11.82 38,450,770 Band 14 11,869,102.759 11.81 140,174,104 Band 15 281,985.025 11.80 3,327,423 Band 16 217,697.385 11.78 2,564,475 Band 17 6,510,337.040 11.77 76,626,667 Band 18 109,317.871 11.76 1,285,578 Band 19 884,347.582 11.75 10,391,084 Band 20 9,623,913.927 11.81 113,658,423 Band 21 829,532.158 11.79 9,780,184 Band 26 479,212.501 11.96 5,731,382 Band 27 263,710.846 11.91 3,140,796 Band 28 67,255.730 11.89 799,671 Band 29 922,954.845 11.88 10,964,704 Band 30 379,328.531 11.83 4,487,457 Band 31 216,259.953 11.80 2,551,867 Band 32 211,910.202 11.76 2,492,064 Band 33 100,598.794 11.73 1,180,024
161 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING American Funds Growth (continued) Band 34 260,222.868 $ 11.70 $ 3,044,608 Band 41 110,125.900 11.83 1,302,789 Band 42 80,225.557 11.80 946,662 Band 43 211,432.763 11.77 2,488,564 Band 44 21,273.308 10.75 228,688 Band 45 66,971.014 10.64 712,572 --------------- --------------- 72,178,786.799 $ 854,181,852 =============== =============== ING American Funds Growth-Income Contracts in accumulation period: Band 2 40,701.701 $ 11.96 $ 486,792 Band 4 439,941.695 11.92 5,244,105 Band 5 103,372.303 11.91 1,231,164 Band 6 6,443,670.137 11.90 76,679,675 Band 7 7,284,061.450 11.89 86,607,491 Band 8 1,210,125.493 11.87 14,364,190 Band 9 944,765.444 11.86 11,204,918 Band 10 5,275,914.472 11.86 62,572,346 Band 11 3,405,028.149 11.85 40,349,584 Band 12 1,435,707.838 11.84 16,998,781 Band 13 2,706,899.676 11.83 32,022,623 Band 14 9,200,066.714 11.82 108,744,789 Band 15 249,931.133 11.81 2,951,687 Band 16 178,793.921 11.79 2,107,980 Band 17 5,040,579.957 11.78 59,378,032 Band 18 16,429.221 11.78 193,536 Band 19 814,462.563 11.76 9,578,080 Band 20 6,845,977.926 11.82 80,919,459 Band 21 665,072.451 11.80 7,847,855 Band 26 468,147.087 11.97 5,603,721 Band 27 297,421.972 11.92 3,545,270 Band 28 89,416.002 11.90 1,064,050 Band 29 863,074.399 11.89 10,261,955 Band 30 421,461.087 11.84 4,990,099 Band 31 195,005.443 11.82 2,304,964 Band 32 283,626.668 11.77 3,338,286 Band 33 149,167.198 11.74 1,751,223 Band 34 267,599.293 11.71 3,133,588 Band 41 120,287.174 11.84 1,424,200 Band 42 98,138.977 11.81 1,159,021 Band 43 213,260.791 11.79 2,514,345 Band 44 33,596.132 10.69 359,143 Band 45 28,546.752 10.60 302,596 --------------- --------------- 55,830,251.219 $ 661,235,548 =============== ===============
162 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING American Funds International Contracts in accumulation period: Band 2 19,257.208 $ 13.66 $ 263,053 Band 4 104,276.504 13.62 1,420,246 Band 5 67,730.179 13.61 921,808 Band 6 3,113,901.095 13.59 42,317,916 Band 7 2,954,188.081 13.58 40,117,874 Band 8 520,072.103 13.56 7,052,178 Band 9 358,028.860 13.55 4,851,291 Band 10 2,513,020.445 13.54 34,026,297 Band 11 1,408,462.931 13.54 19,070,588 Band 12 676,954.950 13.53 9,159,200 Band 13 1,413,483.435 13.52 19,110,296 Band 14 3,331,179.619 13.50 44,970,925 Band 15 137,496.512 13.49 1,854,828 Band 16 93,500.484 13.47 1,259,452 Band 17 2,021,999.464 13.46 27,216,113 Band 18 19,374.646 13.45 260,589 Band 19 258,319.143 13.43 3,469,226 Band 20 2,651,973.250 13.51 35,828,159 Band 21 269,603.680 13.48 3,634,258 Band 26 313,605.295 13.67 4,286,984 Band 27 198,242.830 13.62 2,700,067 Band 28 33,103.145 13.59 449,872 Band 29 338,146.119 13.58 4,592,024 Band 30 155,634.742 13.53 2,105,738 Band 31 101,667.053 13.50 1,372,505 Band 32 64,029.007 13.45 861,190 Band 33 39,200.471 13.41 525,678 Band 34 100,109.645 13.38 1,339,467 Band 41 33,106.278 13.53 447,928 Band 42 23,801.006 13.49 321,076 Band 43 63,943.502 13.46 860,680 Band 44 5,757.042 11.29 64,997 Band 45 15,291.476 11.16 170,653 --------------- --------------- 23,418,460.200 $ 316,903,156 =============== ===============
163 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Capital Guardian Large Cap Value (Service Class) Contracts in accumulation period: Band 2 87,326.637 $ 11.16 $ 974,565 Band 3 4,010.409 10.96 43,954 Band 4 135,873.317 11.02 1,497,324 Band 5 704,844.083 10.99 7,746,236 Band 6 6,407,946.506 10.94 70,102,935 Band 7 9,668,725.483 10.91 105,485,795 Band 8 2,378,439.284 10.86 25,829,851 Band 9 1,278,020.489 10.83 13,840,962 Band 10 4,782,802.263 10.80 51,654,264 Band 11 5,184,711.991 10.78 55,891,195 Band 12 3,827,818.224 10.75 41,149,046 Band 13 6,986,111.450 10.72 74,891,115 Band 14 9,824,887.693 10.67 104,831,552 Band 15 25,888.959 10.64 275,459 Band 16 232,872.906 10.59 2,466,124 Band 17 2,891,985.114 10.56 30,539,363 Band 18 307,981.574 10.54 3,246,126 Band 19 807,164.246 10.48 8,459,081 Band 20 3,546,844.773 10.69 37,915,771 Band 21 951,207.544 10.61 10,092,312 Band 24 1,322.903 11.44 15,134 Band 25 162,336.667 11.21 1,819,794 --------------- --------------- 60,199,122.515 $ 648,767,958 =============== =============== ING Capital Guardian Large Cap Value (Advisor Class) Contracts in accumulation period: Band 6 221,363.440 $ 14.85 $ 3,287,247 Band 7 1,549.780 14.83 22,983 Band 10 41,136.644 14.76 607,177 Band 11 6,535.978 14.75 96,406 Band 12 71,870.910 14.73 1,058,659 Band 14 1,061.213 10.49 11,132 Band 17 37,766.614 10.48 395,794 Band 20 310,586.842 14.69 4,562,521 --------------- --------------- 691,871.421 $ 10,041,919 =============== ===============
164 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Capital Guardian Managed Global (Service Class) Contracts in accumulation period: Band 1 6,461.171 $ 21.86 $ 141,241 Band 2 863,687.133 21.33 18,422,447 Band 3 15,154.654 20.44 309,761 Band 4 263,691.461 20.67 5,450,502 Band 5 279,066.918 20.52 5,726,453 Band 6 2,183,114.534 20.30 44,317,225 Band 7 2,907,288.499 20.14 58,552,790 Band 8 2,144,239.573 19.92 42,713,252 Band 9 519,725.277 19.77 10,274,969 Band 10 1,520,290.891 19.65 29,873,716 Band 11 1,445,886.979 19.53 28,238,173 Band 12 753,550.276 19.41 14,626,411 Band 13 1,790,399.701 19.29 34,536,810 Band 14 2,325,689.132 19.05 44,304,378 Band 15 4,501.918 18.93 85,221 Band 16 114,945.492 18.70 2,149,481 Band 17 680,585.131 18.58 12,645,272 Band 18 75,446.069 18.47 1,393,489 Band 19 209,967.435 18.24 3,829,806 Band 20 981,189.802 19.17 18,809,408 Band 21 218,939.111 18.82 4,120,434 Band 24 1,150.600 22.64 26,050 Band 25 120,934.595 21.56 2,607,350 --------------- --------------- 19,425,906.352 $ 383,154,639 =============== =============== ING Capital Guardian Managed Global (Advisor Class) Contracts in accumulation period: Band 6 42,405.483 $ 15.02 $ 636,930 Band 7 643.903 15.00 9,659 Band 10 21,795.351 14.93 325,405 Band 12 44,545.838 14.89 663,288 Band 14 6,885.280 10.72 73,810 Band 17 19,544.768 10.71 209,324 Band 20 191,724.699 14.86 2,849,029 --------------- --------------- 327,545.322 $ 4,767,445 =============== ===============
165 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Capital Guardian Small Cap (Service Class) Contracts in accumulation period: Band 1 11,249.533 $ 20.35 $ 228,928 Band 2 162,600.017 19.98 3,248,748 Band 3 10,735.447 19.36 207,838 Band 4 214,994.351 19.54 4,200,990 Band 5 250,088.080 19.45 4,864,213 Band 6 5,002,599.519 19.27 96,400,093 Band 7 3,780,121.564 19.18 72,502,732 Band 8 3,112,021.731 19.01 59,159,533 Band 9 824,288.786 18.92 15,595,544 Band 10 1,628,458.348 18.84 30,680,155 Band 11 3,617,318.225 18.75 67,824,717 Band 12 1,042,087.430 18.67 19,455,772 Band 13 2,430,550.577 18.58 45,159,630 Band 14 3,360,369.348 18.41 61,864,400 Band 15 11,810.621 18.33 216,489 Band 16 64,353.141 18.16 1,168,653 Band 17 1,056,898.449 18.08 19,108,724 Band 18 97,884.621 17.99 1,760,944 Band 19 249,301.850 17.83 4,445,052 Band 20 1,320,464.699 18.50 24,428,597 Band 21 209,959.040 18.24 3,829,653 Band 24 1,339.958 20.91 28,019 Band 25 87,015.143 20.17 1,755,095 --------------- --------------- 28,546,510.478 $ 538,134,519 =============== =============== ING Capital Guardian Small Cap (Advisor Class) Contracts in accumulation period: Band 6 148,689.736 $ 14.23 $ 2,115,855 Band 7 7,686.096 14.21 109,219 Band 10 60,825.537 14.14 860,073 Band 11 1,957.006 14.13 27,653 Band 12 34,755.155 14.11 490,395 Band 14 4,446.291 10.23 45,486 Band 17 68,769.165 10.22 702,821 Band 20 254,887.357 14.08 3,588,814 --------------- --------------- 582,016.343 $ 7,940,316 =============== ===============
166 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Developing World (Service Class) Contracts in accumulation period: Band 1 12,079.171 $ 10.91 $ 131,784 Band 2 337,237.605 10.76 3,628,677 Band 3 13,218.986 10.50 138,799 Band 4 137,210.350 10.57 1,450,313 Band 5 143,613.210 10.54 1,513,683 Band 6 2,479,087.606 10.46 25,931,256 Band 7 2,350,722.066 10.43 24,518,031 Band 8 1,216,614.069 10.36 12,604,122 Band 9 387,271.731 10.32 3,996,644 Band 10 1,024,921.700 10.28 10,536,195 Band 11 1,481,109.473 10.25 15,181,372 Band 12 414,950.392 10.21 4,236,644 Band 13 1,042,282.456 10.18 10,610,435 Band 14 1,999,160.973 10.11 20,211,517 Band 15 2,102.279 10.07 21,170 Band 16 53,845.976 10.00 538,460 Band 17 614,996.456 9.96 6,125,365 Band 18 33,905.566 9.93 336,682 Band 19 99,625.805 9.86 982,310 Band 20 746,274.822 10.14 7,567,227 Band 21 111,441.753 10.03 1,117,761 Band 25 32,923.837 10.83 356,565 --------------- --------------- 14,734,596.282 $ 151,735,012 =============== =============== ING Developing World (Advisor Class) Contracts in accumulation period: Band 6 122,068.346 $ 16.25 $ 1,983,611 Band 7 7,917.753 16.23 128,505 Band 10 40,816.781 16.15 659,191 Band 11 5,961.234 16.14 96,214 Band 12 39,905.002 16.12 643,269 Band 14 24,588.788 11.12 273,427 Band 17 39,082.603 11.10 433,817 Band 20 186,572.432 16.08 3,000,085 --------------- --------------- 466,912.939 $ 7,218,119 =============== ===============
167 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Eagle Asset Capital Appreciation (Service Class) Contracts in accumulation period: Band 1 2,982.778 $ 22.26 $ 66,397 Band 2 176,919.008 21.81 3,858,604 Band 3 7,662.877 21.05 161,304 Band 4 156,662.789 21.30 3,336,917 Band 5 103,784.716 21.17 2,197,122 Band 6 1,978,275.901 20.98 41,504,228 Band 7 1,253,336.926 20.85 26,132,075 Band 8 1,591,353.974 20.67 32,893,287 Band 9 251,123.869 20.53 5,155,573 Band 10 394,924.424 20.43 8,068,306 Band 11 1,766,998.295 20.32 35,905,405 Band 12 361,329.640 20.22 7,306,085 Band 13 904,507.281 20.12 18,198,686 Band 14 1,062,334.519 19.92 21,161,704 Band 15 20,783.421 19.82 411,927 Band 16 21,817.307 19.62 428,056 Band 17 248,765.146 19.52 4,855,896 Band 18 27,715.318 19.42 538,231 Band 19 56,600.741 19.22 1,087,866 Band 20 287,426.189 20.02 5,754,272 Band 21 85,355.258 19.72 1,683,206 Band 25 11,163.727 22.03 245,937 Band 26 18,994.493 21.92 416,359 Band 27 9,423.975 21.27 200,448 Band 28 2,301.530 20.95 48,217 Band 29 19,236.364 20.84 400,886 Band 30 17,603.024 20.22 355,933 Band 31 20,979.872 19.91 417,709 Band 32 9,490.891 19.34 183,554 Band 33 2,487.073 18.95 47,130 Band 34 4,836.962 18.66 90,258 Band 41 1,116.304 12.55 14,010 Band 43 12,414.154 12.49 155,053 Band 45 746.000 11.05 8,243 --------------- --------------- 10,891,454.746 $ 223,288,884 =============== ===============
168 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Eagle Asset Capital Appreciation (Advisor Class) Contracts in accumulation period: Band 6 48,662.400 $ 13.43 $ 653,536 Band 7 448.292 13.41 6,012 Band 10 3,260.701 13.35 43,530 Band 12 16,525.301 13.32 220,117 Band 20 73,840.970 13.29 981,347 --------------- --------------- 142,737.664 $ 1,904,542 =============== =============== ING Evergreen Health Sciences (Advisor Class A) Contracts in accumulation period: Band 6 31,725.875 $ 9.90 $ 314,086 Band 10 27,444.370 9.88 271,150 Band 12 3,967.529 9.87 39,160 Band 14 8,274.278 9.86 81,584 Band 17 76,627.449 9.85 754,780 Band 20 128,734.027 9.87 1,270,605 --------------- --------------- 276,773.528 $ 2,731,365 =============== =============== ING Evergreen Health Sciences (Service Class) Contracts in accumulation period: Band 2 480.784 $ 9.93 $ 4,774 Band 4 16,761.803 9.92 166,277 Band 5 4,491.947 9.91 44,515 Band 6 332,589.944 9.91 3,295,966 Band 7 320,989.886 9.90 3,177,800 Band 8 38,043.612 9.90 376,632 Band 9 66,820.151 9.89 660,851 Band 10 346,642.709 9.89 3,428,296 Band 11 185,657.948 9.89 1,836,157 Band 12 57,200.323 9.88 565,139 Band 13 137,600.689 9.88 1,359,495 Band 14 588,011.654 9.87 5,803,675 Band 15 8,908.628 9.87 87,928 Band 16 15,723.399 9.86 155,033 Band 17 328,685.047 9.86 3,240,835 Band 18 11,064.124 9.85 108,982 Band 19 27,061.884 9.85 266,560 Band 20 346,575.427 9.88 3,424,165 Band 21 22,300.534 9.86 219,883 Band 26 33,384.972 9.94 331,847 Band 27 8,087.159 9.92 80,225
169 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Evergreen Health Science (Service Class) Band 28 73.274 $ 9.91 $ 726 Band 29 26,895.695 9.90 266,267 Band 30 2,340.973 9.88 23,129 Band 31 4,792.298 9.87 47,300 Band 34 4,304.314 9.83 42,311 Band 41 19,119.724 9.88 188,903 Band 42 5,956.679 9.87 58,792 Band 43 6,156.471 9.86 60,703 Band 44 108.883 9.83 1,070 Band 45 5,040.411 9.82 49,497 --------------- --------------- 2,971,871.346 $ 29,373,733 =============== =============== ING Evergreen Omega (Advisor Class) Contracts in accumulation period: Band 6 11,799.437 $ 10.48 $ 123,658 Band 10 3,038.619 10.46 31,784 Band 17 9,147.290 10.43 95,406 Band 20 6,369.800 10.45 66,564 --------------- --------------- 30,355.146 $ 317,412 =============== =============== ING Evergreen Omega (Service Class) Contracts in accumulation period: Band 4 3,725.386 $ 10.50 $ 39,117 Band 6 13,650.941 10.49 143,198 Band 7 65,580.898 10.48 687,288 Band 8 1,868.240 10.48 19,579 Band 9 3,177.273 10.47 33,266 Band 10 45,865.151 10.47 480,208 Band 11 34,588.192 10.46 361,792 Band 12 4,428.697 10.46 46,324 Band 13 736.275 10.46 7,701 Band 14 44,626.802 10.45 466,350 Band 16 5,542.430 10.44 57,863 Band 17 23,171.751 10.44 241,913 Band 18 158.410 10.43 1,652 Band 19 2,370.930 10.42 24,705 Band 20 23,822.824 10.45 248,949 Band 21 806.029 10.44 8,415 Band 26 12,322.523 10.52 129,633 Band 27 11.481 10.50 121 Band 29 2,003.319 10.48 20,995 Band 30 286.434 10.46 2,996 Band 31 1,236.530 10.45 12,922 Band 43 155.766 10.44 1,626 --------------- --------------- 290,136.282 $ 3,036,613 =============== ===============
170 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING FMR Diversified Mid-Cap (Service Class) Contracts in accumulation period: Band 2 10,300.678 $ 11.85 $ 122,063 Band 3 5,639.677 11.67 65,815 Band 4 38,198.034 11.72 447,681 Band 5 164,482.910 11.70 1,924,450 Band 6 2,675,496.737 11.65 31,169,537 Band 7 3,545,777.207 11.62 41,201,931 Band 8 580,268.449 11.57 6,713,706 Band 9 291,957.249 11.55 3,372,106 Band 10 2,007,252.847 11.52 23,123,553 Band 11 1,782,970.664 11.50 20,504,163 Band 12 1,114,409.533 11.47 12,782,277 Band 13 2,325,814.503 11.45 26,630,576 Band 14 3,937,987.077 11.40 44,893,053 Band 15 451.011 11.37 5,128 Band 16 102,101.045 11.32 1,155,784 Band 17 1,202,124.119 11.30 13,584,003 Band 18 101,131.348 11.27 1,139,750 Band 19 242,986.988 11.22 2,726,314 Band 20 1,529,322.195 11.42 17,464,859 Band 21 247,897.238 11.35 2,813,634 Band 25 47,623.150 11.90 566,715 --------------- --------------- 21,954,192.659 $ 252,407,098 =============== =============== ING FMR Diversified Mid-Cap (Advisor Class) Contracts in accumulation period: Band 6 155,168.354 $ 15.21 $ 2,360,111 Band 7 773.112 15.19 11,744 Band 10 70,293.018 15.12 1,062,830 Band 11 2,917.303 15.10 44,051 Band 12 55,324.223 15.09 834,843 Band 14 12,827.168 11.84 151,874 Band 17 82,046.159 11.82 969,786 Band 20 286,384.109 15.05 4,310,081 --------------- --------------- 665,733.446 $ 9,745,320 =============== ===============
171 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Goldman Sachs Tollkeeper (Service Class) Contracts in accumulation period: Band 2 3,057.700 $ 7.21 $ 22,046 Band 3 1,469.075 7.12 10,460 Band 4 12,026.816 7.14 85,871 Band 5 28,965.072 7.13 206,521 Band 6 1,260,748.877 7.10 8,951,317 Band 7 1,916,723.070 7.09 13,589,567 Band 8 152,527.602 7.06 1,076,845 Band 9 89,509.452 7.05 631,042 Band 10 915,327.145 7.04 6,443,903 Band 11 549,061.305 7.02 3,854,410 Band 12 389,181.662 7.01 2,728,163 Band 13 879,166.850 7.00 6,154,168 Band 14 1,693,238.002 6.97 11,801,869 Band 15 5,773.863 6.96 40,186 Band 16 108,204.257 6.93 749,855 Band 17 548,033.501 6.92 3,792,392 Band 18 54,139.317 6.91 374,103 Band 19 133,685.784 6.88 919,758 Band 20 884,008.072 6.98 6,170,376 Band 21 82,352.661 6.94 571,527 Band 25 12,269.978 7.24 88,835 --------------- --------------- 9,719,470.061 $ 68,263,214 =============== =============== ING Goldman Sachs Tollkeeper (Advisor Class) Contracts in accumulation period: Band 6 68,187.766 $ 15.87 $ 1,082,140 Band 10 22,952.109 15.78 362,184 Band 11 354.050 15.76 5,580 Band 12 39,231.661 15.74 617,506 Band 14 2,537.941 11.18 28,374 Band 17 22,610.375 11.16 252,332 Band 20 126,769.546 15.70 1,990,282 --------------- --------------- 282,643.448 $ 4,338,398 =============== ===============
172 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Hard Assets (Service Class) Contracts in accumulation period: Band 1 24,276.460 $ 24.34 $ 590,889 Band 2 194,135.840 23.57 4,575,782 Band 3 10,611.875 22.28 236,433 Band 4 48,610.558 22.67 1,102,001 Band 5 46,254.376 22.46 1,038,873 Band 6 964,040.394 22.13 21,334,214 Band 7 1,054,904.501 21.93 23,134,056 Band 8 538,575.162 21.61 11,638,609 Band 9 89,495.239 21.40 1,915,198 Band 10 643,253.280 21.23 13,656,267 Band 11 1,046,498.785 21.06 22,039,264 Band 12 330,847.960 20.89 6,911,414 Band 13 588,098.289 20.72 12,185,397 Band 14 1,970,232.314 20.39 40,173,037 Band 15 4,831.990 20.22 97,703 Band 16 31,070.085 19.90 618,295 Band 17 367,333.939 19.73 7,247,499 Band 18 18,255.356 19.57 357,257 Band 19 94,134.069 19.26 1,813,022 Band 20 695,317.301 20.55 14,288,771 Band 21 79,322.931 20.06 1,591,218 Band 25 59,572.665 23.96 1,427,361 --------------- --------------- 8,899,673.369 $ 187,972,560 =============== =============== ING Hard Assets (Advisor Class) Contracts in accumulation period: Band 6 162,141.823 $ 15.44 $ 2,503,470 Band 7 1,553.850 15.43 23,976 Band 10 59,041.720 15.35 906,290 Band 11 3,656.857 15.34 56,096 Band 12 48,334.836 15.32 740,490 Band 14 9,381.656 10.56 99,070 Band 17 65,205.776 10.54 687,269 Band 20 338,632.634 15.28 5,174,307 --------------- --------------- 687,949.152 $ 10,190,968 =============== ===============
173 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING International (Service Class) Contracts in accumulation period: Band 1 1,226.159 $ 11.15 $ 13,672 Band 2 13,337.197 10.95 146,042 Band 3 4,295.239 10.62 45,615 Band 4 7,514.349 10.71 80,479 Band 5 80,357.086 10.67 857,410 Band 6 3,629,883.903 10.50 38,113,781 Band 7 2,088,275.607 10.52 21,968,659 Band 8 1,424,650.422 10.43 14,859,104 Band 9 521,139.000 10.39 5,414,634 Band 10 677,330.263 10.34 7,003,595 Band 11 3,363,468.181 10.29 34,610,088 Band 12 385,031.763 10.25 3,946,576 Band 13 1,399,197.665 10.20 14,271,816 Band 14 2,062,905.769 10.11 20,855,977 Band 15 11,026.643 10.07 111,038 Band 16 27,298.020 9.98 272,434 Band 17 452,328.629 9.93 4,491,623 Band 18 47,462.189 9.89 469,401 Band 19 146,274.110 9.80 1,433,486 Band 20 629,288.699 10.16 6,393,573 Band 21 181,675.930 10.02 1,820,393 Band 25 44,745.716 11.05 494,440 --------------- --------------- 17,198,712.539 $ 177,673,836 =============== =============== ING International (Advisor Class) Contracts in accumulation period: Band 6 124,811.927 $ 14.33 $ 1,788,555 Band 8 593.896 14.28 8,481 Band 10 54,646.919 14.24 778,172 Band 11 707.447 14.23 10,067 Band 12 123,456.624 14.21 1,754,319 Band 14 11,249.691 11.39 128,134 Band 17 39,469.306 11.37 448,766 Band 20 290,654.490 14.18 4,121,481 --------------- --------------- 645,590.300 $ 9,037,975 =============== ===============
174 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Janus Special Equity (Service Class) Contracts in accumulation period: Band 2 9,988.470 $ 10.59 $ 105,778 Band 3 562.447 10.43 5,866 Band 4 4,137.207 10.48 43,358 Band 5 77,276.937 10.45 807,544 Band 6 776,697.545 10.41 8,085,421 Band 7 1,232,737.597 10.39 12,808,144 Band 8 197,493.559 10.34 2,042,083 Band 9 110,170.369 10.32 1,136,958 Band 10 395,916.030 10.30 4,077,935 Band 11 574,081.116 10.27 5,895,813 Band 12 289,980.669 10.25 2,972,302 Band 13 573,272.599 10.23 5,864,579 Band 14 1,246,672.979 10.19 12,703,598 Band 15 3,447.486 10.16 35,026 Band 16 20,183.180 10.12 204,254 Band 17 160,338.905 10.10 1,619,423 Band 18 52,500.117 10.08 529,201 Band 19 83,138.075 10.03 833,875 Band 20 487,446.243 10.21 4,976,826 Band 21 44,257.020 10.14 448,766 Band 25 6,896.720 10.63 73,312 Band 26 1,301.507 11.52 14,993 Band 28 1,532.936 11.48 17,598 Band 29 20,570.086 11.48 236,145 Band 30 3,028.280 11.45 34,674 Band 31 4,593.810 11.44 52,553 Band 32 4,600.637 11.42 52,539 Band 34 337.379 11.39 3,843 Band 41 811.637 11.45 9,293 --------------- --------------- 6,383,971.542 $ 65,691,700 =============== =============== ING Janus Special Equity (Advisor Class) Contracts in accumulation period: Band 6 19,158.322 $ 16.45 $ 315,154 Band 10 28,831.083 16.36 471,677 Band 11 1,033.878 16.34 16,894 Band 12 20,498.542 16.32 334,536 Band 14 1,105.910 11.33 12,530 Band 17 6,620.830 11.31 74,882 Band 20 58,409.753 16.28 950,911 --------------- --------------- 135,658.318 $ 2,176,584 =============== ===============
175 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Jennison Equity Opportunities (Service Class) Contracts in accumulation period: Band 1 11,523.643 $ 23.31 $ 268,616 Band 2 860,865.943 22.72 19,558,874 Band 3 12,601.718 21.72 273,709 Band 4 176,573.887 22.04 3,891,688 Band 5 138,641.126 21.87 3,032,081 Band 6 2,135,530.170 21.62 46,170,162 Band 7 1,625,885.916 21.45 34,875,253 Band 8 2,091,664.972 21.21 44,364,214 Band 9 540,897.687 21.04 11,380,487 Band 10 411,913.037 20.91 8,613,102 Band 11 2,584,522.113 20.77 53,680,524 Band 12 494,460.680 20.64 10,205,668 Band 13 1,286,081.281 20.51 26,377,527 Band 14 1,841,165.280 20.24 37,265,185 Band 15 2,018.731 20.11 40,597 Band 16 24,925.947 19.86 495,029 Band 17 228,037.688 19.73 4,499,184 Band 18 30,266.198 19.60 593,217 Band 19 76,094.625 19.35 1,472,431 Band 20 290,715.792 20.38 5,924,788 Band 21 67,037.918 19.98 1,339,418 Band 25 29,704.092 23.02 683,788 --------------- --------------- 14,961,128.444 $ 315,005,542 =============== =============== ING Jennison Equity Opportunities (Advisor Class) Contracts in accumulation period: Band 6 41,095.391 $ 13.96 $ 573,692 Band 10 15,647.688 13.88 217,190 Band 11 799.388 13.86 11,080 Band 12 13,466.108 13.84 186,371 Band 14 1,953.799 10.89 21,277 Band 17 15,424.121 10.87 167,660 Band 20 153,109.591 13.81 2,114,443 --------------- --------------- 241,496.086 $ 3,291,713 =============== ===============
176 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING JPMorgan Small Cap Equity (Service Class) Contracts in accumulation period: Band 1 1,261.109 $ 13.63 $ 17,189 Band 2 12,445.697 13.63 169,635 Band 3 1,701.945 13.63 23,198 Band 4 32,147.279 13.63 438,167 Band 5 59,643.413 13.63 812,940 Band 6 1,507,668.311 13.63 20,549,519 Band 7 2,163,452.561 13.63 29,487,858 Band 8 233,264.098 13.63 3,179,390 Band 9 190,712.535 13.63 2,599,412 Band 10 1,021,256.234 13.63 13,919,722 Band 11 750,693.034 13.63 10,231,946 Band 12 359,826.555 13.63 4,904,436 Band 13 873,013.493 13.63 11,899,174 Band 14 2,003,023.963 13.63 27,301,217 Band 15 62,309.386 13.63 849,277 Band 16 35,214.829 13.63 479,978 Band 17 631,091.542 13.63 8,601,778 Band 18 88,750.653 13.63 1,209,671 Band 19 171,394.944 13.63 2,336,113 Band 20 784,754.973 13.63 10,696,210 Band 21 145,849.304 13.63 1,987,926 Band 25 18,868.921 13.63 257,183 Band 26 85,598.142 13.63 1,166,703 Band 27 38,408.074 13.63 523,502 Band 28 11,498.329 13.63 156,722 Band 29 105,254.854 13.63 1,434,624 Band 30 55,427.858 13.63 755,482 Band 31 96,630.661 13.63 1,317,076 Band 32 24,553.258 13.63 334,661 Band 33 17,071.652 13.63 232,687 Band 34 8,724.480 13.63 118,915 Band 41 19,315.115 13.63 263,265 Band 42 6,479.569 13.63 88,317 Band 43 12,250.123 13.63 166,969 Band 44 6,558.191 13.63 89,388 Band 45 3,602.536 13.63 49,103 --------------- --------------- 11,639,717.621 $ 158,649,353 =============== ===============
177 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING JPMorgan Small Cap Equity (Advisor Class) Contracts in accumulation period: Band 6 465,562.438 $ 15.53 $ 7,230,185 Band 7 1,001.485 15.51 15,533 Band 10 182,313.574 15.44 2,814,922 Band 11 18,269.325 15.42 281,713 Band 12 174,317.700 15.40 2,684,493 Band 14 63,709.749 11.95 761,332 Band 17 236,815.229 11.93 2,825,206 Band 20 1,041,029.604 15.37 16,000,625 --------------- --------------- 2,183,019.104 $ 32,614,009 =============== =============== ING Julius Baer Foreign (Service Class) Contracts in accumulation period: Band 2 2,483.965 $ 12.50 $ 31,050 Band 4 34,787.865 12.42 432,065 Band 5 30,676.893 12.40 380,393 Band 6 1,725,311.124 12.37 21,342,099 Band 7 2,435,713.806 12.35 30,081,065 Band 8 175,207.274 12.32 2,158,554 Band 9 135,743.353 12.30 1,669,643 Band 10 1,879,993.575 12.29 23,105,121 Band 11 830,172.325 12.27 10,186,214 Band 12 238,180.273 12.25 2,917,708 Band 13 630,751.814 12.24 7,720,402 Band 14 3,018,082.543 12.20 36,820,607 Band 15 66,812.168 12.19 814,440 Band 16 88,474.555 12.15 1,074,966 Band 17 1,213,308.331 12.14 14,729,563 Band 18 25,477.325 12.12 308,785 Band 19 277,455.505 12.09 3,354,437 Band 20 1,434,654.222 12.22 17,531,475 Band 21 138,775.193 12.17 1,688,894 Band 25 8,401.079 12.54 105,350 Band 26 150,528.102 12.52 1,884,612 Band 27 77,370.472 12.42 960,941 Band 28 23,195.623 12.37 286,930 Band 29 219,058.546 12.35 2,705,373 Band 30 76,704.340 12.25 939,628 Band 31 44,521.024 12.20 543,156 Band 32 33,545.721 12.11 406,239 Band 33 27,896.345 12.04 335,872 Band 34 33,751.138 11.99 404,676
178 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Julius Baer Foreign (Service Class) (continued) Band 41 15,179.694 $ 13.55 $ 205,685 Band 42 5,836.335 13.52 78,907 Band 43 19,483.825 13.49 262,837 Band 44 10,318.505 11.59 119,591 Band 45 2,992.906 11.44 34,239 --------------- --------------- 15,130,845.764 $ 185,621,517 =============== =============== ING Julius Baer Foreign (Advisor Class) Contracts in accumulation period: Band 6 205,325.938 $ 14.62 $ 3,001,865 Band 7 8,856.558 14.61 129,394 Band 10 124,512.601 14.54 1,810,413 Band 11 7,933.239 14.52 115,191 Band 12 76,866.654 14.50 1,114,566 Band 14 26,484.220 11.48 304,039 Band 17 154,023.383 11.47 1,766,648 Band 20 641,027.811 14.47 9,275,672 --------------- --------------- 1,245,030.404 $ 17,517,788 =============== =============== ING Legg Mason Value (Service Class) Contracts in accumulation period: Band 2 17,876.112 $ 9.73 $ 173,935 Band 3 3,716.173 9.58 35,601 Band 4 120,084.540 9.63 1,156,414 Band 5 297,258.865 9.61 2,856,658 Band 6 3,526,755.135 9.56 33,715,779 Band 7 4,967,783.790 9.54 47,392,657 Band 8 699,819.752 9.50 6,648,288 Band 9 360,927.554 9.48 3,421,593 Band 10 2,715,141.010 9.46 25,685,234 Band 11 2,237,159.393 9.44 21,118,785 Band 12 1,930,096.186 9.42 18,181,506 Band 13 3,269,857.522 9.40 30,736,661 Band 14 4,910,437.283 9.36 45,961,693 Band 15 63,441.748 9.34 592,546 Band 16 148,342.041 9.30 1,379,581 Band 17 1,659,737.212 9.28 15,402,361 Band 18 158,166.377 9.26 1,464,621 Band 19 380,726.811 9.22 3,510,301 Band 20 1,838,795.621 9.38 17,247,903 Band 21 401,514.714 9.32 3,742,117 Band 25 59,399.258 9.77 580,331 Band 26 185,616.792 9.75 1,809,764
179 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Legg Mason Value (Service Class) (continued) Band 27 67,031.018 $ 9.63 $ 645,509 Band 28 28,492.254 9.56 272,386 Band 29 172,109.371 9.54 1,641,923 Band 30 109,370.414 9.42 1,030,269 Band 31 54,328.837 9.36 508,518 Band 32 17,811.075 9.24 164,574 Band 33 37,314.088 9.16 341,797 Band 34 50,136.846 9.10 456,245 Band 41 10,068.808 12.10 121,833 Band 42 4,995.161 12.07 60,292 Band 43 17,968.922 12.04 216,346 Band 44 1,257.366 11.21 14,095 Band 45 7,766.795 11.12 86,367 --------------- --------------- 30,531,304.844 $ 288,374,483 =============== =============== ING Legg Mason Value (Advisor Class) Contracts in accumulation period: Band 6 220,537.040 $ 13.14 $ 2,897,857 Band 7 1,576.121 13.13 20,694 Band 10 129,179.849 13.07 1,688,381 Band 11 4,756.116 13.05 62,067 Band 12 153,181.130 13.04 1,997,482 Band 14 15,238.107 11.17 170,210 Band 17 123,329.202 11.15 1,375,121 Band 20 438,491.498 13.01 5,704,774 --------------- --------------- 1,086,289.063 $ 13,916,586 =============== ===============
180 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Lifestyle Aggressive Growth Contracts in accumulation period: Band 4 124,268.047 $ 11.27 $ 1,400,501 Band 5 2,391.848 11.27 26,956 Band 6 1,993,792.534 11.26 22,450,104 Band 7 2,311,250.607 11.26 26,024,682 Band 8 207,985.517 11.25 2,339,837 Band 9 149,185.087 11.25 1,678,332 Band 10 2,210,106.293 11.24 24,841,595 Band 11 1,032,926.871 11.24 11,610,098 Band 12 132,442.578 11.24 1,488,655 Band 13 770,621.287 11.23 8,654,077 Band 14 4,678,466.196 11.22 52,492,391 Band 15 6,133.117 11.22 68,814 Band 16 175,102.551 11.21 1,962,900 Band 17 2,086,787.907 11.21 23,392,892 Band 18 1,879.468 11.20 21,050 Band 19 469,049.069 11.20 5,253,350 Band 20 2,359,301.334 11.23 26,494,954 Band 21 163,522.225 11.22 1,834,719 Band 26 12,182.071 11.30 137,657 Band 27 26.890 11.27 303 Band 28 12,516.596 11.26 140,937 Band 29 69,657.581 11.26 784,344 Band 30 26,503.737 11.24 297,902 Band 31 68,596.054 11.22 769,648 Band 32 2,847.311 11.20 31,890 Band 33 489.866 11.19 5,482 Band 34 31.598 11.17 353 Band 41 16,419.162 11.24 184,551 Band 42 4,941.511 11.22 55,444 Band 43 10,082.871 11.21 113,029 Band 44 184.566 11.18 2,063 Band 45 2,578.006 11.17 28,796 --------------- --------------- 19,102,270.356 $ 214,588,306 =============== ===============
181 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Lifestyle Growth Contracts in accumulation period: Band 2 19.875 $ 11.17 $ 222 Band 4 291,254.918 11.16 3,250,405 Band 5 51,949.259 11.15 579,234 Band 6 5,437,264.310 11.14 60,571,124 Band 7 4,856,751.160 11.14 54,104,208 Band 8 413,897.719 11.13 4,606,682 Band 9 657,713.357 11.13 7,320,350 Band 10 5,655,755.267 11.12 62,891,999 Band 11 1,790,317.358 11.12 19,908,329 Band 12 738,122.471 11.12 8,207,922 Band 13 961,248.849 11.11 10,679,475 Band 14 8,243,161.073 11.11 91,581,520 Band 15 76,494.259 11.10 849,086 Band 16 638,720.229 11.09 7,083,407 Band 17 4,240,167.471 11.09 47,023,457 Band 18 7,866.214 11.09 87,236 Band 19 446,533.565 11.08 4,947,592 Band 20 6,653,474.117 11.11 73,920,097 Band 21 434,385.907 11.10 4,821,684 Band 26 206,982.594 11.18 2,314,065 Band 27 39,316.288 11.16 438,770 Band 28 4,117.293 11.14 45,867 Band 29 185,454.492 11.14 2,065,963 Band 30 71,606.675 11.12 796,266 Band 31 78,290.519 11.11 869,808 Band 32 24,934.447 11.08 276,274 Band 33 36,425.101 11.07 403,226 Band 34 37,639.962 11.06 416,298 Band 41 80,652.930 11.12 896,861 Band 42 39,943.891 11.10 443,377 Band 43 270,365.447 11.09 2,998,353 Band 44 80,312.202 11.06 888,253 Band 45 14,915.361 11.05 164,815 --------------- --------------- 42,766,054.580 $ 475,452,225 =============== ===============
182 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Lifestyle Moderate Growth Contracts in accumulation period: Band 2 16,548.905 $ 11.00 $ 182,038 Band 4 536,087.599 10.98 5,886,242 Band 5 58,422.722 10.97 640,897 Band 6 6,187,485.744 10.97 67,876,719 Band 7 4,122,598.435 10.96 45,183,679 Band 8 511,128.283 10.95 5,596,855 Band 9 815,113.139 10.95 8,925,489 Band 10 4,847,017.879 10.95 53,074,846 Band 11 2,699,957.923 10.94 29,537,540 Band 12 448,537.182 10.94 4,906,997 Band 13 1,346,988.719 10.94 14,736,057 Band 14 7,771,171.302 10.93 84,938,902 Band 15 61,971.873 10.92 676,733 Band 16 284,127.233 10.92 3,102,669 Band 17 3,589,799.236 10.91 39,164,710 Band 18 8,005.382 10.91 87,339 Band 19 868,857.917 10.90 9,470,551 Band 20 5,434,550.269 10.93 59,399,634 Band 21 292,655.661 10.92 3,195,800 Band 26 182,642.232 11.00 2,009,065 Band 27 28,590.257 10.98 313,921 Band 28 28,543.711 10.97 313,125 Band 29 193,278.223 10.96 2,118,329 Band 30 114,530.666 10.94 1,252,965 Band 31 49,275.342 10.93 538,579 Band 32 68,510.254 10.91 747,447 Band 33 232,984.489 10.89 2,537,201 Band 34 246,316.419 10.88 2,679,923 Band 41 96,327.896 10.94 1,053,827 Band 42 13,055.283 10.92 142,564 Band 43 302,213.795 10.91 3,297,153 Band 44 25,676.112 10.89 279,613 Band 45 5,962.621 10.88 64,873 --------------- --------------- 41,488,932.703 $ 453,932,282 =============== ===============
183 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Lifestyle Moderate Contracts in accumulation period: Band 4 185,823.657 $ 10.84 $ 2,014,328 Band 5 43,278.005 10.83 468,701 Band 6 3,603,108.071 10.83 39,021,660 Band 7 1,762,007.296 10.82 19,064,919 Band 8 203,559.626 10.82 2,202,515 Band 9 490,307.931 10.81 5,300,229 Band 10 1,873,298.490 10.81 20,250,357 Band 11 1,351,986.483 10.80 14,601,454 Band 12 527,750.340 10.80 5,699,704 Band 13 863,041.299 10.80 9,320,846 Band 14 3,610,208.491 10.79 38,954,150 Band 15 48,875.070 10.79 527,362 Band 16 136,800.095 10.78 1,474,705 Band 17 1,301,835.276 10.78 14,033,784 Band 18 7,997.175 10.77 86,130 Band 19 417,929.138 10.76 4,496,918 Band 20 1,845,688.064 10.79 19,914,974 Band 21 220,958.059 10.78 2,381,928 Band 26 80,248.326 10.86 871,497 Band 27 14,374.518 10.84 155,820 Band 28 19,056.497 10.83 206,382 Band 29 263,440.569 10.82 2,850,427 Band 30 73,464.053 10.80 793,412 Band 31 54,159.532 10.79 584,381 Band 32 77,112.732 10.77 830,504 Band 33 11,333.635 10.75 121,837 Band 34 38,216.781 10.74 410,448 Band 41 39,775.284 10.80 429,573 Band 42 28,980.741 10.79 312,702 Band 43 369,838.848 10.78 3,986,863 Band 44 29,101.707 10.75 312,843 Band 45 15,305.223 10.74 164,378 --------------- --------------- 19,608,861.012 $ 211,845,731 =============== ===============
184 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Limited Maturity Bond Contracts in accumulation period: Band 1 23,526.753 $ 22.45 $ 528,176 Band 2 518,635.439 21.74 11,275,134 Band 3 13,082.339 20.54 268,711 Band 4 216,064.002 20.93 4,522,220 Band 5 285,547.828 20.70 5,910,840 Band 6 3,368,052.401 20.43 68,809,311 Band 7 2,758,488.346 20.20 55,721,465 Band 8 1,693,679.290 19.94 33,771,965 Band 9 393,676.090 19.72 7,763,292 Band 10 809,811.758 19.56 15,839,918 Band 11 2,522,674.087 19.44 49,040,784 Band 12 644,003.064 19.25 12,397,059 Band 13 1,972,193.319 19.09 37,649,170 Band 14 1,718,053.968 18.78 32,265,054 Band 15 1,128.749 18.67 21,074 Band 16 49,031.565 18.37 900,710 Band 17 281,027.594 18.22 5,120,323 Band 18 32,649.496 18.07 589,976 Band 19 82,784.990 17.78 1,471,917 Band 20 466,124.039 18.97 8,842,373 Band 21 143,020.099 18.51 2,647,302 Band 24 1,261.783 23.58 29,753 Band 25 89,729.333 22.11 1,983,916 --------------- --------------- 18,084,246.332 $ 357,370,443 =============== ===============
185 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Liquid Assets (Service Class) Contracts in accumulation period: Band 1 125,989.840 $ 17.22 $ 2,169,545 Band 2 403,654.437 16.68 6,732,956 Band 3 32,086.393 15.76 505,682 Band 4 615,096.978 16.04 9,866,156 Band 5 225,600.314 15.85 3,575,765 Band 6 5,650,655.730 15.66 88,489,269 Band 7 6,173,904.680 15.47 95,510,305 Band 8 2,859,998.394 15.29 43,729,375 Band 9 1,131,571.930 15.10 17,086,736 Band 10 1,780,415.036 14.97 26,652,813 Band 11 4,839,983.103 14.90 72,115,748 Band 12 909,498.114 14.73 13,396,907 Band 13 5,378,658.908 14.62 78,635,993 Band 14 5,492,891.985 14.38 78,987,787 Band 15 113,261.815 14.31 1,620,777 Band 16 203,936.215 14.08 2,871,422 Band 17 862,220.424 13.97 12,045,219 Band 18 92,226.631 13.85 1,277,339 Band 19 455,671.252 13.63 6,210,799 Band 20 1,339,734.204 14.54 19,479,735 Band 21 227,939.473 14.19 3,234,461 Band 25 47,965.706 16.95 813,019 Band 26 296,716.160 16.81 4,987,799 Band 27 75,274.404 16.02 1,205,896 Band 28 21,655.696 15.64 338,695 Band 29 694,267.522 15.51 10,768,089 Band 30 210,710.286 14.78 3,114,298 Band 31 371,485.540 14.42 5,356,821 Band 32 95,077.740 13.76 1,308,270 Band 33 46,242.519 13.32 615,950 Band 34 206,137.788 13.00 2,679,791 Band 35 31,348.169 17.37 544,518 Band 36 1,753.188 16.82 29,489 Band 38 3,821.724 9.98 38,141 Band 39 1,668.389 9.95 16,600 Band 41 92,851.240 9.88 917,370 Band 42 25,423.903 9.85 250,425 Band 43 108,910.959 9.83 1,070,595 Band 44 12,729.224 9.90 126,019 Band 45 1,461.087 9.89 14,450 --------------- --------------- 41,260,497.100 $ 618,391,024 =============== ===============
186 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Liquid Assets (Advisor Class) Contracts in accumulation period: Band 6 206,101.957 $ 9.85 $ 2,030,104 Band 7 15,265.015 9.83 150,055 Band 8 214.107 9.81 2,100 Band 10 125,734.819 9.79 1,230,944 Band 11 1,031.863 9.78 10,092 Band 12 115,991.706 9.77 1,133,239 Band 14 18,805.742 9.91 186,365 Band 17 66,141.548 9.90 654,801 Band 20 420,988.886 9.74 4,100,432 --------------- --------------- 970,275.643 $ 9,498,132 =============== =============== ING Marsico Growth (Service Class) Contracts in accumulation period: Band 1 12,078.490 $ 16.09 $ 194,343 Band 2 273,472.179 15.81 4,323,595 Band 3 7,197.703 15.33 110,341 Band 4 406,302.410 15.47 6,285,498 Band 5 423,500.804 15.40 6,521,912 Band 6 10,489,009.301 15.26 160,062,282 Band 7 6,699,025.942 15.19 101,758,204 Band 8 6,191,793.331 15.06 93,248,408 Band 9 1,835,266.332 14.99 27,510,642 Band 10 2,512,016.319 14.93 37,504,404 Band 11 8,870,600.113 14.86 131,817,118 Band 12 1,539,756.572 14.79 22,773,000 Band 13 4,872,617.151 14.73 71,773,651 Band 14 5,846,166.479 14.60 85,354,031 Band 15 27,998.575 14.53 406,819 Band 16 89,287.394 14.40 1,285,738 Band 17 1,380,889.559 14.34 19,801,956 Band 18 90,447.307 14.28 1,291,588 Band 19 372,076.492 14.15 5,264,882 Band 20 1,913,665.262 14.66 28,054,333 Band 21 349,743.578 14.47 5,060,790 Band 24 808.316 16.52 13,353 Band 25 145,232.101 15.95 2,316,452 Band 26 28,439.536 11.25 319,945 Band 27 3,281.341 11.22 36,817 Band 28 2,039.573 11.21 22,864 Band 29 24,109.038 11.21 270,262
187 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Marsico Growth (Service Class) (continued) Band 30 4,465.956 $ 11.18 $ 49,929 Band 31 4,940.175 11.17 55,182 Band 32 1,277.283 11.15 14,242 Band 33 2,544.507 11.14 28,346 Band 41 1,083.217 11.19 12,121 Band 43 8,161.776 11.16 91,085 Band 44 100.574 11.13 1,119 Band 45 779.427 11.02 8,589 --------------- --------------- 54,430,174.113 $ 813,643,841 =============== =============== ING Marsico Growth (Advisor Class) Contracts in accumulation period: Band 6 205,275.489 $ 14.16 $ 2,906,701 Band 7 8,754.685 14.15 123,879 Band 10 98,569.254 14.08 1,387,855 Band 11 5,974.460 14.06 84,001 Band 12 96,977.826 14.05 1,362,538 Band 14 15,759.138 11.00 173,351 Band 17 47,683.088 10.98 523,560 Band 20 609,228.693 14.01 8,535,294 --------------- --------------- 1,088,222.633 $ 15,097,179 =============== ===============
188 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Mercury Focus Value (Service Class) Contracts in accumulation period: Band 1 1,324.315 $ 12.10 $ 16,024 Band 2 1,144.045 12.04 13,774 Band 3 397.619 11.92 4,740 Band 4 6,785.999 11.96 81,161 Band 5 5,138.175 11.94 61,350 Band 6 405,740.721 11.91 4,832,372 Band 7 488,820.609 11.89 5,812,077 Band 8 78,886.605 11.86 935,595 Band 9 34,490.958 11.84 408,373 Band 10 265,975.024 11.83 3,146,485 Band 11 248,218.513 11.81 2,931,461 Band 12 128,595.574 11.80 1,517,428 Band 13 285,244.170 11.78 3,360,176 Band 14 615,881.421 11.75 7,236,607 Band 15 653.782 11.73 7,669 Band 16 9,298.768 11.70 108,796 Band 17 257,303.775 11.69 3,007,881 Band 18 124,385.389 11.67 1,451,577 Band 19 105,343.140 11.64 1,226,194 Band 20 359,376.233 11.76 4,226,264 Band 21 42,465.166 11.72 497,692 Band 25 2,961.203 12.07 35,742 --------------- --------------- 3,468,431.204 $ 40,919,438 =============== =============== ING Mercury Focus Value (Advisor Class) Contracts in accumulation period: Band 6 20,089.869 $ 14.44 $ 290,098 Band 10 37,780.405 14.36 542,527 Band 11 1,281.776 14.34 18,381 Band 12 24,553.818 14.33 351,856 Band 14 812.422 10.65 8,652 Band 17 5,738.006 10.63 60,995 Band 20 80,233.397 14.29 1,146,535 --------------- --------------- 170,489.693 $ 2,419,044 =============== ===============
189 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Mercury Large Cap Growth (Service Class) Contracts in accumulation period: Band 2 5,178.185 $ 11.05 $ 57,219 Band 4 71.421 10.98 784 Band 5 7,333.279 10.97 80,446 Band 6 273,907.526 10.94 2,996,548 Band 7 289,685.275 10.92 3,163,363 Band 8 31,998.120 10.89 348,460 Band 9 5,665.105 10.88 61,636 Band 10 188,505.821 10.86 2,047,173 Band 11 151,829.532 10.85 1,647,350 Band 12 67,045.295 10.83 726,101 Band 13 138,104.190 10.82 1,494,287 Band 14 242,746.489 10.79 2,619,235 Band 16 816.579 10.74 8,770 Band 17 72,892.789 10.73 782,140 Band 18 1,929.163 10.72 20,681 Band 19 18,254.397 10.69 195,140 Band 20 215,008.313 10.80 2,322,090 Band 21 26,549.622 10.76 285,674 Band 25 562.897 11.08 6,237 --------------- --------------- 1,738,083.998 $ 18,863,334 =============== =============== ING Mercury Large Cap Growth (Advisor Class) Contracts in accumulation period: Band 6 35,879.412 $ 12.92 $ 463,562 Band 10 26,411.035 12.84 339,118 Band 12 41,435.916 12.81 530,794 Band 14 2,793.218 10.97 30,642 Band 17 9,125.710 10.95 99,927 Band 20 54,855.723 12.78 701,056 --------------- --------------- 170,501.014 $ 2,165,099 =============== ===============
190 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING MFS(R) Mid-Cap Growth (Service Class) Contracts in accumulation period: Band 1 23,072.301 $ 26.61 $ 613,954 Band 2 469,698.340 26.07 12,245,036 Band 3 7,748.403 25.14 194,795 Band 4 233,531.357 25.41 5,934,032 Band 5 244,523.752 25.28 6,181,560 Band 6 4,782,189.858 24.98 119,459,103 Band 7 3,551,098.432 24.89 88,386,840 Band 8 2,883,721.767 24.63 71,026,067 Band 9 805,418.874 24.50 19,732,762 Band 10 1,290,209.519 24.37 31,442,406 Band 11 3,792,124.800 24.25 91,959,026 Band 12 940,156.114 24.12 22,676,565 Band 13 2,244,737.937 24.00 53,873,711 Band 14 3,541,705.864 23.75 84,115,514 Band 15 3,927.177 23.63 92,799 Band 16 54,725.497 23.38 1,279,482 Band 17 704,317.643 23.26 16,382,428 Band 18 64,760.358 23.14 1,498,555 Band 19 156,677.205 22.90 3,587,908 Band 20 1,021,481.455 23.87 24,382,762 Band 21 167,581.379 23.50 3,938,162 Band 22 1,996.830 25.41 50,739 Band 23 24,168.098 24.98 603,719 Band 24 52.693 27.45 1,446 Band 25 78,820.618 26.34 2,076,135 --------------- --------------- 27,088,446.271 $ 661,735,506 =============== =============== ING MFS(R) Mid-Cap Growth (Advisor Class) Contracts in accumulation period: Band 6 243,212.913 $ 15.16 $ 3,687,108 Band 7 6,792.154 15.14 102,833 Band 8 670.498 15.11 10,131 Band 10 81,087.007 15.07 1,221,981 Band 11 551.248 15.05 8,296 Band 12 156,228.193 15.04 2,349,672 Band 14 36,305.438 10.82 392,825 Band 17 85,997.457 10.80 928,773 Band 20 559,568.003 15.00 8,393,520 --------------- --------------- 1,170,412.911 $ 17,095,139 =============== ===============
191 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING MFS(R) Total Return (Service Class) Contracts in accumulation period: Band 1 3,551.651 $ 25.80 $ 91,633 Band 2 149,881.710 25.28 3,789,010 Band 3 4,037.765 24.38 98,441 Band 4 484,054.931 24.63 11,922,273 Band 5 435,307.810 24.51 10,669,394 Band 6 8,600,359.049 24.26 208,644,711 Band 7 6,766,794.185 24.13 163,282,744 Band 8 4,961,026.099 23.88 118,469,303 Band 9 911,027.219 23.76 21,646,007 Band 10 2,977,831.254 23.63 70,366,153 Band 11 7,728,640.250 23.51 181,700,332 Band 12 2,585,539.022 23.39 60,475,758 Band 13 4,747,333.506 23.27 110,470,451 Band 14 6,387,499.777 23.03 147,104,120 Band 15 96,310.000 22.91 2,206,462 Band 16 157,856.136 22.67 3,578,599 Band 17 1,502,758.266 22.55 33,887,199 Band 18 181,189.271 22.43 4,064,075 Band 19 472,868.210 22.20 10,497,674 Band 20 2,327,129.998 23.15 53,873,059 Band 21 569,629.190 22.79 12,981,849 Band 22 2,651.456 24.63 65,305 Band 23 30,024.688 24.26 728,399 Band 24 243.691 26.62 6,487 Band 25 116,689.706 25.54 2,980,255 Band 26 282,580.285 25.41 7,180,365 Band 27 134,150.758 24.63 3,304,133 Band 28 37,331.781 24.25 905,296 Band 29 442,698.724 24.12 10,677,893 Band 30 271,607.881 23.38 6,350,192 Band 31 132,414.253 23.02 3,048,176 Band 32 152,246.511 22.34 3,401,187 Band 33 44,757.649 21.88 979,297 Band 34 88,961.582 21.54 1,916,232 Band 35 101,092.298 25.94 2,622,334 Band 36 6,021.800 25.41 153,014 Band 37 4,412.816 25.02 110,409 Band 38 134,810.437 12.01 1,619,073 Band 39 32,200.010 11.98 385,756 Band 40 6,713.740 11.95 80,229 Band 41 61,484.408 11.65 716,293
192 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING MFS(R) Total Return (Service Class) (continued) Band 42 30,951.099 $ 11.62 $ 359,652 Band 43 137,786.963 11.59 1,596,951 Band 44 34,763.853 10.83 376,493 Band 45 20,094.177 10.75 216,012 --------------- --------------- 54,357,315.865 $ 1,279,598,680 =============== =============== ING MFS(R) Total Return (Advisor Class) Contracts in accumulation period: Band 6 497,490.076 $ 12.62 $ 6,278,325 Band 7 80,712.127 12.60 1,016,973 Band 8 14,069.501 12.57 176,854 Band 10 302,038.819 12.55 3,790,587 Band 11 28,740.524 12.53 360,119 Band 12 287,529.890 12.52 3,599,874 Band 14 31,001.529 10.71 332,026 Band 17 217,817.844 10.70 2,330,651 Band 20 1,382,369.476 12.49 17,265,795 --------------- --------------- 2,841,769.786 $ 35,151,204 =============== ===============
193 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Oppenheimer Main Street (Service Class) Contracts in accumulation period: Band 1 3,368.255 $ 22.01 $ 74,135 Band 2 105,226.546 21.56 2,268,684 Band 3 7,762.703 20.79 161,387 Band 4 277,042.493 21.01 5,820,663 Band 5 162,343.454 20.90 3,392,978 Band 6 4,610,019.627 20.70 95,427,406 Band 7 2,587,272.931 20.58 53,246,077 Band 8 3,703,211.825 20.37 75,434,425 Band 9 631,569.421 20.26 12,795,596 Band 10 887,678.338 20.16 17,895,595 Band 11 4,488,627.576 20.05 89,996,983 Band 12 854,269.095 19.95 17,042,668 Band 13 1,916,551.815 19.85 38,043,554 Band 14 2,238,476.121 19.64 43,963,671 Band 15 9,183.348 19.54 179,443 Band 16 42,134.263 19.34 814,877 Band 17 375,602.151 19.24 7,226,585 Band 18 50,070.453 19.14 958,348 Band 19 107,021.203 18.94 2,026,982 Band 20 591,684.840 19.74 11,679,859 Band 21 150,163.285 19.44 2,919,174 Band 22 1,303.584 21.01 27,388 Band 23 28,573.355 20.70 591,468 Band 25 68,004.225 21.79 1,481,812 Band 26 18,770.338 21.67 406,753 Band 27 9,940.882 21.01 208,858 Band 28 9,381.739 20.68 194,014 Band 29 62,265.568 20.58 1,281,425 Band 30 44,057.008 19.95 878,937 Band 31 22,152.558 19.64 435,076 Band 32 13,782.361 19.05 262,554 Band 33 2,684.397 18.66 50,091 Band 34 23,403.694 18.37 429,926 Band 41 2,321.766 12.02 27,908 Band 43 3,549.532 11.97 42,488 Band 44 5,931.674 10.85 64,359 --------------- --------------- 24,115,402.424 $ 487,752,147 =============== ===============
194 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Oppenheimer Main Street (Advisor Class) Contracts in accumulation period: Band 6 33,660.947 $ 13.24 $ 445,671 Band 7 1,998.040 13.23 26,434 Band 10 7,015.528 13.16 92,324 Band 12 32,726.171 13.13 429,695 Band 14 3,946.278 10.74 42,383 Band 17 6,279.946 10.73 67,384 Band 20 133,111.960 13.10 1,743,767 --------------- --------------- 218,738.870 $ 2,847,658 =============== =============== ING PIMCO Core Bond (Service Class) Contracts in accumulation period: Band 1 2,752.704 $ 14.44 $ 39,749 Band 2 78,685.459 14.14 1,112,612 Band 3 3,988.061 13.64 54,397 Band 4 229,158.613 13.78 3,157,806 Band 5 394,419.187 13.71 5,407,487 Band 6 5,830,658.505 13.57 79,122,036 Band 7 6,452,866.900 13.50 87,113,703 Band 8 1,773,850.999 13.36 23,698,649 Band 9 773,577.529 13.29 10,280,845 Band 10 3,434,154.820 13.22 45,399,527 Band 11 4,363,495.755 13.15 57,379,969 Band 12 1,753,710.089 13.08 22,938,528 Band 13 4,229,657.077 13.02 55,070,135 Band 14 5,935,424.977 12.88 76,448,274 Band 15 201,998.447 12.82 2,589,620 Band 16 164,761.507 12.68 2,089,176 Band 17 1,661,001.664 12.62 20,961,841 Band 18 320,812.307 12.55 4,026,194 Band 19 440,349.986 12.42 5,469,147 Band 20 2,114,844.747 12.95 27,387,239 Band 21 788,210.172 12.75 10,049,680 Band 25 101,282.087 14.29 1,447,321 Band 26 528,207.699 14.21 7,505,831 Band 27 259,796.822 13.78 3,580,000 Band 28 86,540.598 13.57 1,174,356 Band 29 819,743.759 13.50 11,066,541 Band 30 510,333.316 13.08 6,675,160 Band 31 162,627.263 12.88 2,094,639 Band 32 162,752.903 12.50 2,034,411 Band 33 103,463.317 12.24 1,266,391
195 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING PIMCO Core Bond (Service Class) (continued) Band 34 142,530.546 $ 12.05 $ 1,717,493 Band 35 15,494.303 14.51 224,822 Band 36 2,692.912 14.22 38,293 Band 38 10,565.752 10.67 112,737 Band 39 5,050.612 10.64 53,739 Band 41 89,883.158 10.58 950,964 Band 42 77,025.378 10.55 812,618 Band 43 77,295.935 10.53 813,926 Band 44 22,624.772 10.30 233,035 Band 45 7,950.382 10.26 81,571 --------------- --------------- 44,134,241.019 $ 581,680,462 =============== =============== ING PIMCO Core Bond (Advisor Class) Contracts in accumulation period: Band 6 569,880.274 $ 10.92 $ 6,223,093 Band 7 53,865.423 10.91 587,672 Band 8 1,940.775 10.88 21,116 Band 10 276,746.571 10.86 3,005,468 Band 11 14,906.176 10.85 161,732 Band 12 384,279.625 10.83 4,161,748 Band 14 39,406.858 10.05 396,039 Band 17 208,861.019 10.03 2,094,876 Band 20 1,036,663.625 10.81 11,206,334 --------------- --------------- 2,586,550.346 $ 27,858,078 =============== ===============
196 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING PIMCO High Yield Contracts in accumulation period: Band 1 3,696.960 $ 11.13 $ 41,147 Band 2 90,269.713 10.85 979,426 Band 4 422,446.668 10.83 4,575,097 Band 5 447,708.782 10.83 4,848,686 Band 6 9,302,190.343 10.82 100,649,700 Band 7 8,211,680.026 10.82 88,850,378 Band 8 3,547,229.656 10.81 38,345,553 Band 9 1,090,508.630 10.81 11,788,398 Band 10 4,403,121.051 10.80 47,553,707 Band 11 6,965,130.715 10.80 75,223,412 Band 12 2,230,183.761 10.79 24,063,683 Band 13 5,909,999.843 10.79 63,768,898 Band 14 7,944,194.521 10.78 85,638,417 Band 15 103,712.793 10.78 1,118,024 Band 16 427,910.202 10.77 4,608,593 Band 17 2,372,831.024 10.77 25,555,390 Band 18 155,168.905 10.77 1,671,169 Band 19 666,932.724 10.76 7,176,196 Band 20 3,220,096.198 10.79 34,744,838 Band 21 671,365.884 10.77 7,230,611 Band 24 223.532 10.89 2,434 Band 25 154,395.016 10.86 1,676,730 Band 26 447,490.444 10.85 4,855,271 Band 27 163,242.560 10.83 1,767,917 Band 28 111,505.907 10.82 1,206,494 Band 29 532,760.639 10.82 5,764,470 Band 30 259,725.575 10.79 2,802,439 Band 31 178,381.608 10.78 1,922,954 Band 32 158,073.570 10.76 1,700,872 Band 33 159,785.226 10.75 1,717,691 Band 34 102,143.900 10.74 1,097,025 Band 41 66,327.511 10.80 716,337 Band 42 31,136.030 10.78 335,646 Band 43 67,084.942 10.77 722,505 Band 44 10,938.253 10.74 117,477 Band 45 15,820.699 10.73 169,756 --------------- --------------- 60,645,413.811 $ 655,007,341 =============== ===============
197 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Salomon Brothers All Cap (Service Class) Contracts in accumulation period: Band 2 47,972.883 $ 12.70 $ 609,256 Band 3 6,172.596 12.48 77,034 Band 4 144,471.113 12.54 1,811,668 Band 5 394,990.586 12.51 4,941,332 Band 6 3,895,346.852 12.45 48,497,068 Band 7 5,563,149.625 12.42 69,094,318 Band 8 1,364,781.045 12.35 16,855,046 Band 9 741,657.738 12.32 9,137,223 Band 10 2,410,480.146 12.29 29,624,801 Band 11 3,445,695.326 12.26 42,244,225 Band 12 1,658,941.764 12.23 20,288,858 Band 13 3,539,088.857 12.20 43,176,884 Band 14 6,878,510.153 12.14 83,505,113 Band 15 44,414.518 12.11 537,860 Band 16 164,134.084 12.05 1,977,816 Band 17 1,677,608.944 12.02 20,164,860 Band 18 219,486.426 11.99 2,631,642 Band 19 504,547.787 11.93 6,019,255 Band 20 1,463,875.432 12.17 17,815,364 Band 21 404,311.421 12.08 4,884,082 Band 25 80,648.526 12.76 1,029,075 Band 26 15,852.831 11.93 189,124 Band 27 7,323.566 11.88 87,004 Band 28 10,193.979 11.86 120,901 Band 29 48,754.748 11.85 577,744 Band 30 40,416.750 11.80 476,918 Band 31 27,583.867 11.77 324,662 Band 32 5,141.477 11.73 60,310 Band 33 8,738.354 11.70 102,239 Band 34 17,471.041 11.67 203,887 Band 41 3,190.141 11.80 37,644 Band 42 540.429 11.77 6,361 Band 43 15,650.759 11.74 183,740 Band 44 1,804.995 10.52 18,989 --------------- --------------- 34,852,948.759 $ 427,312,303 =============== ===============
198 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Salomon Brothers All Cap (Advisor Class) Contracts in accumulation period: Band 6 223,386.182 $ 13.84 $ 3,091,665 Band 7 3,430.878 13.82 47,415 Band 10 130,299.907 13.76 1,792,927 Band 11 3,130.863 13.74 43,018 Band 12 113,974.621 13.73 1,564,872 Band 14 19,300.022 10.32 199,176 Band 17 135,761.260 10.30 1,398,341 Band 20 485,307.261 13.69 6,643,856 --------------- --------------- 1,114,590.994 $ 14,781,270 =============== =============== ING Salomon Brothers Investors (Service Class) Contracts in accumulation period: Band 2 4,923.195 $ 11.55 $ 56,863 Band 3 1,821.903 11.35 20,679 Band 4 31,348.568 11.41 357,687 Band 5 213,214.506 11.38 2,426,381 Band 6 1,503,567.671 11.32 17,020,386 Band 7 2,108,369.906 11.29 23,803,496 Band 8 477,224.689 11.24 5,364,006 Band 9 257,973.815 11.21 2,891,886 Band 10 1,173,058.522 11.18 13,114,794 Band 11 1,321,267.358 11.15 14,732,131 Band 12 617,041.434 11.12 6,861,501 Band 13 1,181,535.578 11.10 13,115,045 Band 14 2,359,109.085 11.04 26,044,564 Band 15 19,799.760 11.01 217,995 Band 16 29,522.670 10.96 323,568 Band 17 614,931.218 10.93 6,721,198 Band 18 43,667.006 10.90 475,970 Band 19 212,623.491 10.85 2,306,965 Band 20 555,558.895 11.07 6,150,037 Band 21 202,420.093 10.99 2,224,597 Band 25 38,694.418 11.61 449,242 Band 26 4,991.000 12.11 60,441 Band 27 1,166.814 12.07 14,083 Band 28 551.299 12.04 6,638 Band 29 12,676.195 12.03 152,495 Band 30 7,288.216 11.98 87,313 Band 31 16,004.251 11.96 191,411 Band 32 1,329.926 11.91 15,839 Band 34 5,115.248 11.85 60,616 Band 41 1,464.915 11.98 17,550 Band 42 550.592 11.95 6,580 Band 43 4,338.933 11.93 51,763 --------------- --------------- 13,023,151.170 $ 145,343,720 =============== ===============
199 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Salomon Brothers Investors (Advisor Class) Contracts in accumulation period: Band 6 29,802.192 $ 13.65 $ 406,800 Band 7 668.785 13.63 9,116 Band 10 33,815.864 13.57 458,881 Band 12 10,334.696 13.54 139,932 Band 14 3,057.188 10.48 32,039 Band 17 6,172.518 10.46 64,565 Band 20 59,902.490 13.50 808,684 --------------- --------------- 143,753.733 $ 1,920,017 =============== =============== ING T. Rowe Price Capital Appreciation (Service Class) Contracts in accumulation period: Band 1 25,503.604 $ 43.65 $ 1,113,232 Band 2 811,912.749 42.27 34,319,552 Band 3 17,430.406 39.95 696,345 Band 4 325,317.843 40.66 13,227,424 Band 5 336,586.967 40.28 13,557,723 Band 6 6,834,476.560 39.69 271,260,375 Band 7 7,138,949.132 39.32 280,703,480 Band 8 3,381,218.264 38.74 130,988,396 Band 9 678,513.579 38.38 26,041,351 Band 10 3,119,934.242 38.07 118,775,897 Band 11 5,525,148.835 37.76 208,629,620 Band 12 2,090,601.188 37.46 78,313,921 Band 13 5,095,640.266 37.15 189,303,036 Band 14 6,613,564.237 36.56 241,791,909 Band 15 30,849.656 36.26 1,118,609 Band 16 204,649.451 35.68 7,301,892 Band 17 2,380,506.154 35.39 84,246,113 Band 18 283,301.858 35.10 9,943,895 Band 19 535,814.930 34.53 18,501,690 Band 20 3,088,702.899 36.86 113,849,589 Band 21 529,273.332 35.97 19,037,962 Band 25 102,081.047 42.96 4,385,402 --------------- --------------- 49,149,977.199 $ 1,867,107,413 =============== ===============
200 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING T. Rowe Price Capital Appreciation (Advisor Class) Contracts in accumulation period: Band 6 715,018.198 $ 14.16 $ 10,124,658 Band 7 7,295.223 14.14 103,154 Band 10 331,091.283 14.08 4,661,765 Band 11 22,540.241 14.06 316,916 Band 12 697,270.016 14.05 9,796,644 Band 14 82,030.788 11.26 923,667 Band 17 340,180.714 11.24 3,823,631 Band 20 1,833,168.454 14.01 25,682,690 --------------- --------------- 4,028,594.917 $ 55,433,125 =============== =============== ING T. Rowe Price Equity Income (Service Class) Contracts in accumulation period: Band 1 93,829.003 $ 31.45 $ 2,950,922 Band 2 1,497,910.650 30.45 45,611,379 Band 3 21,716.434 28.78 624,999 Band 4 190,159.313 29.29 5,569,766 Band 5 234,787.678 29.02 6,813,538 Band 6 4,171,850.052 28.60 119,314,912 Band 7 4,527,798.635 28.33 128,272,535 Band 8 1,981,687.299 27.91 55,308,892 Band 9 450,757.957 27.65 12,463,458 Band 10 2,602,039.511 27.43 71,373,944 Band 11 3,691,299.011 27.21 100,440,246 Band 12 1,324,941.172 26.99 35,760,162 Band 13 2,660,205.962 26.77 71,213,714 Band 14 5,028,150.106 26.34 132,441,474 Band 15 22,781.040 26.13 595,269 Band 16 138,681.488 25.71 3,565,501 Band 17 1,591,036.754 25.50 40,571,437 Band 18 133,584.565 25.29 3,378,354 Band 19 367,821.089 24.88 9,151,389 Band 20 2,005,505.923 26.55 53,246,182 Band 21 429,673.203 25.91 11,132,833 Band 24 875.356 33.00 28,887 Band 25 72,730.338 30.95 2,251,004 Band 26 76,762.577 11.22 861,276 Band 27 11,053.938 11.20 123,804 Band 28 16,134.940 11.19 180,550 Band 29 64,239.294 11.18 718,195 Band 30 44,116.749 11.16 492,343 Band 31 11,531.870 11.15 128,580
201 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING T. Rowe Price Equity Income (Service Class) (continued) Band 32 11,489.854 $ 11.13 $ 127,882 Band 33 3,094.456 11.11 34,379 Band 34 8,156.689 11.10 90,539 Band 41 33,702.380 11.16 376,119 Band 42 32,894.697 11.15 366,776 Band 43 28,238.967 11.13 314,300 Band 44 1,674.803 11.11 18,607 Band 45 39,007.845 11.01 429,476 --------------- --------------- 33,621,921.598 $ 916,343,623 =============== =============== ING T. Rowe Price Equity Income (Advisor Class) Contracts in accumulation period: Band 6 366,857.165 $ 13.70 $ 5,025,943 Band 7 1,598.637 13.68 21,869 Band 8 566.972 13.65 7,739 Band 10 178,103.531 13.62 2,425,770 Band 11 35,221.365 13.60 479,011 Band 12 223,333.034 13.59 3,035,096 Band 14 19,511.882 11.14 217,362 Band 17 143,422.903 11.12 1,594,863 Band 20 759,172.681 13.55 10,286,790 --------------- --------------- 1,727,788.170 $ 23,094,443 =============== =============== ING UBS U.S. Balanced (Service Class) Contracts in accumulation period: Band 2 45,748.874 $ 9.40 $ 430,039 Band 4 38,520.359 9.30 358,239 Band 5 78,578.965 9.28 729,213 Band 6 1,323,901.468 9.24 12,232,850 Band 7 1,728,684.890 9.22 15,938,475 Band 8 278,102.345 9.18 2,552,980 Band 9 234,437.507 9.16 2,147,448 Band 10 837,291.806 9.14 7,652,847 Band 11 1,035,706.196 9.12 9,445,640
202 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING UBS U.S. Balanced (Service Class) (continued) Band 12 577,561.954 9.11 5,261,589 Band 13 1,156,727.031 9.09 10,514,649 Band 14 2,040,064.775 9.05 18,462,586 Band 15 8,941.897 9.03 80,745 Band 16 60,386.725 8.99 542,877 Band 17 559,952.092 8.97 5,022,770 Band 18 36,421.107 8.95 325,969 Band 19 142,465.519 8.91 1,269,368 Band 20 745,308.111 9.07 6,759,945 Band 21 124,628.842 9.01 1,122,906 Band 24 5,631.395 9.61 54,118 Band 25 18,275.762 9.44 172,523 Band 26 7,704.709 10.96 84,444 Band 27 11,863.969 10.94 129,792 Band 28 2,644.509 10.92 28,878 Band 29 21,892.885 10.92 239,070 Band 30 4,251.437 10.90 46,341 Band 31 9,486.547 10.89 103,309 Band 32 7,653.286 10.87 83,191 Band 33 326.429 10.85 3,542 Band 34 5,236.409 10.84 56,763 Band 41 3,929.056 10.90 42,827 Band 42 19.519 10.88 212 Band 43 18,019.208 10.87 195,869 Band 44 1,364.656 10.85 14,807 Band 45 1,105.825 10.78 11,921 --------------- --------------- 11,172,836.064 $ 102,118,742 =============== =============== ING UBS U.S. Balanced (Advisor Class) Contracts in accumulation period: Band 6 51,145.701 $ 12.42 $ 635,230 Band 8 16,560.447 12.39 205,184 Band 10 16,903.623 12.37 209,098 Band 11 11,929.886 12.36 147,453 Band 12 13,509.966 12.35 166,848 Band 17 63,725.365 10.73 683,773 Band 20 93,810.105 12.33 1,156,679 --------------- --------------- 267,585.093 $ 3,204,265 =============== ===============
203 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Van Kampen Equity Growth (Service Class) Contracts in accumulation period: Band 2 19,197.681 $ 10.20 $ 195,816 Band 3 3,321.294 10.11 33,578 Band 4 5,015.829 10.13 50,810 Band 5 19,695.956 10.12 199,323 Band 6 474,118.162 10.09 4,783,852 Band 7 668,027.478 10.08 6,733,717 Band 8 126,021.590 10.05 1,266,517 Band 9 50,841.716 10.04 510,451 Band 10 299,251.606 10.02 2,998,501 Band 11 292,549.536 10.01 2,928,421 Band 12 248,781.371 10.00 2,487,814 Band 13 474,239.660 9.98 4,732,912 Band 14 670,046.428 9.96 6,673,662 Band 15 4,438.719 9.94 44,121 Band 16 6,372.654 9.92 63,217 Band 17 261,717.327 9.90 2,591,002 Band 18 10,763.038 9.89 106,446 Band 19 58,045.128 9.86 572,325 Band 20 250,344.148 9.97 2,495,931 Band 21 85,202.394 9.93 846,060 Band 25 2,011.150 10.23 20,574 --------------- --------------- 4,030,002.865 $ 40,335,050 =============== =============== ING Van Kampen Equity Growth (Advisor Class) Contracts in accumulation period: Band 6 128,400.413 $ 12.40 $ 1,592,165 Band 8 419.761 12.36 5,188 Band 10 87,238.527 12.33 1,075,651 Band 11 8,056.697 12.31 99,178 Band 12 74,795.064 12.30 919,979 Band 14 8,018.570 10.57 84,756 Band 17 68,583.100 10.55 723,552 Band 20 432,905.545 12.27 5,311,751 --------------- --------------- 808,417.677 $ 9,812,220 =============== ===============
204 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Van Kampen Global Franchise (Service Class) Contracts in accumulation period: Band 1 8,066.850 $ 12.43 $ 100,271 Band 2 2,613.187 12.37 32,325 Band 4 13,347.217 12.28 163,904 Band 5 50,810.519 12.27 623,445 Band 6 1,394,308.741 12.23 17,052,396 Band 7 1,290,721.321 12.22 15,772,615 Band 8 244,553.451 12.18 2,978,661 Band 9 57,922.440 12.17 704,916 Band 10 1,143,283.610 12.15 13,890,896 Band 11 601,306.918 12.13 7,293,853 Band 12 354,307.263 12.12 4,294,204 Band 13 793,144.719 12.10 9,597,051 Band 14 1,699,596.810 12.07 20,514,133 Band 15 14,300.002 12.05 172,315 Band 16 31,251.546 12.02 375,644 Band 17 789,276.872 12.00 9,471,322 Band 18 19,858.776 11.99 238,107 Band 19 187,729.674 11.95 2,243,370 Band 20 825,111.966 12.08 9,967,353 Band 21 133,601.934 12.04 1,608,567 Band 25 10,370.767 12.40 128,598 --------------- --------------- 9,665,484.583 $ 117,223,946 =============== =============== ING Van Kampen Global Franchise (Advisor Class) Contracts in accumulation period: Band 6 594,710.981 $ 13.11 $ 7,796,661 Band 7 4,897.461 13.10 64,157 Band 8 479.644 13.07 6,269 Band 10 380,490.998 13.04 4,961,603 Band 11 20,824.501 13.02 271,135 Band 12 286,451.015 13.01 3,726,728 Band 14 37,282.335 10.90 406,377 Band 17 316,736.016 10.89 3,449,255 Band 20 1,475,631.918 12.98 19,153,702 --------------- --------------- 3,117,504.869 $ 39,835,887 =============== ===============
205 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Van Kampen Growth and Income (Service Class) Contracts in accumulation period: Band 1 8,842.831 $ 27.59 $ 243,974 Band 2 813,881.185 26.97 21,950,376 Band 3 34,617.282 25.92 897,280 Band 4 509,150.823 26.25 13,365,209 Band 5 215,679.210 26.07 5,622,757 Band 6 5,219,472.480 25.81 134,714,585 Band 7 2,712,774.382 25.63 69,528,407 Band 8 5,419,464.744 25.38 137,546,015 Band 9 444,724.179 25.19 11,202,602 Band 10 1,423,861.580 25.05 35,667,733 Band 11 5,937,187.120 24.91 147,895,331 Band 12 841,483.478 24.77 20,843,546 Band 13 1,987,887.973 24.63 48,961,681 Band 14 2,982,065.703 24.35 72,613,300 Band 15 3,750.493 24.21 90,799 Band 16 57,509.250 23.93 1,376,196 Band 17 677,754.749 23.79 16,123,785 Band 18 100,435.286 23.66 2,376,299 Band 19 158,215.509 23.39 3,700,661 Band 20 860,949.659 24.49 21,084,657 Band 21 238,813.953 24.07 5,748,252 Band 24 48.633 28.54 1,388 Band 25 51,185.569 27.28 1,396,342 --------------- --------------- 30,699,756.071 $ 772,951,175 =============== =============== ING Van Kampen Growth and Income (Advisor Class) Contracts in accumulation period: Band 6 638,065.641 $ 13.85 $ 8,837,209 Band 7 12,946.854 13.83 179,055 Band 8 601.465 13.80 8,300 Band 10 291,623.536 13.77 4,015,656 Band 11 19,302.946 13.75 265,416 Band 12 470,456.484 13.73 6,459,368 Band 14 24,890.827 11.03 274,546 Band 17 380,711.186 11.01 4,191,630 Band 20 2,124,548.904 13.70 29,106,320 --------------- --------------- 3,963,147.843 $ 53,337,500 =============== ===============
206 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Van Kampen Real Estate (Service Class) Contracts in accumulation period: Band 1 6,597.207 $ 56.92 $ 375,513 Band 2 194,401.831 55.12 10,715,429 Band 3 2,698.128 52.09 140,545 Band 4 82,527.354 53.02 4,375,600 Band 5 78,253.536 52.53 4,110,658 Band 6 1,651,943.585 51.76 85,504,600 Band 7 1,772,550.190 51.28 90,896,374 Band 8 653,475.227 50.53 33,020,103 Band 9 166,268.341 50.05 8,321,730 Band 10 672,057.775 49.64 33,360,948 Band 11 1,054,395.809 49.24 51,918,450 Band 12 426,279.083 48.85 20,823,733 Band 13 1,026,074.924 48.45 49,713,330 Band 14 1,732,132.970 47.67 82,570,779 Band 15 6,008.430 47.29 284,139 Band 16 48,100.789 46.53 2,238,130 Band 17 499,772.495 46.15 23,064,501 Band 18 38,456.685 45.78 1,760,547 Band 19 129,932.051 45.04 5,852,140 Band 20 816,745.418 48.06 39,252,785 Band 21 87,409.309 46.91 4,100,371 Band 24 73.330 59.73 4,380 Band 25 17,188.178 56.02 962,882 Band 26 27,719.813 13.95 386,691 Band 27 23,685.241 13.92 329,699 Band 28 5,650.085 13.90 78,536 Band 29 124,977.247 13.90 1,737,184 Band 30 23,919.415 13.87 331,762 Band 31 28,435.951 13.86 394,122 Band 32 4,596.122 13.83 63,564 Band 33 4,636.947 13.81 64,036 Band 34 4,436.729 13.80 61,227 Band 41 13,496.401 13.87 187,195 Band 42 12,385.108 13.85 171,534 Band 43 18,664.877 13.84 258,322 Band 44 876.933 13.81 12,110 Band 45 2,438.985 13.59 33,146 --------------- --------------- 11,459,262.499 $ 557,476,795 =============== ===============
207 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Van Kampen Real Estate (Advisor Class) Contracts in accumulation period: Band 6 204,711.222 $ 17.69 $ 3,621,342 Band 7 5,859.764 17.67 103,542 Band 8 103.049 17.62 1,816 Band 10 93,478.782 17.58 1,643,357 Band 11 3,333.855 17.56 58,542 Band 12 106,309.420 17.54 1,864,667 Band 14 17,421.034 12.62 219,853 Band 17 84,881.719 12.60 1,069,510 Band 20 526,770.651 17.50 9,218,486 --------------- --------------- 1,042,869.496 $ 17,801,115 =============== =============== ING American Century Select Contracts in accumulation period: Band 35 15,691.972 $ 9.09 $ 142,640 Band 36 8,509.741 9.03 76,843 Band 38 4,707.921 12.11 57,013 Band 39 198.217 12.07 2,392 Band 40 1,030.499 12.05 12,418 --------------- --------------- 30,138.350 $ 291,306 =============== =============== ING American Century Small Cap Value Contracts in accumulation period: Band 35 12,504.868 $ 13.14 $ 164,314 Band 36 2,296.730 13.07 30,018 Band 38 12,365.657 14.21 175,716 Band 39 1,350.507 14.17 19,137 --------------- --------------- 28,517.762 $ 389,185 =============== =============== ING Baron Small Cap Growth Contracts in accumulation period: Band 35 38,600.009 $ 14.66 $ 565,876 Band 36 11,021.774 14.58 160,697 Band 37 462.555 14.53 6,721 Band 38 37,769.472 14.56 549,924 Band 39 11,139.304 14.52 161,743 Band 40 229.727 14.49 3,329 --------------- --------------- 99,222.841 $ 1,448,290 =============== ===============
208 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING JPMorgan International Contracts in accumulation period: Band 2 1,579.135 $ 13.97 $ 22,061 Band 4 8,091.082 13.92 112,628 Band 5 7,778.367 13.91 108,197 Band 6 627,645.152 13.89 8,717,991 Band 7 624,723.211 13.88 8,671,158 Band 8 79,950.401 13.86 1,108,113 Band 9 57,376.094 13.85 794,659 Band 10 566,780.299 13.85 7,849,907 Band 11 346,462.202 13.84 4,795,037 Band 12 80,472.344 13.83 1,112,933 Band 13 176,343.864 13.82 2,437,072 Band 14 694,345.357 13.80 9,581,966 Band 15 22,388.194 13.79 308,733 Band 16 8,511.796 13.77 117,207 Band 17 312,282.507 13.76 4,297,007 Band 18 2,770.735 13.75 38,098 Band 19 125,776.002 13.73 1,726,905 Band 20 599,494.765 13.81 8,279,023 Band 21 29,415.793 13.78 405,350 Band 26 62,799.317 13.98 877,934 Band 27 10,753.311 13.92 149,686 Band 28 1,421.860 13.89 19,750 Band 29 34,877.170 13.88 484,095 Band 30 14,011.351 13.83 193,777 Band 31 31,466.147 13.80 434,233 Band 32 5,578.091 13.74 76,643 Band 33 3,420.560 13.71 46,896 Band 34 16,222.235 13.68 221,920 Band 35 31,521.912 12.32 388,350 Band 36 663.337 12.24 8,119 Band 38 6,083.033 14.38 87,474 Band 39 3,033.191 14.34 43,496 Band 40 2,041.686 14.31 29,217 Band 41 698.627 13.83 9,662 Band 42 1,806.555 13.79 24,912 Band 43 21,025.014 13.76 289,304 Band 44 505.518 11.53 5,829 --------------- --------------- 4,620,116.215 $ 63,875,342 =============== ===============
209 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING JPMorgan Mid Cap Value Contracts in accumulation period: Band 4 53,455.232 $ 13.08 $ 699,194 Band 7 14,057.421 13.95 196,101 Band 9 99,261.059 13.89 1,378,736 Band 10 62,314.334 11.30 704,152 Band 13 30,467.118 13.82 421,056 Band 15 95,131.327 13.76 1,309,007 Band 19 17,666.655 11.25 198,750 Band 20 65,652.472 11.28 740,560 Band 21 34,710.555 11.27 391,188 Band 26 109,090.897 14.14 1,542,545 Band 27 65,022.689 14.02 911,618 Band 28 23,125.519 13.97 323,064 Band 29 234,206.339 13.95 3,267,178 Band 30 158,115.813 13.83 2,186,742 Band 31 143,911.830 13.78 1,983,105 Band 32 72,418.588 13.67 989,962 Band 33 44,169.811 13.60 600,709 Band 34 59,267.338 13.54 802,480 Band 35 19,960.429 14.21 283,638 Band 36 1,395.938 14.14 19,739 Band 38 12,422.468 13.66 169,691 Band 39 11,366.714 13.62 154,815 Band 41 31,491.735 13.00 409,393 Band 42 25,836.989 12.96 334,847 Band 43 70,198.626 12.93 907,668 Band 44 12,375.780 11.34 140,341 Band 45 7,479.591 11.30 84,519 --------------- --------------- 1,574,573.267 $ 21,150,798 =============== ===============
210 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING MFS(R) Capital Opportunities (Initial Class) Contracts in accumulation period: Band 4 5,535.514 $ 11.96 $ 66,205 Band 7 8.700 8.61 75 Band 9 44,203.652 8.56 378,383 Band 10 5,672.887 10.78 61,154 Band 13 18,318.180 8.50 155,705 Band 15 30,676.623 8.46 259,524 Band 21 101.292 10.75 1,089 Band 26 38,704.352 8.76 339,050 Band 27 46,258.439 8.67 401,061 Band 28 16,935.182 8.62 145,981 Band 29 80,028.355 8.61 689,044 Band 30 41,692.969 8.52 355,224 Band 31 52,655.702 8.47 445,994 Band 32 42,578.713 8.38 356,810 Band 33 10,673.628 8.33 88,911 Band 34 14,232.749 8.28 117,847 Band 41 3,175.156 11.88 37,721 Band 43 3,315.774 11.82 39,192 --------------- --------------- 454,767.867 $ 3,938,970 =============== =============== ING MFS(R) Capital Opportunities (Service Class) Contracts in accumulation period: Band 35 31,110.428 $ 9.71 $ 302,082 Band 38 10,059.595 12.59 126,650 Band 39 1,212.888 12.55 15,222 --------------- --------------- 42,382.911 $ 443,954 =============== =============== ING OpCap Balanced Value Contracts in accumulation period: Band 35 37,830.838 $ 11.04 $ 417,652 Band 36 4,879.684 10.97 53,530 Band 38 36,998.610 12.32 455,823 Band 39 7,466.301 12.29 91,761 Band 40 1,020.013 12.26 12,505 --------------- --------------- 88,195.446 $ 1,031,271 =============== ===============
211 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Oppenheimer Global Contracts in accumulation period: Band 4 4,634.728 $ 12.91 $ 59,834 Band 7 7,076.703 12.23 86,548 Band 9 25,496.577 12.18 310,548 Band 10 4,786.949 10.93 52,321 Band 13 1,285.604 12.12 15,582 Band 15 4,805.990 12.07 58,008 Band 19 959.460 10.88 10,439 Band 20 750.096 10.91 8,184 Band 21 1,231.073 10.90 13,419 Band 26 46,217.362 12.40 573,095 Band 27 8,346.273 12.30 102,659 Band 28 3,413.131 12.25 41,811 Band 29 39,415.816 12.23 482,055 Band 30 20,840.680 12.13 252,797 Band 31 19,567.881 12.09 236,576 Band 32 15,350.328 11.99 184,050 Band 33 11,637.101 11.93 138,831 Band 34 8,269.822 11.88 98,245 Band 35 11,616.566 12.47 144,859 Band 36 397.527 12.40 4,929 Band 38 2,675.792 13.54 36,230 Band 39 2,348.035 13.51 31,722 Band 41 5,092.969 12.82 65,292 Band 42 1,071.554 12.79 13,705 Band 43 1,983.272 12.76 25,307 Band 45 1,199.304 11.14 13,360 --------------- --------------- 250,470.593 $ 3,060,406 =============== =============== ING PIMCO Total Return Contracts in accumulation period: Band 35 102,583.093 $ 11.50 $ 1,179,706 Band 36 2,727.455 11.44 31,202 Band 37 1,150.738 11.39 13,107 Band 38 48,780.383 10.56 515,121 Band 39 33,199.747 10.53 349,593 Band 40 2,622.643 10.51 27,564 --------------- --------------- 191,064.059 $ 2,116,293 =============== ===============
212 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Salomon Brothers Aggressive Growth Contracts in accumulation period: Band 2 4,860.117 $ 11.73 $ 57,009 Band 4 17,503.207 11.69 204,612 Band 5 11,055.867 11.69 129,243 Band 6 1,125,953.782 11.67 13,139,881 Band 7 1,399,560.679 11.66 16,318,878 Band 8 43,425.688 11.65 505,909 Band 9 57,727.702 11.64 671,950 Band 10 1,121,330.760 11.63 13,041,077 Band 11 593,955.767 11.62 6,901,766 Band 12 137,698.189 11.61 1,598,676 Band 13 414,445.098 11.61 4,811,708 Band 14 1,917,275.484 11.59 22,221,223 Band 15 53,907.909 11.58 624,254 Band 16 36,723.727 11.57 424,894 Band 17 960,023.938 11.56 11,097,877 Band 18 9,694.416 11.55 111,970 Band 19 117,909.631 11.54 1,360,677 Band 20 1,402,386.520 11.60 16,267,684 Band 21 44,213.100 11.58 511,988 Band 26 74,276.250 11.74 872,003 Band 27 5,666.899 11.69 66,246 Band 28 1,074.063 11.67 12,534 Band 29 31,530.668 11.66 367,648 Band 30 31,538.460 11.61 366,162 Band 31 30,056.570 11.59 348,356 Band 32 16,446.420 11.54 189,792 Band 33 10,422.309 11.51 119,961 Band 34 22,058.320 11.49 253,450 Band 41 10,577.270 11.62 122,908 Band 42 5,895.119 11.58 68,265 Band 43 14,647.820 11.56 169,329 Band 44 8,349.684 10.56 88,173 Band 45 491.692 10.37 5,099 --------------- --------------- 9,732,683.125 $ 113,051,202 =============== ===============
213 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Salomon Brothers Fundamental Value Contracts in accumulation period: Band 35 40,561.378 $ 11.14 $ 451,854 Band 36 12.641 11.07 140 Band 38 25,625.062 12.72 325,951 Band 39 1,001.212 12.69 12,705 Band 40 1,450.233 12.66 18,360 --------------- --------------- 68,650.526 $ 809,010 =============== =============== ING Salomon Brothers Investors Value Contracts in accumulation period: Band 35 36,067.533 $ 10.84 $ 390,972 Band 37 1,105.821 10.72 11,854 Band 38 12,502.546 12.66 158,282 Band 39 4,665.215 12.62 58,875 Band 40 2,478.303 12.60 31,227 --------------- --------------- 56,819.418 $ 651,210 =============== =============== ING T. Rowe Price Diversified Mid Cap Growth Contracts in accumulation period: Band 35 27,167.826 $ 10.61 $ 288,251 Band 38 17,516.550 12.94 226,664 Band 39 882.989 12.90 11,391 Band 40 217.001 12.87 2,793 --------------- --------------- 45,784.366 $ 529,099 =============== =============== ING T. Rowe Price Growth Equity Contracts in accumulation period: Band 35 166,665.001 $ 10.62 $ 1,769,982 Band 36 23,973.312 10.55 252,918 Band 37 1,607.126 10.51 16,891 Band 38 43,509.309 12.51 544,301 Band 39 26,407.184 12.47 329,298 Band 40 5,495.027 12.44 68,358 --------------- --------------- 267,656.959 $ 2,981,748 =============== ===============
214 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING UBS U.S. Large Cap Equity Contracts in accumulation period: Band 4 11,138.691 $ 11.18 $ 124,531 Band 7 9,490.072 11.17 106,004 Band 9 560.705 11.16 6,257 Band 10 4,249.331 11.15 47,380 Band 21 468.415 11.13 5,213 Band 26 4,949.106 11.21 55,479 Band 27 3,161.196 11.18 35,342 Band 28 227.496 11.17 2,541 Band 29 3,804.190 11.17 42,493 Band 31 2,963.697 11.13 32,986 Band 32 1,085.238 11.11 12,057 Band 35 9,007.277 10.33 93,045 Band 37 2,041.880 10.22 20,868 Band 38 2,606.798 12.76 33,263 Band 40 730.531 12.70 9,278 Band 41 460.854 11.15 5,139 Band 43 3,812.266 11.12 42,392 --------------- --------------- 60,757.743 $ 674,268 =============== =============== ING Van Kampen Comstock Contracts in accumulation period: Band 4 44,171.965 $ 12.80 $ 565,401 Band 6 1,348,176.487 12.21 16,461,235 Band 7 33,981.904 12.20 414,579 Band 9 99,101.305 12.15 1,204,081 Band 10 668,782.385 12.13 8,112,330 Band 11 17,898.950 12.12 216,935 Band 12 579,935.916 12.10 7,017,225 Band 13 28,576.239 12.08 345,201 Band 14 85,638.295 11.22 960,862 Band 15 79,746.732 12.03 959,353 Band 17 523,752.456 11.20 5,866,028 Band 19 7,564.124 11.02 83,357 Band 20 3,524,219.939 12.07 42,537,335 Band 21 26,220.964 11.04 289,479 Band 26 150,756.938 12.36 1,863,356 Band 27 112,674.403 12.26 1,381,388 Band 28 22,480.176 12.21 274,483 Band 29 280,729.965 12.20 3,424,906 Band 30 138,645.237 12.10 1,677,607 Band 31 91,678.968 12.05 1,104,732
215 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING Van Kampen Comstock (continued) Band 32 74,072.813 $ 11.96 $ 885,911 Band 33 26,551.456 11.89 315,697 Band 34 114,176.939 11.84 1,351,855 Band 35 142,627.676 12.43 1,772,862 Band 36 9,515.124 12.36 117,607 Band 37 1,636.777 12.31 20,149 Band 38 159,722.450 13.39 2,138,684 Band 39 61,836.916 13.35 825,523 Band 40 1,652.040 13.32 22,005 Band 41 14,942.883 12.71 189,924 Band 42 15,835.666 12.68 200,796 Band 43 45,300.331 12.65 573,049 Band 44 7,501.292 11.21 84,089 Band 45 3,431.338 11.10 38,088 --------------- --------------- 8,543,537.049 $ 103,296,112 =============== =============== ING Van Kampen Equity and Income Contracts in accumulation period: Band 35 10,731.098 $ 10.43 $ 111,925 Band 36 3,975.601 10.37 41,227 Band 38 7,448.505 12.57 93,628 Band 40 704.933 12.51 8,819 --------------- --------------- 22,860.137 $ 255,599 =============== ===============
216 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET U.S. Core Portfolio - Series 1 Contracts in accumulation period: Band 6 139,338.549 $ 10.41 $ 1,450,514 Band 7 24,787.560 10.40 257,791 Band 9 1,566,885.114 10.37 16,248,599 Band 10 47,947.588 10.37 497,216 Band 12 14,596.817 10.35 151,077 Band 13 490,833.118 10.34 5,075,214 Band 14 22,476.768 10.32 231,960 Band 15 511,544.286 10.32 5,279,137 Band 17 17,022.847 10.29 175,165 Band 20 100,103.834 10.33 1,034,073 Band 26 1,387,887.170 10.48 14,545,058 Band 27 520,167.736 10.43 5,425,349 Band 28 199,976.715 10.41 2,081,758 Band 29 4,684,918.141 10.40 48,723,149 Band 30 1,767,254.383 10.35 18,291,083 Band 31 1,582,854.445 10.32 16,335,058 Band 32 1,893,270.780 10.28 19,462,824 Band 33 615,426.640 10.24 6,301,969 Band 34 502,072.500 10.22 5,131,181 Band 35 349,823.937 10.51 3,676,650 Band 36 29,131.210 10.48 305,295 Band 38 5,141.452 10.48 53,882 Band 39 13,757.522 10.45 143,766 --------------- --------------- 16,487,219.112 $ 170,877,768 =============== ===============
217 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET U.S. Core Portfolio - Series 2 Contracts in accumulation period: Band 5 2,695.232 $ 10.22 $ 27,545 Band 6 152,423.239 10.21 1,556,241 Band 9 1,555,670.588 10.18 15,836,727 Band 10 19,338.972 10.17 196,677 Band 12 9,875.989 10.16 100,340 Band 13 466,936.122 10.15 4,739,402 Band 14 21,669.752 10.14 219,731 Band 15 235,475.774 10.13 2,385,370 Band 20 9,809.547 10.15 99,567 Band 26 1,339,511.744 10.27 13,756,786 Band 27 311,648.146 10.23 3,188,161 Band 28 187,629.911 10.21 1,915,701 Band 29 2,488,811.224 10.20 25,385,874 Band 30 1,370,016.324 10.16 13,919,366 Band 31 905,770.951 10.14 9,184,517 Band 32 1,056,417.761 10.10 10,669,819 Band 33 627,190.501 10.07 6,315,808 Band 34 303,733.015 10.05 3,052,517 Band 35 39,821.231 10.29 409,760 Band 38 40,770.529 10.26 418,306 --------------- --------------- 11,145,216.552 $ 113,378,215 =============== ===============
218 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET U.S. Core Portfolio - Series 3 Contracts in accumulation period: Band 6 118,356.398 $ 9.94 $ 1,176,463 Band 9 1,548,880.392 9.92 15,364,893 Band 10 54,672.084 9.91 541,800 Band 12 97,754.677 9.90 967,771 Band 13 509,720.953 9.90 5,046,237 Band 14 18,394.694 9.89 181,924 Band 15 161,875.392 9.88 1,599,329 Band 20 169.790 9.89 1,679 Band 26 1,199,173.767 9.99 11,979,746 Band 27 366,458.794 9.96 3,649,930 Band 28 153,771.140 9.94 1,528,485 Band 29 4,442,262.446 9.93 44,111,666 Band 30 1,370,369.465 9.90 13,566,658 Band 31 1,215,021.762 9.89 12,016,565 Band 32 1,627,301.844 9.86 16,045,196 Band 33 335,758.396 9.83 3,300,505 Band 34 642,443.906 9.82 6,308,799 Band 35 2,688.498 10.01 26,912 Band 36 12,324.466 9.99 123,121 Band 38 148,882.319 9.98 1,485,846 Band 39 7,756.827 9.96 77,258 Band 40 8,403.827 9.95 83,618 --------------- --------------- 14,042,441.837 $ 139,184,401 =============== ===============
219 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET U.S. Core Portfolio - Series 4 Contracts in accumulation period: Band 6 41,391.545 $ 10.37 $ 429,230 Band 9 774,485.517 10.36 8,023,670 Band 10 122,780.024 10.35 1,270,773 Band 12 6,029.233 10.34 62,342 Band 13 175,256.843 10.34 1,812,156 Band 15 143,322.558 10.33 1,480,522 Band 19 199,290.102 10.30 2,052,688 Band 20 31,860.776 10.33 329,122 Band 21 60,200.125 10.32 621,265 Band 26 829,385.954 10.41 8,633,908 Band 27 272,469.616 10.38 2,828,235 Band 28 108,402.588 10.37 1,124,135 Band 29 1,927,672.143 10.37 19,989,960 Band 30 712,600.651 10.34 7,368,291 Band 31 398,106.901 10.33 4,112,444 Band 32 841,617.276 10.31 8,677,074 Band 33 358,436.959 10.29 3,688,316 Band 34 161,630.504 10.28 1,661,562 Band 35 6,842.934 10.43 71,372 Band 36 38,523.946 10.41 401,034 Band 38 27,650.029 10.41 287,837 Band 39 11,605.531 10.39 120,581 Band 40 4,174.937 10.38 43,336 Band 44 54,098.552 10.31 557,756 Band 45 71,910.224 10.30 740,675 --------------- --------------- 7,379,745.468 $ 76,388,284 =============== ===============
220 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET U.S. Core Portfolio - Series 5 Contracts in accumulation period: Band 6 52,759.565 $ 10.47 $ 552,393 Band 9 549,654.296 10.46 5,749,384 Band 10 181,888.475 10.46 1,902,553 Band 12 346.751 10.45 3,624 Band 13 1,982.226 10.45 20,714 Band 15 12,477.540 10.44 130,266 Band 19 232,888.978 10.42 2,426,703 Band 20 19,289.997 10.44 201,388 Band 21 48,697.143 10.44 508,398 Band 26 403,467.586 10.50 4,236,410 Band 27 66,556.032 10.48 697,507 Band 28 35,264.163 10.47 369,216 Band 29 1,213,976.429 10.47 12,710,333 Band 30 642,648.220 10.45 6,715,674 Band 31 182,908.271 10.44 1,909,562 Band 32 63,565.370 10.42 662,351 Band 33 66,393.518 10.41 691,157 Band 34 42,499.447 10.40 441,994 Band 35 22,796.269 10.51 239,589 Band 36 106.821 10.50 1,122 Band 38 29,497.852 10.49 309,432 Band 39 6,151.685 10.48 64,470 Band 40 15,158.083 10.47 158,705 Band 44 180,596.066 10.41 1,880,005 Band 45 49,123.290 10.40 510,882 --------------- --------------- 4,120,694.073 $ 43,093,832 =============== ===============
221 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING GET U.S. Core Portfolio - Series 6 Contracts in accumulation period: Band 6 5,776.574 $ 10.07 $ 58,170 Band 9 388,096.350 10.07 3,908,130 Band 10 121,030.594 10.07 1,218,778 Band 12 1,714.871 10.06 17,252 Band 13 24,808.389 10.06 249,572 Band 15 38,289.736 10.06 385,195 Band 19 90,270.736 10.05 907,221 Band 20 31,842.921 10.06 320,340 Band 21 66,246.809 10.05 665,780 Band 26 841,640.496 10.09 8,492,153 Band 27 162,926.234 10.08 1,642,296 Band 28 140,233.588 10.07 1,412,152 Band 29 1,895,355.252 10.07 19,086,227 Band 30 739,261.571 10.06 7,436,971 Band 31 623,967.155 10.06 6,277,110 Band 32 355,407.449 10.05 3,571,845 Band 33 54,627.029 10.04 548,455 Band 34 239,076.272 10.04 2,400,326 Band 35 19,243.067 10.09 194,163 Band 36 361.321 10.09 3,646 Band 38 43,470.206 10.09 438,614 Band 39 21,453.859 10.08 216,255 Band 44 21,843.297 10.04 219,307 Band 45 64,762.529 10.04 650,216 --------------- --------------- 5,991,706.305 $ 60,320,174 =============== =============== ING GET U.S. Core Portfolio - Series 7 Contracts in accumulation period: Band 9 1,111.907 $ 10.00 $ 11,119 Band 26 2,697.630 10.00 26,976 Band 27 9,550.490 10.00 95,505 Band 29 87,839.934 10.00 878,399 Band 30 24,034.115 10.00 240,341 Band 32 339.866 9.99 3,395 Band 39 1,267.465 10.00 12,675 --------------- --------------- 126,841.407 $ 1,268,410 =============== ===============
222 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP Worldwide Growth Contracts in accumulation period: Band 2 4,652.117 $ 7.29 $ 33,914 Band 4 28,021.189 7.21 202,033 Band 5 87,677.880 7.19 630,404 Band 6 816,641.566 7.15 5,838,987 Band 7 1,331,777.529 7.14 9,508,892 Band 8 108,249.116 7.10 768,569 Band 9 101,884.261 7.09 722,359 Band 10 521,141.612 7.07 3,684,471 Band 11 456,264.960 7.05 3,216,668 Band 12 504,727.680 7.04 3,553,283 Band 13 872,735.232 7.02 6,126,601 Band 14 1,512,926.762 6.99 10,575,358 Band 15 8,245.427 6.97 57,471 Band 16 35,903.286 6.94 249,169 Band 17 308,570.147 6.92 2,135,305 Band 18 28,663.760 6.90 197,780 Band 19 103,986.087 6.87 714,384 Band 20 707,361.585 7.00 4,951,531 Band 21 133,300.263 6.95 926,437 Band 25 22,084.077 7.33 161,876 Band 26 31,756.959 7.31 232,143 Band 27 27,876.093 7.20 200,708 Band 28 3,980.166 7.15 28,458 Band 29 54,031.723 7.14 385,787 Band 30 39,832.128 7.04 280,418 Band 31 37,335.031 6.99 260,972 Band 32 9,782.402 6.89 67,401 Band 33 43,072.350 6.82 293,753 Band 34 3,829.096 6.78 25,961 Band 41 92.301 11.88 1,097 Band 42 42.110 11.85 499 Band 43 4,085.919 11.83 48,336 Band 44 201.104 10.82 2,176 --------------- --------------- 7,950,731.918 $ 56,083,201 =============== =============== ING VP Balanced Contracts in accumulation period: Band 35 104,648.204 $ 12.27 $ 1,284,033 Band 37 1,295.517 12.20 15,805 Band 38 136,377.280 11.93 1,626,981 Band 39 14,206.673 11.89 168,917 Band 40 2,054.249 11.87 24,384 --------------- --------------- 258,581.923 $ 3,120,120 =============== ===============
223 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP Growth Contracts in accumulation period: Band 35 22,727.764 $ 9.52 $ 216,368 Band 37 6,223.521 9.42 58,626 Band 38 6,239.109 12.16 75,868 Band 40 457.766 12.10 5,539 --------------- --------------- 35,648.160 $ 356,401 =============== =============== ING VP Index Plus LargeCap Contracts in accumulation period: Band 2 7,786.767 $ 9.90 $ 77,089 Band 4 38,094.410 9.81 373,706 Band 5 65,255.565 9.79 638,852 Band 6 1,371,143.400 9.76 13,382,360 Band 7 1,533,276.234 9.74 14,934,111 Band 8 199,344.360 9.71 1,935,634 Band 9 247,034.304 9.69 2,393,762 Band 10 1,211,621.821 9.67 11,716,383 Band 11 515,076.524 9.66 4,975,639 Band 12 262,573.933 9.64 2,531,213 Band 13 578,842.409 9.62 5,568,464 Band 14 1,851,279.768 9.59 17,753,773 Band 15 133,730.995 9.57 1,279,806 Band 16 48,195.239 9.54 459,783 Band 17 625,325.256 9.52 5,953,096 Band 18 37,817.115 9.51 359,641 Band 19 193,073.793 9.47 1,828,409 Band 20 1,130,195.541 9.61 10,861,179 Band 21 139,303.442 9.56 1,331,741 Band 26 387,734.905 9.92 3,846,330 Band 27 144,952.480 9.81 1,421,984 Band 28 59,862.415 9.76 584,257 Band 29 676,883.816 9.74 6,592,848 Band 30 224,148.332 9.64 2,160,790 Band 31 103,512.469 9.59 992,685 Band 32 100,000.760 9.49 949,007 Band 33 53,703.324 9.42 505,885 Band 34 131,467.175 9.38 1,233,162 Band 35 642,836.198 9.99 6,421,934 Band 36 31,189.292 9.92 309,398 Band 37 7,794.976 9.86 76,858 Band 38 168,368.017 12.53 2,109,651 Band 39 56,191.126 12.50 702,389
224 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP Index Plus LargeCap (continued) Band 40 4,710.619 $ 12.47 $ 58,741 Band 41 61,886.041 11.91 737,063 Band 42 22,751.151 11.88 270,284 Band 43 64,473.647 11.85 764,013 Band 44 4,021.890 10.80 43,436 Band 45 3,141.509 10.71 33,646 --------------- --------------- 13,138,601.018 $ 128,169,002 =============== =============== ING VP Index Plus MidCap Contracts in accumulation period: Band 2 2,708.774 $ 11.30 $ 30,609 Band 4 49,121.006 12.70 623,837 Band 5 2,095.560 12.83 26,886 Band 6 375,736.732 11.26 4,230,796 Band 7 505,196.440 12.76 6,446,307 Band 8 66,747.574 11.25 750,910 Band 9 364,096.086 12.69 4,620,379 Band 10 505,877.938 10.92 5,524,187 Band 11 179,041.570 11.24 2,012,427 Band 12 43,029.818 11.24 483,655 Band 13 175,614.007 12.60 2,212,736 Band 14 568,586.854 11.23 6,385,230 Band 15 101,159.868 12.54 1,268,545 Band 16 4,408.427 11.21 49,418 Band 17 270,064.245 11.21 3,027,420 Band 18 873.100 11.21 9,787 Band 19 39,448.638 10.88 429,201 Band 20 317,697.735 10.91 3,466,082 Band 21 103,058.208 10.90 1,123,334 Band 26 493,601.103 12.98 6,406,942 Band 27 173,116.026 12.85 2,224,541 Band 28 61,373.856 12.78 784,358 Band 29 585,693.434 12.76 7,473,448 Band 30 330,456.318 12.62 4,170,359 Band 31 202,121.320 12.56 2,538,644 Band 32 130,817.373 12.43 1,626,060 Band 33 89,850.901 12.34 1,108,760 Band 34 104,905.092 12.28 1,288,235 Band 35 264,295.751 13.08 3,456,988 Band 36 23,851.238 12.99 309,828 Band 37 2,519.502 12.92 32,552 Band 38 164,865.467 13.68 2,255,360
225 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP Index Plus MidCap (continued) Band 39 38,504.148 $ 13.64 $ 525,197 Band 40 7,578.260 13.61 103,140 Band 41 56,825.676 12.61 716,572 Band 42 27,016.658 12.58 339,870 Band 43 69,953.923 12.55 877,922 Band 44 21,730.405 11.18 242,946 Band 45 8,639.768 10.84 93,655 --------------- --------------- 6,532,278.799 $ 79,297,123 =============== =============== ING VP Index Plus SmallCap Contracts in accumulation period: Band 2 2,899.345 $ 11.75 $ 34,067 Band 4 40,907.271 13.29 543,658 Band 5 5,017.853 13.90 69,748 Band 6 383,140.794 11.72 4,490,410 Band 7 469,484.619 13.83 6,492,972 Band 8 53,653.928 11.71 628,288 Band 9 318,576.193 13.76 4,383,608 Band 10 456,418.139 11.33 5,171,218 Band 11 155,689.049 11.70 1,821,562 Band 12 75,279.622 11.69 880,019 Band 13 166,879.857 13.66 2,279,579 Band 14 548,620.645 11.68 6,407,889 Band 15 74,859.876 13.59 1,017,346 Band 16 3,363.653 11.67 39,254 Band 17 249,476.472 11.66 2,908,896 Band 18 1,503.257 11.66 17,528 Band 19 64,254.116 11.28 724,786 Band 20 249,953.105 11.31 2,826,970 Band 21 86,379.764 11.30 976,091 Band 26 331,876.618 14.07 4,669,504 Band 27 143,510.449 13.93 1,999,101 Band 28 40,990.669 13.85 567,721 Band 29 423,391.258 13.83 5,855,501 Band 30 228,945.869 13.68 3,131,979 Band 31 162,715.764 13.61 2,214,562 Band 32 103,577.196 13.47 1,395,185 Band 33 48,421.537 13.38 647,880 Band 34 82,242.920 13.31 1,094,653 Band 35 125,338.092 14.17 1,776,041 Band 36 4,176.731 14.07 58,767 Band 38 99,631.308 14.45 1,439,672
226 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP Index Plus SmallCap (continued) Band 39 12,943.024 $ 14.41 $ 186,509 Band 40 2,335.726 14.38 33,588 Band 41 41,113.424 13.20 542,697 Band 42 31,010.279 13.17 408,405 Band 43 84,198.731 13.14 1,106,371 Band 44 10,634.319 11.64 123,783 Band 45 2,463.243 11.23 27,662 --------------- --------------- 5,385,874.715 $ 68,993,470 =============== =============== ING VP Intermediate Bond Contracts in accumulation period: Band 1 7,616.086 $ 11.66 $ 88,804 Band 2 20,395.857 11.60 236,592 Band 3 418.174 11.49 4,805 Band 4 42,407.796 11.52 488,538 Band 5 59,484.159 11.51 684,663 Band 6 2,682,542.548 11.48 30,795,588 Band 7 2,689,507.498 11.46 30,821,756 Band 8 433,078.866 11.43 4,950,091 Band 9 141,536.176 11.41 1,614,928 Band 10 1,881,639.850 11.40 21,450,694 Band 11 1,363,685.459 11.38 15,518,741 Band 12 447,750.715 11.37 5,090,926 Band 13 1,363,165.720 11.35 15,471,931 Band 14 2,895,222.850 11.32 32,773,923 Band 15 9,453.317 11.31 106,917 Band 16 101,188.396 11.28 1,141,405 Band 17 1,029,703.214 11.26 11,594,458 Band 18 67,181.381 11.24 755,119 Band 19 235,506.688 11.21 2,640,030 Band 20 1,993,254.987 11.34 22,603,512 Band 21 147,886.063 11.29 1,669,634 Band 25 25,974.399 11.63 302,082 Band 35 102,678.831 11.68 1,199,289 Band 36 3,636.076 11.62 42,251 Band 37 925.391 11.57 10,707 Band 38 95,050.369 10.72 1,018,940 Band 39 25,257.196 10.69 269,999 Band 40 5,301.740 10.67 56,570 --------------- --------------- 17,871,449.802 $ 203,402,893 =============== ===============
227 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP International Equity Contracts in accumulation period: Band 35 13,911.862 $ 11.04 $ 153,587 Band 38 5,648.197 14.11 79,696 Band 40 2,248.733 14.04 31,572 --------------- --------------- 21,808.792 $ 264,855 =============== =============== ING VP Small Company Contracts in accumulation period: Band 35 48,701.922 $ 11.70 $ 569,812 Band 36 543.429 11.63 6,320 Band 37 2,963.670 11.58 34,319 Band 38 28,244.726 13.37 377,632 Band 39 17,640.950 13.34 235,330 Band 40 3,280.891 13.31 43,669 --------------- --------------- 101,375.588 $ 1,267,082 =============== =============== ING VP Value Opportunity Contracts in accumulation period: Band 4 540.541 $ 12.01 $ 6,492 Band 7 5,653.294 8.70 49,184 Band 9 19,827.319 8.66 171,705 Band 10 6,813.153 10.69 72,833 Band 13 6,720.251 8.60 57,794 Band 15 3,668.579 8.55 31,366 Band 21 15,343.433 10.66 163,561 Band 26 65,793.156 8.86 582,927 Band 27 28,715.517 8.76 251,548 Band 28 10,007.296 8.72 87,264 Band 29 66,656.892 8.70 579,915 Band 30 51,343.353 8.61 442,066 Band 31 15,744.314 8.57 134,929 Band 32 20,788.974 8.48 176,291 Band 33 1,437.234 8.42 12,102 Band 34 22,271.567 8.38 186,636 Band 35 28,400.276 8.92 253,330 Band 36 2,505.645 8.86 22,200 Band 38 2,015.309 12.48 25,151 Band 39 2,690.138 12.45 33,492 Band 41 1,789.757 11.93 21,352 Band 42 864.948 11.90 10,293 Band 43 8,953.340 11.88 106,366 --------------- --------------- 388,544.286 $ 3,478,797 =============== ===============
228 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP Convertible Contracts in accumulation period: Band 4 3,787.338 $ 11.99 $ 45,410 Band 7 8,762.613 12.80 112,161 Band 9 64,204.840 12.73 817,328 Band 10 10,202.552 10.38 105,902 Band 13 9,056.027 12.64 114,468 Band 15 27,936.723 12.57 351,165 Band 19 12,560.722 10.33 129,752 Band 20 2,016.663 10.36 20,893 Band 21 16,190.269 10.35 167,569 Band 26 152,943.310 13.02 1,991,322 Band 27 40,872.494 12.89 526,846 Band 28 5,659.572 12.82 72,556 Band 29 122,069.523 12.80 1,562,490 Band 30 68,186.895 12.66 863,246 Band 31 40,567.187 12.60 511,147 Band 32 25,079.547 12.47 312,742 Band 33 8,618.358 12.38 106,695 Band 34 12,671.121 12.31 155,981 Band 41 23,880.253 11.91 284,414 Band 42 5,926.662 11.88 70,409 Band 43 19,240.262 11.85 227,997 Band 44 3,445.722 10.47 36,077 Band 45 2,182.072 10.40 22,694 --------------- --------------- 686,060.725 $ 8,609,264 =============== ===============
229 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP Financial Services Contracts in accumulation period: Band 4 4,466.761 $ 11.11 $ 49,626 Band 5 416.972 11.10 4,628 Band 6 175,177.743 11.10 1,944,473 Band 7 180,636.025 11.09 2,003,254 Band 8 31,069.778 11.09 344,564 Band 9 10,633.791 11.08 117,822 Band 10 120,278.580 11.08 1,332,687 Band 11 44,624.665 11.07 493,995 Band 12 8,357.218 11.07 92,514 Band 13 30,346.306 11.07 335,934 Band 14 208,766.965 11.06 2,308,963 Band 15 7,728.669 11.06 85,479 Band 16 2,815.100 11.05 31,107 Band 17 169,517.194 11.04 1,871,470 Band 18 366.411 11.04 4,045 Band 19 10,939.035 11.03 120,658 Band 20 191,993.554 11.06 2,123,449 Band 21 10,097.523 11.05 111,578 Band 26 32,541.006 11.13 362,181 Band 27 4,729.872 11.11 52,549 Band 29 15,933.595 11.09 176,704 Band 30 873.777 11.07 9,673 Band 31 3,983.913 11.06 44,062 Band 32 2,413.510 11.04 26,645 Band 34 2,899.557 11.01 31,924 Band 41 8,345.543 11.07 92,385 Band 42 1,764.565 11.06 19,516 Band 43 3,164.130 11.04 34,932 Band 45 2,321.868 11.00 25,541 --------------- --------------- 1,287,203.626 $ 14,252,358 =============== =============== ING VP Growth and Income Contracts in accumulation period: Band 35 93,559.568 $ 13.02 $ 1,218,146 Band 38 36,510.968 12.37 451,641 Band 39 8,635.443 12.33 106,475 --------------- --------------- 138,705.979 $ 1,776,262 =============== ===============
230 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP International Value Contracts in accumulation period: Band 35 51,621.466 $ 12.67 $ 654,044 Band 36 916.850 12.59 11,543 Band 37 567.531 12.53 7,111 Band 38 33,591.254 13.97 469,270 Band 39 7,334.377 13.93 102,168 --------------- --------------- 94,031.478 $ 1,244,136 =============== =============== ING VP LargeCap Growth Contracts in accumulation period: Band 9 5,004.215 $ 8.93 $ 44,688 Band 13 232.117 8.87 2,059 Band 15 3,599.232 8.82 31,745 Band 26 68,463.089 9.14 625,753 Band 27 34,706.681 9.04 313,748 Band 28 5,953.029 8.99 53,518 Band 29 42,156.600 8.98 378,566 Band 30 25,135.441 8.88 223,203 Band 31 12,606.893 8.84 111,445 Band 32 5,838.840 8.75 51,090 Band 33 2,315.040 8.68 20,095 Band 34 2,004.162 8.64 17,316 --------------- --------------- 208,015.339 $ 1,873,226 =============== ===============
231 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP MagnaCap Contracts in accumulation period: Band 2 6,040.677 $ 9.98 $ 60,286 Band 4 13,033.246 9.89 128,899 Band 5 18,145.650 9.87 179,098 Band 6 321,905.016 9.83 3,164,326 Band 7 623,004.059 9.81 6,111,670 Band 8 42,055.951 9.78 411,307 Band 9 60,892.791 9.76 594,314 Band 10 247,084.713 9.74 2,406,605 Band 11 207,095.116 9.72 2,012,965 Band 12 144,070.363 9.70 1,397,483 Band 13 285,036.264 9.69 2,762,001 Band 14 346,679.201 9.65 3,345,454 Band 15 37,653.646 9.63 362,605 Band 16 12,870.205 9.60 123,554 Band 17 68,675.746 9.58 657,914 Band 18 8,391.349 9.56 80,221 Band 19 16,921.356 9.52 161,091 Band 20 211,118.563 9.67 2,041,517 Band 21 27,915.602 9.61 268,269 Band 25 3,551.217 10.02 35,583 Band 26 62,067.541 10.00 620,675 Band 27 31,140.941 9.89 307,984 Band 28 18,823.141 9.83 185,031 Band 29 92,910.464 9.81 911,452 Band 30 34,150.547 9.70 331,260 Band 31 28,921.692 9.65 279,094 Band 32 6,560.675 9.55 62,654 Band 33 8,473.970 9.47 80,248 Band 34 16,821.399 9.42 158,458 Band 41 1,445.727 12.00 17,349 Band 43 32,223.049 11.94 384,743 --------------- --------------- 3,035,679.877 $ 29,644,110 =============== ===============
232 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP MidCap Opportunities Contracts in accumulation period: Band 4 973.337 $ 7.56 $ 7,358 Band 5 19,634.671 7.54 148,045 Band 6 440,237.937 7.52 3,310,589 Band 7 725,386.434 7.50 5,440,398 Band 8 72,972.354 7.47 545,103 Band 9 28,054.616 7.46 209,287 Band 10 316,588.794 7.45 2,358,587 Band 11 252,835.784 7.43 1,878,570 Band 12 183,673.763 7.42 1,362,859 Band 13 348,463.186 7.41 2,582,112 Band 14 814,032.690 7.38 6,007,561 Band 15 12,026.185 7.36 88,513 Band 16 18,064.694 7.34 132,595 Band 17 215,454.229 7.32 1,577,125 Band 18 14,443.852 7.31 105,585 Band 19 98,330.442 7.28 715,846 Band 20 629,730.612 7.39 4,653,709 Band 21 45,751.581 7.35 336,274 Band 25 3,631.998 7.66 27,821 Band 35 33,259.748 10.83 360,203 Band 38 8,666.277 12.83 111,188 Band 39 31.624 12.79 404 --------------- --------------- 4,282,244.808 $ 31,959,732 =============== ===============
233 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ING VP SmallCap Opportunities Contracts in accumulation period: Band 2 7,342.602 $ 6.94 $ 50,958 Band 4 13,540.404 6.87 93,023 Band 5 158,167.435 6.86 1,085,029 Band 6 2,126,799.191 6.84 14,547,306 Band 7 2,646,720.985 6.82 18,050,637 Band 8 208,032.524 6.80 1,414,621 Band 9 95,912.598 6.78 650,287 Band 10 1,295,969.934 6.77 8,773,716 Band 11 833,896.441 6.76 5,637,140 Band 12 812,723.629 6.75 5,485,884 Band 13 1,460,031.982 6.73 9,826,015 Band 14 2,585,683.808 6.71 17,349,938 Band 15 15,222.049 6.70 101,988 Band 16 62,582.655 6.67 417,426 Band 17 823,489.612 6.66 5,484,441 Band 18 49,838.465 6.65 331,426 Band 19 202,944.981 6.62 1,343,496 Band 20 1,597,804.516 6.72 10,737,246 Band 21 250,032.484 6.68 1,670,217 Band 25 64,153.328 6.96 446,507 Band 35 16,343.881 7.00 114,407 Band 36 93.653 6.95 651 Band 38 7,882.647 13.09 103,184 Band 39 31.487 13.05 411 --------------- --------------- 15,335,241.291 $ 103,715,954 =============== =============== AIM V.I. Capital Appreciation Contracts in accumulation period: Band 35 5,585.073 $ 10.01 $ 55,907 Band 36 743.013 9.95 7,393 Band 38 503.543 12.17 6,128 --------------- --------------- 6,831.629 $ 69,428 =============== =============== AIM V.I. Core Equity Contracts in accumulation period: Band 35 10,953.394 $ 10.97 $ 120,159 Band 36 2,335.453 10.90 25,456 Band 38 1,297.758 12.22 15,859 Band 39 75.206 12.19 917 --------------- --------------- 14,661.811 $ 162,391 =============== ===============
234 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AIM V.I. Dent Demographic Trends Contracts in accumulation period: Band 2 10,162.706 $ 10.71 $ 108,843 Band 4 22,973.689 10.63 244,210 Band 5 57,075.792 10.61 605,574 Band 6 717,785.936 10.58 7,594,175 Band 7 941,561.832 10.56 9,942,893 Band 8 139,751.253 10.52 1,470,183 Band 9 78,789.195 10.51 828,074 Band 10 490,391.424 10.49 5,144,206 Band 11 422,834.921 10.47 4,427,082 Band 12 282,339.196 10.46 2,953,268 Band 13 612,122.824 10.44 6,390,562 Band 14 1,218,497.883 10.40 12,672,378 Band 15 19,264.172 10.39 200,155 Band 16 33,597.714 10.35 347,736 Band 17 300,296.701 10.34 3,105,068 Band 18 24,907.415 10.32 257,045 Band 19 44,815.681 10.29 461,153 Band 20 684,467.854 10.42 7,132,155 Band 21 66,975.911 10.37 694,540 Band 25 2,444.589 10.75 26,279 Band 26 44,165.553 10.73 473,896 Band 27 12,793.578 10.63 135,996 Band 28 11,244.623 10.58 118,968 Band 29 60,190.493 10.56 635,612 Band 30 25,017.237 10.46 261,680 Band 31 32,286.717 10.40 335,782 Band 32 23,665.600 10.31 243,992 Band 33 7,666.483 10.24 78,505 Band 34 8,353.851 10.19 85,126 Band 41 14,632.509 11.37 166,372 Band 42 566.097 11.34 6,420 Band 43 6,505.723 11.32 73,645 Band 45 1,098.537 10.44 11,469 --------------- --------------- 6,419,243.689 $ 67,233,042 =============== ===============
235 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AIM V.I. Financial Services Contracts in accumulation period: Band 3 619.483 $ 10.78 $ 6,678 Band 4 4,820.005 10.82 52,152 Band 5 17,124.983 10.80 184,950 Band 6 695,858.885 10.76 7,487,442 Band 7 1,059,946.352 10.74 11,383,824 Band 8 120,129.136 10.70 1,285,382 Band 9 41,949.087 10.68 448,016 Band 10 348,574.385 10.66 3,715,803 Band 11 303,402.908 10.65 3,231,241 Band 12 269,441.095 10.63 2,864,159 Band 13 520,433.672 10.61 5,521,801 Band 14 801,797.727 10.57 8,475,002 Band 15 10,434.645 10.55 110,085 Band 16 62,971.718 10.51 661,833 Band 17 159,550.854 10.50 1,675,284 Band 18 8,510.170 10.48 89,187 Band 19 46,285.875 10.44 483,225 Band 20 437,875.720 10.59 4,637,104 Band 21 81,872.995 10.53 862,123 Band 25 5,093.424 10.95 55,773 Band 26 38,885.106 10.93 425,014 Band 27 14,735.232 10.81 159,288 Band 28 7,457.414 10.76 80,242 Band 29 67,063.163 10.74 720,258 Band 30 30,285.004 10.63 321,930 Band 31 26,844.328 10.57 283,745 Band 32 1,669.108 10.46 17,459 Band 33 5,885.400 10.39 61,149 Band 34 10,363.703 10.33 107,057 Band 41 1,308.873 11.92 15,602 Band 42 1,073.469 11.88 12,753 Band 43 7,165.440 11.86 84,982 --------------- --------------- 5,209,429.359 $ 55,520,543 =============== ===============
236 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AIM V.I. Growth Contracts in accumulation period: Band 4 1,962.417 $ 11.55 $ 22,666 Band 7 3,610.797 9.63 34,772 Band 9 20,955.969 9.58 200,758 Band 10 3,049.949 10.33 31,506 Band 13 14,202.575 9.52 135,209 Band 15 6,994.423 9.47 66,237 Band 21 13,817.149 10.30 142,317 Band 26 59,203.430 9.79 579,602 Band 27 11,599.942 9.69 112,403 Band 28 8,656.596 9.65 83,536 Band 29 109,514.095 9.63 1,054,621 Band 30 36,356.650 9.54 346,842 Band 31 66,838.704 9.49 634,299 Band 32 20,169.470 9.40 189,593 Band 33 5,753.456 9.34 53,737 Band 34 10,832.868 9.29 100,637 Band 41 2,795.091 11.47 32,060 Band 42 5,469.707 11.44 62,573 Band 43 5,216.246 11.42 59,570 Band 45 3,067.936 10.49 32,183 --------------- --------------- 410,067.470 $ 3,975,121 =============== ===============
237 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AIM V.I. Health Sciences Contracts in accumulation period: Band 1 9,070.243 $ 10.44 $ 94,693 Band 2 564.584 10.37 5,855 Band 3 915.034 10.24 9,370 Band 4 11,064.021 10.28 113,738 Band 5 49,122.671 10.26 503,999 Band 6 1,099,151.139 10.23 11,244,316 Band 7 1,641,910.254 10.21 16,763,904 Band 8 164,248.033 10.17 1,670,402 Band 9 71,680.192 10.15 727,554 Band 10 573,076.712 10.14 5,810,998 Band 11 680,479.723 10.12 6,886,455 Band 12 459,233.112 10.10 4,638,254 Band 13 759,943.677 10.08 7,660,232 Band 14 1,459,016.499 10.05 14,663,116 Band 15 15,219.977 10.03 152,656 Band 16 63,740.706 9.99 636,770 Band 17 356,834.594 9.98 3,561,209 Band 18 53,173.007 9.96 529,603 Band 19 93,576.442 9.92 928,278 Band 20 930,010.297 10.06 9,355,904 Band 21 151,205.199 10.01 1,513,564 Band 25 11,414.860 10.41 118,829 Band 26 94,195.520 10.39 978,691 Band 27 28,761.554 10.28 295,669 Band 28 12,204.053 10.22 124,725 Band 29 124,496.425 10.21 1,271,109 Band 30 52,189.083 10.10 527,110 Band 31 62,266.545 10.05 625,779 Band 32 24,126.212 9.94 239,815 Band 33 11,022.671 9.87 108,794 Band 34 13,854.699 9.82 136,053 Band 41 2,158.835 11.80 25,474 Band 42 1,087.885 11.77 12,804 Band 43 9,309.261 11.75 109,384 --------------- --------------- 9,090,323.719 $ 92,045,106 =============== ===============
238 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AIM V.I. Leisure Contracts in accumulation period: Band 2 884.717 $ 12.10 $ 10,705 Band 4 8,974.055 12.02 107,868 Band 5 18,023.681 12.00 216,284 Band 6 508,825.374 11.97 6,090,640 Band 7 794,674.933 11.95 9,496,365 Band 8 78,941.069 11.92 940,978 Band 9 36,824.893 11.91 438,584 Band 10 542,919.640 11.89 6,455,315 Band 11 237,032.947 11.87 2,813,581 Band 12 223,048.340 11.86 2,645,353 Band 13 395,526.133 11.84 4,683,029 Band 14 658,412.202 11.81 7,775,848 Band 15 3,317.952 11.79 39,119 Band 16 23,924.181 11.76 281,348 Band 17 269,293.877 11.74 3,161,510 Band 18 4,024.282 11.73 47,205 Band 19 61,071.085 11.70 714,532 Band 20 480,558.886 11.82 5,680,206 Band 21 100,657.004 11.78 1,185,740 Band 26 13,783.312 12.12 167,054 Band 27 28,682.514 12.02 344,764 Band 28 1,401.907 11.97 16,781 Band 29 46,251.501 11.95 552,705 Band 30 27,505.448 11.86 326,215 Band 31 10,046.311 11.81 118,647 Band 32 25,675.515 11.72 300,917 Band 33 83,076.593 11.65 967,842 Band 34 6,999.216 11.60 81,191 Band 41 4,933.434 12.18 60,089 Band 42 2,327.231 12.14 28,253 Band 43 8,659.874 12.12 104,958 Band 44 6,319.281 10.93 69,070 Band 45 593.488 10.86 6,445 --------------- --------------- 4,713,190.876 $ 55,929,141 =============== =============== AIM V.I. Premier Equity Contracts in accumulation period: Band 35 5,445.381 $ 8.87 $ 48,301 Band 36 5,603.075 8.81 49,363 Band 38 2,572.545 11.82 30,407 Band 39 2,471.844 11.79 29,143 --------------- --------------- 16,092.845 $ 157,214 =============== ===============
239 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AIM V.I. Utilities Contracts in accumulation period: Band 1 30.567 9.18 281 Band 2 5,659.933 9.12 51,619 Band 4 16,378.397 9.04 148,061 Band 5 25,070.459 9.02 226,136 Band 6 1,127,977.884 8.99 10,140,521 Band 7 1,418,477.873 8.97 12,723,747 Band 8 209,867.988 8.94 1,876,220 Band 9 146,547.950 8.93 1,308,673 Band 10 650,886.919 8.91 5,799,402 Band 11 726,082.525 8.89 6,454,874 Band 12 322,008.522 8.88 2,859,436 Band 13 643,948.674 8.86 5,705,385 Band 14 1,539,265.811 8.83 13,591,717 Band 15 27,936.843 8.82 246,403 Band 16 23,831.161 8.78 209,238 Band 17 444,965.963 8.77 3,902,352 Band 18 27,761.344 8.75 242,912 Band 19 100,375.589 8.72 875,275 Band 20 821,100.692 8.85 7,266,741 Band 21 115,161.034 8.80 1,013,417 Band 25 1,196.805 9.15 10,951 Band 26 32,096.778 9.13 293,044 Band 27 33,506.650 9.04 302,900 Band 28 3,853.026 8.99 34,639 Band 29 133,221.115 8.97 1,194,993 Band 30 47,577.341 8.88 422,487 Band 31 14,941.889 8.83 131,937 Band 32 11,862.044 8.74 103,674 Band 33 4,828.554 8.68 41,912 Band 34 9,075.169 8.63 78,319 Band 41 2,976.034 13.44 39,998 Band 42 2,678.428 13.41 35,918 Band 43 12,865.073 13.38 172,135 Band 45 4,826.668 12.04 58,113 --------------- --------------- 8,708,841.702 $ 77,563,430 =============== ===============
240 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AllianceBernstein Growth and Income Contracts in accumulation period: Band 4 25,501.171 $ 12.13 $ 309,329 Band 7 33,576.350 10.49 352,216 Band 9 83,003.871 10.44 866,560 Band 10 17,333.143 10.63 184,251 Band 13 30,378.920 10.36 314,726 Band 15 54,222.235 10.31 559,031 Band 19 5,451.890 10.59 57,736 Band 20 4,864.029 10.62 51,656 Band 21 12,644.782 10.61 134,161 Band 26 193,064.409 10.68 2,061,928 Band 27 130,105.275 10.57 1,375,213 Band 28 57,021.948 10.51 599,301 Band 29 323,025.626 10.49 3,388,539 Band 30 218,498.440 10.38 2,268,014 Band 31 167,058.113 10.33 1,725,710 Band 32 70,550.043 10.22 721,021 Band 33 66,315.112 10.15 673,098 Band 34 71,760.960 10.10 724,786 Band 41 8,311.956 12.04 100,076 Band 42 13,775.350 12.01 165,442 Band 43 18,443.717 11.99 221,140 Band 44 9,273.669 10.72 99,414 Band 45 2,316.561 10.65 24,671 --------------- --------------- 1,616,497.570 $ 16,978,019 =============== ===============
241 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AllianceBernstein Premier Growth Contracts in accumulation period: Band 4 14,749.577 $ 11.32 $ 166,965 Band 7 1,784.809 8.46 15,099 Band 9 70,941.832 8.41 596,621 Band 10 5,712.434 10.50 59,981 Band 13 18,556.739 8.36 155,134 Band 15 6,423.565 8.31 53,380 Band 20 748.319 10.48 7,842 Band 21 4,109.482 10.47 43,026 Band 26 58,773.463 8.61 506,040 Band 27 80,314.475 8.52 684,279 Band 28 11,570.040 8.47 97,998 Band 29 76,646.434 8.46 648,429 Band 30 85,750.730 8.37 717,734 Band 31 89,806.676 8.33 748,090 Band 32 12,432.666 8.24 102,445 Band 33 19,784.911 8.18 161,841 Band 34 4,488.518 8.14 36,537 Band 43 8,360.309 11.19 93,552 --------------- --------------- 570,954.979 $ 4,894,993 =============== ===============
242 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- AllianceBernstein Value Contracts in accumulation period: Band 4 15,063.485 $ 12.55 $ 189,047 Band 7 1,389.164 12.16 16,892 Band 9 70,319.441 12.10 850,865 Band 10 14,167.882 10.89 154,288 Band 13 16,664.981 12.01 200,146 Band 15 35,490.389 11.95 424,110 Band 19 2,057.105 10.84 22,299 Band 20 8,614.050 10.87 93,635 Band 21 15,149.751 10.86 164,526 Band 26 90,160.668 12.38 1,116,189 Band 27 72,084.497 12.25 883,035 Band 28 28,724.843 12.18 349,869 Band 29 157,586.912 12.16 1,916,257 Band 30 141,655.023 12.03 1,704,110 Band 31 91,561.698 11.97 1,095,994 Band 32 22,670.669 11.85 268,647 Band 33 13,584.871 11.76 159,758 Band 34 26,966.069 11.70 315,503 Band 41 12,479.526 12.47 155,620 Band 42 6,142.815 12.44 76,417 Band 43 13,921.106 12.41 172,761 Band 44 3,341.454 11.07 36,990 Band 45 4,001.543 10.96 43,857 --------------- --------------- 863,797.942 $ 10,410,815 =============== ===============
243 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Fidelity(R) VIP Equity-Income Contracts in accumulation period: Band 1 1,528.461 $ 11.25 $ 17,195 Band 2 15,067.301 11.17 168,302 Band 3 987.418 11.03 10,891 Band 4 76,016.413 11.07 841,502 Band 5 119,478.387 11.05 1,320,236 Band 6 3,060,131.372 11.02 33,722,648 Band 7 2,972,863.328 11.00 32,701,497 Band 8 629,373.026 10.96 6,897,928 Band 9 336,554.713 10.94 3,681,909 Band 10 1,820,926.694 10.92 19,884,519 Band 11 1,224,610.706 10.90 13,348,257 Band 12 835,539.236 10.88 9,090,667 Band 13 1,417,019.493 10.86 15,388,832 Band 14 2,910,403.211 10.82 31,490,563 Band 15 96,308.097 10.80 1,040,127 Band 16 69,896.896 10.77 752,790 Band 17 1,195,423.294 10.75 12,850,800 Band 18 112,419.587 10.73 1,206,262 Band 19 295,104.423 10.69 3,154,666 Band 20 2,147,646.306 10.84 23,280,486 Band 21 308,445.869 10.79 3,328,131 Band 25 18,570.853 11.21 208,179 Band 26 510,445.434 11.19 5,711,884 Band 27 198,957.908 11.07 2,202,464 Band 28 38,781.710 11.02 427,374 Band 29 545,785.995 11.00 6,003,646 Band 30 292,192.996 10.88 3,179,060 Band 31 124,303.874 10.82 1,344,968 Band 32 72,342.117 10.71 774,784 Band 33 98,444.567 10.64 1,047,450 Band 34 104,819.125 10.58 1,108,986 Band 35 351,281.781 11.27 3,958,946 Band 36 9,069.897 11.19 101,492 Band 37 3,418.455 11.13 38,047 Band 38 197,015.046 12.92 2,545,434 Band 39 19,566.624 12.88 252,018 Band 40 7,411.569 12.86 95,313 Band 41 35,970.476 12.27 441,358 Band 42 29,199.394 12.24 357,401 Band 43 93,807.483 12.21 1,145,389 Band 44 18,476.521 10.88 201,025 Band 45 11,428.568 10.80 123,429 --------------- --------------- 22,427,034.624 $ 245,446,855 =============== ===============
244 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Fidelity(R) VIP Growth Contracts in accumulation period: Band 2 10,806.075 $ 8.59 $ 92,824 Band 3 5,587.252 8.48 47,380 Band 4 47,080.354 8.51 400,654 Band 5 96,818.878 8.50 822,960 Band 6 4,050,134.323 8.47 34,304,638 Band 7 4,416,840.004 8.45 37,322,298 Band 8 491,975.585 8.42 4,142,434 Band 9 260,764.549 8.41 2,193,030 Band 10 2,221,605.539 8.39 18,639,270 Band 11 1,884,667.228 8.38 15,793,511 Band 12 1,042,006.110 8.36 8,711,171 Band 13 1,896,433.439 8.35 15,835,219 Band 14 4,745,850.244 8.32 39,485,474 Band 15 86,337.461 8.31 717,464 Band 16 108,107.525 8.28 895,130 Band 17 1,675,290.862 8.26 13,837,903 Band 18 275,466.355 8.25 2,272,597 Band 19 311,084.963 8.22 2,557,118 Band 20 3,013,490.062 8.33 25,102,372 Band 21 515,707.536 8.29 4,275,215 Band 25 39,927.115 8.62 344,172 Band 26 314,401.913 8.60 2,703,856 Band 27 108,971.878 8.51 927,351 Band 28 25,357.340 8.47 214,777 Band 29 279,038.443 8.45 2,357,875 Band 30 127,984.790 8.36 1,069,953 Band 31 126,309.252 8.32 1,050,893 Band 32 54,669.377 8.23 449,929 Band 33 46,791.154 8.18 382,752 Band 34 33,707.831 8.13 274,045 Band 35 175,047.959 8.66 1,515,915 Band 36 12,494.834 8.60 107,456 Band 37 1,991.960 8.56 17,051 Band 38 57,959.786 11.89 689,142 Band 39 5,851.518 11.86 69,399 Band 40 2,312.339 11.83 27,355 Band 41 9,787.306 10.93 106,975 Band 42 11,028.209 10.90 120,207 Band 43 8,558.087 10.88 93,112 Band 44 246.865 10.25 2,530 Band 45 2,308.385 10.08 23,269 --------------- --------------- 28,600,800.685 $ 239,996,676 =============== ===============
245 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Fidelity(R) VIP Contrafund(R) Contracts in accumulation period: Band 4 48,608.497 $ 12.52 $ 608,578 Band 7 33,074.020 12.39 409,787 Band 9 191,719.430 12.33 2,363,901 Band 10 76,509.195 10.79 825,534 Band 13 59,723.765 12.24 731,019 Band 15 115,041.646 12.18 1,401,207 Band 19 11,500.101 10.75 123,626 Band 20 30,449.624 10.78 328,247 Band 21 57,359.014 10.77 617,757 Band 26 486,502.168 12.61 6,134,792 Band 27 283,145.391 12.48 3,533,654 Band 28 52,997.658 12.42 658,231 Band 29 681,761.556 12.39 8,447,026 Band 30 277,498.722 12.26 3,402,134 Band 31 117,473.124 12.20 1,433,172 Band 32 114,317.280 12.07 1,379,810 Band 33 91,822.257 11.99 1,100,949 Band 34 81,708.822 11.93 974,786 Band 35 337,247.508 12.70 4,283,043 Band 36 65,163.844 12.61 821,716 Band 37 8,167.259 12.55 102,499 Band 38 271,255.791 13.24 3,591,427 Band 39 102,926.103 13.21 1,359,654 Band 40 10,651.780 13.18 140,390 Band 41 42,241.112 12.44 525,479 Band 42 23,432.966 12.40 290,569 Band 43 88,106.396 12.38 1,090,757 Band 44 7,402.083 11.02 81,571 Band 45 9,293.456 10.92 101,485 --------------- --------------- 3,777,100.568 $ 46,862,800 =============== =============== Fidelity(R) VIP Overseas Contracts in accumulation period: Band 35 7,177.204 $ 12.59 $ 90,361 Band 38 24,755.965 14.14 350,049 Band 39 475.977 14.10 6,711 Band 40 776.103 14.07 10,920 --------------- --------------- 33,185.249 $ 458,041 =============== ===============
246 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Franklin Small Cap Value Securities Contracts in accumulation period: Band 35 19,787.567 $ 14.48 $ 286,524 Band 36 10,155.763 14.39 146,141 Band 38 23,538.897 14.94 351,671 Band 39 11,429.360 14.89 170,183 Band 40 4,241.555 14.86 63,030 --------------- --------------- 69,153.142 $ 1,017,549 =============== =============== ING Goldman Sachs(R) Capital Growth Portfolio - Service Class Contracts in accumulation period: Band 38 640.122 12.15 7,777 Band 39 74.880 12.12 908 --------------- --------------- 715.002 $ 8,685 =============== =============== Greenwich Appreciation Contracts in accumulation period: Band 22 401.455 $ 18.53 $ 7,439 Band 23 33,825.718 18.29 618,672 --------------- --------------- 34,227.173 $ 626,111 =============== =============== Janus Aspen Series Balanced Contracts in accumulation period: Band 35 318,053.108 $ 11.22 $ 3,568,556 Band 36 28,106.589 11.15 313,388 Band 37 5,064.402 11.10 56,215 Band 38 20,315.636 11.69 237,490 Band 39 9,492.595 11.66 110,684 --------------- --------------- 381,032.330 $ 4,286,333 =============== =============== Janus Aspen Series Flexible Income Contracts in accumulation period: Band 35 102,440.060 $ 11.92 $ 1,221,086 Band 36 6,107.852 11.85 72,378 Band 37 1,105.475 11.80 13,045 Band 38 15,378.187 10.58 162,701 Band 39 28,331.129 10.55 298,893 --------------- --------------- 153,362.703 $ 1,768,103 =============== ===============
247 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Janus Aspen Series Growth Contracts in accumulation period: Band 35 57,611.545 $ 9.70 $ 558,832 Band 36 4,084.784 9.64 39,377 Band 37 2,287.676 9.60 21,962 Band 38 10,964.160 12.03 131,899 --------------- --------------- 74,948.165 $ 752,070 =============== =============== Janus Aspen Series Worldwide Growth Contracts in accumulation period: Band 4 5,057.731 $ 11.55 $ 58,417 Band 7 1,434.651 8.61 12,352 Band 9 14,011.903 8.56 119,942 Band 10 6,574.973 9.87 64,895 Band 13 9,198.190 8.50 78,185 Band 15 12,328.213 8.46 104,297 Band 20 82.956 9.86 818 Band 26 126,381.979 8.76 1,107,106 Band 27 61,912.208 8.67 536,779 Band 28 11,160.416 8.62 96,203 Band 29 146,104.776 8.61 1,257,962 Band 30 65,624.590 8.52 559,122 Band 31 61,837.700 8.47 523,765 Band 32 13,284.064 8.39 111,453 Band 33 19,147.224 8.33 159,496 Band 34 3,298.974 8.28 27,315 Band 35 148,881.126 8.82 1,313,132 Band 36 7,855.447 8.76 68,814 Band 37 4,203.228 8.72 36,652 Band 38 13,050.311 12.00 156,604 Band 39 1,349.660 11.97 16,155 Band 41 405.072 11.47 4,646 Band 42 8,937.203 11.44 102,242 Band 43 17,362.398 11.42 198,279 Band 44 540.332 10.18 5,501 --------------- --------------- 760,025.325 $ 6,720,132 =============== ===============
248 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Colonial Small Cap Value Contracts in accumulation period: Band 4 8,283.406 $ 16.78 $ 138,996 Band 5 23,995.809 16.77 402,410 Band 6 1,913,146.041 16.74 32,026,065 Band 7 2,018,849.007 16.72 33,755,155 Band 8 243,006.265 16.70 4,058,205 Band 9 99,516.161 16.68 1,659,930 Band 10 1,745,035.388 16.67 29,089,740 Band 11 926,654.952 16.65 15,428,805 Band 12 354,307.375 16.64 5,895,675 Band 13 852,061.313 16.63 14,169,780 Band 14 2,732,107.125 16.60 45,352,978 Band 15 23,095.278 16.58 382,920 Band 16 56,490.952 16.55 934,925 Band 17 1,261,074.937 16.54 20,858,179 Band 18 22,984.213 16.53 379,929 Band 19 171,199.290 16.50 2,824,788 Band 20 1,860,639.016 16.61 30,905,214 Band 21 132,789.311 16.57 2,200,319 --------------- --------------- 14,445,235.839 $ 240,464,013 =============== =============== Liberty Asset Allocation Contracts in accumulation period: Band 6 10,741.422 $ 13.00 $ 139,638 Band 7 22,236.424 12.99 288,851 Band 8 3,319.838 12.97 43,058 Band 9 4,723.166 12.96 61,212 Band 11 2,373.900 12.93 30,695 Band 13 2,904.153 12.91 37,493 --------------- --------------- 46,298.903 $ 600,947 =============== =============== Liberty Equity Contracts in accumulation period: Band 6 11,519.023 $ 8.53 $ 98,257 Band 7 39,338.969 8.50 334,381 Band 8 7,351.506 8.46 62,194 Band 9 2,078.645 8.44 17,544 Band 11 3,779.538 8.39 31,710 Band 13 6,169.327 8.35 51,514 Band 14 2,686.453 8.30 22,298 --------------- --------------- 72,923.461 $ 617,898 =============== ===============
249 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Liberty Federal Securities Contracts in accumulation period: Band 6 3,757.956 $ 10.37 $ 38,970 Band 7 2,868.007 10.36 29,713 Band 11 262.794 10.31 2,709 Band 13 1,849.040 10.29 19,027 --------------- --------------- 8,737.797 $ 90,419 =============== =============== Liberty Small Company Growth Contracts in accumulation period: Band 6 1,432.100 $ 16.47 $ 23,587 Band 7 959.327 16.46 15,791 Band 8 1,232.073 16.43 20,243 Band 13 1,317.090 16.36 21,548 --------------- --------------- 4,940.590 $ 81,169 =============== =============== Oppenheimer Global Securities Contracts in accumulation period: Band 35 238,312.065 $ 12.83 $ 3,057,544 Band 36 37,381.396 12.75 476,613 Band 37 6,372.889 12.69 80,872 Band 38 193,010.830 14.76 2,848,840 Band 39 65,622.554 14.72 965,964 Band 40 14,326.387 14.69 210,455 --------------- --------------- 555,026.121 $ 7,640,288 =============== =============== Oppenheimer Strategic Bond Contracts in accumulation period: Band 35 18,985.212 $ 13.35 $ 253,453 Band 36 9,742.666 13.27 129,285 Band 37 1,667.133 13.21 22,023 Band 38 70,026.115 11.72 820,706 Band 39 12,066.571 11.69 141,058 Band 40 11,070.853 11.66 129,086 --------------- --------------- 123,558.550 $ 1,495,611 =============== ===============
250 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- PIMCO Stocks Growth and Income Contracts in accumulation period: Band 1 394.781 $ 11.77 $ 4,647 Band 2 47,181.337 11.61 547,775 Band 3 1,385.354 11.34 15,710 Band 4 108,768.593 11.42 1,242,137 Band 5 122,727.010 11.38 1,396,633 Band 6 2,997,631.553 11.31 33,903,213 Band 7 1,511,542.369 11.27 17,035,083 Band 8 2,200,913.472 11.19 24,628,222 Band 9 330,928.415 11.15 3,689,852 Band 10 582,534.883 11.12 6,477,788 Band 11 3,420,075.623 11.08 37,894,438 Band 12 611,597.127 11.04 6,752,032 Band 13 1,247,179.121 11.00 13,718,970 Band 14 1,461,992.097 10.93 15,979,574 Band 16 9,635.374 10.82 104,255 Band 17 221,709.635 10.78 2,390,030 Band 18 39,747.883 10.75 427,290 Band 19 84,467.964 10.67 901,273 Band 20 228,006.606 10.97 2,501,232 Band 21 118,118.175 10.86 1,282,763 Band 25 14,195.475 11.69 165,945 --------------- --------------- 15,360,732.847 $ 171,058,862 =============== =============== Pioneer Equity-Income VCT Contracts in accumulation period: Band 35 70,738.946 $ 11.58 $ 819,157 Band 36 31,860.062 11.51 366,709 Band 37 4,025.707 11.45 46,094 Band 38 11,728.963 13.04 152,946 Band 39 19,186.894 13.00 249,430 Band 40 1,888.243 12.97 24,491 --------------- --------------- 139,428.815 $ 1,658,827 =============== ===============
251 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Pioneer Fund VCT Contracts in accumulation period: Band 1 1,281.037 $ 10.16 $ 13,015 Band 2 1,034.904 10.09 10,442 Band 4 34,945.360 10.00 349,454 Band 5 88,878.691 9.98 887,009 Band 6 1,243,992.542 9.95 12,377,726 Band 7 1,027,555.279 9.93 10,203,624 Band 8 174,306.247 9.89 1,723,889 Band 9 116,943.120 9.88 1,155,398 Band 10 867,656.905 9.86 8,555,097 Band 11 647,910.253 9.84 6,375,437 Band 12 322,409.264 9.83 3,169,283 Band 13 657,577.489 9.81 6,450,835 Band 14 1,420,531.987 9.77 13,878,598 Band 15 23,753.844 9.76 231,838 Band 16 14,719.375 9.72 143,072 Band 17 499,109.749 9.70 4,841,365 Band 18 21,337.890 9.69 206,764 Band 19 104,204.747 9.65 1,005,576 Band 20 707,187.833 9.79 6,923,369 Band 21 138,923.699 9.74 1,353,117 Band 25 4,146.685 10.12 41,964 Band 26 46,174.669 10.11 466,826 Band 27 33,855.886 10.00 338,559 Band 28 14,036.839 9.95 139,667 Band 29 115,966.002 9.93 1,151,542 Band 30 47,879.942 9.82 470,181 Band 31 27,901.628 9.77 272,599 Band 32 20,350.728 9.67 196,792 Band 33 10,081.165 9.61 96,880 Band 34 6,297.179 9.55 60,138 Band 35 29,765.905 10.18 303,017 Band 37 738.096 10.05 7,418 Band 38 3,577.826 12.55 44,902 Band 39 1,799.059 12.52 22,524 Band 41 1,170.972 11.89 13,923 Band 42 812.646 11.86 9,638 Band 43 2,754.380 11.84 32,612 Band 45 1,078.203 10.84 11,688 --------------- --------------- 8,482,648.025 $ 83,535,778 =============== ===============
252 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Pioneer Mid-Cap Value VCT Contracts in accumulation period: Band 1 822.448 $ 15.49 $ 12,740 Band 2 46,481.239 15.39 715,346 Band 3 2,933.912 15.22 44,654 Band 4 38,868.998 15.27 593,530 Band 5 164,961.057 15.24 2,514,006 Band 6 4,643,364.362 15.20 70,579,138 Band 7 4,908,273.520 15.17 74,458,509 Band 8 781,909.750 15.12 11,822,475 Band 9 282,809.395 15.10 4,270,422 Band 10 3,544,566.945 15.07 53,416,624 Band 11 2,235,419.791 15.05 33,643,068 Band 12 926,346.440 15.03 13,922,987 Band 13 2,059,508.956 15.00 30,892,634 Band 14 5,608,449.177 14.95 83,846,315 Band 15 44,995.898 14.93 671,789 Band 16 120,164.557 14.88 1,788,049 Band 17 2,314,601.806 14.86 34,394,983 Band 18 114,897.330 14.83 1,703,927 Band 19 422,943.137 14.79 6,255,329 Band 20 3,505,677.528 14.98 52,515,049 Band 21 365,162.741 14.91 5,444,576 Band 25 36,861.431 15.44 569,140 Band 35 43,631.486 15.51 676,724 Band 36 9,347.560 15.42 144,139 Band 37 693.814 15.34 10,643 Band 38 44,561.191 14.41 642,127 Band 39 12,284.936 14.37 176,535 Band 40 3,520.932 14.34 50,490 --------------- --------------- 32,284,060.337 $ 485,775,948 =============== ===============
253 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Pioneer Small Company VCT Contracts in accumulation period: Band 4 14,244.669 $ 11.89 $ 169,369 Band 7 2,366.669 10.78 25,513 Band 9 78,162.321 10.72 837,900 Band 10 13,092.740 10.73 140,485 Band 13 13,883.263 10.64 147,718 Band 15 33,516.849 10.59 354,943 Band 19 836.612 10.69 8,943 Band 20 5,967.582 10.72 63,972 Band 21 17,204.709 10.70 184,090 Band 26 94,307.468 10.97 1,034,553 Band 27 58,464.094 10.85 634,335 Band 28 7,289.231 10.79 78,651 Band 29 142,455.480 10.77 1,534,246 Band 30 70,373.382 10.66 750,180 Band 31 83,495.752 10.60 885,055 Band 32 27,080.555 10.50 284,346 Band 33 20,284.501 10.42 211,364 Band 34 41,802.003 10.37 433,487 Band 41 3,580.721 11.81 42,288 Band 42 1,312.826 11.77 15,452 Band 43 7,382.841 11.75 86,748 Band 44 2,346.464 11.00 25,811 Band 45 3,123.675 10.85 33,892 --------------- --------------- 742,574.407 $ 7,983,341 =============== ===============
254 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ProFund VP Bull Contracts in accumulation period: Band 2 10,173.340 $ 8.99 $ 91,458 Band 4 42,850.577 8.91 381,799 Band 5 41,590.135 8.89 369,736 Band 6 1,752,804.824 8.86 15,529,851 Band 7 3,517,625.817 8.84 31,095,812 Band 8 394,139.935 8.81 3,472,373 Band 9 236,228.887 8.79 2,076,452 Band 10 391,752.314 8.78 3,439,585 Band 11 734,907.238 8.76 6,437,787 Band 12 509,666.163 8.74 4,454,482 Band 13 883,577.028 8.73 7,713,627 Band 14 1,928,829.138 8.70 16,780,814 Band 15 3,194.591 8.68 27,729 Band 16 216,953.643 8.65 1,876,649 Band 17 275,212.489 8.63 2,375,084 Band 18 43,357.922 8.61 373,312 Band 19 57,054.709 8.58 489,529 Band 20 730,973.275 8.71 6,366,777 Band 21 83,415.714 8.66 722,380 Band 25 18,946.029 9.03 171,083 Band 26 5,730.785 9.01 51,634 Band 27 1,370.638 8.91 12,212 Band 28 3,754.836 8.86 33,268 Band 29 154,264.901 8.84 1,363,702 Band 30 7,447.454 8.74 65,091 Band 31 11,868.477 8.69 103,137 Band 32 5,142.131 8.60 44,222 Band 33 19,291.155 8.54 164,746 Band 34 3,292.835 8.49 27,956 Band 41 1,197.475 11.71 14,022 Band 43 3,391.380 11.65 39,510 --------------- --------------- 12,090,005.835 $ 106,165,819 =============== ===============
255 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ProFund VP Europe 30 Contracts in accumulation period: Band 2 5,942.747 $ 9.47 $ 56,278 Band 3 2,072.700 9.35 19,380 Band 4 3,994.079 9.38 37,464 Band 5 29,271.612 9.36 273,982 Band 6 525,739.219 9.33 4,905,147 Band 7 744,527.784 9.31 6,931,554 Band 8 148,328.962 9.28 1,376,493 Band 9 77,158.479 9.26 714,488 Band 10 236,068.883 9.24 2,181,276 Band 11 305,285.834 9.23 2,817,788 Band 12 132,396.874 9.21 1,219,375 Band 13 321,502.763 9.19 2,954,610 Band 14 552,592.379 9.16 5,061,746 Band 15 23,931.825 9.14 218,737 Band 16 241,301.706 9.11 2,198,259 Band 17 156,921.014 9.09 1,426,412 Band 18 7,322.036 9.07 66,411 Band 19 48,053.117 9.04 434,400 Band 20 300,854.608 9.17 2,758,837 Band 21 62,417.408 9.12 569,247 Band 25 1,332.961 9.50 12,663 Band 26 11,091.187 9.49 105,255 Band 27 245.312 9.38 2,301 Band 28 979.702 9.33 9,141 Band 29 51,058.249 9.31 475,352 Band 30 5,966.512 9.21 54,952 Band 31 5,033.445 9.16 46,106 Band 32 2,372.007 9.06 21,490 Band 33 11,538.285 8.99 103,729 Band 34 10,914.292 8.94 97,574 Band 41 1,776.758 13.58 24,128 Band 42 1,616.778 13.55 21,907 Band 43 3,092.316 13.52 41,808 Band 45 473.595 10.77 5,101 --------------- --------------- 4,033,175.428 $ 37,243,391 =============== ===============
256 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ProFund VP Rising Rates Opportunity Contracts in accumulation period: Band 2 7,457.454 $ 8.27 $ 61,673 Band 4 25,549.310 8.25 210,782 Band 5 13,616.001 8.24 112,196 Band 6 832,408.537 8.23 6,850,722 Band 7 926,614.354 8.22 7,616,770 Band 8 175,899.117 8.21 1,444,132 Band 9 213,853.038 8.21 1,755,733 Band 10 737,507.463 8.20 6,047,561 Band 11 347,572.808 8.20 2,850,097 Band 12 220,225.442 8.19 1,803,646 Band 13 451,132.865 8.18 3,690,267 Band 14 986,685.187 8.17 8,061,218 Band 15 22,497.129 8.17 183,802 Band 16 69,111.995 8.16 563,954 Band 17 303,907.735 8.15 2,476,848 Band 18 9,738.192 8.15 79,366 Band 19 55,148.002 8.13 448,353 Band 20 524,458.627 8.18 4,290,072 Band 21 101,668.532 8.16 829,615 Band 26 35,487.171 8.28 293,834 Band 27 12,345.862 8.25 101,853 Band 28 2,043.472 8.23 16,818 Band 29 153,050.003 8.22 1,258,071 Band 30 47,921.291 8.19 392,475 Band 31 21,113.509 8.17 172,497 Band 32 31,814.941 8.14 258,974 Band 33 17,852.772 8.12 144,965 Band 34 15,456.430 8.10 125,197 Band 41 14,163.453 8.19 115,999 Band 42 5,713.388 8.17 46,678 Band 43 3,680.872 8.15 29,999 Band 44 1,374.969 8.62 11,852 Band 45 4,541.155 8.66 39,326 --------------- --------------- 6,391,611.076 $ 52,385,345 =============== ===============
257 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- ProFund VP Small Cap Contracts in accumulation period: Band 2 3,419.105 $ 11.86 $ 40,551 Band 3 574.564 11.70 6,722 Band 4 61,851.086 11.75 726,750 Band 5 66,543.395 11.73 780,554 Band 6 2,539,027.393 11.68 29,655,840 Band 7 2,705,153.059 11.66 31,542,085 Band 8 338,299.766 11.62 3,931,043 Band 9 207,857.066 11.60 2,411,142 Band 10 702,471.083 11.58 8,134,615 Band 11 936,282.067 11.55 10,814,058 Band 12 281,732.435 11.53 3,248,375 Band 13 972,698.808 11.51 11,195,763 Band 14 1,784,671.329 11.47 20,470,180 Band 15 42,303.360 11.45 484,373 Band 16 191,273.781 11.40 2,180,521 Band 17 444,751.546 11.38 5,061,273 Band 18 52,726.402 11.36 598,972 Band 19 118,259.046 11.32 1,338,692 Band 20 820,563.953 11.49 9,428,280 Band 21 95,671.650 11.43 1,093,527 Band 25 15,390.946 11.90 183,152 Band 26 28,145.640 11.88 334,370 Band 27 4,573.568 11.75 53,739 Band 28 20,386.262 11.68 238,112 Band 29 184,725.031 11.66 2,153,894 Band 30 30,652.836 11.53 353,427 Band 31 30,998.231 11.47 355,550 Band 32 16,974.172 11.34 192,487 Band 33 10,256.784 11.26 115,491 Band 34 16,795.856 11.20 188,114 Band 41 5,568.467 12.70 70,720 Band 42 3,249.190 12.66 41,135 Band 43 9,047.954 12.64 114,366 Band 44 4,567.285 11.32 51,702 Band 45 7,234.221 11.12 80,445 --------------- --------------- 12,754,697.337 $ 147,670,020 =============== ===============
258 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Jennison Contracts in accumulation period: Band 2 10,505.473 $ 5.99 $ 62,928 Band 4 26,574.834 5.92 157,323 Band 5 205,872.714 5.91 1,216,708 Band 6 1,225,903.912 5.88 7,208,315 Band 7 1,705,902.988 5.87 10,013,651 Band 8 314,031.393 5.84 1,833,943 Band 9 216,325.092 5.83 1,261,175 Band 10 823,182.828 5.81 4,782,692 Band 11 920,545.285 5.80 5,339,163 Band 12 712,306.844 5.78 4,117,134 Band 13 1,009,997.892 5.77 5,827,688 Band 14 2,289,275.935 5.74 13,140,444 Band 15 14,268.572 5.73 81,759 Band 16 27,082.242 5.70 154,369 Band 17 502,584.739 5.69 2,859,707 Band 18 191,110.483 5.67 1,083,596 Band 19 157,068.056 5.65 887,435 Band 20 702,994.197 5.76 4,049,247 Band 21 118,853.704 5.72 679,843 Band 25 32,625.314 6.02 196,404 Band 26 83,325.514 6.01 500,786 Band 27 16,379.924 5.92 96,969 Band 28 36,394.314 5.88 213,999 Band 29 71,450.013 5.87 419,412 Band 30 70,175.524 5.78 405,615 Band 31 19,491.715 5.74 111,882 Band 32 25,178.415 5.66 142,510 Band 33 11,746.322 5.61 65,897 Band 34 7,633.199 5.57 42,517 Band 41 1,960.612 11.46 22,469 Band 43 6,712.783 11.41 76,593 Band 44 3,553.286 10.76 38,233 Band 45 563.987 10.64 6,001 --------------- --------------- 11,561,578.105 $ 67,096,407 =============== ===============
259 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- SP William Blair International Growth Contracts in accumulation period: Band 2 2,060.433 $ 6.58 $ 13,558 Band 4 59,253.635 6.51 385,741 Band 5 165,536.228 6.49 1,074,330 Band 6 2,659,754.460 6.47 17,208,611 Band 7 2,874,555.152 6.45 18,540,881 Band 8 238,995.197 6.42 1,534,349 Band 9 222,032.603 6.41 1,423,229 Band 10 1,316,699.886 6.40 8,426,879 Band 11 1,245,151.811 6.38 7,944,069 Band 12 748,064.242 6.37 4,765,169 Band 13 1,363,830.355 6.35 8,660,323 Band 14 2,612,622.201 6.33 16,537,899 Band 15 18,796.050 6.31 118,603 Band 16 161,989.529 6.29 1,018,914 Band 17 1,017,995.229 6.27 6,382,830 Band 18 65,592.086 6.26 410,606 Band 19 202,618.478 6.23 1,262,313 Band 20 1,223,881.636 6.34 7,759,410 Band 21 377,054.742 6.30 2,375,445 Band 25 56,755.585 6.61 375,154 Band 26 39,967.589 6.59 263,386 Band 27 27,746.955 6.51 180,633 Band 28 2,878.622 6.46 18,596 Band 29 97,836.277 6.45 631,044 Band 30 44,386.030 6.37 282,739 Band 31 40,981.096 6.33 259,410 Band 32 19,854.418 6.25 124,090 Band 33 10,878.184 6.19 67,336 Band 34 28,641.205 6.15 176,143 Band 41 8,746.964 13.44 117,559 Band 42 129.924 13.40 1,741 Band 43 3,165.929 13.38 42,360 Band 44 1,119.885 11.15 12,487 --------------- --------------- 16,959,572.616 $ 108,395,837 =============== ===============
260 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Putnam VT Discovery Growth Contracts in accumulation period: Band 9 22,664.390 $ 8.33 $ 188,794 Band 13 3,118.242 8.27 25,788 Band 15 4,171.014 8.23 34,327 Band 26 62,105.514 8.52 529,139 Band 27 28,382.256 8.44 239,546 Band 28 8,514.606 8.39 71,438 Band 29 120,296.230 8.38 1,008,082 Band 30 45,441.460 8.29 376,710 Band 31 15,385.364 8.24 126,775 Band 32 12,390.857 8.16 101,109 Band 33 28,877.571 8.10 233,908 Band 34 11,214.183 8.06 90,386 Band 42 413.352 10.93 4,518 --------------- --------------- 362,975.039 $ 3,030,520 =============== =============== Putnam VT Growth and Income Contracts in accumulation period: Band 4 237.920 $ 12.30 $ 2,926 Band 9 17,981.494 10.15 182,512 Band 13 3,093.748 10.07 31,154 Band 15 9,617.984 10.02 96,372 Band 26 63,376.167 10.59 671,154 Band 27 10,550.288 10.48 110,567 Band 28 2,234.699 10.42 23,286 Band 29 113,817.254 10.40 1,183,699 Band 30 48,377.708 10.29 497,807 Band 31 23,407.688 10.24 239,695 Band 32 18,892.077 9.93 187,598 Band 33 7,071.966 9.85 69,659 Band 34 1,001.400 9.80 9,814 Band 41 2,295.806 12.22 28,055 Band 43 2,295.674 12.16 27,915 --------------- --------------- 324,251.873 $ 3,362,213 =============== ===============
261 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Putnam VT International Growth and Income Contracts in accumulation period: Band 4 120.736 $ 14.31 $ 1,728 Band 7 1,876.279 13.03 24,448 Band 9 10,594.134 12.96 137,300 Band 13 3,344.205 12.87 43,040 Band 15 11,195.637 12.81 143,416 Band 26 66,398.319 13.26 880,442 Band 27 20,588.041 13.12 270,115 Band 28 6,036.952 13.05 78,782 Band 29 64,405.580 13.03 839,205 Band 30 26,479.650 12.89 341,323 Band 31 25,627.871 12.83 328,806 Band 32 16,598.170 12.70 210,797 Band 33 4,438.606 12.61 55,971 Band 34 16,817.911 12.54 210,897 Band 43 3,044.616 14.15 43,081 --------------- --------------- 277,566.707 $ 3,609,351 =============== =============== Smith Barney High Income Contracts in accumulation period: Band 22 2,661.517 $ 15.67 $ 41,706 Band 23 14,491.912 15.44 223,755 --------------- --------------- 17,153.429 $ 265,461 =============== =============== Smith Barney International All Cap Growth Contracts in accumulation period: Band 22 1,268.940 $ 13.07 $ 16,585 Band 23 15,300.975 12.88 197,077 --------------- --------------- 16,569.915 $ 213,662 =============== =============== Smith Barney Large Cap Value Contracts in accumulation period: Band 22 1,883.208 $ 19.62 $ 36,949 Band 23 19,907.800 $ 19.34 385,017 --------------- --------------- 21,791.008 $ 421,966 =============== =============== Smith Barney Money Market Contracts in accumulation period: Band 23 2,970.509 $ 12.37 $ 36,745 --------------- --------------- 2,970.509 $ 36,745 =============== ===============
262 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- UBS U.S. Allocation Contracts in accumulation period: Band 4 3,990.429 $ 12.00 $ 47,885 Band 7 9,060.722 9.74 88,251 Band 9 39,588.372 9.69 383,611 Band 13 9,839.650 9.62 94,657 Band 15 14,735.869 9.57 141,022 Band 26 189,032.757 9.92 1,875,205 Band 27 31,454.430 9.81 308,568 Band 28 24,163.254 9.76 235,833 Band 29 132,209.947 9.74 1,287,725 Band 30 51,077.783 9.64 492,390 Band 31 30,356.006 9.59 291,114 Band 32 31,623.836 9.49 300,110 Band 33 9,273.363 9.43 87,448 Band 34 8,731.117 9.38 81,898 Band 41 2,171.390 11.92 25,883 Band 43 7,317.233 11.86 86,782 --------------- --------------- 594,626.158 $ 5,828,382 =============== =============== Wells Fargo VT Asset Allocation Contracts in accumulation period: Band 6 27,950.829 $ 11.37 $ 317,801 Band 10 66,510.112 11.34 754,225 Band 14 40,366.320 11.30 456,139 Band 17 29,734.514 11.27 335,108 Band 20 861.399 11.31 9,742 Band 21 586.631 11.29 6,623 --------------- --------------- 166,009.805 $ 1,879,638 =============== =============== Wells Fargo VT Equity Income Contracts in accumulation period: Band 6 2,215.227 $ 11.78 $ 26,095 Band 10 16,526.222 11.75 194,183 Band 14 12,520.158 11.71 146,611 Band 17 35,621.162 11.68 416,055 Band 20 8,464.601 11.72 99,205 --------------- --------------- 75,347.370 $ 882,149 =============== ===============
263 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Division/Contract Units Unit Value Extended Value --------------------------------------------------- --------------- --------------- --------------- Wells Fargo VT Equity Value Contracts in accumulation period: Band 10 10,233.471 $ 11.75 $ 120,243 Band 14 5,174.508 11.72 60,645 Band 17 1,754.133 11.69 20,506 Band 21 849.835 11.70 9,943 --------------- --------------- 18,011.947 $ 211,337 =============== =============== Wells Fargo VT Large Company Growth Contracts in accumulation period: Band 6 2,063.866 $ 10.46 $ 21,588 Band 10 65,129.706 10.42 678,652 Band 14 40,918.874 10.39 425,147 Band 15 12,518.500 10.39 130,067 Band 17 85,897.172 10.37 890,754 Band 20 10,546.519 10.40 109,684 Band 21 939.800 10.38 9,755 --------------- --------------- 218,014.437 $ 2,265,647 =============== =============== Wells Fargo VT Money Market Contracts in accumulation period: Band 14 14,383.637 $ 9.85 $ 141,679 Band 17 23,138.671 9.82 227,222 --------------- --------------- 37,522.308 $ 368,901 =============== =============== Wells Fargo VT Small Cap Growth Contracts in accumulation period: Band 6 2,083.154 $ 11.95 $ 24,894 Band 10 14,649.211 11.91 174,472 Band 14 12,059.263 11.88 143,264 Band 17 17,233.259 11.85 204,214 Band 20 1,866.175 11.88 22,170 --------------- --------------- 47,891.062 $ 569,014 =============== =============== Wells Fargo VT Total Return Bond Contracts in accumulation period: Band 6 11,806.479 $ 10.43 $ 123,142 Band 10 18,206.412 10.40 189,347 Band 14 5,969.843 10.37 61,907 Band 15 58.124 10.36 602 Band 17 10,447.122 10.35 108,128 Band 20 106.281 10.38 1,103 --------------- --------------- 46,594.261 $ 484,229 =============== ===============
264 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Bands Products ------- ------------------------------------------------------------ Band 1 Golden VAC 80, ING GoldenSelect DVA 080 Band 2 Global Syndicate, Golden VAC 100, ING GoldenSelect DVA, ING GoldenSelect DVA 100 Band 3 ING GoldenSelect DVA Series 100 Band 4 ING GoldenSelect DVA Plus - Standard (pre February 2000), ING SmartDesign Signature Variable Annuity Option Package I Band 5 ING GoldenSelect DVA Plus - Standard (post January 2000 & post 2000) Band 6 First Union Variable Annuity, Fleet Premium Plus 140, ING GoldenSelect DVA Plus - Annual Ratchet (pre February 2000) & 5.5% Solution (pre February 2000 and post January 2000), ING GoldenSelect Access - Standard (pre February 2000), ING GoldenSelect Premium Plus - Standard (pre February 2000), ING GoldenSelect ES II (pre 2001), ING GoldenSelect ES II - Standard (post 2000), Generations - Standard, ING GoldenSelect Opportunities - Standard, WellsFargo ING Opportunities - Standard Band 7 Fleet Premium Plus 145, ING GoldenSelect DVA Plus - Annual Ratchet (post January 2000), ING GoldenSelect DVA Plus - 5.5% Solution (post 2000), ING GoldenSelect Access - Standard (post January 2000 and post 2000), ING GoldenSelect Premium Plus - Standard (post January 2000 and post 2000), ING GoldenSelect ES II - Deferred Ratchet (post 2000), ING GoldenSelect Generations - Deferred Ratchet, ING GoldenSelect Opportunities Variable 145; ING SmartDesign Signature Variable Annuity 145, Wells Fargo ING Opportunities Variable Annuity 145 Band 8 Fleet Premium Plus 155, ING Golden Select DVA Plus 155, ING Golden Select DVA Plus - 7% Solution (pre February 2000), ING Golden Select DVA Plus - Annual Ratchet (post 2000), ING GoldenSelect DVA Plus - Max 5.5 (post January 2000), ING GoldenSelect Access - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ING GoldenSelect Premium Plus - Annual Ratchet (pre February 2000) and 5.5% Solution (pre February 2000), ING GoldenSelect ES II - 5.5% Solution (post 2000), Opportunities - 5.5% Solution; Wells Fargo ING Opportunities Variable Annuity 155; Band 9 Fleet Premium Plus 160, ING GoldenSelect DVA Plus - Max 5.5 (post 2000), ING GoldenSelect Access - Annual Ratchet (post January 2000), ING Golden Select Access - 5.5% Solution (post January 2000 and post 2000), ING GoldenSelect Premium Plus - Annual Ratchet (post January 2000), ING GoldenSelect Premium Plus - 5.5% Solution (post January 2000 and post 2000), ING SmartDesign Advantage Variable Annuity 160, ING SmartDesign Signature Variable Annuity 160 Band 10 ING GoldenSelect DVA Plus - 7% Solution (post January 2000 and post 2000), ING GoldenSelect ES II - Annual Ratchet (post 2000), ING GoldenSelect Generations - Annual Ratchet, ING GoldenSelect Landmark - Standard, ING GoldenSelect Legends - Standard, Wells Fargo ING Landmark - Standard, Wells Fargo ING Landmark Variable Annuity 165, ING GoldenSelect Opportunities - Annual Ratchet, WellsFargo ING Opportunities - Annual Ratchet, ING SmartDesign Advantage Variable Annuity 165, Band 11 Fleet Premium Plus 170, ING GoldenSelect Access - 7% Solution (pre February 2000), ING GoldenSelect Access - Annual Ratchet (post 2000), ING GoldenSelect Access - Max 5.5 (post January 2000), ING GoldenSelect DVA Plus - Annual Ratchet (post 2000), ING Golden Select DVA Plus 155, ING GoldenSelect ES II - Max 5.5 (post 2000), ING GoldenSelect Premium Plus - 7% Solution (pre February 2000), ING GoldenSelect Premium Plus - Annual Ratchet (post 2000), ING Golden Select Premium Plus - Max 5.5 (post January 2000), ING Golden Select Opportunities - Max 5.5, Wells Fargo Opportunities - Max 5.5 Band 12 ING Golden Select Access - Max 5.5 (post 2000), ING Golden Select DVA Plus - Max 7 (post January 2000 and post 2000), ING GoldenSelect Premium Plus - Max 5.5 (post 2000), ING GoldenSelect ES II - 7% Solution (post 2000), ING GoldenSelect Generations - 7% Solution, ING Golden Select Opportunities - 7% Solution, Wells Fargo ING Opportunities Variable Annuity 175 265 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Bands Products ------- ------------------------------------------------------------ Band 13 ING GoldenSelect Access - 7% Solution (post January 2000 and post 2000), ING GoldenSelect Access - Standard (post April 2001), ING GoldenSelect Generations Variable Annuity 150, ING GoldenSelect Premium Plus - 7% Solution (post January 2000 and post 2000), ING GoldenSelect Landmark - 5.5% Solution, ING SmartDesign Advantage Variable Annuity, Wells Fargo ING Landmark - 5.5% Solution, Wells Fargo ING Opportunities Variable Annuity 180 Band 14 Fleet Premium Plus 190, ING GoldenSelect Access - Max 7 (post January 2000 and post 2000), ING GoldenSelect Landmark - Annual Ratchet, ING GoldenSelect Legends - Quarterly, ING GoldenSelect Premium Plus - Max 7 (post January 2000 and post 2000), ING GoldenSelect Premium Plus, ING GoldenSelect Premium Plus (Citigroup/Smith Barney), Wells Fargo ING Landmark - Annual Ratchet Band 15 ING GoldenSelect Access - 5.5% Solution (post April 2001), ING GoldenSelect ES II 195, ING GoldenSelect Generations Variable Annuity 195, ING GoldenSelect Landmark - Max 5.5, ING GoldenSelect Legends -WA Combo, ING Golden Select Opportunities Variable 195, ING GoldenSelect Opportunities Variable 195, ING GoldenSelect Premium Plus 195, ING SmartDesign Advantage, ING SmartDesign Advantage Variable Annuity 195, ING SmartDesign Signature Variable Annuity, ING SmartDesign Signature Variable Annuity 195, Wells Fargo ING Landmark - Max 5.5, Wells Fargo ING Opportunities Variable Annuity 195 Band 16 ING GoldenSelect Access - Annual Ratchet (post April 2001), ING GoldenSelect Landmark Variable Annuity 205, Wells Fargo ING Landmark Variable Annuity 205 Band 17 ING GoldenSelect Access - Max 5.5 (post April 2001), ING GoldenSelect Landmark (Citigroup/Smith Barney), ING GoldenSelect Landmark - Max 7, ING GoldenSelect Legends - Combo, ING GoldenSelect Premium Plus 210, Wells Fargo ING Landmark Variable Annuity, Wells Fargo Landmark - Max 7 Band 18 ING GoldenSelect Access - 7% Solution (post April 2001) Band 19 ING GoldenSelect Access, ING GoldenSelect Access (Citigroup/Smith Barney), ING GoldenSelect Access - Max 7 (post April 2001) ING SmartDesign Advantage Variable Annuity 225 Band 20 ING GoldenSelect ESII, ING GoldenSelect ES II - Max 7 (post 2000), ING GoldenSelect Generations, ING GoldenSelect Generations - Max 7, ING GoldenSelect Opportunities, ING GoldenSelect Opportunities - Max 7, ING SmartDesign Advantage Variable Annuity 185, Wells Fargo ING Opportunities Variable Annuity, Wells Fargo ING Opportunities - Max 7 Band 21 ING GoldenSelect Landmark - 7% Solution, ING SmartDesign Advantage Variable Annuity 200, Wells Fargo ING Landmark - 7% Solution Band 22 Granite PrimElite - Standard Band 23 ING GoldenSelect Granite PrimElite - Annual Ratchet; ING GoldenSelect Granite PrimElite 140 Band 24 ING GoldenSelect Access One Band 25 ING GoldenSelect Value Band 26 ING SmartDesign Variable Annuity Option I Band 27 ING SmartDesign Variable Annuity Option II Band 28 ING SmartDesign Variable Annuity, ING SmartDesign Variable Annuity Option III Band 29 ING SmartDesign Variable Annuity Bonus Option I Band 30 ING SmartDesign Variable Annuity Bonus Option II Band 31 ING SmartDesign Variable Annuity Bonus Option III Band 32 ING SmartDesign Advantage Bonus Option I Band 33 ING SmartDesign Advantage Bonus Option II Band 34 ING SmartDesign Advantage Bonus Option III Band 35 ING Rollover Choice Option I (prior to August 7, 2003), ING Focus VA Option I Band 36 ING Rollover Choice Option II (prior to August 7, 2003), ING Focus VA Option I, ING Focus VA Option II Band 37 ING Rollover Choice Option III (prior to August 7, 2003) Band 38 ING Rollover Choice Option I 266 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- Bands Products ------- ------------------------------------------------------------ Band 39 ING Rollover Choice Option II Band 40 ING Rollover Choice Option III Band 41 ING SmartDesign Signature Option I Band 42 ING SmartDesign Signature Option II Band 43 ING SmartDesign Signature Option III Band 44 ING SmartDesign Advantage Variable Annuity 245 Band 45 ING SmartDesign Advantage Variable Annuity 260 267 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - -------------------------------------------------------------------------------- 1. Financial Highlights A summary of unit values and units outstanding for variable annuity Contracts, expense ratios, excluding expenses of underlying Funds, investment income ratios, and total return for the years ended December 31, 2004, 2003, 2002 and 2001, along with unit values and units outstanding for the year ended December 31, 2000, follows:
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING GET Fund - Series N 2004 1,733 $10.06 to $10.40 $ 17,679 3.46% 1.45% to 2.40% -0.79% to 0.19% 2003 2,282 $10.14 to $10.38 23,357 2.73 1.45% to 2.40% 1.81% to 2.77% 2002 2,862 $9.96 to $10.10 28,661 1.35 0.95% to 1.90% -2.73% to -1.75% 2001 3,009 $10.24 to $10.28 30,868 2.25 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) ING GET Fund - Series P 2004 8,449 $9.92 to $10.26 84,983 3.57 1.45% to 2.45% -1.00% to 0.00% 2003 10,880 $9.89 to $10.26 110,101 2.58 1.45% to 3.05% 0.82% to 2.40% 2002 14,328 $9.81 to $10.02 143,846 0.07 0.75% to 2.55% -1.80% to -0.20% 2001 15,276 $9.99 to $10.04 153,045 (b) 0.95% to 2.55% (b) 2000 (b) (b) (b) (b) (b) (b) ING GET Fund - Series Q 2004 10,392 $10.01 to $10.58 107,135 3.52 1.25% to 3.05% -1.18% to 0.67% 2003 12,692 $10.13 to $10.51 131,095 -- 1.25% to 3.05% 2.01% to 3.85% 2002 16,855 $9.93 to $10.12 169,029 2.51 0.75% to 2.55% -0.70% to 1.20% 2001 190 $10.00 1,904 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) ING GET Fund - Series R 2004 10,766 $10.26 to $10.80 113,390 3.15 1.25% to 3.05% -0.39% to 1.50% 2003 12,873 $10.30 to $10.64 134,755 0.01 1.25% to 3.05% 2.90% to 4.72% 2002 16,911 $10.01 to $10.16 170,526 (c) 0.75% to 2.55% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
268 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- -------- -------------- ----------------- ING GET Fund - Series S 2004 12,848 $10.20 to $10.69 $134,146 2.60% 1.25% to 3.05% -0.39% to 1.42% 2003 15,576 $10.24 to $10.54 161,820 0.09 1.25% to 3.05% 2.61% to 4.56% 2002 21,867 $9.98 to $10.08 219,270 (c) 0.75% to 2.55% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING GET Fund - Series T 2004 13,033 $10.26 to $10.70 136,447 2.76 1.25% to 3.05% -0.48% to 1.33% 2003 15,618 $10.31 to $10.56 162,882 0.13 1.25% to 3.05% 2.69% to 4.55% 2002 23,643 $10.04 to $10.10 237,948 (c) 0.75% to 2.55% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING GET Fund - Series U 2004 13,476 $10.45 to $10.85 143,398 1.90 1.25% to 3.05% 0.29% to 2.17% 2003 16,063 $10.42 to $10.62 168,926 -- 1.25% to 3.05% 4.30% to 6.20% 2002 105 $9.99 to $10.00 1,048 (c) 0.75% to 2.20% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING GET Fund - Series V 2004 23,741 $9.57 to $9.89 231,030 1.01 1.25% to 3.05% -0.73% to 1.12% 2003 33,567 $9.64 to $9.78 325,984 (d) 1.25% to 3.05% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING AIM Mid-Cap Growth (Service Class) 2004 15,547 $13.77 to $15.77 226,687 -- 0.80% to 2.25% 5.11% to 6.70% 2003 16,058 $13.10 to $14.78 221,733 -- 0.80% to 2.25% 41.01% to 42.94% 2002 14,324 $9.29 to $10.34 139,852 -- 0.80% to 2.25% -33.26% to -32.24% 2001 17,855 $13.92 to $15.26 259,382 -- 0.80% to 2.25% -22.66% to -21.78% 2000 19,182 $18.40 to $19.51 359,734 (a) (a) (a)
269 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- --------- -------------- ----------------- ING AIM Mid-Cap Growth (Advisor Class) 2004 467 $10.31 to $14.49 $ 6,535 --% 1.40% to 2.10% 5.44% to 5.92% 2003 235 $13.60 to $13.68 3,194 -- 1.40% to 1.85% 41.23% to 41.76% 2002 8 $9.63 to $9.65 78 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Alliance Mid-Cap Growth (Service Class) 2004 26,948 $18.17 to $20.66 517,014 -- 0.80% to 2.25% 16.85% to 18.53% 2003 28,328 $15.55 to $17.43 462,824 -- 0.80% to 2.25% 63.34% to 65.68% 2002 24,777 $9.52 to $10.52 246,769 -- 0.80% to 2.25% -31.66% to -30.56% 2001 27,303 $13.93 to $15.15 395,434 -- 0.80% to 2.25% -15.42% to -14.46% 2000 27,139 $16.80 to $17.71 463,399 * * * ING Alliance Mid-Cap Growth (Advisor Class) 2004 680 $10.78 to $20.25 12,840 -- 1.40% to 2.10% 17.19% to 17.66% 2003 270 $17.10 to $17.21 4,624 -- 1.40% to 1.85% 63.64% to 64.53% 2002 14 $10.45 to $10.46 148 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING American Funds Growth 2004 72,179 $10.64 to $11.96 854,063 0.01 0.95% to 2.60% 9.04% to 10.84% 2003 12,298 $10.73 to $10.79 132,320 (d) 0.95% to 2.55% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING American Funds Growth-Income 2004 55,830 $10.60 to $11.97 661,150 0.16 0.95% to 2.60% 6.94% to 8.72% 2003 9,106 $10.95 to $11.01 99,959 (d) 0.95% to 2.55% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d)
270 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ---- -------------- ------------------- ING American Funds International 2004 23,418 $11.16 to $13.67 $316,864 0.22% 0.95% to 2.60% 15.64% to 17.45% 2003 3,906 $11.57 to $11.64 45,340 (d) 0.95% to 2.55% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING Capital Guardian Large Cap Value (Service Class) 2004 60,199 $10.48 to $11.44 648,665 0.19 0.50% to 2.25% 6.83% to 8.75% 2003 55,938 $9.81 to $10.52 561,288 0.05 0.50% to 2.25% 33.65% to 36.09% 2002 39,602 $7.34 to $7.73 295,688 0.25 0.50% to 2.25% -25.48% to -24.22% 2001 27,628 $9.85 to $10.20 275,489 0.25 0.50% to 2.25% -5.43% to -4.44% 2000 9,362 $10.50 to $10.59 98,545 (a) (a) (a) ING Capital Guardian Large Cap Value (Advisor Class) 2004 692 $10.48 to $14.85 10,041 0.23 1.40% to 2.10% 7.07% to 7.53% 2003 495 $13.72 to $13.81 6,805 -- 1.40% to 1.85% 33.85% to 34.47% 2002 32 $10.25 to $10.27 333 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Capital Guardian Managed Global (Service Class) 2004 19,426 $18.24 to $22.64 383,093 0.47 0.50% to 2.25% 8.44% to 10.39% 2003 19,452 $16.82 to $20.51 352,387 -- 0.50% to 2.25% 33.28% to 35.65% 2002 16,459 $12.62 to $15.12 223,084 0.13 0.50% to 2.25% -22.00% to -20.59% 2001 14,451 $16.18 to $19.04 250,388 0.13 0.50% to 2.25% -13.60% to -12.34% 2000 11,365 $19.34 to $21.72 228,347 (a) (a) (a) ING Capital Guardian Managed Global (Advisor Class) 2004 328 $10.71 to $15.02 4,767 0.79 1.40% to 2.10% 8.63% to 9.16% 2003 152 $13.68 to $13.76 2,084 -- 1.40% to 1.85% 33.72% to 34.38% 2002 5 $10.23 50 (c) 1.75% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
271 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ---------- ------------- ------------------- ING Capital Guardian Small Cap (Service Class) 2004 28,547 $17.83 to $20.91 $538,021 0.19% 0.50% to 2.25% 5.07% to 6.96% 2003 30,090 $16.97 to $19.55 537,286 0.15 0.50% to 2.25% 37.19% to 39.64% 2002 26,339 $12.37 to $14.00 341,146 0.12 0.80% to 2.25% -27.11% to -25.80% 2001 27,165 $16.97 to $18.87 480,513 0.13 0.50% to 2.25% -3.40% to -1.97% 2000 23,107 $17.94 to $19.25 422,097 (a) (a) (a) ING Capital Guardian Small Cap (Advisor Class) 2004 582 $10.22 to $14.23 7,939 0.38 1.40% to 2.10% 5.31% to 5.80% 2003 310 $13.37 to $13.45 4,148 0.18 1.40% to 1.85% 37.55% to 38.23% 2002 33 $9.72 to $9.73 321 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Developing World (Service Class) 2004 14,735 $9.86 to $10.91 151,706 0.38 0.80% to 2.25% 15.05% to 16.81% 2003 12,265 $8.57 to $9.34 109,258 0.21 0.80% to 2.25% 43.31% to 45.48% 2002 9,702 $5.98 to $6.42 60,000 -- 0.80% to 2.25% -12.70% to -11.45% 2001 10,141 $6.85 to $7.25 71,466 1.18 0.80% to 2.25% -7.10% to -5.97% 2000 7,211 $7.47 to $7.71 54,398 (a) (a) (a) ING Developing World (Advisor Class) 2004 467 $11.10 to $16.25 7,217 0.63 1.40% to 2.10% 15.52% to 16.07% 2003 140 $13.92 to $14.00 1,956 0.20 1.40% to 1.85% 43.51% to 44.18% 2002 8 $9.70 to $9.71 79 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Eagle Asset Capital Appreciation (Service Class) 2004 10,891 $11.05 to $22.26 223,247 0.90 0.80% to 2.60% 11.94% to 13.98% 2003 11,683 $16.67 to $19.53 212,149 0.22 0.80% to 2.55% 22.12% to 24.24% 2002 11,740 $13.65 to $15.72 173,239 0.69 0.80% to 2.55% -20.82% to -17.70% 2001 10,991 $17.24 to $19.10 199,039 0.85 0.80% to 2.25% -6.21% to -5.21% 2000 9,358 $18.85 to $20.15 180,722 (a) (a) (a)
272 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- -------- ------------- ----------------- ING Eagle Asset Capital Appreciation (Advisor Class) 2004 143 $13.29 to $13.43 $ 1,905 1.23% 1.40% to 1.85% 12.63% to 13.14% 2003 86 $11.80 to $11.87 1,022 0.18 1.40% to 1.85% 22.79% to 23.26% 2002 11 $9.61 to $9.63 107 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Evergreen Health Sciences (Advisor Class) 2004 277 $9.85 to $9.90 2,731 (e) 1.40% to 2.10% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING Evergreen Health Sciences (Service Class) 2004 2,972 $9.82 to $9.94 29,371 (e) 0.95% to 2.60% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING Evergreen Omega (Advisor Class) 2004 30 $10.43 to $10.48 317 (e) 1.40% to 2.10% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING Evergreen Omega (Service Class) 2004 290 $10.42 to $10.52 3,037 (e) 0.95% to 2.25% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e)
273 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- -------- -------------- ------------------- IMG FMR Diversified Mid-Cap (Service Class) 2004 21,954 $11.22 to $11.90 $252,365 0.13% 0.90% to 2.25% 21.30% to 22.93% 2003 17,427 $9.25 to $9.68 164,205 -- 0.90% to 2.25% 30.47% to 32.42% 2002 12,695 $7.09 to $7.31 91,159 0.29 0.90% to 2.25% -21.13% to -20.11% 2001 6,381 $8.99 to $9.15 57,814 0.48 0.90% to 2.25% -8.41% to -7.79% 2000 1,150 $9.87 to $9.88 11,358 (a) (a) (a) IMG FMR Diversified Mid-Cap (Advisor Class) 2004 666 $11.82 to $15.21 9,744 0.22 1.40% to 2.10% 21.57% to 22.07% 2003 303 $12.38 to $12.46 3,754 -- 1.40% to 1.85% 30.73% to 31.43% 2002 23 $9.47 to $9.48 220 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Goldman Sachs Tollkeeper (Service Class) 2004 9,719 $6.88 to $7.24 68,251 -- 0.90% to 2.25% 9.03% to 10.53% 2003 8,371 $6.31 to $6.55 53,622 -- 0.90% to 2.25% 37.77% to 39.66% 2002 2,769 $4.58 to $4.69 12,802 -- 0.90% to 2.25% -39.50% to -38.61% 2001 709 $7.57 to $7.64 5,389 (b) 0.90% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b) ING Goldman Sachs Tollkeeper (Advisor Class) 2004 283 $11.16 to $15.87 4,337 -- 1.40% to 2.10% 9.26% to 9.75% 2003 180 $14.37 to $14.46 2,595 -- 1.40% to 1.85% 38.17% to 38.77% 2002 5 $10.40 to $10.42 53 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Hard Assets (Service Class) 2004 8,900 $19.26 to $24.34 187,945 0.95 0.80% to 2.25% 4.05% to 5.55% 2003 6,911 $18.51 to $23.06 140,016 0.37 0.80% to 2.25% 48.79% to 51.02% 2002 4,986 $12.44 to $15.93 67,753 0.68 0.50% to 2.25% -1.50% to 4.32% 2001 2,395 $12.63 to $15.27 33,209 -- 0.80% to 2.25% -13.82% to -12.84% 2000 2,584 $15.34 to $17.52 41,509 (a) (a) (a)
274 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- --------- -------------- ----------------- ING Hard Assets (Advisor Class) 2004 688 $10.54 to $15.44 $ 10,189 1.36% 1.40% to 2.10% 4.23% to 4.75% 2003 207 $14.66 to $14.74 3,037 0.45 1.40% to 1.85% 49.29% to 49.95% 2002 10 $9.82 to $9.83 97 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING International (Service Class) 2004 17,199 $9.80 to $11.15 177,640 0.92 0.80% to 2.25% 14.09% to 15.78% 2003 17,997 $8.59 to $9.63 162,082 0.25 0.80% to 2.25% 26.32% to 28.23% 2002 16,969 $6.80 to $7.46 120,477 0.75 0.90% to 2.25% -18.76% to -16.93% 2001 16,734 $8.37 to $8.98 144,061 -- 0.90% to 2.10% -24.87% to -22.18% 2000 17,171 $11.23 to $11.73 194,618 (a) (a) (a) ING International (Advisor Class) 2004 646 $11.37 to $14.33 9,037 1.23 1.40% to 2.10% 14.35% to 14.92% 2003 401 $12.40 to $12.47 4,980 0.31 1.40% to 1.85% 26.66% to 27.24% 2002 26 $9.79 to $9.80 254 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Janus Special Equity (Service Class) 2004 6,384 $10.03 to $11.52 65,678 -- 0.90% to 2.55% 14.50% to 16.05% 2003 6,039 $8.76 to $9.16 53,911 -- 0.90% to 2.25% 46.98% to 48.94% 2002 3,609 $5.96 to $6.15 21,794 -- 0.90% to 2.25% -27.58% to -26.61% 2001 2,932 $8.23 to $8.38 24,325 0.37 0.90% to 2.25% -6.87% to -6.19% 2000 663 $8.88 to $8.89 5,891 (a) (a) (a) ING Janus Special Equity (Advisor Class) 2004 136 $11.31 to $16.45 2,177 -- 1.40% to 2.10% 14.73% to 15.28% 2003 56 $14.91 to $14.27 801 -- 1.40% to 1.85% 47.51% to 48.18% 2002 6 $9.62 to $9.63 56 (c) 1.40% to 1.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
275 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- -------- -------------- ------------------- ING Jennison Equity Opportunities (Service Class) 2004 14,961 $19.35 to $23.31 $314,930 0.28% 0.80% to 2.25% 10.07% to 11.69% 2003 17,530 $17.58 to $20.87 333,380 0.09 0.80% to 2.25% 28.13% to 30.03% 2002 19,040 $13.72 to $16.05 280,954 0.13 0.80% to 2.25% -30.85% to -29.82% 2001 20,717 $19.84 to $22.87 440,209 0.07 0.80% to 2.25% -14.67% to -13.67% 2000 19,193 $24.06 to $26.49 477,934 (a) (a) (a) ING Jennison Equity Opportunities (Advisor Class) 2004 241 $10.87 to $13.96 3,292 0.57 1.40% to 2.10% 10.30% to 10.88% 2003 131 $12.52 to $12.59 1,639 0.12 1.40% to 1.85% 28.54% to 29.13% 2002 3 $9.74 to $9.75 34 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING JPMorgan Small Cap Equity (Service Class) 2004 11,640 $13.63 158,627 -- 0.80% to 2.60% 23.68% to 33.89% 2003 6,338 $10.18 to $11.02 65,484 -- 0.80% to 2.55% 30.85% to 33.12% 2002 1,212 $7.79 to $7.87 9,490 (c) 0.90% to 2.40% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING JPMorgan Small Cap Equity (Advisor Class) 2004 2,183 $11.93 to $15.53 32,610 -- 1.40% to 2.10% 23.45% to 24.04% 2003 889 $2.45 to $12.52 11,088 -- 1.40% to 1.85% 31.33% to 31.93% 2002 54 $9.48 to $9.49 511 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Julius Baer Foreign (Service Class) 2004 15,131 $11.44 to $13.55 185,592 0.11 0.90% to 2.60% 14.85% to 16.87% 2003 3,272 $10.44 to $11.69 34,644 0.99 0.90% to 2.55% 27.94% to 30.06% 2002 608 $8.17 to $8.25 4,990 (c) 0.90% to 2.40% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
276 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- -------- -------------- ----------------- ING Julius Baer Foreign (Advisor Class) 2004 1,245 $11.47 to $14.62 $ 17,516 0.03% 1.40% to 2.10% 15.58% to 16.04% 2003 203 $12.52 to $12.60 2,550 1.03 1.40% to 1.85% 28.54% to 29.10% 2002 17 $9.74 to $9.76 165 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Legg Mason Value (Service Class) 2004 30,531 $9.10 to $12.10 288,326 0.14 0.90% to 2.60% 10.98% to 12.82% 2003 26,637 $8.20 to $10.81 224,722 0.03 0.90% to 2.55% 19.36% to 21.49% 2002 18,616 $6.87 to $7.13 130,345 0.45 0.90% to 2.55% -21.75% to -20.16% 2001 10,487 $8.78 to $8.93 92,720 1.02 0.90% to 2.25% -11.18% to -10.34% 2000 1,280 $9.93 to $9.96 12,726 (a) (a) (a) ING Legg Mason Value (Advisor Class) 2004 1,086 $11.15 to $13.14 13,915 0.20 1.40% to 2.10% 11.58% to 12.03% 2003 616 $11.66 to $11.73 7,195 -- 1.40% to 1.85% 20.06% to 20.58% 2002 60 $9.71 to $9.73 587 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING LifeStyle Aggressive Growth 2004 19,102 $11.17 to $11.30 214,566 (e) 0.95% to 2.60% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING LifeStyle Growth 2004 42,766 $11.05 to $11.18 475,452 (e) 0.95% to 2.60% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e)
277 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING LifeStyle Moderate Growth 2004 41,489 $10.88 to $11.00 $453,887 (e)% 0.95% to 2.60% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING LifeStyle Moderate 2004 19,609 $10.74 to $10.86 211,827 (e) 0.95% to 2.60% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING Limited Maturity Bond 2004 18,084 $17.78 to $23.58 357,305 4.19 0.50% to 2.25% -0.89% to 0.90% 2003 27,037 $17.94 to $23.37 534,954 0.74 0.50% to 2.25% 0.56% to 2.32% 2002 28,506 $17.84 to $22.84 558,941 3.62 0.50% to 2.25% 4.82% to 6.68% 2001 19,509 $17.02 to $21.41 364,062 4.84 0.50% to 2.25% 6.78% to 8.30% 2000 11,438 $16.67 to $19.77 200,958 (a) (a) (a) ING Liquid Assets (Service Class) 2004 41,260 $9.83 to $17.37 618,281 1.05 0.75% to 2.60% -1.66% to 0.17% 2003 49,098 $9.95 to $18.00 745,674 0.78 0.50% to 2.55% -1.78% to 0.22% 2002 66,797 $13.46 to $17.34 1,023,179 1.42 0.50% to 2.55% -1.17% to 0.96% 2001 69,541 $13.62 to $17.79 1,071,485 3.59 0.50% to 2.55% 1.86% to 3.01% 2000 44,678 $14.50 to $16.61 679,666 (a) (a) (a) ING Liquid Assets (Advisor Class) 2004 970 $9.74 to $9.91 9,497 1.14 1.40% to 2.10% -1.12% to -0.61% 2003 490 $9.85 to $9.91 4,837 0.81 1.40% to 1.85% -1.30% to -0.80% 2002 180 $9.98 to $9.99 1,800 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
278 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) -------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING Marsico Growth (Service Class) 2004 54,430 $11.02 to $16.52 $813,432 --% 0.50% to 2.60% 9.95% to 11.92% 2003 57,559 $12.87 to $14.76 778,700 -- 0.50% to 2.25% 29.74% to 32.02% 2002 53,954 $9.92 to $11.18 560,041 -- 0.50% to 2.25% -31.16% to -29.91% 2001 66,921 $14.41 to $15.95 1,002,892 -- 0.50% to 2.25% -31.55% to -30.59% 2000 67,525 $21.49 to $22.98 1,474,980 (a) (a) (a) ING Marsico Growth (Advisor Class) 2004 1,088 $10.98 to $14.16 15,095 -- 1.40% to 2.10% 10.23% to 10.72% 2003 654 $12.71 to $12.79 8,324 -- 1.40% to 1.85% 30.23% to 30.81% 2002 9 $9.76 to $9.78 92 (c) 1.40% to 1.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Mercury Focus Value (Service Class) 2004 3,468 $11.64 to $12.10 40,913 0.27 0.80% to 2.25% 8.99% to 10.53% 2003 2,431 $10.68 to% 10.92 26,184 0.21 0.90% to 2.25% 28.33% to 30.00% 2002 710 $8.32 to $8.40 5,931 (c) 0.90% to 2.25% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Mercury Focus Value (Advisor Class) 2004 170 $10.63 to $14.44 2,419 0.19 1.40% to 2.10% 9.33% to 9.81% 2003 61,511 $13.07 to $13.15 805 0.23 1.40% to 1.85% 28.64% to 29.30% 2002 5 $10.16 to $10.17 48 (c) 1.65% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Mercury Large Cap Growth (Service Class) 2004 1,738 $10.69 to $11.08 18,861 -- 0.90% to 2.25% 8.64% to 10.03% 2003 1,372 $9.84 to $10.07 13,630 -- 0.90% to 2.25% 24.09% to 25.88% 2002 345 $7.93 to $8.00 2,742 (c) 0.90% to 2.15% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
279 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- ING Mercury Large Cap Growth (Advisor Class) 2004 171 $10.95 to $12.92 $ 2,165 --% 1.40% to 2.10% 8.86% to 9.40% 2003 72,746 $11.74 to $11.81 856 -- 1.40% to 1.85% 24.36% to 24.97% 2002 11 $9.44 to $9.45 108 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING MFS(R) Mid-Cap Growth (Service Class) 2004 27,088 $22.90 to $27.45 661,572 -- 0.50% to 2.25% 12.48% to 14.47% 2003 29,373 $20.36 to $23.98 634,357 -- 0.50% to 2.25% 36.01% to 38.45% 2002 27,548 $14.97 to $17.32 435,581 -- 0.50% to 2.25% -49.97% to -49.07% 2001 29,521 $29.92 to $34.01 928,290 0.37 0.50% to 2.25% -25.09% to -24.25% 2000 27,623 $40.98 to $43.92 1,158,061 * * * ING MFS(R) Mid-Cap Growth (Advisor Class) 2004 1,170 $10.80 to $15.16 17,093 -- 1.40% to 2.10% 12.70% to 13.22% 2003 722 $13.31 to $13.39 9,625 -- 1.40% to 1.85% 36.48% to 37.05% 2002 56 $9.75 to $9.77 549 (c) 1.40% to 1.80% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING MFS(R) Total Return (Service Class) 2004 54,357 $10.75 to $26.62 1,279,372 1.88 0.50% to 2.60% 8.30% to 10.59% 2003 52,822 $10.66 to $24.07 1,142,408 0.53 0.50% to 2.55% 13.79% to 16.17% 2002 45,174 $17.48 to $20.72 853,266 2.36 0.50% to 2.55% -7.51% to -5.56% 2001 39,136 $18.90 to $21.94 793,394 4.88 0.50% to 2.55% -1.44% to -0.32% 2000 29,621 $20.10 to $21.54 608,868 (a) (a) (a) ING MFS(R) Total Return (Advisor Class) 2004 2,842 $10.70 to $12.62 35,147 2.53 1.40% to 2.10% 8.99% to 9.45% 2003 1,416 $11.46 to $11.53 16,257 0.74 1.40% to 1.85% 14.26% to 14.84% 2002 95 $10.03 to $10.04 955 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
280 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- ING Oppenheimer Main Street (Service Class) 2004 24,115 $10.85 to $22.01 $487,638 0.79% 0.80% to 2.55% 10.00% to 11.95% 2003 27,160 $16.70 to $19.66 494,911 0.21 0.80% to 2.55% 21.45% to 23.57% 2002 28,285 $13.75 to $15.91 421,035 0.41 0.80% to 2.55% -28.35% to -25.45% 2001 31,622 $19.19 to $21.34 637,711 0.12 0.80% to 2.25% -22.97% to -22.09% 2000 30,638 $25.56 to $27.39 800,528 * * * ING Oppenheimer Main Street (Advisor Class) 2004 219 $10.73 to $13.24 2,848 1.04 1.40% to 2.10% 10.64% to 11.08% 2003 165 $11.84 to $11.92 1,951 0.18 1.40% to 1.85% 22.06% to 22.66% 2002 34 $9.70 to $9.72 326 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING PIMCO Core Bond (Service Class) 2004 44,134 $10.26 to $14.51 581,595 2.76 0.75% to 2.60% 2.21% to 4.09% 2003 40,186 $10.25 to $13.94 514,027 0.48 0.75% to 2.55% 2.08% to 3.97% 2002 34,238 $11.55 to $13.41 425,125 3.72 0.80% to 2.55% 3.69% to 8.23% 2001 9,873 $11.14 to $12.39 114,996 0.40 0.80% to 2.25% 0.53% to 1.64% 2000 3,438 $11.37 to $12.19 40,000 (a) (a) (a) ING PIMCO Core Bond (Advisor Class) 2004 2,587 $10.03 to $10.92 27,855 3.26 1.40% to 2.10% 2.95% to 3.31% 2003 1,573 $10.50 to $10.57 16,545 0.67 1.40% to 1.85% 2.54% to 3.02% 2002 97 $10.24 to $10.26 992 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING PIMCO High Yield 2004 60,645 $10.73 to $11.13 654,861 (e) 0.50% to 2.60% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e)
281 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- ING Salomon Brothers All Cap (Service Class) 2004 34,853 $10.52 to $12.76 $427,236 0.18% 0.90% to 2.55% 5.04% to 6.87% 2003 36,433 $11.11 to $11.94 421,482 0.06 0.90% to 2.55% 35.73% to 37.56% 2002 29,232 $8.34 to $8.68 247,740 0.22 0.90% to 2.55% -27.23% to -26.19% 2001 25,814 $11.46 to $11.76 299,314 1.47 0.90% to 2.25% 0.00% to 0.94% 2000 9,062 $11.54 to $11.65 104,883 (a) (a) (a) ING Salomon Brothers All Cap (Advisor Class) 2004 1,115 $10.30 to $13.84 14,779 0.38 1.40% to 2.10% 5.63% to 6.13% 2003 472 $12.96 to $13.04 6,124 -- 1.40% to 1.85% 36.13% to 36.83% 2002 18 $9.52 to $9.53 176 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Salomon Brothers Investors (Service Class) 2004 13,023 $10.85 to $12.11 145,322 0.65 0.90% to 2.55% 7.43% to 9.01% 2003 13,185 $10.10 to $11.13 136,147 0.18 0.90% to 2.25% 28.34% to 30.04% 2002 11,516 $7.87 to $8.19 92,136 0.81 0.90% to 2.25% -24.69% to -23.67% 2001 8,646 $10.45 to $10.73 91,400 1.30 0.90% to 2.25% -6.16% to -5.13% 2000 1,917 $11.21 to $11.31 21,558 (a) (a) (a) ING Salomon Brothers Investors (Advisor Class) 2004 144 $10.46 to $13.65 1,920 0.82 1.40% to 2.10% 7.66% to 8.25% 2003 81 $12.54 to $12.61 1,014 0.15 1.40% to 1.85% 28.72% to 29.20% 2002 30 $9.74 to $9.75 297 (c) 1.65% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING T. Rowe Price Capital Appreciation (Service Class) 2004 49,150 $34.53 to $43.65 1,866,804 1.12 0.80% to 2.25% 13.96% to 15.69% 2003 41,070 $30.30 to $37.73 1,365,679 0.36 0.80% to 2.25% 22.42% to 24.23% 2002 34,525 $24.75 to $30.37 935,079 1.72 0.80% to 2.25% -1.79% to -0.33% 2001 23,375 $25.20 to $30.47 644,971 3.34 0.80% to 2.25% 7.85% to 9.02% 2000 13,395 $24.47 to $27.95 345,651 (a) (a) (a)
282 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- ING T. Rowe Price Capital Appreciation (Advisor Class) 2004 4,029 $11.24 to $14.16 $ 55,427 1.53% 1.40% to 2.10% 14.27% to 14.84% 2003 1,646 $12.26 to $12.33 20,206 0.48 1.40% to 1.85% 22.70% to 23.18% 2002 89 $9.99 to $10.01 894 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING T. Rowe Price Equity Income (Service Class) 2004 33,622 $11.01 to $33.00 916,190 0.96 0.50% to 2.60% 12.27% to 14.31% 2003 26,391 $22.16 to $28.87 643,858 0.31 0.50% to 2.25% 22.36% to 24.55% 2002 20,545 $18.11 to $23.18 409,670 1.34 0.50% to 2.25% -15.14% to -13.64% 2001 17,698 $21.34 to $26.84 416,763 1.95 0.50% to 2.25% -0.58% to 1.46% 2000 12,207 $22.48 to $26.61 291,793 (a) (a) (a) ING T. Rowe Price Equity Income (Advisor Class) 2004 1,728 $11.12 to $13.70 23,091 1.17 1.40% to 2.10% 12.45% to 13.04% 2003 896 $12.05 to $12.12 10,819 0.38 1.40% to 1.85% 22.83% to 23.30% 2002 65 $9.81 to $9.83 640 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING UBS U.S. Balanced (Service Class) 2004 11,173 $8.91 to $10.96 102,102 0.80 0.50% to 2.60% 8.39% to 9.90% 2003 8,206 $8.22 to $8.59 68,664 0.01 0.90% to 2.25% 15.41% to 16.87% 2002 6,551 $7.12 to $7.35 47,241 1.11 0.90% to 2.25% -16.73% to -15.52% 2001 5,718 $8.55 to $8.70 49,242 1.78 0.90% to 2.25% -8.32% to -7.68% 2000 501 $9.37 to $9.38 4,696 (a) (a) (a) ING UBS U.S. Balanced (Advisor Class) 2004 268 $10.73 to $12.42 3,204 1.15 1.40% to 2.10% 8.83% to 9.23% 2003 85 $11.33 to $11.37 963 (d) 1.40% to 1.85% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d)
283 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) -------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING Van Kampen Equity Growth (Service Class) 2004 4,030 $9.86 to $10.23 $ 40,329 --% 0.90% to 2.25% 4.89% to 6.34% 2003 3,146 $9.40 to $9.62 29,848 0.02 0.90% to 2.25% 20.82% to 22.55% 2002 559 $7.78 to $7.85 4,362 (c) 0.90% to 2.25% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Van Kampen Equity Growth (Advisor Class) 2004 808 $10.55 to $12.40 9,811 -- 1.40% to 2.10% 5.05% to 5.53% 2003 505 $11.68 to $11.75 5,909 -- 1.40% to 1.85% 21.29% to 21.89% 2002 48 $9.63 to $9.64 458 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Van Kampen Global Franchise (Service Class) 2004 9,665 $11.95 to $12.43 117,208 -- 0.80% to 2.25% 10.14% to 11.78% 2003 5,295 $10.85 to $11.12 58,019 0.82 0.80% to 2.25% 23.30% to 25.23% 2002 1,661 $8.80 to $8.88 14,670 (c) 0.80% to 2.25% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Van Kampen Global Franchise (Advisor Class) 2004 3,118 $10.89 to $13.11 39,831 -- 1.40% to 2.10% 10.47% to 10.92% 2003 1,232 $11.75 to $11.82 14,506 0.88 1.40% to 1.85% 23.55% to 24.16% 2002 74 $9.51 to $9.52 708 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Van Kampen Growth and Income (Service Class) 2004 30,700 $23.39 to $28.54 772,796 0.96 0.50% to 2.25% 11.54% to 13.52% 2003 31,390 $20.97 to $25.14 705,253 0.26 0.50% to 2.25% 25.04% to 27.23% 2002 30,992 $16.77 to $19.76 554,608 0.84 0.50% to 2.25% -16.69% to -15.19% 2001 34,270 $20.13 to $23.30 732,049 0.30 0.50% to 2.25% -13.63% to -12.68% 2000 34,836 $24.00 to $26.02 860,338 (a) (a) (a)
284 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING Van Kampen Growth and Income (Advisor Class) 2004 3,963 $11.01 to $13.85 $ 53,331 1.39% 1.40% to 2.10% 11.84% to 12.33% 2003 1,961 $12.25 to $12.33 24,058 0.34 1.40% to 1.85% 25.26% to 25.94 2002 101 $9.78 to $9.79 990 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Van Kampen Real Estate (Service Class) 2004 11,459 $13.59 to $59.73 557,477 1.55 0.50% to 2.60% 34.69% to 37.06% 2003 9,000 $33.44 to $43.58 330,864 0.20 0.50% to 2.25% 34.62% to 37.04% 2002 6,881 $24.84 to $31.80 187,607 3.73 0.50% to 2.25% -2.05% to 0.31% 2001 4,535 $25.36 to $31.90 126,169 4.29 0.50% to 2.25% 6.07% to 7.28% 2000 3,804 $25.04 to $28.59 100,303 (a) (a) (a) ING Van Kampen Real Estate (Advisor Class) 2004 1,043 $12.60 to $17.69 17,799 1.90 1.40% to 2.10% 35.03% to 35.76% 2003 481 $12.96 to $13.03 6,246 0.18 1.40% to 1.85% 35.00% to 35.59% 2002 29 $9.60 to $9.61 276 (c) 1.40% to 1.85% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING American Century Select 2004 30 $9.03 to $12.11 291 -- 0.75% to 1.35% 3.77% to 4.00% 2003 15 $8.74 to $11.67 142 -- 0.75% to 1.00% 33.23% 2002 6 $6.56 39 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING American Century Small Cap Value 2004 29 $13.07 to $14.21 389 0.36 0.75% to 1.20% 19.88% to 20.44% 2003 15 $10.87 to $11.83 162 -- 0.75% to 1.20% 34.20% to 34.53% 2002 -- $8.10 2 (c) 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
285 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING Baron Small Cap Growth 2004 99 $14.49 to $14.66 $ 1,448 --% 0.75% to 1.35% 26.22% to 27.04% 2003 89 $11.48 to $11.54 1,028 (d) 0.75% to 1.35% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING JPMorgan International 2004 4,620 $11.53 to $14.38 63,865 1.24 0.75% to 2.55% 15.64% to 17.78% 2003 679 $10.42 to $12.24 8,019 0.05 0.75% to 2.55% 28.17% to 28.50% 2002 1 $8.13 to $8.14 7 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING JPMorgan Mid Cap Value 2004 1,575 $11.25 to $14.21 21,149 0.22 0.75% to 2.60% 17.53% to 19.61% 2003 527 $10.95 to $11.88 6,151 0.50 0.75% to 2.55% 26.73% to 29.13% 2002 33 $9.09 to $9.19 301 (c) 0.95% to 2.55% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING MFS(R) Capital Opportunities (Initial Class) 2004 455 $8.28 to $11.96 3,938 0.46 0.95% to 2.55% 9.96% to 11.88% 2003 389 $7.53 to $10.73 3,009 0.14 0.95% to 2.55% 24.88% to 26.70% 2002 209 $6.04 to $6.18 1,280 -- 0.95% to 2.40% -37.64% to -32.29% 2001 78 $8.92 to $9.91 698 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) ING MFS(R) Capital Opportunities (Service Class) 2004 42 $9.71 to $12.59 444 0.24 0.75% to 1.20% 11.51% to 11.74% 2003 43 $8.69 to $11.29 391 -- 0.75% to 1.00% 26.86% 2002 11 $6.85 72 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
286 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING OpCap Balanced Value 2004 88 $10.97 to $12.32 $ 1,031 0.83% 0.75% to 1.35% 9.05% to 9.52% 2003 40 $10.08 to $11.28 408 2.25 0.75% to 1.20% 29.23% 2002 16 $7.80 126 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Oppenheimer Global Portfolio 2004 250 $10.88 to $13.54 3,060 -- 0.75% to 2.60% 12.08% to 14.19% 2003 147 $10.60 to $11.89 1,586 -- 0.75% to 2.55% 28.48% to 30.78% 2002 9 $8.27 to $8.35 75 (c) 0.75% to 2.20% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING PIMCO Total Return 2004 191 $10.51 to $11.50 2,116 -- 0.75% to 1.35% 2.94% to 3.51% 2003 176 $10.21 to $11.11 1,918 4.14 0.75% to 1.35% 2.89% to 3.35% 2002 55 $10.75 593 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Salomon Brothers Aggressive Growth 2004 9,733 $10.37 to $11.74 113,031 -- 0.95% to 2.60% 6.69% to 8.40% 2003 1,285 $10.77 to $10.83 13,880 (d) 0.95% to 2.55% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING Salomon Brothers Fundamental Value 2004 69 $11.07 to $12.72 809 -- 0.75% to 1.35% 6.93% to 7.63% 2003 56 $10.31 to $11.85 600 1.64 0.75% to 1.35% 39.32% to 39.68% 2002 1 $7.41 9 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
287 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING Salomon Brothers Investors Value 2004 57 $10.72 to $12.66 $ 651 0.99% 0.75% to 1.35% 8.70% to 9.27% 2003 36 $9.85 to $11.62 362 0.55 0.75% to 1.20% 29.95% to 30.35% 2002 -- $7.61 4 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING T. Rowe Price Diversified Mid Cap Growth 2004 46 $10.61 to $12.94 529 -- 0.75% to 1.35% 7.07% to 7.72% 2003 53 $9.78 to $12.04 557 (d) 0.75% to 1.35% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING T. Rowe Price Growth Equity 2004 268 $10.51 to $12.51 2,982 0.04 0.75% to 1.35% 8.43% to 8.92% 2003 229 $9.68 to $11.51 2,295 0.16 0.75% to 1.20% 29.07% to 29.65% 2002 19 $7.51 to $7.52 144 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING UBS U.S. Large Cap Equity 2004 61 $10.22 to $12.76 674 0.52 0.75% to 2.20% 13.09% to 13.77% 2003 10 $9.02 to $11.25 97 (d) 0.75% to 1.35% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING Van Kampen Comstock 2004 8,544 $11.02 to $13.39 103,284 -- 0.75% to 2.60% 13.74% to 15.84% 2003 3,551 $10.41 to $11.58 37,583 1.07 0.75% to 2.55% 26.33% to 28.66% 2002 210 $8.24 to $8.34 1,737 (c) 0.75% to 2.40% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
288 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING Van Kampen Equity and Income 2004 23 $10.37 to $12.57 $ 256 --% 0.75% to 1.35% 9.16% to 9.79% 2003 9 $9.50 to $11.48 89 -- 0.75% to 1.35% 25.99% 2002 -- $7.54 2 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING GET U.S. Core Portfolio - Series 1 2004 16,487 $10.22 to $10.51 170,855 0.66 1.25% to 3.05% 0.29% to 2.14% 2003 21,571 $10.19 to $10.29 220,805 (d) 1.25% to 3.05% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING GET U.S. Core Portfolio - Series 2 2004 11,145 $10.05 to $10.29 113,368 0.09 1.25% to 3.05% 0.50% to 2.39% 2003 16,692 $10.00 to $10.05 167,331 (d) 1.25% to 3.05% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING GET U.S. Core Portfolio - Series 3 2004 14,042 $9.82 to $10.01 139,161 -- 1.25% to 3.05% -1.70% to -0.10% 2003 897 $9.99 to $10.00 8,966 (d) 0.95% to 2.55% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING GET U.S. Core Portfolio - Series 4 2004 7,380 $10.28 to $10.43 76,373 (e) 1.25% to 3.10% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e)
289 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ------------------ ING GET U.S. Core Portfolio - Series 5 2004 4,121 $10.40 to $10.51 $ 43,088 (e)% 1.25% to 3.10% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING GET U.S. Core Portfolio - Series 6 2004 5,992 $10.04 to $10.09 60,314 (e) 1.25% to 3.10% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING GET U.S. Core Portfolio - Series 7 2004 127 $9.99 to $10.00 1,268 (e) 0.95% to 2.20% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) ING VP Worldwide Growth 2004 7,951 $6.78 to $11.88 56,073 0.77 0.90% to 2.55% 6.73% to 8.59% 2003 7,678 $6.35 to $6.75 50,319 -- 0.90% to 2.55% 25.74% to 27.95% 2002 5,299 $5.05 to $5.28 27,358 2.00 0.90% to 2.55% -27.02% to -25.42% 2001 2,863 $6.92 to $7.08 20,014 -- 0.90% to 2.25% -20.18% to -19.36% 2000 635 $8.72 to $8.78 5,554 (a) (a) (a) ING VP Balanced 2004 259 $11.87 to $12.27 3,120 2.07 0.75% to 1.35% 7.70% to 8.20% 2003 109 $11.04 to $11.34 1,231 (d) 0.75% to 1.20% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d)
290 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- ING VP Growth 2004 36 $9.42 to $12.16 $ 356 --% 0.75% to 1.35% 5.49% to 6.25% 2003 32 $8.90 to $11.49 292 -- 0.75% to 1.35% 28.61% to 29.11% 2002 7 $6.94 46 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING VP Index Plus LargeCap 2004 13,139 $9.38 to $12.53 128,155 1.02 0.75% to 2.60% 7.53% to 9.42% 2003 6,637 $8.72 to $11.48 59,693 0.49 0.75% to 2.55% 22.64% to 24.90% 2002 634 $7.11 to $7.31 4,589 0.15 0.75% to 2.55% -29.03% to -22.23% 2001 87 $9.36 to $9.40 812 2.73 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) ING VP Index Plus MidCap 2004 6,532 $10.84 to $13.68 79,289 0.30 0.75% to 2.60% 13.39% to 15.55% 2003 1,784 $10.83 to $11.87 19,893 0.21 0.75% to 2.55% 28.78% to 31.02% 2002 692 $8.41 to $8.64 5,909 0.31 0.75% to 2.55% -14.79 to -12.82% 2001 83 $9.87 to $9.91 820 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) ING VP Index Plus SmallCap 2004 5,386 $11.23 to $14.45 68,985 0.08 0.75% to 2.60% 18.63% to 20.80% 2003 1,420 $11.03 to $11.99 16,341 0.06 0.75% to 2.55% 32.47% to 34.83% 2002 465 $8.47 to $8.70 4,005 0.36 0.75% to 2.55% -15.89% to -13.95% 2001 67 $10.07 to $10.11 680 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) ING VP Intermediate Bond 2004 17,871 $10.67 to $11.68 203,365 8.87 0.75% to 2.25% 2.19% to 3.82% 2003 6,454 $10.34 to $11.25 71,483 2.15 0.75% to 2.25% 3.69% to 5.14% 2002 4,668 $10.58 to $10.69 49,590 (c) 0.80% to 2.25% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
291 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) -------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING VP International Equity 2004 22 $11.04 to $14.11 $ 265 0.87% 0.75% to 1.35% 15.75% to 15.97% 2003 18 $9.52 to $12.19 197 (d) 0.75% to 1.00% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING VP Small Company 2004 101 $11.58 to $13.37 1,267 0.28 0.75% to 1.35% 12.51% to 13.26% 2003 82 $10.26 to $11.84 876 0.19 0.75% to 1.35% 36.25% to 36.64% 2002 21 $7.54 to $7.56 156 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING VP Value Opportunity 2004 389 $8.38 to $12.48 3,478 0.77 0.75% to 2.55% 7.16% to 9.05% 2003 283 $7.82 to $8.18 2,270 0.60 0.75% to 2.55% 21.05% to 23.38% 2002 166 $6.46 to $6.63 1,086 0.40 0.75% to 2.55% -28.22% to -26.66% 2001 33 $9.00 to $9.04 298 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) ING VP Convertible 2004 686 $10.33 to $13.02 8,608 2.47 0.95% to 2.60% 4.94% to 6.63% 2003 326 $11.24 to $12.21 3,925 4.96 0.95% to 2.55% 23.73% to 25.88% 2002 107 $9.48 to $9.70 1,034 3.17 0.95% to 2.55% -9.37% to -7.79% 2001 18 $10.46 to $10.52 194 (10.36) 0.95% to 2.20% (b) 2000 (b) (b) (b) (b) (b) (b) ING VP Financial Services 2004 1,287 $11.00 to $11.13 14,250 (e) 0.95% to 2.60% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e)
292 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) -------------------------------------- ------ ------------------ -------- ------- -------------- ------------------ ING VP Growth and Income 2004 139 $12.33 to $13.02 $ 1,776 2.11% 0.75% to 1.20% 6.85% to 7.25% 2003 143 $11.54 to $12.14 1,723 (d) 0.75% to 1.20% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ING VP International Value 2004 94 $12.53 to $13.97 1,244 0.90 0.75% to 1.20% 15.70% to 16.13% 2003 48 $10.86 to $12.05 534 0.35 0.75% to 1.20% 28.52% to 28.81% 2002 5 $8.45 to $8.47 42 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING VP LargeCap Growth 2004 208 $8.64 to $9.14 1,873 3.15 0.95% to 2.55% 9.92% to 11.74% 2003 240 $7.86 to $8.18 1,941 -- 0.95% to 2.55% 29.70% to 31.72% 2002 163 $6.06 to $6.21 1,006 0.48 0.95% to 2.25% -36.68% to -35.45% 2001 56 $9.57 to $9.62 533 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) ING VP MagnaCap 2004 3,036 $9.42 to $12.00 29,639 1.40 0.90% to 2.55% 6.20% to 7.99% 2003 3,033 $8.87 to $9.28 27,551 0.74 0.90% to 2.55% 27.26% to 29.61% 2002 1,746 $7.00 to $7.16 12,338 1.02 0.90% to 2.25% -24.73% to -23.74% 2001 579 $9.30 to $9.39 5,402 1.36 0.90% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b) ING VP MidCap Opportunities 2004 4,282 $7.28 to $12.83 31,955 -- 0.75% to 2.25% 10.03% to 10.29% 2003 29 $9.82 to $11.66 280 -- 0.75% to 1.00% 15.94% 2002 2 $7.24 12 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
293 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- ING VP SmallCap Opportunities 2004 15,335 $6.62 to $13.09 $103,698 --% 0.75% to 2.25% 7.47% to 9.03% 2003 14,450 $6.16 to $12.02 90,453 -- 0.75% to 2.25% 35.38% to 37.47% 2002 6,553 $4.55 to $4.67 30,118 -- 0.75% to 2.25% -45.05% to -44.14% 2001 1,737 $8.28 to $8.36 14,437 (b) 0.90% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b) AIM V.I. Capital Appreciation 2004 7 $9.95 to $12.17 69 -- 0.75% to 1.00% 5.28% to 5.48% 2003 8 $9.42 to $11.56 77 -- 0.75% to 1.10% 28.24% 2002 4 $7.40 27 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) AIM V.I. Core Equity 2004 15 $10.90 to $12.22 162 0.59 0.75% to 1.20% 7.57% to 7.87% 2003 17 $10.17 to $11.36 175 0.93 0.75% to 1.00% 23.12% 2002 5 $8.26 41 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) AIM V.I. Dent Demographic Trends 2004 6,419 $10.19 to $11.37 67,220 -- 0.90% to 2.60% 5.16% to 6.97% 2003 5,905 $9.69 to $10.73 58,307 -- 0.90% to 2.55% 33.84% to 36.04% 2002 1,550 $7.24 to $7.38 11,335 -- 0.95% to 2.55% -34.00% to -32.91% 2001 323 $10.97 to $11.00 3,550 (b) 0.95% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b) AIM V.I. Financial Services 2004 5,209 $10.33 to $11.92 55,511 0.68 0.90% to 2.55% 5.84% to 7.68% 2003 5,976 $9.76 to $11.16 59,604 0.67 0.80% to 2.55% 26.26% to 28.50% 2002 2,931 $7.73 to $7.92 22,941 1.15 0.90% to 2.55% -17.15% to -15.76% 2001 256 $9.33 to $9.39 2,404 2.70 0.95% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b)
294 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- AIM V.I. Growth 2004 410 $9.29 to $11.55 $ 3,975 --% 0.95% to 2.60% 5.21% to 6.99% 2003 302 $8.83 to $10.83 2,729 -- 0.95% to 2.55% 27.60% to 29.60% 2002 121 $6.92 to $7.06 848 -- 0.95% to 2.55% -32.94% to -31.79% 2001 43 $10.32 to $10.35 443 1.09 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) AIM V.I. Health Sciences 2004 9,090 $9.82 to $11.80 92,029 -- 0.80% to 2.55% 4.80% to 6.66% 2003 9,056 $9.37 to $11.15 86,664 -- 0.80% to 2.55% 24.60% to 26.81% 2002 4,013 $7.52 to $7.72 30,558 -- 0.90% to 2.55% -26.42% to -24.98% 2001 1,052 $10.22 to $10.29 10,790 3.60 0.95% to 2.55% (b) 2000 (b) (b) (b) (b) (b) (b) AIM V.I. Leisure 2004 4,713 $10.86 to $12.18 55,920 0.37 0.95% to 2.60% 10.48% to 12.33% 2003 3,232 $10.50 to $10.91 34,410 -- 0.95% to 2.55% 25.45% to 27.42% 2002 724 $8.39 to $8.47 6,097 (c) 0.95% to 2.25% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) AIM V.I. Premier Equity 2004 16 $8.81 to $11.82 157 -- 0.75% to 1.20% 4.24% to 4.72% 2003 19 $8.43 to $11.32 174 -- 0.75% to 1.20% 23.61% to 23.83% 2002 12 $6.82 to $6.84 80 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) AIM V.I. Utilities 2004 8,709 $8.63 to $13.44 77,551 1.58 0.80% to 2.60% 20.36% to 22.56% 2003 3,684 $7.17 to $7.49 26,968 1.62 0.80% to 2.55% 14.54% to 16.49% 2002 1,227 $6.26 to $6.43 7,783 1.12 0.95% to 2.55% -22.62% to -20.91% 2001 119 $8.09 to $8.13 964 3.07 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b)
295 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) -------------------------------------- ------ ------------------ -------- ------- -------------- ------------------ AllianceBernstein Growth and Income 2004 1,616 $10.10 to $12.13 $ 16,976 0.75% 0.95% to 2.60% 8.49% to 10.22% 2003 1,205 $9.31 to $11.04 11,497 0.62 0.95% to 2.55% 28.77% to 30.95% 2002 644 $7.23 to $7.40 4,730 3.91 0.95% to 2.55% -24.45% to -23.00% 2001 172 $9.57 to $9.61 1,653 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) AllianceBernstein Premier Growth 2004 571 $8.14 to $11.32 4,894 -- 0.95% to 2.55% 5.58% to 7.36% 2003 448 $7.71 to $10.58 3,540 -- 0.95% to 2.55% 20.28% to 22.26% 2002 322 $6.41 to $6.56 2,094 -- 0.95% to 2.55% -32.66% to -31.52% 2001 114 $9.52 to $9.58 1,091 (b) 0.95% to 2.40% (b) 2000 (b) (b) (b) (b) (b) (b) AllianceBernstein Value 2004 864 $10.84 to $12.55 10,410 0.78 0.95% to 2.60% 10.48% to 12.34% 2003 605 $10.59 to $11.21 6,560 0.69 0.95% to 2.55% 25.18% to 27.25% 2002 315 $8.46 to $8.66 2,709 0.80 0.95% to 2.55% -15.23% to -13.83% 2001 59 $9.98 to $10.05 595 (b) 0.95% to 2.40% (b) 2000 (b) (b) (b) (b) (b) (b) Fidelity(R) VIP Equity-Income 2004 22,427 $10.58 to $12.92 245,414 1.17 0.75% to 2.60% 8.40% to 10.38% 2003 14,541 $9.76 to $11.73 145,256 0.47 0.75% to 2.55% 26.75% to 29.08% 2002 3,054 $7.70 to $7.91 23,851 1.09 0.75% to 2.55% -18.95% to -17.69% 2001 203 $9.55 to $9.61 1,949 (b) 0.95% to 2.20% (b) 2000 (b) (b) (b) (b) (b) (b) Fidelity(R) VIP Growth 2004 28,601 $8.13 to $11.89 239,959 0.13 0.75% to 2.60% 0.49% to 2.36% 2003 22,435 $8.09 to $11.65 185,642 0.03 0.75% to 2.55% 29.23% to 31.57% 2002 3,655 $6.26 to $6.43 23,212 0.02 0.90% to 2.55% -32.32% to -30.79% 2001 75 $9.25 to $9.29 693 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b)
296 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) -------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- Fidelity(R) VIP Contrafund(R) 2004 3,777 $10.75 to $13.24 46,859 0.15 0.75% to 2.60% 12.23% to 14.31% 2003 1,945 $10.63 to $11.62 21,313 0.13 0.75% to 2.55% 25.06% to 27.26% 2002 513 $8.50 to $8.73 4,438 0.37 0.75% to 2.55% -12.19% to -10.28% 2001 122 $9.68 to $9.73 1,183 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) Fidelity(R) VIP Overseas 2004 33 $12.59 to $14.14 $ 458 0.76% 0.75% to 1.35% 12.22% to 12.41% 2003 69 $11.20 to $12.60 860 -- 0.75% to 1.00% 41.95% 2002 1 $7.89 9 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) Franklin Small Cap Value Securities 2004 69 $14.39 to $14.94 1,018 0.16 0.75% to 1.35% 22.57% to 22.82% 2003 20 $11.74 to $11.79 236 -- 0.75% to 0.95% 30.88% to 31.15% 2002 2 $8.97 to $8.99 17 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) ING Goldman Sachs(R) Capital Growth 2004 1 $12.12 to $12.15 9 (e) 1.00% to 1.20% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) Greenwich Appreciation 2004 34 $18.29 to $18.53 626 1.09 1.25% to 1.40% 7.27% to 7.42% 2003 39 $17.05 to $17.25 663 0.64 1.25% to 1.40% 22.84% to 23.04% 2002 42 $13.88 to $14.02 589 1.50 1.25% to 1.40% -18.69% to -18.58% 2001 42 $17.07 to $17.22 723 1.15 1.25% to 1.40% -5.32% to -5.18% 2000 46 $18.03 to $18.16 831 (a) (a) (a)
297 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- Janus Aspen Series Balanced 2004 381 $11.10 to $11.69 $ 4,286 2.15% 0.75% to 1.20% 6.97% to 7.47% 2003 427 $10.36 to $10.91 4,464 2.30 0.75% to 1.20% 12.49% to 12.86% 2002 54 $9.21 to $9.25 496 (c) 0.75% to 1.10% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) Janus Aspen Series Flexible Income 2004 153 $10.55 to $11.92 1,768 5.99 0.75% to 1.20% 2.43% to 2.94% 2003 165 $10.30 to $11.58 1,873 4.27 0.75% to 1.20% 5.02% to 5.37% 2002 26 $10.97 to $10.99 283 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) Janus Aspen Series Growth 2004 75 $9.60 to $12.03 752 -- 0.75% to 1.10% 3.11% to 3.41% 2003 103 $9.31 to $11.66 1,007 -- 0.75% to 1.20% 30.03% to 30.46% 2002 27 $7.19 192 (c) 0.75% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) Janus Aspen Series Worldwide Growth 2004 760 $8.28 to $12.00 6,719 0.89 0.75% to 2.55% 1.85% to 3.76% 2003 856 $8.13 to $11.60 7,200 0.84 0.75% to 2.55% 20.44% to 22.66% 2002 515 $6.75 to $6.93 3,534 0.52 0.75% to 2.55% -27.58% to 26.20% 2001 139 $9.32 to $9.39 1,298 0.33 0.95% to 2.40% (b) 2000 (b) (b) (b) (b) (b) (b) Colonial Small Cap Value 2004 14,445 $16.50 to $16.78 240,424 0.50 1.25% to 2.25% 19.83% to 21.00% 2003 2,966 $13.77 to $13.87 40,999 (d) 1.25% to 2.25% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d)
298 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) -------------------------------------- ------ ------------------ -------- ------- -------------- ------------------ Liberty Asset Allocation 2004 46 $12.91 to $13.00 $ 601 2.33% 1.40% to 1.80% 8.03% to 8.42% 2003 50 $11.95 to $11.99 601 (d) 1.40% to 1.80% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) Liberty Equity 2004 73 $8.30 to $8.53 618 0.63 1.40% to 1.90% 5.46% to 6.09% 2003 81 $7.87 to $8.04 648 0.35 1.40% to 1.90% 21.83% to 22.37% 2002 75 $6.46 to $6.57 487 0.23 1.40% to 1.90% -29.17% to -28.66% 2001 88 $9.12 to $9.21 807 -- 1.40% to 1.80% -19.72% to -19.28% 2000 94 $11.36 to $11.41 1,071 (a) (a) (a) Liberty Federal Securities 2004 9 $10.29 to $10.37 90 5.65 1.40% to 1.80% 2.38% to 2.78% 2003 9 $10.07 to $10.09 87 (d) 1.40% to 1.70% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) Liberty Small Company Growth 2004 5 $16.36 to $16.47 81 -- 1.40% to 1.80% 9.50% to 9.95% 2003 5 $14.94 to $14.98 75 (d) 1.40% to 1.80% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) Oppenheimer Global Securities 2004 555 $12.69 to $14.76 7,640 0.85 0.75% to 1.35% 17.33% to 18.03% 2003 257 $10.80 to $12.54 2,901 0.19 0.75% to 1.35% 41.36% to 41.72% 2002 27 $7.64 to $7.67 205 (c) 0.75% to 1.10% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c)
299 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- Oppenheimer Strategic Bond 2004 124 $11.66 to $13.35 $ 1,496 4.37% 0.75% to 1.35% 6.97% to 7.66% 2003 60 $10.90 to $12.40 702 0.56 0.75% to 1.35% 15.90% to 16.21% 2002 2 $10.65 to $10.67 16 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) PIMCO StocksPLUS Growth and Income 2004 15,361 $10.67 to $11.77 171,023 1.61 0.80% to 2.25% 8.32% to 9.90% 2003 18,658 $9.85 to $10.71 190,536 2.08 0.80% to 2.25% 27.43% to 29.35% 2002 22,790 $7.73 to $8.28 181,637 2.69 0.80% to 2.25% -22.00% to -20.84% 2001 23,718 $9.91 to $10.46 241,065 4.22 0.80% to 2.25% -13.15% to -12.17% 2000 22,158 $11.56 to $11.91 258,484 (a) (a) (a) Pioneer Equity-Income VCT 2004 139 $11.45 to $13.04 1,659 1.95 0.75% to 1.35% 14.47% to 15.22% 2003 99 $9.98 to $11.35 1,010 2.02 0.75% to 1.35% 20.97% to 21.38% 2002 22 $8.27 to $8.28 179 (c) 0.75% to 0.95% (c) 2001 (c) (c) (c) (c) (c) (c) 2000 (c) (c) (c) (c) (c) (c) Pioneer Fund VCT 2004 8,483 $9.55 to $12.55 83,525 0.96 0.75% to 2.60% 8.03% to 10.17% 2003 6,927 $8.84 to $11.43 62,533 0.87 0.75% to 2.55% 20.27% to 22.55% 2002 2,697 $7.35 to $7.54 20,064 1.08 0.80% to 2.55% -21.47% to -19.87% 2001 243 $9.36 to $9.41 2,275 0.91 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b) Pioneer Mid-Cap Value VCT 2004 32,284 $14.34 to $15.51 485,700 0.29 0.75% to 2.25% 19.08% to 20.83% 2003 15,149 $11.94 to $12.84 190,493 0.17 0.75% to 2.25% 33.98% to 36.16% 2002 5,685 $9.27 to $9.43 53,062 0.56 0.75% to 2.25% -13.36% to -12.03% 2001 480 $10.70 to $10.72 5,139 (b) 1.25% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b)
300 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- Pioneer Small Company VCT 2004 743 $10.37 to $11.89 $ 7,982 --% 0.95% to 2.60% 10.32% to 12.17% 2003 664 $9.40 to $10.61 6,391 -- 0.95% to 2.55% 22.08% to 23.95% 2002 437 $7.70 to $7.89 3,417 0.03 0.95% to 2.55% -19.29% to -17.90% 2001 98 $9.54 to $9.61 938 (b) 0.95% to 2.55% (b) 2000 (b) (b) (b) (b) (b) (b) ProFund VP Bull 2004 12,090 $8.49 to $11.71 106,145 -- 0.90% to 2.55% 6.22% to 7.89% 2003 10,431 $8.04 to $8.37 85,664 -- 0.90% to 2.40% 22.83% to 24.55% 2002 4,706 $6.57 to $6.72 31,265 -- 0.90% to 2.25% -25.68% to -24.66% 2001 2,316 $8.84 to $8.92 20,583 (b) 1.25% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b) ProFund VP Europe 30 2004 4,033 $8.94 to $13.58 37,237 0.12 0.90% to 2.60% 11.47% to 13.25% 2003 3,999 $8.02 to $12.09 32,874 0.13 0.90% to 2.55% 35.74% to 37.54% 2002 2,589 $5.96 to $6.10 15,627 -- 0.90% to 2.25% -27.49% to -26.42% 2001 764 $8.22 to $8.29 6,312 (b) 0.90% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b) ProFund VP Rising Rates Opportunity 2004 6,392 $8.10 to $8.66 52,378 -- 0.95% to 2.60% -13.18% to -11.73% 2003 2,457 $9.33 to $9.38 22,975 (d) 0.95% to 2.55% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) ProFund VP Small Cap 2004 12,755 $11.12 to $12.70 147,644 -- 0.90% to 2.60% 13.82% to 15.68% 2003 12,620 $9.84 to $11.07 127,245 -- 0.90% to 2.55% 39.52% to 41.54% 2002 5,371 $7.11 to $7.27 38,612 -- 0.90% to 2.25% -24.20% to -23.15% 2001 2,118 $9.38 to $9.46 19,968 (b) 1.25% to 2.25% (b) 2000 (b) (b) (b) (b) (b) (b)
301 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- Jennison 2004 11,562 $5.57 to $11.46 $ 67,085 0.04% 0.90% to 2.60% 6.50% to 8.29% 2003 10,879 $5.23 to $5.56 58,724 -- 0.90% to 2.55% 26.33% to 28.41% 2002 8,904 $4.14 to $4.33 37,748 -- 0.90% to 2.55% -33.33% to -31.81% 2001 7,335 $6.21 to $6.35 45,991 -- 0.90% to 2.25% -20.20% to -19.62% 2000 987 $7.82 to $7.85 7,732 (a) (a) (a) SP William Blair International Growth 2004 16,960 $6.15 to $13.44 108,380 -- 0.90% to 2.55% 13.05% to 15.16% 2003 12,262 $5.44 to $11.78 68,613 -- 0.90% to 2.55% 35.66% to 37.98% 2002 3,751 $4.01 to $4.16 15,341 -- 0.90% to 2.55% -25.05% to -23.53% 2001 2,097 $5.35 to $5.44 11,310 0.24 0.90% to 2.25% -37.19% to -36.52% 2000 318 $8.55 to $8.57 2,720 (a) (a) (a) Putnam VT Discovery Growth 2004 363 $8.06 to $10.93 3,031 -- 0.95% to 2.55% 4.81% to 6.50% 2003 403 $7.69 to $8.00 3,173 -- 0.95% to 2.55% 28.60% to 30.72% 2002 271 $5.98 to $6.12 1,645 -- 0.95% to 2.55% -31.34% to -30.22% 2001 66 $8.71 to $8.77 577 (b) 0.95% to 2.40% (b) 2000 (b) (b) (b) (b) (b) (b) Putnam VT Growth and Income 2004 324 $9.80 to $12.30 3,362 1.62 0.95% to 2.55% 8.29% to 10.08% 2003 338 $9.05 to $9.62 3,201 1.40 0.95% to 2.55% 24.31% to 26.25% 2002 220 $7.28 to $7.62 1,662 1.62 0.95% to 2.55% -21.30% to -19.79% 2001 48 $9.25 to $9.50 455 (b) 0.95% to 2.20% (b) 2000 (b) (b) (b) (b) (b) (b) Putnam VT International Growth and Income 2004 278 $12.54 to $14.31 3,609 1.26 0.95% to 2.55% 17.86% to 19.78% 2003 394 $10.64 to $11.07 4,299 1.40 0.95% to 2.55% 34.51% to 36.67% 2002 371 $7.91 to $8.10 2,981 0.28 0.95% to 2.55% -16.21% to -14.65% 2001 64 $9.44 to $9.49 604 (b) 0.95% to 1.90% (b) 2000 (b) (b) (b) (b) (b) (b)
302 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) ------------------------------------- ------ ------------------ -------- ------- -------------- ------------------- Smith Barney High Income 2004 17 $15.44 to $15.67 $ 265 7.33% 1.25% to 1.40% 8.89% to 9.05% 2003 22 $14.18 to $14.37 308 6.70 1.25% to 1.40% 25.71% to 25.94% 2002 28 $11.28 to $11.41 319 2 4.02 1.25% to 1.40% -4.57% to -4.44% 2001 31 $11.82 to $11.94 370 1 2.01 1.25% to 1.40% -5.14% to -4.94% 2000 36 $12.46 to $12.56 446 (a) (a) (a) Smith Barney International All Cap Growth 2004 17 $12.88 to $13.07 214 0.92 1.25% to 1.40% 16.14% to 16.38% 2003 20 $11.09 to $11.23 221 0.95 1.25% to 1.40% 25.74% to 25.90% 2002 23 $8.82 to $8.92 201 0.95 1.25% to 1.40% -26.74% to -26.64% 2001 25 $12.04 to $12.16 300 -- 1.25% to 1.40% -32.13% to -32.03% 2000 26 $17.74 to $17.89 455 (a) (a) (a) Smith Barney Large Cap Value 2004 22 $19.34 to $19.62 422 1.93 1.25% to 1.40% 9.08% to 9.24% 2003 23 $17.73 to $17.96 405 1.55 1.25% to 1.40% 25.83% to 25.95% 2002 26 $14.09 to $14.26 371 3.74 1.25% to 1.40% -26.46% to -26.30% 2001 29 $19.16 to $19.35 563 1.39 1.25% to 1.40% -9.45% to -9.33% 2000 33 $21.16 to $21.34 692 (a) (a) (a) Smith Barney Money Market 2004 3 $12.37 37 -- 1.40% -0.56% 2003 4 $12.44 50 1.04 1.40% -0.72% 2002 11 $12.53 to $12.68 143 1.30 1.25% to 1.40% -0.16% to 0.00% 2001 17 $12.55 to $12.68 221 3.49 1.25% to 1.40% 2.28% to 2.42% 2000 13 $12.27 to $12.38 156 (a) (a) (a) UBS U.S. Allocation 2004 595 $9.38 to $12.00 5,827 0.75 0.95% to 2.55% 7.57% to 9.37% 2003 511 $8.72 to $11.01 4,584 0.49 0.95% to 2.55% 24.22% to 26.15% 2002 217 $7.02 to $7.19 1,548 0.45 0.95% to 2.55% -25.08% to -23.67% 2001 84 $9.37 to $9.42 787 (b) 0.95% to 2.20% (b) 2000 (b) (b) (b) (b) (b) (b)
303 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- Wells Fargo VT Asset Allocation 2004 166 $11.27 to $11.37 $ 1,880 2.52% 1.40% to 2.10% 7.21% 2003 2 $10.54 25 (d) 1.90% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) Wells Fargo VT Equity Income 2004 75 $11.68 to $11.78 882 1.79 1.40% to 2.10% 8.93% 2003 1 $10.75 11 (d) 1.90% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) Wells Fargo VT Equity Value 2004 18 $11.69 to $11.75 211 (e) 1.65% to 2.10% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e) Wells Fargo VT Large Company Growth 2004 218 $10.37 to $10.46 2,266 -- 1.40% to 2.10% 1.27% 2003 3 $10.26 34 (d) 1.90% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) Wells Fargo VT Money Market 2004 38 $9.82 to $9.85 369 (e) 1.90% to 2.10% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e)
304 Separate Account B of ING USA Annuity and Life Insurance Company (formerly Golden American Life Insurance Company Separate Account B) Notes to Financial Statements - --------------------------------------------------------------------------------
Unit Fair Expense Total Value Net Investment Ratio(B) Return(C) Units (lowest to Assets Income (lowest to (lowest to Division (000's) highest) (000's) Ratio(A) highest) highest) --------------------------------------- ------ ------------------ -------- ------- -------------- ----------------- Wells Fargo VT Small Cap Growth 2004 48 $11.85 to $11.95 $ 569 --% 1.40% to 2.10% 11.65% 2003 1 $10.64 7 (d) 1.90% (d) 2002 (d) (d) (d) (d) (d) (d) 2001 (d) (d) (d) (d) (d) (d) 2000 (d) (d) (d) (d) (d) (d) Wells Fargo VT Total Return Bond 2004 47 $10.35 to $10.43 484 (e) 1.40% to 2.10% (e) 2003 (e) (e) (e) (e) (e) (e) 2002 (e) (e) (e) (e) (e) (e) 2001 (e) (e) (e) (e) (e) (e) 2000 (e) (e) (e) (e) (e) (e)
(a) Not provided for 2000. (b) As investment Division was not available until 2001, this data is not meaningful and is therefore not presented. (c) As investment Division was not available until 2002, this data is not meaningful and is therefore not presented. (d) As investment Division was not available until 2003, this data is not meaningful and is therefore not presented. (e) As investment Division was not available until 2004, this data is not meaningful and is therefore not presented. (A) The Investment Income Ratio represents dividends received by the Division, excluding capital gains distributions, divided by the average net assets. The recognition of investment income is determined by the timing of the declaration of dividends by the underlying fund in which the Division invests. (B) The Expense Ratio considers only the expenses borne directly by the Account and is equal to the mortality and expense charge, as defined in Note 3. Certain items in this table are presented as a range of minimum and maximum values; however, such information is calculated independently for each column in the table. (C) Total Return is calculated as the change in unit value for each Contract presented in the Statements of Assets and Liabilities. Certain items in this table are presented as a range of minimum and maximum values; however, such information is calculated independently for each column in the table. 305 PART C -- OTHER INFORMATION ITEM 24: FINANCIAL STATEMENTS AND EXHIBITS FINANCIAL STATEMENTS (a) (1) All financial statements are included in the Prospectus or the Statement of Additional Information as indicated therein (2) Schedules I and IV follow. All other schedules to the consolidated financial statements required by Article 7 of Regulation S-X are omitted because they are not applicable or because the information is included elsewhere in the consolidated financial statements or notes thereto. ING USA ANNUITY AND LIFE INSURANCE COMPANY, (A WHOLLY-OWNED SUBSIDIARY OF LION CONNECTICUT HOLDINGS INC.) Schedule I Summary of Investments - Other than Investments in Affiliates As of December 31, 2004 (In Millions)
AMOUNT SHOWN ON TYPE OF INVESTMENTS COST VALUE* BALANCE SHEET ---------------- ----------------- ---------------- Fixed maturities: U.S. government and government agencies and authorities $464.0 $ 464.7 $ 464.7 State, municipalities and political subdivisions 20.7 19.9 19.9 Public utilities securities 1,796.9 1,866.4 1,866.4 Other U.S. corporate securities 6,292.4 6,513.2 6,513.2 Foreign securities (1) 3,090.1 3,198.3 3,198.3 Residential mortgage-backed securities 3,440.3 3,461.8 3,461.8 Commercial mortgage-backed securities 1,107.8 1,139.7 1,139.7 Other asset-backed securities 1,934.2 1,933.8 1,933.8 ---------------- ----------------- ---------------- Total fixed maturities, including fixed maturities $ 18,146.4 $18,597.8 $18,597.8 pledged ================ ================= ================ Total equity securities $ 34.8 $ 35.3 $ 35.3 =============== ================= ================ Mortgage loans $ 3,851.8 $ 3,969.4 $ 3,851.8 Policy loans 169.0 169.0 169.0 Other investments 228.8 229.0 228.8 ---------------- ----------------- ---------------- Total investments $ 22,430.8 $ 23,000.5 $ 22,882.7 ================ ================= ================
* See Notes 2 and 3 of Notes to Financial Statements. (1)The term "foreign" includes foreign governments, foreign political subdivisions, foreign public utilities and all other bonds of foreign issuers. Substantially all of the Company's foreign securities are denominated in U.S. dollars. ING USA ANNUITY AND LIFE INSURANCE COMPANY, (A WHOLLY-OWNED SUBSIDIARY OF LION CONNECTICUT HOLDINGS INC.) Schedule IV Reinsurance Information As of and for the years ended December 31, 2004, 2003 and 2002 (In Millions)
PERCENTAGE OF GROSS CEDED ASSUMED NET ASSUMED TO NET -------------- ------------- ------------- -------------- ----------------- YEAR ENDED DECEMBER 31, 2004 Life insurance in force $ 7,405.6 $ 906.0 $ - $ 6,449.6 $ 0.0% Premiums: Life insurance 25.0 2.2 - 22.8 Accident and health insurance 0.4 0.4 - - -------------- ------------- ------------- -------------- Total premiums $ 25.4 $ 2.6 $ - $ 22.8 ============== ============= ============= ============== YEAR ENDED DECEMBER 31, 2003 Life insurance in force $ 8,001.4 $ 1,209.4 $ - $ 6,792.0 0.0% Premiums: Life insurance 27.4 1.4 - 26.0 Accident and health insurance 0.2 0.2 - - -------------- ------------- ------------- -------------- Total premiums $ 27.6 1.6 - 26.0 ============== ============= ============= ============== YEAR ENDED DECEMBER 31, 2002 Life insurance in force $ 8,722.9 $ 1,370.5 $ - $ 7,352.4 0.0% Premiums: Life insurance 38.4 1.6 - 36.8 Accident and health insurance 0.2 0.2 - - -------------- ------------- ------------- -------------- Total premiums $ 38.6 $ 1.8 $ - $ 36.8 ============== ============= ============= ==============
EXHIBITS (b) (1) Resolution of the board of directors of Depositor authorizing the establishment of the Registrant (1) (2) Not applicable (3)(a) Distribution Agreement between the Depositor and Directed Services, Inc. (1) (b) Dealers Agreement. (1) (c) Organizational Agreement (1) (d) Assignment Agreement for Organizational Agreement. (1) (e) Amendment to the Distribution Agreement between ING USA and DSI. (6) (4)(a) Individual Deferred Combination Variable and Fixed Annuity Contract (1) (4)(b) Group Deferred Combination Variable and Fixed Annuity Certificate (1) (4)(c) Individual Deferred Variable Annuity Contract (1) (4)(d) 403(b) Retirement Annuity Rider (4) (4)(e) Individual Retirement Annuity Rider (4) (4)(f) Simple Retirement Account Rider (4) (4)(g) ROTH Individual Retirement Annuity Rider (4) (4)(h) Company Address and Name Change Endorsement. (5) (5)(a) Individual Deferred Combination Variable and Fixed Annuity Application (4) (5)(b) Group Deferred Combination Variable and Fixed Annuity Enrollment Form (1) (6)(a) Amended and Restated Articles of Incorporation of ING USA Annuity and Life Insurance Company, dated (01/01/04). (5) (b) Amended and Restated By-Laws of ING USA annuity and Life Insurance Company, dated (01/01/04). (5) (c) Resolution of the board of directors for Powers of Attorney, dated (04/23/99) (1) (d) Articles of Merger and Agreement and Plan of Merger of USGALC, ULAIC, ELICI into GALIC and renamed ING USA Annuity and Life Insurance Company, dated (06/25/03). (5) (7) Not applicable (8)(a) Service Agreement between Golden American and Directed Services, Inc. (1) (b) Form of Participation Agreement between Golden American and ProFunds (1) (c) Participation Agreement between Golden American and ING Variable Products Trust (3) (d) Participation Agreement between Golden American and ING Variable Insurance Trust (3) (e) Participation Agreement between Golden American and AIM Variable Insurance Funds, Inc. (3) (f) Participation Agreement between Golden American and Fidelity Distributors Corporation (3) (9) Opinion and Consent of James A. Shuchart (10)(a) Consent of Independent Registered Public Accounting Firm (b) Consent of James A. Shuchart, incorporated in Item 9 of this Part C, together with the Opinion of James A. Shuchart. (11) Not applicable (12) Not applicable (13) Powers of Attorney (7) - ---------------------------- (1) Incorporated herein by reference to Item 24(b)(1) of Pre-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on June 24, 2000 (File Nos. 333-33914, 811-5626). (2) Incorporated herein by reference to Item 24(b)(13) of Post-Effective Amendment No. 1 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 24, 2001 (File Nos. 333-33914, 811-5626). (3) Incorporated herein by reference to Post-Effective Amendment No. 32 to a Registration Statement on Form N-4 for Separate Account B filed with the Securities and Exchange Commission on or about April 26, 2002 (File Nos. 033-23351, 811-5626). (4) Incorporated herein by reference to Item 24(b)(4)(h) of Post-Effective Amendment No. 34 to a Registration Statement on Form N-4 for Golden American Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 15, 2003 (File Nos. 033-23351, 811-5626). (5) Incorporated herein by reference to Post-Effective Amendment No. 25 to a Registration Statement on Form N-4 for ING USA Annuity and Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on February 13, 2004 (File Nos. 333-28679, 811-5626). (6) Incorporated herein by reference to Post-Effective Amendment No. 26 to a Registration Statement on Form N-4 for ING USA Annuity and Life Insurance Company Separate Account B filed with the Securities and Exchange Commission on April 13, 2004 (File Nos. 333-28755, 811-5626). (7) Incorporated herein by reference to Registration Statement on Form S-2 for ING Insurance Company of America Guaranteed Account, as filed with the Securities and Exchange Commission on April 7, 2005 (File No. 333-49581). ITEM 25: DIRECTORS AND OFFICERS OF THE DEPOSITOR Principal Position(s) Name Business Address with Depositor - ---- ---------------- -------------- Harry N. Stout 1475 Dunwoody Drive West Chester, PA 19380 President Jacques de Vaucleroy 5780 Powers Ferry Road Atlanta, GA 30327-4390 Director Catherine H. Smith 151 Farmington Avenue Hartford, CT 06156 Director Boyd G. Combs 5780 Powers Ferry Road Atlanta, GA 30327-4390 Senior Vice President Shaun P. Mathews 151 Farmington Avenue Hartford, CT 06156 Senior Vice President James R. Gelder 20 Washington Avenue South Minneapolis, MN 55402 Senior Vice President James R. McInnis 1475 Dunwoody Drive West Chester, PA 19380 Senior Vice President Stephen J. Preston 1475 Dunwoody Drive West Chester, PA 19380 Senior Vice President Kathleen A. Murphy 5780 Powers Ferry Road Atlanta, GA 30327-4390 Director Thomas J. McInerney 5780 Powers Ferry Road Atlanta, GA 30327-4390 Director and Chairman Andrew D. Chua 1290 Broadway President, ING Denver, CO 80203 Institutional Markets David A. Wheat Chief Financial Officer, 5780 Powers Ferry Road Director and Senior Vice Atlanta, GA 30327-4390 President Roger W. Fisher 5780 Powers Ferry Road Vice President and Chief Atlanta, GA 30327-4390 Accounting Officer David L. Jacobson 1475 Dunwoody Drive Vice President, Chief West Chester, PA 19380 Compliance Officer and Assistant Secretary David S. Pendergrass 5780 Powers Ferry Road Vice President and Atlanta, GA 30327-4390 Treasurer Paula Cludray-Engelke 20 Washington Avenue South Minneapolis, MN 55402 Secretary ITEM 26: PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT The following persons control or are under common control with the Depositor: DIRECTED SERVICES, INC. ("DSI") - This corporation is a general business corporation organized under the laws of the State of New York, and is wholly owned by ING Groep, N.V. ("ING"). The primary purpose of DSI is to act as a broker-dealer in securities. It acts as the principal underwriter and distributor of variable insurance products including variable annuities as required by the SEC. The contracts are issued by the Depositor. DSI also has the power to carry on a general financial, securities, distribution, advisory or investment advisory business; to act as a general agent or broker for insurance companies and to render advisory, managerial, research and consulting services for maintaining and improving managerial efficiency and operation. DSI is also registered with the SEC as an investment adviser. The Depositor is under common control with a New York company, ReliaStar Life Insurance Company of New York ("RLNY"). The primary purpose of RLNY is to offer variable products in the state of New York. The registrant is a segregated asset account of the Company and is therefore owned and controlled by the Company. All of the Company's outstanding stock is owned and controlled by ING. Various companies and other entities controlled by ING may therefore be considered to be under common control with the registrant or the Company. Such other companies and entities, together with the identity of their controlling persons (where applicable), are set forth on the following organizational chart. Subsidiaries of ING Groep N.V. Incorporated herein by reference to Item 28 in Post-Effective Amendment No. 9 to Registration Statement on Form N-6 for ReliaStar Life Insurance Company of New York Variable Life Separate Account I as filed on April 7, 2005 (File No. 333-47527). ITEM 27: NUMBER OF CONTRACT OWNERS As of March 31, 2005 there are 226,516 qualified contract owners and 196,691 non-qualified contract owners in ING USA's Separate Account B. ITEM 28: INDEMNIFICATION ING USA shall indemnify (including therein the prepayment of expenses) any person who is or was a director, officer or employee, or who is or was serving at the request of ING USA as a director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise for expenses (including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him with respect to any threatened, pending or completed action, suit or proceedings against him by reason of the fact that he is or was such a director, officer or employee to the extent and in the manner permitted by law. ING USA may also, to the extent permitted by law, indemnify any other person who is or was serving ING USA in any capacity. The Board of Directors shall have the power and authority to determine who may be indemnified under this paragraph and to what extent (not to exceed the extent provided in the above paragraph) any such person may be indemnified. ING USA or its parents may purchase and maintain insurance on behalf of any such person or persons to be indemnified under the provision in the above paragraphs, against any such liability to the extent permitted by law. Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers and controlling persons of the Registrant, as provided above or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification by the Depositor is against public policy, as expressed in the Securities Act of 1933, and therefore may be unenforceable. In the event that a claim of such indemnification (except insofar as it provides for the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in the successful defense of any action, suit or proceeding) is asserted against the Depositor by such director, officer or controlling person and the SEC is still of the same opinion, the Depositor or Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by the Depositor is against public policy as expressed by the Securities Act of 1933 and will be governed by the final adjudication of such issue. ITEM 29: PRINCIPAL UNDERWRITER (a) At present, Directed Services, Inc. ("DSI"), the Registrant's Distributor, serves as principal underwriter for all contracts issued by ING USA Annuity and Life Insurance Company. DSI is the principal underwriter for Separate Account A, Separate Account B, ING USA Separate Account EQ (formerly known as Equitable Life Insurance Company of Iowa Separate Account A), ReliaStar Life Insurance Company of New York Separate Account NY-B, Alger Separate Account A of ING USA and the ING Investors Trust. (b) The following information is furnished with respect to the principal officers and directors of Directed Services, Inc., the Registrant's Distributor. The principal business address for each officer and director following is 1475 Dunwoody Drive, West Chester, PA 19380-1478, unless otherwise noted. Name and Principal Positions and Offices Business Address with Underwriter - -------------------- --------------------- James R. McInnis Director and President Robert J. Hughes Director Matthew J. Rider Director Anita Woods Chief Financial Officer ING Insurance Operations 5780 Powers Ferry Road Atlanta, GA 30327-4390 David L. Jacobson Senior Vice President James A. Shuchart Secretary and General Counsel (c) 2004 Net Name of Underwriting Compensation Principal Discounts and on Brokerage Underwriter Commissions Redemption Commissions Compensation - ----------- ------------ ------------- ----------- ------------ DSI $374,955,000 $0 $0 $0 ITEM 30: LOCATION OF ACCOUNTS AND RECORDS All accounts, books and other documents required to be maintained by Section 31(a) of the 1940 Act and the rules under it relating to the securities described in and issued under this Registration Statement are maintained by the Depositor and located at: 909 Locust Street, Des Moines, Iowa 50309, 1475 Dunwoody Drive, West Chester, PA 19380 and at 5780 Powers Ferry Road, N.W., Atlanta, GA 30327-4390. ITEM 31: MANAGEMENT SERVICES None. ITEM 32: UNDERTAKINGS (a) Registrant hereby undertakes to file a post-effective amendment to this registration statement as frequently as it is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old so long as payments under the variable annuity contracts may be accepted. (b) Registrant hereby undertakes to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and, (c) Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. REPRESENTATIONS 1. The account meets the definition of a "separate account" under federal securities laws. 2. ING USA Annuity and Life Insurance Company hereby represents that the fees and charges deducted under the Contract described in the Prospectus, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred and the risks assumed by the Company. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that this Post-Effective Amendment to Registration Statement on Form N-4 meets the requirements of Securities Act Rule 485(b) for effectiveness and has caused this Post-Effective Amendment to be signed on its behalf in the City of West Chester and Commonwealth of Pennsylvania on this 20th day of April, 2005. SEPARATE ACCOUNT B (Registrant) By: ING USA ANNUITY AND LIFE INSURANCE COMPANY (Depositor) By: -------------------- Harry N. Stout* President (principle executive officer) By: /s/ Linda E. Senker ------------------------ Linda E. Senker Counsel of Depositor As required by the Securities Act of 1933, this Amendment to Registration Statement has been signed by the following persons in the capacities indicated on April 20, 2005. Signature Title - --------- ----- President - -------------------- (principle executive officer) Harry N. Stout* - -------------------- Chief Accounting Officer Roger W. Fisher* DIRECTORS - ---------------------- Chief Financial Officer David A. Wheat* - ---------------------- Jacques de Vaucleroy* - ---------------------- Thomas J. McInerney* - ---------------------- Kathleen A. Murphy* - ---------------------- Catherine H. Smith* By: /s/ Linda E. Senker ------------------------ Linda E. Senker Counsel of Depositor *Executed by Linda E. Senker on behalf of those indicated pursuant to Power of Attorney. EXHIBIT INDEX ITEM EXHIBIT PAGE # - ---- ------- ------ 9 Opinion and Consent of James A. Shuchart, Esq. EX-99.B9 10a Consent of Independent Registered Public Accounting Firm EX-99.B10A EX-99.B9 2 opinionltrn4.txt OPINION OF COUNSEL ING JAMES A. SHUCHART Counsel April 20, 2005 Members of the Board of Directors ING USA Annuity and Life Insurance Company 1475 Dunwoody Drive West Chester, PA 19380-1478 Gentlemen: In my capacity as Counsel for ING USA Annuity and Life Insurance Company (the "Company"), I have examined the form of Registration Statement on Form N-4 to be filed by you with the Securities and Exchange Commission in connection with the registration under the Securities Act of 1933, as amended, of an indefinite number of units of interest in Separate Account B of the Company (the "Account"). I am familiar with the proceedings taken and proposed to be taken in connection with the authorization, issuance and sale of units. Based upon my examination and upon my knowledge of the corporate activities relating to the Account, it is my opinion that: (1) The Company was organized in accordance with the laws of the State of Iowa and is a duly authorized stock life insurance company under the laws of Iowa and the laws of those states in which the Company is admitted to do business; (2) The Account is a validly established separate investment account of the Company; (3) Under Iowa law, the portion of the assets to be held in the Account equals the reserve and other liabilities for variable benefits under variable annuity contracts to be issued by the Account, and such assets are not chargeable with liabilities arising out of any other business the Company conducts; (4) The units and the variable annuity contracts will, when issued and sold in the manner described in the registration statement, be legal and binding obligations of the Company and will be legally and validly issued, fully paid, and non-assessable. I hereby consent to the filing of this opinion as an exhibit to the registration statement and to the reference to my name under the heading "Legal Matters" in the prospectus contained in said registration statement. In giving this consent I do not thereby admit that I come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933 or the Rules and Regulations of the Securities and Exchange Commission thereunder. Sincerely, /s/James A. Shuchart - --------------------- 1475 Dunwoody Drive Tel: 610-425-3563 West Chester, PA 19380-1478 Fax: 610-425-3520 EX-99.B10A 3 eyconsent.txt AUDITORS CONSENT Exhibit 10 (a) - Consent of Ernst and Young LLP, Independent Registered Public Accounting Firm We consent to the reference to our firm under the captions "Experts" and "Independent Registered Public Accounting Firm" and to the use of our report dated March 18, 2005 with respect to the consolidated financial statements of ING USA Annuity and Life Insurance Company as of December 31, 2004 and 2003 and for each of the three years in the period ended December 31, 2004, and to the use of our report dated March 15, 2005 with respect to the statement of assets and liabilities of Separate Account B of ING USA Annuity and Life Insurance Company as of December 31, 2004 and the related statement of operations for the period then ended, and the statements of changes in net assets for each of the two years in the period then ended, included in Post-Effective Amendment No. 7 to the Registration Statement (Form N-4 333-33914), and the related Prospectus and Statement of Additional Information of Separate Account B. Our audits (to which the date of our report is March 18, 2005) also included the financial statement schedules of ING USA Annuity and Life Insurance Company. These schedules are the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits. In our opinion, the financial statement schedules referred to above, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein /s/ Ernst & Young LLP Atlanta, Georgia April 15, 2005 -----END PRIVACY-ENHANCED MESSAGE-----