N-4/A 1 final.htm REGISTRATION STATEMENT final.htm - Generated by SEC Publisher for SEC Filing
As filed with the Securities and Exchange  Registration No. 333-153622 
Commission on April 8, 2009  Registration No. 811-05626 

UNITED STATES   
SECURITIES AND EXCHANGE COMMISSION   
Washington, D.C. 20549   
 
FORM N-4   
 
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933   
                   Pre-Effective Amendment No. 1  [X] 
                   Post-Effective Amendment No.  [  ] 
 
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)
Depositor’s Telephone Number, including Area Code: (610) 425-3400 
 
John S. (Scott) Kreighbaum, Esq.
ING Americas (U.S. Legal Services)
1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478 
(610) 425-3404
(Name and Address of Agent for Service of Process)

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 May 1, 2009 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 Contract 
 
PART A

PROSPECTUS

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ING Premium Plus

Flexible Premium Deferred Variable Annuity Contract with Premium Credit Provision

Issued By ING USA Annuity and Life Insurance Company Through Its Separate Account B

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This prospectus sets forth the information you ought to know before investing. You should keep the prospectus for future reference. Additional information has been filed with the Securities and Exchange Commission (SEC) and is available upon written or oral request without charge, including the Statement of Additional Information (SAI) dated May 1, 2009.

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The SAI is incorporated by reference into the prospectus, and    How to reach us… 
its table of contents appears on page 66.    Customer Service Center 
The SEC maintains a web site (www.sec.gov) that contains the  Call:  (800) 366-0066 
SAI, material incorporated by reference, and other information  Write:  P.O. Box 9271, Des Moines, Iowa, 50306-9271 
about us, which we file electronically. The reference number     
assigned to this contract is 333-153622.  Visit:  www.ingannuities.com 

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The Variable Sub-accounts* currently available under your contract…

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ING Investors Trust  ING Marsico Growth Portfolio (Class S)           (S Class) 
    ING T. Rowe Price Growth Equity Portfolio 
             (S Class) 
ING American Funds Asset Allocation Portfolio  ING MFS Total Return Portfolio (Class S)  ING Van Kampen Comstock Portfolio 
ING American Funds Bond Portfolio  ING MFS Utilities Portfolio (Class S)           (S Class) 
ING American Funds Growth Portfolio  ING Multi-Manager International Small Cap Equity  ING Van Kampen Equity and Income Portfolio 
ING American Funds Growth-Income Portfolio           Portfolio (Class S)           (S Class) 
ING American Funds International Portfolio  ING Oppenheimer Active Allocation  ING Variable Funds 
ING American Funds World Allocation Portfolio           Portfolio (Class S)  ING Growth and Income Portfolio (Class S) 
         (Class S)  ING PIMCO Total Return Bond Portfolio  ING Variable Portfolios, Inc. 
ING Artio Foreign Portfolio (Class S)           (Class S)  ING BlackRock Science and Technology 
ING BlackRock Inflation Protected Bond Portfolio  ING Pioneer Fund Portfolio (Class S)           Opportunities Portfolio (Class S) 
         (Class S)  ING Pioneer Mid Cap Value Portfolio (Class S)  ING Global Equity Option Portfolio (Class S) 
ING BlackRock Large Cap Growth Portfolio  ING Templeton Global Growth Portfolio (Class S)  ING Hang Seng Index Portfolio (Class S) 
         (Class S)  ING T. Rowe Price Capital Appreciation Portfolio  ING International Index Portfolio (Class S) 
ING Clarion Global Real Estate Portfolio (Class S)           (Class S)   
ING Clarion Real Estate Portfolio (Class S)  ING T. Rowe Price Equity Income Portfolio   
ING Evergreen Health Sciences Portfolio (Class S)           (Class S)  ING Russell™ Global Large Cap Index 75% 
ING Evergreen Omega Portfolio (Class S)             Portfolio (Class S) 
ING FMRSM Diversified Mid Cap Portfolio    ING Russell™ Large Cap Growth Index Portfolio 
         (Class S)  ING Van Kampen Global Franchise Portfolio           (Class S) 
ING Focus 5 Portfolio (Class S)           (Class S)  ING RussellTM Large Cap Index Portfolio (Class S) 
ING Franklin Income Portfolio (Class S)  ING Van Kampen Global Tactical Asset Allocation  ING Russell™ Large Cap Value Index Portfolio 
ING Franklin Mutual Shares Portfolio (Class S)           Portfolio (Class S)           (Class S) 
ING Franklin Templeton Founding Strategy  ING Van Kampen Growth and Income Portfolio  ING Russell™ Mid Cap Growth Index Portfolio 
         Portfolio (Class S)           (Class S)           (Class S) 
  ING Wells Fargo Small Cap Disciplined Portfolio  ING RussellTM Mid Cap Index Portfolio (Class S) 
ING Global Resources Portfolio (Class S)           (Class S)  ING RussellTM Small Cap Index Portfolio (Class S) 
  ING Partners, Inc.  ING Small Company Portfolio (Class S) 
ING JPMorgan Emerging Markets Equity Portfolio  ING Baron Small Cap Growth Portfolio  ING U. S. Bond Index Portfolio (Class S) 
         (Class S)           (S Class)  ING WisdomTreeSM Global High-Yielding Equity 
ING JPMorgan Small Cap Core Equity Portfolio             Index Portfolio (Class S) 
         (Class S)    ING Variable Products Trust 
  ING Davis New York Venture Portfolio  ING MidCap Opportunities Portfolio (Class S) 
ING LifeStyle Aggressive Growth Portfolio           (S Class)  ING Intermediate Bond Portfolio 
         (Class S)  ING JPMorgan Mid Cap Value Portfolio           (Class S) 
ING LifeStyle Conservative Portfolio (Class S)           (S Class)  BlackRock Variable Series Funds, Inc. 
ING LifeStyle Growth Portfolio (Class S)    BlackRock Global Allocation V.I. Fund 
ING LifeStyle Moderate Growth Portfolio (Class S)             (Class III) 
ING LifeStyle Moderate Portfolio (Class S)     
ING Liquid Assets Portfolio (Class S)  ING Templeton Foreign Equity Portfolio   

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MAY 1, 2009

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* A fixed option is also available, subject to state approval, namely, the M V A Account. See page 20.

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This contract has a premium credit. The charges for a contract with a premium credit may be higher than a contract without one. Over time, the amount of the premium credit may be more than offset by the charges.

The SEC has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

NOT: FDIC/NCUA INSURED; A DEPOSIT OF A BANK; BANK GUARANTEED; OR INSURED BY ANY FEDERAL GOVERNMENT AGENCY. MAY LOSE VALUE.

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RIGHT TO EXAMINE: You may cancel or void (free look) this contract within 10 days of receiving it (or longer as state law may require where delivered or issued for delivery as a replacement). We do not retain any investment gain on a contract that is free looked. See page 53.

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EXCHANGES: Your agent is permitted to recommend an exchange (replacement) only if it is in your best interest and only after evaluating your personal and financial situation and needs, tolerance for risk and the financial ability to pay for the contract.

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We pay compensation to broker/dealers whose registered representatives sell the contract. See page 54.

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Contents       
 
Contents  1     The MVA Account  20 
Glossary  3     State Variations  20 
Synopsis – The Contract  5     Other Contracts  21 
Synopsis – Fees and Expenses  7  Living Benefit Rider  21 
Condensed Financial Information  9     MGIB Rider  21 
           Purchase  21 
   Accumulation Value  9         Rider Date  21 
   Financial Statements  10         No Cancellation  21 
ING USA Annuity and Life Insurance Company  10         Termination  21 
   Organization and Operation  10         Rider Charge  22 
   Regulatory Matters  10         Fund Classifications  22 
Insurance and Retirement Plan Products and Other Regulatory Matters         Fixed Allocation Funds Automatic Rebalancing  22 
  10         MGIB Benefit Base  24 
       Investment Product Regulatory Issues  10         Calculation of MGIB Rollup Bases  24 
       Product Regulation  11         Calculation of MGIB Ratchet Bases  25 
Separate Account B  11         MGIB Date  26 
           MGIB Annuity Income  26 
   Organization and Operation  11         MGIB Income Factors  27 
Variable Sub-accounts  11         MGIB Annuity Options  27 
   Covered Funds, Special Funds and Excluded Funds  12         Notification  27 
Fees and Expenses  12         Change of Owner and Annuitant  27 
   Charge Deduction Variable Sub-account  12         Death of Owner  27 
   Surrender Charge  12  Withdrawals  41 
   Premium Tax  13     Regular Withdrawals  41 
   Annual Administrative Charge  13     Systematic Withdrawals  41 
   Excess Transfer Charge  13     Fixed Dollar Systematic Withdrawal Feature  42 
   Redemption Fees  13     IRA Withdrawals  43 
   Mortality & Expense Risk Charge  13  Transfers Among Your Investments (Excessive Trading   
   Asset Based Administrative Charge  13  Policy)  43 
   EMDB Rider Charge  13     Limits on Frequent or Disruptive Transfers  44 
   MGIB Rider Charge  14     Excessive Trading Policy  44 
   Underlying Portfolio Expenses  14     Limits Imposed by the Funds  45 
       Types of Revenue Received from Affiliated Funds  15     Agreements to Share Information with Fund Companies  46 
       Types of Revenue Received from Unaffiliated Funds  15     Dollar Cost Averaging  46 
The Annuity Contract  16     Automatic Rebalancing  46 
   Owner  16  Death Benefit Riders  47 
   Joint Owner  16     Standard Death Benefit Rider  47 
   Annuitant  16     Annual Ratchet Death Benefit Rider  47 
   Beneficiary  17     Max 7% Solution Death Benefit Rider  48 
   Change of Contract Owner or Beneficiary  17     Withdrawal Adjustments  49 
   Purchase and Availability of the Contract  17     Transfer Adjustments  49 
   Crediting of Premium Payments  18     EMDB Rider  49 
   Premium Credit  19     Death Benefit During the Income Phase  50 
   Administrative Procedures  20     Continuation After Death — Spouse  50 
   Cash Surrender Value  20     Continuation After Death — Not a Spouse  51 
   Surrendering to Receive the Cash Surrender Value  20     Required Distributions Upon Contract Owner’s Death  51 
   Variable Sub-account Changes  20  Annuity Payments  52 
 
ING Premium Plus – 152952  1     

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   Annuitization of Your Contract  52     Taxation of Non-Qualified Contracts  57 
   Selecting an Annuity Commencement Date  52         Contributions  57 
   Frequency of Annuity Payments  52         Taxation of Gains Prior to Distribution  57 
   The Annuity Plans  52         Taxation of Distributions  58 
       Payments for a Period Certain  52     Taxation of Qualified Contracts  60 
       Payments for a Period Certain and Life  52         General  60 
       Single Life Payments  52         Tax Deferral  60 
       Joint and Last Survivor Life Payments  52         Contributions  61 
   Annuity Payments When Payee Dies  52         Distributions – General  61 
Other Important Information  53         Withholding  64 
           Assignment and Other Transfers  64 
   Reports to Contract Owners  53     Tax Consequences of Living Benefits and Death Benefits  64 
   Suspension of Payments  53         Living Benefits  64 
   Misstatement of Age or Sex  53         Enhanced Death Benefits  64 
   Assignment  53     Possible Changes in Taxation  65 
   Contract Changes — Applicable Tax Law  53     Taxation of Company  65 
   Right to Examine Period  53  Statement of Additional Information  66 
   Special Arrangements  54  Appendix A – The Investment Portfolios  A1 
   Selling the Contract  54  Appendix B – Fixed Account II  B1 
   Voting Rights  56  Appendix C – Surrender Charge Example  C1 
   State Regulation  56     
   Legal Proceedings  56  Appendix D – Special and Excluded Funds Examples  D1 
Federal Tax Considerations  56  Appendix E – MGIB Examples  E1 
   Introduction  56  Appendix F – Fixed Allocation Funds Rebalancing  F1 
   Types of Contracts: Non-Qualified or Qualified  57     

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Notice to Contract Owners

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The contract is sold on a continuous basis. And the prospectus is updated at least annually, including for any changes with the contract, like the company: introducing or discontinuing the availability of a rider; liberalizing a benefit or exercising any rights reserved under the contract or a rider; or altering administrative procedures. The company may also make Variable Sub-account changes. Any change may or may not apply to all contracts. The prospectus reflects the status of the contract (and rider availability) as of May 1, 2009 and therefore may contain information that is inapplicable to your contract. In the event of any conflict with the prospectus, the terms of your contract and any riders will control.

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ING Premium Plus – 152952

2

Glossary

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This glossary defines the special terms used throughout the prospectus. A special term used in only one section of the prospectus is 
defined there.     
Accumulation Value – The sum of the Accumulation Value  Death Benefit – The amount paid to the Beneficiary upon 
         in the MVA Account and Variable Sub-accounts. Each           death of the Owner (or the Annuitant if any Owner is not 
         Variable Sub-account and the MVA Account will be             an individual) prior to the Annuity Commencement Date. 
         valued at the end of each Business Day for the preceding  Early Transaction – Any Surrender, Withdrawal, transfer or 
         Valuation Period.             application of a new Guarantee Period to any portion of 
Additional Premium – Any payment, other than the Initial           the Accumulation Value in the MVA Account more than 
         Premium.             30 days prior to the end of the then applicable Guarantee 
Age – Means the age of a person on his or her last birthday.           Period. Similarly, the application of any portion of the 
Annuitant – The person upon whose life the Annuity             Accumulation Value in the MVA Account to an Annuity 
         Payments are based.             Plan more than 30 days before the end of the then 
Annuity Commencement Date – The date after which the           applicable Guarantee Period is an Early Transaction. 
         Owner has the right to receive Annuity Payments and is  Earnings – The Accumulation Value less Premiums. 
         the date used in determining the timing of such Annuity  Endorsements – Attachments to this Contract that add, 
         Payments.             change or supersede its terms or provisions. 
Annuity Payments – Periodic payments beginning on the     
         Annuity Commencement Date.    Guarantee Period – The number of months or years during 
Annuity Plan – An option elected that determines the             which Premium and any Premium Credits (if applicable) 
         frequency, duration and amount of the Annuity Payments.           or a transfer of Accumulation Value allocated to the 
Attained Age – The Age on the Contract Date plus the             MVA Account earns a specified interest rate, as declared 
         number of full Contract Years elapsed since the Contract           by us. 
         Date.    Initial Premium – The payment to put this Contract into 
Beneficiary – The person or entity who will receive the Death           effect. 
         Benefit.    Irrevocable Beneficiary – A Beneficiary whose rights and 
Business Day – The hours of any day the New York Stock           interest under this Contract cannot be changed without his 
         Exchange (“NYSE”) is open for trading, exclusive of             or her consent. 
         federal holidays, or any day the Securities and Exchange  Issue Age – The age of the Owner as of the day the 
         Commission (“SEC”) requires that mutual funds, unit             application is received in good order. 
         investment trusts or other investment portfolios be valued.  Issue Date – The day the application is received in good 
Cash Surrender Value – The amount received upon             order and money has been applied. 
         Surrender of this Contract.    Joint Annuitants – The two annuitants upon whose life the 
Claim Date – The Business Day on or following the date on           Annuity Payments are based. 
         which we receive due proof of death and any other    Market Value Adjustment (MVA) – A positive or negative 
         information required by us to pay the Death Benefit or           adjustment to the Accumulation Value in the MVA 
         otherwise administer the claim, including election of the           Account as a result of an Early Transaction. 
         manner in which the Death Benefit is to be paid.    MVA Account – Part of the Company’s general account 
Code – The Internal Revenue Code of 1986, as amended.             established by us to hold the assets supporting the fixed 
Company, we, our or us – ING USA Annuity and Life             return benefits for this and other variable annuity or life 
         Insurance Company (ING USA).             insurance contracts. 
Contingent Annuitant – The person who will become the  Non-participating – This Contract will not pay dividends 
         Annuitant if the named Annuitant (Joint Annuitants) dies           resulting from any of our surplus or earnings. 
         prior to the Annuity Commencement Date.    Notice to Us – Written notification received at our Customer 
Contingent Beneficiary – The person who will become the           Service Center in a form satisfactory to us or other means 
         Beneficiary if the named Beneficiary dies prior to any           of notification to which we and the Owner mutually 
         Owner (any Annuitant if any Owner is not an individual).           agree. The address of the Customer Service Center is 
Contract – The contract and any attached application,             shown on the first page of this Contract. Notice to Us 
         amendments, Endorsements or Riders.             received when the NYSE is closed for trading will be 
Contract Anniversary – The same day and month each year           deemed to be received on the next Business Day. 
         as the Contract Date. If no such day exists, the Contract  Owner – The person or entity (if the Owner is not an 
         Anniversary shall be the next calendar day.             individual), as shown in our records, who owns the 
Contract Date – The date on which this Contract becomes           Contract and who is entitled to exercise the rights of 
         effective.             ownership. 
Contract Year – The period beginning on a Contract    Premium – Collectively the Initial Premium and any 
         Anniversary (or, in the first Contract Year only, the             Additional Premium. 
         Contract Date) and ending on the day preceding the next  Premium Credit – An amount in addition to the Premium 
         Contract Anniversary.             payment which we add to the Contract’s Accumulation 
             Value at the time that Premium is paid. 
ING Premium Plus – 152952  3   

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Premium Tax – Any tax or fee imposed or levied by any state           similar administrative purposes as provided in the 
         government or political subdivision thereof on the           provisions of this Contract. 
         Premium paid for this Contract.  Surrender – The withdrawal of the Contract’s full Cash 
Premium Year – The number of complete years that have           Surrender Value. In the event of a Surrender, the 
         elapsed since that particular Premium was paid.           Contract will terminate and be of no further value. 
Proof of Death – Receipt of a certified copy of a death  Variable Separate Account – An account that is used to hold 
         certificate, a certified copy of a statement of death from           assets funding the variable benefits for this and other 
         the attending physician, a finding from a court of           variable annuity contracts. 
         competent jurisdiction as to the cause of death, or other  Variable Sub-accounts – Subdivisions of the Variable 
         proof of death satisfactory to us.           Separate Account. Variable Sub-accounts are used to 
Riders – Attachments to this Contract that add, change or           determine the allocation of the Contract’s assets within 
         supersede its terms or provisions.           the Variable Separate Account. 
Right to Examine Period – The period of this Contract  Valuation Period – The time from the close of regular trading 
         during which the Owner has the right to cancel or void the           on the NYSE on one Business Day to the close of regular 
         Contract.           trading on the next succeeding Business Day. 
Specially Designated Variable Sub-account - A Variable  Withdrawal – A transaction in which only a portion of the 
         Sub-account that is used as a “holding” account or for           Cash Surrender Value is taken from the Contract. 

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ING Premium Plus – 152952

4

Synopsis – The Contract

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This synopsis reviews some important things that you should know about this annuity. It is designed only as a guide, and you should read the entire prospectus for complete details.

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You can use an annuity to save money for retirement and to           What other options do I have for accessing money from 
receive retirement income for life. It is not meant to be used to           my annuity? 
meet short-term financial goals.     
             Regular withdrawals: You can withdraw up to 10% of your 
This annuity is a flexible premium annuity, which means that           Accumulation Value during a Contract Year 
you may buy it with multiple payments. The first payment             without paying a surrender charge. The surrender charge is 
(Initial Premium) must be at least $25,000. If you purchase the           based on the amount of time since Premium was added. The 
annuity with pre-tax money (qualified), each Additional             surrender charge is a percentage of the Withdrawal. For more 
Premium must be at least $50. If you purchase it with after-tax           information about surrender charges and any Premium Credit 
money (nonqualified), each Additional Premium must be at           recapture, see pages 12 and 19, respectively. 
least $500. Payments cannot total more than $1,500,000 total   
unless you receive approval from us. This annuity also offers a           Systematic withdrawals: You can get monthly, quarterly, or 
Premium Credit, which is a percentage of the Premium.             annual payments from your annuity in set amounts without 
             paying surrender charges. There are restrictions on taking 
THE ANNUITY CONTRACT             systematic withdrawals. See page 41 for more information. 
 
How does this annuity work?             Extended medical care and terminal condition waiver of 
This variable annuity is a contract between you and us. You           surrender charge: If you are in a hospital or nursing facility or 
pay premiums into your Contract, and we agree to           diagnosed with a terminal condition, you can take 
make payments to you, starting now or at some point in the           money from your annuity without paying a surrender charge 
future.             under some conditions. See page 13 for more information. 
 
An annuity has two phases: the accumulation phase and the           What happens if I die? 
income phase.             This annuity has a Death Benefit that pays money to your 
             Beneficiary if you die before we start to pay you income from 
During the accumulation phase, you make investment             your Contract. You must choose 1 of 3 guaranteed 
decisions that can increase or decrease your             Death Benefit Riders. For more information about the Death 
Contract’s value. This annuity can build earnings in two ways:           Benefits, see the next section of this summary and page 47. 
1) from various investment options we offer (Variable Sub-   
accounts) and 2) from a fixed interest account (MVA             RIDERS 
Account). You decide how your money is allocated.     
             What other benefits can I choose? 
For a list of the Variable Sub-accounts available to you, see           This annuity offers you optional benefits to help protect your 
the fund portfolios in appendix A. The MVA Account is an           annuity’s Accumulation Value against downturns in the 
investment option offered by us, subject to state approval.             market. There are two kinds of optional benefits available for 
Interest is guaranteed for specific periods that can vary             an additional charge: living benefits and Death Benefits. 
according to certain conditions.           Living benefits protect the annuity’s value for you; Death 
                                   See Appendix B or the Fixed Account II             Benefits protect the value for your Beneficiary; 
prospectus for more information.     
             Living benefits : Living benefits offer the guarantee of 
Since this annuity is tax-deferred, you do not pay taxes on the                                                                                                               a specific 
earnings until the money is paid to you.             withdrawal amount when the time comes for you to start 
             receiving the annuity’s value as income. This annuity offers 
We begin to pay money to you during the income phase. We  one living benefit rider: 
use your annuity’s Accumulation Value to determine how    · M G I B Rider: 
much income you can receive (Annuity Payments). You can                               Guarantees a future value of your annuity no matter 
choose to get payouts for life or for a specific period of time                               how the investment options you choose perform (see 
(Annuity Plans). You choose the date the payouts start                                 page 21). 
(Annuity Commencement Date) and how often you receive   
them. See page 52 for more information about the Annuity   
Plans available to you.     
             Death Benefits : All Death Benefits pay money 
ING Premium Plus – 152952  5   

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to your Beneficiary if you die. The Contract has a Death Benefit equal to the greater of the Cash Surrender Value or Accumulation Value less any recapture of Premium Credits. You must choose 1 of the following 3 guaranteed Death Benefit Riders to help guard against investment loss:

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  • Standard Death Benefit Rider: Pays the greater of Premiums adjusted for Withdrawals or the Accumulation Value (see page 47).
  • Annual Ratchet Death Benefit Rider: Locks in a Death Benefit on each Contract Anniversary that the contract’s Accumulation Value reaches a new high (see page 47).
  • Max 7% Solution Death Benefit Rider: Guarantees the higher Death Benefit between the Annual Ratchet and the Initial Premium growing at a 7% interest rate (page 48).
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The EMDB Rider is also available to purchase, which guarantees an additional percentage of your earnings are added to the Death Benefit (page 49).

FEES AND EXPENSES

What fees and/or expenses do you deduct from my annuity?

You will pay fees while you own the annuity. Fees depend on the value of the investments in your annuity and the types of investments you choose. There are three types of fees: transactional, recurring (including any Rider charges) and underlying portfolio fees. For specific information about these fees, see pages 7 and 12.

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TAXES

How will payouts and withdrawals from my annuity be taxed?

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This annuity is tax-deferred, which means you do not pay taxes on the annuity’s earnings until the money is paid to you. When you take payouts or make a Withdrawal, you pay ordinary income tax on the accumulated earnings. You also

defer paying taxes on earnings if you move money from one Variable Sub-account to another. You may pay a federal income tax penalty on earnings you withdraw before age 59½. See page 56 for more information. Your Contract may also be subject to a Premium Tax, which depends on your state of residency . See page 13 for more information .

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You can exchange one tax-deferred annuity for another without paying taxes on the accumulated earnings when you make the exchange. Before you do, compare the benefits, features, and costs of the two annuities.

Does buying an annuity in a retirement plan provide extra tax benefits?

No. Buying an annuity within an IRA, 401(k), or other tax-deferred retirement plan doesn’t give you any extra tax benefits. Choose your annuity based on its other features and benefits as well as its risks and costs, not its tax benefits.

OTHER INFORMATION

What else do I need to know?

We may change your annuity contract from time to time to follow federal or state laws and regulations. If we do, we’ll tell you about the changes in writing.

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Compensation: We pay the broker-dealer for selling the annuity to you. Your broker-dealer also may have certain revenue sharing arrangements or pay its personnel more for selling this annuity contract than for selling other annuity contracts. See page 54 for more information.

Right to Examine Period (Free Look): Many states have laws that give you a set number of days to look at an annuity after you buy it. If you decide during that time that you don’t want it, you can return the annuity. See page 53 for more information .

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Synopsis – Fees and Expenses

The following tables describe the fees and expenses that you will pay when buying, owning, and Surrendering the Contract.

This table describes the fees and expenses that you will pay at the time that you buy the Contract, Surrender the Contract, or transfer Accumulation Value between Variable Sub-accounts. Premium Taxes may also be deducted.

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Transactional    1.  A surrender charge may apply to a Surrender or Withdrawal Premium. The Contract has a 
Surrender Charge1  9%    surrender charge schedule. Each Premium is subject to its own surrender charge schedule 
Excess Transfer Charge2 $25    lasting 9 full years from the payment date:               
Premium Credit      Full years since paid  0  1  2  3  4  5  6  7  8  9 
Recapture3  100%    Surrender charge  9%  9%  9%  8%  7%  6%  5%  4%  2%  0% 

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The charge is deducted proportionally from the Accumulation Value in the Variable Sub-accounts (and the MVA Account whenever there is insufficient Accumulation Value in the Variable Sub-accounts), or you may request the charge be deducted from Withdrawal of Premium.

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2.      Per transfer after 12 during a Contract Year, currently zero.
3.      Recapture may apply to a Premium Credit when you return the Contract during the Right to Examine Period; any Premium Credits added to the Contract’s Accumulation Value for Premium received 12 months prior to the Owner’s death and later, until, if applicable, the Contract is continued by the deceased Owner’s spouse; or any Premium Credits added to the Contract’s Accumulation Value for Premium received within 12 months prior to the date we receive the Owner’s request for a Surrender or Withdrawal as a result of Extended Medical Care or due to a Terminal Condition . The amount of recapture is deducted proportionally from the Accumulation Value in the Variable Sub-accounts and any MVA Account.
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This table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Variable Sub-account fees and expenses.

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Recurring    4.  The annual administrative charge is waived on 
Annual Administrative Charge4  $40    Accumulation Value or Premiums of $100,000 or more 
      when it is to be deducted. This charge is deducted on your 
Separate Account Annual Expenses      Contract Anniversary, the Annuity Commencement Date, or 
         Mortality & Expense Risk Charge  1.60%    when you Surrender the Contract. 
         Asset Based Administrative Charge  0.15%  5.  These charges are deducted on Business Days as a 
      percentage of and from the Accumulation Value in each 
Total Separate Account Annual Expenses5 1.75%    Variable Sub-account. 

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This table describes the charges for the Riders currently available with the Contract.     
 
Riders
Death Benefits6  Current  Maximum 
         Guaranteed Standard Death Benefit and Transfer Rider (Standard)  1.60%  1.60% 
         Guaranteed Ratchet Death Benefit and Transfer Rider ( Annual Ratchet)  1.90%  1.90% 
         Guaranteed Combination Death Benefit and Transfer Rider (Max 7% Solution)  2.15%  2.15% 
         Earnings Multiplier Death Benefit (EMDB) Rider  0.30%  0.70% 
Living Benefits7     
         Minimum Guaranteed Income Benefit (MGIB) Rider7  0.75%  1.50% 
   
   

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6. You must choose 1 of the 3 guaranteed Death Benefit Riders, and your Contract’s schedule page will reflect its corresponding ING Premium Plus – 152952 7

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charge as the mortality & expense risk charge. The charge is deducted on Business Days as a percentage of and from the Accumulation Value in each Variable Sub-account. In addition, you may choose to purchase the EMDB Rider. The charge for this Rider is deducted proportionally, in arrears, from the Accumulation Value in the Variable Sub-accounts on each quarterly Contract Anniversary (and the MVA Account whenever there is insufficient Accumulation Value in the Variable Sub-accounts).

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7.      The amount of the charge for the MGIB Rider is calculated using the MGIB Charge Base and deducted proportionally, in arrears, from the Accumulation Value in the Variable Sub-accounts on each quarterly Contract Anniversary (and the MVA
  Account whenever there is insufficient Accumulation Value in the Variable Sub-accounts). See page 22 .
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This item shows the minimum and maximum total gross operating expenses charged by the Variable Sub-accounts that you may pay periodically during the time that you own the contract. More detail concerning each Variable Sub-account’s fees and expenses is contained in the prospectus for the relevant underlying portfolio.

Total Annual Variable Sub-account Gross Operating Expenses

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Expenses that are deducted from underlying portfolio  Minimum  Maximum 
assets, including management fees, service and/or     
distribution (12b-1) fees, and other expenses11, 12  0.53%  2.58% 

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8. We may receive compensation from the underlying portfolios or their affiliates based on an annual percentage of the average net assets held in that portfolio by us. The percentage paid may vary from one underlying portfolio to another. For certain underlying portfolios, some of this compensation may be paid out as 12b-1 fees or service fees that are deducted from portfolio assets. These fees are disclosed in the underlying portfolio prospectuses. We may also receive compensation from certain underlying portfolios or their affiliates for recordkeeping or other services. These additional payments are made by the underlying portfolios to us and do not increase, directly or indirectly, the expenses shown above. See page 14.

9. No underlying portfolio currently charges a redemption fee. See page 13.

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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.

Example

Assumptions

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a.      You invest $10,000 in the contract for the time periods indicated below.
b.      The costs reflected include the transactional and recurring fees and expenses noted above and the charges for these optional riders: Annual Ratchet, EMDB Rider, and MGIB Rider. Also included are the maximum gross operating expenses noted above of any of the Variable Sub-accounts.
c.      The example assumes that your investment has a 5% return each year.
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Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

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If you Surrender or annuitize your contract at the end of the applicable time period   
1 year     3 years                                 5 years   10 years 
$1,592     $2,973                                 $4,150    $6,885 
If you do not Surrender your contract       
1 year     3 years                                 5 years   10 years 
                         $692     $2,073                                 $3,450    $6,885 
 
ING Premium Plus – 152952    8   

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Fees Deducted by the Underlying Portfolios

The prospectuses for the underlying portfolios show the investment advisory fees, 12b-1 fees and other expenses including service fees (if applicable) charged annually. Fees of an underlying portfolio are one factor that impacts the value of a share. Please refer to the prospectuses for the underlying portfolios for more information and to learn more about additional factors.

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The Company may receive compensation from each of the underlying portfolios or their affiliates based on an annual percentage of the average net assets held in that underlying portfolio by the Company. The percentage paid may vary from one fund company to another. For certain underlying portfolios, some of this compensation may be paid out of 12b-1 fees or service fees that are deducted from underlying portfolio assets. Any such fees deducted from underlying portfolio assets are disclosed in the prospectuses for the underlying portfolio. The Company may also receive additional compensation from certain underlying portfolios for administrative, recordkeeping or other services provided by the Company to the underlying portfolios or their affiliates. These additional payments may also be used by the Company to finance distribution. These additional payments are made by the underlying portfolio or their affiliates to the Company and do not increase, directly or indirectly, the underlying portfolio fees and expenses. See page 14 for more information.

In the case of fund companies affiliated with the Company, where an affiliated investment adviser employs subadvisers to manage the underlying portfolios, no direct payments are made to the Company or the affiliated investment adviser by the subadvisers. Subadvisers may provide reimbursement for employees of the Company or its affiliates to attend business meetings or training conferences. Investment management fees are apportioned between the affiliated investment adviser and subadviser. This apportionment varies by subadviser, resulting in varying amounts of revenue retained by the affiliated investment adviser. This apportionment of the investment advisory fee does not increase, directly or indirectly, underlying portfolio fees and expenses. See page 14 for more information.

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Fees are deducted from the value of the underlying portfolio shares on a daily basis, which in turn affects the value of each Variable Sub-account that purchases fund shares.

Condensed Financial Information

Accumulation Value

We use accumulation units to calculate the Accumulation Value of a Contract. Each Variable Sub-account of Separate Account B has its own accumulation unit value. Their values may increase or decrease from day to day based on the investment performance of the applicable underlying portfolio. Shares in the underlying portfolios are valued at their net asset value.

On the Contract Date, the Accumulation Value equals your Initial Premium, plus the Premium Credit and less any Premium Tax, if applicable. We calculate the Accumulation Value at the end of each Business Day:

(1)      We start with the Accumulation Value in the Variable Sub-account on the preceding Business Day;
(2)      We multiply (1) by the Variable Sub-account’s Net Return Factor (see below).
(3)      We add to (2) any Additional Premium, plus the Premium Credit and subtract any Premium Tax, if applicable.
(4)      We add or subtract any transfers to or from the Variable Sub-account.
(5)      We subtract from (4) any Withdrawals, including any recapture of Premium Credits, if applicable, and surrender charges.
(6)      We subtract from (5) any charges other than daily charges (e.g., a living benefit Rider charge that is deducted on quarterly Contract Anniversaries).

No accumulation unit value history is contained in this prospectus because the Contract has not previously been offered for sale.

The Net Return Factor is an index number which reflects certain charges under the Contract and the investment performance of the Variable Sub-account. The Net Return Factor is calculated for each Variable Sub-account as follows:

(1)      We take the net asset value of the Variable Sub-account at the end of each Business Day.
(2)      We add to (1) the amount of any dividend or capital gains distribution declared for and reinvested in the underlying portfolio. We subtract from that amount a charge for any taxes.
(3)      We divide (2) by the net asset value of the underlying portfolio at the end of the preceding Business Day.
(4)      We subtract the daily charges from the Variable Sub-account (e.g., the mortality & expense risk charge).

Calculations for the Variable Sub-accounts are made on a per unit basis.

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Financial Statements

The financial statements of each of ING USA and its Separate Account B can be found in the SAI. The financial statements of the separate account include information about all contracts offered through it. The financial statements of ING USA should only be considered as bearing on the company’s ability to meet its contractual obligations under the Contracts. ING USA’s financial statements do not bear on the future investment experience of the assets held in the separate account.

ING USA Annuity and Life Insurance Company

Organization and Operation

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. Although we are a subsidiary of ING, ING is not responsible for the obligations under the Contract. The obligations under the Contract are solely the responsibility of ING USA Annuity and Life Insurance Company.

Lion Connecticut is the holding company for Directed Services LLC, 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.

Our principal office is located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380.

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.

Insurance and Retirement Plan Products and Other Regulatory Matters

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     Federal and state regulators and self-regulatory agencies are conducting broad inquiries and investigations involving the insurance and retirement industries. These initiatives currently focus on, among other things, compensation, revenue sharing, and other sales incentives; potential conflicts of interest; sales and marketing practices (including sales to seniors); specific product types (including group annuities and indexed annuities); and disclosure. The Company and certain of its U.S. affiliates have received formal and informal requests in connection with such investigations, and have cooperated and are cooperating fully with each request for information. Some of these matters could result in regulatory action involving the Company. These initiatives also 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 their business practices are appropriate.

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Investment Product 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; directed brokerage; compensation; sales practices, suitability, and supervision; arrangements with service providers; pricing; compliance and controls; adequacy of disclosure; and document retention.

In addition to responding to governmental and regulatory requests on fund trading 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.

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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.

Action has been or may be taken by regulators with respect to the Company or certain affiliates before investigations relating to

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fund trading are completed. 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 any such action will have a material adverse effect on ING or ING’s U.S.-based operations, including the Company.

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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 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.

Product Regulation

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Our products are subject to a complex and extensive array of state and federal tax, securities and insurance laws, and regulations, which are administered and enforced by a number of governmental and self-regulatory authorities. Specifically, U.S. federal income tax law imposes requirements relating to nonqualified annuity product design, administration, and investments that are conditions for beneficial tax treatment of such products under the Internal Revenue Code. (See page 56 for further discussion of some of these requirements.) Failure to administer certain nonqualified contract features (for example, contractual annuity start dates in nonqualified annuities) could affect such beneficial tax treatment. In addition, state and federal securities and insurance laws impose requirements relating to insurance and annuity product design, offering and distribution, and administration. Failure to meet any of these complex tax, securities, or insurance requirements could subject the Company to administrative penalties, unanticipated remediation, or other claims and costs.

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Separate Account B

Organization and Operation

Separate Account B of ING USA was established as a separate account of the Company on July 14, 1988. Separate Account B is governed by the laws of Iowa. 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 Variable Sub-accounts. Each Variable Sub-account invests exclusively in shares of an underlying portfolio. Each underlying portfolio has its own distinct investment objectives and policies. Income, gains and losses, realized or unrealized, of an underlying portfolio are credited to or charged against the corresponding Variable Sub-account 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 Variable Sub-accounts 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. When we deduct the fees we charge for the Contract, these would constitute excess assets that we would transfer to the general account. We are obligated to pay all benefits and make all payments provided under the Contracts, and will keep the separate account fully funded to cover such liabilities.

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Note: We currently offer other variable annuity contracts through Separate Account B having different Variable Sub-accounts that are not discussed in this prospectus. Under certain circumstances, we may make certain changes to the Variable Sub-accounts. For more information, see page 20.

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Variable Sub-accounts

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You will find information about the Variable Sub-accounts currently available under your Contract in Appendix A — The Investment Portfolios. A prospectus containing more complete information on each underlying portfolio may be obtained by calling the Customer Service Center. You should read the prospectus carefully before investing.

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Certain underlying portfolios are designated as “Master-Feeder” or “LifeStyle Funds.” Underlying portfolios 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 an underlying portfolio that invests directly in debt and equity securities. Consult with your investment professional to determine which Variable Sub-accounts are suited to your financial needs, investment time horizon and risk tolerance. You should periodically review these factors to determine if you need to change your investment strategy.

If, due to differences in tax treatment or other considerations, the interests of owners of various contracts participating in the

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underlying portfolios conflict, we, the Boards of Trustees or Directors of the underlying portfolios, and any other insurance companies participating in the underlying portfolios will monitor events to identify and resolve any material conflicts that may arise.

Covered Funds, Special Funds and Excluded Funds

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We have classified the Variable Sub-accounts currently available as Covered Funds, Special Funds or Excluded Funds. These classifications are relevant in calculating the value we guarantee under certain Riders in excess of your contract value. They are used to indicate the rate at which the rider’s guarantee, or a component of the guarantee, will grow. Covered Funds participate fully in all guaranteed benefits. Special Funds may participate at less than the full rate. Excluded Funds do not participate in any guaranteed benefits due to their potential for volatility . We have these classifications to mitigate the insurance risk inherent in our guarantees.

These classifications currently apply to the MGIB Rider and the Death Benefit Riders and may vary by benefit. For example, a Variable Sub-account classified as a Special Fund for the MGIB Rider may be a Covered Fund for the Annual Ratchet Death Benefit Rider . We may change a Variable Sub-account’s classification upon 30 days notice to you. The change could apply to transfers or Additional Premium, but not to Accumulation Value already allocated to the Variable Sub-account. For more information about the classification of a given Variable Sub-account and it effect on a Rider’s guarantee, see pages 22 and 49. Appendix D also has some examples .

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Fees and Expenses

We deduct the following fees and expenses to compensate us for our costs, the services we provide, and the risks we assume under the Contracts. We incur costs for distributing and administering 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. Some of these fees and expenses are for Riders, so they are only deducted if you choose to purchase the Rider. Fees and expenses expressed as a percentage are rounded to the nearest hundredth of one percent. We expect to profit from the charges, including the mortality and expense risk charge and rider and benefit charges, and we may use the profits to finance the distribution of Contracts. The charges for a contract with a Premium Credit may be higher than a contract without one. Over time, the amount of the Premium Credit may be more than offset by the charges.

Charge Deduction Variable Sub-account

You may elect to have all fees and expenses, except daily charges, deducted from the Specially Designated Variable Sub-account, currently, the ING Liquid Assets Portfolio. If you do not elect this option, or if the amount of the charges is greater than the Accumulation Value in the Specially Designated Variable Sub-account, we will deduct them proportionally from the Accumulation Value. You may cancel this option at any time by Notice to Us, and any change will take effect within 7 days of our receipt of your request.

Surrender Charge

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A surrender charge may apply to a Surrender or Withdrawal of Premium. The Contract has a surrender charge schedule. This charge is intended to cover sales expenses we have incurred. Each Premium is subject to its own surrender charge schedule lasting 9 complete years from the payment date. We consider Withdrawals to come from Premium in the same order as paid (first-in, first-out (FIFO)). So the rate of this charge depends on the number of complete years that have elapsed since you paid the Premium and is deducted proportionally from the Accumulation Value in the Variable Sub-accounts, unless you request otherwise:

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Full years since paid  0  1  2  3  4  5  6  7  8  9 
Surrender charge  9%  9%  9%  8%  7%  6%  5%  4%  2%  0% 

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You may instead request that any surrender charge be deducted from the amount of the Withdrawal of Premium . Whenever no Variable Sub-accounts remain or the Accumulation Value in them is insufficient to pay this charge, we will deduct it from the Accumulation Value in the MVA Account, starting with the Guarantee Period nearest maturity, until paid. Charges deducted from the MVA Account may be subject to an MVA.

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No surrender charge applies, however, to a Withdrawal, and that Withdrawal will not be treated as a Withdrawal of Premium, if it does not exceed 10% of the Accumulation Value less any Withdrawals already taken during the Contract Year, as determined on the date of the Withdrawal.

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Also, the Contract has a waiver of surrender charge for Extended Medical Care or a Terminal Condition. Extended Medical Care means confinement in a hospital or nursing home prescribed by a qualifying medical professional, as these terms are defined in the Contract. We will waive the surrender charge in most states in the event: (i) you begin receiving Extended Medical Care on or after the first Contract Anniversary for at least 45 days during a 60 day period with Notice to Us during the term of your care or within 90 days after the last day of your care; or (ii) you are first diagnosed by a qualifying medical professional, on or after the first Contract Anniversary, as having a Terminal Condition. Terminal Condition means an illness or injury which results in a life expectancy of 12 months or less, as measured from the date of diagnosis by a qualifying medical professional. We have the right to require an examination by a physician of our choice. If we require such an examination, we will pay for it. If we waive the surrender charge, we will deduct any Premium Credit added to your Accumulation Value within 1 year of the Withdrawal, and we will not add any Premium Credit to any Additional Premiums on or after the date of this waiver.

Premium Tax

The Premium you pay for the Contract may be subject to Premium Tax of 0% to 3.5%, depending on your state of residence. Any Premium Tax may be imposed: when Premiums are paid; upon a Surrender or Withdrawal, or payment of the Death Benefit; or the Accumulation Value is applied to any Annuity Plan on the Annuity Commencement Date. Unless you direct otherwise, any Premium Taxes will be deducted proportionally from the Accumulation Value. We have the right to change the Premium Tax rate to conform with changes in the law or if you change your state of residence.

Annual Administrative Charge

The Contract has a $40 annual administrative charge. This charge covers a portion of our ongoing administrative expenses and is deducted proportionally from the Accumulation Value in the Variable Sub-accounts on each Contract Anniversary, the Annuity Commencement Date, or when you Surrender the Contract. Whenever no Variable Sub-accounts remain or the Accumulation Value in them is insufficient to pay this charge, we will deduct it from the Accumulation Value in the MVA Account, starting with the Guarantee Period nearest maturity, until it is paid. This charge is waived either on Accumulation Value or Premium of $100,000 or more when it is due to be deducted. We may at any time reduce, but never increase these amounts for waiving this charge.

Excess Transfer Charge

This Contract has a $25 excess transfer charge for each transfer after 12 during a Contract Year. Currently, we do not deduct this charge. The charge is deducted from the Accumulation Value in the Variable Sub-account or MVA Account from which the transfer is made. The charge will not apply to any transfers due to the election of dollar cost averaging or automatic rebalancing.

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 Accumulation Value. The prospectus for an underlying portfolio would have a more complete description of its fees and expenses.

Mortality & Expense Risk Charge

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The Contract has a mortality & expense risk charge that depends on your chosen guaranteed Death Benefit Rider. The charge is deducted on Business Days as a percentage of the Accumulation Value in each Variable Sub-account. This charge compensates us for death benefit and annuitization risks and the risk that expense charges will not cover actual expenses. If there are any profits from this charge, we may use them to finance the distribution of contracts.

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  Current  Maximum 
Standard Death Benefit  1.60%  1.60% 
                     Annual Ratchet Death Benefit  1.90%  1.90% 
Max 7% Solution Death Benefit  2.15%  2.15% 

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Asset Based Administrative Charge

The Contract has an asset based administrative charge of 0.15% annually, which is deducted on Business Days from the Accumulation Value in each Variable Sub-account.

EMDB Rider Charge

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The charge for the EMDB Rider is 0.30% annually (the maximum annual charge is 0.70%), deducted proportionally, in arrears, from the Accumulation Value in the Variable Sub-accounts each quarterly Contract Anniversary. Whenever no Variable Sub-accounts remain or the Accumulation Value in them is insufficient to pay this charge, we will deduct it from the Accumulation Value in the MVA Account, starting with the Guarantee Period nearest maturity, until it is paid. Charges deducted from the MVA Account may be subject to an MVA. This Rider will terminate if the Contract’s Accumulation Value is insufficient to cover its charge. This charge will be prorated in the event the Contract or this Rider is cancelled or terminated for any reason other than insufficient Accumulation Value.

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MGIB Rider Charge

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The charge for the MGIB Rider is currently 0.75% annually (the maximum annual charge is 1.50%), calculated using the MGIB Charge Base and deducted proportionally, in arrears, from the Accumulation Value in the Variable Sub-accounts on each quarterly Contract Anniversary. Whenever no Variable Sub-accounts remain or the Accumulation Value in them is insufficient to pay this charge, we will deduct it from the Accumulation Value in the MVA Account, starting with the Guarantee Period nearest maturity, until it is paid. Charges deducted from the MVA Account may be subject to an MVA. This Rider will terminate if the Contract’s Accumulation Value is insufficient to cover its charge. This charge will be prorated in the event the Contract or this Rider is cancelled or terminated for any reason other than insufficient Accumulation Value, or you exercise the option to receive the MGIB instead of Annuity Payments under the Contract. The charge will not exceed the rate in effect on the date you choose to purchase this rider. Please see page 22 for more information.

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Underlying Portfolio Expenses

As shown in the prospectuses for the underlying portfolios as well as described in the “Fees Deducted by the Underlying Portfolios” section of this prospectus, each underlying portfolio deducts management fees from the amounts allocated to it. In addition, each underlying portfolio deducts other expenses which may include service fees that may be 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 underlying portfolios may 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 these fees and expenses, review each prospectus for the underlying portfolio.

The company or its U.S. affiliates receive substantial revenue from each of the underlying funds or their affiliates, although the amount and types of revenue vary with respect to each of the underlying portfolios offered through the Contract. This revenue is one of several factors we consider when determining the Contract fees and charges and whether to offer an underlying portfolio through our contracts. Fund revenue is important to the Company’s profitability, and it is generally more profitable for us to offer affiliated underlying portfolios than to offer unaffiliated underlying portfolios.

In terms of total dollar amounts received, the greatest amount of revenue generally comes from assets allocated to underlying portfolios managed by Directed Services LLC or other Company affiliates, which underlying portfolios may or may not also be subadvised by another company affiliate. Assets allocated to underlying portfolios managed by a company affiliate but subadvised by unaffiliated third parties generally generate the next greatest amount of revenue. Finally, assets allocated to unaffiliated portfolios generate the least amount of revenue. The company expects to make a profit from this revenue to the extent it exceeds the company’s

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expenses, including the payment of sales compensation to our distributors.

Types of Revenue Received from Affiliated Funds

     Affiliated funds are (a) funds managed by Directed Services LLC or other company affiliates, which may or may not also be subadvised by another company affiliate; and (b) funds managed by a company affiliate but that are subadvised by unaffiliated third parties.

Revenues received by the company from affiliated funds may include:

  • A share of the management fee deducted from fund assets;
  • Service fees that are deducted from fund assets;
  • For certain share classes, the company or its affiliates may also receive compensation paid out of 12b-1 fees that are deducted from fund assets; and
  • Other revenues that may be based either on an annual percentage of average net assets held in the fund by the company or a percentage of the fund’s management fees.

These revenues may be received as cash payments or according to a variety of financial accounting techniques that are used to allocate revenue and profits across the organization. In the case of affiliated funds subadvised by unaffiliated third parties, any sharing of the management fee between the Company and the affiliated investment adviser is based on the amount of such fee remaining after the subadvisory fee has been paid to the unaffiliated subadviser. Because subadvisory fees vary by subadviser, varying amounts of revenue are retained by the affiliated investment adviser and ultimately shared with the company.

Types of Revenue Received from Unaffiliated Funds

     Revenue 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.

Revenues received by the company or its affiliates from unaffiliated funds include:

  • For certain funds, compensation paid from 12b-1 fees or service fees that are deducted from fund assets; and
  • Additional payments for administrative, recordkeeping or other services that we provide to the funds or their affiliates, such as processing purchase and redemption requests, and mailing fund prospectuses, periodic reports and proxy materials. These additional payments do not increase directly or indirectly the fees and expenses shown in each fund prospectus. These additional payments may be used by us to finance distribution of the Contract.
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These revenues are received as cash payments, and if the unaffiliated fund families currently offered through the Contract were individually ranked according to the total amount they paid to the company or its affiliates in 2008, that ranking would be as follows:

· BlackRock Variable Series Funds, Inc.

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If the revenues received from affiliated funds were included in this list, payments from Directed Services LLC and other company affiliates would be at the top of the list.

In addition to the types of revenue received from affiliated and unaffiliated funds described above, affiliated and unaffiliated funds and their investment advisers, subadvisers or affiliates may participate at their own expense in company sales conferences or educational and training meetings. In relation to such participation, a fund’s investment adviser, subadviser or affiliate may make fixed dollar payments to help offset the cost of the meetings or sponsor events associated with the meetings. In exchange for these expense offset or sponsorship arrangements, the investment adviser, subadviser or affiliate may receive certain benefits and access opportunities to company sales representatives and wholesalers rather than monetary benefits. These benefits and opportunities include, but are not limited to, co-branded marketing materials, targeted marketing sales opportunities, training opportunities at meetings, training modules for sales personnel and opportunity to host due diligence meetings for representatives and wholesalers.

Certain funds may be structured as “fund of funds.” These funds may have higher fees and expenses than a fund that invests directly

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in debt and equity securities because they also incur the fees and expenses of the underlying funds in which they invest. These funds are affiliated funds, and the underlying funds in which they invest may be affiliated funds as well. The fund prospectuses disclose the aggregate annual operating expenses of each portfolio and its corresponding underlying fund or funds. The “fund of funds” available under the Contract are identified in the list of investment portfolios toward the front of this prospectus.

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Please note that certain management personnel and other employees of the company or its affiliates may receive a portion of their total employment compensation based on the amount of net assets allocated to affiliated funds. For more information, please see page 54 .

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The Annuity Contract

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The Contract described in this prospectus is a flexible premium deferred variable annuity contract with a premium credit provision. The Contract provides a means for you to invest in one or more of the available Variable Sub-accounts. It also provides a means for you to invest in an MVA Account. See Appendix B and the Fixed Account II prospectus for more information on the MVA Account.

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Owner

The Owner may exercise the rights provided under the Contract. One or more persons may own the Contract. With multiple Owners, the age of the oldest person will determine Death Benefit availability. Also, all Owners must agree to any change or in exercising the rights provided under the Contract.

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The Death Benefit becomes payable when the Owner dies before the Annuity Commencement Date. If the owner is a non-natural owner, the Death Benefit is payable upon the death of the Annuitant. We will pay the Beneficiary the Death Benefit. The sole Owner’s estate will be the Beneficiary if no Beneficiary has been designated or the Beneficiary has predeceased the Owner. In the case of a joint Owner’s death, we will designate the surviving Owner as the Beneficiary. This will override any previous Beneficiary designation. See below for more information.

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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 will be payable. Joint Owners may only select the Standard Death Benefit Rider. The EMDB Rider is not available when there are joint Owners.

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Any addition or deletion of a joint Owner is treated as a change of Owner which will result in recalculation of the Death Benefit. For more information, see “Change of Contract Owner or Beneficiary,” below. The mortality & expense risk charge going forward will reflect the change in Death Benefit. If you elected the EMDB Rider, it will terminate if you add a joint Owner after issue. Returning a Contract to single Owner status will not restore the Death Benefit or the EMDB Rider. Unless otherwise specified, Age means the age of the oldest Owner with joint Owners.

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Annuitant

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The Annuitant is the person designated by you to be the measuring life in determining Annuity Payments. You are the Annuitant unless another person is named. There may be 2 Annuitants. The Age of the oldest Annuitant will be used in the case of Joint Annuitants when the Owner is not an individual. You may not change the Annuitant while he or she is living.

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If the Owner is an individual, and the Annuitant dies before the Annuity Commencement Date, any Contingent Annuitant becomes the Annuitant. If the Annuitant dies before the Annuity Commencement Date and there is no Contingent Annuitant, the Owner will become the Annuitant. In the event of joint Owners, the youngest will be the Contingent Annuitant. The Owner may designate a new Annuitant within 60 days of the death of the Annuitant, or up to the Annuity Commencement Date, if less than 60 days. If the Annuitant was the sole Owner and there is no Beneficiary designated, the Annuitant’s estate will be the Beneficiary.

If the Owner is not an individual, and the Annuitant dies before the Annuity Commencement Date, we will pay the designated Beneficiary the Death Benefit. If a Beneficiary has not been designated, or if there is no designated Beneficiary living, the Owner will be the Beneficiary.

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Only the Standard Death Benefit Rider is permitted on Contracts with Joint Annuitants when the Owner is not an individual. Regardless of whether a Death Benefit is payable, if the Annuitant dies and any Owner is not an individual, distribution rules under federal tax law will apply. You should consult your tax adviser for more information if the contract owner is not an individual.

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Beneficiary

The Beneficiary is the person designated by you to receive the Death Benefit. The Beneficiary may become the successor Owner if the Owner, who is a spouse, dies before the Annuity Commencement Date. We pay the Death Benefit to the primary Beneficiary (unless there are joint Owners, in which case the Death Benefit is paid to the surviving owner(s)). If the Beneficiary dies before the Annuitant or the Owner, we pay the Death Benefit to any Contingent Beneficiary. If there is no surviving Beneficiary, we pay the Death Benefit to the 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 is to be paid in equal shares to the surviving Beneficiaries, unless you indicate otherwise in writing. The Owner may designate any Beneficiary to be an Irrevocable 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 will result in recalculation of the Death Benefit as well as continuation of any other Rider you have chosen. The new Owner’s Age, as of the date of the change, will be used to calculate the applicable benefits and charges (the Annuitant’s Age for non-natural Owners). The new Owner’s death will be included in determining when a Death Benefit is payable (the Annuitant’s death for non-natural Owners).

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  Maximum New   
Before Ownership Change  Owner Issue Age  After Ownership Change 
Standard Death Benefit  85  Standard Death Benefit 
Annual Ratchet Enhanced Death Benefit  75  Annual Ratchet Enhanced Death Benefit 
Annual Ratchet Enhanced Death Benefit  76  Standard Death Benefit 
Max 7 Enhanced Death Benefit  69  Max 7 Enhanced Death Benefit 
Max 7 Enhanced Death Benefit  70  Standard Death Benefit 

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In the event the new Owner is Age 86 or older, or the new owner is not an individual (other than a trust for the benefit of the owner or annuitant), the Death Benefit after the ownership change will be the greater of the Cash Surrender Value or Accumulation Value less any recapture of Premium Credits. The mortality & expense risk charge going forward will reflect the change in Death Benefit. Please note that once a Death Benefit has been changed due to a change in Owner, a subsequent change to a younger Owner will not restore the Death Benefit.

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With the EMDB Rider, so long as the new Owner is under Age 76, this Rider will continue, and the EMDB Base and the Maximum EMDB Base will be recalculated as of the date of the change, using the new Owner’s Age as the issue age for the EMDB Factor; otherwise, this Rider will terminate.

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An ownership change may cause a living benefit rider to terminate, depending on whether spousal continuation is allowed. For more information about an ownership change with the MGIB rider, please see page 27.

A change of Owner likely has tax consequences. See page 56 for more information .

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You have the right to change the Beneficiary during the Annuitant’s lifetime unless you have designated an Irrevocable Beneficiary, in which case the two of you will have to act together to exercise some of the rights and options under the Contract.

In the event of a death claim, we will honor the form of payment of the Death Benefit specified by the Beneficiary to the extent permitted under Section 72(s) of the Tax Code. You may also restrict a Beneficiary’s right to elect an Annuity Plan or receive a lump-sum payment. If so, such rights or options will not be available to the Beneficiary.

Notice to Us is required for any changes. The change will not affect any payment made or action taken by us before recording the change.

Purchase and Availability of the Contract

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We will issue a Contract with the Standard Death Benefit Rider or Annual Ratchet Death Benefit Rider SO LONG AS both the Annuitant and the Owner are Age 75 or younger at the time of application. The maximum Issue Age for a Contract with the Max 7%

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Solution Death Benefit Rider is Age 69. Also, the Max 7% Solution Death Benefit Rider is not available for purchase with the MGIB Rider. The initial premium payment must be $25,000 or more. You may make additional payments of $500 or more ($50 for qualified Contracts) at any time after the Right to Examine Period and up to the Contract Anniversary after your 85th birthday. Under certain circumstances, we may waive the minimum payment requirement. We may also change the Initial Premium or Additional Premium requirements for certain group or sponsored arrangements. Premiums causing the Accumulation Value of all annuities that you maintain with us to exceed $1,500,000 requires our prior approval.

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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. When considering an investment in the Contract, you should consult with your investment professional about your financial goals, investment time horizon and risk tolerance.

Replacing an existing insurance contract with this Contract may not be beneficial to you. Before purchasing the Contract, determine whether your existing contract will be subject to any fees or penalties upon surrender. Also, compare the fees, charges, coverage provisions and limitations, if any, of your existing contract with those of the Contract described in this prospectus.

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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 page 12 for more information . If you are considering the Annual Ratchet Death Benefit Rider or Max 7% Solution Death Benefit Rider and/or the EMDB Rider and your contract will be an IRA, see pages 60 and 64. If this Contract is issued as an IRA, no contributions may be made for the taxable year in which you attain Age 70½.

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Crediting of Premium Payments

We will process your Initial Premium within 2 Business Days after receipt and allocate the payment according to the instructions you specify at the Accumulation Value next determined, if the application and all information necessary for processing the Contract are complete. We will process Additional Premium payments within 1 Business Day if we receive all information necessary. In certain states we also accept Initial Premium 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, it will be held in a non-interest bearing account.

If a Variable Sub-account is not available or requested in error, we will make inquiry about a replacement Variable Sub-account. If we are unable to reach you or your representative within 5 days, we will consider the application incomplete. Once the completed application is received, we will allocate the payment to the Variable Sub-accounts 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.

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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 Accumulation 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).
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We will ask about any missing information related to Additional Premiums. We will allocate Additional Premiums pro-rata according to the current Variable Sub-account allocation unless you specify otherwise. Any allocations to the MVA Account

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will not be considered in the pro-rata calculations. If a Variable Sub-account is no longer available (including due to a fund purchase restriction) or requested in error, we will allocate the Additional Premiums proportionally among the other Variable Sub-account(s) in your current allocation. We will credit the Additional Premiums designated for a Variable Sub-account at the Accumulation Value next determined after receipt of your payment and instructions.

Once we allocate your Premiums to the Variable Sub-accounts selected by you, we convert them to accumulation units. We divide the amount of the Premium payment and Premium Credit allocated to a particular Variable Sub-account by the value of an accumulation unit for the Variable Sub-account to determine the number of accumulation units of the Variable Sub-account to be held in Separate Account B with respect to your Contract. The net investment results of each Variable Sub-account vary with its investment performance.

In some states, we may require that Initial Premiums be allocated to a Specially Designated Variable Sub-account during the Right to Examine Period, currently, the ING Liquid Assets Portfolio. After the Right to Examine Period, we will convert your Accumulation Value in the Specially Designated Variable Sub-account to Accumulation Value of the Variable Sub-accounts you previously selected. The Accumulation Value will be allocated based on the Accumulation Value next computed for each Variable Sub-account. Initial Premiums designated for the MVA Account will be allocated to it with the Guaranteed Period you have chosen; however, in the future we may allocate the Premiums to the Specially Designated Variable Sub-account during the Right to Examine 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. 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 and not issuing the Contract.

Premium Credit

We will add a Premium Credit to the Contract’s Accumulation Value on the date each Premium is added. We will add the Premium Credit proportionally to each Variable Sub-account and MVA Account as the Premium payment is allocated. Additional Premiums received within 90 days of the Contract’s Issue Date will be included in the determination of the Premium Credit band. The Premium Credit equals a percentage of Premium, which varies based on the sum of all Premiums paid:

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$25,000 - $499,999.99  =  5% 
$500,000 - $999,999.99  =  6% 
$1,000,000+  =  7% 

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Premium Credits will not be added to Additional Premium after the date we receive Proof of Death of any Owner (any Annuitant, if any Owner is not an individual), unless the Contract is continued by the deceased Owner’s spouse. Also, a Premium Credit will not be added to Additional Premium after the date we receive a Surrender or Withdrawal request for which surrender charges are waived.

The premium credit constitutes earnings (and not premiums paid by you) for federal tax purposes.

In any of the following circumstances, we deduct a Premium Credit from the amount we pay to you or your Beneficiary:

If you return your Contract during the Right to Examine Period, all Premium Credits will be recaptured; If the Owner (Annuitant, if any Owner is not an individual) dies, any Premium Credits added to the Contract’s Accumulation Value for Premium received 12 months prior to the date of death and later will be recaptured, until, if applicable, the Contract is continued by the deceased Owner’s spouse; or If a Surrender or Withdrawal is requested and surrender charges are waived because the Owner (Annuitant, if any Owner is not an individual) receives Extended Medical Care or is diagnosed with a Terminal Condition, any Premium Credits added to the Contract’s Accumulation Value for Premium received within 12 months prior to the date we receive the Owner’s request will be deducted from the Accumulation Value.

If we deduct a Premium Credit from any amount we pay to you, we will only deduct the full dollar amount of the Premium Credit. You will retain any gains, and you will also bear any losses, that are attributable to the Premium Credit we deduct.

Once we have waived any surrender charge, we will not add any additional Premium Credit to any Additional Premium you pay on or after the date of any such waiver.

While no specific charge is made for the Premium Credit, the surrender charges are higher and the surrender charge period longer than under our products not offering a Premium Credit. Also, the mortality & expense risk charge is higher than that charged under other products providing comparable features, but which have no Premium Credit. We may use a portion of

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the surrender charge and mortality & expense risk charge to help recover the cost of providing the Premium Credit. In addition, there may be circumstances under which the Owner may be worse off from having received a Premium Credit. For example, this could occur if the Owner returns the Contract during the Right to Examine Period. If the state law provides that Accumulation Value is to be returned, and if the performance of the Variable Sub-accounts has been negative during that time, we will return the Accumulation Value less the Premium Credit. Negative performance associated with the Premium Credit at any time will reduce the Accumulation Value more than if the Premium Credit had not been applied.

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 the risk of a fraudulent transaction is increased with telephonic or electronic instructions (for example, a facsimile withdrawal request form), even if appropriate identifying information is provided.

Cash Surrender Value

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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 Variable Sub-accounts to which you have allocated Accumulation Value, interest credited to Accumulation Value allocated to the MVA Account, and any MVA. See the Fixed Account II prospectus for a description of the calculation of the Cash Surrender Value for the MVA Account. We do not guarantee any minimum Cash Surrender Value. On any date during the Contract’s accumulation phase, we calculate the Cash Surrender Value as follows: we start with your Accumulation Value, adjust for any MVA, and then deduct any surrender charge, any recapture of Premium Credits, any charge for premium taxes, any redemption fee, and any charges other than daily charges.

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Surrendering to Receive the Cash Surrender Value

You may surrender the Contract at any time while the annuitant is living and before the Annuity Commencement 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 ING Liquid Assets Portfolio) 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.

Consult your tax adviser regarding the tax consequences associated with surrendering your Contract. A surrender made before you reach age 59½ may result in a 10% tax penalty. See “Federal Tax Considerations” for more details.

Variable Sub-account Changes

We may make additional Variable Sub-accounts available to you under the Contract. We may also eliminate, combine or substitute underlying portfolios, subject to the conditions in your Contract, and subject to any required regulatory approvals, including SEC approval.

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 which is 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.

Subject to SEC approval, we 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 MVA Account

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The MVA Account is a segregated asset account which contains the assets that support Accumulation Value allocated to it. See Appendix B and the Fixed Account II prospectus for more information.

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State Variations

Contracts issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus. This prospectus provides a general description of the Contract. Please see your Contract for the details.

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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 Variable Sub-accounts. These products have different benefits, fees and charges, and may or may not better match your needs. 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. Also, broker/dealers selling the Contract may limit its availability or the availability of an optional feature (for example, by imposing restrictions on eligibility), or decline to make an optional feature available. Please talk to your registered representative for further details.

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Living Benefit Rider

You may choose to purchase the living benefit rider for an additional charge, subject to availability.

A living benefit rider does not guarantee any return of principal or premium payments and does not guarantee performance of any Variable Sub-accounts. You should consult a qualified financial adviser in evaluating the riders.

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MGIB Rider

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The MGIB Rider is an optional benefit which guarantees a minimum amount of annuity income will be available to you if you annuitize on the MGIB Date (as defined below), regardless of fluctuating market conditions. The minimum guaranteed amount of annuity income will depend on the amount of premiums you pay and the premium credits during the first five contract years after you purchase the rider, the premium credits we add, the amount of Accumulation Value you allocate or transfer to Special Funds (as defined below) or Excluded Funds (as defined below), the MGIB Rate (as defined below), the adjustment for Special Fund or Excluded Fund transfers, and any withdrawals you take while the MGIB Rider is in effect. Thus, investing in Special Funds or Excluded Funds may limit the benefit under the MGIB Rider.

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Purchase

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     To purchase the MGIB Rider, you must be age 75 or younger on the rider date and the ten-year waiting period must end at or prior to the latest Annuity Commencement Date. Some broker dealers may limit availability of the rider to younger ages. The MGIB Rider must be purchased on the contract date . The Company may in its discretion allow purchase of this rider after the contract date. The MGIB Rider is not available for purchase with the Max 7% Solution Death Benefit Rider. There is a ten-year waiting period before you can annuitize under the MGIB rider.

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Rider Date

     The rider date is the date the optional benefit rider becomes effective. The rider date is also the contract date if you purchase the rider when the Contract is issued.

No Cancellation

     Once you purchase a rider, you may not cancel it unless you cancel the Contract during the Contract’s free look period, surrender, annuitize or otherwise terminate the Contract. These events automatically cancel any rider. Once the Contract continues beyond the free look period, you may not cancel the rider. The Company may, at its discretion, cancel and/or replace a rider at your request in order to renew or reset a rider.

Termination

     The MGIB rider is a “living benefit,” which means the guaranteed benefit offered by the MGIB rider is intended to be available to you while you are living and while your Contract is in the accumulation phase. The MGIB rider automatically terminates if you:

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  • annuitize, surrender or otherwise terminate your Contract during the accumulation phase;
  • you die during the accumulation phase (first owner to die if there are multiple contract owners, or at death of annuitant if contract owner is not a natural person), unless your spouse beneficiary elects to continue the Contract;
  • the Accumulation Value is insufficient to pay the charge for the MGIB rider; or
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· there is a change in contract ownership (other than a spousal beneficiary continuation upon your death).

Rider Charge

The current charge we deduct under the MGIB Rider is 0.75% annually of the MGIB Charge Base. The MGIB Charge Base is the greater of (1) and (2) below, where:

1)      Is the lesser of the Maximum MGIB Rollup Base and the sum of (a), (b), and (c) where:
  (a)      is the MGIB Rollup Base for Covered Funds;
  (b)      is the MGIB Rollup Base for Special Funds (as defined below); and
  (c)      is the MGIB Rollup Base for Excluded Funds; and
2)      Is the sum of (a) and (b) where:
  (a)      is the MGIB Ratchet Base for Covered Funds and Special Funds; and
  (b)      is the MGIB Ratchet Base for Excluded Funds.
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For definitions of the Maximum MGIB Rollup Base, the MGIB Rollup Base for Covered Funds, the MGIB Rollup Base for Special Funds, the MGIB Rollup Base for Excluded Funds, the MGIB Ratchet Base for Covered Funds and Special Funds, and the MGIB Ratchet Base for Excluded Funds, see the “Calculation of MGIB Rollup Bases” and “Calculation of the MGIB Ratchet Bases” sections below. The charge will be prorated in the event the Contract or this Rider is cancelled or terminated for any reason other than insufficient Account Value.

Fund Classifications

     We have classified the Variable Sub-accounts (and the MVA Account) currently available as Covered Funds, Special Funds or Excluded Funds. For an overview of these classifications, see page 12. The MGIB Benefit Base (as defined below) is tracked separately for Covered Funds, Special Funds and Excluded Funds. The following investment options are currently classified as Special Funds for purposes of calculating the MGIB Benefit Base:

</R> <R>
  • ING Liquid Assets Portfolio; and
  • MVA Account.
</R> <R>

No investment options are currently classified as Excluded Funds. Covered Funds are any investment options not classified as Special Funds or Excluded Funds. These fund classifications apply to all calculations under the MGIB rider.

</R>

Fixed Allocation Funds Automatic Rebalancing

<R>

     In order to mitigate the insurance risk inherent in our guarantee to provide you a guaranteed minimum amount of annuity income if you annuitize on the MGIB date, (subject to the terms and restrictions of the MGIB rider), we require that your Accumulation Value be allocated in accordance with certain limitations. In general, to the extent that you choose not to invest in the Accepted Funds, we require that a proportion of the amount not so invested be invested in the Fixed Allocation Funds. We will require this allocation regardless of your investment instructions to the contract, as described below.

The MGIB rider has an allocation requirement. If the Accumulation Value in the Fixed Allocation Funds (as defined below) is less than a percentage of the total Accumulation Value allocated to the Fixed Allocation Funds and Other Funds (as defined below) on any MGIB Rebalancing Date (as defined below), we will automatically rebalance the Accumulation Value allocated to the Fixed Allocation Funds and Other Funds so that the appropriate percentage of this amount is allocated to the Fixed Allocation Funds. This is called Fixed Allocation Funds Automatic Rebalancing and the percentage is stated in your Contract. Currently, the minimum Fixed Allocation Fund percentage is zero. Accepted Funds are excluded from this rebalancing. Any rebalancing is done on a pro-rata basis among the Other Funds and will be the last transaction processed on that date.

</R>

The MGIB Rebalancing Dates occur on each Contract anniversary and after the following transactions:

1)      receipt of additional premiums;
2)      transfer or reallocation among the Fixed Allocation Funds or Other Funds, whether automatic or specifically directed by

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you; and

3) withdrawals from the Fixed Allocation Funds or Other Funds.

<R>

Currently, the Accepted Funds are:

</R>

BlackRock Global Allocation V.I. Fund
ING American Funds Asset Allocation Portfolio
ING American Funds World Allocation Portfolio
ING LifeStyle Conservative Portfolio
ING LifeStyle Growth Portfolio
ING LifeStyle Moderate Growth Portfolio
ING LifeStyle Moderate Portfolio
ING Liquid Assets Portfolio

ING MFS Total Return Portfolio
ING Oppenheimer Active Allocation Portfolio
ING Russell Global Large Cap Index 75% Portfolio
ING T. Rowe Price Capital Appreciation Portfolio
ING Van Kampen Equity and Income Portfolio
ING Van Kampen Global Tactical Asset Allocation Portfolio
Fixed Interest Allocation

<R>
</R> <R>

We may change these designations at any time upon 30 days notice to you. If a change is made, the change will apply to Accumulation Value allocated to such investment portfolios after the date of the change.

</R>

Currently, the Fixed Allocation Funds are:

<R>

ING American Funds Bond Portfolio
ING BlackRock Inflation Protected Bond Portfolio
ING U.S. Bond Index Portfolio

ING PIMCO Total Return Bond Portfolio
ING Intermediate Bond Portfolio

</R> <R>
</R> <R>

You may allocate Accumulation Value to one or more of the Fixed Allocation Funds. We consider the ING Intermediate Bond Portfolio to be the default Fixed Allocation Fund with Fixed Allocation Funds Automatic Rebalancing.

</R>

All investment portfolios available under the Contract that are not Accepted Funds or the Fixed Allocation Funds are considered Other Funds.

Fixed Allocation Funds Automatic Rebalancing is separate from any other automatic rebalancing under the Contract. However, if the other automatic rebalancing under the Contract causes the allocations to be out of compliance with the investment portfolio restrictions noted above, Fixed Allocation Funds Automatic Rebalancing will occur immediately after the automatic rebalancing to restore the required allocations. See “Appendix I – Examples of Fixed Allocation Funds Automatic Rebalancing.”

<R>

In certain circumstances, Fixed Allocation Funds Automatic Rebalancing may result in a reallocation into the Fixed Allocation Funds even if you have not previously been invested in it. By electing to purchase the MGIB rider, you are providing the Company with direction and authorization to process these transactions, including reallocations into the Fixed Allocation Funds. You should not purchase the MGIB rider if you do not wish to have your Accumulation Value reallocated in this manner.

</R>

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MGIB Benefit Base

<R>

     The MGIB Benefit Base (as defined below) is only a calculation used to determine the MGIB annuity income. The MGIB Benefit Base does not represent a Accumulation Value, nor does it guarantee performance of the subaccounts in which you are invested. It is also not used in determining the amount of your cash surrender value and death benefits. Any reset of Accumulation Value under provisions of the Contract or other riders will not increase the MGIB Benefit Base or Maximum MGIB Rollup Base (as defined below). On the MGIB Date, your MGIB Benefit Base is the greater of (1) and (2), where:

</R> <R>
1)      Is the lesser of the Maximum MGIB Rollup Base (as defined below) and the sum of (a), (b), and (c) where:
  (a)      is the MGIB Rollup Base for Covered Funds; and
  (b)      is the MGIB Rollup Base for Special Funds; and
  (c)      is the Accumulation Value allocated to Excluded Funds; and
2)      Is the sum of (a) and (b) where:
  (a)      is the MGIB Ratchet Base for Covered Funds and Special Funds (as defined below); and
  (b)      is the Accumulation Value allocated to Excluded Funds.
</R> <R>

The MGIB Benefit Base calculation differs from the MGIB Charge Base calculation because it uses the Accumulation Value allocated to Excluded Funds rather than the MGIB Ratchet Base and MGIB Rollup Base allocated to Excluded Funds. This means that the amount on which you pay charges for the MGIB rider may be higher than the amount used to calculate your benefit under the MGIB rider.

</R>

Calculation of MGIB Rollup Bases

<R>

     The Maximum MGIB Rollup Base is 250% of eligible premiums and premium credits adjusted pro-rata for withdrawals, subject to availability. This means that the Maximum MGIB Rollup Base is reduced for withdrawals by the same proportion that the withdrawal reduces the Accumulation Value. The Maximum MGIB Rollup Base is not allocated by fund category.

</R>

The MGIB Rollup Base allocated to Covered Funds equals the eligible premiums and premium credits allocated to Covered Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB Rate to the earlier of the oldest owner reaching age 80 and the MGIB Rollup Base reaching the Maximum MGIB Rollup Base, and at 0% thereafter.

The MGIB Rollup Base allocated to Special Funds equals the eligible premiums and premium credits allocated to Special Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect. The MGIB Rate does not apply to the MGIB Rollup Base allocated to Special Funds, so the MGIB Rollup Base allocated to Special Funds does not accumulate.

The MGIB Rollup Base allocated to Excluded Funds equals the eligible premiums and premium credits allocated to Excluded Funds, adjusted for subsequent withdrawals and transfers taken or made while the MGIB rider is in effect, accumulated at the MGIB rate to the earlier of the oldest owner reaching age 80 and the MGIB Rollup Base reaching the Maximum MGIB Rollup Base, and at 0% thereafter. The MGIB Rollup Base allocated to Excluded Funds is used only for transfer adjustments and rider charges. It is not included in the MGIB Rollup Base used to determine benefits.

Eligible premiums are those premiums and related premium credits added more than 5 years before the earliest MGIB Date. This means that, generally, premiums must be paid and premium credits added within five years of purchasing the MGIB rider to be considered eligible premiums. Premiums and related premium credits added after that are excluded from the MGIB Rollup Bases.

<R>

The MGIB Rate is currently 6%. The MGIB Rate is an annual effective rate. We may, at our discretion, discontinue offering this rate. The MGIB Rate will not change for those contracts that have already purchased the MGIB rider.

Withdrawals reduce each MGIB Rollup Base on a pro-rata basis. The percentage reduction in the MGIB Rollup Base for each Fund category (i.e., Covered Funds, Special Funds or Excluded Funds) equals the percentage reduction in Accumulation Value in that Fund category resulting from the withdrawal (including surrender charge and market value adjustment). This means that the MGIB Rollup Base for Covered Funds, the MGIB Rollup Base for Special Funds or the MGIB Rollup Base for Excluded Funds is reduced for withdrawals by the same proportion that the withdrawal reduces the Accumulation Value allocated to Covered Funds, Special Funds or Excluded Funds. For example, if the Accumulation Value in Covered Funds is reduced by 25% as the result of a withdrawal (including surrender charge and market value adjustment), the MGIB Rollup Base

</R>

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allocated to Covered Funds is also reduced by 25% (rather than by the amount of the withdrawal).

<R>

When you make transfers between Covered Funds, Special Funds and Excluded Funds, net transfers from a fund category will reduce the applicable MGIB Rollup Base for that fund category on a pro-rata basis. This means a reduction by the same percentage as the transfer bears to the Accumulation Value in the fund category. For example, if the Accumulation Value in Covered Funds is $1000 and the transfer from Covered Funds to Excluded Funds is $250, then the Accumulation Value in Covered Funds is reduced by 25%. In a case where the MGIB Rollup Base for Covered Funds is $1200, the MGIB Rollup Base for Covered Funds is also reduced by 25%, or $300, rather than by the amount of the transfer, or $250. In addition, the MGIB Rollup Base for Excluded Funds is increased by the reduction in the MGIB Rollup Base for Covered Funds, or $300.

In a case where the MGIB Rollup Base for Covered Funds is greater than the Accumulation Value in Covered Funds, a transfer from Covered Funds will result in the MGIB Rollup Base for Covered Funds being reduced by a dollar amount that is higher than the dollar amount of the transfer. A higher reduction to the MGIB Rollup Base for Covered Funds will have a larger negative impact on the MGIB Benefit Base, potentially reducing the minimum guaranteed amount of annuity income upon annuitization under the MGIB rider. This means the benefit you receive under the MGIB rider will not be as great because of the transfer.

Net transfers from Excluded Funds will also reduce the MGIB Rollup Base for Excluded Funds on a pro-rata basis. But the resulting increase in the MGIB Rollup Base for Covered Funds or Special Funds, as applicable, will equal the lesser of the Accumulation Value transferred and the reduction in the MGIB Rollup Base for Excluded Funds. What this means, if in the previous example the transfer was from Excluded Funds to Covered Funds, is there would be no change in the value of your MGIB Benefit Base because of the transfer – the amount of the transfer between the fund categories is the same, $250, because the MGIB Benefit Base calculation is based on the Accumulation Value allocated to Excluded Funds, versus the calculation basis for Excluded Funds with the MGIB Charge Base. The MGIB Charge Base calculation is instead based on the MGIB Rollup Base for Excluded Funds. As a result, this same transfer, having no change in the value of your MGIB Benefit Base, would result in the MGIB Charge Base being reduced. The net effect of this transfer: You pay less for the same minimum guaranteed amount of annuity income upon annuitization of the MGIB rider.

</R>

Calculation of MGIB Ratchet Bases

The MGIB Ratchet Base for Covered Funds and Special Funds equals:

<R>
1)      on the rider date, eligible premiums plus premium credits or the Accumulation Value (if the rider is added
  after      the contract date) allocated to Covered Funds and Special Funds.
2)      on each contract anniversary prior to attainment of age 90, the MGIB Ratchet Base for Covered Funds
  and      Special Funds is set equal to the greater of:
  (a)      the current Accumulation Value allocated to Covered Funds and Special Funds (after any deductions occurring on that date); and
  (b)      the MGIB Ratchet Base for Covered Funds and Special Funds from the most recent prior contract anniversary , adjusted for any new eligible premiums, withdrawals attributable to Covered Funds and Special Funds, and transfers.
   Whenever the date falls on a weekend or holiday, we will use the value as of the subsequent business day.
3)      at other times, the MGIB Ratchet Base for Covered Funds and Special Funds is the corresponding MGIB Ratchet Base
  from      the prior contract anniversary , adjusted for subsequent eligible premiums, withdrawals attributable to
  Covered      Funds and Special Funds, and transfers.
</R>

The MGIB Ratchet Base for Excluded Funds has a corresponding definition with respect to amounts allocated to Excluded Funds.

The MGIB Ratchet Base for Excluded Funds is used only for transfer adjustments and MGIB rider charges. It is not included in the MGIB Ratchet Base used to determine benefits.

<R>

Eligible premiums are those premiums and related premium credits, added more than 5 years before the earliest MGIB Date. This means that, generally, premiums and related premium credits, must be paid within five years of purchasing the MGIB rider to be considered eligible premiums. Premiums and related premium credits, paid after that are not added to the MGIB Ratchet Bases, but would be added to your Accumulation Value.

</R>

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<R>

Withdrawals reduce each MGIB Ratchet Base on a pro-rata basis. The percentage reduction in the MGIB Ratchet Base for each fund category (i.e., Covered Funds and Special Funds or Excluded Funds) equals the percentage reduction in Accumulation Value in that fund category resulting from the withdrawal (including surrender charges and market value adjustment). This means that the MGIB Ratchet Base for Covered Funds and Special Funds or the MGIB Ratchet Base for Excluded Funds is reduced for withdrawals by the same proportion that the withdrawal (including surrender charges and market value adjustment) reduces the Accumulation Value allocated to Covered Funds and Special Funds or Excluded Funds. For example, if the Accumulation Value in Covered Funds and Special Funds is reduced by 25% as the result of a withdrawal (including surrender charges and market value adjustment), the MGIB Ratchet Base for Covered Funds and Special Funds is also reduced by 25% (rather than by the amount of the withdrawal).

When you make transfers between Covered Funds or Special Funds and Excluded Funds, net transfers will reduce the MGIB Ratchet Base for Covered Funds and Special Funds on a pro-rata basis. This means a reduction by the same percentage as the transfer bears to the Accumulation Value in Covered Funds and Special Funds. For example, if the Accumulation Value in Covered Funds and Special Funds is $1000 and a transfer from Covered Funds or Special Funds to Excluded Funds is $250, then the Accumulation Value in Covered Funds and Special Funds is reduced by 25%. In a case where the MGIB Ratchet Base for Covered Funds and Special Funds is $1200, the MGIB Ratchet Base for Covered Funds and Special Funds is also reduced by 25%, or $300, rather than by the amount of the transfer, or $250. In addition, the MGIB Rollup Base for Excluded Funds is increased by the reduction in the MGIB Ratchet Base for Covered Funds and Special Funds, or $300.

In a case where the MGIB Ratchet Base for Covered Funds and Special Funds is greater than the Accumulation Value in Covered Funds and Special Funds, a transfer from Covered Funds and Special Funds will result in the MGIB Ratchet Base for Covered Funds and Special Funds being reduced by a dollar amount that is higher than the dollar amount of the transfer. A higher reduction to the MGIB Ratchet Base for Covered Funds and Special Funds will have a larger negative impact on the MGIB Benefit Base, potentially reducing the minimum guaranteed amount of annuity income upon annuitization under the MGIB rider. This means the benefit you receive under the MGIB rider will not be as great because of the transfer.

Net transfers from Excluded Funds will also reduce the MGIB Ratchet Base for Excluded Funds on a pro-rata basis. But the resulting increase in the MGIB Ratchet Base for Covered Funds and Special Funds will equal the lesser of the Accumulation Value transferred and the reduction in the MGIB Ratchet Base for Excluded Funds. What this means, if in the previous example the transfer was from Excluded Funds to Covered Funds, is there would be no change in the value of your MGIB Benefit Base because of the transfer – the amount of the transfer between the fund categories is the same, $250, because the MGIB Benefit Base calculation is based on the Accumulation Value allocated to Excluded Funds, versus the calculation basis for Excluded Funds with the MGIB Charge Base. The MGIB Charge Base calculation is instead based on the MGIB Ratchet Base for Excluded Funds. As a result, this same transfer, having no change in the value of your MGIB Benefit Base, would result in the MGIB Charge Base being reduced. The net effect of this transfer: You pay less for the same minimum guaranteed amount of annuity income upon annuitization of the MGIB rider.

</R>

MGIB Date

     If you purchased the MGIB rider on the contract date or added the MGIB rider within 30 days following the contract date, the MGIB Date is the contract anniversary on or after the tenth contract anniversary when you decide to exercise your right to annuitize under the MGIB rider. If you added the MGIB rider at any other time, your MGIB Date is the contract anniversary occurring at least 10 years after the date when you decide to exercise your right to annuitize under the MGIB rider.

MGIB Annuity Income

<R>

     Ordinarily, the amount of income that will be available to you on the Annuity Commencement Date is based on your Accumulation Value, the annuity option you selected and the guaranteed income factors or the income factors in effect on the date you annuitize. If you purchase the MGIB rider, the amount of income that will be available to you upon annuitization on the MGIB Date is the greatest of:

</R> <R>
1)      your annuity income based on your Accumulation Value on the MGIB Date adjusted for any market value adjustment (see Appendix B and the Fixed Account II prospectus) applied to the guaranteed income factors specified in your Contract for the annuity option you selected;
2)      your annuity income based on your Accumulation Value on the MGIB Date adjusted for any market value adjustment (see Appendix B and the Fixed Account II prospectus) applied to the then-current income factors in effect for the annuity option you selected; or
</R>

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<R>
3)      the MGIB annuity income based on your MGIB Benefit Base on the MGIB Date applied to the MGIB income factors specified in your rider for the MGIB annuity option you selected. Prior to applying the MGIB income factors, we will adjust the MGIB Benefit Base for any premium credit deductions, surrender charge, premium tax recovery and market value adjustment (see Appendix B and the Fixed Account II prospectus) that would otherwise apply at annuitization.
</R>

MGIB Income Factors

<R>

     The guaranteed factors contained in the MGIB rider generally provide lower payout per $1,000 of value applied than the guaranteed income factors found in your Contract. Although the minimum income provided under the rider can be determined in advance, the Accumulation Value in the future is unknown, so the income provided under a contract with the MGIB rider attached may be greater or less than the income that would be provided under the Contract without the rider. Generally, the income calculated under the MGIB rider will be greater than the income provided under the Contract whenever the MGIB Benefit Base is sufficiently in excess of the Accumulation Value to offset the additional conservatism reflected in the MGIB rider’s income factors compared to those in the Contract. The income factors in the MGIB rider generally reflect a lower interest rate and more conservative mortality than the income factors in the Contract. The degree of relative excess that the income factors require to produce more income will vary for each individual circumstance. If the Accumulation Value exceeds the MGIB Benefit Base at time of annuitization, the Contract will always produce greater income than the MGIB rider. Please see “Appendix E — Examples of Minimum Guaranteed Income Benefit Calculation.”

</R>

MGIB Annuity Options

     Prior to your latest Annuity Commencement Date, you may choose to exercise your right to receive payments under the MGIB rider. Payments under the rider begin on the MGIB Date. We require a 10-year waiting period before you can annuitize the MGIB rider benefit. The MGIB must be exercised in the 30-day period prior to the end of any contract anniversary that occurs at least ten years after the MGIB rider date. At your request, the Company may, at its discretion, extend the latest contract Annuity Commencement Date without extending the MGIB Date.

The following are the MGIB annuity options available under the MGIB Rider:

1)      Income for Life (single life or joint life with 100% Survivor) and 10-20 year fixed period.
2)      Income for 20-30 year fixed period.
3)      Any other annuity option offered by the Company in conjunction with the MGIB rider on the MGIB Date.
<R>

Once during the life of the Contract, you have the option to elect to apply up to 50% of the MGIB Benefit Base to one of the MGIB annuity options available under the MGIB rider. This option may only be exercised in the 30 day period prior to a contract anniversary at or after the end of the waiting period. The portion of the MGIB Benefit Base so applied will be used to determine the MGIB income, as is otherwise described in the prospectus. The Accumulation Value will be reduced on a pro-rata basis. Any subsequent exercise of your right to receive payments under the MGIB rider must be for 100% of the remaining value. The exercise of this partial annuitization of the MGIB Benefit Base does not affect your right to annuitize remaining value under the Contract without regard to the MGIB rider. The amount applied to the partial annuitization will be treated as a withdrawal for purposes of adjusting contract and MGIB rider values. This means the contract and MGIB rider values will be adjusted on a pro-rata basis. See “Calculation of MGIB Rollup Bases” and “Calculation of MGIB Ratchet Bases” above. Surrender charges will apply to amounts applied to partial annuitization.

</R>

Please note that if you elect partial annuitization, annuity payments received will be treated as withdrawals by us. Please consult your tax adviser before making this election, as the Tax Code is unclear on the taxation of partial annuitization.

Notification

     On or before 30 days prior to each possible MGIB Date, we will provide you with a notification which will include an estimate of the amount of MGIB annuity benefit available if you choose to exercise it. We will determine the actual amount of the MGIB annuity benefit as of the MGIB Date.

Change of Owner and Annuitant

     The MGIB rider will terminate upon a change of ownership unless the change is due to spousal continuation at the time of the owner’s death. Once you purchase the MGIB rider, the annuitant may not be changed except when an annuitant who is not a contract owner dies prior to annuitization. In such a case, a new annuitant may be named in accordance with the provisions of your Contract. The MGIB Benefit Base is unaffected and continues to accumulate.

Death of Owner

The MGIB rider and the MGIB rider charges automatically terminate if you die during the accumulation phase (first owner to die

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if there are multiple contract owners, or at death of the annuitant if the contract owner is not a natural person), unless your spouse beneficiary elects to continue the Contract.

The MGIB rider does not restrict or limit your right to annuitize the Contract at any time permitted under the Contract. The MGIB rider does not restrict your right to annuitize the Contract using Contract income factors that may be higher than the MGIB rider income factors.

<R>

The benefits associated with the MGIB rider are available only if you annuitize your Contract under the rider and in accordance with the provisions set forth above. Annuitizing using the MGIB may result in a more favorable stream of income payments, and different tax consequences, under your Contract. Because the MGIB rider income factors are generally more conservative than the Contract income factors, the level of lifetime income that it guarantees may be less than the level that might be provided by the application of your Accumulation Value to the Contract’s applicable annuity factors. You should consider all of your options at the time you begin the income phase of your Contract.

</R>

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<R> </R>

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</R> <R> </R> <R> </R> <R> </R>

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</R>

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<R>
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Withdrawals

Except under certain qualified contracts, you may withdraw all or part of your money any time before the Annuity Commencement Date or the death of the Owner. A Withdrawal will be deemed a Surrender and the Cash Surrender Value will be paid if, at the time of the Withdrawal, no Premiums have been received for the prior 24 months and the Withdrawal reduces the Cash Surrender Value remaining after the Withdrawal to less than $1,000. If any single withdrawal or the sum of withdrawals exceeds the Free Withdrawal Amount, you will incur a surrender charge. The Free Withdrawal Amount is 10% of the Accumulation Value, including any premium credits, less any Withdrawals already taken during the Contract Year, as determined on the date of the Withdrawal.

You need to submit to us a written request specifying the MVA Account or Variable Sub-accounts from which to withdraw amounts, otherwise we will make the Withdrawal on a pro-rata basis from all of the Variable Sub-accounts in which you are invested. If there is not enough Accumulation Value in the Variable Sub-accounts, we will deduct the balance of the Withdrawal from your MVA Account starting with the Guaranteed Periods nearest their maturity until we have honored your request. We will apply an MVA to any Withdrawal from the MVA Account taken more than 30 days before its maturity date. Definitive guidance on the proper federal tax treatment of the MVA has not been issued. You may want to discuss the potential tax consequences of a MVA with your tax adviser. We will determine the Accumulation Value as of the close of business on the day we receive your Withdrawal request. The Accumulation Value may be more or less than the premium payments made.

For administrative purposes, we will transfer your money to the Specially Designated Variable Sub-account (currently, the ING Liquid Assets Portfolio) prior to processing the withdrawal. This transfer will not affect the withdrawal amount you receive.

<R>

Please be aware that the benefit we pay under a Rider may be reduced by any withdrawals you take while the optional benefit rider is in effect. Withdrawals may be subject to taxation and tax penalties.

</R>

We offer the following three withdrawal options:

Regular Withdrawals

<R>

After the Right to Examine Period, you may make regular Withdrawals. Each Withdrawal must be a minimum of $100. We will apply an MVA to any regular Withdrawal you take from the MVA Account more than 30 days before its maturity date. See Appendix B and the Fixed Account II prospectus for more information on the application of the MVA.

</R>
Systematic Withdrawals   
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You may choose to receive automatic systematic withdrawal payments (i) from the Accumulation Value in the Variable Sub-accounts in which you are invested, or (ii) from the interest earned on the MVA Account. You may not elect systematic withdrawals if you are taking IRA withdrawals. Systematic withdrawals may be taken monthly, quarterly or annually. There is no additional charge for this feature.

<R>

You decide the date on which you would like your systematic withdrawals to start. This date must be at least 30 days after the Contract Date and no later than the 28th day of the month. Subject to these rules, if you have not indicated the date, your systematic withdrawals will occur on the next Business Day after your Contract Date (or the monthly or quarterly anniversary thereof) for your desired frequency.

Each systematic withdrawal amount must be a minimum of $100. The amount of your systematic withdrawal can either be (i) a fixed dollar amount or (ii) an amount based on a percentage of your Accumulation Value. Both forms of systematic withdrawals are subject to the applicable maximum as shown below, which is calculated on each withdrawal date:

</R> <R>
  Maximum Percentage 
Frequency  of Accumulation 
  Value 
Monthly  0.83% 
Quarterly  2.50% 
Annually  10.00% 

</R> <R>

A fixed dollar systematic withdrawal of less than $100 on any withdrawal date will terminate your systematic withdrawal. If the amount to be withdrawn would exceed the applicable maximum percentage of your Accumulation Value on any withdrawal date, we will automatically reduce the amount withdrawn so that it equals such percentage. If you want fixed dollar systematic withdrawals to exceed the maximum percentage and are willing to incur associated surrender charges, consider the Fixed Dollar Systematic Withdrawal Feature discussed below which you may add to your regular fixed dollar systematic withdrawal program.

</R>

If your systematic withdrawal is based on a percentage of your Accumulation 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 the MVA Account to interest earnings during the prior month, quarter, or year, depending on the frequency you chose. Accordingly, systematic withdrawals would not be subject to an MVA, unless you have added the Fixed Dollar Systematic Withdrawal Feature discussed below and the payments exceed interest earnings. Systematic withdrawals from the MVA Account under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. The MVA Account 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.

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 in addition to your systematic withdrawal program regardless of any potential impact of surrender charges or an MVA. Systematic withdrawals from the MVA Account under the Fixed Dollar Systematic Withdrawal Feature are available only in connection with Section 72(q) and 72(t) distributions. You choose the

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amount of the fixed systematic withdrawals, which may total up to a maximum of 10% of your Accumulation 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 surrender charge on the withdrawal date if the Withdrawal exceeds the maximum limit as calculated on the withdrawal date. We will assess an MVA on the withdrawal date if the Withdrawal from the MVA Account exceeds your interest earnings on the withdrawal date. We will apply the surrender charge and any MVA directly to your Accumulation Value (rather than to the Withdrawal) so that the amount of each systematic withdrawal remains fixed.

Fixed dollar systematic withdrawals which are intended to satisfy the requirements of Section 72(q) or 72(t) of the Tax Code may exceed the maximum. Such Withdrawals are subject to surrender charges and an MVA when they exceed the applicable maximum percentage.

IRA Withdrawals

If you have a non-Roth IRA Contract and will be at least age 70½ 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.

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You choose the frequency of your IRA withdrawals (monthly, quarterly or annually) and the start date . This date must be at least 30 days after the Contract Date and no later than the 28th day of the month. Subject to these rules, if you have not indicated the date, your IRA withdrawals will occur on the next Business Day after your contract Date for your desired frequency.

You may request us to calculate the amount you are required to withdraw 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, see the SAI. 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 Accumulation Value, we will cancel the Contract and send you the amount of the cash surrender value.

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You may change the payment frequency of your IRA withdrawals 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.

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.

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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 59½ may result in a 10% penalty tax. See page 56 for more details.

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Transfers Among Your Investments (Excessive Trading Policy)

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Between the end of the free look period and the Annuity Commencement Date, you may transfer your Accumulation 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 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. We will apply a Market Value Adjustment to transfers from a Fixed Interest Allocation taken more than 30 days before its maturity date, unless the transfer is made under the dollar cost averaging program. Keep in mind that transfers between Covered Funds, Special Funds and Excluded Funds may negatively impact your death benefit or rider benefits.

Please be aware that the benefit we pay under an optional benefit rider may be affected by certain transfers you make while the rider is in effect. Transfers, including those involving Special Funds, may also affect your optional rider base.

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The minimum amount that you may transfer is $100 or, if less, your entire Accumulation Value held in a subaccount or a Fixed Interest Allocation. 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 on which we receive the transfer request at our Customer Service Center. If we receive your transfer request after 4 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.

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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 by other approved electronic means. Please be advised that the risk of a fraudulent transaction is increased with telephonic or electronic instructions, even if appropriate identifying information is provided.

Limits on Frequent or Disruptive Transfers

The contract is not designed to serve as a vehicle for frequent transfers. Frequent transfer activity can disrupt management of a fund and raise its expenses through:

  • Increased trading and transaction costs;
  • Forced and unplanned portfolio turnover;
  • Lost opportunity costs; and
  • 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 or make frequent transfers should not purchase the contract.

Excessive Trading Policy

We and the other members of the ING family of companies that provide multi-fund variable insurance and retirement products, have adopted a common Excessive Trading Policy to respond to the demands of the various fund families that make their funds available through our products to restrict excessive fund trading activity and to ensure compliance with Rule 22c-2 of the 1940 Act.

We actively monitor fund transfer and reallocation activity within our variable insurance products to identify violations of our Excessive Trading Policy. Our Excessive Trading Policy is violated if fund transfer and reallocation activity:

  • Meets or exceeds our current definition of Excessive Trading, as defined below; or
  • Is determined, in our sole discretion, to be disruptive or not in the best interests of other owners of our variable insurance and retirement products.

We currently define Excessive Trading as:

  • More than one purchase and sale of the same fund (including money market funds) within a 60 calendar day period (hereinafter, a purchase and sale of the same fund is referred to as a “round-trip”). This means two or more round-trips involving the same fund within a 60 calendar day period would meet our definition of Excessive Trading; or
  • Six round-trips involving the same fund within a twelve month period.

The following transactions are excluded when determining whether trading activity is excessive:

  • Purchases or sales of shares related to non-fund transfers (for example, new purchase payments, withdrawals and loans);
  • Transfers associated with scheduled dollar cost averaging, scheduled rebalancing or scheduled asset allocation programs;
  • Purchases and sales of fund shares in the amount of $5,000 or less;
  • Purchases and sales of funds that affirmatively permit short-term trading in their fund shares, and movement between such funds and a money market fund; and
  • Transactions initiated by us, another member of the ING family of insurance companies or a fund.

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If we determine that an individual or entity has made a purchase of a fund within 60 days of a prior round-trip involving the same fund, we will send them a letter (once per year) warning that another sale of that same fund within 60 days of the beginning of the prior round-trip will be deemed to be Excessive Trading and result in a six month suspension of their ability to initiate fund transfers or reallocations through the Internet, facsimile, Voice Response Unit (VRU), telephone calls to the ING Customer Service Center, or other electronic trading medium that we may make available from time to time (“Electronic Trading Privileges”). Likewise, if we determine that an individual or entity has made five round-trips involving the same fund within a rolling twelve month period, we will send them a letter warning that another purchase and sale of that same fund within twelve months of the initial purchase in the first round-trip in the prior twelve month period will be deemed to be Excessive Trading and result in a suspension of their Electronic Trading Privileges. According to the needs of the various business units, a copy of the warning letters may also be sent, as applicable, to the person(s) or entity authorized to initiate fund transfers or reallocations, the agent/registered representative or investment adviser for that individual or entity. A copy of the warning letters and details of the individual’s or entity’s trading activity may also be sent to the fund whose shares were involved in the trading activity.

If we determine that an individual or entity has violated our Excessive Trading Policy, we will send them a letter stating that their Electronic Trading Privileges have been suspended for a period of six months. Consequently, all fund transfers or reallocations, not just those which involve the fund whose shares were involved in the activity that violated our Excessive Trading Policy, will then have to be initiated by providing written instructions to us via regular U.S. mail. Suspension of Electronic Trading Privileges may also extend to products other than the product through which the Excessive Trading activity occurred. During the six month suspension period, electronic “inquiry only” privileges will be permitted where and when possible. A copy of the letter restricting future transfer and reallocation activity to regular U.S. mail and details of the individual’s or entity’s trading activity may also be sent, as applicable, to the person(s) or entity authorized to initiate fund transfers or reallocations, the agent/registered representative or investment adviser for that individual or entity and the fund whose shares were involved in the activity that violated our Excessive Trading Policy.

Following the six month suspension period during which no additional violations of our Excessive Trading Policy are identified, Electronic Trading Privileges may again be restored. We will continue to monitor the fund transfer and reallocation activity, and any future violations of our Excessive Trading Policy will result in an indefinite suspension of Electronic Trading Privileges. A violation of our Excessive Trading Policy during the six month suspension period will also result in an indefinite suspension of Electronic Trading Privileges.

We reserve the right to suspend Electronic Trading Privileges with respect to any individual or entity, with or without prior notice, if we determine, in our sole discretion, that the individual’s or entity’s trading activity is disruptive or not in the best interests of other owners of our variable insurance products, regardless of whether the individual’s or entity’s trading activity falls within the definition of Excessive Trading set forth above.

Our failure to send or an individual’s or entity’s failure to receive any warning letter or other notice contemplated under our Excessive Trading Policy will not prevent us from suspending that individual’s or entity’s Electronic Trading Privileges or taking any other action provided for in our Excessive Trading Policy.

We do not allow exceptions to our Excessive Trading Policy. We reserve the right to modify our Excessive Trading Policy, or the policy as it relates 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 our policy, it will be applied uniformly to all contract owners or, as applicable, to all contract owners investing in the underlying fund.

Our Excessive Trading Policy may not be completely successful in preventing market timing or excessive trading activity. If it is not completely successful, fund performance and management may be adversely affected, as noted above.

Limits Imposed by the Funds

Each underlying fund available through the variable insurance and retirement products offered by us and/or the other members of the ING family of insurance companies, either by prospectus or stated contract, has adopted or may adopt its own excessive/frequent trading policy, and orders for the purchase of fund shares are subject to acceptance or rejection by the underlying fund. We reserve the right, without prior notice, to implement fund purchase restrictions and/or limitations on an individual or entity that the fund has identified as violating its excessive/frequent trading policy and to reject any allocation or transfer request to a subaccount if the corresponding fund will not accept the allocation or transfer for any reason. All such restrictions and/or limitations (which may include, but are not limited to, suspension of Electronic Trading Privileges and/or blocking of future purchases of a fund or all funds within a fund family) will be done in accordance with the directions we receive from the fund.

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Agreements to Share Information with Fund Companies

As required by Rule 22c-2 under the 1940 Act, we have entered into information sharing agreements with each of the fund companies whose funds are offered through the contract. Contract owner trading information is shared under these agreements as necessary for the fund companies to monitor fund trading and our implementation of our Excessive Trading Policy. Under these agreements, the company is required to share information regarding contract owner transactions, including but not limited to information regarding fund transfers initiated by you. In addition to information about contract owner transactions, this information may include personal contract owner information, including names and social security numbers or other tax identification numbers.

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As a result of this information sharing, a fund company may direct us to restrict a contract owner’s transactions if the fund determines that the contract owner has violated the fund’s excessive/frequent trading policy. This could include the fund directing us to reject any allocations of premium or Accumulation Value to the fund or all funds within the fund family.

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Dollar Cost Averaging

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You are eligible to participate in dollar cost averaging (DCA) starting 30 days after the Contract Date. There is no additional charge for DCA. DCA is not available with automatic rebalancing and may be subject to limited availability with systematic withdrawals.

You must use the Specially Designated Variable Sub-account, currently the ING Liquid Assets Portfolio. The duration is 3 months for your monthly transfers, or any longer duration you may specify, so long as you meet the minimum monthly transfer amount of $100.

We also may offer DCA from the MVA Account for Initial Premium and Additional Premium. The duration for DCA from the MVA Account is limited to 6 months and 1 year, subject to availability. DCA from the MVA Account requires a minimum monthly transfer amount of $100.

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DCA is designed to lessen the impact of market fluctuation on your investment. Since we transfer the same dollar amount to other Variable Sub-accounts each month, more units of a Variable Sub-account 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 DCA, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels.

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We will transfer all your money allocated to that source account into the Variable Sub-account(s) you specify in equal payments over the relevant duration. The last payment will include earnings accrued over the duration. If you make an additional Premium payment into an MVA Account subject to DCA, the amount of your transfers under the DCA remains the same, unless you instruct us to increase the transfer amount.

Transfers under DCA are not subject to an MVA. However, if you terminate the DCA for the MVA Account and there is money remaining in the MVA Account, we will transfer the remaining money to the ING Liquid Assets Portfolio. Such transfer will trigger an MVA if the transfer is made more than 30 days before the maturity date of the MVA Account.

If you do not specify to which Variable Sub-accounts you want to transfer the dollar amount of the source account, we will transfer the money to the Variable Sub-accounts in which you are invested on a proportional basis, subject to any fund purchase restrictions. The transfer date is the same day each month as your contract date. If, on any transfer date, your Accumulation 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 DCA at any time by sending satisfactory Notice to Us at least 7 days before the next transfer date.

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Transfers under the DCA must be in compliance with the investment restrictions for the living benefit riders. If you set up DCA transfers that are not in compliance with such restrictions, the fixed allocation funds automatic rebalancing feature of those living benefit riders will automatically rebalance the amounts to bring them into compliance.

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We may modify, suspend or terminate the DCA. Such change will not affect any DCAs in operation at the time.

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Automatic Rebalancing

If you have at least $10,000 of Accumulation Value invested in the Variable Sub-accounts, you may elect to have your investments in the Variable Sub-accounts automatically rebalanced. Automatic rebalancing is not available if you participate in DCA. Automatic rebalancing will not take place during the free look period. Automatic rebalancing is subject to any fund purchase restrictions; however, transfers made pursuant to automatic rebalancing do not count toward the 12-transfer limit on free transfers. There is no additional charge for this feature.

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We will transfer your Contract’s Accumulation Value on a quarterly, semi-annual, or annual calendar basis among the Variable Sub-accounts to maintain the investment blend of your selected Variable Sub-accounts. The minimum size of any allocation must be in full percentage points. Rebalancing does not affect any amounts that you have allocated to the MVA Account. The program may be used in conjunction with the systematic withdrawal option only if withdrawals are taken pro-rata.

To participate in automatic rebalancing, send satisfactory Notice to Us. 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 Accumulation Value among the Variable Sub-accounts or if you pay any Additional Premiums or take a Withdrawal on other than a pro-rata basis. Additional Premium and Withdrawals made on a pro-rata basis will not cause the automatic rebalancing program to terminate.

Death Benefit Riders

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The Contract provides for a Death Benefit equal to the greater of the Cash Surrender Value or Accumulation Value less any recapture of Premium Credits. The Death Benefit is payable when any Owner (Annuitant when the Owner is not an individual), dies before the Annuity Commencement Date. Assuming you are the Owner, your Beneficiary will receive a Death Benefit unless the Beneficiary is your surviving spouse and elects to continue the Contract. We will calculate the Death Benefit with Notice to Us on the Business Day we receive Due Proof of Death and generally pay it within 7 days of the Claim Date. The Death Benefit may be received in a single sum, applied to an Annuity Plan, or, if available, paid over the Beneficiary’s lifetime. (See “Systematic Withdrawals” above). A Beneficiary’s right to elect an Annuity Plan or receive a lump-sum payment may have been restricted by the 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 to an Annuity Plan, 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, which can be accessed by the Beneficiary through a checkbook feature. The Beneficiary may access Death Benefit proceeds at any time without penalty. For information on required distributions under federal income tax laws, you should see “Required Distributions upon Contract Owner’s Death” below. Interest earned on this account may be less than interest paid on other settlement options and the Company seeks to make a profit on these accounts.

You must choose 1 of the 3 guaranteed Death Benefit Riders: the Standard Death Benefit Rider, the Annual Ratchet Death Benefit Rider or the Max 7% Solution Death Benefit Rider. Neither the Annual Ratchet Death Benefit Rider nor the Max 7% Solution Death Benefit Rider is available when a Contract is owned by joint Owners. Also, the EMDB Rider is not available with joint Owners. Not all Death Benefits are available in every state. For more information about maximum Issue Ages, see page 17. If you do not choose a Death Benefit, your Death Benefit will be the Standard Death Benefit.

Once you choose a Death Benefit, you cannot change it. A change in ownership of the Contract may affect the amount of the Death Benefit. The Death Benefit may be subject to certain mandatory distribution rules required by federal tax law. In all cases described below, the amount of the Death Benefit could be reduced by premium taxes owed and Withdrawals not previously deducted.

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Standard Death Benefit Rider
This Death Benefit is the greater of (1), (2) or (3), where:

(1)      is the Accumulation Value less any recapture of Premium Credits, if applicable;
(2)      is the Standard Death Benefit, which is the sum of the Standard Death Benefit Base for Covered Funds and the Accumulation Value allocated to Excluded Funds – less any recapture of Premium Credits, if applicable; and
(3)      is the Cash Surrender Value.

The Standard Death Benefit Base for Covered Funds equals the Premiums plus Premium Credits allocated to Covered Funds, adjusted for any Withdrawals and transfers. Covered Funds are all Variable Sub-accounts not designated as Excluded Funds. No Variable Sub-accounts are currently designated as Excluded Funds for purposes of the Standard Death Benefit Rider.

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Annual Ratchet Death Benefit Rider
This Death Benefit is the greater of (1), (2), (3) or (4), where:

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(1)      is the Accumulation Value less any recapture of Premium Credits, if applicable;
(2)      is the Standard Death Benefit, which is the sum of the Standard Death Benefit Base for Covered Funds and the Accumulation Value allocated to Excluded Funds – less any recapture of Premium Credits, if applicable;

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(3)      is the Ratchet Death Benefit, which is the sum of the Ratchet Death Benefit for Covered Funds and the Accumulation Value allocated to Excluded Funds – less any recapture of Premium Credits, if applicable; and
(4)      is the Cash Surrender Value.
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The Standard Death Benefit Base for Covered Funds equals the Premiums plus Premium Credits allocated to Covered Funds, adjusted for any Withdrawals and transfers. Covered Funds are Variable Sub-accounts not designated as Excluded Funds. No Variable Sub-accounts are currently designated as Excluded Funds for purposes of the Annual Ratchet Death Benefit Rider.

The Ratchet Death Benefit Base for Covered Funds starts out equaling the Premiums plus Premium Credits allocated to Covered Funds. On each Contract Anniversary, the Ratchet Death Benefit Base for Covered Funds equals the greater of: the Ratchet Death Benefit Base for Covered Funds, as calculated on the last Contract Anniversary; the Premiums plus Premium Credits allocated to Covered Funds, adjusted for any Withdrawals and transfers; or the Accumulation Value allocated to Covered Funds (less any fees and charges under the Contract). So between Contract Anniversaries, the Ratchet Death Benefit Base for Covered Funds would equal the Ratchet Death Benefit Base for Covered Funds, as calculated on the last Contract Anniversary, plus any Premiums and Premium Credits allocated to Covered Funds, and adjusted for any Withdrawals and transfers.

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Please note that the Standard Death Benefit is available so long as the Owner is Age 85 or younger. The Ratchet Death Benefit is available until the Owner is Age 90.

Max 7% Solution Death Benefit Rider
This Death Benefit is the greater of (1), (2), (3), (4) or (5), where:

(1)      is the Accumulation Value less any recapture of Premium Credits, if applicable;
(2)      is the Standard Death Benefit, which is the sum of the Standard Death Benefit Base for each of Covered Funds and
  Special      Funds, and the Accumulation Value allocated to Excluded Funds – less any recapture of Premium Credits, if
  applicable;     
(3)      is the lesser of (a) or (b) less any recapture of Premium Credits, if applicable, where:
  (a)      is the Rollup Death Benefit, which equals the sum of the Rollup Death Benefit Base for each of Covered Funds and
   Special      Funds, and the Accumulation Value allocated to Excluded Funds, and
    (b) is the Maximum Rollup Death Benefit, which is equal to (i) multiplied by (ii) minus (iii), where:
   (i)      is the sum of all Premiums plus any Premium Credits, if applicable;
   (ii)      is the Maximum Rollup Death Benefit Multiplier, currently 2.5; and
   (iii)      is any adjustments for Withdrawals;
    (4) is the Ratchet Death Benefit, which is the sum of the Ratchet Death Benefit Base for each of Covered Funds and Special Funds, and the Accumulation Value allocated to Excluded Funds – less any recapture of Premium Credits, if applicable; and (5) is the Cash Surrender Value.

The Standard Death Benefit Base for each of Covered Funds and Special Funds equals the Premiums plus Premium Credits allocated to Covered Funds or Special Funds, respectively, adjusted for any Withdrawals and transfers. Covered Funds are Variable Sub-accounts not designated as Special Funds or Excluded Funds. Currently, the Special Funds are ING Liquid Assets Portfolio and the MVA Account. No Variable Sub-accounts are currently designated as Excluded Funds for purposes of the Max 7% Solution Death Benefit Rider.

The Rollup Death Benefit Base for Covered Funds starts out equaling the Premiums plus Premium Credits allocated to Covered Funds. On any Business Day before the Maximum Rollup Death Benefit has been reached, the Rollup Death Benefit Base for Covered Funds equals the Rollup Death Benefit Base for Covered Funds from the prior Business Day and interest at the Rollup Death Benefit Interest Rate, currently 7% annually, plus any Premiums and Premium Credits allocated to Covered Funds, and adjusted for any Withdrawals and transfers.

Similarly, the Rollup Death Benefit Base for Special Funds starts out equaling the Premiums plus Premium Credits allocated to Special Funds. On any Business Day before the Maximum Rollup Death Benefit has been reached, the Rollup Death Benefit Base for Special Funds equals the Rollup Death Benefit Base for Special Funds from the prior Business Day plus Premiums and Premium Credits allocated to Special Funds, adjusted for any Withdrawals and transfers. Please note, however, that the Rollup Death Benefit Base is not entitled to interest at the Rollup Death Benefit Interest Rate.

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The Ratchet Death Benefit Base for each of Covered Funds and Special Funds starts out equaling the Premiums plus Premium Credits allocated to Covered Funds or Special Funds, respectively. On each Contract Anniversary, the Ratchet Death Benefit Base for each of Covered Funds and Special Funds equals the greater of the Premiums plus Premium Credits allocated to Covered Funds or Special Funds, as applicable, adjusted for any Withdrawals and transfers, or the Accumulation Value allocated to Covered Funds or

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Special Funds, as applicable (less any fees and charges under the Contract). So between Contract Anniversaries, the Ratchet Death Benefit Base for each of Covered Funds and Special Funds would equal the Ratchet Death Benefit Base for Covered Funds or Special Funds, as calculated on the last Contract Anniversary, as applicable, plus any Premiums and Premium Credits allocated to Covered Funds or Special Funds, respectively, and adjusted for any Withdrawals and transfers.

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Please note that the Standard Death Benefit is available so long as the Owner is Age 85 or younger. The Rollup Death Benefit is available through the Business Day prior to the Contract Anniversary on which the Owner reaches Age 80. The Ratchet Death Benefit is available until the Owner is Age 90.

Withdrawal Adjustments

Withdrawals reduce, pro-rata- each of the components for Covered Funds, Special Funds and Excluded Funds, as applicable, used to calculate the Death Benefit (e.g., the Standard Death Benefit Base for Covered Funds). The pro-rata adjustment for any Withdrawals equals (1) divided by (2) multiplied by (3), where:

(1)      is the Accumulation Value withdrawn;
(2)      is the Accumulation Value before the Withdrawal; and
(3)      is the amount of the applicable Death Benefit component before the Withdrawal.

The Maximum Rollup Death Benefit component of the Max 7% Solution Death Benefit is also subject to a pro-rata adjustment for any Withdrawals. Accordingly, please note that Withdrawals may not simply result in a dollar-for-dollar reduction in the Death Benefit, as calculated.

Transfer Adjustments

Transfers reduce, on a pro-rata basis, each of the following components for Covered Funds, Special Funds and Excluded Funds, as applicable, as may be used to calculate the Death Benefit:

  • Standard Death Benefit Base
  • Ratchet Death Benefit Base
  • Rollup Death Benefit Base
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Transfers from Covered Funds to Special Funds or Excluded Funds will pro-rata reduce the applicable Death Benefit component for Covered Funds. Similarly, transfers from Special Funds to Covered Funds or Excluded Funds will pro-rata reduce the applicable Death Benefit component for Special Funds. While the corresponding increase in a given Death Benefit component as a result of the transfer will equal the amount of the pro-rata reduction, please note that there is no Standard Death Benefit Base, Ratchet Death Benefit Base or Rollup Death Benefit Base for Excluded Funds in calculating the Death Benefit under the Standard Death Benefit Rider, Annual Ratchet Death Benefit Rider or Max 7% Solution Death Benefit Rider, respectively. Rather, these Death Benefit components are only used to account for any transfers. Accumulation Value, less any recapture of Premium Credits, if applicable, is used instead to calculate the Death Benefit attributable to Excluded Funds. Transfers from Excluded Funds to Covered Funds or Special Funds will pro-rata reduce the applicable Death Benefit component for Excluded Funds as well; however, the corresponding increase in a given Death Benefit component as a result of the transfer will equal the lesser of the amount of the pro-rata reduction and the Accumulation Value, less any recapture of Premium Credits. So a transfer could unfavorably impact the Death Benefit, as calculated, or at least the calculation of the Standard Death Benefit, Ratchet Death Benefit or Rollup Death Benefit components, as applicable.

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Note:

In all cases described above, the amount of the death benefit could be reduced by premium taxes owed and withdrawals not previously deducted. A guaranteed Death Benefit Rider may not be available in all states.

EMDB Rider

You may choose to purchase the EMDB Rider in addition to a guaranteed Death Benefit Rider. This Rider provides a benefit equal to a percentage of the gain on the Contract to be included in any Death Benefit. This Rider is subject to state availability and is available only for issue Ages 75 and under. You may purchase this Rider on the Contract Date or, if it is not yet available in your state, the rider effective date will be on the next Contract Anniversary once available. This Rider is only available on Contracts having one Owner.

This benefit is calculated as the lesser of (1) or (2) multiplied by the applicable EMDB Factor (55%; 30% for issue ages above 70), where:

(1)      is the EMDB Base; and
(2)      is the Maximum EMDB Base.

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The EMDB Base is the Accumulation Value minus Premiums, adjusted pro-rata for any Withdrawals, when the rider effective date is the same as the Contract Date. Otherwise, the EMDB Base will be the Accumulation Value minus the sum of the Accumulation Value on the rider effective date and any Additional Premium after the rider effective date, adjusted pro-rata for any Withdrawals after the rider effective date.

The Maximum EMDB Base is Premiums adjusted pro-rata for any Withdrawals, multiplied by the Maximum EMDB Base Factor, which is 150%, when the rider effective date is the same as the Contract Date. Otherwise, the Maximum EMDB Base is the Accumulation Value on the rider effective date plus any Additional Premium after the rider effective date, adjusted pro-rata for any Withdrawals after the rider effective date, and multiplied by the Maximum EMDB Base Factor (150%).

The pro-rata adjustment for any Withdrawals equals (1) divided by (2) multiplied by (3), where:

(1)      is the Accumulation Value withdrawn;
(2)      is the Accumulation Value before the Withdrawal; and
(3)      is the amount of the EMDB Base or Maximum EMDB Base, as applicable, before the Withdrawal.
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The Rider does not provide a benefit if there is no gain on the Contract. As such, the Company would continue to assess a charge for the rider, even though no benefit would be payable at death under the rider if there are no gains under the Contract. Please see page 13 for a description of the charge.

The rider is available for both non-qualified and qualified contracts. Please see the discussion of possible tax consequences on page 56.

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Death Benefit During the Income Phase

If any Contract Owner or the Annuitant dies after the Annuity Commencement Date, the Company will pay the Beneficiary any certain benefit remaining under the annuity in effect at the time.

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 Accumulation Value on that date is greater than zero, we will add such difference to the Accumulation Value. We will allocate such addition to the Variable Sub-accounts in proportion to the Accumulation Value in the Variable Sub-accounts, unless you direct otherwise. If there is no Accumulation Value in any Variable Sub-account, we will allocate the addition to the ING Liquid Assets Portfolio, or its successor. Such addition to the Accumulation Value will not affect the guaranteed Death Benefit or any living benefit rider values. Any addition to Accumulation 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.

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If you elect the Annual Ratchet Death Benefit Rider or the Max 7% Solution Death Benefit Rider and the new or surviving Owner is Attained Age 89 or less, ratchets will continue, (or resume if deceased owner had already reached Age 90) until the new or surviving Owner reaches Age 90. If you elected the Max 7% Solution Death Benefit Rider, the new or surviving Owner is Attained Age 79 or less, the Max 7% Solution Enhanced Death Benefit Rider continues or resumes accumulation until either the cap or the Attained Age of 80 is reached.

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At subsequent Surrender, we will waive any surrender charge applicable to Premiums paid prior to the date we receive Due Proof of Death of the Contract Owner. Any Premiums paid later will be subject to any applicable surrender charge.

If you elected the EMDB Rider, and the benefit would otherwise be payable, we will add the benefit to the Accumulation Value and allocate the benefit among the Variable Sub-accounts in proportion to the Accumulation Value in the Variable Sub-accounts, unless you direct otherwise. If there is no Accumulation Value in any Variable Sub-account, we will allocate the benefit to the ING Liquid Assets Portfolio, or its successor.

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With the EMDB Rider, so long as the surviving spouse is under Age 76, this Rider will continue, and the EMDB Base and the Maximum EMDB Base will be recalculated, using the surviving spouse’s Age for the EMDB Factor; otherwise, this Rider will terminate. The EMDB Base, as recalculated, will include the amount of any benefit payable under the Rider upon the Owner’s death.

Continuation After Death — Not a Spouse

If the Beneficiary or surviving joint Owner is not the spouse of the Owner, the Contract may defer payment of the Death Benefit subject to the required distribution rules of the Tax 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 Accumulation Value also on that date, is greater than zero, we will add such difference to the Accumulation Value. Such addition will be allocated to the Variable Sub-accounts in proportion to the Accumulation Value in the Variable Sub-accounts, unless we are directed otherwise. If there is no Accumulation Value in any Variable Sub-account, the addition will be allocated to the ING Liquid Assets Portfolio, 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.

If you elected the EMDB Rider, and the benefit would otherwise be payable, we will add the benefit to the Accumulation Value and allocate the benefit among the Variable Sub-accounts in proportion to the Accumulation Value in the Varaible Sub-accounts, unless you direct otherwise. If there is no Accumulation Value in any Variable Sub-account, we will allocate the benefit to the ING Liquid Assets Portfolio, or its successor. The EMDB Rider then terminates, whether or not a benefit was payable under the terms of the Rider.

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 Tax Code.

If any contract owner of a non-qualified Contract dies before the Annuity Commencement Date, we will distribute the death benefit payable to the beneficiary 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: (i) all rights of the spouse as contract owner’s beneficiary under the Contract in effect prior to such election will cease; (ii) 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 (iii) all rights and privileges granted by the Contract or allowed by us will belong to the spouse as contract owner of the Contract. We deem the spouse to have made this election 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 not a spouse, 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.

Subject to availability, and our then current rules, a spousal or non-spousal beneficiary may elect to receive death benefits as payments over the life expectancy of the beneficiary (“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.

If we do not receive an election from an owner’s beneficiary who is not a spouse 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 the date of death. We will determine the death benefit as of the date we receive due proof of death. Such cash payment will be in full settlement of all our liabilities under the Contract.

If a contract owner dies after the Annuity Commencement Date, 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. If any contract owner is not an individual, the death of an annuitant shall be treated as the death of a contract owner.

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Annuity Payments

Annuitization of Your Contract

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Annuity Payments will begin on the Annuity Commencement Date. The minimum monthly Annuity Payment that we will make is $20. We may require that a single sum payment be made if the Accumulation Value is less than $2,000 or if the calculated monthly annuity income payment is less than $20. Living benefit riders automatically terminate when the income phase of your Contract begins. The MGIB annuity benefit may be available if you have purchased the MGIB rider, provided the waiting period and other specified conditions have been met. There is no death benefit after the Annuity Commencement Date.

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We will determine the amount of the Annuity Payments on the Annuity Commencement Date by multiplying the Accumulation Value by the applicable payment factor provided under the Contract and dividing by 1,000. The applicable payment factor will depend on: the Annuity Plan; the frequency of Annuity Payments; and the age of the Annuitant (and gender, where appropriate under applicable law). A net investment return of 1.5% is assumed, and we may pay a higher rate at our discretion. Surrender charges might apply depending on the annuity options.

Selecting an Annuity Commencement Date

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You may select an Annuity Commencement Date in purchasing the Contract or by providing Notice to Us at least 30 days in advance. The Annuity Commencement Date may be any date following the fifth Contract Anniversary, but no later than the Contract Anniversary following the oldest Annuitant’s 95th birthday. If you do not select the Annuity Commencement Date, it will be the Contract Anniversary on or next following the oldest Annuitant’s 95th birthday.

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Frequency of Annuity Payments

You choose the frequency of the Annuity Payments. They may be monthly, quarterly, semi-annually or annually. We will make the Annuity Payments monthly without Notice to Us otherwise.

The Annuity Plans

You may elect one of the Annuity Plans described below, which provide for Annuity Payments of a fixed amount only, using the Annuity 2000 Mortality Tables. In addition, you may elect any other Annuity Plan, if we agree. The Annuity Plan may be changed at any time before the Annuity Commencement Date upon 30 days prior Notice to Us. If you do not elect an Annuity Plan by the Annuity Commencement Date, Annuity Payments will be made automatically each month for a minimum of 120 months and as long thereafter as the last surviving Annuitant lives, unless otherwise limited by applicable law. With joint Annuitants, Annuity Payments will be made automatically each month for a minimum of 120 months and as long thereafter as either of two Annuitants are living. Unless you direct otherwise, we will make the Annuity Payments to you. Our consent is necessary if the payee is other than an individual, so as to ensure compliance with any applicable tax laws. Notice to Us is also required for you to be able to change the payee.

Payments for a Period Certain

     Annuity Payments are made in equal installments for a fixed number of years. The number of years cannot be less than 10 or more than 30, unless otherwise limited by applicable law.

Payments for a Period Certain and Life

     Annuity Payments are made for a fixed number of years and as long thereafter as the Annuitant is living. The number of years cannot be less than 10 or more than 30, unless otherwise limited by applicable law.

  Single Life Payments
Annuity Payments are made for as long as the Annuitant is living.

Joint and Last Survivor Life Payments

Annuity Payments are made for as long as either of two Annuitants is living.

Annuity Payments When Payee Dies

If any Owner (or any Annuitant who is not an Owner) dies on or after the Annuity Commencement Date but before all guaranteed Annuity Payments have been made, we will pay the remainder at least as rapidly as before the death.

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Other Important Information

Reports to Contract Owners

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We confirm purchase, transfer and withdrawal transactions usually within 5 business days of processing. We may also send you a quarterly statement showing the Accumulation Value, Cash Surrender Value, and the Death Benefit as of the end of the calendar quarter. This statement will also show the allocation of your Accumulation Value and Additional Premiums and Withdrawals since your last statement. You have 30 days to notify our Customer Service Center of any errors or discrepancies before the values will be considered final and correct. We will also notify you when any shareholder reports of the investment portfolios in which Separate Account B invests are available. We will also send any other reports, notices or documents we are required by law to furnish to you.

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Suspension of Payments

The Company reserves the right to suspend or postpone the date of any payment or determination of values, beyond the 7 permitted days, on any business day (i) when the New York Stock Exchange is closed; (ii) when trading on the New York Stock Exchange is restricted; (iii) 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 (iv) 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, contingent upon written approval by the insurance supervisory official in the jurisdiction in which this Contract is issued.

Misstatement of Age or Sex

If the Age or sex of a person has been misstated, we will adjust the further benefit payments to reflect those that the Premiums would have purchased at the correct Age or sex. Any underpayments as a result will be included in the next payment from us, with interest credited at the rate of 1.5% annually. Any overpayment, plus interest at 1.5% annually, will be deducted from future payments until the overpayment has been repaid in full.

Assignment

You may assign a non-qualified Contract as collateral security for a loan or other obligation, with Notice to Us and the consent of any Irrevocable Beneficiary. An assignment is not a change of ownership. But you should 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. We are not responsible for the validity, tax consequences or other effects of an 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. We will give you advance notice of such changes.

Right to Examine Period

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You may cancel your Contract during the Right to Examine Period. We deem the Right to Examine Period to expire 15 days after we mail the Contract to you. Some states may require a longer Right to Examine. 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 greater of the Accumulation 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. In no event does the Company retain any investment gain associated with a Contract that is free looked. For purposes of the refund during the free look period, (i) we adjust your Accumulation Value for any market value adjustment (if you have invested in the Fixed Account), (ii) then we exclude any premium credit initially applied, and (iii) then we include a refund of any charges deducted from your Accumulation 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 Accumulation 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 Accumulation 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 will be allocated during the free look period to a subaccount specially designated by the Company for this purpose (currently, the ING Liquid Assets Portfolio). 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 free look rights depend on the laws of the state in which you purchase your Contract. Your Contract is void as of the day we receive your Contract and cancellation request in good order. We determine your Accumulation Value at the close of business on the day we void your Contract. 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.

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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 LLC, 1475 Dunwoody Drive, West Chester, PA 19380 is the principal underwriter and distributor of the Contract as well as for other ING USA contracts. Directed Services LLC, a Delaware limited liability company, is registered with the SEC as a broker/dealer under the Securities Exchange Act of 1934, and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”).

Directed Services LLC does not retain any commissions or compensation paid to it by ING USA for Contract sales. Directed Services LLC 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 FINRA member firms.

The following is a list of broker/dealers that are affiliated with the Company:

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  • Bancnorth Investment Group, Inc.
  • Directed Services LLC
  • Financial Network Investment Corporation
  • Guaranty Brokerage Services, Inc.
  • ING America Equities, Inc.
  • ING Financial Advisers, LLC
  • ING Financial Markets LLC
  • ING Financial Partners, Inc.
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  • ING Funds Distributor, LLC
  • ING Investment Advisors, LLC
  • ING Investment Management Services LLC
  • Multi-Financial Securities Corporation
  • PrimeVest Financial Services, Inc.
  • ShareBuilder Securities Corporation
  • Systematized Benefits Administrators, Inc.
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Directed Services LLC 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 Directed Services LLC 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.

Directed Services LLC pays selling firms for Contract sales according to one or more schedules. This compensation is generally based on a percentage of premium payments. Selling firms may receive commissions of up to 7.0% of premium payments. In addition, selling firms may receive ongoing annual compensation of up to 1.25% 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 the firm’s practices. Commissions and annual compensation, when combined, could exceed 7.0% of total premium payments.

Directed Services LLC has 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.

In addition to the direct cash compensation for sales of Contracts described above, Directed Services LLC may also pay selling firms additional compensation or reimbursement of expenses for their efforts in selling the Contracts to you and other customers. These amounts may include:

                   · Marketing/distribution allowances which may be based on the percentages of premium received, the aggregate 
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    commissions paid and/or the aggregate assets held in relation to certain types of designated insurance products issued by the Company and/or its affiliates during the year;
  • Loans or advances of commissions in anticipation of future receipt of premiums (a form of lending to agents/registered representatives). These loans may have advantageous terms such as reduction or elimination of the interest charged on the loan and/or forgiveness of the principal amount of the loan, which terms may be conditioned on fixed insurance product sales;
  • Education and training allowances to facilitate our attendance at certain educational and training meetings to provide information and training about our products. We also hold training programs from time to time at our expense;
  • Sponsorship payments or reimbursements for broker/dealers to use in sales contests and/or meetings for their agents/registered representatives who sell our products. We do not hold contests based solely on the sales of this product;
  • Certain overrides and other benefits that may include cash compensation based on the amount of earned commissions, agent/representative recruiting or other activities that promote the sale of contracts; and
  • Additional cash or noncash compensation and reimbursements permissible under existing law. This may include, but is not limited to, cash incentives, merchandise, trips, occasional entertainment, meals and tickets to sporting events, client appreciation events, business and educational enhancement items, payment for travel expenses (including meals and lodging) to pre-approved training and education seminars, and payment for advertising and sales campaigns.

We may pay commissions, dealer concessions, wholesaling fees, overrides, bonuses, other allowances and benefits and the costs of all other incentives or training programs from our resources, which include the fees and charges imposed under the Contract.

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The following is a list of the top 25 selling firms that, during 2008, received the most compensation, in the aggregate, from us in connection with the sale of registered annuity contracts issued by us, ranked by total dollars received:

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1.      ING Financial Partners, Inc.
2.      Citigroup Global Markets, Inc.
3.      LPL Financial Corporation
4.      ING Financial Partners, Inc. - CAREER
5.      Morgan Stanley & Co. Incorporated
6.      Merrill Lynch, Pierce, Fenner & Smith, Inc.
7.      Wachovia Securities, LLC - Bank
8.      Chase Investment Services Corporation
9.      UBS Financial Services, Inc.
10.      A. G. Edwards & Sons, Inc.
11.      Wachovia Securities, LLC
12.      Woodbury Financial Services Inc.
13.      PrimeVest Financial Services, Inc.
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14. Wells Fargo Investments, LLC

15. Multi-Financial Securities Corporation 16. Banc of America Investment Services Inc. 17. ING Financial Advisers, LLC

18. Securities America, Inc.

19. National Planning Corporation

20. Financial Network Investment Corporation 21. Royal Alliance Associates, Inc.

22. Raymond James Financial Services, Inc. 23. MML Investors Services, Inc.

24. Park Avenue Securities, LLC. 25. Securian Financial Services Inc.

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Directed Services LLC 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

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Accumulation Value. Directed Services LLC may, at its discretion, pay additional cash compensation to wholesalers/distributors for sales by certain broker-dealers or “focus firms.”

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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 sale of our variable annuity contracts. It is important for you to know that the payment of volume- or sales-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, and may also provide a financial incentive to promote one of our contracts over another.

Voting Rights

We will vote the shares of an underlying portfolio owned by Separate Account B according to your instructions. However, if the 1940 Act 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.

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We determine the number of shares that you have in a subaccount by dividing the Contract’s Accumulation 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. The effect of proportional voting is that a small number of contract owners may decide the outcome of a vote.

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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.

The Company is involved in threatened or pending lawsuits/arbitrations arising from the normal conduct of business. Due to the climate in insurance and business litigation/arbitration, 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.

Directed Services LLC, the principal underwriter and distributor of the contract, is a party to threatened or pending lawsuits/arbitration that generally arise from the normal conduct of business. Some of these suits may seek class action status and sometimes include claims for substantial compensatory, consequential or punitive damages and other types of relief. Directed Services LLC 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.

Federal Tax Considerations

Introduction

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This section discusses our understanding of current federal income tax laws affecting the contract. Federal income tax treatment of the contract is complex and sometimes uncertain. You should keep the following in mind when reading it:

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  • 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;
  • Tax laws change. It is possible that a change in the future could affect contracts issued in the past;
  • This section addresses some but not all applicable federal income tax rules and does not discuss federal estate and gift tax implications, state and local taxes, or any other tax provisions; and
  • We do not make any guarantee about the tax treatment of the contract or transactions involving the contract.
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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 (non-qualified contracts) or purchased on a tax-qualified basis (qualified contracts).

Non-qualified contracts are purchased with after tax contributions and are not related to retirement plans that receive special income tax treatment under the Tax 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 for special income tax treatment under Sections 401, 408 or 408A, and some provisions of 403 and 457 of the Tax Code.

Taxation of Non-Qualified Contracts

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Contributions

You may not deduct the amount of your contributions to a non-qualified contract.

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Taxation of Gains Prior to Distribution

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     Tax Code Section 72 governs taxation of annuities in general. 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. The remainder of this discussion assumes that your contract will be treated as an annuity contract for federal income tax purposes, and that the tax law will not impose tax on any increase in your contract value until a distribution occurs. In order to be eligible to receive deferral of taxation, the following requirements must be satisfied:

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Diversification

     Tax Code Section 817(h) requires that in a nonqualified contract the investments of the funds be “adequately diversified” in accordance with Treasury Regulations in order for the Contract to qualify as an annuity contract under federal tax law. The separate account, through the funds, intends to comply with the diversification requirements prescribed by Tax Code Section 817(h) and by the Treasury in Reg. Sec. 1.817-5, which affects how the funds’ assets may be invested. If it is determined, however, that your Contract does not satisfy the applicable diversification requirements and rulings because a subaccount’s corresponding fund fails to be adequately diversified for whatever reason, we will take appropriate steps to bring your Contract into compliance with such regulations and rulings, and we reserve the right to modify your Contract as necessary to do so.

Investor Control

     Although earnings under non-qualified contracts are generally not taxed until withdrawn, the 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 Tax 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 Tax 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.

Non-Natural Holders of a Non-Qualified Contract

     If you are not a natural person, a non-qualified contract generally is not treated as an annuity for income tax purposes and the income on the contract for the taxable year is currently taxable as ordinary income. Income on the contract is any increase over the year 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 non-natural person should consult with its tax adviser prior to purchasing the Contract. When the contract owner is not a natural person, a change

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in the annuitant is treated as the death of the contract owner.

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., after 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.

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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 investment in the contract (cost basis).

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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:

  • made on or after the taxpayer reaches age 59½;
  • made on or after the death of a contract owner (the annuitant if the contract owner is a non-natural person);
  • attributable to the taxpayer’s becoming disabled as defined in the Tax Code;
  • made as part of a series of substantially equal periodic payments (at least annually) over your life or life expectancy or the joint lives or joint life expectancies of you and your designated beneficiary; or
  • the distribution is allocable to investment in the contract before August 14, 1982.

The 10% penalty does not apply to distributions from an immediate annuity as defined in the Tax Code. 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:

  • First, from any remaining “investment in the contract” made prior to August 14, 1982 and exchanged into the Contract;
  • Next, from any “income on the contract” attributable to the investment made prior to August 14, 1982;
  • Then, from any remaining “income on the contract;” and
  • Lastly, from any remaining “investment in the contract.”
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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. Pursuant to IRS guidance, receipt of withdrawals, surrenders or annuity payments (annuitizations) from either the original contract or the new contract during the 12month period following the partial exchange may retroactively negate the partial exchange. If the partial exchange is retroactively negated, the partial surrender of the original contract will be treated as a withdrawal, taxable as ordinary income to the extent of gain in the original contract and, if the partial exchange occurred prior to you reaching 59 ½, may be subject to an additional 10% tax penalty. A taxable event may be avoided if requirements identified as a qualifying event are satisfied.

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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.

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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 subsequent 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.

Different distribution requirements apply if your death occurs:

  • After you begin receiving annuity payments under the Contract; or
  • Before you begin receiving such distributions.

If your death occurs after you begin receiving annuity payments, distributions must be made at least as rapidly as under the method in effect at the time of your death.

If your death occurs before you begin receiving annuity payments, your entire balance must be distributed within five years after the date of your death. For example, if you died on September 1, 2008, your entire balance must be distributed by August 31, 2013. However, if distributions begin within one year of your death, then payments may be made over one of the following timeframes:

  • Over the life of the designated beneficiary; or
  • Over a period not extending beyond the life expectancy of the designated beneficiary.

If the designated beneficiary is your spouse, the contract may be continued with the surviving spouse as the new contract owner. If the contract owner is a non-natural person and the primary annuitant dies, the same rules apply on the death of the primary annuitant as outlined above for the death of a contract owner.

The Contract offers a death benefit 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.

Assignments and Other Transfers

     A transfer, pledge or assignment of ownership of a non-qualified contract, the selection of certain annuity dates, 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. The assignment, pledge or agreement to assign or pledge any portion of the contract value generally will be treated as a distribution. Anyone contemplating any such transfer, pledge, assignment, or designation or exchange, should consult a tax adviser regarding the potential tax effects of such a transaction.

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. While this Contract is not designed as an immediate annuity, treatment as an immediate annuity would have significance with respect to exceptions from the 10% early withdrawal penalty, to contracts owned by non-natural persons, and for certain exchanges.

Multiple Contracts

     Tax laws require 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 annuity contract for purposes of determining the amount includible in gross income under Tax Code Section 72(e). In addition, the Treasury Department has specific authority to issue regulations that prevent

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the avoidance of Tax Code Section 72(e) through the serial purchase of annuity contracts or otherwise.

Withholding

     We will withhold and remit to the IRS 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 is 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.

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Certain states have indicated that state income tax withholding will also apply to payments from the contracts made to residents. Generally, an election out of federal withholding will also be considered an election out of state withholding. In some states, you may elect out of state withholding, even if federal withholding applies. If you need more information concerning a particular state or any required forms, contact our Customer Service Center.

If you or your designated beneficiary is a non-resident alien, then any withholding is governed by Tax Code Section 1441 based on the individual’s citizenship, the country of domicile and treaty status, and we may require additional documentation prior to processing any requested transactions.

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Taxation of Qualified Contracts

General

     The Contracts are primarily designed for use with IRAs under Tax Code Sections 401, 408 or 408A, and some provisions of 403 and 457 (We refer to all of these as “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. The ultimate effect of federal income taxes on the amounts held under a Contract, or on annuity payments, depends on the type of retirement plan and your tax status. Special favorable tax treatment may be available for certain types of contributions and distributions. 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.

Adverse tax consequences may result from: contributions in excess of specified limits; distributions before age 59½ (subject to certain exceptions); distributions that do not conform to specified commencement and minimum distribution rules; and in other specified circumstances. Some qualified plans may be subject to additional distribution or other requirements that are not incorporated into the Contract. No attempt is made to provide more than general information about the use of the Contracts with qualified plans. Contract owners, annuitants, and beneficiaries are cautioned that the rights of any person to any benefits under these qualified plans may be subject to the terms and conditions of the plans themselves, regardless of the terms and conditions of the Contract. The Company is not bound by the terms and conditions of such plans to the extent such terms contradict the Contract, unless we consent.

Contract owners and beneficiaries generally 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 or programs that qualify for the intended special federal tax treatment.

Tax Deferral

     Under the federal tax laws, earnings on amounts held in annuity contracts are generally not taxed until they are withdrawn. However, in the case of a qualified plan (as defined in this prospectus), an annuity contract is not necessary to obtain this favorable tax treatment and does not provide any tax benefits beyond the deferral already available to the qualified plan itself. Annuities do provide other features and benefits (such as guaranteed living benefits and/or death benefits or the option of lifetime income phase options at established rates) that may be valuable to you. You should discuss your alternatives with your financial representative taking into account the additional fees and expenses you may incur in an annuity.

Section 401(a), 401(k), Roth 401(k), and 403(a) Plans

     Sections 401(a), 401(k), and 403(a) of the Tax Code permit certain 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 Contracts to accumulate retirement savings under the plans. Employers intending to use the Contract with such plans should seek competent legal advice.

The contracts may also be available as a Roth 401(k), as described in Tax Code Section 402A, and we may set up accounts for you under the Contract for Roth 401(k) contributions (“Roth 401(k) accounts”). Tax Code Section 402A allows employees of certain private employers to contribute after-tax salary contributions to a Roth 401(k), which provides for tax-free distributions, subject to

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certain restrictions.

Individual Retirement Annuities

     Section 408 of the Tax Code permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (“IRA”). IRAs are subject to limits on the amounts that can be contributed, the deductible amount of the contribution, the persons who may be eligible, and the time when distributions commence. Contributions to IRAs must be made in cash or as a rollover or a transfer from another eligible plan. Also, distributions from IRAs, individual retirement accounts, and other types of retirement plans may be “rolled over” on a tax-deferred basis into an IRA. If you make a tax-free rollover of a distribution from an IRA 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.

The IRS has not reviewed the contracts described in this prospectus for qualification as IRAs and has not addressed, in a ruling of general applicability, whether the contract’s death benefit provisions comply with IRS qualification requirements.

Roth IRAs

     Section 408A of the Tax Code permits certain eligible individuals to contribute to a Roth IRA. Contributions to a Roth IRA are subject to limits on the amount of 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 a SIMPLE 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 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.

Sales of a contract for use with a Roth IRA may be subject to special requirements of the IRS. The IRS has not reviewed the contracts described in this prospectus for qualification as IRAs and has not addressed, in a ruling of general applicability, whether the contract’s death benefit provisions comply with IRS qualification requirements.

Contributions

     In order to be excludable from gross income for federal income tax purposes, total annual contributions to certain qualified plans are limited by the Tax Code. You should consult with your tax adviser in connection with contributions to a qualified contract.

Distributions – General

     Certain tax rules apply to distributions from the Contract. A distribution is any amount taken from a Contract including withdrawals, annuity payments, rollovers, exchanges and death benefit proceeds. We report the taxable portion of all distributions to the IRS.

Section 401(a), 401(k) and 403(a) Plans

All distributions from these plans are taxed as received unless one of the following is true:

  • The distribution is an eligible rollover distribution and is rolled over to another plan eligible to receive rollovers or to a traditional IRA in accordance with the Tax Code;
  • You made after-tax contributions to the plan. In this case, depending upon the type of distribution, the amount will be taxed according to the rules detailed in the Tax Code; or
  • The distribution is a qualified health insurance premium of a retired safety officer as defined in the Pension Protection Act of 2006.

A payment is an eligible rollover distribution unless it is:

  • part of a series of substantially equal periodic payments (at least one per year) made over the life expectancy of the participant or the joint life expectancy of the participant and his designated beneficiary or for a specified period of 10 years or more;
  • a required minimum distribution under Tax Code Section 401(a)(9);
  • a hardship withdrawal;
  • otherwise excludable from income; or
  • not recognized under applicable regulations as eligible for rollover.

The Tax Code imposes a 10% penalty tax on the taxable portion of any distribution from a Contract used with a 401(a), 401(k) or 403(a) plan unless certain exceptions, including one or more of the following, have occurred:

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  • You have attained age 59½;
  • You have become disabled, as defined in the Tax Code;
  • You have died and the distribution is to your beneficiary;
  • You have separated from service with the sponsor at or after age 55;
  • The distribution amount is rolled over into another eligible retirement plan or to an IRA in accordance with the terms of the Tax Code;
  • You have separated from service with the plan sponsor and the distribution amount is made in substantially equal periodic payments (at least annually) over your life or the life expectancy or the joint lives or joint life expectancies of you and your designated beneficiary;
  • The distribution is made due to an IRS levy upon your plan;
  • The withdrawal amount is paid to an alternate payee under a Qualified Domestic Relations Order (QDRO); or
  • The distribution is a qualified reservist distribution as defined under the Pension Protection Act of 2006 (401(k) plans only).

In addition, the 10% penalty tax does not apply to the amount of a distribution equal to unreimbursed medical expenses incurred by you during the taxable year that qualify for deduction as specified in the Tax Code. The Tax Code may provide other exceptions or impose other penalties in other circumstances.

Individual Retirement Annuities

All distributions from an IRA are taxed as received unless either one of the following is true:

  • The distribution is rolled over to another IRA or to a plan eligible to receive rollovers as permitted under the Tax Code; or
  • You made after-tax contributions to the IRA. In this case, the distribution will be taxed according to rules detailed in the Tax Code.

The Tax Code imposes a 10% penalty tax on the taxable portion of any distribution from an IRA unless certain exceptions, including one or more of the following, have occurred:

  • You have attained age 59½;
  • You have become disabled, as defined in the Tax Code;
  • You have died and the distribution is to your beneficiary;
  • The distribution amount is rolled over into another eligible retirement plan or to an IRA in accordance with the terms of the Tax Code;
  • The distribution is made due to an IRS levy upon your plan;
  • The withdrawal amount is paid to an alternate payee under a Qualified Domestic Relations Order (QDRO); or
  • The distribution is a qualified reservist distribution as defined under the Pension Protection Act of 2006.

In addition, the 10% penalty tax does not apply to a distribution made from an IRA to pay for health insurance premiums for certain unemployed individuals, a qualified first-time home purchase, or for higher education expenses.

Roth IRAs

A qualified distribution from a Roth IRA is not taxed when it is received. A qualified distribution is a distribution:

  • 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
  • Made after you attain age 59½, die, become disabled as defined in the Tax Code, or for a qualified first-time home purchase.

If a distribution is not qualified, generally it will be taxable to the extent of the accumulated earnings. A partial distribution will first be treated as a return of contributions which is not taxable and then as taxable accumulated earnings.

The Tax Code imposes a 10% penalty tax on the taxable portion of any distribution from a Roth IRA that is not a qualified distribution unless certain exceptions have occurred. In general, the exceptions for an IRA listed above also apply to a distribution from a Roth IRA that is not a qualified distribution or a rollover to a Roth IRA that is not a qualified rollover contribution. The 10% penalty tax is also waived on a distribution made from a Roth IRA to pay for health insurance premiums for certain unemployed individuals, used for a qualified first-time home purchase, or for higher education expenses.

Special Hurricane-Related Relief
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     The Katrina Emergency Tax Relief Act and the Gulf Opportunity Zone Act provide tax relief to victims of Hurricanes Katrina, Rita and Wilma. The relief includes a waiver of the 10% penalty tax on qualified hurricane distributions from eligible retirement plans. In addition, the 20% mandatory withholding rules do not apply to these distributions and the tax may be spread out ratably over a three-year period. A recipient of qualified hurricane distribution may also elect to re-contribute all or a portion of the distribution to an eligible retirement plan within three (3) years of receipt without tax consequences. Other relief may also apply. You should consult a competent tax adviser for further information.

Lifetime Required Minimum Distributions (Sections 401(a), 401(k), Roth 401(k), 403(a) and IRAs only)

     To avoid certain tax penalties, you and any designated beneficiary must also meet the minimum distribution requirements imposed by the Tax Code. These rules may dictate the following:

  • Start date for distributions;
  • The time period in which all amounts in your account(s) must be distributed; and
  • Distribution amounts.

Start Date and Time Period

     Generally, you must begin receiving distributions by April 1 of the calendar year following the calendar year in which you attain age 70½. We must pay out distributions from the contract over a period not extending beyond one of the following time periods:

  • Over your life or the joint lives of you and your designated beneficiary; or
  • Over a period not greater than your life expectancy or the joint life expectancies of you and your designated beneficiary.

Distribution Amounts

     The amount of each required distribution must be calculated in accordance with Tax Code Section 401(a)(9). The entire interest in the account includes the amount of any outstanding rollover, transfer, recharacterization, if applicable, and the actuarial present value of any other benefits provided under the account, such as guaranteed death benefits.

50% Excise Tax

     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.

Lifetime Required Minimum Distributions are not applicable to Roth IRAs. Further information regarding required minimum distributions may be found in your contract.

Required Distributions Upon Death (Sections 401(a), 401(k), Roth 401(k), 403(a), IRAs and Roth IRAs Only)

     Different distribution requirements apply after your death, depending upon if you have been receiving required minimum distributions. Further information regarding required distributions upon death may be found in your contract.

If your death occurs on or after you begin receiving minimum distributions under the contract, distributions generally must be made at least as rapidly as under the method in effect at the time of your death. Tax Code Section 401(a)(9) provides specific rules for calculating the required minimum distributions after your death.

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 died on September 1, 2008, your entire balance must be distributed to the designated beneficiary by December 31, 2013. 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:

  • Over the life of the designated beneficiary; or
  • Over a period not extending beyond the life expectancy of the designated beneficiary.

Start Dates for Spousal Beneficiaries

If the designated beneficiary is your spouse, distributions must begin on or before the later of the following:

  • December 31 of the calendar year following the calendar year of your death; or
  • December 31 of the calendar year in which you would have attained age 70½.

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No designated beneficiary

     If there is no designated beneficiary, the entire interest generally must be distributed by the end of the calendar containing the fifth anniversary of the contract owner’s death.

Special Rule for IRA Spousal Beneficiaries (IRAs and Roth IRAs Only)

     In lieu of taking a distribution under these rules, if the sole designated beneficiary is the contract owner’s surviving spouse, the spousal beneficiary may elect to treat the contract as his or her own IRA and defer taking a distribution until his or her own start date. The surviving spouse is deemed to have made such an election if the surviving spouse makes a rollover to or from the contract or fails to take a distribution within the required time period.

Withholding

     Any taxable distributions under the contract are generally subject to withholding. Federal income tax liability rates vary according to the type of distribution and the recipient’s tax status.

401(a), 401(k), Roth 401(k) and 403(a)

     Generally, distributions from these plans are subject to mandatory 20% federal income tax withholding. However, mandatory withholding will not be required if you elect a direct rollover of the distributions to an eligible retirement plan or in the case of certain distributions described in the Tax Code.

IRAs and Roth IRAs

Generally, you or, if applicable, a designated beneficiary may elect not to have tax withheld from distributions.

Non-resident Aliens

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     If you or your designated beneficiary is a non-resident alien, then any withholding is governed by Tax Code Section 1441 based on the individual’s citizenship, the country of domicile and treaty status, and we may require additional documentation prior to processing any requested transaction.

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Assignment and Other Transfers

IRAs and Roth IRAs

     The Tax Code does not allow a transfer or assignment of your rights under the contracts except in limited circumstances. Adverse tax consequences may result if you assign or transfer your interest in the contract to persons other than your spouse incident to a divorce. Anyone contemplating such an assignment or transfer should contact a qualified tax adviser regarding the potential tax effects of such a transaction.

Tax Consequences of Living Benefits and Death Benefits

Living Benefits

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     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 deferred sales 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. For nonqualified contracts, the income on the contract for purposes of calculating the taxable amount of a distribution may be unclear. For example, the guaranteed amount provided under a living benefit rider, as well as the market value adjustment, could increase the contract value that applies. Thus, the income on the contract could be higher than the amount of income that would be determined without regard to such a benefit. As a result, you could have higher amounts of income than will be reported to you. In addition, payments under any guaranteed payment phase of such riders after the contract value has been reduced to zero may be subject to the exclusion ratio rules under Tax Code Section 72(b) for tax purposes.

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The tax treatment of partial annuitizations is unclear. We currently treat any partial annuitization, such as those associated with the minimum guaranteed income benefit as withdrawals rather than annuity payments. Please consult your tax adviser before electing a partial annuitization.

Enhanced Death Benefits

     The Contract offers a death benefit 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. The provision of such benefits may result in

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currently taxable income to contract owners, and the presence of the death benefit could affect the amount of required minimum distributions. Finally, certain charges are imposed with respect to some of the available death benefits. It is possible those charges (or some portion thereof) could be treated for federal tax purposes as a distribution from the Contract.

Possible Changes in Taxation

Although the likelihood of legislative change and tax reform 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.

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.

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.

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Statement of Additional Information   
 
 
   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 
   Independent Registered Public Accounting Firm  1 
   Distribution of Contracts  1 
   Published Ratings  2 
   Accumulation Unit Value  2 
   Performance Information  3 
   Other Information  4 
   Financial Statements of ING USA Annuity and Life Insurance Company  5 
   Financial Statements of Separate Account B of ING USA Annuity and Life Insurance Company  5 

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Please tear off, complete and return the form below to order a free Statement of Additional Information for the Contracts offered under the prospectus. Send the form to our Customer Service Center at the address 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

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  APPENDIX A

The Investment Portfolios

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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” 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.

Consult with your investment professional to determine if the investment portfolios may be suited to your financial needs, investment time horizon and risk tolerance. You should periodically review these factors to determine if you need to change your investment strategy.

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 Fund Name and     
 Investment Adviser/Subadviser    Investment Objective 
 ING Investors Trust     
7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258     
 ING American Funds Asset Allocation Portfolio    Seeks high total return (including income and capital gains) consistent 
    with preservation of capital over the long term. 
       Investment Adviser: ING Investments, LLC     
       Investment Adviser to Master Funds: Capital Research     
       Management Company     
 
 ING American Funds Bond Portfolio    Seeks to maximize your level of current income and preserve your 
    capital. 
       Investment Adviser: ING Investments, LLC     
       Investment Adviser to Master Funds: Capital Research     
       Management Company     
 
 ING American Funds Growth Portfolio    Seeks to make your investment grow. 
 
       Investment Adviser: ING Investments, LLC     
       Investment Adviser to Master Funds: Capital Research     
       Management Company     
 
 ING American Funds Growth-Income Portfolio    Seeks to make your investment grow and provide you with income over 
    time. 
       Investment Adviser: ING Investments, LLC     
       Investment Adviser to Master Funds: Capital Research     
       Management Company     
 
 ING American Funds International Portfolio    Seeks to make your investment grow over time. 
 
       Investment Adviser: ING Investments, LLC     
       Investment Adviser to Master Funds: Capital Research     
       Management Company     
 
 ING American Funds World Allocation Portfolio (Class S)    Seeks long-term growth of capital. 
 
       Investment Adviser: Directed Services LLC     
 
 ING Artio Foreign Portfolio (Class S)    Seeks long-term growth of capital. 
 
       Investment Adviser: Directed Services LLC     
       Investment Subadviser: Artio Global Management LLC     
 
 ING BlackRock Inflation Protected Bond Portfolio    A non-diversified Portfolio that seeks to maximize real return, 
       (Class S)    consistent with preservation of real capital and prudent investment 
    management. 
       Investment Adviser: Directed Services LLC     
       Investment Subadviser: BlackRock Financial Management, Inc.   
 
 ING BlackRock Large Cap Growth Portfolio (Class S)    Seeks long-term growth of capital. 
 
       Investment Adviser: Directed Services LLC     
       Investment Subadviser: BlackRock Investment Management, LLC   
 
 ING Clarion Global Real Estate Portfolio (Class S)    A non-diversified Portfolio that seeks to provide investors with high 
    total return consisting of capital appreciation and current income. 
 
       Investment Adviser: ING Investments, LLC     
       Investment Subadviser: ING Clarion Real Estate Securities L.P.   
 
ING Premium Plus – 152952  A2   

</R>
<R>
Fund Name and   
Investment Adviser/Subadviser  Investment Objective 
ING Clarion Real Estate Portfolio (Class S)  A non-diversified Portfolio that seeks total return. 
 
     Investment Adviser: Directed Services LLC   
     Investment Subadviser: ING Clarion Real Estate Securities L.P.   
 

ING Evergreen Health Sciences Portfolio (Class S)

Investment Adviser: Directed Services LLC

Investment Subadviser: Evergreen Investment Management Company, LLC

ING Evergreen Omega Portfolio (Class S)

Investment Adviser: Directed Services LLC

Investment Subadviser: Evergreen Investment Management Company, LLC

ING FMRSM Diversified Mid Cap Portfolio* (Class S)

A non-diversified Portfolio that seeks long-term capital growth.

Seeks long-term capital growth.

Seeks long-term growth of capital.
 
   Investment Adviser: Directed Services LLC   
   Investment Subadviser: Fidelity Management & Research Co.   

</R> <R>
*      FMRSM is a service mark of Fidelity Management & Research Company
</R> <R>

ING Focus 5 Portfolio (Class S)

Seeks total return through capital appreciation and dividend income.

Investment Adviser: Directed Services LLC
Investment Subadviser: ING Investment Management Co.

ING Franklin Income Portfolio (Class S)

Investment Adviser: Directed Services LLC
Investment Subadviser: Franklin Advisers, Inc.

ING Franklin Mutual Shares Portfolio (Class S)

Seeks to maximize income while maintaining prospects for capital
appreciation.

Seeks capital appreciation and secondarily, income.

Investment Adviser: Directed Services LLC
Investment Subadviser: Franklin Mutual Advisers, LLC

ING Franklin Templeton Founding Strategy Portfolio
(Class S)

Investment Adviser: Directed Services LLC

ING Global Resources Portfolio (Class S)

Seeks capital appreciation and secondarily, income.

A non-diversified Portfolio that seeks long-term capital appreciation.

  Investment Adviser: Directed Services LLC
Investment Subadviser: ING Investment Management Co.

</R> <R>
ING JPMorgan Emerging Markets Equity Portfolio  Seeks capital appreciation. 
   (Class S)   

</R> <R>

  Investment Adviser: Directed Services LLC
Investment Subadviser: J.P. Morgan Investment Management Inc.

</R>

ING Premium Plus – 152952

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<R>
Fund Name and   
Investment Adviser/Subadviser  Investment Objective 
ING JPMorgan Small Cap Core Equity Portfolio (Class S)  Seeks capital growth over the long term. 
 
     Investment Adviser: Directed Services LLC   
     Investment Subadviser: J.P. Morgan Investment Management Inc.   
 

ING LifeStyle Aggressive Growth Portfolio (Class S)

Investment Adviser: ING Investments, LLC

Asset Allocation Consultants: Ibbotson Associates and ING Investment Management Co.

ING LifeStyle Conservative Portfolio (Class S)

Investment Adviser: ING Investments, LLC

Asset Allocation Consultants: Ibbotson Associates and ING Investment Management Co.

ING LifeStyle Growth Portfolio (Class S)

Investment Adviser: ING Investments, LLC

Asset Allocation Consultants: Ibbotson Associates and ING Investment Management Co.

ING LifeStyle Moderate Growth Portfolio (Class S)

Investment Adviser: ING Investments, LLC

Asset Allocation Consultants: Ibbotson Associates and ING Investment Management Co.

ING LifeStyle Moderate Portfolio (Class S)

Investment Adviser: ING Investments, LLC

Asset Allocation Consultants: Ibbotson Associates and ING Investment Management Co.

ING Liquid Assets Portfolio (Class S)

Seeks growth of capital.

Seeks growth of capital and current income.

Seeks growth of capital and some current income.

Seeks growth of capital and a low to moderate level of current income.

Seeks growth of capital and current income.

Seeks high level of current income consistent with the preservation of capital and liquidity.

Investment Adviser: Directed Services LLC

Investment Subadviser: ING Investment Management Co.

ING Marsico Growth Portfolio (Class S)

Seeks capital appreciation.
 
   Investment Adviser: Directed Services LLC   
   Investment Subadviser: Marsico Capital Management, LLC   

</R> <R>

ING MFS Total Return Portfolio (Class S)

Investment Adviser: Directed Services LLC

Investment Subadviser: Massachusetts Financial Services Company

Seeks above-average income (compared to a portfolio entirely invested in equity securities) consistent with the prudent employment of capital. Secondarily seeks reasonable opportunity for growth of capital and income.

ING MFS Utilities Portfolio (Class S)

Seeks total return.

Investment Adviser: Directed Services LLC

Investment Subadviser: Massachusetts Financial Services Company

</R>

ING Premium Plus – 152952

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<R>
Fund Name and   
Investment Adviser/Subadviser  Investment Objective 
ING Multi-Manager International Small Cap Equity Portfolio  Seeks long-term capital appreciation. 
     (Class S)   
 

Investment Adviser: Directed Services LLC

Investment Subadviser: Schroder Investment Management North America, Inc. and American Century Investment Management, Inc.

ING Oppenheimer Active Allocation Portfolio (Class S)

Seeks long-term growth of capital with a secondary objective of current income.
 
     Investment Adviser: Directed Services LLC   
     Investment Subadviser: OppenheimerFunds, Inc.   
 

ING PIMCO Total Return Bond Portfolio (Class S)

Seeks maximum total return, consistent with preservation of capital and prudent investment management.

Investment Adviser: Directed Services LLC

Investment Subadviser: Pacific Investment Management Company LLC

ING Pioneer Fund Portfolio (Class S)

Seeks reasonable income and capital growth.
 
     Investment Adviser: Directed Services LLC   
     Investment Subadviser: Pioneer Investment Management, Inc.   
 
ING Pioneer Mid Cap Value Portfolio (Class S)  Seeks capital appreciation. 
 
   Investment Adviser: Directed Services LLC   
   Investment Subadviser: Pioneer Investment Management, Inc.   
 

ING Templeton Global Growth Portfolio (Class S)

Seeks capital appreciation. Current income is only an incidental consideration.

Investment Adviser: Directed Services LLC

Investment Subadviser: Templeton Global Advisors Limited
 
ING T. Rowe Price Capital Appreciation Portfolio  Seeks, over the long-term, a high total investment return, consistent 
   (Class S)  with the preservation of capital and prudent investment risk. 
 
   Investment Adviser: Directed Services LLC   
   Investment Subadviser: T. Rowe Price Associates, Inc.   
 

ING T. Rowe Price Equity Income Portfolio (Class S)

Seeks substantial dividend income as well as long-term growth of capital.

Investment Adviser: Directed Services LLC

Investment Subadviser: T. Rowe Price Associates, Inc.

ING Van Kampen Global Franchise Portfolio (Class S)

A non-diversified Portfolio that seeks long-term capital appreciation.
 
   Investment Adviser: Directed Services LLC   
   Investment Subadviser: Van Kampen   

</R> <R>
ING Van Kampen Global Tactical Asset Allocation Portfolio  Seeks capital appreciation over time. 
   (Class S)   

</R> <R>

  Investment Adviser: Directed Services LLC
Investment Subadviser: Van Kampen

</R>

ING Premium Plus – 152952

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<R>

Fund Name and
Investment Adviser/Subadviser
ING Van Kampen Growth and Income Portfolio (Class S)

Investment Objective
Seeks long-term growth of capital and income.

  Investment Adviser: Directed Services LLC
Investment Subadviser: Van Kampen

</R> <R>
ING Wells Fargo Small Cap Disciplined Portfolio  Seeks long-term capital appreciation. 
     (Class S)   

</R> <R>

Investment Adviser: Directed Services LLC
Investment Subadviser: Wells Capital Management, Inc.

ING Partners, Inc.
7337 East Doubletree Ranch Road, Scottsdale, AZ 85258
ING Baron Small Cap Growth Portfolio (S Class)

Seeks capital appreciation.

Investment Adviser: Directed Services LLC
Investment Subadviser: BAMCO, Inc.

ING Davis New York Venture Portfolio (S Class)

Seeks long-term growth of capital.

Investment Adviser: Directed Services LLC
Investment Subadviser: Davis Selected Advisers, L.P.

ING JPMorgan Mid Cap Value Portfolio (S Class)

Seeks growth from capital appreciation.

Investment Adviser: Directed Services LLC
Investment Subadviser: J.P. Morgan Investment Management Inc.

ING Templeton Foreign Equity Portfolio (S Class)

Seeks long-term capital growth.

Investment Adviser: Directed Services LLC
Investment Subadviser: Templeton Investment Counsel, LLC

ING T. Rowe Price Growth Equity Portfolio
(S Class)

Seeks long-term capital growth, and secondarily, increasing dividend
income.

Investment Adviser: Directed Services LLC
Investment Subadviser: T. Rowe Price Associates, Inc.

ING Van Kampen Comstock Portfolio (S Class)

Seeks capital growth and income.

Investment Adviser: Directed Services LLC
Investment Subadviser: Van Kampen

ING Van Kampen Equity and Income Portfolio
(S Class)

Seeks total return, consisting of long-term capital appreciation and
current income.

Investment Adviser: Directed Services LLC
Investment Subadviser: Van Kampen

ING Variable Funds
ING Growth and Income Portfolio (Class S)
Investment Adviser: ING Investments, LLC
Investment Subadviser: ING Investment Management Co.

Seeks to maximize total return through investments in a diversified
portfolio of common stocks and securities convertible into common
stock.

</R>

ING Premium Plus – 152952

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<R>

Fund Name and

Investment Adviser/Subadviser ING Variable Portfolios, Inc.

7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258

Investment Objective
ING BlackRock Science and Technology Opportunities Portfolio  Seeks long-term capital appreciation. 
     (Class S)   
 

Investment Adviser: ING Investments, LLC Investment Subadviser: BlackRock Advisors, LLC

ING Global Equity Option Portfolio (Class S)

Seeks long-term growth of capital.
 
     Investment Adviser: ING Investments, LLC   
     Investment Subadviser: ING Investment Management Co.   
 

ING Hang Seng Index Portfolio (Class S)

Seeks investment results (before fees and expenses) that correspond to the total return of the Hang Seng Index.

Investment Adviser: ING Investments, LLC

Investment Subadviser: ING Investment Management Co.

ING International Index Portfolio (Class S)

Seeks investment results (before fees and expenses) that correspond to the total return of a widely accepted International Index.

Investment Adviser: ING Investments, LLC

Investment Subadviser: ING Investment Management Co.

ING Russell™ Global Large Cap Index 75% Portfolio (Class S)

Seeks to maximize total return, consisting of capital appreciation and current income, over the long term by allocating its assets among stock, bonds, short-term instruments and other investments.

Investment Adviser: ING Investments, LLC

Investment Subadviser: ING Investment Management Co.
 
ING Russell™ Large Cap Growth Index Portfolio  Seeks investment results (before fees and expenses) that correspond to 
   (Class S)  the total return of the Russell Top 200® Growth Index. 
 
   Investment Adviser: ING Investments, LLC   
   Investment Subadviser: ING Investment Management Co.   
 

ING RussellTM Large Cap Index Portfolio (Class S)

Seeks investment results (before fees and expenses) that correspond to the total return of the Russell Top 200® Index.

Investment Adviser: ING Investments, LLC

Investment Subadviser: ING Investment Management Co.

ING Russell™ Large Cap Value Index Portfolio (Class S)

Seeks investment results (before fees and expenses) that correspond to the total return of the Russell Top 200® Value Index.

Investment Adviser: ING Investments, LLC

Investment Subadviser: ING Investment Management Co.

ING Russell™ Mid Cap Growth Index Portfolio (Class S)

Seeks investment results (before fees and expenses) that correspond to the total return of the Russell Midcap® Growth Index.

Investment Adviser: ING Investments, LLC

Investment Subadviser: ING Investment Management Co.

ING RussellTM Mid Cap Index Portfolio (Class S)

Seeks investment results (before fees and expenses) that correspond to the total return of the Russell Midcap® Index.

Investment Adviser: ING Investments, LLC

Investment Subadviser: ING Investment Management Co.

</R>

ING Premium Plus – 152952

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<R>

Fund Name and
Investment Adviser/Subadviser
ING RussellTM Small Cap Index Portfolio (Class S)

Investment Adviser: ING Investments, LLC
Investment Subadviser: ING Investment Management Co.

ING Small Company Portfolio (Class S)
Investment Adviser: ING Investments, LLC
Investment Subadviser: ING Investment Management Co.

ING U.S. Bond Index Portfolio (Class S)
Investment Adviser: ING Investments, LLC
Investment Subadviser: Lehman Brothers Asset Management LLC

ING WisdomTreeSM Global High-Yielding Equity Index Portfolio*
(Class S)

Investment Adviser: ING Investments, LLC
Investment Subadviser: ING Investment Management Co.

* WisdomTreeSM is a servicemark of WisdomTree Investments

ING Variable Products Trust
7337 E. Doubletree Ranch Road, Scottsdale, AZ 85258
ING MidCap Opportunities Portfolio (Class S)
Investment Adviser: ING Investments, LLC
Investment Subadviser: ING Investment Management Co.

ING VP Funds
ING Intermediate Bond Portfolio (Class S)
Investment Adviser: ING Investments, LLC
Investment Subadviser: ING Investment Management Co.

BlackRock Variable Series Funds, Inc.
800 Scudders Mill Road, Plainsboro, NJ 08536
BlackRock Global Allocation V.I. Fund (Class III)

Investment Adviser: BlackRock Advisors, LLC
Investment Subadviser: BlackRock Investment Management,
LLC; BlackRock Asset Management U.K. Limited

Investment Objective
Seeks investment results (before fees and expenses) that correspond to
the total return of the Russell 2000® Index.

Seeks growth of capital primarily through investment in a diversified
portfolio of common stocks of companies with smaller market
capitalizations.

Seeks investment results (before fees and expenses) that correspond to
the total return of the Barclays Capital U.S. Aggregate Bond Index®.

Seeks investment returns that closely correspond to the price and yield
performance, (before fees and expenses) of the WisdomTreeSM Global
High-Yielding Equity Index (“Index”).

Seeks long-term capital appreciation.

Seeks to maximize total return consistent with reasonable risk.

The fund seeks to provide high total return through a fully managed
investment policy utilizing U.S. and foreign equity, debt and money
market instruments, the combination of which will be varied from time
to time both with respect to types of securities and markets in response
to changing market and economic trends.

ING Premium Plus – 152952

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</R>
<R> </R>

ING Premium Plus – 152952

A9

<R> </R> <R>
</R> <R> </R> <R> </R> <R>

ING Premium Plus – 152952

</R>

A10

<R> </R> <R> </R>

ING Premium Plus – 152952

A11

<R>
ING Premium Plus – 152952  A12 

</R>
<R>
ING Premium Plus – 152952  A13 

</R>
<R> </R> <R> </R>

ING Premium Plus – 152952

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<R> </R> <R>
</R> <R> </R> <R> </R>

“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500”, and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by ING USA Annuity and Life Insurance Company. The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the product.

ING Premium Plus – 152952

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  APPENDIX B

Fixed Account II

Fixed Account II (“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 that may vary by maturity, state of issue and rate. 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 or in all states 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.

Transfers from a Fixed Interest Allocation

<R>

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, canceling dollar cost averaging will cause a transfer of the entire Contract value in such Fixed Interest Allocation to the ING Liquid Assets Portfolio, 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.

</R>

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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.

<R>

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.

</R>

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:

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 Fixed Account II.

Cash Surrender Value

<R>

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 recapture or Premium Credits, 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.

</R>

Dollar Cost Averaging from Fixed Interest Allocations

<R>

You may elect to participate in our dollar cost averaging program from a Fixed Account Interest Allocation 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.

</R>

ING Premium Plus – 152952

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<R>

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.

</R>

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.

More Information
See the prospectus for Fixed Account II.

ING Premium Plus – 152952

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  APPENDIX C

Surrender Charge for Excess Withdrawals Example

The following assumes you made an initial premium payment of $10,000 and additional premium payments of $10,000 in each of the second and third contract years, for total premium payments under the Contract of $30,000. An additional credit of $400 would be added to each premium payment, for total credits paid of $1,200. It also assumes a withdrawal at the beginning of the fifth contract year of 15% of the contract value of $36,400.

In this example, $3,640 ($36,400 x .10) is the maximum free withdrawal amount that you may withdraw during the contract year without a surrender charge. The total withdrawal would be $5,460 ($36,400 x .15). Therefore, $1,820 ($5,460 – $3,640) is considered an excess withdrawal of a part of the initial premium payment of $10,000 and would be subject to a 7% surrender charge of $127.40 ($1,820 x .07). This example does not take into account any Market Value Adjustment or deduction of any premium taxes.

ING Premium Plus – 152952

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 APPENDIX D 
 
  Special Funds and Excluded Funds Examples 
Example #1:  The following examples are intended to demonstrate the impact on your 7% Solution Death Benefit Element (“7% 
MGDB”) of allocating your Contract Value to Special Funds. 

7% MGDB if 50% invested  7% MGDB if 0% invested             7% MGDB if 100% invested 
  in Special Funds      in Special Funds      in Special Funds   
 
End of Yr  Covered  Special  Total  End of Yr  Covered  Special  Total  End of Yr Covered  Special  Total 
0  500  500  1,000  0  1,000  —  1,000  0         0  1,000  1,000 
1  535  500  1,035  1  1,070  —  1,070  1         0  1,000  1,000 
2  572  500  1,072  2  1,145  —  1,145  2         0  1,000  1,000 
3  613  500  1,113  3  1,225  —  1,225  3         0  1,000  1,000 
4  655  500  1,155  4  1,311  —  1,311  4         0  1,000  1,000 
5  701  500  1,201  5  1,403  —  1,403  5         0  1,000  1,000 
6  750  500  1,250  6  1,501  —  1,501  6         0  1,000  1,000 
7  803  500  1,303  7  1,606  —  1,606  7         0  1,000  1,000 
8  859  500  1,359  8  1,718  —  1,718  8         0  1,000  1,000 
9  919  500  1,419  9  1,838  —  1,838  9         0  1,000  1,000 
10  984  500  1,484  10  1,967  —  1,967  10         0  1,000  1,000 

7% MGDB if transferred to           7% MGDB if transferred to 
  Special Funds      Covered Funds   
  at the beginning of year 6    at the beginning of year 6   
 
End of Yr  Covered  Special  Total  End of Yr  Covered  Special  Total 
0  1,000  —  1,000  0  —  1,000  1,000 
1  1,070  —  1,070  1  —  1,000  1,000 
2  1,145  —  1,145  2  —  1,000  1,000 
3  1,225  —  1,225  3  —  1,000  1,000 
4  1,311  —  1,311  4  —  1,000  1,000 
5  1,403  —  1,403  5  —  1,000  1,000 
6  —  1,403  1,403  6  1,070  —  1,070 
7  —  1,403  1,403  7  1,145  —  1,145 
8  —  1,403  1,403  8  1,225  —  1,225 
9  —  1,403  1,403  9  1,311  —  1,311 
10  —  1,403  1,403  10  1,403  —  1,403 

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Example #2:  The following examples are intended to demonstrate the impact on your 7% Solution Death Benefit Element (“7% 
MGDB”) of allocating your Contract Value to Excluded Funds.         
 
 
 
    7% MGDB IF 50% INVESTED IN EXCLUDED FUNDS   
 
             Covered  Excluded             Total     
 
    7%    “7%    7%    Death 
                           End of Yr MGDB  AV  MGDB”  AV  MGDB  AV  Benefit 
  0  500  500  500  500  1,000  1,000  1,000 
  1  535  510  535  510  1,045  1,020  1,045 
  2  572  490  572  490  1,062  980  1,062 
  3  613  520  613  520  1,133  1,040  1,133 
  4  655  550  655  550  1,205  1,100  1,205 
  5  701  450  701  450  1,151  900  1,151 
  6  750  525  750  525  1,275  1,050  1,275 
  7  803  600  803  600  1,403  1,200  1,403 
  8  859  750  859  750  1,609  1,500  1,609 
  9  919  500  919  500  1,419  1,000  1,419 
  10  984  300  984  300  1,284  600  1,284 

    7% MGDB if 0% invested    7% MGDB if 100% invested 
    in Excluded Funds      in Excluded Funds   
    Covered      Excluded   
 
        Death    “7%    Death 
  End of Yr 7% MGDB  AV  Benefit  End of Yr MGDB”  AV  Benefit 
  0           1,000  1,000  1,000  0  1,000  1,000  1,000 
  1           1,070  1,020  1,070  1  1,070  1,020  1,020 
  2           1,145  980  1,145  2  1,145  980  980 
  3           1,225  1,040  1,225  3  1,225  1,040  1,040 
  4           1,311  1,100  1,311  4  1,311  1,100  1,100 
  5           1,403  900  1,403  5  1,403  900  900 
  6           1,501  1,050  1,501  6  1,501  1,050  1,050 
  7           1,606  1,200  1,606  7  1,606  1,200  1,200 
  8           1,718  1,500  1,718  8  1,718  1,500  1,500 
  9           1,838  1,000  1,838  9  1,838  1,000  1,000 
  10           1,967  600  1,967  10  1,967  600  600 
 
 
 
Note:  AV are hypothetical illustrative values. Not a projection. “7% MGDB” for Excluded funds is notional. 
  Not payable as a benefit. Death Benefit for Excluded Funds equals Accumulation Value (AV). 

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Transfer from Covered Funds to Excluded Funds
at the beginning of year 6
 
  Covered  Excluded  Total   
  7%    “7%    7%    Death 
End of Yr MGDB  AV  MGDB”  AV  MGDB  AV  Benefit 
—  1,000  1,000  —  —  1,000  1,000  1,000 
1  1,070  1,020  —  —  1,070  1,020  1,070 
2  1,145  980  —  —  1,145  980  1,145 
3  1,225  1,040  —  —  1,225  1,040  1,225 
4  1,311  1,100  —  —  1,311  1,100  1,311 
5  1,403  900  —  —  1,403  900  1,403 
6  —  —  1,501  1,050  1,050  1,050  1,050 
7  —  —  1,606  1,200  1,200  1,200  1,200 
8  —  —  1,718  1,500  1,500  1,500  1,500 
9  —  —  1,838  1,000  1,000  1,000  1,000 
10  —  —  1,967  600  600  600  600 

Note:

7% MGDB transferred to Excluded Funds equals the 7% MGDB in Covered Funds (or pro-rata portion thereof for partial transfer). Transfers from Special Funds to Excluded Funds work the same as Covered to Excluded (except 7% MGDB in Special Funds does not accumulate).

TRANSFER FROM EXCLUDED FUNDS TO COVERED FUNDS AT THE BEGINNING OF YEAR 6

  Covered  Excluded  Total   
  7%    “7%    7%    Death 
End of Yr MGDB  AV  MGDB”  AV  MGDB  AV  Benefit 
—  —  —  1,000  1,000  1,000  1,000  1,000 
1  —  —  1,070  1,020  1,020  1,020  1,020 
2  —  —  1,145  980  980  980  980 
3  —  —  1,225  1,040  1,040  1,040  1,040 
4  —  —  1,311  1,100  1,100  1,100  1,100 
5  —  —  1,403  900  900  900  900 
6  963  1,050  —  —  963  1,050  1,050 
7  1,030  1,200  —  —  1,030  1,200  1,200 
8  1,103  1,500  —  —  1,103  1,500  1,500 
9  1,180  1,000  —  —  1,180  1,000  1,180 
10  1,262  600  —  —  1,262  600  1,262 

Note:

7% MGDB transferred to Covered Funds is the lesser of 7% MGDB in Excluded Funds (or portion thereof for partial transfer) and AV transferred to Covered Funds. Transfers from Excluded Funds to Special Funds work the same as Excluded to Covered (except 7% MGDB in Special Funds does not accumulate).

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<R>
 APPENDIX E   
                                                                   Examples of Minimum Guaranteed Income Benefit Calculation 

</R>

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<R> </R> <R>
  Example 1     
 
      Contract without  Contract with 
  Age    MGIB Rider  MGIB Rider 
  55  Initial Value  $100,000  $100,000 
    Accumulation Rate  0.00%  0.00% 
    Rider Charge  0.00%  0.75% 
 
  65  Contract Value  $100,000  $89,188 
Contract Annuity
    Factor  4.71  4.71 
    Monthly Income  $471.00  $420.08 
    MGIB Rollup  n/a  $179,085 
    MGIB Ratchet  n/a  $100,000 
MGIB Annuity
    Factor  n/a  4.17 
    MGIB Income  n/a  $746.78 
    Income  $471.00  $746.78 
  Example 2     
  55  Initial Value  $100,000  $100,000 
    Accumulation Rate  3.00%  3.00% 
    Rider Charge  0.00%  0.75% 
 
  65  Contract Value  $134,392  $122,065 
Contract Annuity
    Factor  4.71  4.71 
    Monthly Income  $632.98  $574.92 
    MGIB Rollup  n/a  $179,085 
    MGIB Ratchet  n/a  $122,065 
MGIB Annuity
    Factor  n/a  4.17 
    MGIB Income  n/a  $746.78 
    Income  $632.98  $746.78 
  Example 3     
  55  Initial Value  $100,000  $100,000 
    Accumulation Rate  8.00%  8.00% 
    Rider Charge  0.00%  0.75% 
 
  65  Contract Value  $215,892  $200,279 
Contract Annuity
    Factor  4.71  4.71 
    Monthly Income  $1,016.85  $943.31 
    MGIB Rollup  n/a  $179,085 
    MGIB Ratchet  n/a  $200,279 
MGIB Annuity
    Factor  n/a  4.17 
    MGIB Income  n/a  $835.16 
    Income  $1,016.85  $943.31 
ING Premium Plus – 152952      E2   

</R>

The Accumulation Rates shown under “Contract” are hypothetical and intended to illustrate various market conditions. These rates are assumed to be net of all fees and charges. Fees and charges are not assessed against the MGIB Rollup Rate.

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E3

<R> </R>

ING Premium Plus – 152952

F1

<R> </R>

ING Premium Plus – 152952

F2

<R> </R>

ING Premium Plus – 152952

F3

<R>

APPENDIX F

</R>

Examples of Fixed Allocation Funds Automatic Rebalancing

The following examples are designed to assist you in understanding how Fixed Allocation Funds Automatic Rebalancing works. The examples assume that there are no investment earnings or losses.

I.      Subsequent Payments
A.      Assume that on Day 1, an owner deposits an initial payment of $100,000, which is allocated 100% to Accepted Funds. No Fixed

Allocation Funds Automatic Rebalancing would occur, because this allocation meets the required investment option allocation.

<R>

B. Assume that on Day 2, the owner deposits an additional payment of $500,000, bringing the total contract value to $600,000, and allocates this deposit 100% to Other Funds. Because the percentage allocated to the Fixed Allocation Funds (0%) is less than 30% of the total amount allocated to the Fixed Allocation Funds and the Other Funds, we will automatically reallocate $150,000 from the amount allocated to the Other Funds (30% of the $500,000 allocated to the Other Funds) to the Fixed Allocation Funds. Your ending allocations will be $100,000 to Accepted Funds, $150,000 to the Fixed Allocation Funds, and $350,000 to Other Funds.

</R> <R>
II.      Partial Withdrawals
A.      Assume that on Day 1, an owner deposits an initial payment of $100,000, which is allocated 65% to Accepted Funds
</R> <R>

($65,000), 30% to the Fixed Allocation Funds ($30,000), and 5% to Other Funds ($5,000). No Fixed Allocation Funds Automatic Rebalancing would occur, because this allocation meets the required investment option allocation.

B. Assume that on Day 2, the owner requests a partial withdrawal of $29,000 from the Fixed Allocation Funds. Because the remaining amount allocated to the Fixed Allocation Funds ($11,000) is less than 30% of the total amount allocated to the Fixed Allocation Funds and the Other Funds, we will automatically reallocate $800 from the Other Funds to the Fixed Allocation Funds, so that the amount allocated to the Fixed Allocation Funds ($1,800) is 30% of the total amount allocated to the Fixed Allocation Funds and Other Funds ($16,000).

</R>

ING Premium Plus – 152952

<R>

F1

</R>

ING USA Annuity and Life Insurance Company

ING USA Annuity and Life Insurance Company is a stock company domiciled in Iowa.

ING Premium Plus – 152952

05/01/2009

PART B
Statement of Additional Information
ING PREMIUM PLUS
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,
Iowa 50306-9271 or telephone 1-800-366-0066, or access the SEC’s website (http://www.sec.gov).

DATE OF PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION: 
 
May 1, 2009

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 
Independent Registered Public Accounting Firm       1 
Distribution of Contracts       1 
Published Ratings       2 
Accumulation Unit Value       2 
Performance Information       3 
Other Information       4 
Financial Statements of ING USA Annuity and Life Insurance Company       5 
Financial Statements of Separate Account B       5 
Condensed Financial Information (Accumulation Unit Values)       5 

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 financial statements appear in the Statement of Additional
Information.

As of December 31, 2008, ING USA had approximately $787.1 million in stockholder’s equity and
approximately $69,733.3 billion in total assets, including approximately $34,090.8 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.

Independent Registered Public Accounting Firm
Ernst & Young LLP, 55 Ivan Allen Jr. Boulevard, Suite 1000, Atlanta, Georgia 30308, an Independent
Registered Public Accounting Firm, performs 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 LLC, 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 broker-dealers who have entered into selling agreements with
Directed Services LLC. For the years ended 2008, 2007 and 2006 commissions paid by ING USA,
including amounts paid by its affiliated Company, RLNY, to Directed Services LLC aggregated
$622,486,274, $568,432,009 and $429,206,095, respectively. All commissions received by the
distributor were passed through to the broker-dealers who sold the contracts. Directed Services LLC is
located at 1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478.

1 

Under a management services agreement, last amended in 1995, ING USA provides to Directed Services
LLC certain of its personnel to perform management, administrative and clerical services and the use of
certain facilities. ING USA charges Directed Services LLC 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 Directed Services
LLC. 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 $139,224,091, $109,907,841 and
$70,763,649, for the years ended 2008, 2007, and 2006, 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 do not reflect the
mortality and expense risk charge for this product and are for illustration purposes only. For AUV’s
calculated for this Contract, please see the Condensed Financial Information in the prospectus.

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 

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 

2 

Performance Information
From time to time, we may advertise or include in reports to contract owner’s 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 Assets 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 of less than one year. We will base total return figures 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, and 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 Assets 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 Assets 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, assuming the selection of the Max 7 Enhanced
Death Benefit and the MGIB optional benefit rider. You should be aware that there is no guarantee
that the Liquid Assets 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.

3 

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.

4 

FINANCIAL STATEMENTS OF ING USA ANNUITY AND LIFE INSURANCE COMPANY 
 
The audited 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 
Financial Statements of ING USA Annuity and Life Insurance Company 
         Statements of Operations for the years ended December 31, 2008, 2007 and 2006 
         Balance Sheets as of December 31, 2008 and 2007 
         Statements of Changes in Shareholder’s Equity for the years ended December 31, 2008, 2007 and 2006 
         Statements of Cash Flows for the years ended December 31, 2008, 2007 and 2006 
Notes to 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 
Financial Statements of ING USA Annuity and Life Insurance Company Separate Account B 
         Statements of Assets and Liabilities as of December 31, 2008 
         Statements of Operations for the year ended December 31, 2008 
         Statements of Changes in Net Assets for the years ended December 31, 2008 and 2007 
Notes to Financial Statements 

5 

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, 2008, 2007, and 2006  C-3 
         Balance Sheets as of December 31, 2008 and 2007  C-4 
         Statements of Changes in Shareholder's Equity for the years ended   
                 December 31, 2008, 2007, and 2006  C-6 
         Statements of Cash Flows for the years ended   
                 December 31, 2008, 2007, and 2006  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, 2008 and 2007, and the related statements of operations, changes in shareholder’s equity, and cash flows for each of the three years in the period ended December 31, 2008. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audits include consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ING USA Annuity and Life Insurance Company as of December 31, 2008 and 2007, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2008, in conformity with U.S. generally accepted accounting principles.

Ernst & Young LLP

Atlanta, Georgia
March 26, 2009

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,   
  2008  2007    2006 
Revenue:         
     Net investment income  $ 1,438.0  $ 1,346.4  $ 1,156.4 
     Fee income  1,152.4  1,198.9    939.2 
     Premiums  19.1  19.6    20.5 
     Net realized capital losses  (1,481.7)  (391.2)    (90.4) 
     Other income  0.2  0.1    - 
Total revenue  1,128.0  2,173.8    2,025.7 
Benefits and expenses:         
     Interest credited and other benefits to contractowners  1,716.0  1,312.0    1,169.7 
     Operating expenses  291.7  269.6    228.0 
     Net amortization of deferred policy acquisition         
             costs and value of business acquired  680.5  408.1    293.0 
     Interest expense  30.5  32.5    30.3 
     Other expense  35.7  24.2    28.1 
Total benefits and expenses  2,754.4  2,046.4    1,749.1 
(Loss) income before income taxes  (1,626.4)  127.4    276.6 
Income tax (benefit) expense  (245.2)  (1.6)    64.4 
Net (loss) income  $ (1,381.2)  $ 129.0  $ 212.2 

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,   
  2008    2007 
Assets       
Investments:       
     Fixed maturities, available-for-sale, at fair value       
             (amortized cost of $20,393.5 at 2008 and $21,945.0 at 2007)  $ 17,143.0  $ 21,833.4 
     Equity securities, available-for-sale, at fair value       
             (cost of $257.6 at 2008 and $216.6 at 2007)  253.9    211.1 
     Short-term investments  111.7    188.0 
     Mortgage loans on real estate  3,923.3    3,701.7 
     Policy loans  144.4    155.8 
     Limited partnerships/corporations  332.9    454.5 
     Other investments  364.7    394.1 
     Securities pledged (amortized cost of $976.7 at 2008       
               and $953.3 at 2007)  993.2    942.6 
Total investments  23,267.1    27,881.2 
Cash and cash equivalents  610.8    204.4 
Short-term investments under securities loan agreement  130.4    128.5 
Accrued investment income  214.5    216.9 
Receivable for securities sold  9.1    4.6 
Premium receivable  303.1    - 
Deposits and reinsurance recoverable from affiliate  5,349.3    4,616.1 
Deferred policy acquisition costs  4,205.5    2,908.4 
Value of business acquired  195.1    128.7 
Sales inducements to contractowners  624.3    645.4 
Due from affiliates  14.5    22.9 
Current income tax recoverable  321.1    - 
Other assets  481.9    41.3 
Assets held in separate accounts  34,090.8    44,477.8 
Total assets  $ 69,817.5  $ 81,276.2 

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,   
  2008    2007 
Liabilities and Shareholder's Equity       
Future policy benefits and claims reserves  $ 32,570.7  $ 31,461.6 
Payables for securities purchased  4.1    - 
Payables under securities loan agreement, including collateral held  148.0    140.0 
Borrowed money  483.1    715.5 
Notes to affiliates  435.0    435.0 
Due to affiliates  151.7    95.6 
Current income taxes  -    40.7 
Deferred income taxes  35.8    184.5 
Other liabilities  1,130.8    606.5 
Liabilities related to separate accounts  34,090.8    44,477.8 
Total liabilities  69,050.0    78,157.2 
 
Shareholder's equity       
     Common stock (250,000 shares authorized, issued       
             and outstanding; $10 per share value)  2.5    2.5 
     Additional paid-in capital  4,335.4    4,132.7 
     Accumulated other comprehensive loss  (1,333.7)    (160.7) 
     Retained earnings (deficit)  (2,236.7)    (855.5) 
Total shareholder's equity  767.5    3,119.0 
Total liabilities and shareholder's equity  $ 69,817.5  $ 81,276.2 

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 (Loss)  (Deficit)  Equity 
Balance at December 31, 2005  $ 2.5  $ 4,143.1  $ (4.7)  $ (1,191.9)  $ 2,949.0 
     Comprehensive income:           
             Net income  -  -  -  212.2  212.2 
             Other comprehensive loss, net of tax:           
                   Change in net unrealized capital           
                           gains (losses) on securities           
                           ($(10.7) pretax)  -  -  (7.3)  -  (7.3) 
                   Pension liability ($0.6 pretax)  -  -  0.4  -  0.4 
                   Other  -  -  1.1  -  1.1 
     Total comprehensive income          206.4 
     Cumulative effect of change of           
             accounting principle ($(2.4) pretax)  -  -  (1.6)  -  (1.6) 
     Capital distribution paid  -  (170.0)  -  -  (170.0) 
     Employee share-based payments  -  4.1  -  -  4.1 
     Other  -  1.2  -  -  1.2 
Balance at December 31, 2006  2.5  3,978.4  (12.1)  (979.7)  2,989.1 
     Cumulative effect of change of           
             accounting principles  -  -  -  (4.8)  (4.8) 
Balance at January 1, 2007  2.5  3,978.4  (12.1)  (984.5)  2,984.3 
     Comprehensive income (loss):           
             Net income  -  -  -  129.0  129.0 
             Other comprehensive loss, net of tax:           
                   Change in net unrealized capital           
                           gains (losses) on securities           
                           ($(158.7) pretax), including           
                           valuation allowance of $(46.9)  -  -  (149.7)  -  (149.7) 
                   Pension liability ($3.4 pretax)  -  -  2.2  -  2.2 
                   Other  -  -  (1.1)  -  (1.1) 
     Total comprehensive loss          (19.6) 
     Capital contribution  -  150.0  -  -  150.0 
     Employee share-based payments  -  4.3  -  -  4.3 
Balance at December 31, 2007  2.5  4,132.7  (160.7)  (855.5)  3,119.0 
     Comprehensive loss:           
             Net loss  -  -  -  (1,381.2)  (1,381.2) 
             Other comprehensive loss, net of tax:           
                   Change in net unrealized capital           
                           gains (losses) on securities           
                           ($(1,831.4) pretax), including           
                           valuation allowance of $17.1  -  -  (1,173.3)  -  (1,173.3) 
                   Pension liability ($0.5 pretax)  -  -  0.3  -  0.3 
     Total comprehensive loss          (2,554.2) 
     Capital contribution from Parent  -  1,100.0  -  -  1,100.0 
     Capital distribution to Parent  -  (900.0)  -  -  (900.0) 
     Employee share-based payments  -  2.7  -  -  2.7 
Balance at December 31, 2008  $ 2.5  $ 4,335.4  $ (1,333.7)  $ (2,236.7)  $ 767.5 

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,   
  2008                     2007       2006 
Cash Flows from Operating Activities:         
     Net (loss) income  $ (1,381.2)  $ 129.0  $ 212.2 
     Adjustments to reconcile net income to         
             net cash provided by operating activities:         
                     Capitalization of deferred policy acquisition costs         
                           and sales inducements  (888.6)  (864.5)    (831.9) 
                     Net amortization of deferred policy acquisition costs,         
                           value of business acquired, and sales inducements  910.2  528.3    367.1 
                     Net accretion/decretion of discount/premium  74.7  52.2    57.7 
                     Future policy benefits, claims reserves, and         
                           interest credited  2,156.8  1,368.5    1,179.9 
                     Provision for deferred income taxes  509.6  (69.0)    131.4 
                     Net realized capital losses  1,481.7  391.2    90.4 
                     Change in:         
                           Accrued investment income  2.4  (33.2)    (8.7) 
                           Reinsurance recoverable (excluding GICs)  (827.0)  (132.4)    (52.1) 
                           Other receivables and asset accruals  (389.9)  2.5    (13.9) 
                           Other reinsurance asset  (353.8)  -    - 
                           Due to/from affiliates  64.5  56.0    (8.0) 
                           Income tax recoverable  (361.8)  -    - 
                           Other payables and accruals  17.9  42.9    (3.1) 
                           Employee share-based payments  2.7  4.3    4.1 
                           Other, net  163.8  2.2    1.1 
Net cash provided by operating activities  1,182.0  1,478.0    1,126.2 
Cash Flows from Investing Activities:         
     Proceeds from the sale, maturity, or redemption of:         
             Fixed maturities, available-for-sale  7,478.8  10,631.8    10,496.1 
             Equity securities, available-for-sale  162.8  16.5    15.8 
             Mortgage loans on real estate  474.5  776.1    523.7 
     Acquisition of:         
             Fixed maturities, available-for-sale  (7,002.2)  (15,767.5)    (11,446.3) 
             Equity securities, available-for-sale  (272.0)  (193.5)    (25.4) 
             Mortgage loans on real estate  (700.3)  (790.6)    (444.4) 
     Derivatives, net  (58.1)  22.9    (198.1) 
     Limited partnerships, net  30.1  (305.4)    (69.9) 
     Short-term investments, net  77.2  (53.8)    (79.7) 
     Collateral (paid) received  6.2  11.5    - 
     Other, net  13.7  1.9    4.7 
Net cash provided by (used in) investing activities  210.7  (5,650.1)    (1,223.5) 

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,   
  2008                         2007  2006 
Cash Flows from Financing Activities:       
     Deposits received for investment contracts  $ 8,473.0  $ 10,458.9  $ 5,788.4 
     Maturities and withdrawals from investment contracts  (9,520.7)  (7,062.2)  (4,497.2) 
     Reinsurance recoverable on investment contracts  93.8  275.3  (638.8) 
     Notes to affiliates  -  -  45.0 
     Short-term repayments  (232.4)  (54.1)  (36.7) 
     Capital distribution to Parent  (900.0)  -  (170.0) 
     Capital contribution from Parent  1,100.0  150.0  - 
Net cash (used in) provided by financing activities  (986.3)  3,767.9  490.7 
Net increase (decrease) in cash and cash equivalents  406.4  (404.2)  393.4 
Cash and cash equivalents, beginning of year  204.4  608.6  215.2 
Cash and cash equivalents, end of year  $ 610.8  $ 204.4  $ 608.6 
Supplemental cash flow information:       
     Income taxes (received) paid, net  $ (393.1)  $ 21.3  $ (30.2) 
     Interest paid  $ 50.5  $ 67.1  $ 66.2 

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) is a stock life insurance company domiciled in the State of Iowa and provides financial products and services in the United States. ING USA is authorized to conduct its insurance business in all states, except New York, and in the District of Columbia.

ING USA is a direct, wholly-owned subsidiary of Lion Connecticut Holdings Inc. (“Lion” or “Parent”), which is an indirect, wholly-owned subsidiary of ING Groep N.V. (“ING”). ING is 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”.

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 broker-dealers, banks, life insurance companies with captive agency sales forces, independent insurance agents, independent marketing organizations, and affiliated broker-dealers. The Company’s primary annuity customers are individual consumers.

The Company also offers guaranteed investment contracts and funding agreements (collectively referred to as “GICs”), sold primarily to institutional investors and corporate benefit plans. These products are marketed by home office personnel or through specialty insurance brokers.

The Company previously provided interest-sensitive, traditional life insurance, and health insurance. The Company no longer issues these products. The life insurance business is in runoff, and the Company has ceded to other insurers all health insurance.

The Company has one operating segment.

Recently Adopted Accounting Standards

Fair Value Measurements

In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“FAS”) No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 provides guidance for using fair value to measure assets and liabilities whenever other standards require (or permit) assets or liabilities to be measured at fair value. FAS 157 does not expand the use of fair value to any new circumstances.

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)

Under FAS 157, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability. In support of this principle, FAS 157 establishes a fair value hierarchy that prioritizes the information used to develop such assumptions. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. FAS 157 also requires separate disclosure of fair value measurements by level within the hierarchy and expanded disclosure of the effect on earnings for items measured using unobservable data.

FAS 157 was adopted by the Company on January 1, 2008. As a result of implementing FAS 157, the Company recognized $69.6, before tax, as an increase to Net income on the date of adoption related to the fair value measurements of investment contract guarantees. The impact of implementation was included in Interest credited and other benefits to contractowners on the Statements of Operations.

In October 2008, the FASB issued FASB Staff Position (“FSP”) FAS No. 157-3, “Determining the Fair Value of a Financial Asset When the Market for That Asset Is Not Active” (“FSP FAS 157-3”), which provides clarifying guidance on the application of FAS 157 to financial assets in a market that is not active and was effective upon issuance. FSP FAS 157-3 had no effect on the Company’s financial condition, results of operations, or cash flows upon adoption, as its guidance is consistent with that applied by the Company upon adoption of FAS 157.

The Company recognized no other adjustments to its financial statements related to the adoption of FAS 157, and new disclosures are included in the Financial Instruments footnote.

The Fair Value Option for Financial Assets and Financial Liabilities

In February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“FAS 159”), which allows a company to make an irrevocable election, on specific election dates, to measure eligible items at fair value with unrealized gains and losses recognized in earnings at each subsequent reporting date. The election to measure an item at fair value may be determined on an instrument by instrument basis, with certain exceptions. If the fair value option is elected, any upfront costs and fees related to the item will be recognized in earnings as incurred. Items eligible for the fair value option include:

§      Certain recognized financial assets and liabilities;
§      Rights and obligations under certain insurance contracts that are not financial instruments;
§      Host financial instruments resulting from the separation of an embedded nonfinancial derivative instrument from a nonfinancial hybrid instrument; and
§      Certain commitments.

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)

FAS 159 was adopted by the Company on January 1, 2008. In implementing FAS 159, the Company elected not to take the fair value option for any eligible assets or liabilities in existence on January 1, 2008, or in existence at the date of these financial statements.

Offsetting of Amounts Related to Certain Contracts

On April 30, 2007, the FASB issued a FSP on FASB Interpretation (“FIN”) No. 39, “Offsetting of Amounts Related to Certain Contracts” (“FSP FIN 39-1”), which permits a reporting entity to offset fair value amounts recognized for the right to reclaim or the obligation to return cash collateral against fair value amounts recognized for derivative instruments under master netting arrangements. FSP FIN 39-1 had no effect on the financial condition, results of operations, or cash flows upon adoption by the Company on January 1, 2008, as it is the Company’s accounting policy not to offset such fair value amounts.

Accounting for Uncertainty in Income Taxes

In June 2006, the FASB issued FIN No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), which creates a single model to address the accounting for the uncertainty in income tax positions recognized in a company’s financial statements. FIN 48 prescribes a recognition threshold and measurement criteria that must be satisfied to recognize a financial statement benefit of tax positions taken, or expected to be taken, on an income tax return. Additionally, FIN 48 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

FIN 48 was adopted by the Company on January 1, 2007. As a result of implementing FIN 48, the Company recognized a cumulative effect of change in accounting principle of $1.7 as a reduction to January 1, 2007 Retained earnings (deficit).

Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts

In September 2005, the American Institute of Certified Public Accountants (“AICPA”) issued Statement of Position (“SOP”) 05-1, “Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts” (“SOP 05-1”), which states that when an internal replacement transaction results in a substantially changed contract, the unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets, related to the replaced contract should not be deferred in connection with the new contract. Contract modifications that meet various conditions defined by SOP 05-1 and result in a new contract that is substantially unchanged from the replaced contract, however, should be accounted for as a continuation of the replaced contract.

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)

SOP 05-1 defines an internal replacement as a modification in product benefits, features, rights, or coverage, that occurs by the exchange of a contract for a new contract, by amendment, endorsement, or rider, to a contract, or by the election of a feature or coverage within a contract. SOP 05-1 applies to internal replacements made primarily to contracts defined by FAS No. 60, “Accounting and Reporting by Insurance Enterprises” (“FAS 60”), as short-duration and long-duration insurance contracts, and by 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”), as investment contracts.

SOP 05-1 was adopted by the Company on January 1, 2007, and is effective for internal replacements occurring on or after that date. As a result of implementing SOP 05-1, the Company recognized a cumulative effect of change in accounting principle of $4.8, before tax, or $3.1, net of $1.7 of income taxes, as a reduction to January 1, 2007 Retained earnings (deficit). In addition, the Company revised its accounting policy on the amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) to include internal replacements.

Disclosures about Credit Derivatives and Certain Guarantees

In September 2008, the FASB issued FSP FAS No. 133-1 and FIN No. 45-4, “Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” (“FSP FAS 133-1 and FIN 45-4”), which does the following:

§      Amends FAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” (“FAS 133”), requiring additional disclosures by sellers of credit derivatives;
§      Amends FASB Interpretation No. 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others” (“FIN 45”), requiring additional disclosure about the current status of the payment/performance risk of a guarantee; and
§      Clarifies the effective date of FAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”).

FSP FAS 133-1 and FIN 45-4 was adopted by the Company on December 31, 2008. In implementing FSP FAS 133-1 and FIN 45-4, the Company determined that its adoption had no financial statement impact.

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)

The clarification in the FSP of the effective date of FAS 161 is consistent with the guidance in FAS 161 and the Company’s disclosure provided herein.

Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities

In December, 2008, the FASB issued FSP FAS 140-4 and FIN 46(R)-8, “Disclosures by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities” (“FSP FAS 140-4 and FIN 46(R)-8”), which requires additional disclosures regarding a transferor’s continuing involvement with financial assets transferred in a securitization or asset-backed financing arrangement and an enterprise’s involvement with variable interest entities (“VIEs”) and qualifying special purpose entities (“QSPEs”).

FSP FAS 140-4 and FIN 46(R)-8 was adopted by the Company on December 31, 2008. In implementing FSP FAS 140-4 and FIN 46(R)-8, the Company determined that its adoption has no financial statement impact. The Company does not have any QSPEs or continuing involvement with financial assets transferred in a securitization or asset-backed financing arrangement.

Amendments to Impairment Guidance

In January 2009, the FASB issued FSP Emerging Issues Task Force (“EITF”) 99-20-1, “Amendments to the Impairment Guidance of EITF Issue No. 99-20” (“FSP EITF 99-20-1”), which amends EITF 99-20, “Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to Be Held by a Transferor in Securitized Financial Assets” (“EITF 99-20”). FSP EITF 99-20-1 requires that an other-than-temporary impairment on investments that meet the criteria of EITF 99-20 be recognized as a realized loss through earnings when it is probable there has been an adverse change in the holder’s estimated cash flow, consistent with the impairment model in FAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities.”

FSP EITF 99-20-1 was adopted by the Company on December 31, 2008, prospectively. In implementing FSP EITF 99-20-1, the Company determined there was a minimal effect on financial position, results of operations, and cash flows, as the structured securities held by the Company were highly rated at issue.

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)

New Accounting Pronouncements

Disclosures about Derivative Instruments and Hedging Activities

In March 2008, the FASB issued FAS 161, which requires enhanced disclosures about objectives and strategies for using derivatives, fair value amounts of and gains and losses on derivative instruments, and credit-risk-related contingent features in derivative agreements, including:

§      How and why derivative instruments are used;
§      How derivative instruments and related hedged items are accounted for under FAS 133 and its related interpretations; and
§      How derivative instruments and related hedged items affect an entity’s financial statements.

The provisions of FAS 161 are effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company is currently in the process of determining the impact of adoption of FAS 161 on its disclosures; however, as the pronouncement only pertains to additional disclosure, the Company has determined that the adoption of FAS 161 will have no impact on income, financial position or cash flows. In addition, the Company’s derivatives are generally not accounted for using hedge accounting treatment under FAS 133, as the Company has not historically sought hedge accounting treatment.

Business Combinations

In December 2007, the FASB issued FAS No. 141 (revised 2007), “Business Combinations” (“FAS 141R”), which replaces FAS No. 141, “Business Combinations,” as issued in 2001. FAS 141R requires most identifiable assets, liabilities, noncontrolling interest, and goodwill, acquired in a business combination to be recorded at full fair value as of the acquisition date, even for acquisitions achieved in stages. In addition, the statement requires:

§      Acquisition-related costs to be recognized separately and generally expensed;
§      Non-obligatory restructuring costs to be recognized separately when the liability is incurred;
§      Contractual contingencies acquired to be recorded at acquisition-date fair values;
§      A bargain purchase, which occurs when the fair value of net assets acquired exceeds the consideration transferred plus any non-controlling interest in the acquiree, to be recognized as a gain; and
§      The nature and financial effects of the business combination to be disclosed.

FAS 141R also amends or eliminates various other authoritative literature.

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 provisions of FAS 141R are effective for fiscal years beginning on or after December 15, 2008 for all business combinations occurring on or after that date. As such, this standard will impact any Company acquisitions that occur on or after January 1, 2009. Also, the Company will consider transition costs related to any acquisitions that may occur prior to January 1, 2009.

Equity Method Investment Accounting

In November 2008, the EITF reached consensus on EITF 08-6, “Equity Method Investment Accounting Considerations” (“EITF 08-6”), which requires, among other provisions, that:

§      Equity method investments be initially measured at cost;
§      Contingent consideration only be included in the initial measurement;
§      An investor recognize its share of any impairment charge recorded by the equity investee; and
§      An investor account for a share issuance by an equity investee as if the investor had sold a proportionate share of its investment;

The provisions of EITF 08-6 are effective in fiscal years beginning on or after December 15, 2008, and interim periods within those fiscal years. As such, this standard will impact Company acquisitions or changes in ownership with regards to equity investments that occur on or after January 1, 2009. The Company is currently in the process of determining the impact of the other-than-temporary impairment provisions.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”) 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. For 2007, the Company reclassified $250.0 from operating cash flows to financing cash flows in order to properly reflect all cash flows associated with the Company’s guaranteed investment contracts and associated facultative reinsurance.

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.

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)

Investments

All of the Company’s fixed maturities and equity securities are currently designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in Shareholder’s equity, after adjustment for related changes in DAC, 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 fair value has been less than amortized cost, the issuer’s financial condition and near-term prospects, future economic conditions and market forecasts, and the Company’s intent and ability to retain the investment for a period of time sufficient to allow for recovery in fair 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 the EITF 99-20. Under EITF 99-20, a further 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 recorded in Net realized capital gains (losses).

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

The fair values for the actively traded marketable fixed maturities are determined based upon the quoted market prices or dealer quotes. The fair values for marketable bonds without an active market are obtained through several commercial pricing services, which provide the estimated fair values. These services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, broker-dealer quotes, credit quality, issuer spreads, bids, offers and other reference data. Valuations obtained from third party commercial pricing services are non-binding and are validated monthly through comparisons to internal pricing models, back testing to recent trades, and monitoring of trading volumes.

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)

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 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.

The fair values for certain collateralized mortgage obligations (“CMO-Bs”) are determined by taking the average of broker quotes when more than one broker quote is provided. A few of the CMO-Bs are priced by the originating broker due to the complexity and unique characteristics of the asset.

The fair values for actively traded equity securities are based on quoted market prices.

Mortgage loans on real estate are reported at amortized cost, less impairment write-downs. 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 write-down recorded in Net realized capital gains (losses).

The fair value of policy loans is equal to the carrying, or cash surrender, value of the loans. Policy loans are fully collateralized by the account value of the associated insurance contracts.

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 is based on quoted market prices.

Derivative instruments are reported at fair value primarily using the Company’s derivative accounting system. The system uses key financial data, such as yield curves, exchange rates, Standard & Poor’s (“S&P”) 500 Index prices, and London Inter Bank Offered Rates (“LIBOR”), which are obtained from third party sources and uploaded into the system. For those derivatives that are unable to be valued by the accounting system, the Company utilizes values established by third party brokers.

The Company records liabilities, which can be either positive or negative, for annuity contracts containing guaranteed riders for guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum withdrawal benefits (“GMWB”) without life contingencies in accordance with FAS 133. The guarantee is treated as an embedded derivative and is required to be reported separately from the host variable annuity contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts.

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)

The cash flow estimates are produced by using stochastic techniques under a variety of market return scenarios and other best estimate assumptions.

The Company also records for its fixed indexed annuities (“FIA”) contracts an embedded derivative liability for interest payments to contractholders above the minimum guaranteed interest rate, in accordance with FAS 133. The guarantee is treated as an embedded derivative and is required to be reported separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by best estimate assumptions.

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 carrying value of the securities pledged in dollar rolls and repurchase agreement transactions is included in Securities pledged on the Balance Sheets. The repurchase obligation related to dollar rolls and repurchase agreements is included in Borrowed money on the Balance Sheets.

The Company also enters into reverse repurchase agreements. These transactions involve a purchase of securities and an agreement to sell substantially the same securities as those purchased. Company policies require a minimum of 102% of the fair value of securities pledged under reverse repurchase agreements to be pledged as collateral. Reverse repurchase agreements are included in Cash and cash equivalents on the Balance Sheets.

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 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.

Derivatives

The Company’s use of derivatives is limited mainly to hedging purposes to reduce the Company’s exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, and market risk. Generally, derivatives are not accounted for using hedge accounting treatment under FAS 133, as the Company has not historically sought hedge accounting treatment.

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)

The Company enters into interest rate, equity market, credit default, and currency contracts, including swaps, caps, floors, options and futures, to reduce and manage risks associated with changes in value, yield, price, cash flow, or exchange rates of assets or liabilities held or intended to be held, or to assume or reduce credit exposure associated with a referenced asset, index, or pool. The Company also utilizes options and futures on equity indices to reduce and manage risks associated with its annuity products. Open derivative contracts are reported as either Other investments or Other liabilities, as appropriate, on the Balance Sheets. Changes in the fair value of such derivatives are recorded in Net realized capital gains (losses) in the Statements of Operations.

The Company also has investments in certain fixed maturity instruments, and has issued certain retail annuity products, that contain embedded derivatives whose market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity markets, or credit ratings/spreads.

Embedded derivatives within fixed maturity instruments are included in Fixed maturities, available-for-sale, on the Balance Sheets, and changes in fair value are recorded in Net realized capital gains (losses) in the Statements of Operations.

Embedded derivatives within retail annuity products are included in Future policy benefits and claims reserves on the Balance Sheets, and changes in the fair value are recorded in Interest credited and other benefits to contractowners in the Statements of Operations.

Deferred Policy Acquisition Costs and Value of Business Acquired

General

DAC represents 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.

VOBA represents the outstanding value of in force business capitalized in purchase accounting when the Company was acquired and is subject to amortization. The value is based on the present value of estimated profits embedded in the Company’s contracts.

FAS 97 applies to universal life and investment-type products, such as fixed and variable deferred annuities. Under FAS 97, DAC and VOBA are amortized, with interest, over the life of the related contracts in relation to the present value of estimated future gross profits from investment, mortality, and expense margins, plus surrender charges. DAC related to GICs, however, is amortized on a straight-line basis over the life of the contract.

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)

Internal Replacements

Contractowners may periodically exchange one contract for another, or make modifications to an existing contract. Beginning January 1, 2007, these transactions are identified as internal replacements and are accounted for in accordance with SOP 05-1.

Internal replacements that are determined to result in substantially unchanged contracts are accounted for as continuations of the replaced contracts. Any costs associated with the issuance of the new contracts are considered maintenance costs and expensed as incurred. Unamortized DAC and VOBA related to the replaced contracts continue to be deferred and amortized in connection with the new contracts. For deferred annuities, the estimated future gross profits of the new contracts are treated as revisions to the estimated future gross profits of the replaced contracts in the determination of amortization.

Internal replacements that are determined to result in contracts that are substantially changed are accounted for as extinguishments of the replaced contracts, and any unamortized DAC and VOBA related to the replaced contracts are written off to Net amortization of deferred policy acquisition costs and value of business acquired in the Statements of Operations.

Unlocking

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 estimated future hedging and guaranteed benefit costs, 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 quarterly and annual analyses of DAC and VOBA for the annuity and life businesses, respectively. The DAC and VOBA balances are evaluated for recoverability.

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 unlocking adjustment is recognized as a component of current period amortization. In general, sustained increases in investment, mortality, and expense margins, and thus estimated future profits, lower the rate of amortization. Sustained decreases in investment, mortality, and expense margins, and thus estimated future profits, however, increase the rate of amortization.

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)

Reserves

Future policy benefits and claims reserves include reserves for deferred annuities and immediate annuities with and without life contingent payouts, universal and traditional life insurance contracts, and GICs. Generally, reserves are calculated using mortality and withdrawal rate assumptions based on relevant Company experience and are periodically reviewed against both industry standards and experience.

Reserves for deferred annuity investment contracts and immediate annuities without life contingent payouts are equal to cumulative deposits, less charges and withdrawals, plus credited interest thereon. Deferred annuity crediting rates and reserve interest rates varied by product up to 10.0% for 2008 and 2007, and 7.8% for 2006.

Reserves for individual 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 annuity plan type, year of issue, and policy duration. For 2008, 2007, and 2006, immediate annuity reserve interest discount rates varied up to 8.0%.

Reserves for FIAs are computed in accordance with FAS 97, FAS 133, and FAS 157. Accordingly, the aggregate initial liability is equal to the deposit received, plus a bonus, if applicable, and is split into a host component and an embedded derivative component. Thereafter, the host liability accumulates at a set interest rate, and the embedded derivative liability is recognized at fair value, with the change in fair value recorded in the Statements of Operations.

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.

Under Statement of Position 03-1, “Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts for Separate Accounts” (“SOP 03-1”), the Company calculates additional liabilities (“SOP 03-1 reserves”) for certain variable annuity guaranteed benefits and for universal life products with certain patterns of cost of insurance charges and certain other fees. The SOP 03-1 reserve recognized for such products is in addition to the liability previously held and recognizes the portion of contract assessments received in early years used to compensate the insurer for services provided in later years.

The Company calculates a benefit ratio for each block of business subject to SOP 03-1, and calculates an SOP 03-1 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 03-1 reserve is accumulated at interest rates using rates consistent with the DAC model 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-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)

GMABs and GMWBs without life contingent payouts are considered to be derivatives under FAS 133 and FAS 157. The additional reserves for these guarantees are recognized at fair value through the Statements of Operations.

Reserves for GICs are calculated using the 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.

Sales Inducements

Sales inducements represent benefits paid to contractowners for a specified period 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. 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 contractowner funds for the cost of insurance, surrender, expenses, and other fees are recorded as revenue as charges are assessed. 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.

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, but are recorded directly to Future policy benefits and claims reserves on the Balance Sheets.

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 or its affiliates.

Separate account assets supporting variable options under variable annuity 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 that are managed by the Company or its affiliates, or in other selected mutual funds not managed by the Company or its affiliates.

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)

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 (losses) of the separate accounts, however, are not reflected in the Statements of Operations (with the exception of realized and unrealized capital gains (losses) on the assets supporting the guaranteed interest option). 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 separate presentation 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, 2008 and 2007, unrealized capital (losses) gains of $(249.2) and $21.1, respectively, after taxes, on assets supporting a guaranteed interest option are reflected in Shareholder’s equity.

Reinsurance

The Company utilizes reinsurance agreements to reduce its exposure to large losses in most 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 the 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 2.0% of the Company’s ordinary life insurance in force and 21.9% of life insurance 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 $13.7, $14.8, and $15.4, were incurred during the years ended December 31, 2008, 2007, and 2006, 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-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)

2. Investments

Fixed Maturities and Equity Securities

Fixed maturities and equity securities, available-for-sale, were as follows as of December 31, 2008.

    Gross  Gross   
    Unrealized  Unrealized   
  Amortized  Capital  Capital                 Fair 
                 Cost  Gains  Losses               Value 
Fixed maturities:         
     U.S. Treasuries  $ 1,109.3  $ 74.2  $ 0.3  $ 1,183.2 
     U.S. government agencies and authorities  267.3  20.8  0.8  287.3 
     State, municipalities, and political         
               subdivisions  48.2  0.3  9.1  39.4 
     U.S. corporate securities:         
             Public utilities  1,452.2  5.6  133.1  1,324.7 
             Other corporate securities  5,570.9  68.5  634.1  5,005.3 
     Total U.S. corporate securities  7,023.1  74.1  767.2  6,330.0 
 
     Foreign securities(1):         
             Government  426.7  3.3  65.4  364.6 
             Other  3,145.5  11.4  411.0  2,745.9 
     Total foreign securities  3,572.2  14.7  476.4  3,110.5 
 
     Residential mortgage-backed securities  4,264.0  122.4  803.0  3,583.4 
     Commercial mortgage-backed securities  3,585.9  -  1,028.0  2,557.9 
     Other asset-backed securities  1,500.2  9.2  464.9  1,044.5 
 
     Total fixed maturities, including         
             securities pledged  21,370.2  315.7  3,549.7  18,136.2 
     Less: securities pledged  976.7  46.4  29.9  993.2 
Total fixed maturities  20,393.5  269.3  3,519.8  17,143.0 
Equity securities  257.6  0.3  4.0  253.9 
Total investments, available-for-sale  $ 20,651.1  $ 269.6  $ 3,523.8  $ 17,396.9 

  (1) Primarily U.S. dollar denominated.

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)

Fixed maturities and equity securities, available-for-sale, were as follows as of December 31, 2007.

    Gross  Gross   
    Unrealized  Unrealized   
  Amortized  Capital  Capital                 Fair 
                 Cost  Gains  Losses               Value 
Fixed maturities:         
     U.S. Treasuries  $ 18.4  $ 1.0  $ -  $ 19.4 
     U.S. government agencies and authorities  86.1  1.0  0.3  86.8 
     State, municipalities, and political         
             subdivisions  49.7  -  2.5  47.2 
 
     U.S. corporate securities:         
             Public utilities  1,417.5  22.8  13.4  1,426.9 
             Other corporate securities  6,742.7  81.1  67.0  6,756.8 
     Total U.S. corporate securities  8,160.2  103.9  80.4  8,183.7 
 
     Foreign securities(1):         
             Government  525.2  14.9  7.1  533.0 
             Other  3,280.6  40.5  59.4  3,261.7 
     Total foreign securities  3,805.8  55.4  66.5  3,794.7 
 
     Residential mortgage-backed securities  4,988.4  53.3  85.8  4,955.9 
     Commercial mortgage-backed securities  3,842.2  37.6  36.4  3,843.4 
     Other asset-backed securities  1,947.5  5.7  108.3  1,844.9 
 
     Total fixed maturities, including         
             securities pledged  22,898.3  257.9  380.2  22,776.0 
     Less: securities pledged  953.3  6.1  16.8  942.6 
Total fixed maturities  21,945.0  251.8  363.4  21,833.4 
Equity securities  216.6  2.8  8.3  211.1 
Total investments, available-for-sale  $ 22,161.6  $ 254.6  $ 371.7  $ 22,044.5 

(1) Primarily U.S. dollar denominated.

At December 31, 2008 and 2007, net unrealized loss was $3,237.7 and $127.8, respectively, on total fixed maturities, including securities pledged to creditors, and equity securities.

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, 2008, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called, or prepaid.

  Amortized  Fair 
  Cost  Value 
Due to mature:     
     One year or less  $ 463.4  $ 458.5 
     After one year through five years  5,534.1  5,120.1 
     After five years through ten years  3,347.5  2,993.1 
     After ten years  2,675.1  2,378.7 
     Mortgage-backed securities  7,849.9  6,141.3 
     Other asset-backed securities  1,500.2  1,044.5 
Less: securities pledged  976.7  993.2 
Fixed maturities, excluding securities pledged  $ 20,393.5  $ 17,143.0 

The Company had investments with five issuers, other than obligations of the U.S. government and government agencies, with a carrying value in excess of 10.0% of the Company’s Shareholder’s equity at December 31, 2008. At December 31, 2007, the Company did not have any investments in a single issuer, other than obligations of the U.S. government and government agencies, with a carrying value in excess of 10.0% of the Company’s Shareholder’s equity.

At December 31, 2008 and 2007, fixed maturities with fair values of $22.3 billion and $11.2, respectively, were on deposit as required by regulatory authorities. The increase was due to unrestricted deposits of securities made to the State of Iowa.

The Company invests in various categories of collateralized mortgage obligations (“CMOs”) that are subject to different degrees of risk from changes in interest rates and, for CMOs that are not agency-backed, defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to dramatic decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. At December 31, 2008 and 2007, approximately 12.1% and 7.5%, respectively, of the Company’s CMO holdings were invested in those types of CMOs which are subject to more prepayment and extension risk than traditional CMOs, such as interest-only or principal-only strips.

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, 2008 and 2007, the Company had $2,995.2 and $2,898.7, respectively, in non-putable funding agreements, including accrued interest, issued to the FHLB. At December 31, 2008 and 2007, assets with a market value of approximately $3,341.1 and $3,270.1, respectively, collateralized the funding agreements to the FHLB. Assets pledged to the FHLB are included in Fixed maturities, available-for-sale, in 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)

In conjunction with the January 2009 agreement with the Dutch State regarding the transfer of 80% of the Company's Alt-A residential mortgage backed securities (“Alt-A RMBS”), which included $375.1 in Alt-A RMBS pledged to the FHLB, the Company substituted the Alt-A RMBS assets pledged with other fixed maturities. By February 17, 2009, the Company recalled these Alt-A securities in order to implement the transaction with the Dutch State and reduced the funding agreements pro rata.

Transfer of Alt-A RMBS Participation Interest

On January 26, 2009, ING announced it reached an agreement, for itself and on behalf of certain ING affiliates including the Company, with the Dutch State on an Illiquid Assets Backup Facility (the “Back-up Facility”) covering 80% of ING’s Alt-A residential mortgage-backed securities (“Alt-A RMBS”). Under the terms of the Back-up Facility, a full credit risk transfer to the Dutch State will be realized on 80% of ING’s Alt-A RMBS owned by ING Bank, FSB and ING affiliates within ING Insurance Americas with a book value of $36.0 billion portfolio, including book value of $1.4 billion of the Alt-A RMBS portfolio owned by the Company (with respect to the Company’s portfolio, the “Designated Securities Portfolio”) (the “ING-Dutch State Transaction”). As a result of the risk transfer, the Dutch State will participate in 80% of any results of the ING Alt-A RMBS portfolio. The risk transfer to the Dutch State will take place at a discount of approximately 10% of par value. In addition, under the Back-up Facility, other fees will be paid both by the Company and the Dutch State. Each ING company participating in the ING-Dutch State Transaction, including the Company will remain the legal owner of 100% of its Alt-A RMBS portfolio and will remain exposed to 20% of any results on the portfolio. Subject to documentation and regulatory approvals, the ING-Dutch State Transaction is expected to close by the end of March 2009, with the affiliate participation conveyance and risk transfer to the Dutch State described in the succeeding paragraph to take effect as of January 26, 2009.

In order to implement that portion of the ING-Dutch State Transaction related to the Company’s Designated Securities Portfolio, the Company will enter into a participation agreement with its affiliates, ING Support Holding B.V. (“ING Support Holding”) and ING pursuant to which the Company will convey to ING Support Holding an 80% participation interest in its Designated Securities Portfolio and pay a periodic transaction fee, and will receive, as consideration for the participation, an assignment by ING Support Holding of its right to receive payments from the Dutch State under the Illiquid Assets Back-Up Facility related to the Company’s Designated Securities Portfolio among, ING, ING Support Holding and the Dutch State (the “Company Back-Up Facility”). Under the Company Back-Up Facility, the Dutch State will be obligated to pay certain periodic fees and make certain periodic payments with respect to the Company’s Designated Securities Portfolio, and ING Support Holding will be obligated to pay a periodic guarantee fee and make periodic payments to the Dutch State equal to the distributions it receives with respect to the 80% participation interest in the Company’s Designated Securities Portfolio.

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)

In a second transaction, known as the Step 1 Cash Transfer, a portion of the Company’s Alt-A RMBS which has a book value of $27.9 will be sold for cash to an affiliate, Lion II Custom Investments LLC (“Lion II”). Immediately thereafter, Lion II will sell to ING Direct Bancorp the purchased securities (the “Step 2 Cash Transfer”). Contemporaneous with the Step 2 Cash Transfer, ING Direct Bancorp will include such purchased securities as part of its Alt-A RMBS portfolio sale to the Dutch State. Subject to documentation and regulatory approval, the Step 1 Cash Transfer is expected to close by the end of March 2009 contemporaneous with the closing of the ING-Dutch State Transaction.

Since the Company had the intent to sell a portion of its Alt-A RMBS through the 80% participation interest in its Designated Securities Portfolio or as part of the Step 1 Cash Transfer as of December 31, 2008, the Company recognized $56.9 in other-than-temporary impairments with respect to the 80% participation interest in its Designated Securities Portfolio that it expects to convey as part of the ING-Dutch State Transaction and the Step 1 Cash Transfer. The Company expects to reduce the unrealized loss balance in Accumulated other comprehensive loss included in Shareholder’s equity by approximately $400.0 and recognize a gain in the estimated range of $110.0 to $130.0 upon the closing of the ING-Dutch State Transaction and the Step 1 Cash Transfer.

Repurchase Agreements

The Company engages in dollar repurchase agreements (“dollar rolls”) and repurchase agreements to increase its 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. At December 31, 2008 and 2007, the carrying value of the securities pledged in dollar rolls and repurchase agreement transactions was $562.8 and $745.5, respectively. The carrying value of the securities pledged in dollar rolls and repurchase agreement transactions is included in Securities pledged on the Balance Sheets. The repurchase obligation related to dollar rolls and repurchase agreements totaled $482.2 and $711.9 at December 31, 2008 and 2007, respectively. The repurchase obligation related to dollar rolls and repurchase agreements is included in Borrowed money on the Balance Sheets.

The Company also enters into reverse repurchase agreements. At December 31, 2008 and 2007, the Company did not have any securities in reverse repurchase agreements.

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 immaterial at December 31, 2008 and 2007. The Company believes the counterparties to the dollar rolls, repurchase, and reverse repurchase agreements are financially responsible and that the counterparty risk is minimal.

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)

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 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. At December 31, 2008 and 2007, the fair value of loaned securities was $125.4 and $123.1, respectively.

Unrealized Capital Losses

Unrealized capital losses in fixed maturities at December 31, 2008 and 2007, were primarily related to the effects of interest rate movement or changes in credit spreads on mortgage and other asset-backed securities. Mortgage and other asset-backed securities include U.S. government-backed securities, principal protected securities, and structured securities, which did not have an adverse change in cash flows. The following table summarizes the unrealized capital losses by duration and reason, along with the fair value of fixed maturities, including securities pledged to creditors, in unrealized capital loss positions at December 31, 2008 and 2007.

  Less than  More than     
  Six Months  Six Months and  More than  Total 
  Below  less than Twelve  Twelve Months  Unrealized 
  Amortized  Months Below  Below  Capital 
2008  Cost  Amortized Cost  Amortized Cost  Losses 
Interest rate or spread widening  $ 198.7  $ 538.4  $ 516.7  $ 1,253.8 
Mortgage and other asset-backed securities  562.6  375.6  1,357.7  2,295.9 
Total unrealized capital losses  $ 761.3  $ 914.0  $ 1,874.4  $ 3,549.7 
Fair value  $ 4,350.9  $ 4,522.0  $ 4,551.9  $ 13,424.8 
 
2007         
Interest rate or spread widening  $ 37.8  $ 49.2  $ 62.7  $ 149.7 
Mortgage and other asset-backed securities  73.3  134.8  22.4  230.5 
Total unrealized capital losses  $ 111.1  $ 184.0  $ 85.1  $ 380.2 
Fair value  $ 5,322.0  $ 3,248.4  $ 3,300.6  $ 11,871.0 

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)

Of the unrealized capital losses aged more than twelve months, the average market value of the related fixed maturities is 75.7% of the average book value. In addition, this category includes 1,499 securities, which have an average quality rating of AA-. No other-than-temporary impairment loss was considered necessary for these fixed maturities as of December 31, 2008. The fair value of the Company’s fixed maturities declined $483.4, before tax and DAC, from December 31, 2008 through February 28, 2009, due to further widening of credit spreads. This decline in fair value includes $258.3 related to the Company’s investments in commercial mortgage-backed securities.

Other-Than-Temporary Impairments

The following table identifies the Company’s other-than-temporary impairments by type for the years ended December 31, 2008, 2007, and 2006.

    2008      2007      2006   
      No. of      No. of      No. of 
  Impairment    Securities  Impairment    Securities  Impairment    Securities 
U.S. Treasuries  $ -    -  $ -  *  1  $ 0.1    1 
U.S. Corporate  289.1    230  81.0    173  15.8    63 
Foreign  229.4    108  25.7    74  3.5    13 
Residential mortgage-backed  289.8    98  3.0    24  12.7    68 
Commercial mortgage-backed  4.8    1  -    -  -    - 
Other asset-backed  182.5    93  43.3    91  1.2    2 
Equity  32.0    12  -    -  -    - 
Limited partnerships  0.5    1  0.3    1  0.5    2 
Total  $ 1,028.1    543  $ 153.3    364  $ 33.8    149 

*Less than $0.1.

The above schedule includes $369.7, $31.0, and $11.5, in other-than-temporary write-downs for the years ended December 31, 2008, 2007, and 2006, respectively, related to the analysis of credit risk and the possibility of significant prepayment risk. The remaining $658.4, $122.3, and $22.3, in write-downs for the years ended December 31, 2008, 2007, and 2006, respectively, are related to investments that the Company does not have the intent to retain for a period of time sufficient to allow for recovery in fair value.

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 following table summarizes these write-downs by type for the years ended December 31, 2008, 2007, and 2006.

    2008      2007      2006   
      No. of      No. of      No. of 
  Impairment    Securities  Impairment    Securities  Impairment    Securities 
U.S. Treasuries  $ -    -  $ -  *  1  $ 0.1    1 
U.S. Corporate  199.8    178  70.6    161  15.8    63 
Foreign  146.5    87  21.4    68  3.5    13 
Residential mortgage-backed  142.9    40  1.0    5  1.7    4 
Other asset-backed  169.2    58  29.3    84  1.2    2 
Total  $ 658.4    363  $ 122.3    319  $ 22.3    83 

* Less than $0.1.

The remaining fair value of fixed maturities with other-than-temporary impairments at December 31, 2008, 2007, and 2006, was $2,268.4, $2,353.8, and $437.4, respectively.

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities or cost for equity securities. In certain situations new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security.

Net Investment Income

Sources of Net investment income were as follows for the years ended December 31, 2008, 2007, and 2006.

  2008  2007  2006 
Fixed maturities, available-for-sale  $ 1,361.0  $ 1,176.1  $ 1,009.7 
Equity securities, available-for-sale  (0.2)  3.3  1.9 
Mortgage loans on real estate  223.6  233.1  225.3 
Policy loans  8.8  9.0  9.1 
Short-term investments and cash equivalents  4.5  6.7  5.5 
Other                             (53.3)  35.1  13.9 
Gross investment income  1,544.4  1,463.3  1,265.4 
Less: investment expenses  106.4  116.9  109.0 
Net investment income  $ 1,438.0  $ 1,346.4  $ 1,156.4 

At December 31, 2008 and 2007, the Company had $21.2 and $60.3, respectively, of non-income producing investments in fixed maturities.

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)

Net Realized Capital Gains (Losses)

Net realized capital gains (losses) are comprised of the difference between the amortized cost of investments and proceeds from sale, and redemption, as well as losses incurred due to the other-than-temporary impairment of investments and changes in fair value of derivatives. The cost of the investment on disposal is determined based on specific identification of securities using the first-in, first-out method. Net realized capital gains (losses) on investments were as follows for the years ended December 31, 2008, 2007, and 2006.

  2008  2007                       2006   
Fixed maturities, available-for-sale  $ (975.9)  $ (100.3)  $ (43.8) 
Equity securities, available-for-sale  (52.9)  0.5    0.9 
Derivatives  (447.5)  (291.0)    (48.2) 
Other  (5.4)  (0.4)    0.7 
Net realized capital losses  $ (1,481.7)  $ (391.2)  $ (90.4) 
After-tax net realized capital losses  $ (963.1)  $ (254.3)  $ (58.8) 

Net realized capital losses increased for the year ended December 31, 2008, primarily due to higher losses on fixed maturities as a result of other-than-temporary impairments driven by the widening of credit spreads. In addition, derivative realized losses increased for the year ended December 31, 2008, driven by interest rate swaps due to lower LIBOR rates and by losses on call options due to the drop in equity markets. These losses were partially offset by gains on futures, which were also a result of poor equity market performance.

Proceeds from the sale of fixed maturities and equity securities, available-for-sale, and the related gross realized gains and losses were as follows for the years ended December 31, 2008, 2007, and 2006.

  2008  2007  2006 
Proceeds on sales  $ 9,271.9  $ 5,859.3  $ 5,543.1 
Gross gains  100.2  41.1  64.5 
Gross losses  164.9  57.0  78.0 

3. Financial Instruments

Fair Value Measurements

FAS 157 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements.

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)

Fair Value Hierarchy

The Company has categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded at fair value on the Balance Sheets are categorized as follows:

§      Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market.
§      Level 2 - Quoted prices in markets that are not active or inputs that are observable either
  directly      or indirectly for substantially the full term of the asset or liability.
  Level      2 inputs include the following:
  a)      Quoted prices for similar assets or liabilities in active markets;
  b)      Quoted prices for identical or similar assets or liabilities in non-active markets;
  c)      Inputs other than quoted market prices that are observable; and
  d)      Inputs that are derived principally from or corroborated by observable market data through correlation or other means.
§      Level 3 - Prices or valuation techniques that require inputs that are both unobservable and
  significant      to the overall fair value measurement. These valuations, whether derived
  internally      or obtained from a third party, use critical assumptions that are not widely
  available      to estimate market participant expectations in valuing the asset or liability.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2008.

  Level 1  Level 2  Level 3(1)  Total 
Assets:         
     Fixed maturities, available-for-sale,         
             including securities pledged  $ 1,183.3  $ 14,363.3  $ 2,589.6  $ 18,136.2 
     Equity securities, available-for-sale  253.9  -  -  253.9 
     Other investments (primarily derivatives)  -  164.1  176.2  340.3 
     Cash and cash equivalents, short-term         
             investments, and short-term investments         
             under securities loan agreement  852.9  -  -  852.9 
     Assets held in separate accounts  34,090.8  -  -  34,090.8 
Total  $ 36,380.9  $ 14,527.4  $ 2,765.8  $ 53,674.1 

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)

  Level 1  Level 2  Level 3(1)  Total 
Liabilities:         
Investment contract guarantees:         
               Fixed Indexed Annuities  -  -  638.9  638.9 
               Guaranteed Minimum Withdrawal and         
                       Accumulation Benefits  -  -  153.0  153.0 
               Other liabilities (primarily derivatives)  -  614.0  166.2  780.2 
Total  $ -  $ 614.0  $ 958.1  $ 1,572.1 

(1)      Level 3 net assets and liabilities accounted for 3.5% of total net assets and liabilities measured at fair value on a recurring basis. Excluding separate accounts assets for which the policyholder bears the risk, the Level 3 net assets and liabilities in relation to total net assets and liabilities measured at fair value on a recurring basis totaled 10.0%.

Valuation of Financial Assets and Liabilities

The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of “exit price” and the fair value hierarchy as prescribed in FAS 157. Valuations are obtained from third party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from the brokers are non-binding. The valuations are reviewed and validated monthly through comparisons to internal pricing models, back testing to recent trades, and monitoring of trading volumes.

All valuation methods and assumptions are validated at least quarterly to ensure the accuracy and relevance of the fair values. There were no material changes to the valuation methods or assumptions used to determine fair values.

The following valuation methods and assumptions were used by the Company in estimating the fair value of the following financial instruments:

Fixed maturities, available-for-sale: The fair values for the actively traded marketable bonds are determined based upon the quoted market prices or dealer quotes and are classified as Level 1 assets. The fair values for marketable bonds without an active market, excluding subprime and Alt-A mortgage-backed securities, are obtained through several commercial pricing services, which provide the estimated fair values, and are classified as Level 2 assets. These services incorporate a variety of market observable information in their valuation techniques, including benchmark yields, broker-dealer quotes, credit quality, issuer spreads, bids, offers and other reference data. Valuations obtained from third party commercial pricing services are non-binding and are validated monthly through comparisons to internal pricing models, back testing to recent trades, and monitoring of trading volumes.

Fair values of privately placed bonds are determined using a matrix-based pricing model and are classified as Level 2 assets. 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 Company’s

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)

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.

The fair values for certain collateralized mortgage obligations (“CMO-Bs”) are determined by taking the average of broker quotes when more than one broker quote is provided. A few of the CMO-Bs are priced by the originating broker due to the complexity and unique characteristics of the asset. Due to the lack of corroborating evidence to support a higher level, these bonds are classified as Level 3 assets.

Trading activity for the Company’s Residential Mortgage-backed Securities (“RMBS”), particularly subprime and Alt-A mortgage-backed securities, has been declining during 2008 as a result of the dislocation of the credit markets. During 2008, the Company continued to obtain pricing information from commercial pricing services and brokers. However, the pricing for subprime and Alt-A mortgage-backed securities did not represent regularly occurring market transactions since the trading activity declined significantly in the second half of 2008. As a result, the Company concluded in the second half of 2008 that the market for subprime and Alt-A mortgage-backed securities was inactive. The Company did not change its valuation procedures, which are consistent with those used for Level 2 marketable bonds without an active market, as a result of determining that the market was inactive. However, the Company determined that the classification within the valuation hierarchy should be transferred to Level 3 due to market inactivity.

At December 31, 2008, the fixed maturities valued using unadjusted broker quotes totaled $10,482.3.

Equity securities, available-for-sale: Fair values of these securities are based upon quoted market price and are classified as Level 1 assets.

Cash and cash equivalents, Short-term investments, and Short-term investments under securities loan agreement: The carrying amounts for cash reflect the assets’ fair values. The fair values for cash equivalents and short-term investments are determined based on quoted market prices. These assets are classified as Level 1.

Assets held in separate accounts: Assets held in separate accounts are reported at the quoted fair values of the underlying investments in the separate accounts. Mutual funds, short-term investments and cash are based upon a quoted market price and are classified as Level 1.

Other financial instruments reported as assets and liabilities: The carrying amounts for these financial instruments (primarily derivatives) reflect the fair value of the assets and liabilities. Derivatives are carried at fair value (on the Balance Sheets), which is determined using the Company’s derivative accounting system in conjunction with observable key financial data from third party sources or through values established by third party brokers. Counterparty credit risk is considered and incorporated in the Company’s valuation process through counterparty credit rating requirements and monitoring of overall exposure. It is the Company’s policy to deal only with investment grade counterparties with a credit rating of A- or better. The Company obtains a key input into the valuation model for puts, calls, and futures from one

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)

third party broker. Because the input is not received from multiple brokers, these fair values are not deemed to be calculated based on market observable inputs, and, therefore, these instruments are classified as Level 3. However, all other derivative instruments are valued based on market observable inputs and are classified as Level 2.

Investment contract guarantees: The Company records liabilities, which can be either positive or negative, for annuity contracts containing guaranteed riders for GMABs and GMWBs without life contingencies in accordance with FAS 133. The guarantee is treated as an embedded derivative and is required to be reported separately from the host variable annuity contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by using stochastic techniques under a variety of market return scenarios and other best estimate assumptions.

The Company also records for its FIA contracts an embedded derivative liability for interest payments to contractholders above the minimum guaranteed interest rate, in accordance with FAS 133. The guarantee is treated as an embedded derivative and is required to be reported separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by best estimate assumptions.

Nonperformance risk for investment contract guarantees contains adjustments to the fair values of these contract liabilities related to the current credit standing of ING and the Company based on credit default swaps with similar term to maturity and priority of payment. The ING credit default swap spread is applied to the discount factors for FIAs and the risk-free rates for GMABs and GMWBs in the Company’s valuation models in order to incorporate credit risk into the fair values of these investment contract guarantees. As of December 31, 2008, the credit ratings of ING and the Company increased by approximately 185 basis points during the year, which resulted in substantial changes in the valuation of the reserves for all investment contract guarantees.

The following disclosures are made in accordance with the requirements of FAS No. 107, “Disclosures about Fair Value of Financial Instruments” (“FAS 107”). FAS 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 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.

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 following valuation methods and assumptions were used by the Company in estimating the fair value of the following financial instruments for purposes of FAS 107 disclosures:

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.

Policy loans: The fair value of policy loans is equal to the carrying, or cash surrender, value of the loans. Policy loans are fully collateralized by the account value of the associated insurance contracts.

Deposits from affiliates: Fair value is estimated based on the fair value of the liabilities for the account values of the underlying contracts, plus the fair value of the unamortized ceding allowance based on the present value of the projected release of the ceding allowance, discounted at risk-free rates, plus a credit spread.

Investment contract liabilities (included in Future policy benefits and claims reserves):

With a fixed maturity: Fair value is estimated by discounting cash flows, including associated expenses for maintaining the contracts, at rates which are market risk-free rates augmented by credit spreads on current Company debt or AA insurance company debt. The augmentation is present to account for non-performance risk. A margin for non-financial risks associated with the contracts is also included.

Without a fixed maturity: Fair value is estimated as the mean present value of stochastically modeled cash flows associated with the contract liabilities relevant to both the contractholder and to the Company. Here, the stochastic valuation scenario set is consistent with current market parameters, and discount is taken using stochastically evolving short risk-free rates in the scenarios augmented by credit spreads on current Company debt. The augmentation in the discount is present to account for non-performance risk. Margins for non-financial risks associated with the contract liabilities are also included.

Notes to affiliates: Estimated fair value of the Company’s notes to affiliates is based upon discounted future cash flows using a discount rate approximating the current market 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 carrying values and estimated fair values of certain of the Company’s financial instruments were as follows at December 31, 2008 and 2007.

    2008      2007   
  Carrying    Fair  Carrying    Fair 
               Value    Value               Value    Value 
Assets:             
     Fixed maturities, available-for-sale,             
             including securities pledged  $ 18,136.2  $ 18,136.2  $ 22,776.0  $ 22,776.0 
     Equity securities, available-for-sale  253.9    253.9  211.1    211.1 
     Mortgage loans on real estate  3,923.3    3,803.3  3,701.7    3,739.4 
     Policy loans  144.4    144.4  155.8    155.8 
     Cash, cash equivalents, Short-term             
             investments, and Short-term             
             investments under securities             
             loan agreement  852.9    852.9  520.9    520.9 
     Other investments  697.6    706.5  848.6    857.3 
     Deposits from affiliates  1,947.0    2,025.7  2,153.2    2,192.0 
     Assets held in separate accounts  34,090.8    34,090.8  44,477.8    44,477.8 
Liabilities:             
     Investment contract liabilities:             
             Deferred annuities  19,282.5    18,986.2  19,733.8    18,150.4 
             Guaranteed investment contracts             
                     and funding agreements  6,868.9    6,580.2  9,415.1    9,498.2 
             Supplementary contracts and             
immediate annuities  866.5    883.9  900.3    900.3 
             Derivatives  780.2    780.2  273.8    273.8 
     Notes to affiliates  435.0    407.6  435.0    420.6 

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 capital gains (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.

Level 3 Financial Instruments

The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by FAS 157). These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below, with particular attention addressed to

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)

changes in derivatives, FIAs, and GMWBs and GMABs due to their impacts on the Company’s results of operations.

The following table summarizes the changes in fair value of the Company’s Level 3 assets and liabilities for the year ended December 31, 2008.

  Fixed maturities,          Investment     
  available-for-sale        Contract Guarantees   
  including            GMWB/   
  securities pledged    Derivatives    FIA    GMAB   
Balance at January 1, 2008  $ 1,396.3    $ 298.2    $ (925.6)  $ (2.7)   
       Capital gains (losses):                 
               Net realized capital gains (losses)  (7.5)  (1)  (76.2)  (3)  328.4  (4)  (141.5)  (4) 
               Net unrealized capital                 
                       gains (losses)(2)  27.9    -    -    -   
Total net realized and unrealized                 
                       capital gains (losses)  20.4    (76.2)    328.4    (141.5)   
               Purchases, sales, issuances, and                 
                       settlements, net  (32.5)    (105.1)    (41.7)    (8.8)   
               Transfer in (out) of Level 3  1,205.4    (106.9)    -    -   
Balance at December 31, 2008  $ 2,589.6    $ 10.0    $ (638.9)  $ (153.0)   

(1)      This amount is included in Net realized capital gains (losses) on the Statements of Operations.
(2)      The amounts in this line are included in Accumulated other comprehensive income (loss) on the Balance Sheets.
(3)      This amount is included in Net realized capital gains (losses) on the Statements of Operations and contains unrealized gains (losses) on Level 3 derivatives held at December 31, 2008. All gains and losses on Level 3 assets are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately by security.
(4)      These amounts are included in Interest credited and other benefits to contractowners on the Statements of Operations. All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis.

For the year ended December 31, 2008, the decline in the fair values of the FIA reserves was partially offset by a decline in the value of Level 3 derivatives that hedge the FIA exposure and the increase in the reserves for GMWBs and GMABs. The gains on the FIA embedded derivatives and the losses on the GMWBs ad GMABs were primarily driven by unfavorable equity market performance and changes in interest rates during 2008. In addition, derivatives experienced losses related to unfavorable equity market performance, resulting in a decline in the fair values of these assets. For the year ended December 31, 2008, the net realized gains attributable to credit risk were $117.0. The net unrealized capital losses related to fixed maturities were driven by the widening of credit spreads.

During 2008, the Company determined that the classification within the valuation hierarchy related to the subprime and Alt-A mortgage-backed securities within the RMBS portfolio should be changed due to market inactivity. This change is presented as transfers into Level 3 in the table above and discussed in more detail in the previous disclosure regarding RMBS.

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)

  Derivative Financial Instruments

  Notional Amount  Fair Value   
  2008  2007  2008    2007 
Interest Rate Caps           
     Interest rate caps are used to manage the interest           
           rate risk in the Company’s fixed maturity portfolio.           
           Interest rate caps are purchased contracts that           
           provide the Company with an annuity in an           
           increasing interest rate environment.  122.0  50.0  $ 0.1  $ 0.1 
 
Interest Rate Swaps           
     Interest rate swaps are used to manage the interest           
           rate risk in the Company’s fixed maturity 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.  7,130.0  8,533.5  (434.0)    (138.2) 
 
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           
           U.S. dollar cash flows at regular interim periods,           
           typically quarterly or semi-annually.  287.3  288.3  (16.0)    (44.0) 
 
Credit Default Swaps           
     Credit default swaps are used to reduce the credit loss           
           exposure with respect to certain assets that the           
           Company owns, or to assume credit exposure on           
           certain assets that the Company does not own.           
           Payments are made to or received from the           
           counterparty at specified intervals and amounts           
           for the purchase or sale of credit protection. In the           
           event of a default on the underlying credit exposure,           
           the Company will either receive an additional           
           payment (purchased credit protection) or will be           
           required to make an additional payment (sold credit           
           protection) equal to the notional value of the swap contract.  477.0  488.9  (112.1)    (22.1) 

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)

  Notional Amount  Fair Value     
  2008  2007  2008    2007   
Forwards             
     Forwards are acquired to hedge the Company's             
           inverse portfolio against movements in interest             
           rates, particularly mortgage rates. On the             
           settlement date, the Company will either receive             
           a payment (interest rate drops on owned forwards             
           or interest rate rises on purchased forwards) or             
           will be required to make a payment (interest rate             
           rises on owned forwards or interest rate drops             
           on purchased forwards).  156.0  -  $ 1.9  $ -   
 
Swaptions             
     Swaptions are used to manage interest rate risk in             
           the Company’s collateralized mortgage obligations             
           portfolio. Swaptions are contracts that give the             
           Company the option to enter into an interest rate             
           swap at a specific future date.  1,667.5  302.5  3.4    -  ** 
 
Futures             
Futures contracts are used to hedge against a decrease             
           in certain equity indices. Such decrease may result             
           in a decrease in variable annuity account values,             
           which would increase the possibility of the Company             
           incurring an expense for guaranteed benefits in             
           excess of account values. A decrease in variable             
           annuity account values would also result in lower             
           fee income. A decrease in equity markets may also             
           negatively impact the Company's investment in             
           equity securities. The futures income would             
           serve to offset these effects. Futures contracts             
           are also used to hedge against an increase             
           in certain equity indices. Such increase may result             
           in increased payments to contract holders of fixed             
           indexed annuity contracts, and the futures income             
           would serve to offset this increased expense. The             
           underlying reserve liabilities are valued under             
           either SOP 03-1 or FAS 133 and FAS 157 (see             
           discussion under “Reserves” section) and the change             
           in reserve liability is recorded in Interest credited and             
           other benefits to contractowners. The gain or loss on             
           futures is recorded in Net realized capital gains (losses).  2,593.9  1,584.6  (35.2)    (6.4)   

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)

             Notional Amount  Fair Value   
     2008     2007  2008    2007 
Options           
           Call options are used to hedge against an increase           
           in the various equity indices. Such increase may           
           result in increased payments to contract holders           
           of fixed indexed annuity contracts, and the options           
           offset this increased expense. Put options are used           
           to hedge the liability associated with embedded           
           derivatives in certain variable annuity contracts.           
           Both the options and the embedded derivative           
           reserve are carried at fair value. The change in value           
           of the options are recorded in Net realized capital           
           gains (losses); the change in value of the embedded           
           derivative is recorded in Interest credited and           
           other benefits to contractowners.     3,744.2   6,666.0  $ 152.0  $ 303.5 
 
Embedded Derivatives           
The Company also has investments in certain fixed           
           maturity instruments, and has issued certain retail           
           annuity products, that contain embedded derivatives           
           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 rates, or           
           credit ratings/spreads.           
                                 Within securities  N/A*  N/A*  (96.3)    33.8 
Within retail annuity products  N/A*  N/A*  791.9    997.9 

  * N/A - not applicable.
**Less than $0.1.

Credit Default Swaps

The Company has entered into various credit default swaps to assume credit exposure to certain assets that the Company does not own. Credit default swaps involve a transfer of credit risk from one party to another in exchange for periodic payments. These instruments are typically written for a maturity period of five years and do not contain recourse provisions, which would enable the seller to recover from third parties. The Company’s collateral positions are tracked by the International Swaps and Derivatives Association, Inc. (“ISDA”). To the extent cash collateral was received, it was included in the Collateral held, including payables under securities loan agreement on the Balance Sheets and was reinvested in short-term investments. The source of non-cash collateral posted was investment grade bonds of the entity. Collateral held is used in accordance with the Credit Support Annex (“CSA”) to satisfy any obligations. In the event of a default on the underlying credit exposure, the Company will either receive an additional payment (purchased credit protection) or will be required to make an additional payment (sold credit protection) equal to the notional value of the swap contract. At December 31, 2008, the fair value of credit default swaps of $12.7 and $124.8 was included in Other investments and Other liabilities, respectively, on the Balance Sheets. At December 31,

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)

2007, the fair value of credit default swaps of $8.5 and $30.6 was included in Other investments and Other liabilities, respectively, on the Balance Sheets. As of December 2008, the maximum potential future exposure to the Company on the sale of credit protection under credit default swaps was $143.3.

Embedded Derivative in Credit-Linked Note

The Company owns a 3-year credit-linked note arrangement, whereby the Company agrees to reimburse the guaranteed party upon payment default of the referenced obligation. Upon such default, the Company will reimburse the guaranteed party for the loss under the reference obligation, and the Company receives that reference obligation in settlement. The Company can then seek recovery of any losses under the agreement by sale or collection of the received reference obligation. As of December 31, 2008, the maximum potential future exposure to the Company under the guarantee was $32.5.

Variable Interest Entities

The Company holds VIEs for investment purposes in the form of private placement securities, structured securities, securitization transactions, and limited partnerships. 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. Rather, the VIEs are accounted for using the cost or equity method of accounting. Investments in limited partnerships are included in Limited partnerships/corporations on the Balance Sheets.

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)

4. Deferred Policy Acquisition Costs and Value of Business Acquired

Activity within DAC was as follows for the years ended December 31, 2008, 2007, and 2006.

Balance at January 1, 2006  $ 2,255.4 
     Deferrals of commissions and expenses  681.9 
     Amortization:   
             Amortization  (421.7) 
             Interest accrued at 5% to 6%  138.1 
     Net amortization included in the Statements of Operations  (283.6) 
     Change in unrealized capital gains (losses) on available-for-sale securities  16.2 
Balance at December 31, 2006  2,669.9 
     Deferrals of commissions and expenses  729.1 
     Amortization:   
             Amortization  (592.0) 
             Interest accrued at 5% to 6%  162.2 
     Net amortization included in the Statements of Operations  (429.8) 
     Change in unrealized capital gains (losses) on available-for-sale securities  (56.0) 
     Implementation of SOP 05-1  (4.8) 
Balance at December 31, 2007  2,908.4 
     Deferrals of commissions and expenses  781.7 
     Amortization:   
             Amortization  (814.9) 
             Interest accrued at 4% to 5%  146.4 
     Net amortization included in the Statements of Operations  (668.5) 
     Change in unrealized capital gains (losses) on available-for-sale securities  1,098.2 
     Effect of variable annuity guaranteed living benefits reinsurance  85.7 
Balance at December 31, 2008  $ 4,205.5 

The estimated amount of DAC to be amortized, net of interest, is $491.9, $509.1, $491.9, $438.5, and $422.7, for the years 2009, 2010, 2011, 2012 and 2013, respectively. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results.

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)

Activity within VOBA was as follows for the years ended December 31, 2008, 2007, and 2006.

Balance at January 1, 2006  $ 122.1 
     Amortization:   
             Amortization  (15.0) 
             Interest accrued at 4% to 5%  5.6 
     Net amortization included in the Statements of Operations  (9.4) 
     Change in unrealized capital gains (losses) on available-for-sale securities  (2.6) 
Balance at December 31, 2006  110.1 
     Amortization:   
             Amortization  16.8 
             Interest accrued at 4% to 6%  4.9 
     Net amortization included in the Statements of Operations  21.7 
     Change in unrealized capital gains (losses) on available-for-sale securities  (3.1) 
Balance at December 31, 2007  128.7 
     Amortization:   
             Amortization  (18.7) 
             Interest accrued at 3% to 5%  6.7 
     Net amortization included in the Statements of Operations  (12.0) 
     Change in unrealized capital gains (losses) on available-for-sale securities  78.4 
Balance at December 31, 2008  $ 195.1 

The estimated amount of VOBA to be amortized, net of interest, is $11.7, $12.1, $12.6, $11.6, and $10.9, for the years 2009, 2010, 2011, 2012, and 2013, respectively. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results.

Analysis of DAC and VOBA - Annuity Products

The increase in Net amortization of DAC and VOBA in 2008 compared to 2007 was primarily due to unfavorable separate account performance during 2008 which caused a significant acceleration of variable annuity DAC amortization, as a result of lower projections of fee income. In addition, this unfavorable performance required the Company to adjust its future gross profit projections for variable annuity hedging costs and guaranteed benefit costs, which also increased amortization.

The increase in Net amortization of DAC and VOBA in 2007 compared to 2006 is due in part to a $67.0 change in estimate recorded during the fourth quarter of 2007. This change resulted from refinements of the DAC model, partially offset by favorable unlocking of mutual fund and mortality and persistency unlocking.

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)

The Company revised and unlocked certain assumptions for its fixed and variable annuity products during 2008, 2007, and 2006. Unlocking adjustments and their acceleration (deceleration) impact on Amortization of DAC and VOBA were as follows for the years ended December 31, 2008, 2007, and 2006.

                   2008  2007                 2006 
Impact of separate account growth and contractowner       
     withdrawal behavior different from assumptions  $ 491.8  $ 1.3  $ (42.6) 
Impact of current year gross profit variances                       227.2  -                               - 
Unlock of mortality, lapse, expense and mutual fund       
     sharing assumptions                       (40.1)  (43.6)                       (19.8) 
Impact of refinements of gross profit projections                       302.0  67.0                               - 
Total unlocking effect on Amortization of DAC and VOBA  $ 980.9  $ 24.7  $ (62.4) 

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 State
  of      Iowa Insurance Division (the “Division”) for payment of any dividend, which, when
  combined      with other dividends paid within the preceding twelve months, exceeds the greater of
  (1)      ten percent (10.0%) of the Company’s statutory surplus at the prior year end or (2) the
  Company’s      prior year statutory net gain from operations.
  During      2008, the Company paid its Parent a cash return of capital distribution in the amount of
  $900.0.      During 2007, the Company did not pay any dividends or return of capital distributions
  on      its common stock to its Parent. During 2006, the Company paid $170.0 in a return of capital
  distribution      to its Parent.
  During      2008, the Company received a $1.1 billion capital contribution from its Parent. During
  2007,      the Company received $150.0 in capital contributions from its Parent. During 2006, the
  Company      did not receive any capital contributions from its Parent.
  On      November 12, 2008, ING issued to the Dutch State non-voting Tier 1 securities for a total
  consideration      of Euro 10 billion. On February 24, 2009, $2.2 billion was contributed to direct
  and      indirect insurance company subsidiaries of ING America Insurance Holdings, Inc. (“ING
  AIH”),      of which $835.0 was contributed to the Company. The contribution was comprised of
  the      proceeds from the investment by the Dutch government and the redistribution of currently
  existing      capital within ING.
  The      Division recognizes as net income and capital and surplus those amounts determined in
  conformity      with statutory accounting practices prescribed or permitted by the Department,
  which      differ in certain respects from accounting principles generally accepted in the United
  States.      Statutory net income (loss) was $(831.4), $(40.1), and $(1.6), for the years ended
  December      31, 2008, 2007, and 2006, respectively. Statutory capital and surplus was $1,872.7
  and      $2,552.6 as of December 31, 2008 and 2007, respectively. As specifically permitted by

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)

statutory accounting practices, statutory surplus as of December 31, 2008 includes the impact of the $835.0 capital contribution received on February 24, 2009.

During 2008, the Company received a permitted practice regarding deferred income taxes, which modified the accounting prescribed by the National Association of Insurance Commissioners by increasing the realization period for deferred tax assets from one year to three years and increasing the asset recognition limit from 10% to 15% of adjusted statutory capital and surplus. This permitted practice increased admitted assets and statutory surplus by $120.7 for the year ended December 31, 2008. This permitted practice expires on December 15, 2009. The benefits of this permitted practice may not be considered by the Company when determining surplus available for dividends. This permitted practice had no impact on net income. The Company’s risk-based capital would not have triggered a regulatory event without the benefit of this permitted practice.

The Division also has the ability to ease certain reserving requirements at its discretion. Due to the reduction in liquidity and the availability of letters of credit confirming banks, the Department allowed the Company to accept unconfirmed letters of credit for reinsurance transactions. This allowed the Company to take the full reserve relief for reinsurance transactions with unconfirmed letters of credit. This reserve relief is available for the period from December 31, 2008 through July 1, 2009 and is not a permitted practice.

6. Additional Insurance Benefits and Minimum Guarantees

Under SOP 03-1, the Company calculates SOP 03-1 reserves for certain guaranteed benefits and for universal life products with certain patterns of cost of insurance charges and certain other fees.

The following assumptions and methodology were used to determine the guaranteed minimum death benefits (“GMDB”) SOP 03-1 reserve at December 31, 2008.

Area

Data used

Mean investment performance Volatility Mortality

Lapse rates
Discount rates

Assumptions/Basis for Assumptions

Based on 100 investment performance scenarios stratified based on 10,000 random generated scenarios 8.125% 18.0% 1999 and prior issues – 75.0%, 75.0%, 75.0%, 80.0%, grading to 100% from age 80 to 120, of the 90-95 ultimate mortality table for standard, ratchet, rollup, and combination rollup and ratchet, respectively.

2000 and later issues – 55.0%, 55.0%, 65.0%, 65.0%, grading to 100% from age 80 to 120, of the 90-95 ultimate mortality table for standard, ratchet, rollup, and combination rollup and ratchet, respectively.

Vary by contract type and duration; range between 1.0% and 40.0% 5.5%, based on the portfolio earned rate of the general account

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)

The assumptions used for calculating the additional guaranteed minimum income benefits (“GMIB”) and Guaranteed Minimum Withdrawal for Life Benefit (LifePay and LifePay Plus) liabilities at December 31, 2008, 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.

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, 2008 and 2007, and the paid and incurred amounts by type for the years ended December 31, 2008 and 2007, were as follows:

  Guaranteed  Guaranteed  Guaranteed    Guaranteed   
  Minimum  Minimum  Minimum    Withdrawal   
  Death  Accumulation/  Income    For Life   
  Benefit  Withdrawal Benefit  Benefit    Benefit   
  (GMDB)  (GMAB/GMWB)  (GMIB)    (LP/LPP)   
Separate account liability             
     at December 31, 2008  $ 34,090.8  $ 1,470.2  $ 12,701.6    $ 10,020.7   
Separate account liability             
     at December 31, 2007  $ 44,477.8  $ 2,556.4  $ 20,066.1    $ 5,900.0   
 
Additional liability balance:             
     Balance at January 1, 2007  $ 139.7  $ (8.9)  $ 83.3    $ 1.7   
             Incurred guaranteed benefits  88.9  20.1  48.9    4.2   
             Paid guaranteed benefits  (19.2)  -  -    -   
     Balance at December 31, 2007  $ 209.4  $ 11.2  $ 132.2    $ 5.9   
             Incurred guaranteed benefits  509.4  141.8  (132.2)  (1)  (5.9)  (1) 
             Paid guaranteed benefits  (153.4)  -  -    -   
     Balance at December 31, 2008  $ 565.4  $ 153.0  $ -    $ -   

(1) Amounts represent full reinsurance of ceded reserves for GMIBs and LP/LPPs.

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, 2008 and 2007.

  Guaranteed    Guaranteed  Guaranteed  Guaranteed 
  Minimum    Minimum  Minimum  Withdrawal 
  Death    Accumulation/  Income  For Life 
  Benefit    Withdrawal Benefit  Benefit  Benefit 
2008  (GMDB)    (GMAB/GMWB)  (GMIB)  (LP/LPP) 
Net amount at risk, net of reinsurance  $ 15,035.8             $ 310.0  $ -  $ - 
Weighted average attained age  64    66  -  - 
 
2007           
Net amount at risk, net of reinsurance  $ 1,796.0             $ 109.0  $ 391.9  $ 5.6 
Weighted average attained age  63    63  59  63 
 
    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)

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, 2008 and 2007 was $34.1 billion and $44.5 billion, respectively.

7.      Sales Inducements
  During the year ended December 31, 2008, the Company capitalized and amortized $106.9 and $229.7, respectively, of sales inducements. During the year ended December 31, 2007, the Company capitalized and amortized $135.4 and $120.2, respectively, of sales inducements. The unamortized balance of capitalized sales inducements, net of unrealized capital gains (losses) on available-for-sale securities, was $624.3 and $645.4 as of December 31, 2008 and 2007, respectively.
8.      Income Taxes
  The Company files a consolidated federal income tax return with ING AIH, an affiliate, and certain other subsidiaries of ING AIH. The Company is a party to a federal tax allocation agreement with ING AIH and its subsidiaries that are part of the group, whereby ING AIH charges its subsidiaries for federal taxes each subsidiary would have incurred were it not a member of the consolidated group and credits each subsidiary for losses at the statutory federal tax rate.

Income tax expense (benefit) consisted of the following for the years ended December 31, 2008, 2007, and 2006.

  2008  2007                   2006 
Current tax (benefit) expense:       
     Federal  $ (754.9)  $ 26.6  $ (67.6) 
             Total  (754.9)  26.6                           (67.6) 
Deferred tax expense:       
     Operations and capital loss carryforwards  14.6  -                           151.0 
     Other federal deferred tax expense (benefit)  495.1  (28.2)                           (19.0) 
Total deferred tax expense (benefit)  509.7  (28.2)                           132.0 
Total income tax expense (benefit)  $ (245.2)  $ (1.6)  $ 64.4 

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)

Income taxes were different from the amount computed by applying the federal income tax rate to income before income taxes and cumulative effect of change in accounting principle for the following reasons for the years ended December 31, 2008, 2007, and 2006.

  2008  2007  2006 
(Loss) income before income taxes and cumulative       
     effect of change in accounting principle  $ (1,626.4)  $ 127.4  $ 276.6 
Tax rate  35.0%  35.0%  35.0% 
Income tax (benefit) expense at federal statutory rate  $ (569.2)  $ 44.6  $ 96.8 
Tax effect of:       
     Meals and entertainment  0.7  0.7  0.6 
     Dividend received deduction  (48.9)  (49.5)  (42.9) 
     Valuation allowance  379.1  -  - 
     Other  (6.9)  2.6  9.9 
Income tax expense (benefit)  $ (245.2)  $ (1.6)  $ 64.4 

Temporary Differences

The tax effects of temporary differences that give rise to Deferred tax assets and Deferred tax liabilities at December 31, 2008 and 2007, are presented below.

    2008  2007 
 Deferred tax assets:       
         Operations and capital loss carryforwards  $ -  $ 14.6 
         Future policy benefits    288.7  731.1 
         Goodwill    3.7  5.1 
         Investments    353.8  103.8 
         Employee compensation and benefits    36.7  45.4 
         Unrealized losses on investments    813.4  59.6 
         Other    54.1  68.0 
                       Total gross assets before valuation allowance    1,550.4  1,027.6 
         Less: valuation allowance    (408.9)  (46.9) 
                       Assets, net of valuation allowance    1,141.5  980.7 
 
 Deferred tax liabilities:       
         Deferred policy acquisition cost    (1,137.9)  (1,120.3) 
         Value of purchased insurance in force    (39.2)  (42.7) 
         Other    (0.2)  (2.2) 
                       Total gross liabilities    (1,177.3)  (1,165.2) 
 Net deferred income liability  $ (35.8)  $ (184.5) 
 
Net unrealized capital gains (losses) are presented as a component of Other Comprehensive 
Income (Loss) in Shareholder’s Equity, net of deferred taxes.     

C-50

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)

Valuation allowances are provided when it is considered unlikely that deferred tax assets will be realized. As of December 31, 2008 and 2007, the Company had a tax valuation allowance of $374.0 and $0, respectively, related to realized capital losses, which is included in Net Income (Loss). The valuation allowance includes $81.4 related to impairments of securities designated in the ING-Dutch State Transaction, which was established pending uncertainties regarding the closing of the transaction. Additionally, at December 31, 2008 and 2007, the Company had a tax valuation allowance of $29.8 and $46.9, respectively, related to unrealized capital losses, which is included in Accumulated Other Comprehensive Income (Loss). The Company also established a $5.1 tax valuation allowance against foreign tax credits, the benefit of which is uncertain.

Tax Sharing Agreement

The Company had a receivable from ING AIH of $321.1 and a payable to ING AIH of $40.7 at December 31, 2008 and 2007, respectively, for federal income taxes under the intercompany tax sharing agreement.

See Related Party Transactions footnote for more information.

Unrecognized Tax Benefits

Reconciliations of the change in the unrecognized income tax benefits for the years ended December 31, 2008 and 2007 are as follows:

  2008  2007 
Balance at January 1  $ 66.4  $ 61.5 
Additions for tax positions related to the current year  7.8  6.9 
Additions for tax positions related to prior years  0.7  - 
Reductions for tax positions related to prior years  (9.6)  (2.0) 
Reductions for settlements with taxing authorities  (0.4)  - 
Balance at December 31  $ 64.9  $ 66.4 

The Company had $47.3 of unrecognized tax benefits as of December 31, 2008 that would affect the Company’s effective tax rate if recognized.

Interest and Penalties

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in Current income taxes and Income tax expense on the Consolidated Balance Sheets and Consolidated Statement of Operations, respectively. The Company had accrued interest of $4.4 as of December 31, 2008 and $4.7 as of December 31, 2007. The decrease in accrued interest during the year ended December 31, 2008 primarily relates to the settlement of the 2003 IRS audit.

C-51

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 Regulatory Matters

In the first quarter of 2008, the IRS finalized the audit of tax year 2003. The 2003 settlement did not have a material impact on the Company’s financial position. The Company is currently under audit by the IRS for tax years 2002 and 2004 through 2008, and is expected that the examination of these years will be finalized within the next twelve months. Upon finalization of the IRS examination it is reasonably possible that the unrecognized tax benefits will decrease by up to $22.9. The timing of the payment of the remaining allowance of $42.0 cannot be reliably estimated.

On September 25, 2007, the IRS issued Revenue Ruling 2007-61, which announced its intention to issue regulations with respect to certain computational aspects of the dividend received deduction (“DRD”) on separate account assets held in connection with variable annuity and life insurance contracts. Revenue Ruling 2007-61 suspended Revenue Ruling 2007-54 issued in August 2007 that purported to change accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other members of the public will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing, substance, and effective date of any such regulations are unknown, but they could result in the elimination of some or all of the separate account DRD tax benefit that the Company receives.

Under prior law, life insurance companies were allowed to defer from taxation a portion of income. Prior to 2006, deferred income of $14.4 was accumulated in the Policyholder’s Surplus Account and would only become taxable under certain conditions, which management believed to be remote. In 2004, Congress passed the American Jobs Creation Act of 2004, allowing certain tax-free distributions from the Policyholders’ Surplus Account during 2005 and 2006. During 2006, the Company made a return of capital distribution of $170.0, which eliminated the $14.4 balance in the Policyholders’ Surplus Account and, therefore, any potential tax on the accumulated balance.

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 affiliates (excluding certain employees) are eligible to participate, including the Company’s employees. However, effective January 1, 2009, the Retirement Plan was amended to provide that anyone hired or rehired by the Company on or after January 1, 2009, would not be eligible to participate in the Plan. The Retirement Plan was amended and restated effective July 1, 2008 related to the admission of employees from the acquisition of CitiStreet LLC (“CitiStreet”) by Lion, and ING North America filed a request for a determination letter on the qualified status of the Plan.

C-52

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 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 $10.8, $13.0, and $17.1, for the years ended 2008, 2007, and 2006, respectively, and are included in Operating expenses in the Statements of Operations.

Defined Contribution Plan

ING North America sponsors the ING Savings Plan and ESOP (the “Savings Plan”). Substantially all employees of ING North America and its affiliates (excluding certain employees) are eligible to participate, including the Company’s employees other than Company agents. The Savings Plan is a tax-qualified defined contribution retirement plan, which includes an employee stock ownership plan (“ESOP”) component. The Savings Plan was amended and restated effective July 1, 2008 related to the admission of employees from the acquisition of CitiStreet by Lion, and ING North America filed a request for a determination letter on the qualified status of the Plan. 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 6.0% of eligible compensation. 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 $5.6, $4.9, and $4.6, for the years ended December 31, 2008, 2007, and 2006, respectively, and are included in Operating expenses in the Statements of Operations.

Stock Option and Share Plans

ING sponsors the ING Group Long Term Equity Ownership Plan (“leo”), which provides employees of the Company who are selected by the ING Board of Directors to be granted options and/or performance shares. The terms applicable to an award under leo are set out in an award agreement which is signed by the participant when he or she accepts the award.

Options granted under leo are nonqualified options on ING shares in the form of American Depository Receipts (“ADRs”). Leo options have a ten (10) year term and vest three years from the grant date. Options awarded under leo may vest earlier in the event of the participant’s death, permanent disability or retirement. Retirement for purposes of leo means a participant terminates service after attaining age 55 and completing 5 years of service. Early vesting in all or a portion of a grant of options may also occur in the event the participant is terminated due to redundancy or business divestiture. Unvested options are generally subject to forfeiture when a participant voluntarily terminates employment or is terminated for cause (as defined in leo). Upon vesting, participants generally have up to seven years in which to exercise their vested options. A shorter exercise period applies in the event of termination due to redundancy, business divestiture, voluntary termination or termination for cause. An option gives the

C-53

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)

recipient the right to purchase an ING share in the form of ADRs at a price equal to the fair market value of one ING share on the date of grant. On exercise, participant’s have three options (i) retain the shares and remit a check for applicable taxes due on exercise, (ii) request the administrator to remit a cash payment for the value of the options being exercised, less applicable taxes, or (iii) retain some of the shares and have the administrator liquidate sufficient shares to satisfy the participant’s tax obligation. The share price is in Euros and converted to U.S. dollars, as determined by ING.

Awards of performance shares may also be made under leo. Performance shares are a contingent grant of ING stock and on vesting, the participant has the right to receive a cash amount equal to the closing price per ING share on the Euronext Amsterdam Stock Market on the vesting date times the number of vested Plan shares. Performance shares generally vest three years from the date of grant, with the amount payable based on ING’s share price on the vesting date. Payments made to participants on vesting are based on the performance targets established in connection with leo and payments can range from 0% to 200% of target. Performance is based on ING’s total shareholder return relative to a peer group as determined at the end of the vesting period. To vest, a participant must be actively employed on the vesting date, although vesting will continue to occur in the event of the participant’s death, disability or retirement. If a participant is terminated due to redundancy or business divestiture, vesting will occur but in only a portion of the award. Unvested shares are generally subject to forfeiture when an employee voluntarily terminates employment or is terminated for cause (as defined in leo). Upon vesting, participants have three options (i) retain the shares and remit a check for applicable taxes due on exercise, (ii) request the administrator to remit a cash payment for the value of the shares, less applicable taxes, or (iii) retain some of the shares and have the administrator liquidate sufficient shares to satisfy the participant’s tax obligation. The amount is converted from Euros to U.S. dollars based on the daily average exchange rate between the Euro and the U.S. dollar, as determined by ING.

The Company recognized compensation expense for the leo options and performance shares of $5.3, $4.7, and $7.4, for the years ended December 31, 2008, 2007, and 2006, respectively.

For leo, the Company recognized tax benefits of $0.7 in 2008, $2.5 in 2007, and minimal tax benefits in 2006.

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 is 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, 2008, 2007, and 2006, were $1.3, $0.6, and $1.3, respectively.

C-54

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)

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:
  §      Underwriting and distribution agreement with Directed Services LLC (“DSL”) (successor by merger to Directed Services, Inc.), an affiliated broker-dealer, whereby DSL serves as the principal underwriter for variable insurance products issued by the Company. DSL 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, 2008, 2007, and 2006, commissions were incurred in the amounts of $603.8, $553.8, and $418.0, respectively.
  §      Asset management agreement with ING Investment Management LLC (“IIM”), an affiliate, in which IIM provides asset management, administration, and accounting services for ING
   USA’s general account. The Company records a fee, which is paid quarterly, based on the value of the assets under management. For the years ended December 31, 2008, 2007, and 2006, expenses were incurred in the amounts of $85.9, $78.0, and $69.5, respectively.
  §      Service agreement with DSL, in which the Company provides managerial and supervisory services to DSL and earns a fee that is calculated as a percentage of average assets in the Company’s variable separate accounts deposited in ING Investors Trust. On August 9, 2007, the Company and DSL entered into an amendment to the service agreement effective July 31, 2007, which modifies the method for calculating the compensation owed to the Company for its provision of managerial and supervisory services to DSL. As a result of this amendment, DSL pays the Company the total net revenue associated with the Company’s deposits in ING Investors Trust. For the years ended December 31, 2008, 2007, and 2006, revenue for these services was $139.2, $109.0, and $62.0, respectively.
  §      Services agreements with ING North America, dated September 1, 2000 and January 1, 2001, respectively, for administrative, management, financial, information technology, and finance and treasury services. For the years ended December 31, 2008, 2007, and 2006, expenses were incurred in the amounts of $93.0, $96.6, and $95.4, respectively.
  §      Services agreement between the Company and its U.S. insurance company affiliates dated
  January      1, 2001, amended effective January 1, 2002 and December 31, 2007, for
  administrative,      management, professional, advisory, consulting, and other services. For the
  years      ended December 31, 2008, 2007, and 2006, expenses related to the agreements were
  incurred      in the amount of $21.6, $19.0, and $6.1, respectively.
  §      Administrative Services Agreement between the Company, ReliaStar Life Insurance
  Company      of New York (“RLNY”), an affiliate, and other U.S. insurance company affiliates
  dated      March 1, 2003, amended effective August 1, 2004, in which the Company and
  affiliates      provide services to RLNY. For the years ended December 31, 2008, 2007, and
  2006,      revenue related to the agreement was $6.5, $6.3, and $5.8, respectively.
  §      ING Advisors Network, a group of broker-dealers affiliated with the Company, distributes
  the      Company’s annuity products. For the years ended December 31, 2008, 2007, and 2006,
  ING      Advisors Network sold new contracts of $1,411.3, $1,429.3, and $1,255.4,
  respectively.     

C-55

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)

§      Services agreement between the Company, Security Life of Denver Insurance Company (“Security Life”), an affiliate, and IIM whereby IIM provides administrative, management, professional, advisory, consulting and other services to the Company and Security Life with respect to its Financial Products unit. For the years ended December 31, 2008 and 2007, the Company incurred expenses of $8.9 and $1.3, 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

Automatic Reinsurance Agreement

Effective June 30, 2008, ING USA entered into an automatic reinsurance agreement with its affiliate, Security Life of Denver International Limited (“SLDI”). Under the terms of the agreement, ING USA ceded to SLDI 100% of the benefits guaranteed under specific variable annuity guaranteed living benefit riders (the “Covered Benefits”) attached to certain variable annuity contracts issued by ING USA on or after January 1, 2000 (the “Contracts”). ING USA paid SLDI initial consideration of $665.8. Thereafter, ING USA will pay (i) new business consideration equal to 1.62% of premiums received from contractholders on the Contracts and (ii) a base premium equal to the actual fees paid by contractholders for the Covered Benefits. Under the terms of the agreement, SLDI is required to provide ING USA security for ING USA’s full statutory reserve credit for reinsurance by providing a letter of credit to ING USA or establishing a trust for its benefit, or a combination of a letter of credit and assets in trust. SLDI has provided ING USA with letters of credit in the aggregate amount of $960.0, with $319.0 issued under a letter of credit facility with its affiliate, ING Bank N.V., while the remainder resides with three separate third party letter of credit facilities as of December 31, 2008. SLDI has also established a trust with The Bank of New York as trustee and ING USA as beneficiary in which SLDI assets totaling $655.2 have been deposited as of December 31, 2008. Since December 31, 2008, an additional $1,074.0 has been contributed to the trust.

At the inception of this reinsurance contract, the impact of the initial ceded premium of $665.8 was partially offset by ceded reserves of $273.6 and by an increase in DAC of $85.5. The net of these was established as a deferred loss of $306.7 and was reflected in Other Assets. The deferred loss is being amortized over the period of benefit.

At December 31, 2008, the value of reserves ceded by the Company under this agreement was $732.3, and the balance of the deferred loss, including both the initial deferred loss plus additional deferrals of 1.62% of premiums on new business, was $353.8.

Effective June 30, 2008, ING USA also entered into a services agreement with SLDI pursuant to which ING USA will provide certain actuarial risk modeling consulting services to SLDI with respect to hedge positions undertaken by SLDI in connection with the Covered Benefits reinsured by SLDI under the automatic reinsurance agreement. For the year ended December 31, 2008, revenue related to the agreement was $4.9.

C-56

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)

Coinsurance Agreements

Effective May 1, 2005, ING USA entered into a coinsurance agreement with its affiliate, Security Life. Under the terms of the agreement, Security Life assumed and accepted the responsibility for paying, when due, 100% of the liabilities arising under the multi-year guaranteed fixed annuity contracts issued by ING USA between January 1, 2001 and December 31, 2003. In addition, ING USA assigned to Security Life all future premiums received by ING USA attributable to the ceded contracts.

Under the terms of the agreement, ING USA ceded $2.5 billion in account balances and transferred a ceding commission and $2.7 billion in assets to Security Life, resulting in a realized capital gain of $47.9 to the Company.

The coinsurance agreement is accounted for using the deposit method. As such, $2.7 billion of Deposit receivable from affiliate was established on the Balance Sheets. The receivable will be adjusted over the life of the agreement based on cash settlements and the experience of the contracts, as well as for amortization of the ceding commission. The Company incurred amortization expense of the negative ceding commission of $19.9, and $21.2 and $23.5 for the years ended December 31, 2008, 2007 and 2006, respectively, which is included in Other expenses in the Statements of Operations.

In addition, the Company entered into a 100% coinsurance agreement with Security Life dated January 1, 2000, covering certain universal life policies which had been issued and in force as of, as well as any such policies issued after, the effective date of the agreement. As of December 31, 2008 and 2007, the value of reserves ceded by the Company under this agreement was $17.2 and $16.6, respectively.

The Company is a party to a Facultative Coinsurance Agreement with its affiliate, Security Life, effective August 20, 1999. Under the terms of this agreement, the Company facultatively cedes to Security Life, from time to time, certain GICs on a 100% coinsurance basis. The value of GIC reserves ceded by the Company under this agreement was $2.5 billion and $2.3 billion at December 31, 2008 and 2007, respectively.

Reinsurance Assumed

Yearly Renewable Term Agreements

Effective December 1 and December 31, 2008, respectively, ING USA entered into two yearly renewable term reinsurance agreements with its affiliate, ReliaStar Life Insurance Company (“ReliaStar”), for an indefinite duration. Under the terms of the agreements, ING USA assumed 100% of ReliaStar’s mortality risk associated with the net amount at risk under specific life insurance policies, including:

C-57

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)

§      Individual life policies issued by ReliaStar and previously assumed by ReliaStar from ReliaStar Life Insurance Company of New York (“RLNY”), with policy dates prior to January 1, 2000, including certain term life, universal life, variable universal life, and whole life, insurance policies.
§      In force individual life policies issued by ReliaStar, where premiums are paid on the insured’s behalf through payroll deduction and which were marketed by employee benefit brokers.

ING USA received initial consideration of $3.9 from ReliaStar. Thereafter, the Company will receive monthly premiums, net of benefit payments, based on premium rates set forth in the respective agreements. As such, there is no unearned reinsurance premium.

As of December 31, 2008, the value of the reserves assumed by the Company under these agreements was $5.0.

Coinsurance Funds Withheld Agreement

Effective December 31, 2008, ING USA entered into a coinsurance funds withheld agreement with ReliaStar for an indefinite duration. Under the terms of the agreement, ING USA assumed 100% quota share of ReliaStar’s net retained liability under certain Employee Benefits Group Annual Term policies, including disability waiver of premium.

The initial premium of $219.9 was equal to the aggregate reserve assumed by ING USA. Thereafter, premiums are equal to the total earned gross premiums collected by ReliaStar from policyholders. ReliaStar will retain all reinsurance premiums payable to ING USA as funds withheld, as security for ceded liabilities and against which ceded losses will be offset. Monthly, ING USA will receive or pay a net settlement. In addition, ING USA is required to provide ReliaStar full reserve credit for reinsurance by providing a letter of credit, the cost of which will be partially reimbursed by ReliaStar.

As of December 31, 2008, the value of the reserves assumed by the Company under this agreement was $219.9.

Funds Withheld Agreement

Effective December 31, 2008, ING USA entered into a funds withheld agreement with ReliaStar for an indefinite duration. Under the terms of the agreements, ING USA assumed 100% quota share of ReliaStar’s net retained liability under assumed group life reinsurance in-force.

C-58

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 initial premium of $60.0 was equal to the net Statutory reserve assumed by ING USA. Thereafter, premiums are equal to the total earned reinsurance premiums collected by ReliaStar, less a ceding commission. ReliaStar will retain all reinsurance premiums payable to ING USA as funds withheld, as security for ceded liabilities and against which ceded losses will be offset. Monthly, ING USA will receive or pay a net settlement. In addition, ING USA is required to provide ReliaStar reserve credit in the excess of the funds withheld for reinsurance by providing a cash deposit or letter of credit.

As of December 31, 2008, the value of the reserves assumed by the Company under this agreement was $60.0.

Financing Agreements

The Company maintains a reciprocal loan agreement with ING AIH, an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business. Under this agreement, which became effective in January 2004 and expires on January 14, 2014, either party can borrow from the other up to 3.0% of the Company's statutory admitted assets as of the preceding December 31. Interest on any ING USA borrowing is charged at the rate of ING AIH’s cost of funds for the interest period, plus 0.15%. Interest on any ING AIH borrowing is charged at a rate based on the prevailing interest rate of U.S. commercial paper available for purchase with a similar duration.

Under this agreement, the Company incurred interest expense of $1.3, $3.5, and $1.5, for the years ended December 31, 2008, 2007, and 2006, respectively. The Company earned interest income of $2.8, $6.7, and $4.9, for the years ended December 31, 2008, 2007, and 2006, respectively. Interest expense and income are included in Interest expense and Net investment income, respectively, on the Statements of Operations. At December 31, 2008 and 2007, the Company had no amounts outstanding with ING AIH under the reciprocal loan agreement.

Notes with Affiliates

The Company issued a 30-year surplus note in the principal amount of $35.0 on December 8, 1999, to its affiliate, Security Life, 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, for each of the years ended December 31, 2008, 2007, and 2006, respectively.

C-59

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)

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, ReliaStar, 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 principal 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 $25.4 for each of the years ended December 31, 2008, 2007, and 2006, respectively.

Funding Agreement

On August 10, 2007, the Company issued an extendable funding agreement to its parent, Lion, upon receipt of a single deposit in the amount of $500.0. To fund the purchase of the funding agreement, Lion issued a promissory note to its indirect parent company, ING Verzekeringen N.V. ("ING V"), which has been guaranteed by Lion’s immediate parent, ING AIH.

Under the terms of the funding agreement, the Company will pay Lion interest quarterly at the credited interest rate until maturity, and on the maturity date, the Company will pay Lion the single deposit and any accrued and unpaid interest. The credited interest rate shall be the three-month LIBOR, plus 0.05%, and shall be reset quarterly. The maturity date of the funding agreement shall be August 10, 2009, or such later date to which the maturity date may be extended; provided, however, that the maturity date may not be extended beyond August 10, 2012.

Proprietary Alpha Fund

The ING Proprietary Alpha Fund, LLC (“PAF”) is a multi-strategy investment fund established in 2007 as a U.S. domiciled limited liability company managed by ING Alternative Asset Management LLC (“IAAM”), an affiliate. The investment strategies within PAF include both long and short exposures to various investments and utilize various fixed income, equity, and derivative financial instruments. In September 2007, ING USA invested $125.0 into PAF.

As of December 31, 2008, the Company recognized approximately $40.2 in losses related to financial instruments held by the PAF in the Lehman Liquidity Fund in response to the bankruptcy proceedings of Lehman Brothers, Inc. (“Lehman”).

ING Multi-Strategy Opportunity Fund

On September 30, 2008, the Company’s affiliate, Security Life of Denver Insurance Company, transferred 51.9% of its interest in the ING Multi-Strategy Opportunity Fund (the “Fund”) to the Company for a purchase price of $68.9. As of December 31, 2008, the Company has an investment in the various series of the ING Multi-Strategy Opportunity Fund Series LLC that total $66.8. This amount is included in Limited partnerships/corporations on the Balance Sheets.

C-60

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

Effective January 1, 2005, the Company is a party to a federal tax allocation agreement with ING AIH and its subsidiaries that are part of the ING AIH consolidated group. Under the federal tax allocation agreement, ING AIH charges its subsidiaries for federal taxes each subsidiary would have incurred were it not a member of the consolidated group and credits each subsidiary for losses at the statutory federal tax rate.

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.

Derivatives

As of December 31, 2008 and 2007, the Company had call options with a notional amount of $162.3 and $167.8, respectively, and market value of $8.6 and $42.6, respectively, with ING Bank, an affiliate. Each of these contracts was entered into as a result of a competitive bid, which included unaffiliated counterparties.

11. Financing Agreements

The Company maintains a $50.0 uncommitted, perpetual revolving note facility with the Bank of New York ("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 did not incur any interest expense for the year ended December 31, 2008. The Company incurred minimal interest expense for the years ended December 31, 2007 and 2006. At December 31, 2008 and 2007, the Company had no amounts outstanding under the revolving note facility.

The Company also maintains a $100.0 uncommitted line-of-credit agreement with PNC Bank (“PNC”), effective December 19, 2005. Borrowings are guaranteed by ING AIH, with maximum aggregate borrowings outstanding at anytime to ING AIH and its affiliates of $100.0. Interest on any of the Company borrowing accrues at an annual rate equal to the rate quoted by PNC to the Company for the borrowing. Under this agreement, the Company did not incur any interest expense for the year ended December 31, 2008. The Company incurred minimal interest expense for the years ended December 31, 2007 and 2006. At December 31, 2008 and 2007, the Company had no amounts outstanding under the line-of-credit agreement. As of October 31, 2008, the Company had not formally renewed this line-of-credit, which subsequently expired on this date.

C-61

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 maintains a $100.0 uncommitted line-of-credit agreement with Svenska Handelsbanken AB (Publ.) (“Svenska”), effective June 2, 2006. Borrowings are guaranteed by ING AIH, with maximum aggregate borrowings outstanding at anytime to ING AIH and its affiliates of $100.0. Interest on any of the Company’s borrowing accrues at an annual rate equal to the rate quoted by Svenska to the Company for the borrowing. Under this agreement, the Company incurred minimal interest expense for the years ended December 31, 2008 and 2007. At December 31, 2008 and 2007, the Company had no amounts outstanding under the line-of-credit agreement. Effective November 19, 2008, the Company discontinued this line-of-credit.

Also see Financing Agreements in the Related Party Transactions footnote.

12. Reinsurance

At December 31, 2008, the Company had reinsurance treaties with 16 unaffiliated reinsurers covering a portion of the mortality risks and guaranteed death and living benefits under its annuity contracts. The Company, as cedant, also has reinsurance treaties with two affiliates, Security Life and SLDI, related to GICs, fixed annuities, and universal life insurance policies. The Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements.

Reinsurance ceded in force for life mortality risks were $633.1 and $689.1 at December 31, 2008 and 2007, respectively. Net receivables were comprised of the following at December 31, 2008 and 2007.

  2008  2007 
Claims recoverable from reinsurers  $ 24.6  $ 12.0 
Receivable for reinsurance premiums  0.5  1.4 
Reinsured amounts due to reinsurers  (33.8)  (36.2) 
Reinsurance reserves ceded  3,384.8  2,452.1 
Deposits  1,947.0  2,153.2 
Other  26.2  33.6 
Total  $ 5,349.3  $ 4,616.1 

Premiums and Interest credited and other benefits to contractowners were reduced by the following amounts for reinsurance ceded for the years ended December 31, 2008, 2007, and 2006.

  2008  2007  2006 
Deposits ceded under reinsurance  $ 1,632.0  $ 1,309.1  $ 1,144.3 
Premiums ceded under reinsurance  2.1  2.4  2.5 
Reinsurance recoveries  1,212.6  1,723.2  657.6 

Also see Reinsurance Agreements in the Related Party Transactions footnote.

C-62

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)

13. Commitments and Contingent Liabilities

Leases

The Company leases its office space and certain equipment under operating leases, the longest term of which expires in 2017.

For the years ended December 31, 2008, 2007, and 2006, rent expense for leases was $8.7, $7.9, and $8.3, respectively. The future net minimum payments under noncancelable leases for the years ended December 31, 2009 through 2013 are estimated to be $7.7, $6.3, $5.3, $5.3, and $5.3, respectively, and $18.9, 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.

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, 2008, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $421.4, $207.2 of which was with related parties. At December 31, 2007, the Company had off-balance sheet commitments to purchase investments equal to their fair value of $616.3, $156.5 of which was with related parties. During 2008 and 2007, $176.2 and $33.1, respectively, was funded to related parties under these commitments.

Financial Guarantees

The Company owns a 3-year credit-linked note arrangement, whereby the Company will reimburse the guaranteed party upon payment default of the referenced obligation. Upon such default, the Company will reimburse the guaranteed party for the loss under the reference obligation, and the Company receives that reference obligation in settlement. The Company can seek recovery of any losses under the agreements by sale or collection of the received reference obligation. As of December 31, 2008, the maximum potential future exposure to the Company under the guarantee was $32.5.

C-63

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)

Cash Collateral

Under the terms of the Company’s Over-The-Counter Derivative ISDA Agreements (“ISDA Agreements”), the Company may receive from, or deliver to, counterparties, collateral to assure that all terms of the ISDA Agreements will be met with regard to the CSA. The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. As of December 31, 2008 and 2007, the Company held $17.6 and $11.5, respectively, of cash collateral, which was included in Payables under securities loan agreement, including collateral held, on the Balance Sheets.

Litigation

The Company is involved in 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.

Insurance and Retirement Plan Products and Other Regulatory Matters

Federal and state regulators, and self-regulatory agencies are conducting broad inquiries and investigations involving the insurance and retirement industries. These initiatives currently focus on, among other things, compensation, revenue sharing, and other sales incentives; potential conflicts of interest; sales and marketing practices (including sales to seniors); specific product types (including group annuities and indexed annuities); and disclosure. The Company and certain of its U.S. affiliates have received formal and informal requests in connection with such investigations, and have cooperated and are cooperating fully with each request for information. Some of these matters could result in regulatory action involving the Company. These initiatives also 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 their business practices are appropriate.

C-64

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)

Investment Product 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; directed brokerage; compensation; sales practices, suitability, and supervision; arrangements with service providers; pricing; compliance and controls; adequacy of disclosure; and document retention.

In addition to responding to governmental and regulatory requests on fund trading 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 Securities and Exchange Commission (“SEC”) pursuant to the Securities Exchange Act of 1934, as amended.

Action has been or may be taken by regulators with respect to the Company or certain affiliates before investigations relating to fund trading are completed. 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 any 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 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.

14. Subsequent Events

Subsequent to December 31 2008, the ING Supervisory Board of Directors approved a liquidity facility for up to $2.0 billion to support the liquidity requirements in ING’s life insurance operations, including the Company. The exact usage of the facility, if any, has not yet been determined, as it will be utilized as an alternative source of liquidity.

C-65

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)

15. Restructuring Charges

2008 Expense Reductions

During the fourth quarter, the Company implemented an expense reduction program for the purpose of streamlining its overall operations. The restructuring charges related to this expense reduction initiative include severance and other employee benefits and lease abandonment costs, which are included in Operating Expenses on the Statements of Operations.

The following table illustrates the restructuring reserves and charges for the period ended December 31, 2008.

Restructuring reserve at inception  $ -   
         Restructuring charges:     
               Employee severance and termination benefits  3.3  (1) 
               Future rent on non-cancelable leases  0.4  (2) 
         Total restructuring charges  3.7   
         Other charges  -   
         Intercompany charges and payments  (0.5)  (3) 
         Payments applied against reserve  (0.7)  (4) 
Restructuring reserve at December 31, 2008  $ 2.5   

(1)      Amounts represent charges to the Company for all severed employees that support the Company, including those within affiliates.
(2)      Amounts represent intercompany expense allocations from ING AIH. The expenses were allocated to the Company based upon the department that used the space, and the cash settlement occurred in January 2009.
(3)      Amounts represent payments to ING affiliates for severance incurred by another ING entity for employees that supported the Company. Payments were made through ING's intercompany cash settlement process.
(4)      Amounts represent payments to employees of the Company, as well as reversals of severance reserves.

The Company estimates the completion of these integration and restructuring activities by November 15, 2009.

2009 Expense and Staff Reductions

On January 12, 2009, ING announced expense and staff reductions across all U.S. operations, which resulted in the elimination of 114 current and open positions in the Company. Due to the staff reductions, curtailment of pension benefits shall occur during the first quarter of 2009, which will result in the recognition of a loss related to unrecognized prior service costs. The effect of the curtailment on the Company’s earnings is anticipated to be less than $0.1. The Company anticipates that the restructuring activities in regards to its operations will be complete by November 15, 2009, with total estimated costs to the Company equal to $6.7.

C-66

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)

16. Accumulated Other Comprehensive Income (Loss)

Shareholder’s equity included the following components of Accumulated other comprehensive income (loss) as of December 31, 2008, 2007, and 2006.

  2008  2007  2006 
Net unrealized capital (losses) gains:       
     Fixed maturities, available-for-sale  $ (3,234.0)  $ (122.3)  $ (28.9) 
     Equity securities, available-for-sale  (3.7)  (5.5)  1.5 
     DAC/VOBA adjustment on       
available-for-sale securities  1,139.7  (36.9)  21.1 
     Sales inducements adjustment on       
available-for-sale securities  102.2  0.5  1.0 
     Other investments  (6.2)  (6.4)  (6.6) 
Unrealized capital (losses) gains , before tax  (2,002.0)  (170.6)  (11.9) 
Deferred income tax asset (liability)  700.7  59.7  3.8 
Deferred tax asset valuation allowance  (29.8)  (46.9)  - 
Net unrealized capital (losses) gains  (1,331.1)  (157.8)  (8.1) 
Pension liability, net of tax  (2.6)  (2.9)  (5.1) 
Other  -  -  1.1 
Accumulated other comprehensive (loss) income  $ (1,333.7)  $ (160.7)  $ (12.1) 

Changes in Accumulated other comprehensive income (loss), net of DAC, VOBA, and tax (excluding the tax valuation allowance), related to changes in unrealized capital gains (losses) on securities, including securities pledged, were as follows for the years ended December 31, 2008, 2007 and 2006

  2008  2007  2006 
Fixed maturities, available-for-sale  $ (3,111.7)  $ (93.4)  $ (22.0) 
Equity securities, available-for-sale  1.8  (7.0)  0.4 
DAC/VOBA adjustment on       
available-for-sale securities  1,176.6  (58.0)  13.6 
Sales inducements adjustment on       
available-for-sale securities  101.7  (0.5)  (1.5) 
Other investments  0.2  0.2  (1.2) 
Unrealized capital (losses) gains, before tax  (1,831.4)  (158.7)  (10.7) 
Deferred income tax asset (liability)  641.0  55.9  3.4 
Net change in unrealized capital (losses) gains  $ (1,190.4)  $ (102.8)  $ (7.3) 

C-67

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)

  2008                 2007  2006 
Net unrealized capital holding (losses) gains       
     arising during the year(1)  $ (1,877.2)  $ (210.5)  $ (49.5) 
Less: reclassification adjustment for (losses) gains       
     and other items included in Net (loss) income(2)  (686.8)                   (107.7)  (42.2) 
Net change in unrealized capital (losses)       
     gains on securities  $ (1,190.4)  $ (102.8)  $ (7.3) 

(1)      Pretax unrealized capital holding gains (losses) arising during the year were $(2,888.0), $(324.9), and $(72.6), for the years ended December 31, 2008, 2007, and 2006, respectively.
(2)      Pretax reclassification adjustments for gains (losses) and other items included in Net (loss) income were $(1,056.6), $(166.2), and $(61.9), for the years ended December 31, 2008, 2007, and 2006, respectively.

C-68

QUARTERLY DATA (UNAUDITED)

(Dollar amounts in millions, unless otherwise stated)

2008  First  Second  Third  Fourth 
 
Total revenue  $ 429.9  $ 640.2  $ 229.8  $ (171.9) 
Income (loss) before income taxes  (113.3)  137.6  (465.5)  (1,185.2) 
Income tax expense (benefit)  (51.4)  34.7  (35.7)  (192.8) 
Net income (loss)  $ (61.9)  $ 102.9  $ (429.8)  $ (992.4) 
 
2007  First  Second  Third  Fourth 
 
Total revenue  $ 512.4  $ 632.7  $ 534.7  $ 494.0 
Income (loss) before income taxes  96.6  138.1  37.1  (144.4) 
Income tax expense (benefit)  26.9  41.0  (11.1)  (58.4) 
Net income (loss)  $ 69.7  $ 97.1  $ 48.2  $ (86.0) 

C-69

FINANCIAL STATEMENTS
ING USA Annuity and Life Insurance Company
Separate Account B
Year ended December 31, 2008
with Report of Independent Registered Public Accounting Firm






                                                         S-1

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ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Financial Statements
Year ended December 31, 2008
 
 
 
Contents
 
Report of Independent Registered Public Accounting Firm   1
 
Audited Financial Statements    
 
Statements of Assets and Liabilities   4
Statements of Operations   40
Statements of Changes in Net Assets   82
Notes to Financial Statements   134

                                               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    
 
 
We have audited the accompanying statements of assets and liabilities of the Divisions constituting ING
USA Annuity and Life Insurance Company Separate Account B (the “Account”) as of December 31,
2008, 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:    
 
AIM Variable Insurance Funds:   ING Investors Trust (continued):
   AIM V.I. Leisure Fund - Series I Shares      ING Focus 5 Portfolio - Service Class
BlackRock Variable Series Funds, Inc.:      ING Franklin Income Portfolio - Service Class
   BlackRock Global Allocation V.I. Fund - Class III      ING Franklin Income Portfolio - Service 2 Class
Columbia Funds Variable Insurance Trust:      ING Franklin Mutual Shares Portfolio - Service Class
   Columbia Asset Allocation Fund, Variable Series - Class A      ING Franklin Templeton Founding Strategy Portfolio - Service
   Columbia Federal Securities Fund, Variable Series - Class A            Class
   Columbia Large Cap Growth Fund, Variable Series - Class A      ING Global Real Estate Portfolio - Service Class
   Columbia Small Cap Value Fund, Variable Series - Class B      ING Global Real Estate Portfolio - Service 2 Class
   Columbia Small Company Growth Fund, Variable Series -      ING Global Resources Portfolio - Service Class
         Class A      ING Global Resources Portfolio - Service 2 Class
Fidelity® Variable Insurance Products:      ING Global Technology Portfolio - Service Class
   Fidelity® VIP Equity-Income Portfolio - Service Class 2      ING Global Technology Portfolio - Service 2 Class
Fidelity® Variable Insurance Products II:      ING International Growth Opportunities Portfolio - Service Class
   Fidelity® VIP Contrafund® Portfolio - Service Class 2      ING International Growth Opportunities Portfolio - Service 2
Franklin Templeton Variable Insurance Products Trust:            Class
   Franklin Small Cap Value Securities Fund - Class 2      ING Janus Contrarian Portfolio - Service Class
ING GET Fund:      ING Janus Contrarian Portfolio - Service 2 Class
   ING GET Fund - Series U      ING JPMorgan Emerging Markets Equity Portfolio - Adviser
   ING GET Fund - Series V            Class
ING Investors Trust:      ING JPMorgan Emerging Markets Equity Portfolio - Service
   ING AllianceBernstein Mid Cap Growth Portfolio - Service Class            Class
   ING AllianceBernstein Mid Cap Growth Portfolio - Service 2      ING JPMorgan Small Cap Core Equity Portfolio - Service Class
         Class      ING JPMorgan Small Cap Core Equity Portfolio - Service 2
   ING American Funds Asset Allocation Portfolio            Class
   ING American Funds Bond Portfolio      ING JPMorgan Value Opportunities Portfolio - Service Class
   ING American Funds Growth Portfolio      ING JPMorgan Value Opportunities Portfolio - Service 2 Class
   ING American Funds Growth-Income Portfolio      ING Julius Baer Foreign Portfolio - Service Class
   ING American Funds International Portfolio      ING Julius Baer Foreign Portfolio - Service 2 Class
   ING American Funds World Allocation Portfolio - Service Class      ING Legg Mason Value Portfolio - Service Class
   ING BlackRock Large Cap Growth Portfolio - Institutional Class      ING Legg Mason Value Portfolio - Service 2 Class
   ING BlackRock Large Cap Growth Portfolio - Service Class      ING LifeStyle Aggressive Growth Portfolio - Service Class
   ING BlackRock Large Cap Value Portfolio - Service Class      ING LifeStyle Aggressive Growth Portfolio - Service 2 Class
   ING BlackRock Large Cap Value Portfolio - Service 2 Class      ING LifeStyle Conservative Portfolio - Service Class
   ING Capital Guardian U.S. Equities Portfolio - Service Class      ING LifeStyle Growth Portfolio - Service Class
   ING Capital Guardian U.S. Equities Portfolio - Service 2 Class      ING LifeStyle Growth Portfolio - Service 2 Class
   ING EquitiesPlus Portfolio - Service Class      ING LifeStyle Moderate Growth Portfolio - Service Class
   ING EquitiesPlus Portfolio - Service 2 Class      ING LifeStyle Moderate Growth Portfolio - Service 2 Class
   ING Evergreen Health Sciences Portfolio - Service Class      ING LifeStyle Moderate Portfolio - Service Class
   ING Evergreen Omega Portfolio - Service Class      ING LifeStyle Moderate Portfolio - Service 2 Class
   ING Evergreen Omega Portfolio - Service 2 Class      ING Limited Maturity Bond Portfolio - Service Class
   ING FMRSM Diversified Mid Cap Portfolio - Service Class      ING Liquid Assets Portfolio - Service Class
   ING FMRSM Diversified Mid Cap Portfolio - Service 2 Class      ING Liquid Assets Portfolio - Service 2 Class

ING Investors Trust (continued):   ING Partners, Inc. (continued):
   ING Lord Abbett Affiliated Portfolio - Service Class      ING Davis New York Venture Portfolio - Service Class
   ING Lord Abbett Affiliated Portfolio - Service 2 Class      ING JPMorgan International Portfolio - Service Class
   ING Marsico Growth Portfolio - Service Class      ING JPMorgan Mid Cap Value Portfolio - Service Class
   ING Marsico Growth Portfolio - Service 2 Class      ING Legg Mason Partners Aggressive Growth Portfolio - Service
   ING Marsico International Opportunities Portfolio - Service            Class
         Class      ING Neuberger Berman Partners Portfolio - Service Class
   ING MFS Total Return Portfolio - Service Class      ING Neuberger Berman Regency Portfolio - Service Class
   ING MFS Total Return Portfolio - Service 2 Class      ING OpCap Balanced Value Portfolio - Service Class
   ING MFS Utilities Portfolio - Service Class      ING Oppenheimer Global Portfolio - Initial Class
   ING Mid Cap Growth Portfolio - Service Class      ING Oppenheimer Global Portfolio - Service Class
   ING Mid Cap Growth Portfolio - Service Class 2      ING Oppenheimer Strategic Income Portfolio - Service Class
   ING Multi-Manager International Small Cap Portfolio - Class S      ING PIMCO Total Return Portfolio - Service Class
   ING Oppenheimer Active Asset Allocation Portfolio - Service      ING Solution 2015 Portfolio - Service Class
         Class      ING Solution 2025 Portfolio - Service Class
   ING Oppenheimer Main Street Portfolio® - Service Class      ING Solution 2035 Portfolio - Service Class
   ING Oppenheimer Main Street Portfolio® - Service 2 Class      ING Solution 2045 Portfolio - Service Class
   ING PIMCO Core Bond Portfolio - Service Class      ING Solution Income Portfolio - Service Class
   ING PIMCO Core Bond Portfolio - Service 2 Class      ING T. Rowe Price Diversified Mid Cap Growth Portfolio -
   ING PIMCO High Yield Portfolio - Service Class            Service Class
   ING Pioneer Fund Portfolio - Service Class      ING T. Rowe Price Growth Equity Portfolio - Service Class
   ING Pioneer Mid Cap Value Portfolio - Service Class      ING Templeton Foreign Equity Portfolio - Service Class
   ING T. Rowe Price Capital Appreciation Portfolio - Service Class      ING Thornburg Value Portfolio - Initial Class
   ING T. Rowe Price Capital Appreciation Portfolio - Service 2      ING Thornburg Value Portfolio - Service Class
         Class      ING UBS U.S. Large Cap Equity Portfolio - Service Class
   ING T. Rowe Price Equity Income Portfolio - Service Class      ING UBS U.S. Small Cap Growth Portfolio - Service Class
   ING T. Rowe Price Equity Income Portfolio - Service 2 Class      ING Van Kampen Comstock Portfolio - Service Class
   ING Templeton Global Growth Portfolio - Service Class      ING Van Kampen Equity and Income Portfolio - Initial Class
   ING Templeton Global Growth Portfolio - Service 2 Class      ING Van Kampen Equity and Income Portfolio - Service Class
   ING UBS U.S. Allocation Portfolio - Service Class   ING Strategic Allocation Portfolios, Inc.:
   ING UBS U.S. Allocation Portfolio - Service 2 Class      ING VP Strategic Allocation Conservative Portfolio - Class S
   ING Van Kampen Capital Growth Portfolio - Service Class      ING VP Strategic Allocation Growth Portfolio - Class S
   ING Van Kampen Capital Growth Portfolio - Service 2 Class      ING VP Strategic Allocation Moderate Portfolio - Class S
   ING Van Kampen Global Franchise Portfolio - Service Class   ING Variable Funds:
   ING Van Kampen Global Franchise Portfolio - Service 2 Class      ING VP Growth and Income Portfolio - Class I
   ING Van Kampen Global Tactical Asset Allocation Portfolio -      ING VP Growth and Income Portfolio - Class S
         Service Class   ING Variable Insurance Trust:
   ING Van Kampen Growth and Income Portfolio - Service Class      ING GET U.S. Core Portfolio - Series 1
   ING Van Kampen Growth and Income Portfolio - Service 2 Class      ING GET U.S. Core Portfolio - Series 2
   ING Van Kampen Large Cap Growth Portfolio - Service Class      ING GET U.S. Core Portfolio - Series 3
   ING Van Kampen Real Estate Portfolio - Service Class      ING GET U.S. Core Portfolio - Series 4
   ING Van Kampen Real Estate Portfolio - Service 2 Class      ING GET U.S. Core Portfolio - Series 5
   ING VP Index Plus International Equity Portfolio - Service Class      ING GET U.S. Core Portfolio - Series 6
   ING VP Index Plus International Equity Portfolio - Service 2      ING GET U.S. Core Portfolio - Series 7
         Class      ING GET U.S. Core Portfolio - Series 8
   ING Wells Fargo Disciplined Value Portfolio - Service Class      ING GET U.S. Core Portfolio - Series 9
   ING Wells Fargo Disciplined Value Portfolio - Service 2 Class      ING GET U.S. Core Portfolio - Series 10
   ING Wells Fargo Small Cap Disciplined Portfolio - Service Class      ING GET U.S. Core Portfolio - Series 11
   ING Wells Fargo Small Cap Disciplined Portfolio - Service 2      ING GET U.S. Core Portfolio - Series 12
         Class      ING GET U.S. Core Portfolio - Series 13
ING Mutual Funds:      ING GET U.S. Core Portfolio - Series 14
   ING Diversified International Fund - Class R      ING VP Global Equity Dividend Portfolio
ING Partners, Inc.:   ING Variable Portfolios, Inc.:
   ING American Century Large Company Value Portfolio - Service      ING BlackRock Global Science and Technology Portfolio -
         Class            Class S
   ING American Century Small-Mid Cap Value Portfolio - Service      ING Global Equity Option Portfolio - Class S
         Class      ING International Index Portfolio - Class S
   ING Baron Small Cap Growth Portfolio - Service Class      ING Lehman Brothers U.S. Aggregate Bond Index® Portfolio -
   ING Columbia Small Cap Value II Portfolio - Service Class            Class S
       ING Opportunistic Large Cap Growth Portfolio - Class S

ING Variable Portfolios, Inc. (continued):   Legg Mason Partners Variable Income Trust:
   ING Opportunistic Large Cap Value Portfolio - Class S      Legg Mason Partners Variable High Income Portfolio
   ING Russell™ Global Large Cap Index 85% Portfolio - Class S      Legg Mason Partners Variable Money Market Portfolio
   ING Russell™ Large Cap Index Portfolio - Class S   Oppenheimer Variable Account Funds:
   ING Russell™ Mid Cap Index Portfolio - Class S      Oppenheimer Main Street Small Cap Fund®/VA - Service Class
   ING Russell™ Small Cap Index Portfolio - Class S   PIMCO Variable Insurance Trust:
   ING VP Index Plus LargeCap Portfolio - Class S      PIMCO Real Return Portfolio - Administrative Class
   ING VP Index Plus MidCap Portfolio - Class S   Pioneer Variable Contracts Trust:
   ING VP Index Plus SmallCap Portfolio - Class S      Pioneer Equity Income VCT Portfolio - Class II
   ING VP Small Company Portfolio - Class S      Pioneer Small Cap Value VCT Portfolio - Class II
   ING WisdomTreeSM Global High-Yielding Equity Index Portfolio   ProFunds:
         - Class S      ProFund VP Bull
ING Variable Products Trust:      ProFund VP Europe 30
   ING VP Financial Services Portfolio - Class S      ProFund VP Rising Rates Opportunity
   ING VP International Value Portfolio - Class S      ProFund VP Small-Cap
   ING VP MidCap Opportunities Portfolio - Class S   Wells Fargo Funds Trust:
   ING VP Real Estate Portfolio - Class S      Wells Fargo Advantage Asset Allocation Fund
   ING VP SmallCap Opportunities Portfolio - Class S      Wells Fargo Advantage C&B Large Cap Value Fund
ING VP Balanced Portfolio, Inc.:      Wells Fargo Advantage Equity Income Fund
   ING VP Balanced Portfolio - Class S      Wells Fargo Advantage Large Company Growth Fund
ING VP Intermediate Bond Portfolio:      Wells Fargo Advantage Money Market Fund
   ING VP Intermediate Bond Portfolio - Class S      Wells Fargo Advantage Small Cap Growth Fund
Legg Mason Partners Variable Equity Trust:      Wells Fargo Advantage Total Return Bond Fund
   Legg Mason Partners Variable International All Cap Opportunity    
         Portfolio    
   Legg Mason Partners Variable Investors Portfolio    

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. We were not engaged
to perform an audit of the Account’s internal control over financial reporting. Our audits included
consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Account’s internal control over financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. Our procedures included
confirmation of securities owned as of December 31, 2008, 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 respective Divisions constituting ING USA Annuity and Life Insurance
Company Separate Account B at December 31, 2008, 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 12, 2009

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

                Columbia    
        BlackRock   Columbia Asset   Federal   Columbia Large
    AIM V.I.   Global   Allocation   Securities Fund,   Cap Growth
    Leisure Fund -   Allocation V.I.   Fund, Variable   Variable Series -   Fund, Variable
    Series I Shares   Fund - Class III   Series - Class A   Class A   Series - Class A
Assets                    
Investments in mutual funds                    
at fair value   $ 17,867   $ 397,837   $ 262   $ 27   $ 258
Total assets   17,867   397,837   262   27   258
 
Liabilities                    
Payable to related parties   5   37   -   -   -
Total liabilities   5   37   -   -   -
Net assets   $ 17,862   $ 397,800   $ 262   $ 27   $ 258
 
Net assets                    
Accumulation units   $ 17,862   $ 397,800   $ 262   $ 27   $ 258
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 17,862   $ 397,800   $ 262   $ 27   $ 258
 
Total number of mutual fund shares   3,559,207   35,206,853   28,059   2,518   13,836
 
Cost of mutual fund shares   $ 35,031   $ 452,091   $ 389   $ 26   $ 333
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        4            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

Columbia Small
    Columbia Small   Company   Fidelity® VIP   Fidelity® VIP   Franklin Small
    Cap Value   Growth Fund,   Equity-Income   Contrafund®   Cap Value
    Fund, Variable   Variable Series -   Portfolio -   Portfolio -   Securities Fund
    Series - Class B   Class A   Service Class 2   Service Class 2   - Class 2
Assets                    
Investments in mutual funds                    
at fair value   $ 141,775   $ 51   $ 167,089   $ 656,597   $ 7,246
Total assets   141,775   51   167,089   656,597   7,246
 
Liabilities                    
Payable to related parties   36   -   33   99   -
Total liabilities   36   -   33   99   -
Net assets   $ 141,739   $ 51   $ 167,056   $ 656,498   $ 7,246
 
Net assets                    
Accumulation units   $ 141,739   $ 51   $ 167,056   $ 656,498   $ 7,246
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 141,739   $ 51   $ 167,056   $ 656,498   $ 7,246
 
Total number of mutual fund shares   12,535,361   6,719   12,853,032   43,368,381   686,863
 
Cost of mutual fund shares   $ 216,013   $ 66   $ 311,897   $ 1,226,782   $ 11,668
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
               5            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING   ING            
    AllianceBernstein   AllianceBernstein   ING American        
    Mid Cap Growth   Mid Cap Growth   Funds Asset   ING American   ING American
    Portfolio - Service   Portfolio - Service 2   Allocation   Funds Bond   Funds Growth
    Class   Class   Portfolio   Portfolio   Portfolio
Assets                        
Investments in mutual funds                        
at fair value   $ 191,643   $ 8,866   $ 148,381   $ 252,197   $ 1,544,528
Total assets   191,643       8,866   148,381   252,197   1,544,528
 
Liabilities                        
Payable to related parties   56       2   12   29   263
Total liabilities   56       2   12   29   263
Net assets   $ 191,587   $ 8,864   $ 148,369   $ 252,168   $ 1,544,265
 
Net assets                        
Accumulation units   $ 191,587   $ 8,864   $ 148,369   $ 252,168   $ 1,544,265
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 191,587   $ 8,864   $ 148,369   $ 252,168   $ 1,544,265
 
Total number of mutual fund shares   25,932,725       1,216,167   20,438,182   27,959,716   42,362,263
 
Cost of mutual fund shares   $ 390,719   $ 18,715   $ 171,306   $ 267,854   $ 2,299,761
 
 
 
 
                         The accompanying notes are an integral part of these financial statements.    
 
        6                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

                    ING BlackRock    
                ING American   Large Cap    ING BlackRock
    ING American   ING American   Funds World   Growth   Large Cap
    Funds Growth-   Funds   Allocation   Portfolio -   Growth
    Income   International   Portfolio -   Institutional   Portfolio -
    Portfolio   Portfolio   Service Class   Class   Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 1,075,062   $ 953,930   $ 13,128   $ 131   $ 94,366
Total assets   1,075,062       953,930   13,128   131   94,366
 
Liabilities                        
Payable to related parties   177       154   -   -   21
Total liabilities   177       154   -   -   21
Net assets   $ 1,074,885   $ 953,776   $ 13,128   $ 131   $ 94,345
 
Net assets                        
Accumulation units   $ 1,074,885   $ 953,776   $ 13,128   $ 131   $ 94,345
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 1,074,885   $ 953,776   $ 13,128   $ 131   $ 94,345
 
Total number of mutual fund shares   41,316,750   68,186,539   1,636,916   19,575   14,190,396
 
Cost of mutual fund shares   $ 1,552,114   $ 1,361,274   $ 12,742   $ 238   $ 149,116
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
             7                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING BlackRock   ING BlackRock   ING Evergreen        
    Large Cap   Large Cap   Health Sciences   ING Evergreen   ING Evergreen
    Value Portfolio -   Value Portfolio -   Portfolio -   Omega Portfolio   Omega Portfolio
    Service Class   Service 2 Class   Service Class   - Service Class   - Service 2 Class
Assets                    
Investments in mutual funds                    
at fair value   $ 27,603   $ 2,212   $ 164,780   $ 8,918   $ 802
Total assets   27,603   2,212   164,780   8,918   802
 
Liabilities                    
Payable to related parties   6   -   31   2   -
Total liabilities   6   -   31   2   -
Net assets   $ 27,597   $ 2,212   $ 164,749   $ 8,916   $ 802
 
Net assets                    
Accumulation units   $ 27,597   $ 2,212   $ 164,749   $ 8,916   $ 802
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 27,597   $ 2,212   $ 164,749   $ 8,916   $ 802
 
Total number of mutual fund shares   3,217,176   259,368   19,227,502   1,095,624   99,001
 
Cost of mutual fund shares   $ 42,852   $ 3,260   $ 214,146   $ 10,000   $ 1,071
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
               8            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING FMRSM   ING FMRSM       ING Franklin   ING Franklin
    Diversified Mid   Diversified Mid   ING Focus 5   Income   Income
Cap Portfolio - Cap Portfolio - Portfolio - Portfolio - Portfolio -
    Service Class   Service 2 Class   Service Class   Service Class   Service 2 Class
Assets                        
Investments in mutual funds                        
at fair value   $ 581,232   $ 25,392   $ 130,766   $ 288,460   $ 5,853
Total assets   581,232       25,392   130,766   288,460   5,853
 
Liabilities                        
Payable to related parties   150       5   17   43   1
Total liabilities   150       5   17   43   1
Net assets   $ 581,082   $ 25,387   $ 130,749   $ 288,417   $ 5,852
 
Net assets                        
Accumulation units   $ 581,080   $ 25,387   $ 130,749   $ 288,417   $ 5,852
Contracts in payout (annuitization)   2       -   -   -   -
Total net assets   $ 581,082   $ 25,387   $ 130,749   $ 288,417   $ 5,852
 
Total number of mutual fund shares   67,980,331       2,980,326   22,623,896   37,855,580   770,147
 
Cost of mutual fund shares   $ 934,808   $ 39,662   $ 209,076   $ 410,062   $ 8,382
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        9                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

ING Franklin
Templeton
    ING Franklin   Founding   ING Global   ING Global   ING Global
    Mutual Shares   Strategy   Real Estate   Real Estate   Resources
    Portfolio -      Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service Class   Service Class   Service 2 Class   Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 146,335   $ 684,111   $ 118,568   $ 1,695   $ 547,111
Total assets   146,335       684,111   118,568   1,695   547,111
 
Liabilities                        
Payable to related parties   21       92   18   -   110
Total liabilities   21       92   18   -   110
Net assets   $ 146,314   $ 684,019   $ 118,550   $ 1,695   $ 547,001
 
Net assets                        
Accumulation units   $ 146,314   $ 684,019   $ 118,550   $ 1,695   $ 546,991
Contracts in payout (annuitization)   -       -   -   -   10
Total net assets   $ 146,314   $ 684,019   $ 118,550   $ 1,695   $ 547,001
 
Total number of mutual fund shares   25,538,378   109,809,214   16,723,226   238,374   41,988,603
 
Cost of mutual fund shares   $ 229,599   $ 1,000,196   $ 203,771   $ 3,057   $ 958,311
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           10                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

        ING   ING        
        International   International        
    ING Global   Growth   Growth   ING Janus   ING Janus
    Resources   Opportunities   Opportunities   Contrarian   Contrarian
    Portfolio -      Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service 2 Class   Service Class   Service 2 Class   Service Class   Service 2 Class
Assets                        
Investments in mutual funds                        
at fair value   $ 22,535   $ 53,186   $ 4,452   $ 408,064   $ 18,748
Total assets   22,535       53,186   4,452   408,064   18,748
 
Liabilities                        
Payable to related parties   4       17   1   91   3
Total liabilities   4       17   1   91   3
Net assets   $ 22,531   $ 53,169   $ 4,451   $ 407,973   $ 18,745
 
Net assets                        
Accumulation units   $ 22,531   $ 53,169   $ 4,451   $ 407,973   $ 18,745
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 22,531   $ 53,169   $ 4,451   $ 407,973   $ 18,745
 
Total number of mutual fund shares   1,742,850   15,461,059   1,305,707   52,248,908   2,419,144
 
Cost of mutual fund shares   $ 37,073   $ 128,110   $ 10,656   $ 823,854   $ 38,613
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           11                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING JPMorgan   ING JPMorgan           ING JPMorgan
    Emerging   Emerging   ING JPMorgan ING JPMorgan     Value
    Markets Equity   Markets Equity   Small Cap Core   Small Cap Core   Opportunities
    Portfolio -   Portfolio -   Equity Portfolio   Equity Portfolio   Portfolio -
    Adviser Class   Service Class   - Service Class   - Service 2 Class   Service Class
Assets                    
Investments in mutual funds                    
at fair value   $ 20,690   $ 414,955   $ 126,347   $ 30,014   $ 18,228
Total assets   20,690   414,955   126,347   30,014   18,228
 
Liabilities                    
Payable to related parties   4   87   24   6   4
Total liabilities   4   87   24   6   4
Net assets   $ 20,686   $ 414,868   $ 126,323   $ 30,008   $ 18,224
 
Net assets                    
Accumulation units   $ 20,686   $ 414,864   $ 126,323   $ 30,008   $ 18,224
Contracts in payout (annuitization)   -   4   -   -   -
Total net assets   $ 20,686   $ 414,868   $ 126,323   $ 30,008   $ 18,224
 
Total number of mutual fund shares   1,735,715   34,550,801   15,041,315   3,603,076   3,048,082
 
Cost of mutual fund shares   $ 28,189   $ 675,995   $ 199,229   $ 44,772   $ 35,729
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           12            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING JPMorgan                
    Value   ING Julius Baer   ING Julius Baer   ING Legg   ING Legg
    Opportunities   Foreign   Foreign   Mason Value   Mason Value
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service 2 Class   Service Class   Service 2 Class   Service Class   Service 2 Class
Assets                    
Investments in mutual funds                    
at fair value   $ 690   $ 499,354   $ 38,962   $ 127,083   $ 9,710
Total assets   690   499,354   38,962   127,083   9,710
 
Liabilities                    
Payable to related parties   -   85   7   31   2
Total liabilities   -   85   7   31   2
Net assets   $ 690   $ 499,269   $ 38,955   $ 127,052   $ 9,708
 
Net assets                    
Accumulation units   $ 690   $ 499,269   $ 38,955   $ 127,052   $ 9,708
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 690   $ 499,269   $ 38,955   $ 127,052   $ 9,708
 
Total number of mutual fund shares   115,779   53,521,293   4,198,462   37,487,584   2,889,930
 
Cost of mutual fund shares   $ 1,338   $ 813,474   $ 57,978   $ 305,057   $ 24,124
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
             13            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING LifeStyle   ING LifeStyle            
    Aggressive   Aggressive   ING LifeStyle   ING LifeStyle   ING LifeStyle
    Growth   Growth   Conservative   Growth   Growth
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service Class   Service 2 Class
Assets                        
Investments in mutual funds                        
at fair value   $ 750,871   $ 2,765   $ 127,851   $ 2,923,992   $ 9,574
Total assets   750,871       2,765   127,851   2,923,992   9,574
 
Liabilities                        
Payable to related parties   219       1   17   -   1
Total liabilities   219       1   17   -   1
Net assets   $ 750,652   $ 2,764   $ 127,834   $ 2,923,992   $ 9,573
 
Net assets                        
Accumulation units   $ 750,652   $ 2,764   $ 127,834   $ 2,923,992   $ 9,573
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 750,652   $ 2,764   $ 127,834   $ 2,923,992   $ 9,573
 
Total number of mutual fund shares   104,578,098       386,188   16,001,356   367,797,780   1,208,876
 
Cost of mutual fund shares   $ 1,272,870   $ 4,891   $ 127,152   $ 4,448,082   $ 15,183
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           14                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING LifeStyle   ING LifeStyle            
    Moderate   Moderate   ING LifeStyle   ING LifeStyle   ING Limited
    Growth          Growth   Moderate   Moderate   Maturity Bond
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class   Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 2,433,113   $ 11,155   $ 1,401,602   $ 11,315   $ 130,428
Total assets   2,433,113       11,155   1,401,602   11,315   130,428
 
Liabilities                        
Payable to related parties   383       2   196   1   33
Total liabilities   383       2   196   1   33
Net assets   $ 2,432,730   $ 11,153   $ 1,401,406   $ 11,314   $ 130,395
 
Net assets                        
Accumulation units   $ 2,432,730   $ 11,153   $ 1,401,406   $ 11,314   $ 130,373
Contracts in payout (annuitization)   -       -   -   -   22
Total net assets   $ 2,432,730   $ 11,153   $ 1,401,406   $ 11,314   $ 130,395
 
Total number of mutual fund shares   293,854,212   1,352,111   159,092,175   1,290,229   12,650,647
 
Cost of mutual fund shares   $ 3,422,092   $ 16,955   $ 1,834,135   $ 15,393   $ 142,307
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           15                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

            ING Lord   ING Lord    
            Abbett   Abbett   ING Marsico
    ING Liquid   ING Liquid   Affiliated   Affiliated   Growth
    Assets Portfolio   Assets Portfolio   Portfolio -   Portfolio -   Portfolio -
    - Service Class   - Service 2 Class   Service Class   Service 2 Class   Service Class
Assets                    
Investments in mutual funds                    
at fair value   $ 2,331,770   $ 56,293   $ 58,626   $ 1,892   $ 397,566
Total assets   2,331,770   56,293   58,626   1,892   397,566
 
Liabilities                    
Payable to related parties   303   5   15   -   130
Total liabilities   303   5   15   -   130
Net assets   $ 2,331,467   $ 56,288   $ 58,611   $ 1,892   $ 397,436
 
Net assets                    
Accumulation units   $ 2,331,467   $ 56,288   $ 58,611   $ 1,892   $ 397,436
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 2,331,467   $ 56,288   $ 58,611   $ 1,892   $ 397,436
 
Total number of mutual fund shares   2,331,770,068   56,293,045   8,923,320   289,236   35,370,596
 
Cost of mutual fund shares   $ 2,331,770   $ 56,293   $ 94,075   $ 3,199   $ 434,733
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
             16            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

ING Marsico
    ING Marsico   International           ING MFS
    Growth   Opportunities   ING MFS Total   ING MFS Total   Utilities
    Portfolio -      Portfolio -   Return Portfolio   Return Portfolio   Portfolio -
    Service 2 Class   Service Class   - Service Class   - Service 2 Class   Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 14,279   $ 160,219   $ 740,915   $ 32,710   $ 347,900
Total assets   14,279       160,219   740,915   32,710   347,900
 
Liabilities                        
Payable to related parties   2       28   176   5   75
Total liabilities   2       28   176   5   75
Net assets   $ 14,277   $ 160,191   $ 740,739   $ 32,705   $ 347,825
 
Net assets                        
Accumulation units   $ 14,277   $ 160,191   $ 740,739   $ 32,705   $ 347,825
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 14,277   $ 160,191   $ 740,739   $ 32,705   $ 347,825
 
Total number of mutual fund shares   1,279,490   20,916,286   62,261,736   2,767,331   36,582,516
 
Cost of mutual fund shares   $ 18,532   $ 302,269   $ 1,015,353   $ 48,009   $ 560,492
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           17                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING Multi-   ING            
    Manager   Oppenheimer   ING   ING    
    International   Active Asset   Oppenheimer   Oppenheimer   ING PIMCO
    Small Cap      Allocation   Main Street   Main Street   Core Bond
    Portfolio -      Portfolio -   Portfolio® -   Portfolio® -   Portfolio -
    Class S   Service Class   Service Class   Service 2 Class   Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 2,636   $ 3,471   $ 195,531   $ 2,633   $ 2,112,545
Total assets   2,636       3,471   195,531   2,633   2,112,545
 
Liabilities                        
Payable to related parties   -       -   67   -   271
Total liabilities   -       -   67   -   271
Net assets   $ 2,636   $ 3,471   $ 195,464   $ 2,633   $ 2,112,274
 
Net assets                        
Accumulation units   $ 2,636   $ 3,471   $ 195,464   $ 2,633   $ 2,112,274
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 2,636   $ 3,471   $ 195,464   $ 2,633   $ 2,112,274
 
Total number of mutual fund shares   488,139       453,703   16,066,633   217,034   184,019,598
 
Cost of mutual fund shares   $ 3,488   $ 3,446   $ 220,579   $ 3,609   $ 2,088,745
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           18                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

                  ING T. Rowe
    ING PIMCO   ING PIMCO       ING Pioneer   Price Capital
    Core Bond   High Yield   ING Pioneer   Mid Cap Value   Appreciation
    Portfolio -      Portfolio -   Fund Portfolio -   Portfolio -   Portfolio -
    Service 2 Class   Service Class   Service Class   Service Class   Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 61,411   $ 326,779   $ 45,737   $ 494,320   $ 1,962,421
Total assets   61,411       326,779   45,737   494,320   1,962,421
 
Liabilities                        
Payable to related parties   8       615   10   121   389
Total liabilities   8       615   10   121   389
Net assets   $ 61,403   $ 326,164   $ 45,727   $ 494,199   $ 1,962,032
 
Net assets                        
Accumulation units   $ 61,403   $ 326,164   $ 45,727   $ 494,144   $ 1,961,754
Contracts in payout (annuitization)   -       -   -   55   278
Total net assets   $ 61,403   $ 326,164   $ 45,727   $ 494,199   $ 1,962,032
 
Total number of mutual fund shares   5,377,476   46,549,675   5,767,647   65,213,679   127,264,661
 
Cost of mutual fund shares   $ 59,574   $ 466,050   $ 65,975   $ 709,751   $ 2,720,517
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           19                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING T. Rowe   ING T. Rowe   ING T. Rowe        
    Price Capital   Price Equity   Price Equity   ING Templeton   ING Templeton
    Appreciation   Income   Income   Global Growth  Global Growth  
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service 2 Class   Service Class   Service 2 Class   Service Class   Service 2 Class
Assets                        
Investments in mutual funds                        
at fair value   $ 69,540   $ 554,084   $ 20,164   $ 234,492   $ 3,739
Total assets   69,540       554,084   20,164   234,492   3,739
 
Liabilities                        
Payable to related parties   11       124   4   52   1
Total liabilities   11       124   4   52   1
Net assets   $ 69,529   $ 553,960   $ 20,160   $ 234,440   $ 3,738
 
Net assets                        
Accumulation units   $ 69,529   $ 553,806   $ 20,160   $ 234,416   $ 3,738
Contracts in payout (annuitization)   -       154   -   24   -
Total net assets   $ 69,529   $ 553,960   $ 20,160   $ 234,440   $ 3,738
 
Total number of mutual fund shares   4,527,326   65,494,546   2,394,822   28,492,347   457,051
 
Cost of mutual fund shares   $ 106,701   $ 787,707   $ 31,363   $ 321,900   $ 5,919
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           20                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

                    ING Van
    ING Van   ING Van   ING Van   ING Van   Kampen Global
    Kampen Capital   Kampen Capital   Kampen Global   Kampen Global   Tactical Asset
    Growth   Growth   Franchise   Franchise   Allocation
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class   Service Class
Assets                    
Investments in mutual funds                    
at fair value   $ 110,864   $ 12   $ 215,689   $ 53,291   $ 2,725
Total assets   110,864   12   215,689   53,291   2,725
 
Liabilities                    
Payable to related parties   27   -   42   10   -
Total liabilities   27   -   42   10   -
Net assets   $ 110,837   $ 12   $ 215,647   $ 53,281   $ 2,725
 
Net assets                    
Accumulation units   $ 110,837   $ 12   $ 215,647   $ 53,281   $ 2,725
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 110,837   $ 12   $ 215,647   $ 53,281   $ 2,725
 
Total number of mutual fund shares   16,137,472   1,741   19,806,196   4,920,724   316,548
 
Cost of mutual fund shares   $ 205,491   $ 15   $ 287,632   $ 63,852   $ 2,624
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
             21            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING Van   ING Van            
    Kampen   Kampen           ING VP Index
    Growth and   Growth and   ING Van   ING Van   Plus
    Income   Income   Kampen Real   Kampen Real   International
    Portfolio -   Portfolio -   Estate Portfolio   Estate Portfolio   Equity Portfolio
    Service Class   Service 2 Class   - Service Class   - Service 2 Class   - Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 429,071   $ 44,670   $ 270,914   $ 15,859   $ 17,252
Total assets   429,071       44,670   270,914   15,859   17,252
 
Liabilities                        
Payable to related parties   115       8   76   3   3
Total liabilities   115       8   76   3   3
Net assets   $ 428,956   $ 44,662   $ 270,838   $ 15,856   $ 17,249
 
Net assets                        
Accumulation units   $ 428,924   $ 44,662   $ 270,821   $ 15,856   $ 17,249
Contracts in payout (annuitization)   32       -   17   -   -
Total net assets   $ 428,956   $ 44,662   $ 270,838   $ 15,856   $ 17,249
 
Total number of mutual fund shares   27,173,600   2,839,811   19,241,032   1,131,972   3,349,952
 
Cost of mutual fund shares   $ 610,351   $ 68,444   $ 560,502   $ 31,494   $ 37,521
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           22                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING VP Index   ING Wells   ING Wells       ING American
    Plus   Fargo Small   Fargo Small       Century Large
    International   Cap Disciplined   Cap Disciplined   ING Diversified   Company Value
    Equity Portfolio   Portfolio -   Portfolio -   International   Portfolio -
    - Service 2 Class   Service Class   Service 2 Class   Fund - Class R   Service Class
Assets                    
Investments in mutual funds                    
at fair value   $ 284   $ 6,595   $ 369   $ 182   $ 385
Total assets   284   6,595   369   182   385
 
Liabilities                    
Payable to related parties   -   1   -   -   -
Total liabilities   -   1   -   -   -
Net assets   $ 284   $ 6,594   $ 369   $ 182   $ 385
 
Net assets                    
Accumulation units   $ 284   $ 6,594   $ 369   $ 182   $ 385
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 284   $ 6,594   $ 369   $ 182   $ 385
 
Total number of mutual fund shares   54,696   1,053,515   59,152   28,368   82,371
 
Cost of mutual fund shares   $ 622   $ 11,413   $ 642   $ 342   $ 810
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           23            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING American   ING Baron   ING Columbia        
    Century Small-   Small Cap   Small Cap   ING Davis New   ING JPMorgan
    Mid Cap Value   Growth   Value II   York Venture   Mid Cap Value
    Portfolio -      Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service Class   Service Class   Service Class   Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 404   $ 177,288   $ 136,108   $ 185,923   $ 35,669
Total assets   404       177,288   136,108   185,923   35,669
 
Liabilities                        
Payable to related parties   -       -   18   23   5
Total liabilities   -       -   18   23   5
Net assets   $ 404   $ 177,288   $ 136,090   $ 185,900   $ 35,664
 
Net assets                        
Accumulation units   $ 404   $ 177,288   $ 136,090   $ 185,900   $ 35,664
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 404   $ 177,288   $ 136,090   $ 185,900   $ 35,664
 
Total number of mutual fund shares   55,047   16,000,735   19,957,196   15,264,590   3,839,496
 
Cost of mutual fund shares   $ 641   $ 281,371   $ 195,563   $ 281,561   $ 45,748
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           24                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING Legg             ING
    Mason Partners   ING Neuberger           Oppenheimer
    Aggressive   Berman   ING   ING   Strategic
    Growth   Partners   Oppenheimer   Oppenheimer   Income
    Portfolio -   Portfolio -   Global Portfolio   Global Portfolio   Portfolio -
    Service Class   Service Class   - Initial Class   - Service Class   Service Class
Assets                        
Investments in mutual funds                        
at fair value   $ 79,378   $ 58,346   $ 6,612   $ 105,350   $ 8,886
Total assets   79,378       58,346   6,612   105,350   8,886
 
Liabilities                        
Payable to related parties   19       19   1   17   -
Total liabilities   19       19   1   17   -
Net assets   $ 79,359   $ 58,327   $ 6,611   $ 105,333   $ 8,886
 
Net assets                        
Accumulation units   $ 79,359   $ 58,327   $ 6,611   $ 105,333   $ 8,886
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 79,359   $ 58,327   $ 6,611   $ 105,333   $ 8,886
 
Total number of mutual fund shares   2,750,435   10,647,032   728,197   11,930,871   991,734
 
Cost of mutual fund shares   $ 112,422   $ 115,465   $ 9,228   $ 179,251   $ 10,975
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           25                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING PIMCO                
    Total Return   ING Solution   ING Solution   ING Solution   ING Solution
    Portfolio -   2015 Portfolio -   2025 Portfolio -   2035 Portfolio -   2045 Portfolio -
    Service Class   Service Class   Service Class   Service Class   Service Class
Assets                    
Investments in mutual funds                    
at fair value   $ 8,589   $ 11,249   $ 9,139   $ 7,955   $ 1,225
Total assets   8,589   11,249   9,139   7,955   1,225
 
Liabilities                    
Payable to related parties   -   -   1   1   -
Total liabilities   -   -   1   1   -
Net assets   $ 8,589   $ 11,249   $ 9,138   $ 7,954   $ 1,225
 
Net assets                    
Accumulation units   $ 8,589   $ 11,249   $ 9,138   $ 7,954   $ 1,225
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 8,589   $ 11,249   $ 9,138   $ 7,954   $ 1,225
 
Total number of mutual fund shares   780,154   1,290,024   1,121,333   991,921   154,234
 
Cost of mutual fund shares   $ 8,908   $ 15,098   $ 12,833   $ 12,570   $ 1,946
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        26            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

ING T. Rowe
Price Diversified
    ING Solution   Mid Cap   ING T. Rowe   ING Templeton    
    Income   Growth   Price Growth   Foreign Equity ING Thornburg  
    Portfolio -   Portfolio -   Equity Portfolio   Portfolio -   Value Portfolio -
    Service Class   Service Class   - Service Class   Service Class   Initial Class
Assets                    
Investments in mutual funds                    
at fair value   $ 5,469   $ 3,090   $ 30,429   $ 159,752   $ 1,193
Total assets   5,469   3,090   30,429   159,752   1,193
 
Liabilities                    
Payable to related parties   -   -   4   26   -
Total liabilities   -   -   4   26   -
Net assets   $ 5,469   $ 3,090   $ 30,425   $ 159,726   $ 1,193
 
Net assets                    
Accumulation units   $ 5,469   $ 3,090   $ 30,425   $ 159,726   $ 1,193
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 5,469   $ 3,090   $ 30,425   $ 159,726   $ 1,193
 
Total number of mutual fund shares   583,619   682,146   937,726   20,324,649   58,549
 
Cost of mutual fund shares   $ 6,493   $ 5,538   $ 48,903   $ 257,360   $ 1,488
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
             27            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

            ING Van   ING Van   ING Van
        ING UBS U.S.   Kampen   Kampen Equity   Kampen Equity
    ING Thornburg   Large Cap   Comstock   and Income   and Income
    Value Portfolio -   Equity Portfolio   Portfolio -   Portfolio -   Portfolio -
    Service Class   - Service Class   Service Class   Initial Class   Service Class
Assets                    
Investments in mutual funds                    
at fair value   $ 4,949   $ 6,145   $ 135,227   $ 2,103   $ 169,926
Total assets   4,949   6,145   135,227   2,103   169,926
 
Liabilities                    
Payable to related parties   1   -   23   27   -
Total liabilities   1   -   23   27   -
Net assets   $ 4,948   $ 6,145   $ 135,204   $ 2,076   $ 169,926
 
Net assets                    
Accumulation units   $ 4,948   $ 6,145   $ 135,204   $ 2,076   $ 169,926
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 4,948   $ 6,145   $ 135,204   $ 2,076   $ 169,926
 
Total number of mutual fund shares   244,276   999,143   18,992,555   81,671   6,642,926
 
Cost of mutual fund shares   $ 7,916   $ 10,243   $ 219,628   $ 2,711   $ 230,621
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           28            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING VP   ING VP   ING VP        
    Strategic   Strategic   Strategic        
    Allocation   Allocation   Allocation   ING VP Growth   ING VP Growth
    Conservative   Growth   Moderate   and Income   and Income
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Class S   Class S   Class S   Class I   Class S
Assets                    
Investments in mutual funds                    
at fair value   $ 1,170   $ 512   $ 573   $ 90   $ 274,784
Total assets   1,170   512   573   90   274,784
 
Liabilities                    
Payable to related parties   -   -   -   -   78
Total liabilities   -   -   -   -   78
Net assets   $ 1,170   $ 512   $ 573   $ 90   $ 274,706
 
Net assets                    
Accumulation units   $ 1,170   $ 512   $ 573   $ 90   $ 274,706
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 1,170   $ 512   $ 573   $ 90   $ 274,706
 
Total number of mutual fund shares   129,188   56,957   63,215   5,937   18,318,929
 
Cost of mutual fund shares   $ 1,653   $ 866   $ 891   $ 146   $ 386,392
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           29            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.
    Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -
    Series 3   Series 4   Series 5   Series 6   Series 7
Assets                    
Investments in mutual funds                    
at fair value   $ 38,792   $ 26,987   $ 16,934   $ 18,710   $ 11,950
Total assets   38,792   26,987   16,934   18,710   11,950
 
Liabilities                    
Payable to related parties   8   7   3   2   2
Total liabilities   8   7   3   2   2
Net assets   $ 38,784   $ 26,980   $ 16,931   $ 18,708   $ 11,948
 
Net assets                    
Accumulation units   $ 38,784   $ 26,980   $ 16,931   $ 18,708   $ 11,948
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 38,784   $ 26,980   $ 16,931   $ 18,708   $ 11,948
 
Total number of mutual fund shares   4,087,708   3,208,924   2,143,484   2,295,703   1,491,866
 
Cost of mutual fund shares   $ 40,825   $ 31,607   $ 20,761   $ 22,421   $ 14,384
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        30            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.
    Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -
    Series 8   Series 9   Series 10   Series 11   Series 12
Assets                    
Investments in mutual funds                    
at fair value   $ 7,401   $ 6,081   $ 5,125   $ 7,709   $ 2,781
Total assets   7,401   6,081   5,125   7,709   2,781
 
Liabilities                    
Payable to related parties   2   1   -   1   -
Total liabilities   2   1   -   1   -
Net assets   $ 7,399   $ 6,080   $ 5,125   $ 7,708   $ 2,781
 
Net assets                    
Accumulation units   $ 7,399   $ 6,080   $ 5,125   $ 7,708   $ 2,781
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 7,399   $ 6,080   $ 5,125   $ 7,708   $ 2,781
 
Total number of mutual fund shares   928,640   766,854   615,950   936,687   348,111
 
Cost of mutual fund shares   $ 9,018   $ 7,375   $ 6,021   $ 8,951   $ 3,341
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        31            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

            ING BlackRock        
            Global Science   ING Global   ING
    ING GET U.S.   ING GET U.S.   and Technology   Equity Option   International
    Core Portfolio -   Core Portfolio -   Portfolio -   Portfolio -   Index Portfolio -
    Series 13   Series 14   Class S   Class S   Class S
Assets                    
Investments in mutual funds                    
at fair value   $ 23,087   $ 76,244   $ 87,442   $ 2,044   $ 6,041
Total assets   23,087   76,244   87,442   2,044   6,041
 
Liabilities                    
Payable to related parties   2   17   16   -   -
Total liabilities   2   17   16   -   -
Net assets   $ 23,085   $ 76,227   $ 87,426   $ 2,044   $ 6,041
 
Net assets                    
Accumulation units   $ 23,085   $ 76,227   $ 87,426   $ 2,044   $ 6,041
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 23,085   $ 76,227   $ 87,426   $ 2,044   $ 6,041
 
Total number of mutual fund shares   2,308,724   7,289,098   26,905,299   262,443   942,381
 
Cost of mutual fund shares   $ 23,391   $ 74,267   $ 130,292   $ 1,952   $ 7,141
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           32            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING Lehman   ING            
    Brothers U.S.   Opportunistic   ING   ING Russell™    
    Aggregate Bond   Large Cap   Opportunistic   Global Large   ING Russell™
    Index®   Growth   Large Cap   Cap Index 85%   Large Cap
    Portfolio -   Portfolio -   Value Portfolio -   Portfolio -   Index Portfolio -
    Class S   Class S   Class S   Class S   Class S
Assets                        
Investments in mutual funds                        
at fair value   $ 177,282   $ 350   $ 11,566   $ 2,725   $ 22,904
Total assets   177,282       350   11,566   2,725   22,904
 
Liabilities                        
Payable to related parties   21       -   3   -   1
Total liabilities   21       -   3   -   1
Net assets   $ 177,261   $ 350   $ 11,563   $ 2,725   $ 22,903
 
Net assets                        
Accumulation units   $ 177,261   $ 350   $ 11,563   $ 2,725   $ 22,903
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 177,261   $ 350   $ 11,563   $ 2,725   $ 22,903
 
Total number of mutual fund shares   17,552,717       50,810   1,347,978   336,847   3,181,054
 
Cost of mutual fund shares   $ 172,776   $ 581   $ 18,367   $ 2,564   $ 25,238
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           33                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    ING Russell™   ING Russell™   ING VP Index   ING VP Index   ING VP Index
    Mid Cap Index   Small Cap   Plus LargeCap   Plus MidCap   Plus SmallCap
    Portfolio -   Index Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Class S   Class S   Class S   Class S   Class S
Assets                    
Investments in mutual funds                    
at fair value   $ 22,651   $ 70,540   $ 174,412   $ 115,666   $ 88,628
Total assets   22,651   70,540   174,412   115,666   88,628
 
Liabilities                    
Payable to related parties   2   13   39   22   16
Total liabilities   2   13   39   22   16
Net assets   $ 22,649   $ 70,527   $ 174,373   $ 115,644   $ 88,612
 
Net assets                    
Accumulation units   $ 22,649   $ 70,527   $ 174,373   $ 115,644   $ 88,612
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 22,649   $ 70,527   $ 174,373   $ 115,644   $ 88,612
 
Total number of mutual fund shares   3,421,654   9,125,446   16,867,719   11,778,617   9,519,665
 
Cost of mutual fund shares   $ 28,406   $ 93,570   $ 282,438   $ 208,435   $ 154,740
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
             34            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

ING
        WisdomTreeSM       ING VP   ING VP
    ING VP Small   Global High-   ING VP   MidCap   SmallCap
    Company   Yielding Equity   International   Opportunities   Opportunities
    Portfolio -   Index Portfolio -   Value Portfolio -   Portfolio -   Portfolio -
    Class S   Class S   Class S   Class S   Class S
Assets                    
Investments in mutual funds                    
at fair value   $ 43,484   $ 145,068   $ 8,897   $ 223,432   $ 51,605
Total assets   43,484   145,068   8,897   223,432   51,605
 
Liabilities                    
Payable to related parties   5   17   1   80   14
Total liabilities   5   17   1   80   14
Net assets   $ 43,479   $ 145,051   $ 8,896   $ 223,352   $ 51,591
 
Net assets                    
Accumulation units   $ 43,479   $ 145,051   $ 8,896   $ 223,346   $ 51,591
Contracts in payout (annuitization)   -   -   -   6   -
Total net assets   $ 43,479   $ 145,051   $ 8,896   $ 223,352   $ 51,591
 
Total number of mutual fund shares   3,755,111   24,258,900   1,283,798   35,521,838   4,282,567
 
Cost of mutual fund shares   $ 54,411   $ 213,926   $ 17,054   $ 341,998   $ 70,828
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        35            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

            Legg Mason        
            Partners        
            Variable   Legg Mason   Legg Mason
    ING VP   ING VP   International   Partners   Partners
    Balanced   Intermediate   All Cap   Variable   Variable High
    Portfolio -   Bond Portfolio -   Opportunity   Investors   Income
    Class S   Class S   Portfolio   Portfolio   Portfolio
Assets                    
Investments in mutual funds                    
at fair value   $ 6,400   $ 1,122,464   $ 39   $ 73   $ 51
Total assets   6,400   1,122,464   39   73   51
 
Liabilities                    
Payable to related parties   1   164   -   -   -
Total liabilities   1   164   -   -   -
Net assets   $ 6,399   $ 1,122,300   $ 39   $ 73   $ 51
 
Net assets                    
Accumulation units   $ 6,399   $ 1,122,300   $ 39   $ 73   $ 51
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 6,399   $ 1,122,300   $ 39   $ 73   $ 51
 
Total number of mutual fund shares   701,737   101,949,518   7,946   7,228   12,983
 
Cost of mutual fund shares   $ 9,356   $ 1,313,984   $ 81   $ 123   $ 87
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           36            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    Legg Mason   Oppenheimer            
    Partners   Main Street   PIMCO Real   Pioneer Equity   Pioneer Small
    Variable Money   Small Cap   Return Portfolio   Income VCT   Cap Value VCT
    Market   Fund®/VA -   - Administrative   Portfolio -   Portfolio -
    Portfolio   Service Class   Class   Class II   Class II
Assets                        
Investments in mutual funds                        
at fair value   $ 23   $ 822   $ 7,515   $ 13,324   $ 2,389
Total assets   23       822   7,515   13,324   2,389
 
Liabilities                        
Payable to related parties   -       -   -   1   1
Total liabilities   -       -   -   1   1
Net assets   $ 23   $ 822   $ 7,515   $ 13,323   $ 2,388
 
Net assets                        
Accumulation units   $ 23   $ 822   $ 7,515   $ 13,323   $ 2,388
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 23   $ 822   $ 7,515   $ 13,323   $ 2,388
 
Total number of mutual fund shares   22,750       77,943   667,390   873,110   353,392
 
Cost of mutual fund shares   $ 23   $ 1,397   $ 8,431   $ 20,311   $ 5,234
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           37                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

                        Wells Fargo
                ProFund VP   Wells Fargo   Advantage C&B
    ProFund VP   ProFund VP   Rising Rates   Advantage Asset   Large Cap
    Bull   Europe 30   Opportunity   Allocation Fund   Value Fund
Assets                        
Investments in mutual funds                        
at fair value   $ 14,051   $ 9,838   $ 13,202   $ 1,989   $ 233
Total assets   14,051       9,838   13,202   1,989   233
 
Liabilities                        
Payable to related parties   5       3   3   -   -
Total liabilities   5       3   3   -   -
Net assets   $ 14,046   $ 9,835   $ 13,199   $ 1,989   $ 233
 
Net assets                        
Accumulation units   $ 14,046   $ 9,835   $ 13,199   $ 1,989   $ 233
Contracts in payout (annuitization)   -       -   -   -   -
Total net assets   $ 14,046   $ 9,835   $ 13,199   $ 1,989   $ 233
 
Total number of mutual fund shares   742,259       602,815   1,214,580   213,674   33,077
 
Cost of mutual fund shares   $ 22,426   $ 17,267   $ 24,981   $ 2,731   $ 312
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           38                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Assets and Liabilities
December 31, 2008
(Dollars in thousands)

    Wells Fargo   Wells Fargo   Wells Fargo   Wells Fargo   Wells Fargo
    Advantage   Advantage   Advantage   Advantage   Advantage Total
    Equity Income   Large Company   Money Market   Small Cap   Return Bond
    Fund   Growth Fund   Fund   Growth Fund   Fund
Assets                    
Investments in mutual funds                    
at fair value   $ 529   $ 1,308   $ 43   $ 419   $ 1,029
Total assets   529   1,308   43   419   1,029
 
Liabilities                    
Payable to related parties   -   -   -   -   -
Total liabilities   -   -   -   -   -
Net assets   $ 529   $ 1,308   $ 43   $ 419   $ 1,029
 
Net assets                    
Accumulation units   $ 529   $ 1,308   $ 43   $ 419   $ 1,029
Contracts in payout (annuitization)   -   -   -   -   -
Total net assets   $ 529   $ 1,308   $ 43   $ 419   $ 1,029
 
Total number of mutual fund shares   53,551   208,204   42,557   100,768   106,043
 
Cost of mutual fund shares   $ 849   $ 1,767   $ 43   $ 741   $ 1,048
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
           39            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

              Columbia    
        BlackRock   Columbia Asset   Federal   Columbia Large
    AIM V.I.   Global   Allocation Fund,   Securities Fund,   Cap Growth
    Leisure Fund -   Allocation V.I.   Variable Series -   Variable Series -   Fund, Variable
    Series I Shares   Fund - Class III   Class A   Class A   Series - Class A
Net investment income (loss)                        
Income:                        
Dividends   $ 300   $ 10,590   $ 17   $ 5   $ 1
Total investment income   300       10,590   17   5   1
Expenses:                        
Mortality, expense risk                        
and other charges   523       2,418   7   1   6
Annual administrative charges   9       54   -   -   -
Contingent deferred sales charges   12       22   -   -   -
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   194       941   -   -   -
Amortization of deferred charges   -       -   -   -   -
Total expenses   738       3,435   7   1   6
Net investment income (loss)   (438)       7,155   10   4   (5)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (718)       (1,397)   10   (6)   (1)
Capital gains distributions   4,950       1,988   61   -   -
Total realized gain (loss) on investments                        
and capital gains distributions   4,232       591   71   (6)   (1)
Net unrealized appreciation                        
(depreciation) of investments   (19,898)       (54,254)   (231)   4   (189)
Net realized and unrealized gain (loss)                        
on investments   (15,666)       (53,663)   (160)   (2)   (190)
Net increase (decrease) in net assets                        
resulting from operations   $ (16,104)   $ (46,508)   $ (150)   $ 2   $ (195)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        40                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

        Columbia Small            
    Columbia Small   Company   Fidelity® VIP   Fidelity® VIP   Franklin Small
    Cap Value   Growth Fund,   Equity-Income   Contrafund®   Cap Value
    Fund, Variable   Variable Series -   Portfolio -   Portfolio -   Securities Fund
    Series - Class B   Class A   Service Class 2   Service Class 2   - Class 2
Net investment income (loss)                        
Income:                        
Dividends   $ 911   $ -   $ 5,598   $ 7,395   $ 90
Total investment income   911       -   5,598   7,395   90
Expenses:                        
Mortality, expense risk                        
and other charges   3,540       1   4,592   14,081   84
Annual administrative charges   67       -   66   185   1
Contingent deferred sales charges   60       -   98   264   -
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   1,431       -   1,447   4,386   21
Amortization of deferred charges   -       -   -   -   -
Total expenses   5,098       1   6,203   18,916   106
Net investment income (loss)   (4,187)       (1)   (605)   (11,521)   (16)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (838)       1   (12,650)   (14,379)   (104)
Capital gains distributions   24,479       9   299   22,516   624
Total realized gain (loss) on investments                        
and capital gains distributions   23,641       10   (12,351)   8,137   520
Net unrealized appreciation                        
(depreciation) of investments   (86,156)       (47)   (132,398)   (467,013)   (3,792)
Net realized and unrealized gain (loss)                        
on investments   (62,515)       (37)   (144,749)   (458,876)   (3,272)
Net increase (decrease) in net assets                        
resulting from operations   $ (66,702)   $ (38)   $ (145,354)   $ (470,397)   $ (3,288)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        41                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

                ING   ING
                AllianceBernstein   AllianceBernstein
                Mid Cap Growth   Mid Cap Growth
    ING GET Fund   ING GET Fund   Portfolio - Service   Portfolio - Service 2
    - Series U   - Series V   Class   Class
Net investment income (loss)                        
Income:                        
Dividends   $ 1,703   $ 1,734   $ -   $ -
Total investment income   1,703       1,734   -       -
Expenses:                        
Mortality, expense risk                        
and other charges   275       829   5,202       253
Annual administrative charges   2       9   109       4
Contingent deferred sales charges   59       74   97       3
Minimum death benefit guarantee charges   -       -   -       -
Other contract charges   1       1   1,134       105
Amortization of deferred charges   -       -   -       -
Total expenses   337       913   6,542       365
Net investment income (loss)   1,366       821   (6,542)       (365)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (8,818)       1,373   (1,391)       (625)
Capital gains distributions   4,822       -   63,450       2,969
Total realized gain (loss) on investments                        
and capital gains distributions   (3,996)       1,373   62,059       2,344
Net unrealized appreciation                        
(depreciation) of investments   (612)       (3,254)   (240,695)       (10,453)
Net realized and unrealized gain (loss)                        
on investments   (4,608)       (1,881)   (178,636)       (8,109)
Net increase (decrease) in net assets                        
resulting from operations   $ (3,242)   $ (1,060)   $ (185,178)   $ (8,474)
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
42

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING American             ING American
    Funds Asset   ING American   ING American   ING American   Funds
    Allocation   Funds Bond   Funds Growth   Funds Growth-   International
    Portfolio   Portfolio   Portfolio   Income Portfolio   Portfolio
Net investment income (loss)                        
Income:                        
Dividends   $ -                          $ 1   $ 17,178   $ 20,772   $ 24,708
Total investment income   -       1   17,178   20,772   24,708
Expenses:                        
Mortality, expense risk                        
and other charges   798       1,989   36,806   24,482   22,918
Annual administrative charges   15       38   502   338   292
Contingent deferred sales charges   232       38   652   470   356
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   308       739   12,750   7,964   7,487
Amortization of deferred charges   -       -   1   -   2
Total expenses   1,353       2,804   50,711   33,254   31,055
Net investment income (loss)   (1,353)       (2,803)   (33,533)   (12,482)   (6,347)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (1,220)       (1,802)   16,505   2,638   21,371
Capital gains distributions   -       -   161,767   57,321   79,810
Total realized gain (loss) on investments                        
and capital gains distributions   (1,220)       (1,802)   178,272   59,959   101,181
Net unrealized appreciation                        
(depreciation) of investments   (22,925)       (15,657)   (1,354,204)   (725,097)   (830,068)
Net realized and unrealized gain (loss)                        
on investments   (24,145)       (17,459)   (1,175,932)   (665,138)   (728,887)
Net increase (decrease) in net assets                        
resulting from operations   $ (25,498)   $ (20,262)   $ (1,209,465)   $ (677,620)   $ (735,234)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        43                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

        ING BlackRock            
    ING American   Large Cap   ING BlackRock        
    Funds World   Growth   Large Cap   ING BlackRock   ING BlackRock
    Allocation   Portfolio -   Growth   Large Cap   Large Cap
    Portfolio -   Institutional   Portfolio -   Value Portfolio -   Value Portfolio -
    Service Class   Class   Service Class   Service Class   Service 2 Class
Net investment income (loss)                        
Income:                        
Dividends   $ -   $ -   $ -   $ 131   $ 5
Total investment income   -       -   -   131   5
Expenses:                        
Mortality, expense risk                        
and other charges   21       2   2,170   736   57
Annual administrative charges   -       -   40   11   1
Contingent deferred sales charges   -       -   46   13   -
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   2       -   661   247   25
Amortization of deferred charges   -       -   -   -   -
Total expenses   23       2   2,917   1,007   83
Net investment income (loss)   (23)       (2)   (2,917)   (876)   (78)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   -       (8)   (6,369)   (937)   20
Capital gains distributions   -       22   14,742   2,061   164
Total realized gain (loss) on investments                        
and capital gains distributions   -       14   8,373   1,124   184
Net unrealized appreciation                        
(depreciation) of investments   386       (103)   (69,280)   (18,792)   (1,532)
Net realized and unrealized gain (loss)                        
on investments   386       (89)   (60,907)   (17,668)   (1,348)
Net increase (decrease) in net assets                        
resulting from operations   $ 363   $ (91)   $ (63,824)   $ (18,544)   $ (1,426)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        44                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING Capital   ING Capital          
    Guardian U.S.   Guardian U.S.   ING   ING   ING Evergreen
    Equities   Equities   EquitiesPlus   EquitiesPlus   Health Sciences
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class   Service Class
Net investment income (loss)                            
Income:                            
Dividends   $ 6,049                     $ 86   $ 7,005                               $ 2   $ 268
Total investment income   6,049       86   7,005       2   268
Expenses:                            
Mortality, expense risk                            
and other charges   4,590       87   467       -   3,180
Annual administrative charges   21       -   (7)       -   58
Contingent deferred sales charges   74       2   6       -   57
Minimum death benefit guarantee charges   -       -   -       -   -
Other contract charges   1,076       33   41       -   1,121
Amortization of deferred charges   -       -   -       -   -
Total expenses   5,761       122   507       -   4,416
Net investment income (loss)   288       (36)   6,498       2   (4,148)
 
Realized and unrealized gain (loss)                            
on investments                            
Net realized gain (loss) on investments   (81,532)       (2,268)   (24,796)       (8)   408
Capital gains distributions   67,854       1,237   6,068       2   9,560
Total realized gain (loss) on investments                            
and capital gains distributions   (13,678)       (1,031)   (18,728)       (6)   9,968
Net unrealized appreciation                            
(depreciation) of investments   (56,047)       (214)   (1,312)       (1)   (75,064)
Net realized and unrealized gain (loss)                            
on investments   (69,725)       (1,245)   (20,040)       (7)   (65,096)
Net increase (decrease) in net assets                            
resulting from operations   $ (69,437)   $ (1,281)   $ (13,542)   $ (5)   $ (69,244)
 
 
 
 
The accompanying notes are an integral part of these financial statements.        
 
        45                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

          ING FMRSM   ING FMRSM    
    ING Evergreen   ING Evergreen   Diversified Mid   Diversified Mid   ING Focus 5
    Omega Portfolio   Omega Portfolio   Cap Portfolio -   Cap Portfolio -   Portfolio -
    - Service Class   - Service 2 Class   Service Class   Service 2 Class   Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 12       $ -   $ 5,939   $ 139   $ 3,043
Total investment income   12       -   5,939   139   3,043
Expenses:                        
Mortality, expense risk                        
and other charges   118       20   14,509   670   2,391
Annual administrative charges   3       -   298   10   26
Contingent deferred sales charges   7       -   211   9   57
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   36       8   3,812   292   958
Amortization of deferred charges   -       -   -   -   -
Total expenses   164       28   18,830   981   3,432
Net investment income (loss)   (152)       (28)   (12,891)   (842)   (389)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (831)       5   (2,246)   88   (7,459)
Capital gains distributions   774       132   63,179   2,785   -
Total realized gain (loss) on investments                        
and capital gains distributions   (57)       137   60,933   2,873   (7,459)
Net unrealized appreciation                        
(depreciation) of investments   (2,013)       (467)   (463,280)   (20,323)   (76,000)
Net realized and unrealized gain (loss)                        
on investments   (2,070)       (330)   (402,347)   (17,450)   (83,459)
Net increase (decrease) in net assets                        
resulting from operations   $ (2,222)   $ (358)   $ (415,238)   $ (18,292)   $ (83,848)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        46                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

              ING Franklin    
              Templeton    
          ING Franklin   Founding    
    ING Franklin   ING Franklin   Mutual Shares   Strategy   ING Global Real
    Income Portfolio   Income Portfolio   Portfolio -   Portfolio -   Estate Portfolio
    - Service Class   - Service 2 Class   Service Class   Service Class   - Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 10,746       $ 253   $ 6,406   $ 800   $ -
Total investment income   10,746       253   6,406   800   -
Expenses:                        
Mortality, expense risk                        
and other charges   6,097       160   3,161   11,785   2,455
Annual administrative charges   83       1   40   174   33
Contingent deferred sales charges   121       4   55   229   31
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   1,682       63   949   4,632   848
Amortization of deferred charges   -       -   -   -   -
Total expenses   7,983       228   4,205   16,820   3,367
Net investment income (loss)   2,763       25   2,201   (16,020)   (3,367)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (8,096)       (613)   (6,905)   (5,789)   (9,292)
Capital gains distributions   2,683       66   246   147   -
Total realized gain (loss) on investments                        
and capital gains distributions   (5,413)       (547)   (6,659)   (5,642)   (9,292)
Net unrealized appreciation                        
(depreciation) of investments   (125,039)       (2,514)   (82,809)   (305,460)   (69,097)
Net realized and unrealized gain (loss)                        
on investments   (130,452)       (3,061)   (89,468)   (311,102)   (78,389)
Net increase (decrease) in net assets                        
resulting from operations   $ (127,689)                   $ (3,036)   $ (87,267)   $ (327,122)   $ (81,756)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        47                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

            ING Global   ING Global   ING Global   ING Global
    ING Global Real       Resources   Resources   Technology   Technology
    Estate Portfolio       Portfolio -   Portfolio -   Portfolio -   Portfolio -
    - Service 2 Class       Service Class   Service 2 Class   Service Class   Service 2 Class
Net investment income (loss)                        
Income:                        
Dividends   $ -                   $ 14,229   $ 524   $ -   $ -
Total investment income   -       14,229   524   -   -
Expenses:                        
Mortality, expense risk                        
and other charges   43       14,314   647   597   34
Annual administrative charges   -       223   9   (7)   -
Contingent deferred sales charges   -       279   8   12   -
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   18       4,568   288   186   14
Amortization of deferred charges   -       -   -   -   -
Total expenses   61       19,384   952   788   48
Net investment income (loss)   (61)       (5,155)   (428)   (788)   (48)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (169)       12,408   1,191   (14,230)   (602)
Capital gains distributions   -       145,236   6,152   10,312   582
Total realized gain (loss) on investments                        
and capital gains distributions   (169)       157,644   7,343   (3,918)   (20)
Net unrealized appreciation                        
(depreciation) of investments   (1,052)       (567,168)   (24,926)   (5,882)   (524)
Net realized and unrealized gain (loss)                        
on investments   (1,221)       (409,524)   (17,583)   (9,800)   (544)
Net increase (decrease) in net assets                        
resulting from operations   $ (1,282)               $ (414,679)   $ (18,011)   $ (10,588)   $ (592)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        48                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING   ING            
    International   International           ING JPMorgan
    Growth   Growth   ING Janus   ING Janus   Emerging
    Opportunities   Opportunities   Contrarian   Contrarian   Markets Equity
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class   Adviser Class
Net investment income (loss)                        
Income:                        
Dividends   $ 1,131        $ 80   $ 3,739   $ 121   $ 775
Total investment income   1,131       80   3,739   121   775
Expenses:                        
Mortality, expense risk                        
and other charges   1,662       140   11,321   565   636
Annual administrative charges   35       2   181   7   8
Contingent deferred sales charges   24       1   190   3   5
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   261       63   3,376   235   278
Amortization of deferred charges   -       -   -   -   -
Total expenses   1,982       206   15,068   810   927
Net investment income (loss)   (851)       (126)   (11,329)   (689)   (152)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (9,257)       (714)   (10,863)   (458)   3,056
Capital gains distributions   30,507       2,479   86,775   4,096   2,114
Total realized gain (loss) on investments                        
and capital gains distributions   21,250       1,765   75,912   3,638   5,170
Net unrealized appreciation                        
(depreciation) of investments   (87,278)       (7,142)   (482,952)   (22,459)   (29,383)
Net realized and unrealized gain (loss)                        
on investments   (66,028)       (5,377)   (407,040)   (18,821)   (24,213)
Net increase (decrease) in net assets                        
resulting from operations   $ (66,879)             $ (5,503)   $ (418,369)   $ (19,510)   $ (24,365)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        49                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING JPMorgan               ING JPMorgan   ING JPMorgan
    Emerging   ING JPMorgan   ING JPMorgan   Value   Value
    Markets Equity   Small Cap Core   Small Cap Core   Opportunities   Opportunities
    Portfolio -   Equity Portfolio   Equity Portfolio   Portfolio -   Portfolio -
    Service Class   - Service Class   - Service 2 Class   Service Class   Service 2 Class
Net investment income (loss)                        
Income:                        
Dividends   $ 16,709   $ 852   $ 115   $ 840   $ 27
Total investment income   16,709       852   115   840   27
Expenses:                        
Mortality, expense risk                        
and other charges   11,780       3,272   751   470   19
Annual administrative charges   161       46   12   7   -
Contingent deferred sales charges   179       57   7   22   -
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   3,752       1,163   337   69   8
Amortization of deferred charges   2       -   -   -   -
Total expenses   15,874       4,538   1,107   568   27
Net investment income (loss)   835       (3,686)   (992)   272   -
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   56,086       (5,507)   250   (2,768)   (37)
Capital gains distributions   41,224       17,132   3,938   3,259   115
Total realized gain (loss) on investments                        
and capital gains distributions   97,310       11,625   4,188   491   78
Net unrealized appreciation                        
(depreciation) of investments   (565,466)       (73,261)   (18,127)   (15,071)   (617)
Net realized and unrealized gain (loss)                        
on investments   (468,156)       (61,636)   (13,939)   (14,580)   (539)
Net increase (decrease) in net assets                        
resulting from operations   $ (467,321)   $ (65,322)   $ (14,931)   $ (14,308)   $ (539)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        50                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

                      ING LifeStyle
    ING Julius Baer   ING Julius Baer   ING Legg   ING Legg   Aggressive
    Foreign   Foreign   Mason Value   Mason Value   Growth
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class   Service Class
Net investment income (loss)                            
Income:                            
Dividends   $ -                         $ -   $ 38                              $ -   $ 18,015
Total investment income   -       -   38       -   18,015
Expenses:                            
Mortality, expense risk                            
and other charges   12,897       1,051   3,922       302   19,124
Annual administrative charges   156       13   60       4   415
Contingent deferred sales charges   193       7   82       5   394
Minimum death benefit guarantee charges   -       -   -       -   -
Other contract charges   4,336       458   1,213       128   7,951
Amortization of deferred charges   3       -   -       -   -
Total expenses   17,585       1,529   5,277       439   27,884
Net investment income (loss)   (17,585)       (1,529)   (5,239)       (439)   (9,869)
 
Realized and unrealized gain (loss)                            
on investments                            
Net realized gain (loss) on investments   18,029       1,492   (7,593)                         (1,099)   8,132
Capital gains distributions   77,913       6,117   55,111       4,094   109,209
Total realized gain (loss) on investments                            
and capital gains distributions   95,942       7,609   47,518       2,995   117,341
Net unrealized appreciation                            
(depreciation) of investments   (497,266)       (39,130)   (219,795)   (15,817)   (678,526)
Net realized and unrealized gain (loss)                            
on investments   (401,324)       (31,521)   (172,277)   (12,822)   (561,185)
Net increase (decrease) in net assets                            
resulting from operations   $ (418,909)               $ (33,050)   $ (177,516)   $ (13,261)   $ (571,054)
 
 
 
 
The accompanying notes are an integral part of these financial statements.        
 
        51                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING LifeStyle             ING LifeStyle
    Aggressive   ING LifeStyle   ING LifeStyle   ING LifeStyle   Moderate
    Growth   Conservative   Growth   Growth   Growth
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service 2 Class   Service Class   Service Class   Service 2 Class   Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 55                   $ -   $ 60,670   $ 175   $ 56,179
Total investment income   55       -   60,670   175   56,179
Expenses:                        
Mortality, expense risk                        
and other charges   63       387   63,343   208   50,227
Annual administrative charges   1       22   922   3   731
Contingent deferred sales charges   1       7   1,232   -   1,202
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   21       155   23,818   81   16,173
Amortization of deferred charges   -       -   5   -   -
Total expenses   86       571   89,320   292   68,333
Net investment income (loss)   (31)       (571)   (28,650)   (117)   (12,154)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (158)       (189)   13,749   (83)   1,461
Capital gains distributions   351       -   210,035   674   136,820
Total realized gain (loss) on investments                        
and capital gains distributions   193       (189)   223,784   591   138,281
Net unrealized appreciation                        
(depreciation) of investments   (2,130)       699   (1,870,893)   (5,865)   (1,253,846)
Net realized and unrealized gain (loss)                        
on investments   (1,937)       510   (1,647,109)   (5,274)   (1,115,565)
Net increase (decrease) in net assets                        
resulting from operations   $ (1,968)                $ (61)   $ (1,675,759)   $ (5,391)   $ (1,127,719)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        52                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING LifeStyle              
    Moderate   ING LifeStyle   ING LifeStyle   ING Limited    
    Growth   Moderate   Moderate   Maturity Bond   ING Liquid
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Assets Portfolio
    Service 2 Class   Service Class   Service 2 Class   Service Class   - Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 275                   $ 28,766   $ 299   $ 10,014   $ 38,146
Total investment income   275       28,766   299   10,014   38,146
Expenses:                        
Mortality, expense risk                        
and other charges   266       25,798   274   2,515   28,445
Annual administrative charges   3       372   3   68   1,218
Contingent deferred sales charges   3       607   3   63   43,492
Minimum death benefit guarantee charges   -       -   -   -   2
Other contract charges   89       7,701   102   238   6,466
Amortization of deferred charges   -       -   -   -   4
Total expenses   361       34,478   382   2,884   79,627
Net investment income (loss)   (86)       (5,712)   (83)   7,130   (41,481)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (585)       (1,848)   (895)   (2,980)   -
Capital gains distributions   695       51,482   559   1,092   -
Total realized gain (loss) on investments                        
and capital gains distributions   110       49,634   (336)   (1,888)   -
Net unrealized appreciation                        
(depreciation) of investments   (5,855)       (520,340)   (4,334)   (8,045)   -
Net realized and unrealized gain (loss)                        
on investments   (5,745)       (470,706)   (4,670)   (9,933)   -
Net increase (decrease) in net assets                        
resulting from operations   $ (5,831)             $ (476,418)   $ (4,753)   $ (2,803)   $ (41,481)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        53                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

             
ING Lord ING Lord ING Marsico ING Marsico
ING Liquid Abbett Affiliated Abbett Affiliated Growth Growth
    Assets Portfolio   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    - Service 2 Class   Service Class   Service 2 Class   Service Class   Service 2 Class
Net investment income (loss)                    
Income:                    
Dividends   $ 840       $ 2,149     $ 61   $ 2,992   $ 66
Total investment income   840   2,149   61   2,992   66
Expenses:                    
Mortality, expense risk                    
and other charges   711   1,529   48   9,725   363
Annual administrative charges   23   29   1   253   5
Contingent deferred sales charges   1,489   36   1   135   4
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   303   354   17   2,083   154
Amortization of deferred charges   -   -   -   -   -
Total expenses   2,526   1,948   67   12,196   526
Net investment income (loss)   (1,686)   201   (6)   (9,204)   (460)
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   -   3,823   (41)   41,314   574
Capital gains distributions   -   12,593   385   -   -
Total realized gain (loss) on investments                    
and capital gains distributions   -   16,416   344   41,314   574
Net unrealized appreciation                    
(depreciation) of investments   -   (57,280)   (1,577)   (328,018)   (10,684)
Net realized and unrealized gain (loss)                    
on investments   -   (40,864)   (1,233)   (286,704)   (10,110)
Net increase (decrease) in net assets                    
resulting from operations   $ (1,686)     $ (40,663)   $ (1,239)   $ (295,908)   $ (10,570)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        54             

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING Marsico                    
    International               ING MFS   ING Mid Cap
    Opportunities   ING MFS Total   ING MFS Total   Utilities   Growth
    Portfolio -   Return Portfolio   Return Portfolio   Portfolio -   Portfolio -
    Service Class   - Service Class   - Service 2 Class   Service Class   Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 2,581   $ 54,997   $ 2,327   $ 15,836   $ -
Total investment income   2,581       54,997   2,327   15,836   -
Expenses:                        
Mortality, expense risk                        
and other charges   4,256       15,849   763   8,356   1,689
Annual administrative charges   52       348   10   141   (32)
Contingent deferred sales charges   64       305   13   203   26
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   1,412       3,260   310   2,745   285
Amortization of deferred charges   -       (1)   -   -   -
Total expenses   5,784       19,761   1,096   11,445   1,968
Net investment income (loss)   (3,203)       35,236   1,231   4,391   (1,968)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   2,450       (11,370)   (1,279)   11,796   79,571
Capital gains distributions   26,734       91,101   4,101   57,641   -
Total realized gain (loss) on investments                        
and capital gains distributions   29,184       79,731   2,822   69,437   79,571
Net unrealized appreciation                        
(depreciation) of investments   (190,583)       (364,961)   (15,324)   (304,761)   (113,766)
Net realized and unrealized gain (loss)                        
on investments   (161,399)       (285,230)   (12,502)   (235,324)   (34,195)
Net increase (decrease) in net assets                        
resulting from operations   $ (164,602)   $ (249,994)   $ (11,271)   $ (230,933)   $ (36,163)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        55                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

            ING Multi-   ING        
            Manager   Oppenheimer   ING   ING
    ING Mid Cap       International   Active Asset   Oppenheimer   Oppenheimer
    Growth       Small Cap   Allocation   Main Street   Main Street
    Portfolio -       Portfolio -   Portfolio -   Portfolio® -   Portfolio® -
    Service Class 2       Class S   Service Class   Service Class   Service 2 Class
Net investment income (loss)                            
Income:                            
Dividends   $ -   $ -   $ 28   $ 7,301   $ 86
Total investment income   -       -       28   7,301   86
Expenses:                            
Mortality, expense risk                            
and other charges   85       22       5   4,771   68
Annual administrative charges   (1)       -       -   134   1
Contingent deferred sales charges   1       -       -   64   1
Minimum death benefit guarantee charges   -       -       -   -   -
Other contract charges   32       8       1   779   28
Amortization of deferred charges   -       -       -   -   -
Total expenses   117       30       6   5,748   98
Net investment income (loss)   (117)       (30)       22   1,553   (12)
 
Realized and unrealized gain (loss)                            
on investments                            
Net realized gain (loss) on investments   732       (652)       -   17,421   94
Capital gains distributions   -       -       -   -   -
Total realized gain (loss) on investments                            
and capital gains distributions   732       (652)       -   17,421   94
Net unrealized appreciation                            
(depreciation) of investments   (2,364)       (852)       25   (159,619)   (1,955)
Net realized and unrealized gain (loss)                            
on investments   (1,632)       (1,504)       25   (142,198)   (1,861)
Net increase (decrease) in net assets                            
resulting from operations   $ (1,749)   $ (1,534)   $ 47   $ (140,645)   $ (1,873)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        56                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING PIMCO   ING PIMCO   ING PIMCO       ING Pioneer
    Core Bond   Core Bond   High Yield   ING Pioneer   Mid Cap Value
    Portfolio -   Portfolio -   Portfolio -   Fund Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service Class   Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 56,472             $ 1,727   $ 39,675   $ 1,903   $ 9,469
Total investment income   56,472       1,727   39,675   1,903   9,469
Expenses:                        
Mortality, expense risk                        
and other charges   30,241       1,037   8,202   1,175   9,901
Annual administrative charges   519       15   237   19   219
Contingent deferred sales charges   714       20   178   23   198
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   8,933       407   1,930   375   3,396
Amortization of deferred charges   -       -   -   -   1
Total expenses   40,407       1,479   10,547   1,592   13,715
Net investment income (loss)   16,065       248   29,128   311   (4,246)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   12,122       495   (28,723)   573   (6,898)
Capital gains distributions   14,584       476   175   2,694   32,997
Total realized gain (loss) on investments                        
and capital gains distributions   26,706       971   (28,548)   3,267   26,099
Net unrealized appreciation                        
(depreciation) of investments   (24,763)       (534)   (119,890)   (32,243)   (282,330)
Net realized and unrealized gain (loss)                        
on investments   1,943       437   (148,438)   (28,976)   (256,231)
Net increase (decrease) in net assets                        
resulting from operations   $ 18,008             $ 685   $ (119,310)   $ (28,665)   $ (260,477)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        57                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING T. Rowe   ING T. Rowe            
    Price Capital   Price Capital   ING T. Rowe   ING T. Rowe   ING Templeton
    Appreciation   Appreciation   Price Equity   Price Equity   Global Growth
    Portfolio -   Portfolio -   Income Portfolio   Income Portfolio   Portfolio -
    Service Class   Service 2 Class   - Service Class   - Service 2 Class   Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 102,918             $ 3,505   $ 31,502   $ 1,079   $ 3,490
Total investment income   102,918       3,505   31,502   1,079   3,490
Expenses:                        
Mortality, expense risk                        
and other charges   41,762       1,720   12,817   498   5,774
Annual administrative charges   754       23   241   7   102
Contingent deferred sales charges   822       33   262   2   81
Minimum death benefit guarantee charges   1       -   2   -   -
Other contract charges   11,736       723   3,590   218   1,461
Amortization of deferred charges   -       -   7   -   -
Total expenses   55,075       2,499   16,919   725   7,418
Net investment income (loss)   47,843       1,006   14,583   354   (3,928)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   35,303       (886)   3,621   (29)   8,523
Capital gains distributions   231,106       9,104   63,109   2,351   14,491
Total realized gain (loss) on investments                        
and capital gains distributions   266,409       8,218   66,730   2,322   23,014
Net unrealized appreciation                        
(depreciation) of investments   (1,115,753)       (40,232)   (417,963)   (15,168)   (192,003)
Net realized and unrealized gain (loss)                        
on investments   (849,344)       (32,014)   (351,233)   (12,846)   (168,989)
Net increase (decrease) in net assets                        
resulting from operations   $ (801,501)             $ (31,008)   $ (336,650)   $ (12,492)   $ (172,917)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        58                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

              ING Van   ING Van
    ING Templeton   ING UBS U.S.   ING UBS U.S.   Kampen Capital   Kampen Capital
    Global Growth   Allocation   Allocation   Growth   Growth
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service 2 Class   Service Class   Service 2 Class   Service Class   Service 2 Class
Net investment income (loss)                        
Income:                        
Dividends   $ 42               $ 2,196   $ 121   $ 52   $ -
Total investment income   42       2,196   121   52   -
Expenses:                        
Mortality, expense risk                        
and other charges   102       409   25   2,235   73
Annual administrative charges   1       (3)   -   65   (1)
Contingent deferred sales charges   2       10   -   58   1
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   45       88   9   826   28
Amortization of deferred charges   -       -   -   -   -
Total expenses   150       504   34   3,184   101
Net investment income (loss)   (108)       1,692   87   (3,132)   (101)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   134       (6,684)   (644)   (2,494)   2,823
Capital gains distributions   239       9,004   530   5,029   -
Total realized gain (loss) on investments                        
and capital gains distributions   373       2,320   (114)   2,535   2,823
Net unrealized appreciation                        
(depreciation) of investments   (3,147)       (8,827)   (244)   (105,018)   (3,582)
Net realized and unrealized gain (loss)                        
on investments   (2,774)       (6,507)   (358)   (102,483)   (759)
Net increase (decrease) in net assets                        
resulting from operations   $ (2,882)            $ (4,815)   $ (271)   $ (105,615)   $ (860)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        59                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

          ING Van        
    ING Van   ING Van   Kampen Global   ING Van   ING Van
    Kampen Global   Kampen Global   Tactical Asset   Kampen Growth   Kampen Growth
    Franchise   Franchise   Allocation   and Income   and Income
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service Class   Service 2 Class
Net investment income (loss)                        
Income:                        
Dividends   $ 5,538                  $ 1,241   $ -   $ 21,884   $ 2,122
Total investment income   5,538       1,241   -   21,884   2,122
Expenses:                        
Mortality, expense risk                        
and other charges   4,944       1,271   5   9,607   1,113
Annual administrative charges   79       20   -   225   15
Contingent deferred sales charges   78       14   -   162   14
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   1,764       544   1   1,758   447
Amortization of deferred charges   -       -   -   -   -
Total expenses   6,865       1,849   6   11,752   1,589
Net investment income (loss)   (1,327)       (608)   (6)   10,132   533
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   5,552       2,133   (39)   (14,324)   78
Capital gains distributions   21,864       5,456   -   49,867   5,343
Total realized gain (loss) on investments                        
and capital gains distributions   27,416       7,589   (39)   35,543   5,421
Net unrealized appreciation                        
(depreciation) of investments   (126,436)       (32,223)   101   (274,166)   (30,500)
Net realized and unrealized gain (loss)                        
on investments   (99,020)       (24,634)   62   (238,623)   (25,079)
Net increase (decrease) in net assets                        
resulting from operations   $ (100,347)              $ (25,242)   $ 56   $ (228,491)   $ (24,546)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        60                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING Van         ING VP Index   ING VP Index
    Kampen Large   ING Van   ING Van   Plus   Plus
    Cap Growth   Kampen Real   Kampen Real   International   International
    Portfolio -   Estate Portfolio   Estate Portfolio   Equity Portfolio   Equity Portfolio
    Service Class   - Service Class   - Service 2 Class   - Service Class   - Service 2 Class
Net investment income (loss)                        
Income:                        
Dividends   $ 383                        $ 5,367   $ 251   $ 1,762   $ 27
Total investment income   383       5,367   251   1,762   27
Expenses:                        
Mortality, expense risk                        
and other charges   757       8,059   453   452   9
Annual administrative charges   (7)       158   7   6   -
Contingent deferred sales charges   20       174   5   6   -
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   244       2,388   197   120   4
Amortization of deferred charges   -       1   -   -   -
Total expenses   1,014       10,780   662   584   13
Net investment income (loss)   (631)       (5,413)   (411)   1,178   14
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (8,318)       2,007   206   (3,658)   (42)
Capital gains distributions   5,252       80,680   4,446   8,326   135
Total realized gain (loss) on investments                        
and capital gains distributions   (3,066)       82,687   4,652   4,668   93
Net unrealized appreciation                        
(depreciation) of investments   (5,108)       (269,772)   (15,142)   (21,719)   (384)
Net realized and unrealized gain (loss)                        
on investments   (8,174)       (187,085)   (10,490)   (17,051)   (291)
Net increase (decrease) in net assets                        
resulting from operations   $ (8,805)   $ (192,498)   $ (10,901)   $ (15,873)   $ (277)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        61                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING Wells   ING Wells   ING Wells   ING Wells    
    Fargo   Fargo   Fargo Small   Fargo Small    
Disciplined Disciplined Cap Disciplined Cap Disciplined ING Diversified
Value Portfolio - Value Portfolio - Portfolio - Portfolio - International
    Service Class   Service 2 Class   Service Class   Service 2 Class   Fund - Class R
Net investment income (loss)                        
Income:                        
Dividends   $ 4,388   $ 84   $ 88   $ 4   $ 21
Total investment income   4,388       84   88   4   21
Expenses:                        
Mortality, expense risk                        
and other charges   2,009       47   175   9   3
Annual administrative charges   16       -   2   -   -
Contingent deferred sales charges   19       1   4   -   -
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   231       18   64   4   1
Amortization of deferred charges   -       -   -   -   -
Total expenses   2,275       66   245   13   4
Net investment income (loss)   2,113       18   (157)   (9)   17
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   46,675       200   (1,019)   (16)   (4)
Capital gains distributions   -       -   1,364   68   -
Total realized gain (loss) on investments                        
and capital gains distributions   46,675       200   345   52   (4)
Net unrealized appreciation                        
(depreciation) of investments   (67,364)       (623)   (4,172)   (249)   (181)
Net realized and unrealized gain (loss)                        
on investments   (20,689)       (423)   (3,827)   (197)   (185)
Net increase (decrease) in net assets                        
resulting from operations   $ (18,576)   $ (405)   $ (3,984)   $ (206)   $ (168)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        62                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING American   ING American   ING Baron   ING Columbia    
    Century Large   Century Small-   Small Cap   Small Cap   ING Davis New
    Company Value   Mid Cap Value   Growth   Value II   York Venture
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service Class   Service Class   Service Class   Service Class
Net investment income (loss)                    
Income:                    
Dividends   $ 67   $ 4   $ -   $ 143   $ 1,580
Total investment income   67   4   -   143   1,580
Expenses:                    
Mortality, expense risk                    
and other charges   5   5   3,668   2,619   3,543
Annual administrative charges   -   -   42   34   42
Contingent deferred sales charges   -   -   57   39   40
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   1   1   1,223   899   1,078
Amortization of deferred charges   -   -   -   -   -
Total expenses   6   6   4,990   3,591   4,703
Net investment income (loss)   61   (2)   (4,990)   (3,448)   (3,123)
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   (60)   (23)   (1,575)   (6,772)   (2,058)
Capital gains distributions   194   59   7,260   1,443   2,273
Total realized gain (loss) on investments                    
and capital gains distributions   134   36   5,685   (5,329)   215
Net unrealized appreciation                    
(depreciation) of investments   (417)   (181)   (119,270)   (61,222)   (101,313)
Net realized and unrealized gain (loss)                    
on investments   (283)   (145)   (113,585)   (66,551)   (101,098)
Net increase (decrease) in net assets                    
resulting from operations   $ (222)   $ (147)   $ (118,575)   $ (69,999)   $ (104,221)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        63            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

                ING Legg        
                Mason Partners   ING Neuberger   ING Neuberger
ING JPMorgan ING JPMorgan Aggressive Berman Berman
International Mid Cap Value Growth Partners Regency
    Portfolio -       Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class       Service Class   Service Class   Service Class   Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 4,605                      $ 810   $ -   $ -   $ 20
Total investment income   4,605       810   -   -   20
Expenses:                        
Mortality, expense risk                        
and other charges   910       387   2,127   1,813   95
Annual administrative charges   (7)       8   36   40   -
Contingent deferred sales charges   14       12   33   23   2
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   285       70   853   284   20
Amortization of deferred charges   -       -   -   -   -
Total expenses   1,202       477   3,049   2,160   117
Net investment income (loss)   3,403       333   (3,049)   (2,160)   (97)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (73,331)       (3,311)   2,193   (5,162)   (681)
Capital gains distributions   86,752       2,861   -   -   -
Total realized gain (loss) on investments                        
and capital gains distributions   13,421       (450)   2,193   (5,162)   (681)
Net unrealized appreciation                        
(depreciation) of investments   (23,980)       (12,251)   (56,620)   (61,029)   737
Net realized and unrealized gain (loss)                        
on investments   (10,559)       (12,701)   (54,427)   (66,191)   56
Net increase (decrease) in net assets                        
resulting from operations   $ (7,156)               $ (12,368)   $ (57,476)   $ (68,351)   $ (41)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        64                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

              ING    
    ING OpCap   ING   ING   Oppenheimer   ING PIMCO
    Balanced Value   Oppenheimer   Oppenheimer   Strategic   Total Return
    Portfolio -   Global Portfolio   Global Portfolio   Income Portfolio   Portfolio -
    Service Class   - Initial Class   - Service Class   - Service Class   Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 28                      $ 235   $ 3,247   $ 615   $ 377
Total investment income   28       235   3,247   615   377
Expenses:                        
Mortality, expense risk                        
and other charges   5       133   2,373   110   72
Annual administrative charges   -       2   33   1   1
Contingent deferred sales charges   -       5   39   -   -
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   1       3   726   9   9
Amortization of deferred charges   -       -   -   -   -
Total expenses   6       143   3,171   120   82
Net investment income (loss)   22       92   76   495   295
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (433)       256   (2,969)   (10)   3
Capital gains distributions   138       813   12,375   43   120
Total realized gain (loss) on investments                        
and capital gains distributions   (295)       1,069   9,406   33   123
Net unrealized appreciation                        
(depreciation) of investments   55       (6,344)   (83,530)   (2,559)   (581)
Net realized and unrealized gain (loss)                        
on investments   (240)       (5,275)   (74,124)   (2,526)   (458)
Net increase (decrease) in net assets                        
resulting from operations   $ (218)                  $ (5,183)     $ (74,048)   $ (2,031)   $ (163)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
            65             

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING Solution   ING Solution   ING Solution   ING Solution   ING Solution
    2015 Portfolio -   2025 Portfolio -   2035 Portfolio -   2045 Portfolio -   Income Portfolio
    Service Class   Service Class   Service Class   Service Class   - Service Class
Net investment income (loss)                    
Income:                    
Dividends   $ 194   $ 114   $ 129   $ 16   $ 107
Total investment income   194   114   129   16   107
Expenses:                    
Mortality, expense risk                    
and other charges   116   87   98   15   63
Annual administrative charges   1   1   1   -   1
Contingent deferred sales charges   5   4   2   -   -
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   46   27   47   5   9
Amortization of deferred charges   -   -   -   -   -
Total expenses   168   119   148   20   73
Net investment income (loss)   26   (5)   (19)   (4)   34
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   20   (20)   (95)   (18)   (113)
Capital gains distributions   250   251   324   47   102
Total realized gain (loss) on investments                    
and capital gains distributions   270   231   229   29   (11)
Net unrealized appreciation                    
(depreciation) of investments   (4,044)   (3,820)   (4,646)   (729)   (1,126)
Net realized and unrealized gain (loss)                    
on investments   (3,774)   (3,589)   (4,417)   (700)   (1,137)
Net increase (decrease) in net assets                    
resulting from operations   $ (3,748)   $ (3,594)   $ (4,436)   $ (704)   $ (1,103)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        66            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING T. Rowe              
    Price Diversified              
    Mid Cap   ING T. Rowe   ING Templeton        
    Growth   Price Growth   Foreign Equity   ING Thornburg   ING Thornburg
    Portfolio -   Equity Portfolio   Portfolio -   Value Portfolio -   Value Portfolio -
    Service Class   - Service Class   Service Class   Initial Class   Service Class
Net investment income (loss)                        
Income:                        
Dividends   $ 2                            $ 362   $ 4,489   $ 10   $ 9
Total investment income   2       362   4,489   10   9
Expenses:                        
Mortality, expense risk                        
and other charges   35       529   3,283   29   138
Annual administrative charges   -       6   56   1   2
Contingent deferred sales charges   -       4   52   3   1
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   9       175   1,108   1   39
Amortization of deferred charges   -       -   -   -   -
Total expenses   44       714   4,499   34   180
Net investment income (loss)   (42)       (352)   (10)   (24)   (171)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (43)       (2,931)   (11,417)   53   (649)
Capital gains distributions   613       2,684   -   -   -
Total realized gain (loss) on investments                        
and capital gains distributions   570       (247)   (11,417)   53   (649)
Net unrealized appreciation                        
(depreciation) of investments   (2,542)       (18,202)   (99,767)   (982)   (3,397)
Net realized and unrealized gain (loss)                        
on investments   (1,972)       (18,449)   (111,184)   (929)   (4,046)
Net increase (decrease) in net assets                        
resulting from operations   $ (2,014)                     $ (18,801)   $ (111,194)   $ (953)   $ (4,217)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        67                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

        ING UBS U.S.   ING Van   ING Van   ING Van
    ING UBS U.S.   Small Cap   Kampen   Kampen Equity   Kampen Equity
    Large Cap   Growth   Comstock   and Income   and Income
    Equity Portfolio   Portfolio -   Portfolio -   Portfolio -   Portfolio -
    - Service Class   Service Class   Service Class   Initial Class   Service Class
Net investment income (loss)                    
Income:                    
Dividends   $ 158   $ -   $ 7,118   $ 142   $ 9,822
Total investment income   158   -   7,118   142   9,822
Expenses:                    
Mortality, expense risk                    
and other charges   160   22   3,101   23   2,603
Annual administrative charges   2   -   46   55   -
Contingent deferred sales charges   6   -   47   52   -
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   49   7   1,079   788   -
Amortization of deferred charges   -   -   -   -   -
Total expenses   217   29   4,273   918   2,603
Net investment income (loss)   (59)   (29)   2,845   (776)   7,219
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   (386)   (384)   (1,537)   (10)   (3,861)
Capital gains distributions   -   -   11,068   158   10,550
Total realized gain (loss) on investments                    
and capital gains distributions   (386)   (384)   9,531   148   6,689
Net unrealized appreciation                    
(depreciation) of investments   (4,402)   182   (93,914)   (1,005)   (61,660)
Net realized and unrealized gain (loss)                    
on investments   (4,788)   (202)   (84,383)   (857)   (54,971)
Net increase (decrease) in net assets                    
resulting from operations   $ (4,847)   $ (231)   $ (81,538)   $ (1,633)   $ (47,752)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        68            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING VP       ING VP   ING VP        
    Strategic       Strategic   Strategic        
    Allocation       Allocation   Allocation   ING VP Growth   ING VP Growth
    Conservative       Growth   Moderate   and Income   and Income
    Portfolio -       Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Class S       Class S   Class S   Class I   Class S
Net investment income (loss)                        
Income:                        
Dividends   $ 56                  $ 15   $ 24   $ 2   $ 5,444
Total investment income   56       15   24   2   5,444
Expenses:                        
Mortality, expense risk                        
and other charges   13       7   8   2   1,948
Annual administrative charges   -       -   -   -   124
Contingent deferred sales charges   -       -   -   -   130
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   12       -   2   -   513
Amortization of deferred charges   -       -   -   -   -
Total expenses   25       7   10   2   2,715
Net investment income (loss)   31       8   14   -   2,729
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (32)       (19)   (47)   (1)   (10,390)
Capital gains distributions   116       91   99   -   -
Total realized gain (loss) on investments                        
and capital gains distributions   84       72   52   (1)   (10,390)
Net unrealized appreciation                        
(depreciation) of investments   (514)       (358)   (343)   (56)   (112,193)
Net realized and unrealized gain (loss)                        
on investments   (430)       (286)   (291)   (57)   (122,583)
Net increase (decrease) in net assets                        
resulting from operations   $ (399)              $ (278)   $ (277)   $ (57)   $ (119,854)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        69                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.
    Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -
    Series 1   Series 2   Series 3   Series 4   Series 5
Net investment income (loss)                        
Income:                        
Dividends   $ 2,512                  $ 2,167   $ 960   $ 894   $ 303
Total investment income   2,512       2,167   960   894   303
Expenses:                        
Mortality, expense risk                        
and other charges   933       857   896   635   397
Annual administrative charges   12       12   17   11   7
Contingent deferred sales charges   124       99   61   51   60
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   -       1   -   2   -
Amortization of deferred charges   -       -   -   -   -
Total expenses   1,069       969   974   699   464
Net investment income (loss)   1,443       1,198   (14)   195   (161)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (8,781)       (6,150)   (54)   (509)   (618)
Capital gains distributions   6,127       3,307   2,217   4,036   3,524
Total realized gain (loss) on investments                        
and capital gains distributions   (2,654)       (2,843)   2,163   3,527   2,906
Net unrealized appreciation                        
(depreciation) of investments   (2,509)       (1,790)   (4,695)   (6,328)   (4,867)
Net realized and unrealized gain (loss)                        
on investments   (5,163)       (4,633)   (2,532)   (2,801)   (1,961)
Net increase (decrease) in net assets                        
resulting from operations   $ (3,720)                 $ (3,435)   $ (2,546)   $ (2,606)   $ (2,122)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        70                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.
    Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -
    Series 6   Series 7   Series 8   Series 9   Series 10
Net investment income (loss)                        
Income:                        
Dividends   $ 416                     $ 277   $ 162   $ 149   $ 142
Total investment income   416       277   162   149   142
Expenses:                        
Mortality, expense risk                        
and other charges   423       275   162   130   117
Annual administrative charges   7       4   3   2   1
Contingent deferred sales charges   63       39   21   10   12
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   -       -   -   -   -
Amortization of deferred charges   -       -   -   -   -
Total expenses   493       318   186   142   130
Net investment income (loss)   (77)       (41)   (24)   7   12
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (577)       (376)   (159)   (166)   (56)
Capital gains distributions   3,525       2,685   1,561   1,393   992
Total realized gain (loss) on investments                        
and capital gains distributions   2,948       2,309   1,402   1,227   936
Net unrealized appreciation                        
(depreciation) of investments   (4,865)       (3,389)   (2,176)   (1,766)   (1,310)
Net realized and unrealized gain (loss)                        
on investments   (1,917)       (1,080)   (774)   (539)   (374)
Net increase (decrease) in net assets                        
resulting from operations   $ (1,994)               $ (1,121)   $ (798)   $ (532)   $ (362)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        71                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.   ING VP Global
    Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -   Equity Dividend
    Series 11   Series 12   Series 13   Series 14   Portfolio
Net investment income (loss)                        
Income:                        
Dividends   $ 200                   $ 58   $ 645   $ 1,547   $ 604
Total investment income   200       58   645   1,547   604
Expenses:                        
Mortality, expense risk                        
and other charges   175       66   634   1,644   252
Annual administrative charges   2       1   13   28   (2)
Contingent deferred sales charges   5       16   34   132   4
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   -       -   -   -   67
Amortization of deferred charges   -       -   -   -   -
Total expenses   182       83   681   1,804   321
Net investment income (loss)   18       (25)   (36)   (257)   283
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (237)       (147)   (549)   92   (3,349)
Capital gains distributions   1,568       796   1,962   446   7,365
Total realized gain (loss) on investments                        
and capital gains distributions   1,331       649   1,413   538   4,016
Net unrealized appreciation                        
(depreciation) of investments   (1,525)       (958)   (1,623)   41   (6,705)
Net realized and unrealized gain (loss)                        
on investments   (194)       (309)   (210)   579   (2,689)
Net increase (decrease) in net assets                        
resulting from operations   $ (176)              $ (334)   $ (246)   $ 322   $ (2,406)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        72                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

                ING Lehman ING 
    ING BlackRock           Brothers U.S. Opportunistic 
    Global Science   ING Global   ING   Aggregate Bond Large Cap
    and Technology Equity Option     International   Index®  Growth
    Portfolio -   Portfolio -   Index Portfolio -   Portfolio - Portfolio - 
    Class S   Class S   Class S   Class S Class S  
Net investment income (loss)                    
Income:                    
Dividends   $ -   $ 25   $ 97   $ 2,101      $ 2 
Total investment income   -   25   97   2,101   2
Expenses:                    
Mortality, expense risk                    
and other charges   1,417   3   36   1,092   5
Annual administrative charges   38   -   1   36   -
Contingent deferred sales charges   18   -   1   68   -
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   535   -   13   392   1
Amortization of deferred charges   -   -   -   -   -
Total expenses   2,008   3   51   1,588   6
Net investment income (loss)   (2,008)   22   46   513   (4)
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   (6,000)   (1)   (755)   (460)   13
Capital gains distributions   -   -   -   296   -
Total realized gain (loss) on investments                    
and capital gains distributions   (6,000)   (1)   (755)   (164)   13
Net unrealized appreciation                    
(depreciation) of investments   (42,952)   92   (1,100)   4,506   (300)
Net realized and unrealized gain (loss)                    
on investments   (48,952)   91   (1,855)   4,342   (287)
Net increase (decrease) in net assets                    
resulting from operations   $ (50,960)   $ 113   $ (1,809)   $ 4,855 $ (291) 
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        73            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING   ING Russell™            
    Opportunistic   Global Large   ING Russell™   ING Russell™   ING Russell™
    Large Cap   Cap Index 85%   Large Cap   Mid Cap Index   Small Cap Index
    Value Portfolio -   Portfolio -   Index Portfolio -   Portfolio -   Portfolio -
    Class S   Class S   Class S   Class S   Class S
Net investment income (loss)                        
Income:                        
Dividends   $ 305               $ 29   $ 220   $ 265   $ 617
Total investment income   305       29   220   265   617
Expenses:                        
Mortality, expense risk                        
and other charges   277       6   123   133   438
Annual administrative charges   7       -   2   3   21
Contingent deferred sales charges   7       -   1   1   11
Minimum death benefit guarantee charges   -       -   -   -   -
Other contract charges   57       -   36   47   179
Amortization of deferred charges   -       -   -   -   -
Total expenses   348       6   162   184   649
Net investment income (loss)   (43)       23   58   81   (32)
 
Realized and unrealized gain (loss)                        
on investments                        
Net realized gain (loss) on investments   (889)       (50)   (2,760)   (1,525)   (5,156)
Capital gains distributions   2,902       -   -   -   -
Total realized gain (loss) on investments                        
and capital gains distributions   2,013       (50)   (2,760)   (1,525)   (5,156)
Net unrealized appreciation                        
(depreciation) of investments   (9,695)       161   (2,334)   (5,755)   (23,030)
Net realized and unrealized gain (loss)                        
on investments   (7,682)       111   (5,094)   (7,280)   (28,186)
Net increase (decrease) in net assets                        
resulting from operations   $ (7,725)             $ 134   $ (5,036)   $ (7,199)   $ (28,218)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        74                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

                    ING
                    WisdomTreeSM
    ING VP Index   ING VP Index   ING VP Index   ING VP Small   Global High-
    Plus LargeCap   Plus MidCap   Plus SmallCap   Company   Yielding Equity
    Portfolio -   Portfolio -   Portfolio -   Portfolio -   Index Portfolio -
    Class S   Class S   Class S   Class S   Class S
Net investment income (loss)                    
Income:                    
Dividends   $ 5,377   $ 2,072   $ 876   $ 22   $ 4,694
Total investment income   5,377   2,072   876   22   4,694
Expenses:                    
Mortality, expense risk                    
and other charges   4,203   3,006   2,281   301   1,670
Annual administrative charges   89   42   32   8   24
Contingent deferred sales charges   306   59   49   7   8
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   834   877   711   109   649
Amortization of deferred charges   -   -   -   -   -
Total expenses   5,432   3,984   3,073   425   2,351
Net investment income (loss)   (55)   (1,912)   (2,197)   (403)   2,343
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   (1,800)   (13,523)   (12,725)   (2,135)   (3,268)
Capital gains distributions   20,876   24,865   9,146   352   -
Total realized gain (loss) on investments                    
and capital gains distributions   19,076   11,342   (3,579)   (1,783)   (3,268)
Net unrealized appreciation                    
(depreciation) of investments   (136,091)   (89,601)   (47,599)   (10,805)   (68,858)
Net realized and unrealized gain (loss)                    
on investments   (117,015)   (78,259)   (51,178)   (12,588)   (72,126)
Net increase (decrease) in net assets                    
resulting from operations   $ (117,070)   $ (80,171)   $ (53,375)   $ (12,991)   $ (69,783)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        75            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    ING VP       ING VP       ING VP
    Financial   ING VP   MidCap       SmallCap
    Services   International   Opportunities   ING VP Real   Opportunities
    Portfolio -   Value Portfolio -   Portfolio -   Estate Portfolio   Portfolio -
    Class S   Class S   Class S   - Class S   Class S
Net investment income (loss)                    
Income:                    
Dividends   $ 877   $ 307   $ -   $ 130   $ -
Total investment income   877   307   -   130   -
Expenses:                    
Mortality, expense risk                    
and other charges   821   120   3,560   56   1,333
Annual administrative charges   3   1   191   -   29
Contingent deferred sales charges   11   -   59   -   34
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   254   31   831   3   484
Amortization of deferred charges   -   -   1   -   -
Total expenses   1,089   152   4,642   59   1,880
Net investment income (loss)   (212)   155   (4,642)   71   (1,880)
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   (24,753)   (400)   2,904   (3,094)   3,774
Capital gains distributions   3,875   1,881   -   1,401   12,586
Total realized gain (loss) on investments                    
and capital gains distributions   (20,878)   1,481   2,904   (1,693)   16,360
Net unrealized appreciation                    
(depreciation) of investments   6,684   (8,028)   (128,278)   1,825   (46,306)
Net realized and unrealized gain (loss)                    
on investments   (14,194)   (6,547)   (125,374)   132   (29,946)
Net increase (decrease) in net assets                    
resulting from operations   $ (14,406)   $ (6,392)   $ (130,016)   $ 203   $ (31,826)
 
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
        76            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

            Legg Mason      
            Partners      
            Variable   Legg Mason    
    ING VP   ING VP   International   Partners   Legg Mason
    Balanced   Intermediate   All Cap   Variable   Partners
    Portfolio -   Bond Portfolio -   Opportunity   Investors   Variable High
    Class S   Class S   Portfolio   Portfolio   Income Portfolio
Net investment income (loss)                  
Income:                  
Dividends   $ 272   $ 68,212   $ 1   $ 1   $ 8
Total investment income   272   68,212   1   1   8
Expenses:                  
Mortality, expense risk                  
and other charges   107   20,290   1   2   1
Annual administrative charges   1   307   -   -   -
Contingent deferred sales charges   4   574   -   -   -
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   9   6,771   -   -   -
Amortization of deferred charges   -   -   -   -   -
Total expenses   121   27,942   1   2   1
Net investment income (loss)   151   40,270   -   (1)   7
 
Realized and unrealized gain (loss)                  
on investments                  
Net realized gain (loss) on investments   (418)   (20,545)   (27)   (18)   (1)
Capital gains distributions   767   31,632   -   4   -
Total realized gain (loss) on investments                  
and capital gains distributions   349   11,087   (27)   (14)   (1)
Net unrealized appreciation                  
(depreciation) of investments   (3,303)   (189,985)   (9)   (41)   (30)
Net realized and unrealized gain (loss)                  
on investments   (2,954)   (178,898)   (36)   (55)   (31)
Net increase (decrease) in net assets                  
resulting from operations   $ (2,803)   $ (138,628)   $ (36)   $ (56)   $ (24)
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
        77                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    Legg Mason   Oppenheimer            
    Partners   Main Street   PIMCO Real   Pioneer Equity   Pioneer Small
    Variable Money   Small Cap   Return Portfolio   Income VCT   Cap Value VCT
    Market   Fund®/VA -   - Administrative   Portfolio -   Portfolio -
    Portfolio   Service Class   Class   Class II   Class II
Net investment income (loss)                    
Income:                    
Dividends   $ 3   $ 3   $ 210   $ 403   $ 9
Total investment income   3   3   210   403   9
Expenses:                    
Mortality, expense risk                    
and other charges   1   11   60   153   56
Annual administrative charges   -   -   -   1   1
Contingent deferred sales charges   3   -   -   -   2
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   -   3   10   34   2
Amortization of deferred charges   -   -   -   -   -
Total expenses   4   14   70   188   61
Net investment income (loss)   (1)   (11)   140   215   (52)
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   -   (41)   (17)   (96)   (649)
Capital gains distributions   -   63   12   914   602
Total realized gain (loss) on investments                    
and capital gains distributions   -   22   (5)   818   (47)
Net unrealized appreciation                    
(depreciation) of investments   -   (523)   (981)   (6,571)   (1,586)
Net realized and unrealized gain (loss)                    
on investments   -   (501)   (986)   (5,753)   (1,633)
Net increase (decrease) in net assets                    
resulting from operations   $ (1)   $ (512)   $ (846)   $ (5,538)   $ (1,685)
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
        78            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

            ProFund VP       Wells Fargo
    ProFund VP   ProFund VP   Rising Rates   ProFund VP   Advantage Asset
    Bull   Europe 30   Opportunity   Small-Cap   Allocation Fund
Net investment income (loss)                    
Income:                    
Dividends   $ -   $ 343   $ 1,169   $ 137   $ 64
Total investment income   -   343   1,169   137   64
Expenses:                    
Mortality, expense risk                    
and other charges   375   289   407   613   47
Annual administrative charges   10   5   6   3   1
Contingent deferred sales charges   9   11   8   17   1
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   127   97   103   198   19
Amortization of deferred charges   -   -   -   -   -
Total expenses   521   402   524   831   68
Net investment income (loss)   (521)   (59)   645   (694)   (4)
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   (548)   (233)   (2,446)   (18,348)   (15)
Capital gains distributions   357   2,401   -   4,982   219
Total realized gain (loss) on investments                    
and capital gains distributions   (191)   2,168   (2,446)   (13,366)   204
Net unrealized appreciation                    
(depreciation) of investments   (9,414)   (11,280)   (7,148)   9,293   (1,153)
Net realized and unrealized gain (loss)                    
on investments   (9,605)   (9,112)   (9,594)   (4,073)   (949)
Net increase (decrease) in net assets                    
resulting from operations   $ (10,126)   $ (9,171)   $ (8,949)   $ (4,767)   $ (953)
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
        79            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    Wells Fargo   Wells Fargo   Wells Fargo Wells Fargo     Wells Fargo
    Advantage C&B   Advantage   Advantage  Advantage   Advantage
    Large Cap   Equity Income   Large Company Money Market   Small Cap
    Value Fund   Fund   Growth Fund Fund    Growth Fund
Net investment income (loss)                    
Income:                    
Dividends   $ 5   $ 15   $ 5 $ 2    $ -
Total investment income   5   15   5   2   -
Expenses:                    
Mortality, expense risk                    
and other charges   7   16   38   1   12
Annual administrative charges   -   -   -   -   -
Contingent deferred sales charges   -   -   1   2   -
Minimum death benefit guarantee charges   -   -   -   -   -
Other contract charges   3   4   14   -   4
Amortization of deferred charges   -   -   -   -   -
Total expenses   10   20   53   3   16
Net investment income (loss)   (5)   (5)   (48)   (1)   (16)
 
Realized and unrealized gain (loss)                    
on investments                    
Net realized gain (loss) on investments   (1)   (25)   3   -   (6)
Capital gains distributions   -   124   -   -   185
Total realized gain (loss) on investments                    
and capital gains distributions   (1)   99   3   -   179
Net unrealized appreciation                    
(depreciation) of investments   (149)   (456)   (940)   -   (508)
Net realized and unrealized gain (loss)                    
on investments   (150)   (357)   (937)   -   (329)
Net increase (decrease) in net assets                    
resulting from operations   $ (155)   $ (362)   $ (985) $ (1)     $ (345)
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
        80            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Operations
For the year ended December 31, 2008
(Dollars in thousands)

    Wells Fargo    
    Advantage Total    
    Return Bond    
    Fund    
Net investment income (loss)      
Income:      
Dividends    $ 58     
Total investment income   58    
Expenses:        
Mortality, expense risk        
and other charges   21    
Annual administrative charges   -    
Contingent deferred sales charges   -    
Minimum death benefit guarantee charges   -    
Other contract charges   7    
Amortization of deferred charges   -    
Total expenses   28    
Net investment income (loss)   30    
     
Realized and unrealized gain (loss)        
on investments        
Net realized gain (loss) on investments   (9)    
Capital gains distributions   -    
Total realized gain (loss) on investments        
and capital gains distributions   (9)    
Net unrealized appreciation        
(depreciation) of investments   (21)    
Net realized and unrealized gain (loss)        
on investments   (30)    
Net increase (decrease) in net assets        
resulting from operations   $ -    
     
     
     
     
The accompanying notes are an integral part of these financial statements.
     
    81    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

                Columbia
        BlackRock   Columbia Asset   Federal
    AIM V.I.   Global   Allocation Fund,   Securities Fund,
    Leisure Fund -   Allocation V.I.   Variable Series -   Variable Series -
    Series I Shares   Fund - Class III   Class A   Class A
Net assets at January 1, 2007   $ 52,417   $ -   $ 540   $ 81
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (388)   -   6   4
Total realized gain (loss) on investments                
and capital gains distributions   5,332   -   66   -
Net unrealized appreciation (depreciation)                
of investments   (5,956)   -   (32)   1
Net increase (decrease) in net assets from operations   (1,012)   -   40   5
Changes from principal transactions:                
Premiums   78   -   -   -
Surrenders and withdrawals   (8,809)   -   98   (5)
Benefit payments   (375)   -   (10)   -
Transfers between Divisions                
(including fixed account), net   6   -   -   (1)
Increase (decrease) in net assets derived from                
principal transactions   (9,100)   -   88   (6)
Total increase (decrease) in net assets   (10,112)   -   128   (1)
Net assets at December 31, 2007   42,305   -   668   80
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (438)   7,155   10   4
Total realized gain (loss) on investments                
and capital gains distributions   4,232   591   71   (6)
Net unrealized appreciation (depreciation)                
of investments   (19,898)   (54,254)   (231)   4
Net increase (decrease) in net assets from operations   (16,104)   (46,508)   (150)   2
Changes from principal transactions:                
Premiums   48   222,833   -   -
Death Benefits   (251)   (1,171)   (51)   -
Surrenders and withdrawals   (8,138)   222,426   (205)   (55)
Transfers between Divisions                
(including fixed account), net   2   220   -   -
Increase (decrease) in net assets derived from                
principal transactions   (8,339)   444,308   (256)   (55)
Total increase (decrease) in net assets   (24,443)   397,800   (406)   (53)
Net assets at December 31, 2008   $ 17,862   $ 397,800   $ 262   $ 27
 
 
 
The accompanying notes are an integral part of these financial statements.    
 
    82            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

            Columbia Small    
    Columbia Large   Columbia Small   Company   Fidelity® VIP
    Cap Growth   Cap Value   Growth Fund,   Equity-Income
    Fund, Variable   Fund, Variable   Variable Series -   Portfolio -
    Series - Class A   Series - Class B   Class A   Service Class 2
Net assets at January 1, 2007   $ 547   $ 335,177   $ 82   $ 376,023
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (6)   (6,366)   (1)   (2,129)
Total realized gain (loss) on investments                
and capital gains distributions   25   51,799   6   47,017
Net unrealized appreciation (depreciation)                
of investments   48   (57,677)   5   (48,769)
Net increase (decrease) in net assets from operations   67   (12,244)   10   (3,881)
Changes from principal transactions:                
Premiums   -   324   -   54,218
Surrenders and withdrawals   (118)   (64,022)   (2)   (50,474)
Benefit payments   (12)   (2,329)   -   (2,523)
Transfers between Divisions                
(including fixed account), net   -   (17)   1   24
Increase (decrease) in net assets derived from                
principal transactions   (130)   (66,044)   (1)   1,245
Total increase (decrease) in net assets   (63)   (78,288)   9   (2,636)
Net assets at December 31, 2007   484   256,889   91   373,387
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (5)   (4,187)   (1)   (605)
Total realized gain (loss) on investments                
and capital gains distributions   (1)   23,641   10   (12,351)
Net unrealized appreciation (depreciation)                
of investments   (189)   (86,156)   (47)   (132,398)
Net increase (decrease) in net assets from operations   (195)   (66,702)   (38)   (145,354)
Changes from principal transactions:                
Premiums   -   97   -   15,056
Death Benefits   (2)   (1,208)   -   (2,590)
Surrenders and withdrawals   (29)   (47,462)   (2)   (73,720)
Transfers between Divisions                
(including fixed account), net   -   125   -   277
Increase (decrease) in net assets derived from                
principal transactions   (31)   (48,448)   (2)   (60,977)
Total increase (decrease) in net assets   (226)   (115,150)   (40)   (206,331)
Net assets at December 31, 2008   $ 258   $ 141,739   $ 51   $ 167,056
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    83            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    Fidelity® VIP   Franklin Small        
    Contrafund®   Cap Value        
    Portfolio -   Securities Fund   ING GET Fund   ING GET Fund
    Service Class 2   - Class 2   - Series U   - Series V
Net assets at January 1, 2007   $ 561,251   $ 5,563   $ 85,061   $ 118,802
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (8,452)   (43)   141   140
Total realized gain (loss) on investments                
and capital gains distributions   223,955   672   1,617   484
Net unrealized appreciation (depreciation)                
of investments   (120,604)   (1,114)   (288)   2,246
Net increase (decrease) in net assets from operations   94,899   (485)   1,470   2,870
Changes from principal transactions:                
Premiums   205,156   4,368   (58)   (113)
Surrenders and withdrawals   65,907   (883)   (14,178)   (24,758)
Benefit payments   (4,754)   (16)   (1,528)   (1,074)
Transfers between Divisions                
(including fixed account), net   128   1   9   (2)
Increase (decrease) in net assets derived from                
principal transactions   266,437   3,470   (15,755)   (25,947)
Total increase (decrease) in net assets   361,336   2,985   (14,285)   (23,077)
Net assets at December 31, 2007   922,587   8,548   70,776   95,725
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (11,521)   (16)   1,366   821
Total realized gain (loss) on investments                
and capital gains distributions   8,137   520   (3,996)   1,373
Net unrealized appreciation (depreciation)                
of investments   (467,013)   (3,792)   (612)   (3,254)
Net increase (decrease) in net assets from operations   (470,397)   (3,288)   (3,242)   (1,060)
Changes from principal transactions:                
Premiums   225,354   3,142   (32)   (50)
Death Benefits   (8,332)   (3)   (173)   (254)
Surrenders and withdrawals   (13,373)   (1,153)   (67,329)   (94,690)
Transfers between Divisions                
(including fixed account), net   659   -   -   329
Increase (decrease) in net assets derived from                
principal transactions   204,308   1,986   (67,534)   (94,665)
Total increase (decrease) in net assets   (266,089)   (1,302)   (70,776)   (95,725)
Net assets at December 31, 2008   $ 656,498   $ 7,246   $ -   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    84            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING   ING        
    AllianceBernstein   AllianceBernstein   ING American    
    Mid Cap Growth   Mid Cap Growth   Funds Asset   ING American
    Portfolio - Service   Portfolio - Service 2   Allocation   Funds Bond
    Class   Class   Portfolio   Portfolio
Net assets at January 1, 2007   $ 423,458   $ 18,807   $ -   $ -
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (8,361)   (466)   -   -
Total realized gain (loss) on investments                
and capital gains distributions   63,913   1,656   -   -
Net unrealized appreciation (depreciation)                
of investments   (22,763)   272   -   -
Net increase (decrease) in net assets from operations   32,789   1,462   -   -
Changes from principal transactions:                
Premiums   28,496   396   -   -
Surrenders and withdrawals   (43,890)   (1,516)   -   -
Benefit payments   (9,281)   (273)   -   -
Transfers between Divisions                
(including fixed account), net   110   (8)   -   -
Increase (decrease) in net assets derived from                
principal transactions   (24,565)   (1,401)   -   -
Total increase (decrease) in net assets   8,224   61   -   -
Net assets at December 31, 2007   431,682   18,868   -   -
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (6,542)   (365)   (1,353)   (2,803)
Total realized gain (loss) on investments                
and capital gains distributions   62,059   2,344   (1,220)   (1,802)
Net unrealized appreciation (depreciation)                
of investments   (240,695)   (10,453)   (22,925)   (15,657)
Net increase (decrease) in net assets from operations   (185,178)   (8,474)   (25,498)   (20,262)
Changes from principal transactions:                
Premiums   23,279   197   119,105   161,909
Death Benefits   (6,938)   (93)   (105)   (793)
Surrenders and withdrawals   (71,710)   (1,637)   54,827   111,211
Transfers between Divisions                
(including fixed account), net   452   3   40   103
Increase (decrease) in net assets derived from                
principal transactions   (54,917)   (1,530)   173,867   272,430
Total increase (decrease) in net assets   (240,095)   (10,004)   148,369   252,168
Net assets at December 31, 2008   $ 191,587   $ 8,864   $ 148,369   $ 252,168
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    85            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

                ING American
            ING American   Funds World
    ING American   ING American   Funds   Allocation
    Funds Growth   Funds Growth-   International   Portfolio -
    Portfolio   Income Portfolio   Portfolio   Service Class
Net assets at January 1, 2007   $ 1,979,019   $ 1,374,118   $ 1,078,309   $ -
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (44,935)   (19,201)   (16,815)   -
Total realized gain (loss) on investments                
and capital gains distributions   41,143   43,595   52,427   -
Net unrealized appreciation (depreciation)                
of investments   184,268   221   153,243   -
Net increase (decrease) in net assets from operations   180,476   24,615   188,855   -
Changes from principal transactions:                
Premiums   410,477   290,323   285,023   -
Surrenders and withdrawals   (96,580)   (80,753)   5,307   -
Benefit payments   (17,665)   (13,629)   (9,664)   -
Transfers between Divisions                
(including fixed account), net   39   334   170   -
Increase (decrease) in net assets derived from                
principal transactions   296,271   196,275   280,836   -
Total increase (decrease) in net assets   476,747   220,890   469,691   -
Net assets at December 31, 2007   2,455,766   1,595,008   1,548,000   -
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (33,533)   (12,482)   (6,347)   (23)
Total realized gain (loss) on investments                
and capital gains distributions   178,272   59,959   101,181   -
Net unrealized appreciation (depreciation)                
of investments   (1,354,204)   (725,097)   (830,068)   386
Net increase (decrease) in net assets from operations   (1,209,465)   (677,620)   (735,234)   363
Changes from principal transactions:                
Premiums   414,568   278,361   270,467   10,735
Death Benefits   (22,031)   (15,493)   (12,839)   -
Surrenders and withdrawals   (96,239)   (107,104)   (117,571)   2,030
Transfers between Divisions                
(including fixed account), net   1,666   1,733   953   -
Increase (decrease) in net assets derived from                
principal transactions   297,964   157,497   141,010   12,765
Total increase (decrease) in net assets   (911,501)   (520,123)   (594,224)   13,128
Net assets at December 31, 2008   $ 1,544,265   $ 1,074,885   $ 953,776   $ 13,128
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    86            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING BlackRock            
    Large Cap   ING BlackRock        
    Growth   Large Cap   ING BlackRock   ING BlackRock
    Portfolio -   Growth   Large Cap   Large Cap
    Institutional   Portfolio -   Value Portfolio -   Value Portfolio -
    Class   Service Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ -   $ 145,523   $ 70,539   $ 4,559
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (2)   (3,393)   (1,336)   (104)
Total realized gain (loss) on investments                
and capital gains distributions   -   3,017   8,082   304
Net unrealized appreciation (depreciation)                
of investments   (4)   6,394   (4,970)   (118)
Net increase (decrease) in net assets from operations   (6)   6,018   1,776   82
Changes from principal transactions:                
Premiums   -   18,670   3,244   32
Surrenders and withdrawals   250   (15,086)   (17,295)   (358)
Benefit payments   -   (1,619)   (703)   (11)
Transfers between Divisions                
(including fixed account), net   -   1   (9)   (1)
Increase (decrease) in net assets derived from                
principal transactions   250   1,966   (14,763)   (338)
Total increase (decrease) in net assets   244   7,984   (12,987)   (256)
Net assets at December 31, 2007   244   153,507   57,552   4,303
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (2)   (2,917)   (876)   (78)
Total realized gain (loss) on investments                
and capital gains distributions   14   8,373   1,124   184
Net unrealized appreciation (depreciation)                
of investments   (103)   (69,280)   (18,792)   (1,532)
Net increase (decrease) in net assets from operations   (91)   (63,824)   (18,544)   (1,426)
Changes from principal transactions:                
Premiums   -   18,099   12   -
Death Benefits   -   (1,914)   (619)   (33)
Surrenders and withdrawals   (22)   (11,624)   (10,858)   (638)
Transfers between Divisions                
(including fixed account), net   -   101   54   6
Increase (decrease) in net assets derived from                
principal transactions   (22)   4,662   (11,411)   (665)
Total increase (decrease) in net assets   (113)   (59,162)   (29,955)   (2,091)
Net assets at December 31, 2008   $ 131   $ 94,345   $ 27,597   $ 2,212
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    87            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Capital   ING Capital      
    Guardian U.S.   Guardian U.S.   ING   ING
    Equities   Equities   EquitiesPlus   EquitiesPlus
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ 561,314   $ 11,099   $ 126,427   $ 33
 
Increase (decrease) in net assets                        
Operations:                        
Net investment income (loss)   (8,446)   (205)   2,048       -
Total realized gain (loss) on investments                        
and capital gains distributions   72,900   1,618   8,209       2
Net unrealized appreciation (depreciation)                        
of investments   (74,174)   (1,587)   (8,556)       (2)
Net increase (decrease) in net assets from operations   (9,720)   (174)   1,701       -
Changes from principal transactions:                        
Premiums   12,772   92   1,752       -
Surrenders and withdrawals   (91,416)   (2,442)   (23,425)       -
Benefit payments   (7,506)   (72)   (4,054)       -
Transfers between Divisions                        
(including fixed account), net       (8)   (2)   1       -
Increase (decrease) in net assets derived from                        
principal transactions   (86,158)   (2,424)   (25,726)       -
Total increase (decrease) in net assets   (95,878)   (2,598)   (24,025)       -
Net assets at December 31, 2007   465,436   8,501   102,402       33
 
Increase (decrease) in net assets                        
Operations:                        
Net investment income (loss)       288   (36)   6,498       2
Total realized gain (loss) on investments                        
and capital gains distributions   (13,678)   (1,031)   (18,728)       (6)
Net unrealized appreciation (depreciation)                        
of investments   (56,047)   (214)   (1,312)       (1)
Net increase (decrease) in net assets from operations   (69,437)   (1,281)   (13,542)       (5)
Changes from principal transactions:                        
Premiums   4,082   42   498       -
Death Benefits   (4,052)   (105)   (631)       -
Surrenders and withdrawals   (396,237)   (7,157)   (88,733)       (28)
Transfers between Divisions                        
(including fixed account), net       208   -   6       -
Increase (decrease) in net assets derived from                        
principal transactions   (395,999)   (7,220)   (88,860)       (28)
Total increase (decrease) in net assets   (465,436)   (8,501)   (102,402)       (33)
Net assets at December 31, 2008   $ -   $ -   $ -   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    88                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Evergreen           ING FMRSM
    Health Sciences   ING Evergreen   ING Evergreen   Diversified Mid
    Portfolio -   Omega Portfolio   Omega Portfolio   Cap Portfolio -
    Service Class   - Service Class   - Service 2 Class   Service Class
Net assets at January 1, 2007   $ 192,226   $ 10,532   $ 1,331   $ 627,079
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (4,246)   (192)   (34)   (18,320)
Total realized gain (loss) on investments                
and capital gains distributions   13,809   483   59   58,263
Net unrealized appreciation (depreciation)                
of investments   1,835   486   87   47,387
Net increase (decrease) in net assets from operations   11,398   777   112   87,330
Changes from principal transactions:                
Premiums   23,085   460   44   63,636
Surrenders and withdrawals   (19,590)   (3,181)   (174)   294,810
Benefit payments   (1,463)   (60)   (11)   (10,999)
Transfers between Divisions                
(including fixed account), net   (21)   (1)   (1)   140
Increase (decrease) in net assets derived from                
principal transactions   2,011   (2,782)   (142)   347,587
Total increase (decrease) in net assets   13,409   (2,005)   (30)   434,917
Net assets at December 31, 2007   205,635   8,527   1,301   1,061,996
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (4,148)   (152)   (28)   (12,891)
Total realized gain (loss) on investments                
and capital gains distributions   9,968   (57)   137   60,933
Net unrealized appreciation (depreciation)                
of investments   (75,064)   (2,013)   (467)   (463,280)
Net increase (decrease) in net assets from operations   (69,244)   (2,222)   (358)   (415,238)
Changes from principal transactions:                
Premiums   21,772   1,032   -   69,623
Death Benefits   (1,430)   (47)   (8)   (13,694)
Surrenders and withdrawals   7,981   1,625   (135)   (122,565)
Transfers between Divisions                
(including fixed account), net   35   1   2   960
Increase (decrease) in net assets derived from                
principal transactions   28,358   2,611   (141)   (65,676)
Total increase (decrease) in net assets   (40,886)   389   (499)   (480,914)
Net assets at December 31, 2008   $ 164,749   $ 8,916   $ 802   $ 581,082
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    89            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING FMRSM            
    Diversified Mid   ING Focus 5   ING Franklin   ING Franklin
    Cap Portfolio -   Portfolio -   Income Portfolio   Income Portfolio
    Service 2 Class   Service Class   - Service Class   - Service 2 Class
Net assets at January 1, 2007   $ 36,090   $ -   $ 156,693   $ 2,916
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (1,087)   (28)   (2,903)   (88)
Total realized gain (loss) on investments                
and capital gains distributions   1,785   126   4,924   126
Net unrealized appreciation (depreciation)                
of investments   3,712   (2,310)   (5,414)   (205)
Net increase (decrease) in net assets from operations   4,410   (2,212)   (3,393)   (167)
Changes from principal transactions:                
Premiums   733   68,220   109,305   872
Surrenders and withdrawals   6,060   33,534   82,850   5,448
Benefit payments   (213)   -   (3,427)   (48)
Transfers between Divisions                
(including fixed account), net   (8)   (1)   48   (1)
Increase (decrease) in net assets derived from                
principal transactions   6,572   101,753   188,776   6,271
Total increase (decrease) in net assets   10,982   99,541   185,383   6,104
Net assets at December 31, 2007   47,072   99,541   342,076   9,020
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (842)   (389)   2,763   25
Total realized gain (loss) on investments                
and capital gains distributions   2,873   (7,459)   (5,413)   (547)
Net unrealized appreciation (depreciation)                
of investments   (20,323)   (76,000)   (125,039)   (2,514)
Net increase (decrease) in net assets from operations   (18,292)   (83,848)   (127,689)   (3,036)
Changes from principal transactions:                
Premiums   224   112,585   71,357   186
Death Benefits   (400)   (668)   (4,670)   (22)
Surrenders and withdrawals   (3,226)   3,132   6,955   (293)
Transfers between Divisions                
(including fixed account), net   9   7   388   (3)
Increase (decrease) in net assets derived from                
principal transactions   (3,393)   115,056   74,030   (132)
Total increase (decrease) in net assets   (21,685)   31,208   (53,659)   (3,168)
Net assets at December 31, 2008   $ 25,387   $ 130,749   $ 288,417   $ 5,852
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    90            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

        ING Franklin        
        Templeton        
    ING Franklin   Founding   ING Global   ING Global
    Mutual Shares   Strategy   Real Estate   Real Estate
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ -   $ -   $ 76,113   $ 1,807
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (1,728)   (3,032)   1,025   4
Total realized gain (loss) on investments                
and capital gains distributions   2   (165)   5,763   116
Net unrealized appreciation (depreciation)                
of investments   (455)   (10,625)   (23,323)   (481)
Net increase (decrease) in net assets from operations   (2,181)   (13,822)   (16,535)   (361)
Changes from principal transactions:                
Premiums   53,844   408,324   65,604   780
Surrenders and withdrawals   148,367   126,300   20,835   509
Benefit payments   (623)   (178)   (633)   -
Transfers between Divisions                
(including fixed account), net   78   (34)   11   1
Increase (decrease) in net assets derived from                
principal transactions   201,666   534,412   85,817   1,290
Total increase (decrease) in net assets   199,485   520,590   69,282   929
Net assets at December 31, 2007   199,485   520,590   145,395   2,736
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   2,201   (16,020)   (3,367)   (61)
Total realized gain (loss) on investments                
and capital gains distributions   (6,659)   (5,642)   (9,292)   (169)
Net unrealized appreciation (depreciation)                
of investments   (82,809)   (305,460)   (69,097)   (1,052)
Net increase (decrease) in net assets from operations   (87,267)   (327,122)   (81,756)   (1,282)
Changes from principal transactions:                
Premiums   42,441   378,301   44,889   38
Death Benefits   (2,111)   (4,052)   (1,440)   (45)
Surrenders and withdrawals   (6,388)   115,827   11,290   248
Transfers between Divisions                
(including fixed account), net   154   475   172   -
Increase (decrease) in net assets derived from                
principal transactions   34,096   490,551   54,911   241
Total increase (decrease) in net assets   (53,171)   163,429   (26,845)   (1,041)
Net assets at December 31, 2008   $ 146,314   $ 684,019   $ 118,550   $ 1,695
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    91            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Global   ING Global   ING Global   ING Global
    Resources   Resources   Technology   Technology
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ 529,809   $ 31,781   $ 80,357   $ 6,829
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (14,135)   (895)   (2,120)   (167)
Total realized gain (loss) on investments                
and capital gains distributions   95,240   5,560   2,637   174
Net unrealized appreciation (depreciation)                
of investments   83,891   4,867   4,125   414
Net increase (decrease) in net assets from operations   164,996   9,532   4,642   421
Changes from principal transactions:                
Premiums   117,060   964   18,087   195
Surrenders and withdrawals   21,380   (961)   27,350   (116)
Benefit payments   (5,246)   (141)   (872)   (32)
Transfers between Divisions                
(including fixed account), net   48   (6)   (7)   (1)
Increase (decrease) in net assets derived from                
principal transactions   133,242   (144)   44,558   46
Total increase (decrease) in net assets   298,238   9,388   49,200   467
Net assets at December 31, 2007   828,047   41,169   129,557   7,296
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (5,155)   (428)   (788)   (48)
Total realized gain (loss) on investments                
and capital gains distributions   157,644   7,343   (3,918)   (20)
Net unrealized appreciation (depreciation)                
of investments   (567,168)   (24,926)   (5,882)   (524)
Net increase (decrease) in net assets from operations   (414,679)   (18,011)   (10,588)   (592)
Changes from principal transactions:                
Premiums   151,559   728   7,057   12
Death Benefits   (6,652)   (251)   (253)   -
Surrenders and withdrawals   (11,801)   (1,108)   (125,776)   (6,716)
Transfers between Divisions                
(including fixed account), net   527   4   3   -
Increase (decrease) in net assets derived from                
principal transactions   133,633   (627)   (118,969)   (6,704)
Total increase (decrease) in net assets   (281,046)   (18,638)   (129,557)   (7,296)
Net assets at December 31, 2008   $ 547,001   $ 22,531   $ -   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    92            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING   ING        
    International   International        
    Growth   Growth   ING Janus   ING Janus
    Opportunities   Opportunities   Contrarian   Contrarian
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ 155,944   $ 10,449   $ 149,666   $ 7,234
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (1,217)   (154)   (11,775)   (722)
Total realized gain (loss) on investments                
and capital gains distributions   36,139   2,299   27,504   2,074
Net unrealized appreciation (depreciation)                
of investments   (12,310)   (598)   37,721   1,190
Net increase (decrease) in net assets from operations   22,612   1,547   53,450   2,542
Changes from principal transactions:                
Premiums   76   2   104,170   863
Surrenders and withdrawals   (33,044)   (1,113)   481,718   28,911
Benefit payments   (3,233)   (54)   (4,382)   (127)
Transfers between Divisions                
(including fixed account), net   23   (8)   (7)   (10)
Increase (decrease) in net assets derived from                
principal transactions   (36,178)   (1,173)   581,499   29,637
Total increase (decrease) in net assets   (13,566)   374   634,949   32,179
Net assets at December 31, 2007   142,378   10,823   784,615   39,413
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (851)   (126)   (11,329)   (689)
Total realized gain (loss) on investments                
and capital gains distributions   21,250   1,765   75,912   3,638
Net unrealized appreciation (depreciation)                
of investments   (87,278)   (7,142)   (482,952)   (22,459)
Net increase (decrease) in net assets from operations   (66,879)   (5,503)   (418,369)   (19,510)
Changes from principal transactions:                
Premiums   12   -   108,758   282
Death Benefits   (2,214)   (26)   (8,543)   (390)
Surrenders and withdrawals   (20,283)   (841)   (59,259)   (1,044)
Transfers between Divisions                
(including fixed account), net   155   (2)   771   (6)
Increase (decrease) in net assets derived from                
principal transactions   (22,330)   (869)   41,727   (1,158)
Total increase (decrease) in net assets   (89,209)   (6,372)   (376,642)   (20,668)
Net assets at December 31, 2008   $ 53,169   $ 4,451   $ 407,973   $ 18,745
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    93            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING JPMorgan   ING JPMorgan        
    Emerging   Emerging   ING JPMorgan  ING JPMorgan
    Markets Equity   Markets Equity   Small Cap Core   Small Cap Core
    Portfolio -   Portfolio -   Equity Portfolio   Equity Portfolio
    Adviser Class   Service Class   - Service Class   - Service 2 Class
Net assets at January 1, 2007   $ 35,277   $ 502,767   $ 239,483   $ 54,102
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (620)   (7,770)   (5,372)   (1,367)
Total realized gain (loss) on investments                
and capital gains distributions   2,999   48,390   24,472   4,862
Net unrealized appreciation (depreciation)                
of investments   9,866   148,973   (29,037)   (5,755)
Net increase (decrease) in net assets from operations   12,245   189,593   (9,937)   (2,260)
Changes from principal transactions:                
Premiums   1,489   125,911   40,480   857
Surrenders and withdrawals   (958)   54,416   (31,253)   (1,226)
Benefit payments   (224)   (5,565)   (2,366)   (503)
Transfers between Divisions                
(including fixed account), net   (16)   228   (20)   (11)
Increase (decrease) in net assets derived from                
principal transactions   291   174,990   6,841   (883)
Total increase (decrease) in net assets   12,536   364,583   (3,096)   (3,143)
Net assets at December 31, 2007   47,813   867,350   236,387   50,959
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (152)   835   (3,686)   (992)
Total realized gain (loss) on investments                
and capital gains distributions   5,170   97,310   11,625   4,188
Net unrealized appreciation (depreciation)                
of investments   (29,383)   (565,466)   (73,261)   (18,127)
Net increase (decrease) in net assets from operations   (24,365)   (467,321)   (65,322)   (14,931)
Changes from principal transactions:                
Premiums   424   133,882   9,101   64
Death Benefits   (372)   (6,376)   (1,567)   (164)
Surrenders and withdrawals   (2,816)   (113,007)   (52,474)   (5,944)
Transfers between Divisions                
(including fixed account), net   2   340   198   24
Increase (decrease) in net assets derived from                
principal transactions   (2,762)   14,839   (44,742)   (6,020)
Total increase (decrease) in net assets   (27,127)   (452,482)   (110,064)   (20,951)
Net assets at December 31, 2008   $ 20,686   $ 414,868   $ 126,323   $ 30,008
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    94            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING JPMorgan   ING JPMorgan        
    Value   Value   ING Julius Baer   ING Julius Baer
    Opportunities   Opportunities   Foreign   Foreign
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ 69,946   $ 1,710   $ 630,618   $ 64,469
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (398)   (23)   (16,720)   (1,749)
Total realized gain (loss) on investments                
and capital gains distributions   11,044   216   78,973   6,978
Net unrealized appreciation (depreciation)                
of investments   (11,103)   (246)   31,339   3,452
Net increase (decrease) in net assets from operations   (457)   (53)   93,592   8,681
Changes from principal transactions:                
Premiums   3,373   47   177,018   2,735
Surrenders and withdrawals   (30,858)   (31)   12,612   (1,023)
Benefit payments   (542)   -   (5,418)   (602)
Transfers between Divisions                
(including fixed account), net   8   1   (29)   (13)
Increase (decrease) in net assets derived from                
principal transactions   (28,019)   17   184,183   1,097
Total increase (decrease) in net assets   (28,476)   (36)   277,775   9,778
Net assets at December 31, 2007   41,470   1,674   908,393   74,247
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   272   -   (17,585)   (1,529)
Total realized gain (loss) on investments                
and capital gains distributions   491   78   95,942   7,609
Net unrealized appreciation (depreciation)                
of investments   (15,071)   (617)   (497,266)   (39,130)
Net increase (decrease) in net assets from operations   (14,308)   (539)   (418,909)   (33,050)
Changes from principal transactions:                
Premiums   198   -   133,540   527
Death Benefits   (991)   (11)   (6,321)   (565)
Surrenders and withdrawals   (8,243)   (434)   (118,122)   (2,203)
Transfers between Divisions                
(including fixed account), net   98   -   688   (1)
Increase (decrease) in net assets derived from                
principal transactions   (8,938)   (445)   9,785   (2,242)
Total increase (decrease) in net assets   (23,246)   (984)   (409,124)   (35,292)
Net assets at December 31, 2008   $ 18,224   $ 690   $ 499,269   $ 38,955
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    95            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

            ING LifeStyle   ING LifeStyle
    ING Legg   ING Legg   Aggressive   Aggressive
    Mason Value   Mason Value   Growth   Growth
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service 2 Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ 419,720   $ 29,989   $ 1,135,564   $ 2,529
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (8,647)   (700)   (23,764)   (59)
Total realized gain (loss) on investments                
and capital gains distributions   25,816   1,295   62,660   221
Net unrealized appreciation (depreciation)                
of investments   (47,024)   (2,876)   (34,818)   (180)
Net increase (decrease) in net assets from operations   (29,855)   (2,281)   4,078   (18)
Changes from principal transactions:                
Premiums   28,936   392   239,353   120
Surrenders and withdrawals   (62,050)   (2,412)   (42,652)   1,696
Benefit payments   (4,092)   (313)   (10,423)   -
Transfers between Divisions                
(including fixed account), net   38   39   (24)   1
Increase (decrease) in net assets derived from                
principal transactions   (37,168)   (2,294)   186,254   1,817
Total increase (decrease) in net assets   (67,023)   (4,575)   190,332   1,799
Net assets at December 31, 2007   352,697   25,414   1,325,896   4,328
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (5,239)   (439)   (9,869)   (31)
Total realized gain (loss) on investments                
and capital gains distributions   47,518   2,995   117,341   193
Net unrealized appreciation (depreciation)                
of investments   (219,795)   (15,817)   (678,526)   (2,130)
Net increase (decrease) in net assets from operations   (177,516)   (13,261)   (571,054)   (1,968)
Changes from principal transactions:                
Premiums   7,812   62   121,061   24
Death Benefits   (3,753)   (142)   (10,495)   -
Surrenders and withdrawals   (52,365)   (2,380)   (115,510)   381
Transfers between Divisions                
(including fixed account), net   177   15   754   (1)
Increase (decrease) in net assets derived from                
principal transactions   (48,129)   (2,445)   (4,190)   404
Total increase (decrease) in net assets   (225,645)   (15,706)   (575,244)   (1,564)
Net assets at December 31, 2008   $ 127,052   $ 9,708   $ 750,652   $ 2,764
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    96            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

                ING LifeStyle
    ING LifeStyle   ING LifeStyle   ING LifeStyle   Moderate
    Conservative   Growth   Growth   Growth
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service Class   Service 2 Class   Service Class
Net assets at January 1, 2007   $ -   $ 2,719,322   $ 8,291   $ 2,131,406
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   -   (47,888)   (162)   (27,263)
Total realized gain (loss) on investments                
and capital gains distributions   -   90,575   453   64,587
Net unrealized appreciation (depreciation)                
of investments   -   (22,052)   (235)   6,214
Net increase (decrease) in net assets from operations   -   20,635   56   43,538
Changes from principal transactions:                
Premiums   -   1,177,534   2,042   787,313
Surrenders and withdrawals   -   (21,042)   2,028   14,453
Benefit payments   -   (22,170)   (130)   (22,819)
Transfers between Divisions                
(including fixed account), net   -   128   (1)   64
Increase (decrease) in net assets derived from                
principal transactions   -   1,134,450   3,939   779,011
Total increase (decrease) in net assets   -   1,155,085   3,995   822,549
Net assets at December 31, 2007   -   3,874,407   12,286   2,953,955
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (571)   (28,650)   (117)   (12,154)
Total realized gain (loss) on investments                
and capital gains distributions   (189)   223,784   591   138,281
Net unrealized appreciation (depreciation)                
of investments   699   (1,870,893)   (5,865)   (1,253,846)
Net increase (decrease) in net assets from operations   (61)   (1,675,759)   (5,391)   (1,127,719)
Changes from principal transactions:                
Premiums   23,180   974,517   61   727,288
Death Benefits   (41)   (26,560)   (75)   (34,186)
Surrenders and withdrawals   104,743   (225,129)   2,684   (88,972)
Transfers between Divisions                
(including fixed account), net   13   2,516   8   2,364
Increase (decrease) in net assets derived from                
principal transactions   127,895   725,344   2,678   606,494
Total increase (decrease) in net assets   127,834   (950,415)   (2,713)   (521,225)
Net assets at December 31, 2008   $ 127,834   $ 2,923,992   $ 9,573   $ 2,432,730
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    97            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING LifeStyle            
    Moderate   ING LifeStyle   ING LifeStyle   ING Limited
    Growth   Moderate   Moderate   Maturity Bond
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service 2 Class   Service Class   Service 2 Class   Service Class
Net assets at January 1, 2007   $ 5,180   $ 903,677   $ 7,718   $ 216,291
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (122)   (8,456)   (92)   408
Total realized gain (loss) on investments                
and capital gains distributions   341   31,654   444   (2,858)
Net unrealized appreciation (depreciation)                
of investments   (212)   2,555   (178)   9,780
Net increase (decrease) in net assets from operations   7   25,753   174   7,330
Changes from principal transactions:                
Premiums   2,287   283,841   592   124
Surrenders and withdrawals   8,836   94,425   5,128   (41,957)
Benefit payments   -   (17,481)   -   (5,358)
Transfers between Divisions                
(including fixed account), net   (2)   399   (3)   36
Increase (decrease) in net assets derived from                
principal transactions   11,121   361,184   5,717   (47,155)
Total increase (decrease) in net assets   11,128   386,937   5,891   (39,825)
Net assets at December 31, 2007   16,308   1,290,614   13,609   176,466
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (86)   (5,712)   (83)   7,130
Total realized gain (loss) on investments                
and capital gains distributions   110   49,634   (336)   (1,888)
Net unrealized appreciation (depreciation)                
of investments   (5,855)   (520,340)   (4,334)   (8,045)
Net increase (decrease) in net assets from operations   (5,831)   (476,418)   (4,753)   (2,803)
Changes from principal transactions:                
Premiums   87   379,139   175   31
Death Benefits   (268)   (18,641)   (106)   (5,887)
Surrenders and withdrawals   849   225,380   2,392   (37,504)
Transfers between Divisions                
(including fixed account), net   8   1,332   (3)   92
Increase (decrease) in net assets derived from                
principal transactions   676   587,210   2,458   (43,268)
Total increase (decrease) in net assets   (5,155)   110,792   (2,295)   (46,071)
Net assets at December 31, 2008   $ 11,153   $ 1,401,406   $ 11,314   $ 130,395
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    98            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

            ING Lord   ING Lord
            Abbett   Abbett
    ING Liquid   ING Liquid   Affiliated   Affiliated
    Assets Portfolio   Assets Portfolio   Portfolio -   Portfolio -
    - Service Class   - Service 2 Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ 710,117   $ 15,430   $ 155,652   $ 3,685
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (18,376)   (604)   (657)   (29)
Total realized gain (loss) on investments                
and capital gains distributions   -   -   11,917   201
Net unrealized appreciation (depreciation)                
of investments   -   -   (7,851)   (104)
Net increase (decrease) in net assets from operations   (18,376)   (604)   3,409   68
Changes from principal transactions:                
Premiums   494,064   612   4,042   85
Surrenders and withdrawals   (116,872)   8,784   (39,694)   (379)
Benefit payments   (20,192)   (4)   (1,409)   (29)
Transfers between Divisions                
(including fixed account), net   1,277   (5)   6   (2)
Increase (decrease) in net assets derived from                
principal transactions   358,277   9,387   (37,055)   (325)
Total increase (decrease) in net assets   339,901   8,783   (33,646)   (257)
Net assets at December 31, 2007   1,050,018   24,213   122,006   3,428
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (41,481)   (1,686)   201   (6)
Total realized gain (loss) on investments                
and capital gains distributions   -   -   16,416   344
Net unrealized appreciation (depreciation)                
of investments   -   -   (57,280)   (1,577)
Net increase (decrease) in net assets from operations   (41,481)   (1,686)   (40,663)   (1,239)
Changes from principal transactions:                
Premiums   735,356   53   31   -
Death Benefits   (36,720)   (242)   (1,707)   (26)
Surrenders and withdrawals   617,174   33,949   (21,124)   (273)
Transfers between Divisions                
(including fixed account), net   7,120   1   68   2
Increase (decrease) in net assets derived from                
principal transactions   1,322,930   33,761   (22,732)   (297)
Total increase (decrease) in net assets   1,281,449   32,075   (63,395)   (1,536)
Net assets at December 31, 2008   $ 2,331,467   $ 56,288   $ 58,611   $ 1,892
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    99            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

            ING Marsico    
    ING Marsico   ING Marsico   International    
    Growth   Growth   Opportunities   ING MFS Total
    Portfolio -   Portfolio -   Portfolio -   Return Portfolio
    Service Class   Service 2 Class   Service Class   - Service Class
Net assets at January 1, 2007   $ 732,265   $ 24,784   $ 179,220   $ 1,227,770
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (14,711)   (632)   (2,718)   9,168
Total realized gain (loss) on investments                
and capital gains distributions   59,940   1,091   25,222   83,426
Net unrealized appreciation (depreciation)                
of investments   36,011   2,297   11,924   (66,389)
Net increase (decrease) in net assets from operations   81,240   2,756   34,428   26,205
Changes from principal transactions:                
Premiums   44,055   603   44,830   56,305
Surrenders and withdrawals   (84,479)   (1,496)   38,034   (173,300)
Benefit payments   (15,477)   (196)   (1,566)   (22,415)
Transfers between Divisions                
(including fixed account), net   590   (5)   10   216
Increase (decrease) in net assets derived from                
principal transactions   (55,311)   (1,094)   81,308   (139,194)
Total increase (decrease) in net assets   25,929   1,662   115,736   (112,989)
Net assets at December 31, 2007   758,194   26,446   294,956   1,114,781
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (9,204)   (460)   (3,203)   35,236
Total realized gain (loss) on investments                
and capital gains distributions   41,314   574   29,184   79,731
Net unrealized appreciation (depreciation)                
of investments   (328,018)   (10,684)   (190,583)   (364,961)
Net increase (decrease) in net assets from operations   (295,908)   (10,570)   (164,602)   (249,994)
Changes from principal transactions:                
Premiums   40,933   68   51,626   58,464
Death Benefits   (12,388)   (178)   (2,348)   (19,652)
Surrenders and withdrawals   (94,435)   (1,488)   (19,640)   (163,640)
Transfers between Divisions                
(including fixed account), net   1,040   (1)   199   780
Increase (decrease) in net assets derived from                
principal transactions   (64,850)   (1,599)   29,837   (124,048)
Total increase (decrease) in net assets   (360,758)   (12,169)   (134,765)   (374,042)
Net assets at December 31, 2008   $ 397,436   $ 14,277   $ 160,191   $ 740,739
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    100            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

        ING MFS   ING Mid Cap   ING Mid Cap
    ING MFS Total   Utilities   Growth   Growth
    Return Portfolio   Portfolio -   Portfolio -   Portfolio -
    - Service 2 Class   Service Class   Service Class   Service Class 2
Net assets at January 1, 2007   $ 52,787   $ 264,982   $ 473,531   $ 19,718
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   177   (5,724)   (8,624)   (475)
Total realized gain (loss) on investments                
and capital gains distributions   3,914   35,665   45,430   651
Net unrealized appreciation (depreciation)                
of investments   (3,319)   45,230   (37,664)   (407)
Net increase (decrease) in net assets from operations   772   75,171   (858)   (231)
Changes from principal transactions:                
Premiums   848   92,266   4,388   327
Surrenders and withdrawals   (4,733)   69,950   (92,081)   (1,774)
Benefit payments   (299)   (2,711)   (7,528)   (121)
Transfers between Divisions                
(including fixed account), net   (9)   46   109   -
Increase (decrease) in net assets derived from                
principal transactions   (4,193)   159,551   (95,112)   (1,568)
Total increase (decrease) in net assets   (3,421)   234,722   (95,970)   (1,799)
Net assets at December 31, 2007   49,366   499,704   377,561   17,919
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   1,231   4,391   (1,968)   (117)
Total realized gain (loss) on investments                
and capital gains distributions   2,822   69,437   79,571   732
Net unrealized appreciation (depreciation)                
of investments   (15,324)   (304,761)   (113,766)   (2,364)
Net increase (decrease) in net assets from operations   (11,271)   (230,933)   (36,163)   (1,749)
Changes from principal transactions:                
Premiums   102   108,682   34   -
Death Benefits   (403)   (5,263)   (2,238)   (205)
Surrenders and withdrawals   (5,094)   (24,774)   (339,431)   (15,968)
Transfers between Divisions                
(including fixed account), net   5   409   237   3
Increase (decrease) in net assets derived from                
principal transactions   (5,390)   79,054   (341,398)   (16,170)
Total increase (decrease) in net assets   (16,661)   (151,879)   (377,561)   (17,919)
Net assets at December 31, 2008   $ 32,705   $ 347,825   $ -   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    101            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Multi-   ING        
    Manager   Oppenheimer   ING   ING
    International   Active Asset   Oppenheimer   Oppenheimer
    Small Cap   Allocation   Main Street   Main Street
    Portfolio -   Portfolio -   Portfolio® -   Portfolio® -
    Class S   Service Class   Service Class   Service 2 Class
Net assets at January 1, 2007   $ -   $ -   $ 435,688   $ 5,158
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   -   -   (3,928)   (79)
Total realized gain (loss) on investments                
and capital gains distributions   -   -   35,251   267
Net unrealized appreciation (depreciation)                
of investments   -   -   (19,974)   (83)
Net increase (decrease) in net assets from operations   -   -   11,349   105
Changes from principal transactions:                
Premiums   -   -   13,517   151
Surrenders and withdrawals   -   -   (72,242)   (551)
Benefit payments   -   -   (9,061)   -
Transfers between Divisions                
(including fixed account), net   -   -   53   (2)
Increase (decrease) in net assets derived from                
principal transactions   -   -   (67,733)   (402)
Total increase (decrease) in net assets   -   -   (56,384)   (297)
Net assets at December 31, 2007   -   -   379,304   4,861
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (30)   22   1,553   (12)
Total realized gain (loss) on investments                
and capital gains distributions   (652)   -   17,421   94
Net unrealized appreciation (depreciation)                
of investments   (852)   25   (159,619)   (1,955)
Net increase (decrease) in net assets from operations   (1,534)   47   (140,645)   (1,873)
Changes from principal transactions:                
Premiums   2,385   2,909   9,761   26
Death Benefits   (3)   -   (6,932)   (41)
Surrenders and withdrawals   1,788   515   (46,260)   (340)
Transfers between Divisions                
(including fixed account), net   -   -   236   -
Increase (decrease) in net assets derived from                
principal transactions   4,170   3,424   (43,195)   (355)
Total increase (decrease) in net assets   2,636   3,471   (183,840)   (2,228)
Net assets at December 31, 2008   $ 2,636   $ 3,471   $ 195,464   $ 2,633
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    102            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING PIMCO   ING PIMCO   ING PIMCO    
    Core Bond   Core Bond   High Yield   ING Pioneer
    Portfolio -   Portfolio -   Portfolio -   Fund Portfolio -
    Service Class   Service 2 Class   Service Class   Service Class
Net assets at January 1, 2007   $ 629,159   $ 41,970   $ 649,202   $ 98,275
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   7,855   404   28,929   (1,171)
Total realized gain (loss) on investments                
and capital gains distributions   3,259   120   4,282   6,641
Net unrealized appreciation (depreciation)                
of investments   39,023   2,173   (30,644)   (2,725)
Net increase (decrease) in net assets from operations   50,137   2,697   2,567   2,745
Changes from principal transactions:                
Premiums   210,870   438   42,149   10,637
Surrenders and withdrawals   83,660   3,132   (111,114)   (20,692)
Benefit payments   (10,536)   (569)   (8,402)   (1,194)
Transfers between Divisions                
(including fixed account), net   39   (9)   105   1
Increase (decrease) in net assets derived from                
principal transactions   284,033   2,992   (77,262)   (11,248)
Total increase (decrease) in net assets   334,170   5,689   (74,695)   (8,503)
Net assets at December 31, 2007   963,329   47,659   574,507   89,772
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   16,065   248   29,128   311
Total realized gain (loss) on investments                
and capital gains distributions   26,706   971   (28,548)   3,267
Net unrealized appreciation (depreciation)                
of investments   (24,763)   (534)   (119,890)   (32,243)
Net increase (decrease) in net assets from operations   18,008   685   (119,310)   (28,665)
Changes from principal transactions:                
Premiums   544,471   530   12,172   3,746
Death Benefits   (19,557)   (548)   (8,960)   (590)
Surrenders and withdrawals   604,672   13,059   (132,629)   (18,609)
Transfers between Divisions                
(including fixed account), net   1,351   18   384   73
Increase (decrease) in net assets derived from                
principal transactions   1,130,937   13,059   (129,033)   (15,380)
Total increase (decrease) in net assets   1,148,945   13,744   (248,343)   (44,045)
Net assets at December 31, 2008   $ 2,112,274   $ 61,403   $ 326,164   $ 45,727
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    103            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

        ING T. Rowe   ING T. Rowe    
    ING Pioneer   Price Capital   Price Capital   ING T. Rowe
    Mid Cap Value   Appreciation   Appreciation   Price Equity
    Portfolio -   Portfolio -   Portfolio -   Income Portfolio
    Service Class   Service Class   Service 2 Class   - Service Class
Net assets at January 1, 2007   $ 627,662   $ 2,587,523   $ 115,607   $ 1,025,488
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (12,046)   (9,555)   (946)   (7,686)
Total realized gain (loss) on investments                
and capital gains distributions   44,941   309,725   14,745   74,008
Net unrealized appreciation (depreciation)                
of investments   (13,818)   (245,301)   (11,696)   (55,478)
Net increase (decrease) in net assets from operations   19,077   54,869   2,103   10,844
Changes from principal transactions:                
Premiums   70,735   353,350   1,689   65,288
Surrenders and withdrawals   (63,793)   (257,732)   (7,044)   (143,016)
Benefit payments   (4,768)   (31,204)   (519)   (13,286)
Transfers between Divisions                
(including fixed account), net   (28)   68   (25)   186
Increase (decrease) in net assets derived from                
principal transactions   2,146   64,482   (5,899)   (90,828)
Total increase (decrease) in net assets   21,223   119,351   (3,796)   (79,984)
Net assets at December 31, 2007   648,885   2,706,874   111,811   945,504
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (4,246)   47,843   1,006   14,583
Total realized gain (loss) on investments                
and capital gains distributions   26,099   266,409   8,218   66,730
Net unrealized appreciation (depreciation)                
of investments   (282,330)   (1,115,753)   (40,232)   (417,963)
Net increase (decrease) in net assets from operations   (260,477)   (801,501)   (31,008)   (336,650)
Changes from principal transactions:                
Premiums   38,279   347,161   535   51,317
Death Benefits   (6,276)   (35,146)   (486)   (11,855)
Surrenders and withdrawals   73,101   (257,446)   (11,331)   (95,089)
Transfers between Divisions                
(including fixed account), net   687   2,090   8   733
Increase (decrease) in net assets derived from                
principal transactions   105,791   56,659   (11,274)   (54,894)
Total increase (decrease) in net assets   (154,686)   (744,842)   (42,282)   (391,544)
Net assets at December 31, 2008   $ 494,199   $ 1,962,032   $ 69,529   $ 553,960
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    104            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING T. Rowe   ING Templeton   ING Templeton   ING UBS U.S.
    Price Equity   Global Growth   Global Growth   Allocation
    Income Portfolio   Portfolio -   Portfolio -   Portfolio -
    - Service 2 Class   Service Class   Service 2 Class   Service Class
Net assets at January 1, 2007   $ 36,444   $ 466,167   $ 8,479   $ 103,723
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (418)   (4,928)   (138)   (105)
Total realized gain (loss) on investments                
and capital gains distributions   2,495   27,223   488   12,041
Net unrealized appreciation (depreciation)                
of investments   (1,826)   (20,872)   (368)   (11,739)
Net increase (decrease) in net assets from operations   251   1,423   (18)   197
Changes from principal transactions:                
Premiums   595   54,677   383   36
Surrenders and withdrawals   (2,327)   (68,290)   (666)   (18,225)
Benefit payments   (246)   (6,221)   (6)   (1,241)
Transfers between Divisions                
(including fixed account), net   (3)   316   (3)   (11)
Increase (decrease) in net assets derived from                
principal transactions   (1,981)   (19,518)   (292)   (19,441)
Total increase (decrease) in net assets   (1,730)   (18,095)   (310)   (19,244)
Net assets at December 31, 2007   34,714   448,072   8,169   84,479
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   354   (3,928)   (108)   1,692
Total realized gain (loss) on investments                
and capital gains distributions   2,322   23,014   373   2,320
Net unrealized appreciation (depreciation)                
of investments   (15,168)   (192,003)   (3,147)   (8,827)
Net increase (decrease) in net assets from operations   (12,492)   (172,917)   (2,882)   (4,815)
Changes from principal transactions:                
Premiums   154   24,014   76   15
Death Benefits   (113)   (5,219)   (21)   (248)
Surrenders and withdrawals   (2,123)   (59,735)   (1,604)   (79,442)
Transfers between Divisions                
(including fixed account), net   20   225   -   11
Increase (decrease) in net assets derived from                
principal transactions   (2,062)   (40,715)   (1,549)   (79,664)
Total increase (decrease) in net assets   (14,554)   (213,632)   (4,431)   (84,479)
Net assets at December 31, 2008   $ 20,160   $ 234,440   $ 3,738   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    105            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

        ING Van   ING Van   ING Van
    ING UBS U.S.   Kampen Capital   Kampen Capital   Kampen Global
    Allocation   Growth   Growth   Franchise
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service 2 Class   Service Class   Service 2 Class   Service Class
Net assets at January 1, 2007   $ 5,333   $ 56,357   $ 13,405   $ 308,178
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (32)   (1,295)   (345)   (7,821)
Total realized gain (loss) on investments                
and capital gains distributions   553   6,110   1,126   32,575
Net unrealized appreciation (depreciation)                
of investments   (539)   4,882   1,534   (2,719)
Net increase (decrease) in net assets from operations   (18)   9,697   2,315   22,035
Changes from principal transactions:                
Premiums   (2)   1,552   121   57,919
Surrenders and withdrawals   (738)   (12,667)   (1,384)   (45,318)
Benefit payments   -   (698)   -   (3,178)
Transfers between Divisions                
(including fixed account), net   (1)   (8)   (2)   (5)
Increase (decrease) in net assets derived from                
principal transactions   (741)   (11,821)   (1,265)   9,418
Total increase (decrease) in net assets   (759)   (2,124)   1,050   31,453
Net assets at December 31, 2007   4,574   54,233   14,455   339,631
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   87   (3,132)   (101)   (1,327)
Total realized gain (loss) on investments                
and capital gains distributions   (114)   2,535   2,823   27,416
Net unrealized appreciation (depreciation)                
of investments   (244)   (105,018)   (3,582)   (126,436)
Net increase (decrease) in net assets from operations   (271)   (105,615)   (860)   (100,347)
Changes from principal transactions:                
Premiums   -   6,646   14   30,043
Death Benefits   (7)   (1,161)   (12)   (1,843)
Surrenders and withdrawals   (4,296)   156,622   (13,585)   (52,106)
Transfers between Divisions                
(including fixed account), net   -   112   -   269
Increase (decrease) in net assets derived from                
principal transactions   (4,303)   162,219   (13,583)   (23,637)
Total increase (decrease) in net assets   (4,574)   56,604   (14,443)   (123,984)
Net assets at December 31, 2008   $ -   $ 110,837   $ 12   $ 215,647
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    106            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

        ING Van        
    ING Van   Kampen Global   ING Van   ING Van
    Kampen Global   Tactical Asset   Kampen   Kampen
    Franchise   Allocation   Growth and   Growth and
    Portfolio -   Portfolio -   Income Portfolio   Income Portfolio
    Service 2 Class   Service Class   - Service Class   - Service 2 Class
Net assets at January 1, 2007   $ 84,046   $ -   $ 851,385   $ 80,594
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (2,153)   -   (3,783)   (881)
Total realized gain (loss) on investments                
and capital gains distributions   5,461   -   72,861   7,511
Net unrealized appreciation (depreciation)                
of investments   2,458   -   (61,555)   (6,569)
Net increase (decrease) in net assets from operations   5,766   -   7,523   61
Changes from principal transactions:                
Premiums   1,827   -   35,284   1,121
Surrenders and withdrawals   (4,385)   -   (139,852)   (4,320)
Benefit payments   (438)   -   (15,177)   (385)
Transfers between Divisions                
(including fixed account), net   (22)   -   42   24
Increase (decrease) in net assets derived from                
principal transactions   (3,018)   -   (119,703)   (3,560)
Total increase (decrease) in net assets   2,748   -   (112,180)   (3,499)
Net assets at December 31, 2007   86,794   -   739,205   77,095
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (608)   (6)   10,132   533
Total realized gain (loss) on investments                
and capital gains distributions   7,589   (39)   35,543   5,421
Net unrealized appreciation (depreciation)                
of investments   (32,223)   101   (274,166)   (30,500)
Net increase (decrease) in net assets from operations   (25,242)   56   (228,491)   (24,546)
Changes from principal transactions:                
Premiums   237   1,582   30,636   496
Death Benefits   (643)   -   (14,705)   (415)
Surrenders and withdrawals   (7,921)   1,087   (98,282)   (7,970)
Transfers between Divisions                
(including fixed account), net   56   -   593   2
Increase (decrease) in net assets derived from                
principal transactions   (8,271)   2,669   (81,758)   (7,887)
Total increase (decrease) in net assets   (33,513)   2,725   (310,249)   (32,433)
Net assets at December 31, 2008   $ 53,281   $ 2,725   $ 428,956   $ 44,662
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    107            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Van           ING VP Index
    Kampen Large   ING Van   ING Van   Plus
    Cap Growth   Kampen Real   Kampen Real   International
    Portfolio -   Estate Portfolio   Estate Portfolio   Equity Portfolio
    Service Class   - Service Class   - Service 2 Class   - Service Class
Net assets at January 1, 2007   $ 185,025   $ 970,402   $ 40,981   $ 32,572
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (3,855)   (9,042)   (558)   (963)
Total realized gain (loss) on investments                
and capital gains distributions   1,259   250,976   6,608   4,798
Net unrealized appreciation (depreciation)                
of investments   4,782   (393,403)   (13,709)   (280)
Net increase (decrease) in net assets from operations   2,186   (151,469)   (7,659)   3,555
Changes from principal transactions:                
Premiums   4,533   85,266   823   9,158
Surrenders and withdrawals   (29,905)   (317,355)   (3,388)   (4,106)
Benefit payments   (1,229)   (8,036)   (178)   (178)
Transfers between Divisions                
(including fixed account), net   33   26   (10)   28
Increase (decrease) in net assets derived from                
principal transactions   (26,568)   (240,099)   (2,753)   4,902
Total increase (decrease) in net assets   (24,382)   (391,568)   (10,412)   8,457
Net assets at December 31, 2007   160,643   578,834   30,569   41,029
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (631)   (5,413)   (411)   1,178
Total realized gain (loss) on investments                
and capital gains distributions   (3,066)   82,687   4,652   4,668
Net unrealized appreciation (depreciation)                
of investments   (5,108)   (269,772)   (15,142)   (21,719)
Net increase (decrease) in net assets from operations   (8,805)   (192,498)   (10,901)   (15,873)
Changes from principal transactions:                
Premiums   1,745   10,443   219   1,354
Death Benefits   (770)   (5,616)   (134)   (272)
Surrenders and withdrawals   (152,818)   (120,639)   (3,901)   (9,007)
Transfers between Divisions                
(including fixed account), net   5   314   4   18
Increase (decrease) in net assets derived from                
principal transactions   (151,838)   (115,498)   (3,812)   (7,907)
Total increase (decrease) in net assets   (160,643)   (307,996)   (14,713)   (23,780)
Net assets at December 31, 2008   $ -   $ 270,838   $ 15,856   $ 17,249
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    108            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING VP Index   ING Wells   ING Wells   ING Wells
    Plus   Fargo   Fargo   Fargo Small
    International   Disciplined   Disciplined   Cap Disciplined
    Equity Portfolio   Value Portfolio -   Value Portfolio -   Portfolio -
    - Service 2 Class   Service Class   Service 2 Class   Service Class
Net assets at January 1, 2007   $ 688   $ 275,268   $ 4,737   $ 24,614
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (23)   (2,158)   (73)   (478)
Total realized gain (loss) on investments                
and capital gains distributions   72   28,889   201   1,287
Net unrealized appreciation (depreciation)                
of investments   (5)   (37,758)   (402)   (1,634)
Net increase (decrease) in net assets from operations   44   (11,027)   (274)   (825)
Changes from principal transactions:                
Premiums   40   2,680   52   3,124
Surrenders and withdrawals   87   (52,671)   (362)   (12,520)
Benefit payments   (59)   (6,380)   (21)   (94)
Transfers between Divisions                
(including fixed account), net   -   56   -   11
Increase (decrease) in net assets derived from                
principal transactions   68   (56,315)   (331)   (9,479)
Total increase (decrease) in net assets   112   (67,342)   (605)   (10,304)
Net assets at December 31, 2007   800   207,926   4,132   14,310
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   14   2,113   18   (157)
Total realized gain (loss) on investments                
and capital gains distributions   93   46,675   200   345
Net unrealized appreciation (depreciation)                
of investments   (384)   (67,364)   (623)   (4,172)
Net increase (decrease) in net assets from operations   (277)   (18,576)   (405)   (3,984)
Changes from principal transactions:                
Premiums   -   (29)   -   5
Death Benefits   (6)   (3,396)   (11)   (103)
Surrenders and withdrawals   (234)   (186,038)   (3,716)   (3,636)
Transfers between Divisions                
(including fixed account), net   1   113   -   2
Increase (decrease) in net assets derived from                
principal transactions   (239)   (189,350)   (3,727)   (3,732)
Total increase (decrease) in net assets   (516)   (207,926)   (4,132)   (7,716)
Net assets at December 31, 2008   $ 284   $ -   $ -   $ 6,594
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    109            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Wells       ING American   ING American
    Fargo Small       Century Large   Century Small-
    Cap Disciplined   ING Diversified   Company Value   Mid Cap Value
    Portfolio -   International   Portfolio -   Portfolio -
    Service 2 Class   Fund - Class R   Service Class   Service Class
Net assets at January 1, 2007   $ 1,313   $ 76   $ 775   $ 611
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (18)   1   3   (3)
Total realized gain (loss) on investments                
and capital gains distributions   53   16   84   100
Net unrealized appreciation (depreciation)                
of investments   (86)   20   (100)   (116)
Net increase (decrease) in net assets from operations   (51)   37   (13)   (19)
Changes from principal transactions:                
Premiums   4   388   57   170
Surrenders and withdrawals   (624)   (104)   (291)   (243)
Benefit payments   -   -   -   -
Transfers between Divisions                
(including fixed account), net   (1)   1   (1)   -
Increase (decrease) in net assets derived from                
principal transactions   (621)   285   (235)   (73)
Total increase (decrease) in net assets   (672)   322   (248)   (92)
Net assets at December 31, 2007   641   398   527   519
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (9)   17   61   (2)
Total realized gain (loss) on investments                
and capital gains distributions   52   (4)   134   36
Net unrealized appreciation (depreciation)                
of investments   (249)   (181)   (417)   (181)
Net increase (decrease) in net assets from operations   (206)   (168)   (222)   (147)
Changes from principal transactions:                
Premiums   -   -   141   99
Death Benefits   -   (12)   -   -
Surrenders and withdrawals   (66)   (37)   (61)   (67)
Transfers between Divisions                
(including fixed account), net   -   1   -   -
Increase (decrease) in net assets derived from                
principal transactions   (66)   (48)   80   32
Total increase (decrease) in net assets   (272)   (216)   (142)   (115)
Net assets at December 31, 2008   $ 369   $ 182   $ 385   $ 404
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    110            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Baron   ING Columbia        
    Small Cap   Small Cap   ING Davis New   ING JPMorgan
    Growth   Value II   York Venture   International
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service Class   Service Class   Service Class
Net assets at January 1, 2007   $ 147,898   $ 71,511   $ 92,112   $ 151,961
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (4,214)   (2,396)   (2,583)   (830)
Total realized gain (loss) on investments                
and capital gains distributions   6,003   2,279   1,339   14,517
Net unrealized appreciation (depreciation)                
of investments   2,621   (2,362)   1,618   (2,554)
Net increase (decrease) in net assets from operations   4,410   (2,479)   374   11,133
Changes from principal transactions:                
Premiums   62,220   54,681   72,963   27,041
Surrenders and withdrawals   27,029   20,848   18,182   (9,472)
Benefit payments   (913)   (496)   (767)   (1,271)
Transfers between Divisions                
(including fixed account), net   (14)   33   8   (16)
Increase (decrease) in net assets derived from                
principal transactions   88,322   75,066   90,386   16,282
Total increase (decrease) in net assets   92,732   72,587   90,760   27,415
Net assets at December 31, 2007   240,630   144,098   182,872   179,376
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (4,990)   (3,448)   (3,123)   3,403
Total realized gain (loss) on investments                
and capital gains distributions   5,685   (5,329)   215   13,421
Net unrealized appreciation (depreciation)                
of investments   (119,270)   (61,222)   (101,313)   (23,980)
Net increase (decrease) in net assets from operations   (118,575)   (69,999)   (104,221)   (7,156)
Changes from principal transactions:                
Premiums   55,059   43,380   73,729   7,756
Death Benefits   (2,009)   (1,068)   (1,552)   (475)
Surrenders and withdrawals   2,034   19,602   34,895   (179,497)
Transfers between Divisions                
(including fixed account), net   149   77   177   (4)
Increase (decrease) in net assets derived from                
principal transactions   55,233   61,991   107,249   (172,220)
Total increase (decrease) in net assets   (63,342)   (8,008)   3,028   (179,376)
Net assets at December 31, 2008   $ 177,288   $ 136,090   $ 185,900   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    111            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

        ING Legg        
        Mason Partners   ING Neuberger   ING Neuberger
    ING JPMorgan   Aggressive   Berman   Berman
    Mid Cap Value   Growth   Partners   Regency
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service Class   Service Class   Service Class
Net assets at January 1, 2007   $ 25,829   $ 166,845   $ 174,800   $ 3,112
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (292)   (3,875)   (2,783)   (111)
Total realized gain (loss) on investments                
and capital gains distributions   2,445   6,867   8,632   582
Net unrealized appreciation (depreciation)                
of investments   (1,909)   (9,689)   4,985   (905)
Net increase (decrease) in net assets from operations   244   (6,697)   10,834   (434)
Changes from principal transactions:                
Premiums   2,603   12,492   777   5,334
Surrenders and withdrawals   (5,089)   (18,991)   (32,997)   4,922
Benefit payments   (419)   (1,454)   (4,557)   (54)
Transfers between Divisions                
(including fixed account), net   (3)   4   26   2
Increase (decrease) in net assets derived from                
principal transactions   (2,908)   (7,949)   (36,751)   10,204
Total increase (decrease) in net assets   (2,664)   (14,646)   (25,917)   9,770
Net assets at December 31, 2007   23,165   152,199   148,883   12,882
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   333   (3,049)   (2,160)   (97)
Total realized gain (loss) on investments                
and capital gains distributions   (450)   2,193   (5,162)   (681)
Net unrealized appreciation (depreciation)                
of investments   (12,251)   (56,620)   (61,029)   737
Net increase (decrease) in net assets from operations   (12,368)   (57,476)   (68,351)   (41)
Changes from principal transactions:                
Premiums   10,993   4,090   25   1,853
Death Benefits   (411)   (1,289)   (3,114)   (17)
Surrenders and withdrawals   14,247   (18,260)   (19,246)   (14,680)
Transfers between Divisions                
(including fixed account), net   38   95   130   3
Increase (decrease) in net assets derived from                
principal transactions   24,867   (15,364)   (22,205)   (12,841)
Total increase (decrease) in net assets   12,499   (72,840)   (90,556)   (12,882)
Net assets at December 31, 2008   $ 35,664   $ 79,359   $ 58,327   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    112            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

              ING
    ING OpCap   ING   ING   Oppenheimer
    Balanced Value   Oppenheimer   Oppenheimer   Strategic
    Portfolio -   Global Portfolio   Global Portfolio   Income Portfolio
    Service Class   - Initial Class   - Service Class   - Service Class
Net assets at January 1, 2007   $ 731   $ 16,934   $ 108,798   $ 4,165
 
Increase (decrease) in net assets                    
Operations:                    
Net investment income (loss)       2   (47)   (1,436)   249
Total realized gain (loss) on investments                    
and capital gains distributions       105   1,747   8,180   37
Net unrealized appreciation (depreciation)                    
of investments       (135)   (842)   (2,887)   208
Net increase (decrease) in net assets from operations       (28)   858   3,857   494
Changes from principal transactions:                    
Premiums       194   3   43,187   3,358
Surrenders and withdrawals       (273)   (3,488)   5,573   2,046
Benefit payments       -   -   (1,381)   (17)
Transfers between Divisions                    
(including fixed account), net       -   -   2   (1)
Increase (decrease) in net assets derived from                    
principal transactions       (79)   (3,485)   47,381   5,386
Total increase (decrease) in net assets       (107)   (2,627)   51,238   5,880
Net assets at December 31, 2007       624   14,307   160,036   10,045
 
Increase (decrease) in net assets                    
Operations:                    
Net investment income (loss)       22   92   76   495
Total realized gain (loss) on investments                    
and capital gains distributions       (295)   1,069   9,406   33
Net unrealized appreciation (depreciation)                    
of investments       55   (6,344)   (83,530)   (2,559)
Net increase (decrease) in net assets from operations       (218)   (5,183)   (74,048)   (2,031)
Changes from principal transactions:                    
Premiums       36   (3)   30,768   2,496
Death Benefits       (17)   (118)   (1,334)   (26)
Surrenders and withdrawals       (427)   (2,395)   (10,145)   (1,598)
Transfers between Divisions                    
(including fixed account), net       2   3   56   -
Increase (decrease) in net assets derived from                    
principal transactions       (406)   (2,513)   19,345   872
Total increase (decrease) in net assets       (624)   (7,696)   (54,703)   (1,159)
Net assets at December 31, 2008   $ -   $ 6,611   $ 105,333   $ 8,886
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    113                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING PIMCO            
    Total Return   ING Solution   ING Solution   ING Solution
    Portfolio -   2015 Portfolio -   2025 Portfolio -   2035 Portfolio -
    Service Class   Service Class   Service Class   Service Class
Net assets at January 1, 2007   $ 2,982   $ 3,262   $ 2,527   $ 1,583
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   90   (47)   (41)   (39)
Total realized gain (loss) on investments                
and capital gains distributions   20   110   94   243
Net unrealized appreciation (depreciation)                
of investments   207   27   32   (86)
Net increase (decrease) in net assets from operations   317   90   85   118
Changes from principal transactions:                
Premiums   1,184   6,126   4,078   7,364
Surrenders and withdrawals   262   (188)   (182)   (1,312)
Benefit payments   (1)   -   -   -
Transfers between Divisions                
(including fixed account), net   -   -   -   -
Increase (decrease) in net assets derived from                
principal transactions   1,445   5,938   3,896   6,052
Total increase (decrease) in net assets   1,762   6,028   3,981   6,170
Net assets at December 31, 2007   4,744   9,290   6,508   7,753
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   295   26   (5)   (19)
Total realized gain (loss) on investments                
and capital gains distributions   123   270   231   229
Net unrealized appreciation (depreciation)                
of investments   (581)   (4,044)   (3,820)   (4,646)
Net increase (decrease) in net assets from operations   (163)   (3,748)   (3,594)   (4,436)
Changes from principal transactions:                
Premiums   3,764   7,661   6,839   4,482
Death Benefits   (49)   (12)   -   -
Surrenders and withdrawals   293   (1,942)   (615)   155
Transfers between Divisions                
(including fixed account), net   -   -   -   -
Increase (decrease) in net assets derived from                
principal transactions   4,008   5,707   6,224   4,637
Total increase (decrease) in net assets   3,845   1,959   2,630   201
Net assets at December 31, 2008   $ 8,589   $ 11,249   $ 9,138   $ 7,954
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    114            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

            ING T. Rowe    
            Price Diversified    
            Mid Cap   ING T. Rowe
    ING Solution   ING Solution   Growth   Price Growth
    2045 Portfolio -   Income Portfolio   Portfolio -   Equity Portfolio
    Service Class   - Service Class   Service Class   - Service Class
Net assets at January 1, 2007   $ 312   $ 566   $ 2,030   $ 4,288
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (6)   (8)   (27)   (237)
Total realized gain (loss) on investments                
and capital gains distributions   40   13   322   1,461
Net unrealized appreciation (depreciation)                
of investments   (11)   76   (52)   (982)
Net increase (decrease) in net assets from operations   23   81   243   242
Changes from principal transactions:                
Premiums   682   3,530   1,353   12,298
Surrenders and withdrawals   118   481   (399)   18,993
Benefit payments   -   -   (11)   -
Transfers between Divisions                
(including fixed account), net   -   (1)   (1)   2
Increase (decrease) in net assets derived from                
principal transactions   800   4,010   942   31,293
Total increase (decrease) in net assets   823   4,091   1,185   31,535
Net assets at December 31, 2007   1,135   4,657   3,215   35,823
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (4)   34   (42)   (352)
Total realized gain (loss) on investments                
and capital gains distributions   29   (11)   570   (247)
Net unrealized appreciation (depreciation)                
of investments   (729)   (1,126)   (2,542)   (18,202)
Net increase (decrease) in net assets from operations   (704)   (1,103)   (2,014)   (18,801)
Changes from principal transactions:                
Premiums   848   3,126   1,941   12,533
Death Benefits   -   (19)   (6)   (60)
Surrenders and withdrawals   (54)   (1,192)   (46)   927
Transfers between Divisions                
(including fixed account), net   -   -   -   3
Increase (decrease) in net assets derived from                
principal transactions   794   1,915   1,889   13,403
Total increase (decrease) in net assets   90   812   (125)   (5,398)
Net assets at December 31, 2008   $ 1,225   $ 5,469   $ 3,090   $ 30,425
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    115            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Templeton           ING UBS U.S.
    Foreign Equity   ING Thornburg   ING Thornburg   Large Cap
    Portfolio -   Value Portfolio -   Value Portfolio -   Equity Portfolio
    Service Class   Initial Class   Service Class   - Service Class
Net assets at January 1, 2007   $ 25,226   $ 3,324   $ 6,794   $ 22,611
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (626)   (38)   (275)   (293)
Total realized gain (loss) on investments                
and capital gains distributions   5,650   304   1,028   1,645
Net unrealized appreciation (depreciation)                
of investments   160   (91)   214   (1,277)
Net increase (decrease) in net assets from operations   5,184   175   967   75
Changes from principal transactions:                
Premiums   40,646   7   3,704   1,885
Surrenders and withdrawals   39,975   (861)   2,060   (10,390)
Benefit payments   (477)   (11)   (63)   (77)
Transfers between Divisions                
(including fixed account), net   25   (1)   (2)   -
Increase (decrease) in net assets derived from                
principal transactions   80,169   (866)   5,699   (8,582)
Total increase (decrease) in net assets   85,353   (691)   6,666   (8,507)
Net assets at December 31, 2007   110,579   2,633   13,460   14,104
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (10)   (24)   (171)   (59)
Total realized gain (loss) on investments                
and capital gains distributions   (11,417)   53   (649)   (386)
Net unrealized appreciation (depreciation)                
of investments   (99,767)   (982)   (3,397)   (4,402)
Net increase (decrease) in net assets from operations   (111,194)   (953)   (4,217)   (4,847)
Changes from principal transactions:                
Premiums   31,221   1   298   300
Death Benefits   (1,752)   (27)   (24)   (67)
Surrenders and withdrawals   130,775   (461)   (4,571)   (3,347)
Transfers between Divisions                
(including fixed account), net   97   -   2   2
Increase (decrease) in net assets derived from                
principal transactions   160,341   (487)   (4,295)   (3,112)
Total increase (decrease) in net assets   49,147   (1,440)   (8,512)   (7,959)
Net assets at December 31, 2008   $ 159,726   $ 1,193   $ 4,948   $ 6,145
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    116            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING UBS U.S.   ING Van   ING Van   ING Van
    Small Cap   Kampen   Kampen Equity   Kampen Equity
    Growth   Comstock   and Income   and Income
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Service Class   Service Class   Initial Class   Service Class
Net assets at January 1, 2007   $ 5,004   $ 219,324   $ 3,913   $ 61,397
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (104)   (2,449)   (211)   413
Total realized gain (loss) on investments                
and capital gains distributions   364   11,466   174   2,687
Net unrealized appreciation (depreciation)                
of investments   (103)   (19,509)   (133)   (2,862)
Net increase (decrease) in net assets from operations   157   (10,492)   (170)   238
Changes from principal transactions:                
Premiums   777   25,028   (22,891)   56,424
Surrenders and withdrawals   (3,351)   (9,958)   23,083   (15,742)
Benefit payments   (33)   (1,918)   (402)   (205)
Transfers between Divisions                
(including fixed account), net   2   -   9   1
Increase (decrease) in net assets derived from                
principal transactions   (2,605)   13,152   (201)   40,478
Total increase (decrease) in net assets   (2,448)   2,660   (371)   40,716
Net assets at December 31, 2007   2,556   221,984   3,542   102,113
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (29)   2,845   (776)   7,219
Total realized gain (loss) on investments                
and capital gains distributions   (384)   9,531   148   6,689
Net unrealized appreciation (depreciation)                
of investments   182   (93,914)   (1,005)   (61,660)
Net increase (decrease) in net assets from operations   (231)   (81,538)   (1,633)   (47,752)
Changes from principal transactions:                
Premiums   1   15,327   (80,169)   115,558
Death Benefits   (6)   (2,007)   (2,070)   -
Surrenders and withdrawals   (2,320)   (18,736)   82,272   7
Transfers between Divisions                
(including fixed account), net   -   174   134   -
Increase (decrease) in net assets derived from                
principal transactions   (2,325)   (5,242)   167   115,565
Total increase (decrease) in net assets   (2,556)   (86,780)   (1,466)   67,813
Net assets at December 31, 2008   $ -   $ 135,204   $ 2,076   $ 169,926
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    117            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING VP   ING VP   ING VP    
    Strategic   Strategic   Strategic    
    Allocation   Allocation   Allocation   ING VP Growth
    Conservative   Growth   Moderate   and Income
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Class S   Class S   Class S   Class I
Net assets at January 1, 2007   $ 717   $ 308   $ 693   $ -
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   2   2   7   2
Total realized gain (loss) on investments                
and capital gains distributions   24   22   35   -
Net unrealized appreciation (depreciation)                
of investments   4   (17)   (12)   -
Net increase (decrease) in net assets from operations   30   7   30   2
Changes from principal transactions:                
Premiums   2,270   139   161   -
Surrenders and withdrawals   (1,569)   -   (23)   148
Benefit payments   (3)   -   -   -
Transfers between Divisions                
(including fixed account), net   -   1   1   -
Increase (decrease) in net assets derived from                
principal transactions   698   140   139   148
Total increase (decrease) in net assets   728   147   169   150
Net assets at December 31, 2007   1,445   455   862   150
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   31   8   14   -
Total realized gain (loss) on investments                
and capital gains distributions   84   72   52   (1)
Net unrealized appreciation (depreciation)                
of investments   (514)   (358)   (343)   (56)
Net increase (decrease) in net assets from operations   (399)   (278)   (277)   (57)
Changes from principal transactions:                
Premiums   9,225   335   161   1
Death Benefits   (24)   -   -   -
Surrenders and withdrawals   (9,077)   -   (173)   (4)
Transfers between Divisions                
(including fixed account), net   -   -   -   -
Increase (decrease) in net assets derived from                
principal transactions   124   335   (12)   (3)
Total increase (decrease) in net assets   (275)   57   (289)   (60)
Net assets at December 31, 2008   $ 1,170   $ 512   $ 573   $ 90
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    118            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING VP Growth            
    and Income   ING GET U.S.   ING GET U.S.   ING GET U.S.
    Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -
    Class S   Series 1   Series 2   Series 3
Net assets at January 1, 2007   $ 4,758   $ 91,376   $ 64,559   $ 68,420
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   42   251   416   187
Total realized gain (loss) on investments                
and capital gains distributions   213   2,435   1,005   984
Net unrealized appreciation (depreciation)                
of investments   43   (1,124)   (14)   401
Net increase (decrease) in net assets from operations   298   1,562   1,407   1,572
Changes from principal transactions:                
Premiums   2,396   (106)   (34)   93
Surrenders and withdrawals   (30)   (18,269)   (13,858)   (20,242)
Benefit payments   -   (1,109)   (541)   (462)
Transfers between Divisions                
(including fixed account), net   (2)   (2)   (3)   (1)
Increase (decrease) in net assets derived from                
principal transactions   2,364   (19,486)   (14,436)   (20,612)
Total increase (decrease) in net assets   2,662   (17,924)   (13,029)   (19,040)
Net assets at December 31, 2007   7,420   73,452   51,530   49,380
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   2,729   1,443   1,198   (14)
Total realized gain (loss) on investments                
and capital gains distributions   (10,390)   (2,654)   (2,843)   2,163
Net unrealized appreciation (depreciation)                
of investments   (112,193)   (2,509)   (1,790)   (4,695)
Net increase (decrease) in net assets from operations   (119,854)   (3,720)   (3,435)   (2,546)
Changes from principal transactions:                
Premiums   7,206   (191)   (89)   (38)
Death Benefits   (2,091)   (1,041)   (780)   (792)
Surrenders and withdrawals   381,576   (68,577)   (47,391)   (7,220)
Transfers between Divisions                
(including fixed account), net   449   77   165   -
Increase (decrease) in net assets derived from                
principal transactions   387,140   (69,732)   (48,095)   (8,050)
Total increase (decrease) in net assets   267,286   (73,452)   (51,530)   (10,596)
Net assets at December 31, 2008   $ 274,706   $ -   $ -   $ 38,784
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    119            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.
    Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -
    Series 4   Series 5   Series 6   Series 7
Net assets at January 1, 2007   $ 49,961   $ 28,664   $ 30,412   $ 22,891
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   304   (140)   47   52
Total realized gain (loss) on investments                
and capital gains distributions   2,119   1,708   2,009   1,349
Net unrealized appreciation (depreciation)                
of investments   (1,606)   (1,500)   (1,723)   (1,071)
Net increase (decrease) in net assets from operations   817   68   333   330
Changes from principal transactions:                
Premiums   (30)   (20)   (34)   (22)
Surrenders and withdrawals   (13,747)   (5,081)   (5,650)   (6,709)
Benefit payments   (1,141)   (322)   (113)   (279)
Transfers between Divisions                
(including fixed account), net   -   1   (1)   (1)
Increase (decrease) in net assets derived from                
principal transactions   (14,918)   (5,422)   (5,798)   (7,011)
Total increase (decrease) in net assets   (14,101)   (5,354)   (5,465)   (6,681)
Net assets at December 31, 2007   35,860   23,310   24,947   16,210
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   195   (161)   (77)   (41)
Total realized gain (loss) on investments                
and capital gains distributions   3,527   2,906   2,948   2,309
Net unrealized appreciation (depreciation)                
of investments   (6,328)   (4,867)   (4,865)   (3,389)
Net increase (decrease) in net assets from operations   (2,606)   (2,122)   (1,994)   (1,121)
Changes from principal transactions:                
Premiums   (38)   (49)   (43)   (30)
Death Benefits   (453)   (134)   (186)   (267)
Surrenders and withdrawals   (5,783)   (4,074)   (4,016)   (2,844)
Transfers between Divisions                
(including fixed account), net   -   -   -   -
Increase (decrease) in net assets derived from                
principal transactions   (6,274)   (4,257)   (4,245)   (3,141)
Total increase (decrease) in net assets   (8,880)   (6,379)   (6,239)   (4,262)
Net assets at December 31, 2008   $ 26,980   $ 16,931   $ 18,708   $ 11,948
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    120            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING GET U.S.   ING GET U.S.   ING GET U.S.   ING GET U.S.
    Core Portfolio -   Core Portfolio -   Core Portfolio -   Core Portfolio -
    Series 8   Series 9   Series 10   Series 11
Net assets at January 1, 2007   $ 10,909   $ 10,101   $ 8,614   $ 11,153
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   16   31   (37)   94
Total realized gain (loss) on investments                
and capital gains distributions   577   490   399   367
Net unrealized appreciation (depreciation)                
of investments   (422)   (329)   (241)   (446)
Net increase (decrease) in net assets from operations   171   192   121   15
Changes from principal transactions:                
Premiums   (3)   (27)   (4)   (11)
Surrenders and withdrawals   (1,097)   (2,701)   (2,638)   (2,201)
Benefit payments   (27)   (44)   -   (130)
Transfers between Divisions                
(including fixed account), net   2   -   2   1
Increase (decrease) in net assets derived from                
principal transactions   (1,125)   (2,772)   (2,640)   (2,341)
Total increase (decrease) in net assets   (954)   (2,580)   (2,519)   (2,326)
Net assets at December 31, 2007   9,955   7,521   6,095   8,827
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (24)   7   12   18
Total realized gain (loss) on investments                
and capital gains distributions   1,402   1,227   936   1,331
Net unrealized appreciation (depreciation)                
of investments   (2,176)   (1,766)   (1,310)   (1,525)
Net increase (decrease) in net assets from operations   (798)   (532)   (362)   (176)
Changes from principal transactions:                
Premiums   (19)   (2)   (8)   (2)
Death Benefits   (326)   (25)   -   (109)
Surrenders and withdrawals   (1,413)   (882)   (600)   (832)
Transfers between Divisions                
(including fixed account), net   -   -   -   -
Increase (decrease) in net assets derived from                
principal transactions   (1,758)   (909)   (608)   (943)
Total increase (decrease) in net assets   (2,556)   (1,441)   (970)   (1,119)
Net assets at December 31, 2008   $ 7,399   $ 6,080   $ 5,125   $ 7,708
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    121            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING GET U.S.   ING GET U.S.   ING GET U.S.   ING VP Global
    Core Portfolio -   Core Portfolio -   Core Portfolio -   Equity Dividend
    Series 12   Series 13   Series 14   Portfolio
Net assets at January 1, 2007   $ 4,768   $ 53,117   $ -   $ 61,740
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (47)   (700)   (1,429)   1,276
Total realized gain (loss) on investments                
and capital gains distributions   225   558   296   9,954
Net unrealized appreciation (depreciation)                
of investments   (135)   1,491   1,936   (10,566)
Net increase (decrease) in net assets from operations   43   1,349   803   664
Changes from principal transactions:                
Premiums   (9)   (64)   (122)   43
Surrenders and withdrawals   (788)   (17,983)   88,509   (11,391)
Benefit payments   -   (226)   (711)   (428)
Transfers between Divisions                
(including fixed account), net   -   -   7   (5)
Increase (decrease) in net assets derived from                
principal transactions   (797)   (18,273)   87,683   (11,781)
Total increase (decrease) in net assets   (754)   (16,924)   88,486   (11,117)
Net assets at December 31, 2007   4,014   36,193   88,486   50,623
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (25)   (36)   (257)   283
Total realized gain (loss) on investments                
and capital gains distributions   649   1,413   538   4,016
Net unrealized appreciation (depreciation)                
of investments   (958)   (1,623)   41   (6,705)
Net increase (decrease) in net assets from operations   (334)   (246)   322   (2,406)
Changes from principal transactions:                
Premiums   (8)   (39)   (157)   2
Death Benefits   (3)   (112)   (991)   (39)
Surrenders and withdrawals   (888)   (12,711)   (11,432)   (48,183)
Transfers between Divisions                
(including fixed account), net   -   -   (1)   3
Increase (decrease) in net assets derived from                
principal transactions   (899)   (12,862)   (12,581)   (48,217)
Total increase (decrease) in net assets   (1,233)   (13,108)   (12,259)   (50,623)
Net assets at December 31, 2008   $ 2,781   $ 23,085   $ 76,227   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    122            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

                ING Lehman
    ING BlackRock           Brothers U.S.
    Global Science   ING Global   ING   Aggregate Bond
and Technology Equity Option International Index®
    Portfolio -   Portfolio -   Index Portfolio -   Portfolio -
    Class S   Class S   Class S   Class S
Net assets at January 1, 2007   $ 550   $ -   $ -   $ -
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (9)   -   -   -
Total realized gain (loss) on investments                
and capital gains distributions   16   -   -   -
Net unrealized appreciation (depreciation)                
of investments   92   -   -   -
Net increase (decrease) in net assets from operations   99   -   -   -
Changes from principal transactions:                
Premiums   502   -   -   -
Surrenders and withdrawals   (10)   -   -   -
Benefit payments   -   -   -   -
Transfers between Divisions                
(including fixed account), net   (1)   -   -   -
Increase (decrease) in net assets derived from                
principal transactions   491   -   -   -
Total increase (decrease) in net assets   590   -   -   -
Net assets at December 31, 2007   1,140   -   -   -
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (2,008)   22   46   513
Total realized gain (loss) on investments                
and capital gains distributions   (6,000)   (1)   (755)   (164)
Net unrealized appreciation (depreciation)                
of investments   (42,952)   92   (1,100)   4,506
Net increase (decrease) in net assets from operations   (50,960)   113   (1,809)   4,855
Changes from principal transactions:                
Premiums   13,872   1,647   4,176   33,477
Death Benefits   (457)   -   (4)   (389)
Surrenders and withdrawals   123,782   284   3,678   139,284
Transfers between Divisions                
(including fixed account), net   49   -   -   34
Increase (decrease) in net assets derived from                
principal transactions   137,246   1,931   7,850   172,406
Total increase (decrease) in net assets   86,286   2,044   6,041   177,261
Net assets at December 31, 2008   $ 87,426   $ 2,044   $ 6,041   $ 177,261
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    123            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING            
    Opportunistic   ING   ING Russell™    
    Large Cap   Opportunistic   Global Large   ING Russell™
    Growth   Large Cap   Cap Index 85%   Large Cap
    Portfolio -   Value Portfolio -   Portfolio -   Index Portfolio -
    Class S   Class S   Class S   Class S
Net assets at January 1, 2007   $ 273   $ 27,029   $ -   $ -
 
Increase (decrease) in net assets                    
Operations:                    
Net investment income (loss)       (2)   (146)   -   -
Total realized gain (loss) on investments                    
and capital gains distributions       21   735   -   -
Net unrealized appreciation (depreciation)                    
of investments       29   (334)   -   -
Net increase (decrease) in net assets from operations       48   255   -   -
Changes from principal transactions:                    
Premiums       58   490   -   -
Surrenders and withdrawals       250   (4,755)   -   -
Benefit payments       -   (76)   -   -
Transfers between Divisions                    
(including fixed account), net       -   (2)   -   -
Increase (decrease) in net assets derived from                    
principal transactions       308   (4,343)   -   -
Total increase (decrease) in net assets       356   (4,088)   -   -
Net assets at December 31, 2007       629   22,941   -   -
 
Increase (decrease) in net assets                    
Operations:                    
Net investment income (loss)       (4)   (43)   23   58
Total realized gain (loss) on investments                    
and capital gains distributions       13   2,013   (50)   (2,760)
Net unrealized appreciation (depreciation)                    
of investments       (300)   (9,695)   161   (2,334)
Net increase (decrease) in net assets from operations       (291)   (7,725)   134   (5,036)
Changes from principal transactions:                    
Premiums       152   59   2,202   10,136
Death Benefits       -   (359)   -   (9)
Surrenders and withdrawals       (140)   (3,358)   389   17,812
Transfers between Divisions                    
(including fixed account), net       -   5   -   -
Increase (decrease) in net assets derived from                    
principal transactions       12   (3,653)   2,591   27,939
Total increase (decrease) in net assets       (279)   (11,378)   2,725   22,903
Net assets at December 31, 2008   $ 350   $ 11,563   $ 2,725   $ 22,903
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    124                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    ING Russell™   ING Russell™   ING VP Index   ING VP Index
    Mid Cap Index   Small Cap Index   Plus LargeCap   Plus MidCap
    Portfolio -   Portfolio -   Portfolio -   Portfolio -
    Class S   Class S   Class S   Class S
Net assets at January 1, 2007   $ -   $ -   $ 204,688   $ 220,692
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   -   -   (3,193)   (3,892)
Total realized gain (loss) on investments                
and capital gains distributions   -   -   13,187   23,058
Net unrealized appreciation (depreciation)                
of investments   -   -   (4,826)   (13,818)
Net increase (decrease) in net assets from operations   -   -   5,168   5,348
Changes from principal transactions:                
Premiums   -   -   24,433   36,194
Surrenders and withdrawals   -   -   71,011   (27,593)
Benefit payments   -   -   (2,104)   (1,778)
Transfers between Divisions                
(including fixed account), net   -   -   -   (10)
Increase (decrease) in net assets derived from                
principal transactions   -   -   93,340   6,813
Total increase (decrease) in net assets   -   -   98,508   12,161
Net assets at December 31, 2007   -   -   303,196   232,853
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   81   (32)   (55)   (1,912)
Total realized gain (loss) on investments                
and capital gains distributions   (1,525)   (5,156)   19,076   11,342
Net unrealized appreciation (depreciation)                
of investments   (5,755)   (23,030)   (136,091)   (89,601)
Net increase (decrease) in net assets from operations   (7,199)   (28,218)   (117,070)   (80,171)
Changes from principal transactions:                
Premiums   15,114   15,916   6,600   11,911
Death Benefits   (166)   (215)   (3,295)   (1,481)
Surrenders and withdrawals   14,874   83,014   (15,478)   (47,608)
Transfers between Divisions                
(including fixed account), net   26   30   420   140
Increase (decrease) in net assets derived from                
principal transactions   29,848   98,745   (11,753)   (37,038)
Total increase (decrease) in net assets   22,649   70,527   (128,823)   (117,209)
Net assets at December 31, 2008   $ 22,649   $ 70,527   $ 174,373   $ 115,644
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    125            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

            ING    
            WisdomTreeSM   ING VP
    ING VP Index   ING VP Small   Global High-   Financial
    Plus SmallCap   Company   Yielding Equity   Services
    Portfolio -   Portfolio -   Index Portfolio -   Portfolio -
    Class S   Class S   Class S   Class S
Net assets at January 1, 2007   $ 197,450   $ 2,151   $ -   $ 92,739
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (3,888)   (27)   -   (670)
Total realized gain (loss) on investments                
and capital gains distributions   23,486   389   -   8,794
Net unrealized appreciation (depreciation)                
of investments   (35,463)   (286)   -   (19,968)
Net increase (decrease) in net assets from operations   (15,865)   76   -   (11,844)
Changes from principal transactions:                
Premiums   26,470   951   -   7,734
Surrenders and withdrawals   (34,911)   (354)   -   (17,581)
Benefit payments   (1,297)   (21)   -   (499)
Transfers between Divisions                
(including fixed account), net   (14)   -   -   (61)
Increase (decrease) in net assets derived from                
principal transactions   (9,752)   576   -   (10,407)
Total increase (decrease) in net assets   (25,617)   652   -   (22,251)
Net assets at December 31, 2007   171,833   2,803   -   70,488
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (2,197)   (403)   2,343   (212)
Total realized gain (loss) on investments                
and capital gains distributions   (3,579)   (1,783)   (3,268)   (20,878)
Net unrealized appreciation (depreciation)                
of investments   (47,599)   (10,805)   (68,858)   6,684
Net increase (decrease) in net assets from operations   (53,375)   (12,991)   (69,783)   (14,406)
Changes from principal transactions:                
Premiums   6,895   14,100   126,979   6,214
Death Benefits   (807)   (16)   (482)   (1,235)
Surrenders and withdrawals   (36,030)   39,577   88,264   (61,076)
Transfers between Divisions                
(including fixed account), net   96   6   73   15
Increase (decrease) in net assets derived from                
principal transactions   (29,846)   53,667   214,834   (56,082)
Total increase (decrease) in net assets   (83,221)   40,676   145,051   (70,488)
Net assets at December 31, 2008   $ 88,612   $ 43,479   $ 145,051   $ -
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    126            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

        ING VP       ING VP
    ING VP   MidCap       SmallCap
    International   Opportunities   ING VP Real   Opportunities
    Value Portfolio -   Portfolio -   Estate Portfolio   Portfolio -
    Class S   Class S   - Class S   Class S
Net assets at January 1, 2007   $ 6,945   $ 25,935   $ 6,099   $ 116,669
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   44   (575)   146   (2,581)
Total realized gain (loss) on investments                
and capital gains distributions   1,910   1,752   555   13,167
Net unrealized appreciation (depreciation)                
of investments   (904)   4,194   (2,423)   (1,917)
Net increase (decrease) in net assets from operations   1,050   5,371   (1,722)   8,669
Changes from principal transactions:                
Premiums   5,756   621   3,244   1,819
Surrenders and withdrawals   (541)   (5,107)   105   (25,813)
Benefit payments   (27)   (406)   -   (1,048)
Transfers between Divisions                
(including fixed account), net   -   (2)   2   11
Increase (decrease) in net assets derived from                
principal transactions   5,188   (4,894)   3,351   (25,031)
Total increase (decrease) in net assets   6,238   477   1,629   (16,362)
Net assets at December 31, 2007   13,183   26,412   7,728   100,307
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   155   (4,642)   71   (1,880)
Total realized gain (loss) on investments                
and capital gains distributions   1,481   2,904   (1,693)   16,360
Net unrealized appreciation (depreciation)                
of investments   (8,028)   (128,278)   1,825   (46,306)
Net increase (decrease) in net assets from operations   (6,392)   (130,016)   203   (31,826)
Changes from principal transactions:                
Premiums   4,212   12,727   (7,934)   835
Death Benefits   (69)   (4,340)   -   (650)
Surrenders and withdrawals   (2,038)   318,336   3   (17,109)
Transfers between Divisions                
(including fixed account), net   -   233   -   34
Increase (decrease) in net assets derived from                
principal transactions   2,105   326,956   (7,931)   (16,890)
Total increase (decrease) in net assets   (4,287)   196,940   (7,728)   (48,716)
Net assets at December 31, 2008   $ 8,896   $ 223,352   $ -   $ 51,591
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    127            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

            Legg Mason    
            Partners    
            Variable   Legg Mason
    ING VP   ING VP   International   Partners
    Balanced   Intermediate   All Cap   Variable
    Portfolio -   Bond Portfolio -   Opportunity   Investors
    Class S   Class S   Portfolio   Portfolio
Net assets at January 1, 2007   $ 10,361   $ 616,032   $ 136   $ -
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   104   19,091   (1)   -
Total realized gain (loss) on investments                
and capital gains distributions   507   (1,995)   43   5
Net unrealized appreciation (depreciation)                
of investments   (233)   12,314   (36)   (9)
Net increase (decrease) in net assets from operations   378   29,410   6   (4)
Changes from principal transactions:                
Premiums   1,512   409,576   1   -
Surrenders and withdrawals   (2,289)   19,708   (29)   173
Benefit payments   (60)   (6,608)   (9)   -
Transfers between Divisions                
(including fixed account), net   (1)   43   (1)   -
Increase (decrease) in net assets derived from                
principal transactions   (838)   422,719   (38)   173
Total increase (decrease) in net assets   (460)   452,129   (32)   169
Net assets at December 31, 2007   9,901   1,068,161   104   169
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   151   40,270   -   (1)
Total realized gain (loss) on investments                
and capital gains distributions   349   11,087   (27)   (14)
Net unrealized appreciation (depreciation)                
of investments   (3,303)   (189,985)   (9)   (41)
Net increase (decrease) in net assets from operations   (2,803)   (138,628)   (36)   (56)
Changes from principal transactions:                
Premiums   1,422   251,904   1   1
Death Benefits   (254)   (10,787)   -   -
Surrenders and withdrawals   (1,867)   (49,564)   (30)   (41)
Transfers between Divisions                
(including fixed account), net   -   1,214   -   -
Increase (decrease) in net assets derived from                
principal transactions   (699)   192,767   (29)   (40)
Total increase (decrease) in net assets   (3,502)   54,139   (65)   (96)
Net assets at December 31, 2008   $ 6,399   $ 1,122,300   $ 39   $ 73
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    128            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

        Legg Mason   Oppenheimer    
    Legg Mason   Partners   Main Street   PIMCO Real
    Partners   Variable Money   Small Cap   Return Portfolio
    Variable High   Market   Fund®/VA -   - Administrative
    Income Portfolio   Portfolio   Service Class   Class
Net assets at January 1, 2007   $ 138   $ 23   $ 822   $ 1,301
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   8   (32)   (12)   61
Total realized gain (loss) on investments                
and capital gains distributions   4   -   45   (20)
Net unrealized appreciation (depreciation)                
of investments   (13)   -   (100)   127
Net increase (decrease) in net assets from operations   (1)   (32)   (67)   168
Changes from principal transactions:                
Premiums   -   -   526   810
Surrenders and withdrawals   (27)   174   42   151
Benefit payments   -   -   -   -
Transfers between Divisions                
(including fixed account), net   -   1   -   -
Increase (decrease) in net assets derived from                
principal transactions   (27)   175   568   961
Total increase (decrease) in net assets   (28)   143   501   1,129
Net assets at December 31, 2007   110   166   1,323   2,430
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   7   (1)   (11)   140
Total realized gain (loss) on investments                
and capital gains distributions   (1)   -   22   (5)
Net unrealized appreciation (depreciation)                
of investments   (30)   -   (523)   (981)
Net increase (decrease) in net assets from operations   (24)   (1)   (512)   (846)
Changes from principal transactions:                
Premiums   -   -   246   3,930
Death Benefits   -   -   (25)   -
Surrenders and withdrawals   (35)   (142)   (210)   1,998
Transfers between Divisions                
(including fixed account), net   -   -   -   3
Increase (decrease) in net assets derived from                
principal transactions   (35)   (142)   11   5,931
Total increase (decrease) in net assets   (59)   (143)   (501)   5,085
Net assets at December 31, 2008   $ 51   $ 23   $ 822   $ 7,515
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    129            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    Pioneer Equity   Pioneer Small        
    Income VCT   Cap Value VCT        
    Portfolio -   Portfolio -   ProFund VP   ProFund VP
    Class II   Class II   Bull   Europe 30
Net assets at January 1, 2007   $ 8,556   $ 6,765   $ 57,596   $ 29,949
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   184   (73)   (733)   (67)
Total realized gain (loss) on investments                
and capital gains distributions   769   1,215   3,588   2,536
Net unrealized appreciation (depreciation)                
of investments   (1,434)   (1,600)   (1,667)   796
Net increase (decrease) in net assets from operations   (481)   (458)   1,188   3,265
Changes from principal transactions:                
Premiums   8,823   3   602   24
Surrenders and withdrawals   (472)   (1,330)   (28,961)   (9,613)
Benefit payments   (89)   (103)   (362)   (204)
Transfers between Divisions                
(including fixed account), net   1   (4)   (1)   -
Increase (decrease) in net assets derived from                
principal transactions   8,263   (1,434)   (28,722)   (9,793)
Total increase (decrease) in net assets   7,782   (1,892)   (27,534)   (6,528)
Net assets at December 31, 2007   16,338   4,873   30,062   23,421
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   215   (52)   (521)   (59)
Total realized gain (loss) on investments                
and capital gains distributions   818   (47)   (191)   2,168
Net unrealized appreciation (depreciation)                
of investments   (6,571)   (1,586)   (9,414)   (11,280)
Net increase (decrease) in net assets from operations   (5,538)   (1,685)   (10,126)   (9,171)
Changes from principal transactions:                
Premiums   4,145   -   10   10
Death Benefits   (7)   (130)   (211)   (101)
Surrenders and withdrawals   (1,626)   (688)   (5,680)   (4,320)
Transfers between Divisions                
(including fixed account), net   11   18   (9)   (4)
Increase (decrease) in net assets derived from                
principal transactions   2,523   (800)   (5,890)   (4,415)
Total increase (decrease) in net assets   (3,015)   (2,485)   (16,016)   (13,586)
Net assets at December 31, 2008   $ 13,323   $ 2,388   $ 14,046   $ 9,835
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    130            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

                Wells Fargo
    ProFund VP       Wells Fargo   Advantage C&B
    Rising Rates   ProFund VP   Advantage Asset   Large Cap
    Opportunity   Small-Cap   Allocation Fund   Value Fund
Net assets at January 1, 2007   $ 47,606   $ 106,445   $ 3,422   $ 560
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   1,203   (1,326)   (7)   (7)
Total realized gain (loss) on investments                
and capital gains distributions   71   13,519   118   15
Net unrealized appreciation (depreciation)                
of investments   (3,446)   (14,654)   53   (25)
Net increase (decrease) in net assets from operations   (2,172)   (2,461)   164   (17)
Changes from principal transactions:                
Premiums   911   1,265   -   -
Surrenders and withdrawals   (15,742)   (39,646)   (305)   (47)
Benefit payments   (368)   (802)   -   (6)
Transfers between Divisions                
(including fixed account), net   (5)   (11)   1   (1)
Increase (decrease) in net assets derived from                
principal transactions   (15,204)   (39,194)   (304)   (54)
Total increase (decrease) in net assets   (17,376)   (41,655)   (140)   (71)
Net assets at December 31, 2007   30,230   64,790   3,282   489
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   645   (694)   (4)   (5)
Total realized gain (loss) on investments                
and capital gains distributions   (2,446)   (13,366)   204   (1)
Net unrealized appreciation (depreciation)                
of investments   (7,148)   9,293   (1,153)   (149)
Net increase (decrease) in net assets from operations   (8,949)   (4,767)   (953)   (155)
Changes from principal transactions:                
Premiums   10   (9)   -   -
Death Benefits   (354)   (170)   (8)   -
Surrenders and withdrawals   (7,744)   (59,845)   (332)   (101)
Transfers between Divisions                
(including fixed account), net   6   1   -   -
Increase (decrease) in net assets derived from                
principal transactions   (8,082)   (60,023)   (340)   (101)
Total increase (decrease) in net assets   (17,031)   (64,790)   (1,293)   (256)
Net assets at December 31, 2008   $ 13,199   $ -   $ 1,989   $ 233
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    131            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    Wells Fargo   Wells Fargo   Wells Fargo   Wells Fargo
    Advantage   Advantage   Advantage   Advantage
    Equity Income   Large Company   Money Market   Small Cap
    Fund   Growth Fund   Fund   Growth Fund
Net assets at January 1, 2007   $ 1,105   $ 2,876   $ 314   $ 910
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (10)   (71)   3   (22)
Total realized gain (loss) on investments                
and capital gains distributions   103   65   -   180
Net unrealized appreciation (depreciation)                
of investments   (87)   143   -   (66)
Net increase (decrease) in net assets from operations   6   137   3   92
Changes from principal transactions:                
Premiums   -   -   -   -
Surrenders and withdrawals   (106)   (284)   (190)   (117)
Benefit payments   -   (47)   -   -
Transfers between Divisions                
(including fixed account), net   (1)   (1)   -   (1)
Increase (decrease) in net assets derived from                
principal transactions   (107)   (332)   (190)   (118)
Total increase (decrease) in net assets   (101)   (195)   (187)   (26)
Net assets at December 31, 2007   1,004   2,681   127   884
 
Increase (decrease) in net assets                
Operations:                
Net investment income (loss)   (5)   (48)   (1)   (16)
Total realized gain (loss) on investments                
and capital gains distributions   99   3   -   179
Net unrealized appreciation (depreciation)                
of investments   (456)   (940)   -   (508)
Net increase (decrease) in net assets from operations   (362)   (985)   (1)   (345)
Changes from principal transactions:                
Premiums   -   -   -   -
Death Benefits   -   (42)   -   (8)
Surrenders and withdrawals   (113)   (346)   (83)   (112)
Transfers between Divisions                
(including fixed account), net   -   -   -   -
Increase (decrease) in net assets derived from                
principal transactions   (113)   (388)   (83)   (120)
Total increase (decrease) in net assets   (475)   (1,373)   (84)   (465)
Net assets at December 31, 2008   $ 529   $ 1,308   $ 43   $ 419
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
    132            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Statements of Changes in Net Assets
For the years ended December 31, 2008 and 2007
(Dollars in thousands)

    Wells Fargo      
    Advantage Total      
    Return Bond      
    Fund      
Net assets at January 1, 2007   $ 1,376      
       
Increase (decrease) in net assets          
Operations:          
Net investment income (loss)   30      
Total realized gain (loss) on investments          
and capital gains distributions   (4)      
Net unrealized appreciation (depreciation)          
of investments   23      
Net increase (decrease) in net assets from operations   49      
Changes from principal transactions:          
Premiums   -      
Surrenders and withdrawals   (111)      
Benefit payments   -      
Transfers between Divisions          
(including fixed account), net   -      
Increase (decrease) in net assets derived from          
principal transactions   (111)      
Total increase (decrease) in net assets   (62)      
Net assets at December 31, 2007   1,314      
       
Increase (decrease) in net assets          
Operations:          
Net investment income (loss)   30      
Total realized gain (loss) on investments          
and capital gains distributions   (9)      
Net unrealized appreciation (depreciation)          
of investments   (21)      
Net increase (decrease) in net assets from operations   -      
Changes from principal transactions:          
Premiums   -      
Death Benefits   -      
Surrenders and withdrawals   (285)      
Transfers between Divisions          
(including fixed account), net   -      
Increase (decrease) in net assets derived from          
principal transactions   (285)      
Total increase (decrease) in net assets   (285)      
Net assets at December 31, 2008   $ 1,029      
       
       
       
       
The accompanying notes are an integral part of these financial statements.
       
           

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

1. Organization

ING USA Annuity and Life Insurance Company Separate Account B (the “Account”) was
established by ING USA Annuity and 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 America Insurance Holdings,
Inc. (“ING AIH”) an insurance holding company domiciled in the State of Delaware.
ING AIH is an indirect wholly owned subsidiary of ING Groep, N.V. (“ING”), a global
financial services holding company based in The Netherlands.

During 2008, the Account offered ING Architect Contracts, ING GoldenSelect Contracts,
and ING Retirement Solutions Rollover Choice Contracts (collectively, the “Contracts”).
ING GoldenSelect Contracts included Access, Premium Plus, ESII, and Landmark.

The Account includes the following discontinued offerings:

ING GoldenSelect Contracts:
   Access One (September 2003)
   DVA and DVA Series 100 (May 2000)
   DVA 80 (May 1991)
   DVA Plus (January 2004)
   Generations (October 2008)
   Granite PrimElite (May 2001)
   Opportunities and Legends (March 2007)
   Value (June 2003)
ING Simplicity Contracts (August 2007)
ING SmartDesign Contracts:
   Variable Annuity, Advantage and Signature (April 2008)
Wells Fargo ING Contracts:
   Opportunities and Landmark (June 2006)
ING Customized Solutions Focus Contracts (September 2004)

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.

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.

                                                          134

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

At December 31, 2008, the Account had 180 investment divisions (the “Divisions”), 28
of which invest in independently managed mutual fund portfolios and 152 of which
invest in mutual fund portfolios managed by affiliates, either Directed Services LLC
(“DSL”) or ING Investments, LLC (“IIL”). The assets in each Division are invested in
shares of a designated mutual fund (“Fund”) of various investment trusts (the “Trusts”).
Investment Divisions at December 31, 2008 and related Trusts are as follows:

AIM Variable Insurance Funds:
     AIM V.I. Leisure Fund - Series I Shares
BlackRock Variable Series Funds, Inc.:
     BlackRock Global Allocation V.I. Fund - Class III**
Columbia Funds Variable Insurance Trust: 
     Columbia Asset Allocation Fund, Variable Series - Class A
     Columbia Federal Securities Fund, Variable Series - Class A
     Columbia Large Cap Growth Fund, Variable Series - Class A
     Columbia Small Cap Value Fund, Variable Series - Class B
     Columbia Small Company Growth Fund, Variable Series - Class A
Fidelity® Variable Insurance Products:
     Fidelity® VIP Equity-Income Portfolio - Service Class 2
Fidelity® Variable Insurance Products II: 
     Fidelity® VIP Contrafund® Portfolio - Service Class 2
Franklin Templeton Variable Insurance Products Trust: 
     Franklin Small Cap Value Securities Fund - Class 2
ING Investors Trust: 
     ING AllianceBernstein Mid Cap Growth Portfolio - Service Class 
     ING AllianceBernstein Mid Cap Growth Portfolio - Service 2 Class 
     ING American Funds Asset Allocation Portfolio** 
     ING American Funds Bond Portfolio** 
     ING American Funds Growth Portfolio 
     ING American Funds Growth-Income Portfolio 
     ING American Funds International Portfolio 
     ING American Funds World Allocation Portfolio - Service Class** 
     ING BlackRock Large Cap Growth Portfolio - Institutional Class* 
     ING BlackRock Large Cap Growth Portfolio - Service Class 
     ING BlackRock Large Cap Value Portfolio - Service Class 
     ING BlackRock Large Cap Value Portfolio - Service 2 Class 
     ING Evergreen Health Sciences Portfolio - Service Class 
     ING Evergreen Omega Portfolio - Service Class 
     ING Evergreen Omega Portfolio - Service 2 Class 
     ING FMRSM Diversified Mid Cap Portfolio - Service Class 
     ING FMRSM Diversified Mid Cap Portfolio - Service 2 Class

 

  

 

ING Investors Trust (continued):
     ING Focus 5 Portfolio - Service Class* 
     ING Franklin Income Portfolio - Service Class
     ING Franklin Income Portfolio - Service 2 Class 
     ING Franklin Mutual Shares Portfolio - Service Class* 
     ING Franklin Templeton Founding Strategy Portfolio - Service Class*
     ING Global Real Estate Portfolio - Service Class
     ING Global Real Estate Portfolio - Service 2 Class 
     ING Global Resources Portfolio - Service Class
     ING Global Resources Portfolio - Service 2 Class 
     ING International Growth Opportunities Portfolio - Service Class
     ING International Growth Opportunities Portfolio - Service 2 Class
     ING Janus Contrarian Portfolio - Service Class 
     ING Janus Contrarian Portfolio - Service 2 Class 
     ING JPMorgan Emerging Markets Equity Portfolio - Adviser Class 
     ING JPMorgan Emerging Markets Equity Portfolio - Service Class 
     ING JPMorgan Small Cap Core Equity Portfolio - Service Class 
     ING JPMorgan Small Cap Core Equity Portfolio - Service 2 Class 
     ING JPMorgan Value Opportunities Portfolio - Service Class 
     ING JPMorgan Value Opportunities Portfolio - Service 2 Class 
     ING Julius Baer Foreign Portfolio - Service Class 
     ING Julius Baer Foreign Portfolio - Service 2 Class 
     ING Legg Mason Value Portfolio - Service Class 
     ING Legg Mason Value Portfolio - Service 2 Class 
     ING LifeStyle Aggressive Growth Portfolio - Service Class 
     ING LifeStyle Aggressive Growth Portfolio - Service 2 Class 
     ING LifeStyle Conservative Portfolio - Service Class** 
     ING LifeStyle Growth Portfolio - Service Class 
     ING LifeStyle Growth Portfolio - Service 2 Class 
     ING LifeStyle Moderate Growth Portfolio - Service Class 
     ING LifeStyle Moderate Growth Portfolio - Service 2 Class 
     ING LifeStyle Moderate Portfolio - Service Class 
     ING LifeStyle Moderate Portfolio - Service 2 Class 
     ING Limited Maturity Bond Portfolio - Service Class 
     ING Liquid Assets Portfolio - Service Class

135

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

ING Investors Trust (continued):
     ING Liquid Assets Portfolio - Service 2 Class 
     ING Lord Abbett Affiliated Portfolio - Service Class 
     ING Lord Abbett Affiliated Portfolio - Service 2 Class 
     ING Marsico Growth Portfolio - Service Class 
     ING Marsico Growth Portfolio - Service 2 Class 
     ING Marsico International Opportunities Portfolio - Service Class 
     ING MFS Total Return Portfolio - Service Class 
     ING MFS Total Return Portfolio - Service 2 Class 
     ING MFS Utilities Portfolio - Service Class 
     ING Multi-Manager International Small Cap Portfolio - Class S** 
     ING Oppenheimer Active Asset Allocation Portfolio - Service Class**
      ING Oppenheimer Main Street Portfolio® - Service Class 
     ING Oppenheimer Main Street Portfolio® - Service 2 Class 
     ING PIMCO Core Bond Portfolio - Service Class 
     ING PIMCO Core Bond Portfolio - Service 2 Class 
     ING PIMCO High Yield Portfolio - Service Class 
     ING Pioneer Fund Portfolio - Service Class 
     ING Pioneer Mid Cap Value Portfolio - Service Class 
     ING T. Rowe Price Capital Appreciation Portfolio - Service Class 
     ING T. Rowe Price Capital Appreciation Portfolio - Service 2 Class 
     ING T. Rowe Price Equity Income Portfolio - Service Class 
     ING T. Rowe Price Equity Income Portfolio - Service 2 Class 
     ING Templeton Global Growth Portfolio - Service Class 
     ING Templeton Global Growth Portfolio - Service 2 Class 
     ING Van Kampen Capital Growth Portfolio - Service Class 
     ING Van Kampen Capital Growth Portfolio - Service 2 Class 
     ING Van Kampen Global Franchise Portfolio - Service Class 
     ING Van Kampen Global Franchise Portfolio - Service 2 Class 
     ING Van Kampen Global Tactical Asset Allocation Portfolio - Service Class** 
     ING Van Kampen Growth and Income Portfolio - Service Class 
     ING Van Kampen Growth and Income Portfolio - Service 2 Class 
     ING Van Kampen Real Estate Portfolio - Service Class 
     ING Van Kampen Real Estate Portfolio - Service 2 Class
     ING VP Index Plus International Equity Portfolio - Service Class
     ING VP Index Plus International Equity Portfolio - Service 2 Class

 

  

ING Investors Trust (continued):
     ING Wells Fargo Small Cap Disciplined Portfolio - Service Class 
     ING Wells Fargo Small Cap Disciplined Portfolio - Service 2 Class
ING Mutual Funds: 
     ING Diversified International Fund - Class R
ING Partners, Inc.: 
     ING American Century Large Company Value Portfolio - Service Class 
     ING American Century Small-Mid Cap Value Portfolio - Service Class 
     ING Baron Small Cap Growth Portfolio - Service Class 
     ING Columbia Small Cap Value II Portfolio - Service Class 
     ING Davis New York Venture Portfolio - Service Class 
     ING JPMorgan Mid Cap Value Portfolio - Service Class 
     ING Legg Mason Partners Aggressive Growth Portfolio - Service Class 
     ING Neuberger Berman Partners Portfolio - Service Class 
     ING Oppenheimer Global Portfolio - Initial Class 
     ING Oppenheimer Global Portfolio - Service Class 
     ING Oppenheimer Strategic Income Portfolio - Service Class 
     ING PIMCO Total Return Portfolio - Service Class 
     ING Solution 2015 Portfolio - Service Class 
     ING Solution 2025 Portfolio - Service Class 
     ING Solution 2035 Portfolio - Service Class 
     ING Solution 2045 Portfolio - Service Class 
     ING Solution Income Portfolio - Service Class 
     ING T. Rowe Price Diversified Mid Cap Growth Portfolio - Service Class 
     ING T. Rowe Price Growth Equity Portfolio - Service Class 
     ING Templeton Foreign Equity Portfolio - Service Class 
     ING Thornburg Value Portfolio - Initial Class 
     ING Thornburg Value 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 - Initial Class 
     ING Van Kampen Equity and Income Portfolio - Service Class 
ING Strategic Allocation Portfolios, Inc.: 
     ING VP Strategic Allocation Conservative Portfolio - Class S
     ING VP Strategic Allocation Growth Portfolio - Class S
     ING VP Strategic Allocation Moderate Portfolio - Class S

136

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

ING Variable Funds:
     ING VP Growth and Income Portfolio - Class I* 
     ING VP Growth and Income Portfolio - Class S
ING Variable Insurance Trust:
     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 GET U.S. Core Portfolio - Series 8 
     ING GET U.S. Core Portfolio - Series 9 
     ING GET U.S. Core Portfolio - Series 10 
     ING GET U.S. Core Portfolio - Series 11 
     ING GET U.S. Core Portfolio - Series 12 
     ING GET U.S. Core Portfolio - Series 13 
     ING GET U.S. Core Portfolio - Series 14* 
ING Variable Portfolios, Inc.: 
     ING BlackRock Global Science and Technology Portfolio - Class S
     ING Global Equity Option Portfolio - Class S** 
     ING International Index Portfolio - Class S** 
     ING Lehman Brothers U.S. Aggregate Bond Index® Portfolio - Class S** 
     ING Opportunistic Large Cap Growth Portfolio - Class S
     ING Opportunistic Large Cap Value Portfolio - Class S 
     ING Russell™ Global Large Cap Index 85% Portfolio - Class S** 
     ING Russell™ Large Cap Index Portfolio - Class S** 
     ING Russell™ Mid Cap Index Portfolio - Class S** 
     ING Russell™ Small Cap Index Portfolio - Class S** 
     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 VP Small Company Portfolio - Class S
     ING WisdomTreeSM Global High-Yielding Equity Index Portfolio - Class S**
ING Variable Products Trust:
     ING VP International Value Portfolio - Class S
     ING VP MidCap Opportunities Portfolio - Class S
     ING VP SmallCap Opportunities Portfolio - Class S
    

 

ING VP Balanced Portfolio, Inc.:
     ING VP Balanced Portfolio - Class S 
ING VP Intermediate Bond Portfolio:
     ING VP Intermediate Bond Portfolio - Class S
Legg Mason Partners Variable Equity Trust:
     Legg Mason Partners Variable International All Cap Opportunity Portfolio 
     Legg Mason Partners Variable Investors Portfolio* 
Legg Mason Partners Variable Income Trust: 
     Legg Mason Partners Variable High Income Portfolio 
     Legg Mason Partners Variable Money Market Portfolio
Oppenheimer Variable Account Funds: 
     Oppenheimer Main Street Small Cap Fund®/VA - Service Class
PIMCO Variable Insurance Trust: 
     PIMCO Real Return Portfolio - Administrative Class
Pioneer Variable Contracts Trust: 
     Pioneer Equity Income VCT Portfolio - Class II
     Pioneer Small Cap Value VCT Portfolio - Class II
ProFunds: 
     ProFund VP Bull 
     ProFund VP Europe 30 
     ProFund VP Rising Rates Opportunity
Wells Fargo Funds Trust:
     Wells Fargo Advantage Asset Allocation Fund 
     Wells Fargo Advantage C&B Large Cap Value Fund 
     Wells Fargo Advantage Equity Income Fund 
     Wells Fargo Advantage Large Company Growth Fund 
     Wells Fargo Advantage Money Market Fund 
     Wells Fargo Advantage Small Cap Growth Fund 
     Wells Fargo Advantage Total Return Bond Fund


*          Division became available in 2007
**       Division became available in 2008

 
 

137

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

The names of certain Divisions were changed during 2008. The following is a summary
of current and former names for those Divisions:

Current Name   Former Name
ING Investors Trust:   ING Investors Trust:
       ING Mid Cap Growth Portfolio - Service Class          ING FMRSM Mid Cap Growth Portfolio - Service
                  Class
       ING Mid Cap Growth Portfolio - Service Class 2          ING FMRSM Mid Cap Growth Portfolio - Service
                  Class 2
       ING Van Kampen Large Cap Growth Portfolio -          ING FMRSM Large Cap Growth Portfolio - Service
              Service Class                 Class
ING Variable Portfolios, Inc.:   ING Variable Portfolios, Inc.:
       ING BlackRock Global Science and Technology          ING VP Global Science and Technology Portfolio -
              Portfolio - Class S                 Class S
       ING Opportunistic Large Cap Growth Portfolio -          ING VP Growth Portfolio - Class S
              Class S    
       ING Opportunistic Large Cap Value Portfolio -          ING VP Value Opportunity Portfolio - Class S
              Class S    

The following Divisions were closed to contractowners in 2008:

ING GET Fund:
       ING GET Fund - Series U
       ING GET Fund - Series V
ING Investors Trust:
       ING Capital Guardian U.S. Equities Portfolio - Service Class
       ING Capital Guardian U.S. Equities Portfolio - Service 2 Class
       ING EquitiesPlus Portfolio - Service Class
       ING EquitiesPlus Portfolio - Service 2 Class
       ING Global Technology Portfolio - Service Class
       ING Global Technology Portfolio - Service 2 Class
       ING Mid Cap Growth Portfolio - Service Class
       ING Mid Cap Growth Portfolio - Service Class 2
       ING UBS U.S. Allocation Portfolio - Service Class
       ING UBS U.S. Allocation Portfolio - Service 2 Class
       ING Van Kampen Large Cap Growth Portfolio - Service Class
       ING Wells Fargo Disciplined Value Portfolio - Service Class
       ING Wells Fargo Disciplined Value Portfolio - Service 2 Class
ING Partners, Inc.:
       ING JPMorgan International Portfolio - Service Class
       ING Neuberger Berman Regency Portfolio - Service Class
       ING OpCap Balanced Value Portfolio - Service Class
       ING UBS U.S. Small Cap Growth Portfolio - Service Class
ING Variable Insurance Trust:
       ING GET U.S. Core Portfolio - Series 1
       ING GET U.S. Core Portfolio - Series 2
       ING VP Global Equity Dividend Portfolio
ING Variable Products Trust:
       ING VP Financial Services Portfolio - Class S
       ING VP Real Estate Portfolio - Class S
ProFunds:
       ProFund VP Small-Cap

                                                                                                  138

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

The following Divisions were offered during 2008 but did not have any activity as of
December 31, 2008:

ING Investors Trust:
     ING BlackRock Large Cap Growth Portfolio - Service 2 Class
     ING Evergreen Health Sciences Portfolio - Service 2 Class

2. Significant Accounting Policies

The following is a summary of the significant accounting policies of the Account:

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.

Investments

Investments are made in shares of a Fund and are recorded at fair value, determined by
the net asset value per share of the respective Fund. Investment transactions in each Fund
are recorded on the trade date. Distributions of net investment income and capital gains
from each Fund are recognized on the ex-distribution date. Realized gains and losses on
redemptions of the shares of the Fund 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.

Contractowner Reserves

Prior to the annuity date, the Contracts are redeemable for the net cash surrender value of
the Contracts. The annuity reserves of the Account are represented by net assets on the
Statements of Assets and Liabilities and are equal to the aggregate account values of the
contractowners invested in the Account Divisions. To the extent that benefits to be paid
to the contractowners exceed their account values, ING USA will contribute additional

                                                         139

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

funds to the benefit proceeds. Conversely, if amounts allocated exceed amounts required,
transfers may be made to ING USA.

Changes from Principal Transactions

Included in Changes from Principal Transactions on the Statements of Changes in Net
Assets are items which relate to contractowner activity, including deposits, surrenders and
withdrawals, benefits, and contract charges. Also included are transfers between the
fixed account and the Divisions, transfers between Divisions, and transfers to (from) ING
USA related to gains and losses resulting from actual mortality experience (the full
responsibility for which is assumed by ING USA). Any net unsettled transactions as of
the reporting date are included in Payable to related parties on the Statements of Assets
and Liabilities.

3. Recently Adopted Accounting Standards

Fair Value Measurements

In September 2006, the Financial Accounting Standards Board (“FASB”) issued
Statement of Financial Accounting Standards (“FAS”) No. 157, “Fair Value
Measurements” (“FAS No. 157”). FAS No. 157 provides guidance for using fair value to
measure assets and liabilities whenever other standards require (or permit) assets or
liabilities to be measured at fair value. FAS No. 157 does not expand the use of fair value
to any new circumstances.

Under FAS No. 157, the FASB clarifies the principle that fair value should be based on
the assumptions market participants would use when pricing the asset or liability. In
support of this principle, FAS No. 157 establishes a fair value hierarchy that prioritizes
the information used to develop such assumptions. The fair value hierarchy gives the
highest priority to quoted prices in active markets and the lowest priority to unobservable
data. FAS No. 157 also requires separate disclosure of fair value measurements by level
within the hierarchy and expanded disclosure of the effect on earnings for items measured
using unobservable data.

The adoption of FAS No. 157 on January 1, 2008 did not have an impact on the
Account’s net assets or results of operations. New disclosures are included in the
Financial Instruments footnote.

4. Financial Instruments

The Account invests assets in shares of open-end mutual funds, which process orders to
purchase and redeem shares on a daily basis at the fund's next computed net asset values
(“NAV”). The fair value of the Account’s assets is based on the NAVs of mutual funds,

                                                         140

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

which are obtained from the custodian and reflect the fair values of the mutual fund
investments. The NAV is calculated daily upon close of the New York Stock Exchange
and is based on the fair values of the underlying securities.

The Account’s financial assets are recorded at fair value on the Statements of Assets and
Liabilities and are categorized as Level 1 as of December 31, 2008, based on the priority
of the inputs to the valuation technique below. The Account had no financial liabilities as
of December 31, 2008.

The FAS No. 157 fair value hierarchy gives the highest priority to quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable
inputs (Level 3). If the inputs used to measure fair value fall within different levels of the
hierarchy, the category level is based on the lowest priority level input that is significant
to the fair value measurement of the instrument.

§     

Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active
market.

§     

Level 2 - Quoted prices in markets that are not active or inputs that are observable
either directly or indirectly for substantially the full term of the asset or liability.

 

Level 2 inputs include the following:

  a)     

Quoted prices for similar assets or liabilities in active markets;

  b)     

Quoted prices for identical or similar assets or liabilities in non-active
markets;

  c)     

Inputs other than quoted market prices that are observable; and

  d)     

Inputs that are derived principally from or corroborated by observable market
data through correlation or other means.

§     

Level 3 - Prices or valuation techniques that require inputs that are both
unobservable and significant to the overall fair value measurement. These
valuations, whether derived internally or obtained from a third party, use critical
assumptions that are not widely available to estimate market participant
expectations in valuing the asset or liability.

5. 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 or Quarterly 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. SmartDesign Advantage, SmartDesign Signature, and

                                                       141

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

SmartDesign Variable Annuity contracts each have three different death benefit options
referred to as Option Package I, Option Package II, and Option Package III. Focus has
two different options referred to as Option Package I, Option Package II.

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 are deducted at annual rates of up to 2.20% of the average daily net asset
value of each Division of the Account to cover these risks, as specified in the Contracts:

Series   Annual Rates
ING:      
     Architect (pre January 2008) Max 7   1.40 %
     Architect (post January 2008) Max 7   1.55  
     Architect (pre January 2008) Quarterly Ratchet   1.10  
     Architect (post January 2008) Quarterly Ratchet   1.25  
     Architect (post April 2008) Quarterly Ratchet   1.30  
     Architect (pre January 2008) Standard   0.85  
     Architect (post January 2008) Standard   1.00  
     Focus Variable Annuity Option I   0.60  
     Focus Variable Annuity Option II   0.80  
     Rollover ChoiceSM Option I (pre August 7, 2003)   0.60  
     Rollover ChoiceSM Option II (pre August 7, 2003)   0.80  
     Rollover ChoiceSM Option III (pre August 7, 2003)   0.95  
     Rollover ChoiceSM Option I (post August 7, 2003)   0.85  
     Rollover ChoiceSM Option II (post August 7, 2003)   1.05  
     Rollover ChoiceSM Option III (post August 7, 2003)   1.20  
ING GoldenSelect:      
     Access® (post January 2000) 5.5 % Solution   1.45  
     Access® (pre February 2000) 5.5% Solution   1.40  
     Access® (post 2000) 5.5% Solution   1.45  
     Access® (post April 2001) 5.5% Solution   1.80  
     Access® (post January 2000) 7% Solution   1.65  
     Access® (pre February 2000) 7% Solution   1.55  
     Access® (post 2000) 7% Solution   1.65  
     Access® (post April 2001) 7% Solution   2.00  
 
 
 
 
142      

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

Series   Annual Rates
ING GoldenSelect (continued):      
       Access® (post January 2000) Annual Ratchet   1.45 %
       Access® (pre February 2000) Annual Ratchet   1.40  
       Access® (post 2000) Annual Ratchet   1.55  
       Access® (post January 2000) Max 5.5   1.55  
       Access® (post 2000) Max 5.5   1.60  
       Access® (post April 2001) Max 5.5   1.95  
       Access® (post January 2000) Max 7   1.75  
       Access® (post 2000) Max 7   1.75  
       Access® (post April 2001) Max 7   2.20  
       Access® (post April 2001) Quarterly Ratchet   1.90  
       Access® (post April 2008) Quarterly Ratchet   1.95  
       Access® (post January 2000) Standard   1.65  
       Access® (pre February 2000) Standard   1.25  
       Access® (post 2000) Standard   1.30  
       Access® (post April 2001) Standard   1.65  
       Access® One   0.35  
       DVA   0.90  
       DVA 80   0.80  
       DVA Plus (post January 2000) 5.5% Solution   1.25  
       DVA Plus (pre February 2000) 5.5% Solution   1.25  
       DVA Plus (post 2000) 5.5% Solution   1.30  
       DVA Plus (post January 2000) 7% Solution   1.50  
       DVA Plus (pre February 2000) 7% Solution   1.40  
       DVA Plus (post 2000) 7% Solution   1.50  
       DVA Plus (post January 2000) Annual Ratchet   1.30  
       DVA Plus (pre February 2000) Annual Ratchet   1.25  
       DVA Plus (post 2000) Annual Ratchet   1.40  
       DVA Plus (post January 2000) Max 5.5   1.40  
       DVA Plus (post 2000) Max 5.5   1.45  
       DVA Plus (post January 2000) Max 7   1.60  
       DVA Plus (post 2000) Max 7   1.60  
       DVA Plus (post January 2000) Standard   1.15  
       DVA Plus (pre February 2000) Standard   1.10  
       DVA Plus (post 2000) Standard   1.15  
       DVA Series 100   1.25  
       ES II (pre 2001)   1.25  
       ES II (post 2000) 5.5% Solution   1.40  
       ES II (post 2000) 7% Solution   1.60  
       ES II (post 2000) Deferred Ratchet   1.30  
       ES II (post 2000) Max 5.5   1.55  
       ES II (post 2000) Max 7   1.80  
       ES II (post 2000) Quarterly Ratchet   1.50  
       ES II (post 2000) Standard   1.25  
       Generations-7% Solution   1.60  
 
 
 
143      

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

Series   Annual Rates
ING GoldenSelect (continued):        
      Generations-Deferred Ratchet   1.30   %
      Generations-Max 7   1.80    
      Generations-Quarterly Ratchet   1.50    
      Generations-Standard   1.25    
      Granite PrimElite-Annual Ratchet   1.25    
      Granite PrimElite-Standard   1.10    
      Landmark 5.5% Solution   1.65    
      Landmark 7% Solution   1.85    
      Landmark-Max 5.5   1.80    
      Landmark-Max 7   2.05    
      Landmark (pre April 2008) Quarterly Ratchet   1.75    
      Landmark (post April 2008) Quarterly Ratchet   1.80    
      Landmark-Standard   1.50    
      Legends Max 7   2.05    
      Legends Quarterly Ratchet   1.75    
      Legends-Standard   1.50    
      Opportunities 5.5% Solution   1.40    
      Opportunities 7% Solution   1.60    
      Opportunities-Max 5.5   1.55    
      Opportunities-Max 7   1.80    
      Opportunities-Quarterly Ratchet   1.50    
      Opportunities-Standard   1.25    
      Premium Plus (pre February 2000) 5.5% Solution   1.40    
      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) 7% Solution   1.65    
      Premium Plus (post 2000) 7% Solution   1.65    
      Premium Plus (post 2000) Annual Ratchet   1.55    
      Premium Plus (post January 2000) Max 5.5   1.55    
      Premium Plus (post 2000) Max 5.5   1.60    
      Premium Plus (post January 2000) Max 7   1.95    
      Premium Plus (post 2000) Max 7   1.95    
      Premium Plus (pre February 2000) Quarterly Ratchet   1.40    
      Premium Plus (post January 2000) Quarterly Ratchet   1.65    
      Premium Plus (post April 2008) Quarterly Ratchet   1.70    
      Premium Plus (pre February 2000) Standard   1.25    
      Premium Plus (post January 2000) Standard   1.30    
      Premium Plus (post 2000) Standard   1.40    
      VA Bonus Option I   1.30    
      VA Bonus Option II   1.60    
      VA Bonus Option III   1.75    
      VA Option I   0.80    
      VA Option II   1.10    
 
 
 
144        

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

Series   Annual Rates
ING GoldenSelect (continued):        
VA Option III   1.25   %
Value-Standard   0.75    
ING SmartDesign:        
Advantage Option I   1.50    
Advantage Option II   1.70    
Advantage Option III   1.85    
Signature Option I   1.10    
Signature Option II   1.30    
Signature Option III   1.45    
Simplicity Variable Annuity Years 1-10   2.00    
Simplicity Variable Annuity Years 11+   1.25    
Variable Annuity Option I   0.80    
Variable Annuity Option II   1.10    
Variable Annuity Option III   1.25    
Wells Fargo ING:        
Landmark-Max 7   2.05    
Landmark-Quarterly Ratchet   1.75    
Landmark-Standard   1.50    
Opportunities-Max 7   1.80    
Opportunities-Quarterly Ratchet   1.50    
Opportunities-Standard   1.25    

Asset Based Administrative Charges

A daily charge to cover administrative expenses of the Account 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
Access, Access One, Advantage, Architect, DVA Plus, ESII, Focus VA, Generations,
Granite PrimElite, Landmark, Legends, Premium Plus, Rollover Choice, Signature,
Opportunities Contracts, Variable Annuity, and Value.

Contract Maintenance Charges

An annual Contract fee may be deducted from the accumulation value of Contracts to
cover ongoing administrative expenses, as specified in the Contracts. The charge is $30
per Contract year for Generations, Opportunities, Landmark, Focus VA, Signature,
Legends, Simplicity, ES II, Value, Variable Annuity, 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.

                                                           145

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

Contingent Deferred Sales Charges

Under DVA 80, DVA, DVA Plus, Premium Plus, ES II, Value, Granite PrimElite,
Generations, Opportunities, Premium Plus, Focus VA, Signature, Legends, Simplicity,
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, as specified in the
Contract. 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   Architect
0          6 %          7 %          8 %          8 %          6 %          8 %
1   5   7   8   7   6   7
2   4   6   8   6   6   6
3   3   5   8   5   5   5
4   2   4   7   4   4   4
5   1   3   6   3   3   3
6   -   1   5   2   1   2
7   -   -   3   1   -   -
8   -   -   1   -   -   -
9+   -   -   -   -   -   -
 
Complete                        
Years Elapsed                        
Since Premium       Landmark   Signature   Rollover        
Payment   Advantage   & Legends   & VA   Choice   Focus VA   Simplicity
0          6 %          6 %          7 %          6 %          3 %          6 %
1   5   5   7   6   2   6
2   4   4   6   5   1   5
3   -   3   6   4   -   4
4   -   -   5   3   -   3
5   -   -   4   2   -   -
6   -   -   3   1   -   -
7   -   -   -   -   -   -
8   -   -   -   -   -   -
9+   -   -   -   -   -   -

Withdrawal and Distribution 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.

                                                          146

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

Deferred Sales Load

Under Contracts offered prior to October 1995, a sales load of up to 7.50% 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 4.00% of premiums.

Other Contract Charges

For certain Contracts, an additional annual charge of 0.50% is deducted daily from the
accumulation value for amounts invested in the ING GET U.S. Core Portfolio Funds.

Certain Contacts contain optional riders that are available for an additional charge, such
as minimum guaranteed income benefits and minimum guaranteed withdrawal benefits.
The amounts charged for these optional benefits vary based on a number of factors and
are defined in the Contracts.

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.

6. Related Party Transactions

During the year ended December 31, 2008, management and service fees were paid
indirectly to DSL, an affiliate of the Company, in its capacity as investment manager to
the ING Investors Trust and ING Partners, Inc. The Trust's advisory agreement provided
for a fee at annual rates up to 1.25% of the average net assets of each respective Fund.

                                                            147

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

In addition, management and service fees were paid to IIL, an affiliate of the Company, in
its capacity as investment adviser to the ING GET Fund, ING Mutual Funds, the ING
Variable Insurance Trust, ING VP Intermediate Bond Portfolio, ING Variable Portfolios,
Inc., ING Variable Funds, ING VP Balanced Portfolio, Inc., ING Strategic Allocation
Portfolio, Inc., and the ING Variable Products Trust. The Trusts' advisory agreement
provided for fees at annual rates up to 1.00% of the average net assets of each respective
Fund.

 

 

 



                                                             148

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                 

7. Purchases and Sales of Investment Securities

The aggregate cost of purchases and proceeds from sales of investments follow:

        Year ended December 31    
    2008   2007
    Purchases   Sales   Purchases   Sales
        (Dollars in thousands)    
AIM Variable Insurance Funds:                
     AIM V.I. Leisure Fund - Series I Shares   $ 5,460   $ 9,287   $ 3,723   $ 10,577
BlackRock Variable Series Funds, Inc.:                
     BlackRock Global Allocation V.I. Fund - Class III   462,235   8,747   -   -
Columbia Funds Variable Insurance Trust:                
     Columbia Asset Allocation Fund, Variable Series - Class A   83   268   202   56
     Columbia Federal Securities Fund, Variable Series - Class A   10   61   5   7
     Columbia Large Cap Growth Fund, Variable Series - Class A   4   41   2   138
     Columbia Small Cap Value Fund, Variable Series - Class B   25,549   53,705   37,052   77,725
     Columbia Small Company Growth Fund, Variable Series - Class A   9   4   8   11
Fidelity® Variable Insurance Products:                
     Fidelity® VIP Equity-Income Portfolio - Service Class 2   14,078   75,368   94,573   64,133
Fidelity® Variable Insurance Products II:                
     Fidelity® VIP Contrafund® Portfolio - Service Class 2   262,890   47,570   494,378   16,770
Franklin Templeton Variable Insurance Products Trust:                
     Franklin Small Cap Value Securities Fund - Class 2   3,617   1,023   4,816   880
ING GET Fund:                
     ING GET Fund - Series U   6,525   67,888   3,347   17,519
     ING GET Fund - Series V   1,734   95,602   2,553   28,380
ING Investors Trust:                
     ING AllianceBernstein Mid Cap Growth Portfolio - Service Class   84,249   82,272   81,882   88,756
     ING AllianceBernstein Mid Cap Growth Portfolio - Service 2 Class   3,687   2,613   2,600   3,207
     ING American Funds Asset Allocation Portfolio   177,850   5,324   -   -
     ING American Funds Bond Portfolio   292,667   23,012   -   -
     ING American Funds Growth Portfolio   526,537   100,328   335,806   67,464
     ING American Funds Growth-Income Portfolio   255,341   52,985   252,535   45,863
     ING American Funds International Portfolio   318,087   103,608   359,751   74,985
     ING American Funds World Allocation Portfolio - Service Class   12,742   -   -   -
     ING BlackRock Large Cap Growth Portfolio - Institutional Class   22   24   295   46
     ING BlackRock Large Cap Growth Portfolio - Service Class   42,774   26,286   24,621   26,064
     ING BlackRock Large Cap Value Portfolio - Service Class   2,353   12,580   14,177   28,046
     ING BlackRock Large Cap Value Portfolio - Service 2 Class   169   748   462   764
     ING Capital Guardian U.S. Equities Portfolio - Service Class   74,616   402,538   55,102   104,026
     ING Capital Guardian U.S. Equities Portfolio - Service 2 Class   1,408   7,429   1,047   2,864
     ING EquitiesPlus Portfolio - Service Class   13,132   89,447   11,590   29,416
     ING EquitiesPlus Portfolio - Service 2 Class   5   29   3   1
     ING Evergreen Health Sciences Portfolio - Service Class   79,448   45,673   38,104   33,264
     ING Evergreen Omega Portfolio - Service Class   6,738   3,505   1,147   4,046
     ING Evergreen Omega Portfolio - Service 2 Class   138   175   156   319
     ING FMRSM Diversified Mid Cap Portfolio - Service Class   103,642   119,041   467,133   133,555
     ING FMRSM Diversified Mid Cap Portfolio - Service 2 Class   4,848   6,298   10,747   5,068
     ING Focus 5 Portfolio - Service Class   140,022   25,345   101,857   -
     ING Franklin Income Portfolio - Service Class   155,140   75,651   224,438   38,169
     ING Franklin Income Portfolio - Service 2 Class   3,023   3,062   7,204   1,011

                                                                        149

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements
 
 
 
        Year ended December 31    
    2008   2007
    Purchases   Sales   Purchases   Sales
        (Dollars in thousands)    
ING Investors Trust (continued):                
    ING Franklin Mutual Shares Portfolio - Service Class   $ 65,467   $ 28,920   $ 204,420   $ 4,398
    ING Franklin Templeton Founding Strategy Portfolio - Service Class    492,796   18,058   535,915   4,503
    ING Global Real Estate Portfolio - Service Class   80,545   28,998   124,215   37,274
    ING Global Real Estate Portfolio - Service 2 Class   868   689   2,121   825
    ING Global Resources Portfolio - Service Class   421,367   147,634   272,020   90,148
    ING Global Resources Portfolio - Service 2 Class   11,695   6,598   7,846   5,230
    ING Global Technology Portfolio - Service Class   20,502   129,962   71,046   27,603
    ING Global Technology Portfolio - Service 2 Class   752   6,922   1,096   1,132
    ING International Growth Opportunities Portfolio - Service Class   32,797   25,479   28,930   39,214
    ING International Growth Opportunities Portfolio - Service 2 Class   2,841   1,356   2,066   1,451
    ING Janus Contrarian Portfolio - Service Class   212,297   95,135   617,139   35,685
    ING Janus Contrarian Portfolio - Service 2 Class   7,071   4,822   33,192   3,599
    ING JPMorgan Emerging Markets Equity Portfolio - Adviser Class   5,692   6,491   4,722   4,959
    ING JPMorgan Emerging Markets Equity Portfolio - Service Class   194,670   137,782   254,725   86,123
    ING JPMorgan Small Cap Core Equity Portfolio - Service Class   26,137   57,435   62,346   47,499
    ING JPMorgan Small Cap Core Equity Portfolio - Service 2 Class   4,246   7,319   6,219   5,480
    ING JPMorgan Value Opportunities Portfolio - Service Class   4,435   9,842   21,400   46,313
    ING JPMorgan Value Opportunities Portfolio - Service 2 Class   150   480   738   641
    ING Julius Baer Foreign Portfolio - Service Class   175,677   105,567   291,598   73,496
    ING Julius Baer Foreign Portfolio - Service 2 Class   9,062   6,716   9,827   5,781
    ING Legg Mason Value Portfolio - Service Class   70,988   69,259   42,917   83,929
    ING Legg Mason Value Portfolio - Service 2 Class   4,740   3,532   1,355   4,000
    ING LifeStyle Aggressive Growth Portfolio - Service Class   202,260   107,106   262,752   55,272
    ING LifeStyle Aggressive Growth Portfolio - Service 2 Class   1,685   961   2,914   1,049
    ING LifeStyle Conservative Portfolio - Service Class   129,382   2,041   -   -
    ING LifeStyle Growth Portfolio - Service Class   1,015,688   108,959   1,209,798   44,669
    ING LifeStyle Growth Portfolio - Service 2 Class   5,176   1,940   5,465   1,397
    ING LifeStyle Moderate Growth Portfolio - Service Class   806,416   75,181   844,710   36,571
    ING LifeStyle Moderate Growth Portfolio - Service 2 Class   5,419   4,133   12,303   1,073
    ING LifeStyle Moderate Portfolio - Service Class   691,487   58,437   432,628   60,064
    ING LifeStyle Moderate Portfolio - Service 2 Class   8,830   5,895   8,329   2,504
    ING Limited Maturity Bond Portfolio - Service Class   11,201   46,245   4,187   50,961
    ING Liquid Assets Portfolio - Service Class   1,802,623   520,982   956,760   616,912
    ING Liquid Assets Portfolio - Service 2 Class   47,711   15,633   26,157   17,375
    ING Lord Abbett Affiliated Portfolio - Service Class   14,922   24,861   7,398   41,793
    ING Lord Abbett Affiliated Portfolio - Service 2 Class   473   392   320   587
    ING Marsico Growth Portfolio - Service Class   41,610   115,684   59,561   129,662
    ING Marsico Growth Portfolio - Service 2 Class   782   2,841   1,546   3,275
    ING Marsico International Opportunities Portfolio - Service Class   111,810   58,445   133,976   42,848
    ING MFS Total Return Portfolio - Service Class   160,438   158,141   121,954   190,148

                                                                                                    150

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements
 
 
 
        Year ended December 31    
    2008   2007
    Purchases   Sales   Purchases   Sales
        (Dollars in thousands)    
ING Investors Trust (continued):                
      ING MFS Total Return Portfolio - Service 2 Class   $ 7,166   $ 7,224   $ 7,717   $ 8,874
      ING MFS Utilities Portfolio - Service Class   237,493   96,397   240,316   73,887
      ING Mid Cap Growth Portfolio - Service Class   336   343,788   3,888   107,689
      ING Mid Cap Growth Portfolio - Service Class 2   54   16,343   543   2,588
      ING Multi-Manager International Small Cap Portfolio - Class S   7,406   3,266   -   -
      ING Oppenheimer Active Asset Allocation Portfolio - Service Class   3,445   -   -   -
      ING Oppenheimer Main Street Portfolio® - Service Class   27,708   69,359   16,070   87,783
      ING Oppenheimer Main Street Portfolio® - Service 2 Class   218   586   261   742
      ING PIMCO Core Bond Portfolio - Service Class   1,404,422   242,657   360,595   68,752
      ING PIMCO Core Bond Portfolio - Service 2 Class   23,623   9,836   9,606   6,214
      ING PIMCO High Yield Portfolio - Service Class   65,473   165,112   157,253   202,364
      ING Pioneer Fund Portfolio - Service Class   6,336   18,710   12,794   23,015
      ING Pioneer Mid Cap Value Portfolio - Service Class   253,544   118,959   95,332   71,948
      ING T. Rowe Price Capital Appreciation Portfolio - Service Class   570,542   234,895   453,013   138,295
      ING T. Rowe Price Capital Appreciation Portfolio - Service 2 Class   14,096   15,260   16,922   12,392
      ING T. Rowe Price Equity Income Portfolio - Service Class   133,636   110,841   77,756   140,159
      ING T. Rowe Price Equity Income Portfolio - Service 2 Class   4,732   4,088   2,928   4,023
      ING Templeton Global Growth Portfolio - Service Class   27,229   57,387   43,057   57,169
      ING Templeton Global Growth Portfolio - Service 2 Class   531   1,949   1,000   1,240
      ING UBS U.S. Allocation Portfolio - Service Class   11,200   80,180   9,301   21,683
      ING UBS U.S. Allocation Portfolio - Service 2 Class   664   4,350   514   891
      ING Van Kampen Capital Growth Portfolio - Service Class   188,422   24,287   5,428   16,651
      ING Van Kampen Capital Growth Portfolio - Service 2 Class   191   13,877   1,041   2,185
      ING Van Kampen Global Franchise Portfolio - Service Class   57,998   61,094   76,970   65,025
      ING Van Kampen Global Franchise Portfolio - Service 2 Class   7,448   10,870   4,004   6,622
      ING Van Kampen Global Tactical Asset Allocation Portfolio - Service Class     3,034     371     -     -
      ING Van Kampen Growth and Income Portfolio - Service Class   84,673   106,437   84,032   155,280
      ING Van Kampen Growth and Income Portfolio - Service 2 Class   8,711   10,721   8,442   7,759
      ING Van Kampen Large Cap Growth Portfolio - Service Class   13,305   160,545   16,312   46,755
      ING Van Kampen Real Estate Portfolio - Service Class   111,200   151,448   151,181   315,522
      ING Van Kampen Real Estate Portfolio - Service 2 Class   5,570   5,348   6,733   6,152
      ING VP Index Plus International Equity Portfolio - Service Class   10,884   9,287   36,754   32,685
      ING VP Index Plus International Equity Portfolio - Service 2 Class   169   258   420   372
      ING Wells Fargo Disciplined Value Portfolio - Service Class   4,388   191,670   4,765   63,275
      ING Wells Fargo Disciplined Value Portfolio - Service 2 Class   85   3,794   169   573
      ING Wells Fargo Small Cap Disciplined Portfolio - Service Class   1,527   4,054   7,433   17,393
      ING Wells Fargo Small Cap Disciplined Portfolio - Service 2 Class   74   82   110   749
ING Mutual Funds:                
      ING Diversified International Fund - Class R   36   67   435   147
ING Partners, Inc.:                
      ING American Century Large Company Value Portfolio - Service Class     406     72     150     335
      ING American Century Small-Mid Cap Value Portfolio - Service Class     192     103     272     263
                         

151

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements
 
 
 
        Year ended December 31    
    2008   2007
    Purchases   Sales   Purchases   Sales
        (Dollars in thousands)    
ING Partners, Inc. (continued):                
    ING Baron Small Cap Growth Portfolio - Service Class   $ 92,006   $ 34,502   $ 115,531   $ 31,436
    ING Columbia Small Cap Value II Portfolio - Service Class   103,851   43,859   92,019   19,349
    ING Davis New York Venture Portfolio - Service Class   116,223   9,815   100,677   12,342
    ING JPMorgan International Portfolio - Service Class   96,935   179,019   64,519   49,081
    ING JPMorgan Mid Cap Value Portfolio - Service Class   38,474   10,410   3,134   5,102
    ING Legg Mason Partners Aggressive Growth Portfolio - Service Class   4,626   23,042   17,555   29,396
    ING Neuberger Berman Partners Portfolio - Service Class   1,410   25,782   9,293   41,308
    ING Neuberger Berman Regency Portfolio - Service Class   11,196   24,136   17,269   7,157
    ING OpCap Balanced Value Portfolio - Service Class   207   453   280   288
    ING Oppenheimer Global Portfolio - Initial Class   1,065   2,674   819   3,717
    ING Oppenheimer Global Portfolio - Service Class   50,521   18,723   64,752   13,406
    ING Oppenheimer Strategic Income Portfolio - Service Class   4,632   3,223   6,042   407
    ING PIMCO Total Return Portfolio - Service Class   5,467   1,043   2,005   471
    ING Solution 2015 Portfolio - Service Class   8,604   2,620   6,772   872
    ING Solution 2025 Portfolio - Service Class   7,218   748   4,644   775
    ING Solution 2035 Portfolio - Service Class   5,535   592   7,620   1,596
    ING Solution 2045 Portfolio - Service Class   946   109   1,082   287
    ING Solution Income Portfolio - Service Class   3,858   1,808   4,115   110
    ING T. Rowe Price Diversified Mid Cap Growth Portfolio - Service Class   2,844   385   1,632   496
    ING T. Rowe Price Growth Equity Portfolio - Service Class   31,668   15,930   37,862   6,192
    ING Templeton Foreign Equity Portfolio - Service Class   219,959   59,611   116,313   35,930
    ING Thornburg Value Portfolio - Initial Class   41   553   58   962
    ING Thornburg Value Portfolio - Service Class   260   4,726   17,774   12,351
    ING UBS U.S. Large Cap Equity Portfolio - Service Class   360   3,531   5,302   14,179
    ING UBS U.S. Small Cap Growth Portfolio - Service Class   24   2,378   6,985   9,526
    ING Van Kampen Comstock Portfolio - Service Class   37,574   28,902   37,158   20,355
    ING Van Kampen Equity and Income Portfolio - Initial Class   318   749   202   508
    ING Van Kampen Equity and Income Portfolio - Service Class   152,718   19,385   49,549   6,740
    ING Strategic Allocation Portfolios, Inc.:                
    ING VP Strategic Allocation Conservative Portfolio - Class S   476   204   1,025   303
    ING VP Strategic Allocation Growth Portfolio - Class S   516   81   376   216
    ING VP Strategic Allocation Moderate Portfolio - Class S   302   201   340   166
    ING Variable Funds:                
    ING VP Growth and Income Portfolio - Class I   2   6   150   1
    ING VP Growth and Income Portfolio - Class S   437,216   47,269   3,224   817

                                                                                              152

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements
 
 
 
        Year ended December 31    
    2008   2007
    Purchases   Sales   Purchases   Sales
        (Dollars in thousands)    
ING Variable Insurance Trust:                
      ING GET U.S. Core Portfolio - Series 1   $ 8,721   $ 70,895   $ 3,787   $ 21,554
      ING GET U.S. Core Portfolio - Series 2   5,479   49,073   2,179   15,740
      ING GET U.S. Core Portfolio - Series 3   3,210   9,057   1,669   22,086
      ING GET U.S. Core Portfolio - Series 4   5,225   7,268   2,236   15,884
      ING GET U.S. Core Portfolio - Series 5   4,308   5,202   1,814   6,192
      ING GET U.S. Core Portfolio - Series 6   3,941   4,739   2,202   6,458
      ING GET U.S. Core Portfolio - Series 7   2,963   3,461   1,157   7,473
      ING GET U.S. Core Portfolio - Series 8   1,723   1,943   698   1,348
      ING GET U.S. Core Portfolio - Series 9   1,549   1,059   492   2,999
      ING GET U.S. Core Portfolio - Series 10   1,134   737   352   2,872
      ING GET U.S. Core Portfolio - Series 11   1,803   1,160   504   2,575
      ING GET U.S. Core Portfolio - Series 12   854   981   169   904
      ING GET U.S. Core Portfolio - Series 13   2,661   13,597   330   19,308
      ING GET U.S. Core Portfolio - Series 14   2,064   14,458   109,043   22,771
      ING VP Global Equity Dividend Portfolio   7,969   48,546   7,474   13,183
ING Variable Portfolios, Inc.:                
      ING BlackRock Global Science and Technology Portfolio - Class S   157,195   21,941   615   132
      ING Global Equity Option Portfolio - Class S   1,984   31   -   -
      ING International Index Portfolio - Class S   9,607   1,711   -   -
      ING Lehman Brothers U.S. Aggregate Bond Index® Portfolio - Class S   214,981   41,744   -   -
      ING Opportunistic Large Cap Growth Portfolio - Class S   281   273   376   71
      ING Opportunistic Large Cap Value Portfolio - Class S   3,338   4,133   785   5,278
      ING Russell™ Global Large Cap Index 85% Portfolio - Class S   4,040   1,426   -   -
      ING Russell™ Large Cap Index Portfolio - Class S   38,457   10,460   -   -
      ING Russell™ Mid Cap Index Portfolio - Class S   33,357   3,426   -   -
      ING Russell™ Small Cap Index Portfolio - Class S   116,495   17,769   -   -
      ING VP Index Plus LargeCap Portfolio - Class S   103,292   94,213   145,502   55,366
      ING VP Index Plus MidCap Portfolio - Class S   40,631   54,718   76,612   57,405
      ING VP Index Plus SmallCap Portfolio - Class S   23,724   46,622   52,914   47,861
      ING VP Small Company Portfolio - Class S   65,062   11,441   1,293   402
      ING WisdomTreeSM Global High-Yielding Equity Index Portfolio - Class S   225,953   8,759   -   -
ING Variable Products Trust:                
      ING VP Financial Services Portfolio - Class S   25,307   77,734   26,586   33,157
      ING VP International Value Portfolio - Class S   6,021   1,879   8,085   1,127
      ING VP MidCap Opportunities Portfolio - Class S   355,725   33,335   497   5,968
      ING VP Real Estate Portfolio - Class S   2,671   9,129   5,536   1,712
      ING VP SmallCap Opportunities Portfolio - Class S   12,733   18,918   3,758   31,383
ING VP Balanced Portfolio, Inc.:                
      ING VP Balanced Portfolio - Class S   2,379   2,160   1,925   2,259
ING VP Intermediate Bond Portfolio:                
      ING VP Intermediate Bond Portfolio - Class S   484,837   220,106   515,699   73,908
Legg Mason Partners Variable Equity Trust:                
      Legg Mason Partners Variable International All Cap Opportunity Portfolio   2   31   53   40
      Legg Mason Partners Variable Investors Portfolio   7   44   270   92

153

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements
 
 
 
        Year ended December 31    
    2008   2007
    Purchases   Sales   Purchases   Sales
      (Dollars in thousands)  
Legg Mason Partners Variable Income Trust:          
      Legg Mason Partners Variable High Income Portfolio   $ 8   $ 36   $ 11   $ 30
      Legg Mason Partners Variable Money Market Portfolio   3   146   179   36
Oppenheimer Variable Account Funds:          
      Oppenheimer Main Street Small Cap Fund®/VA - Service Class   347   285   905   316
PIMCO Variable Insurance Trust:          
      PIMCO Real Return Portfolio - Administrative Class   7,725   1,642   1,468   441
Pioneer Variable Contracts Trust:          
      Pioneer Equity Income VCT Portfolio - Class II   5,223   1,571   10,344   1,468
      Pioneer Small Cap Value VCT Portfolio - Class II   665   915   1,620   1,756
ProFunds:          
      ProFund VP Bull   372   6,426   13,861   42,902
      ProFund VP Europe 30   2,885   4,958   950   10,594
      ProFund VP Rising Rates Opportunity   1,436   8,874   9,572   23,579
      ProFund VP Small-Cap   5,163   60,908   27,879   57,717
Wells Fargo Funds Trust:          
      Wells Fargo Advantage Asset Allocation Fund   287   411   132   390
      Wells Fargo Advantage C&B Large Cap Value Fund   7   113   9   70
      Wells Fargo Advantage Equity Income Fund   140   134   87   134
      Wells Fargo Advantage Large Company Growth Fund   21   458   18   420
      Wells Fargo Advantage Money Market Fund   2   86   10   197
      Wells Fargo Advantage Small Cap Growth Fund   189   140   139   142
      Wells Fargo Advantage Total Return Bond Fund   58   314   103   184

154

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

8. Changes in Units

The changes in units outstanding for the years ended December 31, 2008 and 2007 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        
        2008           2007    
    Units   Units   Net Increase   Units   Units   Net Increase
    Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
AIM Variable Insurance Funds:                        
AIM V.I. Leisure Fund - Series I Shares   104,608   859,682   (755,074)   49,589   690,018   (640,429)
BlackRock Variable Series Funds, Inc.:                        
BlackRock Global Allocation V.I. Fund - Class III   57,209,847   7,307,190   49,902,657   -   -   -
Columbia Funds Variable Insurance Trust:                        
Columbia Asset Allocation Fund, Variable Series - Class A   2,325   20,743   (18,418)   8,386   2,960   5,426
Columbia Federal Securities Fund, Variable Series - Class A   444   5,324   (4,880)   -   490   (490)
Columbia Large Cap Growth Fund, Variable Series - Class A   299   3,722   (3,423)   11   10,772   (10,761)
Columbia Small Cap Value Fund, Variable Series - Class B   179,657   3,140,307   (2,960,650)   246,895   3,607,340   (3,360,445)
Columbia Small Company Growth Fund, Variable Series - Class A   -   144   (144)   408   481   (73)
Fidelity® Variable Insurance Products:                        
Fidelity® VIP Equity-Income Portfolio - Service Class 2   3,214,538   8,981,668   (5,767,130)   7,286,695   7,379,935   (93,240)
Fidelity® Variable Insurance Products II:                        
Fidelity® VIP Contrafund® Portfolio - Service Class 2   38,407,606   22,732,411   15,675,195   22,564,754   5,226,744   17,338,010
Franklin Templeton Variable Insurance Products Trust:                        
Franklin Small Cap Value Securities Fund - Class 2   375,150   243,139   132,011   252,138   76,303   175,835
ING GET Fund:                        
ING GET Fund - Series U   8,133   6,231,221   (6,223,088)   27,785   1,429,250   (1,401,465)
ING GET Fund - Series V   83,696   9,515,895   (9,432,199)   41,719   2,662,149   (2,620,430)
ING Investors Trust:                        
ING AllianceBernstein Mid Cap Growth Portfolio - Service Class   4,875,586   7,856,182   (2,980,596)   4,146,546   5,263,128   (1,116,582)
ING AllianceBernstein Mid Cap Growth Portfolio - Service 2 Class   114,147   228,342   (114,195)   91,253   168,268   (77,015)
ING American Funds Asset Allocation Portfolio   23,895,240   3,215,712   20,679,528   -   -   -
ING American Funds Bond Portfolio   37,631,498   9,063,400   28,568,098   -   -   -
ING American Funds Growth Portfolio   66,078,373   41,512,481   24,565,892   29,789,417   11,277,886   18,511,531
 
 
 
    155                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

            Year ended December 31        
        2008           2007    
    Units   Units   Net Increase   Units   Units   Net Increase
    Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
ING Investors Trust (continued):                        
ING American Funds Growth-Income Portfolio   40,022,856   26,811,680   13,211,176   23,002,048   9,362,784   13,639,264
ING American Funds International Portfolio   32,644,018   24,864,560   7,779,458   21,450,539   7,509,459   13,941,080
ING American Funds World Allocation Portfolio - Service Class   1,475,870   29,257   1,446,613   -   -   -
ING BlackRock Large Cap Growth Portfolio - Institutional Class   3   2,895   (2,892)   29,431   4,521   24,910
ING BlackRock Large Cap Growth Portfolio - Service Class   5,752,600   5,400,606   351,994   3,392,317   3,299,104   93,213
ING BlackRock Large Cap Value Portfolio - Service Class   87,456   1,082,168   (994,712)   1,152,523   2,187,803   (1,035,280)
ING BlackRock Large Cap Value Portfolio - Service 2 Class   6,407   56,978   (50,571)   22,032   42,824   (20,792)
ING Capital Guardian U.S. Equities Portfolio - Service Class   2,193,027   41,270,183   (39,077,156)   1,477,514   8,501,643   (7,024,129)
ING Capital Guardian U.S. Equities Portfolio - Service 2 Class   12,493   571,686   (559,193)   16,799   160,582   (143,783)
ING EquitiesPlus Portfolio - Service Class   236,620   9,686,886   (9,450,266)   282,023   2,616,093   (2,334,070)
ING EquitiesPlus Portfolio - Service 2 Class   -   3,076   (3,076)   -   -   -
ING Evergreen Health Sciences Portfolio - Service Class   12,348,154   10,033,907   2,314,247   4,388,814   4,346,438   42,376
ING Evergreen Omega Portfolio - Service Class   780,203   450,969   329,234   123,710   372,983   (249,273)
ING Evergreen Omega Portfolio - Service 2 Class   919   15,342   (14,423)   12,926   25,954   (13,028)
ING FMRSM Diversified Mid Cap Portfolio - Service Class   15,533,608   20,806,130   (5,272,522)   32,919,896   11,062,186   21,857,710
ING FMRSM Diversified Mid Cap Portfolio - Service 2 Class   231,193   461,928   (230,735)   607,656   280,761   326,895
ING Focus 5 Portfolio - Service Class   20,714,284   7,849,841   12,864,443   9,998,724   415,746   9,582,978
ING Franklin Income Portfolio - Service Class   29,073,925   22,412,607   6,661,318   24,727,870   7,993,779   16,734,091
ING Franklin Income Portfolio - Service 2 Class   331,544   384,919   (53,375)   666,379   110,792   555,587
ING Franklin Mutual Shares Portfolio - Service Class   11,340,120   7,955,038   3,385,082   18,258,291   1,438,192   16,820,099
ING Franklin Templeton Founding Strategy Portfolio - Service Class   79,149,769   20,954,019   58,195,750   56,203,844   1,896,492   54,307,352
ING Global Real Estate Portfolio - Service Class   13,935,069   8,931,567   5,003,502   11,380,603   5,227,955   6,152,648
ING Global Real Estate Portfolio - Service 2 Class   95,994   79,211   16,783   157,514   68,894   88,620
ING Global Resources Portfolio - Service Class   17,080,043   13,531,849   3,548,194   8,192,476   4,611,641   3,580,835
ING Global Resources Portfolio - Service 2 Class   284,537   353,794   (69,257)   222,469   231,278   (8,809)
ING Global Technology Portfolio - Service Class   3,329,972   18,786,861   (15,456,889)   10,465,819   5,449,106   5,016,713
ING Global Technology Portfolio - Service 2 Class   14,954   454,103   (439,149)   69,329   71,773   (2,444)
ING International Growth Opportunities Portfolio - Service Class   347,675   2,195,689   (1,848,014)   50,536   2,561,047   (2,510,511)
 
 
 
 
    156                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

            Year ended December 31        
        2008           2007    
    Units   Units   Net Increase   Units   Units   Net Increase
    Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
ING Investors Trust (continued):                        
ING International Growth Opportunities Portfolio - Service 2 Class   24,951   85,424   (60,473)   897   64,326   (63,429)
ING Janus Contrarian Portfolio - Service Class   24,274,047   22,399,880   1,874,167   42,142,210   5,958,892   36,183,318
ING Janus Contrarian Portfolio - Service 2 Class   240,422   315,896   (75,474)   1,538,004   186,277   1,351,727
ING JPMorgan Emerging Markets Equity Portfolio - Adviser Class   182,330   313,840   (131,510)   223,981   229,731   (5,750)
ING JPMorgan Emerging Markets Equity Portfolio - Service Class   20,248,514   19,777,306   471,208   15,526,244   8,036,460   7,489,784
ING JPMorgan Small Cap Core Equity Portfolio - Service Class   2,331,586   6,052,262   (3,720,676)   5,325,143   4,871,239   453,904
ING JPMorgan Small Cap Core Equity Portfolio - Service 2 Class   66,112   531,318   (465,206)   269,344   332,299   (62,955)
ING JPMorgan Value Opportunities Portfolio - Service Class   243,112   1,134,143   (891,031)   1,835,681   4,012,744   (2,177,063)
ING JPMorgan Value Opportunities Portfolio - Service 2 Class   3,859   46,066   (42,207)   50,178   48,886   1,292
ING Julius Baer Foreign Portfolio - Service Class   18,699,161   18,683,200   15,961   17,231,773   7,734,483   9,497,290
ING Julius Baer Foreign Portfolio - Service 2 Class   302,000   479,674   (177,674)   378,723   350,120   28,603
ING Legg Mason Value Portfolio - Service Class   5,311,958   11,855,180   (6,543,222)   6,298,586   10,000,160   (3,701,574)
ING Legg Mason Value Portfolio - Service 2 Class   200,132   456,493   (256,361)   105,163   283,900   (178,737)
ING LifeStyle Aggressive Growth Portfolio - Service Class   20,081,738   20,886,430   (804,692)   23,531,119   10,921,006   12,610,113
ING LifeStyle Aggressive Growth Portfolio - Service 2 Class   119,492   82,910   36,582   194,362   69,860   124,502
ING LifeStyle Conservative Portfolio - Service Class   17,350,368   1,250,179   16,100,189   -   -   -
ING LifeStyle Growth Portfolio - Service Class   128,672,824   65,931,731   62,741,093   97,552,170   15,001,336   82,550,834
ING LifeStyle Growth Portfolio - Service 2 Class   393,960   164,843   229,117   394,425   112,425   282,000
ING LifeStyle Moderate Growth Portfolio - Service Class   108,054,957   55,553,992   52,500,965   72,004,448   12,849,674   59,154,774
ING LifeStyle Moderate Growth Portfolio - Service 2 Class   395,247   369,658   25,589   926,003   86,239   839,764
ING LifeStyle Moderate Portfolio - Service Class   90,761,793   39,182,323   51,579,470   42,883,011   14,146,466   28,736,545
ING LifeStyle Moderate Portfolio - Service 2 Class   774,140   616,897   157,243   643,331   194,029   449,302
ING Limited Maturity Bond Portfolio - Service Class   290,597   2,356,870   (2,066,273)   74,412   2,373,798   (2,299,386)
ING Liquid Assets Portfolio - Service Class   318,256,889   235,944,081   82,312,808   93,757,034   71,823,815   21,933,219
ING Liquid Assets Portfolio - Service 2 Class   10,022,475   6,984,421   3,038,054   2,815,522   2,022,559   792,963
ING Lord Abbett Affiliated Portfolio - Service Class   289,874   2,329,501   (2,039,627)   528,161   3,255,802   (2,727,641)
ING Lord Abbett Affiliated Portfolio - Service 2 Class   3,898   29,418   (25,520)   13,870   33,636   (19,766)
ING Marsico Growth Portfolio - Service Class   9,714,966   13,856,667   (4,141,701)   6,373,439   9,569,402   (3,195,963)
ING Marsico Growth Portfolio - Service 2 Class   99,590   230,242   (130,652)   143,040   213,203   (70,163)
ING Marsico International Opportunities Portfolio - Service Class   11,123,956   9,422,714   1,701,242   9,007,048   4,378,693   4,628,355
 
 
 
    157                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

            Year ended December 31        
        2008           2007    
    Units   Units   Net Increase   Units   Units   Net Increase
    Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
ING Investors Trust (continued):                        
ING MFS Total Return Portfolio - Service Class   7,594,899   12,608,231   (5,013,332)   3,905,441   8,874,134   (4,968,693)
ING MFS Total Return Portfolio - Service 2 Class   129,192   614,062   (484,870)   329,807   644,535   (314,728)
ING MFS Utilities Portfolio - Service Class   23,836,751   19,922,925   3,913,826   16,858,864   7,663,895   9,194,969
ING Mid Cap Growth Portfolio - Service Class   154,164   15,313,207   (15,159,043)   453,203   4,190,342   (3,737,139)
ING Mid Cap Growth Portfolio - Service Class 2   5,852   1,271,771   (1,265,919)   50,146   161,152   (111,006)
ING Multi-Manager International Small Cap Portfolio - Class S   969,332   475,485   493,847   -   -   -
ING Oppenheimer Active Asset Allocation Portfolio - Service Class   427,911   16,299   411,612   -   -   -
ING Oppenheimer Main Street Portfolio® - Service Class   2,667,157   4,848,712   (2,181,555)   1,086,370   3,823,715   (2,737,345)
ING Oppenheimer Main Street Portfolio® - Service 2 Class   11,717   43,757   (32,040)   17,382   43,427   (26,045)
ING PIMCO Core Bond Portfolio - Service Class   148,312,824   68,903,229   79,409,595   32,180,852   11,423,159   20,757,693
ING PIMCO Core Bond Portfolio - Service 2 Class   2,422,074   1,361,491   1,060,583   874,413   626,201   248,212
ING PIMCO High Yield Portfolio - Service Class   7,328,265   19,504,693   (12,176,428)   14,830,119   21,624,655   (6,794,536)
ING Pioneer Fund Portfolio - Service Class   637,444   2,057,989   (1,420,545)   1,488,496   2,393,316   (904,820)
ING Pioneer Mid Cap Value Portfolio - Service Class   28,952,917   20,716,105   8,236,812   8,950,069   9,108,794   (158,725)
ING T. Rowe Price Capital Appreciation Portfolio - Service Class   28,597,491   24,119,335   4,478,156   13,154,544   7,974,624   5,179,920
ING T. Rowe Price Capital Appreciation Portfolio - Service 2 Class   301,468   1,194,157   (892,689)   423,559   863,366   (439,807)
ING T. Rowe Price Equity Income Portfolio - Service Class   7,655,742   9,493,239   (1,837,497)   3,558,971   5,826,295   (2,267,324)
ING T. Rowe Price Equity Income Portfolio - Service 2 Class   186,781   364,938   (178,157)   115,777   246,775   (130,998)
ING Templeton Global Growth Portfolio - Service Class   3,095,739   4,953,235   (1,857,496)   3,345,705   3,805,315   (459,610)
ING Templeton Global Growth Portfolio - Service 2 Class   30,067   137,053   (106,986)   50,309   67,133   (16,824)
ING UBS U.S. Allocation Portfolio - Service Class   30,820   8,014,724   (7,983,904)   75,621   1,903,072   (1,827,451)
ING UBS U.S. Allocation Portfolio - Service 2 Class   8,531   360,602   (352,071)   2,104   58,309   (56,205)
ING Van Kampen Capital Growth Portfolio - Service Class   16,999,139   4,838,809   12,160,330   477,340   1,413,198   (935,858)
ING Van Kampen Capital Growth Portfolio - Service 2 Class   18,672   907,281   (888,609)   44,342   134,547   (90,205)
ING Van Kampen Global Franchise Portfolio - Service Class   6,603,917   8,484,047   (1,880,130)   6,554,668   6,017,138   537,530
ING Van Kampen Global Franchise Portfolio - Service 2 Class   151,446   779,421   (627,975)   186,901   391,454   (204,553)
ING Van Kampen Global Tactical Asset Allocation Portfolio - Service                        
Class   376,816   58,534   318,282   -   -   -
ING Van Kampen Growth and Income Portfolio - Service Class   3,960,823   6,953,624   (2,992,801)   2,255,192   5,781,347   (3,526,155)
ING Van Kampen Growth and Income Portfolio - Service 2 Class   216,645   833,877   (617,232)   241,010   483,252   (242,242)
ING Van Kampen Large Cap Growth Portfolio - Service Class   1,621,728   16,537,045   (14,915,317)   2,173,506   4,749,350   (2,575,844)
 
 
    158                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

            Year ended December 31        
        2008           2007    
    Units   Units   Net Increase   Units   Units   Net Increase
    Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
ING Investors Trust (continued):                        
ING Van Kampen Real Estate Portfolio - Service Class   1,895,100   4,168,239   (2,273,139)   2,200,314   5,656,024   (3,455,710)
ING Van Kampen Real Estate Portfolio - Service 2 Class   99,116   313,390   (214,274)   162,695   276,870   (114,175)
ING VP Index Plus International Equity Portfolio - Service Class   316,780   1,041,046   (724,266)   3,523,727   2,966,888   556,839
ING VP Index Plus International Equity Portfolio - Service 2 Class   1,387   22,864   (21,477)   31,966   26,632   5,334
ING Wells Fargo Disciplined Value Portfolio - Service Class   495,396   9,464,345   (8,968,949)   364,639   2,653,205   (2,288,566)
ING Wells Fargo Disciplined Value Portfolio - Service 2 Class   1,754   290,581   (288,827)   10,864   32,408   (21,544)
ING Wells Fargo Small Cap Disciplined Portfolio - Service Class   49,110   449,683   (400,573)   871,831   1,703,447   (831,616)
ING Wells Fargo Small Cap Disciplined Portfolio - Service 2 Class   419   7,989   (7,570)   10,381   65,860   (55,479)
ING Mutual Funds:                        
ING Diversified International Fund - Class R   1,357   6,179   (4,822)   41,018   14,524   26,494
ING Partners, Inc.:                        
ING American Century Large Company Value Portfolio - Service Class   12,181   6,516   5,665   6,241   23,235   (16,994)
ING American Century Small-Mid Cap Value Portfolio - Service Class   8,498   6,369   2,129   10,345   14,993   (4,648)
ING Baron Small Cap Growth Portfolio - Service Class   14,185,144   9,097,198   5,087,946   10,615,603   4,068,626   6,546,977
ING Columbia Small Cap Value II Portfolio - Service Class   18,865,474   12,373,074   6,492,400   10,796,437   3,737,600   7,058,837
ING Davis New York Venture Portfolio - Service Class   17,588,696   6,274,019   11,314,677   10,139,826   2,365,738   7,774,088
ING JPMorgan International Portfolio - Service Class   1,116,856   10,663,229   (9,546,373)   4,668,459   3,781,283   887,176
ING JPMorgan Mid Cap Value Portfolio - Service Class   4,500,990   1,905,326   2,595,664   247,695   430,579   (182,884)
ING Legg Mason Partners Aggressive Growth Portfolio - Service Class   1,110,284   2,547,033   (1,436,749)   2,222,837   2,867,147   (644,310)
ING Neuberger Berman Partners Portfolio - Service Class   515,915   2,985,982   (2,470,067)   388,810   3,835,983   (3,447,173)
ING Neuberger Berman Regency Portfolio - Service Class   1,543,565   2,816,360   (1,272,795)   1,903,238   939,755   963,483
ING OpCap Balanced Value Portfolio - Service Class   4,127   54,033   (49,906)   15,254   22,040   (6,786)
ING Oppenheimer Global Portfolio - Initial Class   34,824   244,888   (210,064)   25,562   263,881   (238,319)
ING Oppenheimer Global Portfolio - Service Class   5,982,499   4,603,003   1,379,496   5,060,340   1,995,229   3,065,111
ING Oppenheimer Strategic Income Portfolio - Service Class   591,212   539,474   51,738   537,568   59,995   477,573
ING PIMCO Total Return Portfolio - Service Class   508,319   181,381   326,938   175,876   49,256   126,620
ING Solution 2015 Portfolio - Service Class   807,195   292,478   514,717   606,041   118,452   487,589
ING Solution 2025 Portfolio - Service Class   697,835   106,385   591,450   376,979   68,156   308,823
ING Solution 2035 Portfolio - Service Class   421,452   36,400   385,052   614,276   145,947   468,329
 
 
 
 
    159                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

            Year ended December 31        
        2008           2007    
    Units   Units   Net Increase   Units   Units   Net Increase
    Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
ING Partners, Inc. (continued):                        
ING Solution 2045 Portfolio - Service Class   79,705   10,611   69,094   85,663   25,557   60,106
ING Solution Income Portfolio - Service Class   352,910   179,167   173,743   371,396   15,267   356,129
ING T. Rowe Price Diversified Mid Cap Growth Portfolio - Service                        
Class   173,642   38,243   135,399   92,840   40,400   52,440
ING T. Rowe Price Growth Equity Portfolio - Service Class   4,856,598   3,124,542   1,732,056   3,927,246   912,915   3,014,331
ING Templeton Foreign Equity Portfolio - Service Class   23,495,762   10,533,852   12,961,910   10,843,184   4,355,628   6,487,556
ING Thornburg Value Portfolio - Initial Class   12,370   70,971   (58,601)   23,570   107,590   (84,020)
ING Thornburg Value Portfolio - Service Class   66,473   494,495   (428,022)   1,767,400   1,252,554   514,846
ING UBS U.S. Large Cap Equity Portfolio - Service Class   74,285   364,563   (290,278)   536,086   1,188,444   (652,358)
ING UBS U.S. Small Cap Growth Portfolio - Service Class   77,036   333,748   (256,712)   716,057   976,619   (260,562)
ING Van Kampen Comstock Portfolio - Service Class   4,752,673   5,122,227   (369,554)   3,683,459   2,777,229   906,230
ING Van Kampen Equity and Income Portfolio - Initial Class   4,321   66,669   (62,348)   653   38,605   (37,952)
ING Van Kampen Equity and Income Portfolio - Service Class   15,369,468   5,160,161   10,209,307   4,313,892   1,149,257   3,164,635
ING Strategic Allocation Portfolios, Inc.:                        
ING VP Strategic Allocation Conservative Portfolio - Class S   22,249   15,008   7,241   66,377   20,091   46,286
ING VP Strategic Allocation Growth Portfolio - Class S   24,916   4,989   19,927   19,553   12,080   7,473
ING VP Strategic Allocation Moderate Portfolio - Class S   12,127   13,804   (1,677)   18,075   9,633   8,442
ING Variable Funds:                        
ING VP Growth and Income Portfolio - Class I   68   477   (409)   15,093   27   15,066
ING VP Growth and Income Portfolio - Class S   54,369,875   10,094,718   44,275,157   231,814   53,562   178,252
ING Variable Insurance Trust:                        
ING GET U.S. Core Portfolio - Series 1   116,698   6,726,948   (6,610,250)   68,048   1,839,469   (1,771,421)
ING GET U.S. Core Portfolio - Series 2   141,695   4,918,370   (4,776,675)   11,269   1,371,451   (1,360,182)
ING GET U.S. Core Portfolio - Series 3   99,250   896,367   (797,117)   461,393   2,478,009   (2,016,616)
ING GET U.S. Core Portfolio - Series 4   132,927   737,417   (604,490)   659,129   2,023,924   (1,364,795)
ING GET U.S. Core Portfolio - Series 5   30,371   435,448   (405,077)   313,238   787,386   (474,148)
ING GET U.S. Core Portfolio - Series 6   15,244   432,401   (417,157)   140,486   669,356   (528,870)
ING GET U.S. Core Portfolio - Series 7   71,084   381,434   (310,350)   113,190   750,603   (637,413)
ING GET U.S. Core Portfolio - Series 8   58,893   230,012   (171,119)   3,065   104,812   (101,747)
ING GET U.S. Core Portfolio - Series 9   27,518   117,771   (90,253)   5,684   258,939   (253,255)
ING GET U.S. Core Portfolio - Series 10   93,484   153,870   (60,386)   10,278   253,221   (242,943)
 
 
    160                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

            Year ended December 31        
        2008           2007    
    Units   Units   Net Increase   Units   Units   Net Increase
    Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
ING Variable Insurance Trust (continued):                        
ING GET U.S. Core Portfolio - Series 11   26,699   121,272   (94,573)   207,824   427,490   (219,666)
ING GET U.S. Core Portfolio - Series 12   3,294   91,027   (87,733)   12,091   83,121   (71,030)
ING GET U.S. Core Portfolio - Series 13   2,187,257   3,476,413   (1,289,156)   18,043   1,797,294   (1,779,251)
ING GET U.S. Core Portfolio - Series 14   574,041   1,850,938   (1,276,897)   9,914,485   1,254,365   8,660,120
ING VP Global Equity Dividend Portfolio   13,743   5,509,267   (5,495,524)   35,219   1,319,249   (1,284,030)
ING Variable Portfolios, Inc.:                        
ING BlackRock Global Science and Technology Portfolio - Class S   19,307,804   5,970,899   13,336,905   41,686   10,858   30,828
ING Global Equity Option Portfolio - Class S   269,308   8,647   260,661   -   -   -
ING International Index Portfolio - Class S   1,344,546   346,297   998,249   -   -   -
ING Lehman Brothers U.S. Aggregate Bond Index® Portfolio - Class S   26,307,158   8,888,992   17,418,166   -   -   -
ING Opportunistic Large Cap Growth Portfolio - Class S   24,035   24,639   (604)   28,426   6,159   22,267
ING Opportunistic Large Cap Value Portfolio - Class S   76,054   482,859   (406,805)   74,779   474,964   (400,185)
ING Russell™ Global Large Cap Index 85% Portfolio - Class S   559,291   224,391   334,900   -   -   -
ING Russell™ Large Cap Index Portfolio - Class S   5,347,374   1,928,900   3,418,474   -   -   -
ING Russell™ Mid Cap Index Portfolio - Class S   4,727,979   1,024,428   3,703,551   -   -   -
ING Russell™ Small Cap Index Portfolio - Class S   14,797,236   4,654,693   10,142,543   -   -   -
ING VP Index Plus LargeCap Portfolio - Class S   9,830,865   11,570,172   (1,739,307)   14,794,359   6,908,813   7,885,546
ING VP Index Plus MidCap Portfolio - Class S   3,015,661   6,163,391   (3,147,730)   6,575,887   6,157,291   418,596
ING VP Index Plus SmallCap Portfolio - Class S   2,437,053   5,151,198   (2,714,145)   4,376,954   5,000,708   (623,754)
ING VP Small Company Portfolio - Class S   8,414,905   2,700,247   5,714,658   60,397   29,488   30,909
ING WisdomTreeSM Global High-Yielding Equity Index Portfolio -                        
Class S   29,686,496   5,744,115   23,942,381   -   -   -
ING Variable Products Trust:                        
ING VP Financial Services Portfolio - Class S   3,145,142   9,261,640   (6,116,498)   2,574,858   3,362,250   (787,392)
ING VP International Value Portfolio - Class S   308,055   200,121   107,934   356,474   103,828   252,646
ING VP MidCap Opportunities Portfolio - Class S   39,227,782   7,465,272   31,762,510   65,351   627,961   (562,610)
ING VP Real Estate Portfolio - Class S   142,755   742,451   (599,696)   380,145   172,000   208,145
ING VP SmallCap Opportunities Portfolio - Class S   576,329   2,931,439   (2,355,110)   801,987   3,753,438   (2,951,451)
ING VP Balanced Portfolio, Inc.:                        
ING VP Balanced Portfolio - Class S   154,763   244,970   (90,207)   151,904   245,344   (93,440)
 
 
 
    161                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

            Year ended December 31        
        2008           2007    
    Units   Units   Net Increase   Units   Units   Net Increase
    Issued   Redeemed   (Decrease)   Issued   Redeemed   (Decrease)
ING VP Intermediate Bond Portfolio:                        
ING VP Intermediate Bond Portfolio - Class S   72,084,714   56,248,042   15,836,672   51,657,398   15,860,782   35,796,616
Legg Mason Partners Variable Equity Trust:                        
Legg Mason Partners Variable International All Cap Opportunity                        
Portfolio   41   1,863   (1,822)   29   2,145   (2,116)
Legg Mason Partners Variable Investors Portfolio   438   5,875   (5,437)   26,328   8,991   17,337
Legg Mason Partners Variable Income Trust:                        
Legg Mason Partners Variable High Income Portfolio   13   2,153   (2,140)   44   1,624   (1,580)
Legg Mason Partners Variable Money Market Portfolio   700   11,400   (10,700)   13,241   2,667   10,574
Oppenheimer Variable Account Funds:                        
Oppenheimer Main Street Small Cap Fund®/VA - Service Class   18,190   17,432   758   45,506   17,822   27,684
PIMCO Variable Insurance Trust:                        
PIMCO Real Return Portfolio - Administrative Class   787,873   264,788   523,085   140,529   48,748   91,781
Pioneer Variable Contracts Trust:                        
Pioneer Equity Income VCT Portfolio - Class II   424,102   242,777   181,325   633,970   153,393   480,577
Pioneer Small Cap Value VCT Portfolio - Class II   42,454   140,795   (98,341)   45,038   179,382   (134,344)
ProFunds:                        
ProFund VP Bull   241,994   947,511   (705,517)   1,643,998   4,462,811   (2,818,813)
ProFund VP Europe 30   50,496   485,032   (434,536)   27,228   833,461   (806,233)
ProFund VP Rising Rates Opportunity   248,601   1,391,333   (1,142,732)   1,493,646   3,380,268   (1,886,622)
ProFund VP Small-Cap   287,439   5,413,204   (5,125,765)   1,807,007   4,774,204   (2,967,197)
Wells Fargo Funds Trust:                        
Wells Fargo Advantage Asset Allocation Fund   1,340   32,662   (31,322)   412   26,763   (26,351)
Wells Fargo Advantage C&B Large Cap Value Fund   298   9,273   (8,975)   236   4,255   (4,019)
Wells Fargo Advantage Equity Income Fund   2,424   13,327   (10,903)   147   7,839   (7,692)
Wells Fargo Advantage Large Company Growth Fund   4,152   48,046   (43,894)   1,775   32,803   (31,028)
Wells Fargo Advantage Money Market Fund   -   8,122   (8,122)   -   18,720   (18,720)
Wells Fargo Advantage Small Cap Growth Fund   372   9,704   (9,332)   166   8,000   (7,834)
Wells Fargo Advantage Total Return Bond Fund   2   26,260   (26,258)   3,957   15,062   (11,105)
 
 
 
 
    162                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
9.   Unit Summary            
 
 
    Division/Contract   Units   Unit Value   Extended Value
    AIM V.I. Leisure Fund - Series I Shares            
    Contracts in accumulation period:            
    Band 4   4,742.952   $ 7.95   $ 37,706
    Band 5   6,468.665                            7.92   51,232
    Band 6   267,247.389                            7.87   2,103,237
    Band 7   301,705.626                            7.84   2,365,372
    Band 8   64,491.267                            7.79   502,387
    Band 9   33,109.303                            7.76   256,928
    Band 10   251,551.788                            7.74   1,947,011
    Band 11   82,780.105                            7.71   638,235
    Band 12   109,827.602                            7.69   844,574
    Band 13   178,444.804                            7.66   1,366,887
    Band 14   315,814.631                            7.61   2,403,349
    Band 15   83,040.546                            7.58   629,447
    Band 16   4,902.420                            7.53   36,915
    Band 17   187,576.807                            7.50   1,406,826
    Band 18   1,547.001                            7.48   11,572
    Band 19   45,659.264                            7.43   339,248
    Band 20   221,649.320                            7.63   1,691,184
    Band 21   30,155.943                            7.56   227,979
    Band 26   11,818.298                            8.11   95,846
    Band 27   13,508.906                            7.95   107,396
    Band 28   403.891                            7.87   3,179
    Band 29   16,489.846                            7.84   129,280
    Band 30   12,158.036                            7.68   93,374
    Band 31   3,826.083                            7.61   29,116
    Band 32   445.983                            7.46   3,327
    Band 34   817.385                            7.28   5,951
    Band 41   7,777.692                            7.89   61,366
    Band 42   1,886.347                            7.81   14,732
    Band 43   14,291.781                            7.75   110,761
    Band 45   1,899.865                            6.80   12,919
    Band 46   43,212.524                            6.57   283,906
    Band 47   8,571.531                            6.53   55,972
        2,327,823.601       $ 17,867,214

163

 ING USA ANNUITY AND LIFE INSURANCE COMPANY
 SEPARATE ACCOUNT B
Notes to Financial Statements
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   BlackRock Global Allocation V.I. Fund - Class III            
                   Contracts in accumulation period:            
                   Band 2   8,355.500   $ 8.02   $ 67,011
                   Band 4   19,888.089                            8.00   159,105
                   Band 5   5,483.069                            8.00   43,865
                   Band 6   5,658,471.677                            7.99   45,211,189
                   Band 7   1,398,127.123                            7.99   11,171,036
                   Band 8   3,029,922.707                            7.98   24,178,783
                   Band 9   99,300.657                            7.98   792,419
                   Band 10   14,862,682.360                            7.98   118,604,205
                   Band 11   1,684,293.624                            7.97   13,423,820
                   Band 12   167,445.465                            7.97   1,334,540
                   Band 13   2,906,934.491                            7.97   23,168,268
                   Band 14   2,686,180.582                            7.96   21,381,997
                   Band 15   4,810,195.451                            7.96   38,289,156
                   Band 16   323,318.190                            7.95   2,570,380
                   Band 17   3,501,780.443                            7.95   27,839,155
                   Band 18   6,638.649                            7.95   52,777
                   Band 19   122,021.433                            7.94   968,850
                   Band 20   1,238,981.213                            7.97   9,874,680
                   Band 21   130,423.786                            7.96   1,038,173
                   Band 26   157,682.953                            8.02   1,264,617
                   Band 27   32,380.386                            8.00   259,043
                   Band 28   219.205                            7.99   1,751
                   Band 29   144,330.733                            7.99   1,153,203
                   Band 30   29,713.794                            7.97   236,819
                   Band 31   17,229.101                            7.96   137,144
                   Band 34   10,017.043                            7.92   79,335
                   Band 38   138,659.517                            8.02   1,112,049
                   Band 41   2,681.829                            7.97   21,374
                   Band 43   89,906.036                            7.95   714,753
                   Band 45   1,211.413                            7.92   9,594
                   Band 46   3,862,644.533                            7.94   30,669,398
                   Band 47   868,355.783                            7.94   6,894,745
                   Band 50   3,871.173                            7.97   30,853
                   Band 55   1,451.509                            7.98   11,583
                   Band 56   1,838,877.576                            8.01   14,729,409
                   Band 57   22,562.738                            7.97   179,825
                   Band 59   9,878.613                            7.94   78,436
                   Band 60   10,538.377                            7.98   84,096
    49,902,656.821       $ 397,837,436
 
 
 
 
                                                             164            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   Columbia Asset Allocation Fund, Variable Series -            
                       Class A            
                   Contracts in accumulation period:            
                   Band 6   667.658   $ 11.45   $ 7,645
                   Band 7   13,135.132   11.42   150,003
                   Band 8   3,321.125   11.35   37,695
                   Band 9   3,753.571   11.32   42,490
                   Band 11   1,169.047   11.25   13,152
                   Band 13   940.899   11.19   10,529
    22,987.432       $ 261,514
                   Columbia Federal Securities Fund, Variable Series -            
                       Class A            
                   Contracts in accumulation period:            
                   Band 7   1,824.374   $ 11.93   $ 21,765
                   Band 13   423.964   11.69   4,956
    2,248.338       $ 26,721
                   Columbia Large Cap Growth Fund, Variable Series -            
                       Class A            
                   Contracts in accumulation period:            
                   Band 6   1,967.151   $ 7.67   $ 15,088
                   Band 7   23,763.492   7.66   182,028
                   Band 9   1,668.272   7.61   12,696
                   Band 11   1,020.021   7.58   7,732
                   Band 13   3,532.037   7.55   26,667
                   Band 14   1,802.213   7.52   13,553
    33,753.186       $ 257,764
                   Columbia Small Cap Value Fund, Variable Series -            
                       Class B            
                   Contracts in accumulation period:            
                   Band 2   1,770.705   $ 9.24   $ 16,361
                   Band 4   9,229.941   14.06   129,773
                   Band 5   12,823.214   14.02   179,781
                   Band 6   1,517,241.636   13.94   21,150,348
                   Band 7   1,030,404.839   13.90   14,322,627
                   Band 8   489,524.074   13.82   6,765,223
                   Band 9   51,903.561   13.78   715,231
                   Band 10   1,247,387.731   13.74   17,139,107
                   Band 11   434,602.599   13.70   5,954,056
                   Band 12   195,677.623   13.66   2,672,956
                   Band 13   490,206.035   13.62   6,676,606
                   Band 14   1,667,317.663   13.54   22,575,481
                   Band 15   464,505.745   13.51   6,275,473
                   Band 16   57,651.473   13.43   774,259
                   Band 17   1,052,464.286   13.39   14,092,497
                   Band 18   13,136.255   13.35   175,369
                   Band 19   64,510.565   13.27   856,055
                   Band 20   1,007,368.823   13.58   13,680,069
                   Band 21   77,471.702   13.47   1,043,544
                   Band 26   27,505.082   9.25   254,422

165

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   Columbia Small Cap Value Fund, Variable Series -            
                       Class B (continued)            
                   Band 27   10,980.998   $ 9.15   $ 100,476
                   Band 28   1,152.898   9.10   10,491
                   Band 29   21,383.735   9.08   194,164
                   Band 30   11,727.516   8.98   105,313
                   Band 31   7,124.563   8.93   63,622
                   Band 41   1,198.618   8.98   10,764
                   Band 42   2,130.389   8.92   19,003
                   Band 43   7,295.697   8.87   64,713
                   Band 44   3,154.946   8.75   27,606
                   Band 46   650,445.265   8.29   5,392,191
                   Band 47   40,940.471   8.24   337,349
    10,670,238.648       $ 141,774,930
                   Columbia Small Company Growth Fund, Variable            
                       Series - Class A            
                   Contracts in accumulation period:            
                   Band 6   1,431.655   $ 12.07   $ 17,280
                   Band 7   480.446   12.03   5,780
                   Band 8   1,252.464   11.96   14,979
                   Band 13   1,104.454   11.79   13,022
    4,269.019       $ 51,061
                   Fidelity® VIP Equity-Income Portfolio - Service            
                       Class 2            
                   Contracts in accumulation period:            
                   Band 2   4,363.889   $ 7.87   $ 34,344
                   Band 3   1,720.149   7.66   13,176
                   Band 4   138,149.150   7.72   1,066,511
                   Band 5   88,690.782   7.69   682,032
                   Band 6   3,016,228.364   7.63   23,013,822
                   Band 7   1,938,739.708   7.61   14,753,809
                   Band 8   1,074,632.971   7.55   8,113,479
                   Band 9   324,938.967   7.52   2,443,541
                   Band 10   2,321,019.263   7.49   17,384,434
                   Band 11   667,353.129   7.46   4,978,454
                   Band 12   530,273.351   7.43   3,939,931
                   Band 13   1,236,481.351   7.41   9,162,327
                   Band 14   2,619,458.761   7.35   19,253,022
                   Band 15   901,575.958   7.32   6,599,536
                   Band 16   137,248.612   7.27   997,797
                   Band 17   1,720,702.470   7.24   12,457,886
                   Band 18   33,114.483   7.21   238,755
                   Band 19   127,692.732   7.16   914,280
                   Band 20   1,385,760.259   7.38   10,226,911
                   Band 21   270,877.495   7.29   1,974,697
                   Band 25   10,215.190   7.93   81,006
                   Band 26   401,729.066   7.90   3,173,660

166

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   Fidelity® VIP Equity-Income Portfolio - Service            
                       Class 2 (continued)            
                   Band 27   154,128.876   $ 7.72   $ 1,189,875
                   Band 28   27,415.397   7.63   209,179
                   Band 29   408,019.459   7.60   3,100,948
                   Band 30   172,300.172   7.43   1,280,190
                   Band 31   122,027.041   7.35   896,899
                   Band 32   3,551.209   7.19   25,533
                   Band 33   348.631   7.08   2,468
                   Band 34   917.503   7.00   6,423
                   Band 35   289,513.207   8.02   2,321,896
                   Band 36   25,504.849   7.90   201,488
                   Band 37   32,252.793   7.81   251,894
                   Band 38   622,078.465   9.10   5,660,914
                   Band 39   97,875.854   9.00   880,883
                   Band 40   40,919.858   8.93   365,414
                   Band 41   28,951.402   8.39   242,902
                   Band 42   28,136.543   8.30   233,533
                   Band 43   124,508.892   8.23   1,024,708
                   Band 44   426.773   7.23   3,086
                   Band 45   25,291.028   7.13   180,325
                   Band 46   908,790.136   6.82   6,197,949
                   Band 47   176,414.059   6.78   1,196,087
                   Band 51   676.377   6.42   4,342
                   Band 55   1,302.959   6.52   8,495
                   Band 56   16,734.973   6.01   100,577
    22,259,052.556       $ 167,089,418
                   Fidelity® VIP Contrafund® Portfolio - Service            
                       Class 2            
                   Contracts in accumulation period:            
                   Band 2   13,580.948   $ 8.72   $ 118,426
                   Band 4   411,910.210   10.40   4,283,866
                   Band 5   140,522.105   10.33   1,451,593
                   Band 6   11,187,819.700   8.59   96,103,371
                   Band 7   2,179,470.318   10.22   22,274,187
                   Band 8   5,979,391.179   8.55   51,123,795
                   Band 9   837,577.839   10.10   8,459,536
                   Band 10   14,367,566.180   8.82   126,721,934
                   Band 11   1,689,055.287   8.50   14,356,970
                   Band 12   444,099.829   8.48   3,765,967
                   Band 13   3,901,937.521   9.95   38,824,278
                   Band 14   5,247,164.378   8.43   44,233,596
                   Band 15   4,486,056.348   9.84   44,142,794
                   Band 16   490,869.409   8.39   4,118,394
                   Band 17   4,764,204.557   8.37   39,876,392
                   Band 18   15,967.192   8.35   133,326

167

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   Fidelity® VIP Contrafund® Portfolio - Service            
                       Class 2 (continued)            
                   Band 19   146,257.641   $ 8.57   $ 1,253,428
                   Band 20   1,602,259.423   8.74   14,003,747
                   Band 21   515,329.485   8.68   4,473,060
                   Band 26   867,530.309   10.61   9,204,497
                   Band 27   346,513.430   10.37   3,593,344
                   Band 28   83,418.807   10.25   855,043
                   Band 29   940,563.092   10.21   9,603,149
                   Band 30   306,968.232   9.98   3,063,543
                   Band 31   112,124.489   9.87   1,106,669
                   Band 32   3,117.563   9.66   30,116
                   Band 33   889.807   9.51   8,462
                   Band 34   14,475.318   9.40   136,068
                   Band 35   687,566.660   10.77   7,405,093
                   Band 36   151,254.442   10.61   1,604,810
                   Band 37   86,120.548   10.49   903,405
                   Band 38   2,609,646.792   11.12   29,019,272
                   Band 39   679,944.618   11.00   7,479,391
                   Band 40   250,630.207   10.91   2,734,376
                   Band 41   175,323.117   10.13   1,776,023
                   Band 42   54,444.826   10.02   545,537
                   Band 43   286,978.364   9.94   2,852,565
                   Band 44   14,493.000   8.72   126,379
                   Band 45   42,173.735   8.59   362,272
                   Band 46   5,187,986.499   8.34   43,267,807
                   Band 47   742,258.188   8.29   6,153,320
                   Band 50   35,092.835   7.11   249,510
                   Band 51   798.678   7.06   5,639
                   Band 52   12,249.618   7.17   87,830
                   Band 53   769.975   7.13   5,490
                   Band 54   3,039.638   7.07   21,490
                   Band 55   9,056.027   7.16   64,841
                   Band 56   766,618.524   5.95   4,561,380
                   Band 57   2,753.171   5.92   16,299
                   Band 58   1,107.322   5.90   6,533
                   Band 59   1,573.297   5.89   9,267
                   Band 60   3,244.329   5.92   19,206
    72,901,765.006       $ 656,597,286
                   Franklin Small Cap Value Securities Fund - Class 2            
                   Contracts in accumulation period:            
                   Band 35   65,436.400   $ 11.69   $ 764,952
                   Band 36   16,717.872   11.52   192,590
                   Band 37   8,901.301   11.40   101,475
                   Band 38   335,194.667   11.94   4,002,224
                   Band 39   165,926.765   11.81   1,959,595
                   Band 40   19,263.165   11.71   225,572
    611,440.170       $ 7,246,408

168

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING AllianceBernstein Mid Cap Growth Portfolio -            
Service Class            
                   Contracts in accumulation period:            
                   Band 2   46,421.759   $ 12.60   $ 584,914
                   Band 3   2,287.535   12.04   27,542
                   Band 4   86,648.710   12.20   1,057,114
                   Band 5   67,890.087   12.12   822,828
                   Band 6   2,456,785.774   11.97   29,407,726
                   Band 7   1,277,246.835   11.89   15,186,465
                   Band 8   1,903,819.206   11.73   22,331,799
                   Band 9   278,070.081   11.66   3,242,297
                   Band 10   1,526,860.917   11.58   17,681,049
                   Band 11   2,600,942.493   11.51   29,936,848
                   Band 12   427,938.042   11.43   4,891,332
                   Band 13   1,131,514.498   11.36   12,854,005
                   Band 14   1,779,695.788   11.21   19,950,390
                   Band 15   598,795.206   11.14   6,670,579
                   Band 16   52,336.765   11.00   575,704
                   Band 17   932,094.646   10.93   10,187,794
                   Band 18   16,324.097   10.86   177,280
                   Band 19   66,752.667   10.71   714,921
                   Band 20   474,979.306   11.29   5,362,516
                   Band 21   78,093.455   11.07   864,495
                   Band 25   14,247.769   12.76   181,802
                   Band 26   39,823.038   7.45   296,682
                   Band 27   13,502.575   7.36   99,379
                   Band 28   3,878.798   7.32   28,393
                   Band 29   58,523.064   7.31   427,804
                   Band 30   30,011.668   7.23   216,984
                   Band 31   12,436.555   7.19   89,419
                   Band 32   195.668   7.11   1,391
                   Band 38   69,753.608   6.10   425,497
                   Band 41   9,931.177   7.23   71,802
                   Band 42   1,623.607   7.17   11,641
                   Band 43   30,638.669   7.13   218,454
                   Band 44   1,276.033   7.04   8,983
                   Band 45   314.786   7.00   2,204
                   Band 46   987,212.174   5.99   5,913,401
                   Band 47   81,770.191   5.96   487,350
                   Band 50   3,012.291   6.01   18,104
                   Band 51   2,580.375   5.97   15,405
                   Band 54   977.970   5.98   5,848
                   Band 55   3,479.767   6.05   21,053
                   Band 56   96,893.220   5.87   568,763
                   Band 57   835.315   5.84   4,878
    17,268,416.185       $ 191,642,835

169

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING AllianceBernstein Mid Cap Growth Portfolio -            
Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   158,227.777   $ 12.28   $ 1,943,037
                   Band 8   76.049   12.16   925
                   Band 10   71,794.225   12.09   867,992
                   Band 11   3,751.051   12.05   45,200
                   Band 12   29,019.372   12.01   348,523
                   Band 13   3,684.846   6.05   22,293
                   Band 14   46,158.899   6.42   296,340
                   Band 15   138,519.400   6.40   886,524
                   Band 17   54,863.918   6.36   348,935
                   Band 20   269,947.593   11.93   3,220,475
                   Band 46   148,842.568   5.95   885,613
    924,885.698       $ 8,865,857
                   ING American Funds Asset Allocation Portfolio            
                   Contracts in accumulation period:            
                   Band 2   6,970.807   $ 7.21   $ 50,260
                   Band 4   30,536.826   7.20   219,865
                   Band 5   2,553.282   7.19   18,358
                   Band 6   3,167,030.554   7.19   22,770,950
                   Band 7   407,806.038   7.19   2,932,125
                   Band 8   1,209,035.691   7.18   8,680,876
                   Band 9   6,019.093   7.18   43,217
                   Band 10   6,791,321.072   7.18   48,761,685
                   Band 11   939,254.696   7.17   6,734,456
                   Band 12   49,722.167   7.17   356,508
                   Band 13   984,329.324   7.17   7,057,641
                   Band 14   671,271.588   7.16   4,806,305
                   Band 15   2,220,231.182   7.16   15,896,855
                   Band 16   183,653.180   7.16   1,314,957
                   Band 17   861,696.519   7.15   6,161,130
                   Band 19   3,549.634   7.15   25,380
                   Band 20   614,586.844   7.17   4,406,588
                   Band 21   5,282.052   7.16   37,819
                   Band 26   6,595.481   7.21   47,553
                   Band 27   4,435.442   7.20   31,935
                   Band 29   24,539.047   7.19   176,436
                   Band 30   77,204.502   7.17   553,556
                   Band 31   126.483   7.16   906
                   Band 38   12,762.311   7.21   92,016
                   Band 41   377.004   7.17   2,703
                   Band 42   13,579.183   7.16   97,227
                   Band 43   23,294.447   7.16   166,788
                   Band 45   135.656   7.13   967

170

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING American Funds Asset Allocation Portfolio            
(continued)            
                   Band 46   1,142,003.815   $ 7.15   $ 8,165,327
                   Band 47   144,997.261                            7.14   1,035,280
                   Band 56   1,004,066.415                            7.20   7,229,278
                   Band 57   40,199.525                            7.18   288,633
                   Band 59   12,425.290                            7.15   88,841
                   Band 60   17,935.721                            7.18   128,778
    20,679,528.132       $ 148,381,199
                   ING American Funds Bond Portfolio            
                   Contracts in accumulation period:            
                   Band 2   17,463.432   $ 9.03   $ 157,695
                   Band 4   108,650.449                            8.86   962,643
                   Band 5   11,755.180                            9.01   105,914
                   Band 6   4,629,576.023                            8.85   40,971,748
                   Band 7   738,443.059                            8.84   6,527,837
                   Band 8   1,811,922.223                            8.84   16,017,392
                   Band 9   150,716.108                            8.83   1,330,823
                   Band 10   6,792,467.190                            8.83   59,977,485
                   Band 11   1,125,423.593                            8.82   9,926,236
                   Band 12   208,410.094                            8.82   1,838,177
                   Band 13   1,643,858.765                            8.81   14,482,396
                   Band 14   1,618,624.480                            8.81   14,260,082
                   Band 15   2,361,763.174                            8.80   20,783,516
                   Band 16   102,771.637                            8.79   903,363
                   Band 17   1,672,931.763                            8.79   14,705,070
                   Band 18   5,400.044                            8.79   47,466
                   Band 19   20,375.011                            8.78   178,893
                   Band 20   779,965.404                            8.81   6,871,495
                   Band 21   26,894.067                            8.80   236,668
                   Band 26   44,946.753                            9.04   406,319
                   Band 27   14,956.022                            9.02   134,903
                   Band 28   18,337.658                            9.01   165,222
                   Band 29   133,576.004                            9.00   1,202,184
                   Band 30   43,206.606                            8.98   387,995
                   Band 31   57,287.382                            8.97   513,868
                   Band 32   722.349                            8.95   6,465
                   Band 33   653.612                            8.94   5,843
                   Band 35   104,979.134                            8.90   934,314
                   Band 36   18,380.313                            8.89   163,401
                   Band 37   21,168.260                            8.87   187,762
                   Band 38   797,009.635                            8.88   7,077,446
                   Band 39   196,521.304                            8.87   1,743,144
                   Band 40   81,936.058                            8.85   725,134
                   Band 41   2,538.772                            8.98   22,798

171

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING American Funds Bond Portfolio (continued)            
                   Band 42   1,370.294   $ 8.97   $ 12,292
                   Band 43   56,101.151                            8.96   502,666
                   Band 45   318.256                            8.93   2,842
                   Band 46   1,885,154.268                            8.78   16,551,654
                   Band 47   203,705.464                            8.77   1,786,497
                   Band 55   10,197.571                            8.84   90,147
                   Band 56   982,559.381                            8.87   8,715,302
                   Band 57   42,098.277                            8.82   371,307
                   Band 59   9,314.530                            8.78   81,782
                   Band 60   11,125.435                            8.83   98,238
                   Band 61   2,521.776                            8.81   22,217
    28,568,097.961       $ 252,196,641
                   ING American Funds Growth Portfolio            
                   Contracts in accumulation period:            
                   Band 2   88,041.155   $ 9.06   $ 797,653
                   Band 4   1,107,754.378                            8.94   9,903,324
                   Band 5   220,042.522                            8.92   1,962,779
                   Band 6   26,599,640.420                            8.87   235,938,811
                   Band 7   9,893,947.635                            8.84   87,462,497
                   Band 8   12,347,551.890                            8.80   108,658,457
                   Band 9   2,427,888.486                            8.77   21,292,582
                   Band 10   29,486,642.510                            8.75   258,008,122
                   Band 11   5,030,657.922                            8.72   43,867,337
                   Band 12   1,409,201.453                            8.70   12,260,053
                   Band 13   8,891,893.722                            8.68   77,181,638
                   Band 14   16,053,739.250                            8.63   138,543,770
                   Band 15   13,439,437.200                            8.61   115,713,554
                   Band 16   844,814.973                            8.56   7,231,616
                   Band 17   15,738,966.870                            8.54   134,410,777
                   Band 18   53,752.034                            8.51   457,430
                   Band 19   640,582.037                            8.47   5,425,730
                   Band 20   9,047,366.111                            8.65   78,259,717
                   Band 21   1,212,090.695                            8.58   10,399,738
                   Band 26   1,160,066.737                            9.09   10,545,007
                   Band 27   382,001.157                            8.94   3,415,090
                   Band 28   147,894.626                            8.87   1,311,825
                   Band 29   1,268,126.568                            8.84   11,210,239
                   Band 30   420,582.333                            8.70   3,659,066
                   Band 31   315,600.222                            8.63   2,723,630
                   Band 32   4,291.819                            8.49   36,438
                   Band 33   3,245.677                            8.40   27,264
                   Band 34   29,732.233                            8.33   247,670
                   Band 35   281,820.963                            7.07   1,992,474

172

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING American Funds Growth Portfolio (continued)            
                   Band 36   29,243.484   $ 7.03   $ 205,582
                   Band 37   47,047.033                            9.01   423,894
                   Band 38   3,283,374.639                            7.01   23,016,456
                   Band 39   657,871.380                            6.97   4,585,364
                   Band 40   315,228.286                            6.93   2,184,532
                   Band 41   249,976.953                            8.70   2,174,799
                   Band 42   171,291.445                            8.61   1,474,819
                   Band 43   612,577.156                            8.54   5,231,409
                   Band 44   36,746.686                            7.68   282,215
                   Band 45   53,185.739                            7.56   402,084
                   Band 46   12,796,149.960                            7.39   94,563,548
                   Band 47   1,269,952.887                            7.35   9,334,154
                   Band 50   33,925.982                            6.61   224,251
                   Band 51   78,915.529                            6.56   517,686
                   Band 52   6,630.402                            6.67   44,225
                   Band 53   4,914.733                            6.63   32,585
                   Band 54   9,629.811                            6.57   63,268
                   Band 55   53,101.916                            6.65   353,128
                   Band 56   2,783,949.467                            5.78   16,091,228
                   Band 57   30,226.838                            5.75   173,804
                   Band 59   17,312.070                            5.72   99,025
                   Band 60   9,174.000                            5.76   52,842
                   Band 61   3,882.449                            5.74   22,285
                   Band 62   5,354.997                            5.72   30,631
    181,107,037.440       $ 1,544,528,102
                   ING American Funds Growth-Income Portfolio            
                   Contracts in accumulation period:            
                   Band 2   56,717.205   $ 8.96   $ 508,186
                   Band 4   1,203,246.379                            8.84   10,636,698
                   Band 5   86,505.313                            8.81   762,112
                   Band 6   17,876,389.200                            8.76   156,597,169
                   Band 7   6,340,545.582                            8.74   55,416,368
                   Band 8   8,509,722.442                            8.69   73,949,488
                   Band 9   2,591,642.832                            8.67   22,469,543
                   Band 10   19,704,269.010                            8.65   170,441,927
                   Band 11   3,659,804.664                            8.62   31,547,516
                   Band 12   832,399.684                            8.60   7,158,637
                   Band 13   6,229,253.828                            8.58   53,446,998
                   Band 14   11,680,308.770                            8.53   99,633,034
                   Band 15   9,641,840.459                            8.51   82,052,062
                   Band 16   599,067.433                            8.46   5,068,110
                   Band 17   11,513,721.830                            8.44   97,175,812
                   Band 18   26,482.266                            8.41   222,716

173

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING American Funds Growth-Income Portfolio            
(continued)            
                   Band 19   512,263.084   $ 8.37   $ 4,287,642
                   Band 20   5,697,060.653   8.55   48,709,869
                   Band 21   1,168,294.096   8.48   9,907,134
                   Band 26   955,254.962   8.98   8,578,190
                   Band 27   433,030.389   8.84   3,827,989
                   Band 28   131,221.475   8.76   1,149,500
                   Band 29   1,072,823.241   8.74   9,376,475
                   Band 30   409,427.310   8.60   3,521,075
                   Band 31   203,673.890   8.53   1,737,338
                   Band 32   11,676.940   8.40   98,086
                   Band 33   2,297.745   8.30   19,071
                   Band 34   66,494.665   8.24   547,916
                   Band 35   152,201.849   7.33   1,115,640
                   Band 36   32,161.886   7.28   234,139
                   Band 37   47,612.037   8.91   424,223
                   Band 38   2,090,036.983   7.27   15,194,569
                   Band 39   247,019.943   7.22   1,783,484
                   Band 40   252,807.060   7.18   1,815,155
                   Band 41   195,451.691   8.60   1,680,885
                   Band 42   128,838.583   8.51   1,096,416
                   Band 43   510,150.976   8.44   4,305,674
                   Band 44   28,236.855   7.54   212,906
                   Band 45   67,122.716   7.43   498,722
                   Band 46   8,523,872.449   7.21   61,457,120
                   Band 47   990,722.304   7.16   7,093,572
                   Band 50   23,896.960   6.95   166,084
                   Band 51   492,072.707   6.90   3,395,302
                   Band 52   2,236.151   7.02   15,698
                   Band 53   8,472.905   6.97   59,056
                   Band 54   9,814.707   6.92   67,918
                   Band 55   42,227.229   7.00   295,591
                   Band 56   2,342,258.560   6.43   15,060,723
                   Band 57   12,208.089   6.39   78,010
                   Band 59   10,584.783   6.36   67,319
                   Band 60   11,233.725   6.40   71,896
                   Band 61   3,930.792   6.38   25,078
    127,440,607.287       $ 1,075,061,841
                   ING American Funds International Portfolio            
                   Contracts in accumulation period:            
                   Band 2   75,206.334   $ 12.91   $ 970,914
                   Band 4   406,418.658   12.73   5,173,710
                   Band 5   120,700.278   12.70   1,532,894
                   Band 6   10,841,337.040   12.63   136,926,087
                   Band 7   3,913,609.308   12.60   49,311,477

174

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING American Funds International Portfolio            
(continued)            
                   Band 8   5,544,294.750   $ 12.53   $ 69,470,013
                   Band 9   1,186,780.967   12.49   14,822,894
                   Band 10   13,747,430.240   12.46   171,292,981
                   Band 11   2,347,957.413   12.43   29,185,111
                   Band 12   739,895.877   12.39   9,167,310
                   Band 13   4,068,746.926   12.36   50,289,712
                   Band 14   6,939,693.915   12.29   85,288,838
                   Band 15   5,030,646.485   12.26   61,675,726
                   Band 16   531,195.929   12.19   6,475,278
                   Band 17   6,273,127.695   12.16   76,281,233
                   Band 18   25,978.068   12.13   315,114
                   Band 19   272,966.571   12.06   3,291,977
                   Band 20   2,964,726.278   12.33   36,555,075
                   Band 21   594,092.256   12.23   7,265,748
                   Band 26   627,230.774   12.94   8,116,366
                   Band 27   332,316.291   12.73   4,230,386
                   Band 28   61,742.600   12.63   779,809
                   Band 29   614,421.963   12.60   7,741,717
                   Band 30   213,978.438   12.39   2,651,193
                   Band 31   137,719.426   12.29   1,692,572
                   Band 32   1,635.725   12.10   19,792
                   Band 33   965.056   11.97   11,552
                   Band 34   19,824.496   11.87   235,317
                   Band 35   323,096.671   8.75   2,827,096
                   Band 36   51,578.330   8.70   448,731
                   Band 37   12,963.341   12.84   166,449
                   Band 38   2,416,918.902   8.68   20,978,856
                   Band 39   367,881.494   8.62   3,171,138
                   Band 40   177,891.437   8.58   1,526,309
                   Band 41   62,595.529   12.40   776,185
                   Band 42   41,389.400   12.26   507,434
                   Band 43   270,774.942   12.16   3,292,623
                   Band 44   8,339.602   10.05   83,813
                   Band 45   37,853.908   9.88   373,997
                   Band 46   6,379,547.533   9.32   59,457,383
                   Band 47   616,655.353   9.27   5,716,395
                   Band 50   23,901.102   7.66   183,082
                   Band 51   465,476.509   7.60   3,537,621
                   Band 52   7,260.153   7.73   56,121
                   Band 53   1,946.418   7.68   14,948
                   Band 54   10,399.551   7.62   79,245
                   Band 55   24,727.197   7.71   190,647
                   Band 56   1,629,793.621   5.81   9,469,101

175

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING American Funds International Portfolio            
                       (continued)            
                   Band 57   28,997.567   $ 5.78   $ 167,606
                   Band 58   1,119.951                            5.76   6,451
                   Band 59   7,624.619                            5.75   43,842
                   Band 60   6,646.780                            5.78   38,418
                   Band 61   2,714.832                            5.77   15,665
                   Band 62   5,170.379                            5.75   29,730
    80,617,904.878       $ 953,929,682
                   ING American Funds World Allocation Portfolio -            
                       Service Class            
                   Contracts in accumulation period:            
                   Band 6   296,479.559   $ 9.08   $ 2,692,034
                   Band 7   18,871.741                            9.08   171,355
                   Band 8   84,689.539                            9.08   768,981
                   Band 9   432.978                            9.08   3,931
                   Band 10   447,067.002                            9.08   4,059,368
                   Band 11   88,971.529                            9.07   806,972
                   Band 13   55,276.319                            9.07   501,356
                   Band 14   10,077.226                            9.07   91,400
                   Band 15   241,754.551                            9.07   2,192,714
                   Band 17   37,707.668                            9.06   341,631
                   Band 20   7,622.916                            9.07   69,140
                   Band 38   225.505                            9.09   2,050
                   Band 46   123,955.060                            9.06   1,123,033
                   Band 47   6,130.864                            9.05   55,484
                   Band 56   27,350.794                            9.09   248,619
    1,446,613.251       $ 13,128,068
                   ING BlackRock Large Cap Growth Portfolio -            
                       Institutional Class            
                   Contracts in accumulation period:            
                   Band 35   14,972.758   $ 5.95   $ 89,088
                   Band 38   5,753.240                            5.92   34,059
                   Band 40   1,292.360                            5.89   7,612
    22,018.358       $ 130,759
                   ING BlackRock Large Cap Growth Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   10,235.777   $ 8.16   $ 83,524
                   Band 3   3,503.005                            7.97   27,919
                   Band 4   46,309.924                            8.03   371,869
                   Band 5   95,432.631                            8.00   763,461
                   Band 6   1,241,675.868                            7.94   9,858,906
                   Band 7   1,056,495.542                            7.92   8,367,445
                   Band 8   607,182.088                            7.86   4,772,451

176

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING BlackRock Large Cap Growth Portfolio - Service            
                       Class (continued)            
                   Band 9   110,106.181   $ 7.84   $ 863,232
                   Band 10   1,686,152.549                            7.81   13,168,851
                   Band 11   563,849.294                            7.79   4,392,386
                   Band 12   382,378.860                            7.76   2,967,260
                   Band 13   881,146.668                            7.73   6,811,264
                   Band 14   1,723,705.512                            7.68   13,238,058
                   Band 15   602,909.302                            7.65   4,612,256
                   Band 16   54,484.783                            7.60   414,084
                   Band 17   859,566.871                            7.58   6,515,517
                   Band 18   25,077.115                            7.55   189,332
                   Band 19   55,174.536                            7.50   413,809
                   Band 20   771,754.983                            7.71   5,950,231
                   Band 21   96,232.298                            7.63   734,252
                   Band 25   11,676.592                            8.22   95,982
                   Band 26   191,117.425                            7.90   1,509,828
                   Band 27   59,793.918                            7.81   466,990
                   Band 28   17,818.185                            7.77   138,447
                   Band 29   57,850.623                            7.75   448,342
                   Band 30   45,955.132                            7.67   352,476
                   Band 31   28,574.358                            7.62   217,737
                   Band 32   42.105                            7.54   317
                   Band 35   7,514.977                            6.65   49,975
                   Band 36   5,212.956                            6.62   34,510
                   Band 37   11,416.824                            6.60   75,351
                   Band 38   105,788.751                            7.04   744,753
                   Band 39   4,369.757                            6.59   28,797
                   Band 40   13,642.073                            6.57   89,628
                   Band 41   13,642.977                            7.67   104,642
                   Band 42   152.045                            7.61   1,157
                   Band 43   18,623.308                            7.57   140,978
                   Band 44   422.240                            7.47   3,154
                   Band 45   3,109.803                            7.43   23,106
                   Band 46   602,833.849                            7.10   4,280,120
                   Band 47   70,575.218                            7.06   498,261
                   Band 50   2,186.010                            6.95   15,193
                   Band 51   685.277                            6.90   4,728
                   Band 52   1,015.874                            7.01   7,121
                   Band 55   5,414.067                            7.00   37,898
                   Band 56   71,032.033                            6.45   458,157
                   Band 57   3,013.098                            6.41   19,314
                   Band 60   476.899                            6.42   3,062
    12,227,330.161       $ 94,366,131
                   ING BlackRock Large Cap Value Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   1,920.656   $ 9.56   $ 18,361
                   Band 3   305.715                            9.33   2,852

177

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
Division/Contract          Units   Unit Value   Extended Value
                   ING BlackRock Large Cap Value Portfolio - Service            
                       Class (continued)            
                   Band 4   26,841.414   $ 9.40   $ 252,309
                   Band 5   3,348.980   9.37   31,380
                   Band 6   315,140.553   9.30   2,930,807
                   Band 7   300,023.232   9.27   2,781,215
                   Band 8   200,460.422   9.21   1,846,240
                   Band 9   31,478.924   9.18   288,977
                   Band 10   298,716.834   9.15   2,733,259
                   Band 11   163,047.394   9.12   1,486,992
                   Band 12   57,901.179   9.09   526,322
                   Band 13   195,642.408   9.06   1,772,520
                   Band 14   470,578.251   8.99   4,230,498
                   Band 15   131,528.999   8.96   1,178,500
                   Band 16   8,722.945   8.90   77,634
                   Band 17   285,575.842   8.87   2,533,058
                   Band 18   10,822.169   8.84   95,668
                   Band 19   53,659.843   8.78   471,133
                   Band 20   199,057.781   9.03   1,797,492
                   Band 21   13,670.856   8.93   122,081
                   Band 25   1,549.595   9.62   14,907
                   Band 26   11,162.495   8.56   95,551
                   Band 27   3,798.260   8.46   32,133
                   Band 28   582.112   8.41   4,896
                   Band 29   12,954.913   8.40   108,821
                   Band 30   9,977.002   8.30   82,809
                   Band 31   3,201.496   8.26   26,444
                   Band 41   5.102   8.31   42
                   Band 43   21,637.368   8.20   177,426
                   Band 46   200,576.640   7.74   1,552,463
                   Band 47   39,644.056   7.69   304,863
                   Band 50   2,096.149   7.31   15,323
                   Band 51   1,430.993   7.26   10,389
    3,077,060.578       $ 27,603,365
                   ING BlackRock Large Cap Value Portfolio - Service 2            
                       Class            
                   Contracts in accumulation period:            
                   Band 6   24,129.583   $ 11.21   $ 270,493
                   Band 10   57,512.345   11.03   634,361
                   Band 11   712.520   10.99   7,831
                   Band 12   17,831.231   10.96   195,430
                   Band 13   1,639.187   7.82   12,818
                   Band 14   5,680.781   8.10   46,014
                   Band 15   33,583.261   8.08   271,353
                   Band 17   4,107.257   8.02   32,940
                   Band 20   52,845.051   10.89   575,483
                   Band 46   21,546.148   7.69   165,690
    219,587.364       $ 2,212,413

178

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Evergreen Health Sciences Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   10,397.831   $ 9.29   $ 96,596
                   Band 3   404.585                            9.14   3,698
                   Band 4   54,801.320                            9.18   503,076
                   Band 5   63,961.075                            9.16   585,883
                   Band 6   2,462,016.955                            9.12   22,453,595
                   Band 7   1,526,712.294                            9.09   13,877,815
                   Band 8   1,357,625.326                            9.05   12,286,509
                   Band 9   105,082.004                            9.03   948,890
                   Band 10   2,194,489.442                            9.01   19,772,350
                   Band 11   765,831.949                            8.99   6,884,829
                   Band 12   365,994.126                            8.97   3,282,967
                   Band 13   1,358,965.302                            8.94   12,149,150
                   Band 14   2,035,890.064                            8.90   18,119,422
                   Band 15   920,324.993                            8.88   8,172,486
                   Band 16   125,433.078                            8.84   1,108,828
                   Band 17   2,051,094.303                            8.82   18,090,652
                   Band 18   68,415.145                            8.80   602,053
                   Band 19   69,339.574                            8.75   606,721
                   Band 20   943,090.485                            8.92   8,412,367
                   Band 21   127,935.100                            8.86   1,133,505
                   Band 25   9,285.937                            9.33   86,638
                   Band 26   133,788.963                            9.31   1,245,575
                   Band 27   30,619.730                            9.18   281,089
                   Band 28   15,757.806                            9.11   143,554
                   Band 29   283,943.803                            9.09   2,581,049
                   Band 30   46,225.564                            8.96   414,181
                   Band 31   64,844.162                            8.90   577,113
                   Band 32   651.805                            8.78   5,723
                   Band 34   2,735.402                            8.63   23,607
                   Band 38   26,361.741                            8.52   224,602
                   Band 41   26,835.671                            8.97   240,716
                   Band 42   11,217.890                            8.88   99,615
                   Band 43   42,561.921                            8.82   375,396
                   Band 44   1,501.089                            8.67   13,014
                   Band 45   10,907.634                            8.61   93,915
                   Band 46   821,610.355                            9.04   7,427,358
                   Band 47   131,422.300                            8.99   1,181,486
                   Band 50   775.441                            8.39   6,506
                   Band 51   654.580                            8.33   5,453
                   Band 52   469.506                            8.47   3,977
                   Band 55   8,566.232                            8.45   72,385
                   Band 56   77,284.099                            7.06   545,626
                   Band 57   2,891.067                            7.02   20,295
                   Band 59   2,783.678                            6.98   19,430
    18,361,501.327       $ 164,779,695

179

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units          Unit Value   Extended Value
                   ING Evergreen Omega Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 4   2,608.247   $ 8.86   $ 23,109
                   Band 6   74,128.330                            8.80   652,329
                   Band 7   66,305.072                            8.78   582,159
                   Band 8   52,586.531                            8.74   459,606
                   Band 9   9,142.850                            8.72   79,726
                   Band 10   204,381.352                            8.70   1,778,118
                   Band 11   41,442.065                            8.68   359,717
                   Band 12   15,517.166                            8.66   134,379
                   Band 13   41,670.903                            8.63   359,620
                   Band 14   84,278.312                            8.59   723,951
                   Band 15   28,155.174                            8.57   241,290
                   Band 16   4,664.795                            8.53   39,791
                   Band 17   98,477.283                            8.51   838,042
                   Band 19   3,230.743                            8.45   27,300
                   Band 20   47,804.009                            8.61   411,593
                   Band 21   356.608                            8.55   3,049
                   Band 26   45,525.207                            8.99   409,272
                   Band 27   12,692.436                            8.86   112,455
                   Band 28   6,975.142                            8.80   61,381
                   Band 29   57,876.309                            8.78   508,154
                   Band 30   14,954.010                            8.65   129,352
                   Band 31   3,277.063                            8.59   28,150
                   Band 34   480.820                            8.34   4,010
                   Band 35   1,055.546                            9.47   9,996
                   Band 36   602.072                            9.40   5,659
                   Band 37   278.505                            9.35   2,604
                   Band 38   14,953.888                            9.38   140,267
                   Band 39   713.195                            9.31   6,640
                   Band 40   131.621                            9.26   1,219
                   Band 41   103.224                            8.66   894
                   Band 42   1,284.296                            8.58   11,019
                   Band 43   6,511.317                            8.52   55,476
                   Band 46   81,178.498                            8.17   663,228
                   Band 47   6,495.825                            8.12   52,746
                   Band 56   245.460                            8.47   2,079
    1,030,083.874       $ 8,918,380
                   ING Evergreen Omega Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   22,319.995   $ 8.74   $ 195,077
                   Band 10   10,300.117                            8.64   88,993
                   Band 12   5,099.050                            8.60   43,852
                   Band 15   19,453.232                            8.52   165,742
                   Band 17   8,829.288                            8.46   74,696
                   Band 20   10,635.453                            8.56   91,039
                   Band 46   17,528.608                            8.13   142,508
    94,165.743       $ 801,907

180

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING FMRSM Diversified Mid Cap Portfolio - Service            
                       Class            
                   Currently payable annuity contracts:   180.787   $ 10.37   $ 1,875
                   Contracts in accumulation period:            
                   Band 1   14,128.213   7.75   109,494
                   Band 2   156,561.387   10.37   1,623,542
                   Band 3   16,065.461   10.07   161,779
                   Band 4   243,969.665   10.16   2,478,732
                   Band 5   335,617.431   10.12   3,396,448
                   Band 6   7,990,043.151   10.03   80,140,133
                   Band 7   6,169,726.654   9.99   61,635,569
                   Band 8   5,010,768.787   9.91   49,656,719
                   Band 9   1,079,758.623   9.87   10,657,218
                   Band 10   6,531,801.163   9.83   64,207,605
                   Band 11   4,962,459.473   9.79   48,582,478
                   Band 12   1,606,529.306   9.74   15,647,595
                   Band 13   5,294,854.469   9.70   51,360,088
                   Band 14   7,188,889.682   9.62   69,157,119
                   Band 15   2,076,779.478   9.58   19,895,547
                   Band 16   321,960.100   9.50   3,058,621
                   Band 17   3,712,594.828   9.46   35,121,147
                   Band 18   154,404.391   9.42   1,454,489
                   Band 19   372,334.675   9.34   3,477,606
                   Band 20   2,558,482.636   9.66   24,714,942
                   Band 21   431,395.917   9.54   4,115,517
                   Band 24   146.593   10.82   1,586
                   Band 25   92,839.189   10.46   971,098
                   Band 26   171,018.871   9.13   1,561,402
                   Band 27   89,067.351   9.03   804,278
                   Band 28   8,028.539   8.98   72,096
                   Band 29   147,646.999   8.96   1,322,917
                   Band 30   68,514.502   8.86   607,038
                   Band 31   57,885.225   8.81   509,969
                   Band 34   554.167   8.60   4,766
                   Band 38   88,931.885   7.46   663,432
                   Band 41   38,975.521   8.87   345,713
                   Band 42   17,262.782   8.80   151,912
                   Band 43   99,605.853   8.75   871,551
                   Band 44   2,359.672   8.63   20,364
                   Band 45   2,893.889   8.58   24,830
                   Band 46   1,923,142.467   8.59   16,519,794
                   Band 47   317,226.006   8.54   2,709,110
                   Band 50   16,252.353   7.33   119,130
                   Band 51   3,879.526   7.28   28,243
                   Band 52   1,114.742   7.40   8,249

181

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING FMRSM Diversified Mid Cap Portfolio - Service            
                       Class (continued)            
                   Band 53   1,486.378   $ 7.35   $ 10,925
                   Band 54   3,729.930   7.29   27,191
                   Band 55   6,884.505   7.38   50,808
                   Band 56   498,365.910   6.30   3,139,705
                   Band 57   168.604   6.27   1,057
                   Band 58   1,081.808   6.25   6,761
                   Band 59   194.833   6.23   1,214
                   Band 60   3,576.220   6.27   22,423
    59,892,140.597       $ 581,231,825
                   ING FMRSM Diversified Mid Cap Portfolio - Service 2            
                       Class            
                   Contracts in accumulation period:            
                   Band 6   411,319.709   $ 13.02   $ 5,355,383
                   Band 7   5,292.161   12.98   68,692
                   Band 10   336,418.899   12.82   4,312,890
                   Band 11   5,800.480   12.78   74,130
                   Band 12   85,065.743   12.74   1,083,738
                   Band 13   265.455   8.68   2,304
                   Band 14   87,015.207   9.93   864,061
                   Band 15   243,940.982   9.91   2,417,455
                   Band 17   129,706.975   9.83   1,275,020
                   Band 20   608,962.537   12.65   7,703,376
                   Band 46   261,748.416   8.54   2,235,331
    2,175,536.564       $ 25,392,380
                   ING Focus 5 Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 4   109,782.232   $ 5.85   $ 642,226
                   Band 5   3.413   6.03   21
                   Band 6   5,640,975.365   5.84   32,943,296
                   Band 7   176,768.729   5.84   1,032,329
                   Band 8   1,436,110.160   5.83   8,372,522
                   Band 9   16,788.763   5.82   97,711
                   Band 10   7,174,466.627   5.82   41,755,396
                   Band 11   319,218.710   5.82   1,857,853
                   Band 12   27,567.096   5.81   160,165
                   Band 13   1,114,370.196   5.81   6,474,491
                   Band 14   1,215,513.084   5.80   7,049,976
                   Band 15   1,331,778.340   5.80   7,724,314
                   Band 16   217,486.950   5.79   1,259,249
                   Band 17   749,220.740   5.78   4,330,496
                   Band 18   3,293.955   5.78   19,039
                   Band 19   11,534.127   5.77   66,552
                   Band 20   94,170.586   5.80   546,189
                   Band 21   1,737.832   5.79   10,062

182

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Focus 5 Portfolio - Service Class (continued)            
                   Band 26   434.425   $ 6.04   $ 2,624
                   Band 28   627.767                            6.02   3,779
                   Band 29   16,356.869                            6.02   98,468
                   Band 30   1,503.088                            6.01   9,034
                   Band 31   170.787                            6.00   1,025
                   Band 35   1,521.903                            6.42   9,771
                   Band 36   10,042.648                            6.42   64,474
                   Band 38   223,235.702                            5.87   1,310,394
                   Band 39   3,845.805                            6.41   24,652
                   Band 40   1,167.671                            6.41   7,485
                   Band 46   1,252,147.393                            5.78   7,237,412
                   Band 47   464,608.839                            5.76   2,676,147
                   Band 50   1,247.864                            5.81   7,250
                   Band 51   5,431.545                            5.78   31,394
                   Band 52   16,141.954                            5.84   94,269
                   Band 55   14,191.331                            5.83   82,735
                   Band 56   779,604.205                            6.00   4,677,625
                   Band 57   7,092.315                            5.97   42,341
                   Band 60   7,261.405                            5.97   43,351
    22,447,420.421       $ 130,766,117
                   ING Franklin Income Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   31,950.592   $ 7.80   $ 249,215
                   Band 3   398.071                            7.72   3,073
                   Band 4   249,294.907                            7.74   1,929,543
                   Band 5   75,300.114                            7.73   582,070
                   Band 6   4,555,948.402                            7.71   35,126,362
                   Band 7   1,397,557.747                            7.70   10,761,195
                   Band 8   2,309,771.775                            7.68   17,739,047
                   Band 9   652,013.387                            7.67   5,000,943
                   Band 10   7,440,765.308                            7.66   56,996,262
                   Band 11   1,421,791.650                            7.65   10,876,706
                   Band 12   326,241.391                            7.64   2,492,484
                   Band 13   2,565,614.868                            7.63   19,575,641
                   Band 14   3,636,173.219                            7.61   27,671,278
                   Band 15   2,759,068.466                            7.60   20,968,920
                   Band 16   386,324.310                            7.58   2,928,338
                   Band 17   2,991,144.701                            7.57   22,642,965
                   Band 18   41,709.040                            7.56   315,320
                   Band 19   105,989.683                            7.54   799,162
                   Band 20   768,295.012                            7.62   5,854,408
                   Band 21   431,001.499                            7.59   3,271,301
                   Band 26   433,035.056                            7.81   3,382,004

183

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Franklin Income Portfolio - Service Class            
(continued)            
                   Band 27   117,603.160   $ 7.74   $ 910,248
                   Band 28   58,223.195                            7.71   448,901
                   Band 29   456,916.110                            7.70   3,518,254
                   Band 30   200,496.787                            7.64   1,531,795
                   Band 31   81,431.898                            7.61   619,697
                   Band 32   1,520.395                            7.55   11,479
                   Band 33   2,740.459                            7.51   20,581
                   Band 34   1,552.746                            7.48   11,615
                   Band 38   371,307.745                            7.84   2,911,053
                   Band 41   57,535.898                            7.64   439,574
                   Band 42   12,108.811                            7.60   92,027
                   Band 43   161,737.810                            7.57   1,224,355
                   Band 44   3,803.794                            7.49   28,490
                   Band 45   37,252.367                            7.46   277,903
                   Band 46   2,802,506.675                            7.55   21,158,925
                   Band 47   359,683.041                            7.52   2,704,816
                   Band 50   1,152.066                            7.69   8,859
                   Band 51   15,942.596                            7.63   121,642
                   Band 52   420.639                            7.76   3,264
                   Band 55   6,463.576                            7.74   50,028
                   Band 56   441,745.745                            7.13   3,149,647
                   Band 57   4,517.655                            7.10   32,075
                   Band 60   2,541.832                            7.10   18,047
    37,778,594.198       $ 288,459,512
                   ING Franklin Income Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   108,930.556   $ 7.68   $ 836,587
                   Band 10   242,212.738                            7.63   1,848,083
                   Band 12   28,859.943                            7.61   219,624
                   Band 14   13,724.840                            7.58   104,034
                   Band 15   57,534.840                            7.57   435,539
                   Band 17   41,264.524                            7.54   311,135
                   Band 20   143,974.174                            7.59   1,092,764
                   Band 46   133,690.828                            7.52   1,005,355
    770,192.443       $ 5,853,121

184

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units          Unit Value   Extended Value
                   ING Franklin Mutual Shares Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   20,260.579   $ 7.34   $ 148,713
                   Band 3   848.160                            7.30   6,192
                   Band 4   165,454.662                            7.31   1,209,474
                   Band 5   49,778.438                            7.31   363,880
                   Band 6   3,054,886.529                            7.29   22,270,123
                   Band 7   612,272.403                            7.29   4,463,466
                   Band 8   1,499,275.780                            7.27   10,899,735
                   Band 9   375,941.278                            7.27   2,733,093
                   Band 10   4,632,151.927                            7.26   33,629,423
                   Band 11   509,012.977                            7.26   3,695,434
                   Band 12   134,731.352                            7.25   976,802
                   Band 13   1,218,513.960                            7.24   8,822,041
                   Band 14   1,730,012.617                            7.23   12,507,991
                   Band 15   1,393,022.076                            7.22   10,057,619
                   Band 16   149,159.248                            7.21   1,075,438
                   Band 17   1,025,971.067                            7.21   7,397,251
                   Band 18   2,926.661                            7.20   21,072
                   Band 19   40,020.939                            7.19   287,751
                   Band 20   397,819.004                            7.24   2,880,210
                   Band 21   257,279.186                            7.22   1,857,556
                   Band 26   204,721.898                            7.35   1,504,706
                   Band 27   44,742.729                            7.31   327,069
                   Band 28   24,590.819                            7.29   179,267
                   Band 29   306,918.176                            7.29   2,237,434
                   Band 30   58,149.934                            7.25   421,587
                   Band 31   68,922.822                            7.23   498,312
                   Band 32   222.249                            7.19   1,598
                   Band 33   3,836.742                            7.17   27,509
                   Band 34   314.738                            7.15   2,250
                   Band 38   293,400.920                            7.34   2,153,563
                   Band 41   24,344.425                            7.25   176,497
                   Band 42   8,261.064                            7.23   59,727
                   Band 43   65,971.069                            7.21   475,651
                   Band 44   11,974.760                            7.16   85,739
                   Band 45   15,913.721                            7.14   113,624
                   Band 46   1,377,127.477                            7.19   9,901,547
                   Band 47   129,059.370                            7.17   925,356
                   Band 50   2,113.355                            7.24   15,301
                   Band 51   7,184.806                            7.21   51,802
                   Band 52   447.759                            7.29   3,264
                   Band 55   19,111.206                            7.27   138,938
                   Band 56   247,682.865                            6.45   1,597,554
                   Band 57   14,311.769                            6.41   91,738
                   Band 59   5,929.508                            6.38   37,830
                   Band 60   588.414                            6.42   3,778
    20,205,181.438       $ 146,334,905

185

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units          Unit Value   Extended Value
                   ING Franklin Templeton Founding Strategy Portfolio            
- Service Class            
                   Contracts in accumulation period:            
                   Band 2   281.701   $ 6.13   $ 1,727
                   Band 4   823,534.190                            6.11   5,031,794
                   Band 5   21,225.185                            6.10   129,474
                   Band 6   18,040,062.900                            6.09   109,863,983
                   Band 7   1,215,628.741                            6.09   7,403,179
                   Band 8   6,748,633.204                            6.08   41,031,690
                   Band 9   536,248.936                            6.07   3,255,031
                   Band 10   31,131,535.550                            6.07   188,968,421
                   Band 11   2,372,616.616                            6.06   14,378,057
                   Band 12   70,023.536                            6.05   423,642
                   Band 13   5,261,646.010                            6.05   31,832,958
                   Band 14   8,497,380.717                            6.04   51,324,180
                   Band 15   8,875,069.116                            6.03   53,516,667
                   Band 16   1,485,682.620                            6.02   8,943,809
                   Band 17   5,530,072.836                            6.02   33,291,038
                   Band 18   375.754                            6.01   2,258
                   Band 19   21,179.957                            6.00   127,080
                   Band 20   1,091,373.768                            6.04   6,591,898
                   Band 21   438,732.725                            6.03   2,645,558
                   Band 26   69,684.393                            6.14   427,862
                   Band 27   35,605.465                            6.11   217,549
                   Band 28   9,062.113                            6.09   55,188
                   Band 29   103,568.700                            6.09   630,733
                   Band 30   110,359.289                            6.05   667,674
                   Band 31   34,670.853                            6.04   209,412
                   Band 32   15,066.586                            6.01   90,550
                   Band 34   4,775.839                            5.97   28,512
                   Band 35   39,491.325                            6.81   268,936
                   Band 38   5,108,650.573                            6.13   31,316,028
                   Band 39   7,749.300                            6.79   52,618
                   Band 40   27,678.128                            6.78   187,658
                   Band 41   1,606.050                            6.06   9,733
                   Band 42   1,128.819                            6.03   6,807
                   Band 43   76,981.547                            6.02   463,429
                   Band 44   3,204.341                            5.98   19,162
                   Band 45   21,210.640                            5.97   126,628
                   Band 46   9,027,246.371                            6.01   54,253,751
                   Band 47   929,524.912                            5.99   5,567,854
                   Band 50   154,346.071                            6.05   933,794
                   Band 51   42,115.164                            6.02   253,533
                   Band 52   12,795.383                            6.09   77,924
                   Band 53   4,330.787                            6.06   26,245
                   Band 54   5,104.781                            6.03   30,782
                   Band 55   301,867.688                            6.08   1,835,356
                   Band 56   4,025,069.625                            6.58   26,484,958
                   Band 57   150,052.075                            6.55   982,841

186

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract              Units          Unit Value   Extended Value
                   ING Franklin Templeton Founding Strategy Portfolio            
- Service Class (continued)            
                   Band 59   765.800   $ 6.51   $ 4,985
                   Band 60   18,085.002                            6.55   118,457
    112,503,101.682       $ 684,111,403
                   ING Global Real Estate Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   1,225.557   $ 7.29   $ 8,934
                   Band 3   961.940                            7.22   6,945
                   Band 4   99,998.671                            7.24   723,990
                   Band 5   14,369.158                            7.23   103,889
                   Band 6   2,084,333.718                            7.21   15,028,046
                   Band 7   700,495.236                            7.20   5,043,566
                   Band 8   1,357,649.635                            7.18   9,747,924
                   Band 9   112,936.388                            7.17   809,754
                   Band 10   3,566,732.521                            7.16   25,537,805
                   Band 11   401,569.158                            7.15   2,871,219
                   Band 12   74,427.349                            7.14   531,411
                   Band 13   812,891.830                            7.13   5,795,919
                   Band 14   1,153,793.712                            7.11   8,203,473
                   Band 15   1,232,833.548                            7.10   8,753,118
                   Band 16   134,205.873                            7.09   951,520
                   Band 17   1,387,896.336                            7.08   9,826,306
                   Band 18   3,033.167                            7.07   21,444
                   Band 19   100,243.627                            7.05   706,718
                   Band 20   383,537.789                            7.12   2,730,789
                   Band 21   57,663.597                            7.09   408,835
                   Band 26   71,877.805                            7.30   524,708
                   Band 27   8,440.421                            7.24   61,109
                   Band 28   5,830.603                            7.21   42,039
                   Band 29   76,035.132                            7.20   547,453
                   Band 30   23,669.076                            7.14   168,997
                   Band 31   8,881.637                            7.11   63,148
                   Band 32   440.759                            7.06   3,112
                   Band 35   160,121.836                            5.72   915,897
                   Band 36   21,517.650                            5.71   122,866
                   Band 37   6,800.468                            5.70   38,763
                   Band 38   743,466.696                            6.91   5,137,355
                   Band 39   286,038.204                            5.70   1,630,418
                   Band 40   62,523.550                            5.69   355,759
                   Band 41   15,121.710                            7.14   107,969
                   Band 42   6,063.480                            7.11   43,111
                   Band 43   47,537.172                            7.08   336,563
                   Band 44   402.745                            7.01   2,823
                   Band 45   4,250.822                            6.98   29,671
                   Band 46   1,160,397.123                            7.06   8,192,404
                   Band 47   139,821.597                            7.03   982,946
                   Band 50   2,510.813                            6.80   17,074
                   Band 51   7,677.064                            6.75   51,820

187

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING Global Real Estate Portfolio - Service Class            
(continued)            
                   Band 52   2,470.402   6.86   16,947
                   Band 53   1,620.331   6.82   11,051
                   Band 54   1,369.941   6.77   9,275
                   Band 55   26,540.266   6.85   181,801
                   Band 56   162,639.633   6.27   1,019,750
                   Band 57   22,634.612   6.24   141,240
    16,757,500.358       $ 118,567,674
                   ING Global Real Estate Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   36,146.039   $ 7.18   $ 259,529
                   Band 8   951.667   7.15   6,804
                   Band 10   52,784.875   7.13   376,356
                   Band 12   4,581.682   7.11   32,576
                   Band 13   1,717.108   7.10   12,191
                   Band 14   25,456.548   7.08   180,232
                   Band 15   26,091.860   7.07   184,469
                   Band 17   9,037.122   7.05   63,712
                   Band 20   51,878.704   7.09   367,820
                   Band 46   30,035.030   7.03   211,146
    238,680.635       $ 1,694,835
                   ING Global Resources Portfolio - Service Class            
                   Currently payable annuity contracts:   341.546   $ 29.77   $ 10,168
                   Contracts in accumulation period:            
                   Band 1   9,296.309   30.99   288,093
                   Band 2   73,915.338   29.77   2,200,460
                   Band 3   10,492.785   27.74   291,070
                   Band 4   65,052.994   28.35   1,844,252
                   Band 5   39,942.451   28.03   1,119,587
                   Band 6   2,510,627.350   27.51   69,067,358
                   Band 7   1,343,730.445   27.19   36,536,031
                   Band 8   1,764,772.775   26.69   47,101,785
                   Band 9   197,519.815   26.38   5,210,573
                   Band 10   3,200,960.520   26.11   83,577,079
                   Band 11   903,561.561   25.85   23,357,066
                   Band 12   303,748.517   25.59   7,772,925
                   Band 13   1,456,291.730   25.33   36,887,870
                   Band 14   2,405,197.429   24.82   59,697,000
                   Band 15   1,454,848.676   24.57   35,745,632
                   Band 16   182,792.551   24.08   4,401,645
                   Band 17   2,442,119.878   23.84   58,220,138
                   Band 18   30,722.908   23.59   724,753
                   Band 19   91,839.009   23.12   2,123,318
                   Band 20   663,391.770   25.08   16,637,866
                   Band 21   120,553.249   24.33   2,933,061
                   Band 25   62,298.254   30.38   1,892,621
                   Band 26   127,955.226   12.45   1,593,043
                   Band 27   35,472.858   12.31   436,671

188

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING Global Resources Portfolio - Service Class            
(continued)            
                   Band 28   33,553.362   $ 12.24   $ 410,693
                   Band 29   314,130.543   12.22   3,838,675
                   Band 30   76,299.381   12.08   921,697
                   Band 31   38,394.273   12.02   461,499
                   Band 32   1,869.697   11.89   22,231
                   Band 34   489.945   11.73   5,747
                   Band 38   129,633.947   8.87   1,149,853
                   Band 41   50,297.213   12.09   608,093
                   Band 42   22,593.433   12.00   271,121
                   Band 43   99,646.762   11.93   1,188,786
                   Band 44   485.007   11.77   5,709
                   Band 45   14,784.226   11.70   172,975
                   Band 46   2,437,741.681   12.47   30,398,639
                   Band 47   378,361.226   12.39   4,687,896
                   Band 50   15,289.083   8.71   133,168
                   Band 51   7,712.765   8.64   66,638
                   Band 52   7,347.667   8.79   64,586
                   Band 53   938.212   8.73   8,191
                   Band 54   8,528.973   8.66   73,861
                   Band 55   23,284.581   8.76   203,973
                   Band 56   423,033.344   5.99   2,533,970
                   Band 57   31,441.696   5.96   187,393
                   Band 59   2,854.605   5.92   16,899
                   Band 60   1,534.448   5.96   9,145
    23,617,692.014       $ 547,111,503
                   ING Global Resources Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   259,962.667   $ 19.08   $ 4,960,088
                   Band 7   23.979   19.01   456
                   Band 10   182,784.796   18.77   3,430,871
                   Band 11   1,918.579   18.71   35,897
                   Band 12   49,888.818   18.65   930,426
                   Band 13   1,127.704   12.60   14,209
                   Band 14   89,897.558   12.78   1,148,891
                   Band 15   164,580.784   12.75   2,098,405
                   Band 17   84,644.573   12.66   1,071,600
                   Band 20   366,366.957   18.53   6,788,780
                   Band 46   165,759.898   12.40   2,055,423
    1,366,956.313       $ 22,535,046

189

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING International Growth Opportunities Portfolio -            
                       Service Class            
                   Contracts in accumulation period:            
                   Band 2   5,972.924   $ 7.98   $ 47,664
                   Band 4   1,642.935   7.73   12,700
                   Band 5   33,597.118   7.68   258,026
                   Band 6   1,191,087.835   7.53   8,968,891
                   Band 7   945,499.554   7.53   7,119,612
                   Band 8   561,955.830   7.43   4,175,332
                   Band 9   241,684.428   7.38   1,783,631
                   Band 10   250,136.414   7.34   1,836,001
                   Band 11   1,560,982.084   7.29   11,379,559
                   Band 12   146,587.207   7.24   1,061,291
                   Band 13   645,259.000   7.20   4,645,865
                   Band 14   975,694.696   7.10   6,927,432
                   Band 15   22,531.232   7.06   159,070
                   Band 16   13,850.108   6.97   96,535
                   Band 17   217,264.383   6.92   1,503,470
                   Band 18   19,330.109   6.88   132,991
                   Band 19   32,364.595   6.79   219,756
                   Band 20   302,516.688   7.15   2,162,994
                   Band 21   59,769.511   7.01   418,984
                   Band 25   12,271.475   8.08   99,154
                   Band 46   22,896.631   7.18   164,398
                   Band 47   1,779.132   7.13   12,685
    7,264,673.889       $ 53,186,041
                   ING International Growth Opportunities Portfolio -            
                       Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   82,174.743   $ 10.19   $ 837,361
                   Band 8   574.273   10.09   5,794
                   Band 10   38,965.741   10.02   390,437
                   Band 12   83,346.085   9.96   830,127
                   Band 14   14,141.463   7.94   112,283
                   Band 15   6,424.298   7.92   50,880
                   Band 17   32,497.737   7.86   255,432
                   Band 20   190,436.733   9.90   1,885,324
                   Band 46   11,913.211   7.12   84,822
    460,474.284       $ 4,452,460
                   ING Janus Contrarian Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   25,424.953   $ 8.92   $ 226,791
                   Band 3   2,225.476   8.67   19,295
                   Band 4   139,617.857   8.74   1,220,260
                   Band 5   247,686.200   8.70   2,154,870
                   Band 6   5,751,888.824   8.63   49,638,801
                   Band 7   4,169,982.866   8.59   35,820,153
                   Band 8   3,282,204.710   8.52   27,964,384

190

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Janus Contrarian Portfolio - Service Class            
(continued)            
                   Band 9   617,892.426   $ 8.49   $ 5,245,907
                   Band 10   8,035,793.431                            8.45   67,902,454
                   Band 11   2,415,398.371                            8.42   20,337,654
                   Band 12   961,796.807                            8.38   8,059,857
                   Band 13   4,062,900.750                            8.35   33,925,221
                   Band 14   6,492,492.723                            8.28   53,757,840
                   Band 15   2,466,550.740                            8.24   20,324,378
                   Band 16   372,411.602                            8.17   3,042,603
                   Band 17   3,366,536.738                            8.14   27,403,609
                   Band 18   126,818.222                            8.10   1,027,228
                   Band 19   400,656.557                            8.04   3,221,279
                   Band 20   1,586,314.910                            8.31   13,182,277
                   Band 21   300,205.013                            8.21   2,464,683
                   Band 25   44,177.541                            9.00   397,598
                   Band 26   88,499.901                            9.72   860,219
                   Band 27   41,308.307                            9.59   396,147
                   Band 28   15,983.454                            9.52   152,162
                   Band 29   203,957.216                            9.50   1,937,594
                   Band 30   50,554.296                            9.36   473,188
                   Band 31   49,978.992                            9.29   464,305
                   Band 32   729.838                            9.17   6,693
                   Band 34   421.136                            9.02   3,799
                   Band 38   210,837.055                            7.29   1,537,002
                   Band 41   32,766.673                            9.37   307,024
                   Band 42   18,950.809                            9.28   175,864
                   Band 43   115,838.211                            9.21   1,066,870
                   Band 44   2,968.691                            9.05   26,867
                   Band 45   12,994.689                            8.87   115,263
                   Band 46   2,123,675.832                            8.23   17,477,852
                   Band 47   501,880.958                            8.18   4,105,386
                   Band 50   21,243.114                            7.13   151,463
                   Band 51   6,811.606                            7.08   48,226
                   Band 52   4,091.707                            7.20   29,460
                   Band 54   1,318.247                            7.09   9,346
                   Band 55   4,028.305                            7.18   28,923
                   Band 56   237,640.811                            5.25   1,247,614
                   Band 57   11,432.069                            5.22   59,675
                   Band 59   5,127.676                            5.19   26,613
                   Band 60   3,686.277                            5.23   19,279
    48,635,702.587       $ 408,063,976

191

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract        Units   Unit Value   Extended Value
                   ING Janus Contrarian Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   213,959.105   $ 13.56   $ 2,901,285
                   Band 7   1,305.213   13.52   17,646
                   Band 10   211,490.522   13.34   2,821,284
                   Band 11   1,420.274   13.30   18,890
                   Band 12   83,966.838   13.26   1,113,400
                   Band 13   5,638.182   8.31   46,853
                   Band 14   76,019.505   9.15   695,578
                   Band 15   240,434.494   9.13   2,195,167
                   Band 17   108,608.244   9.06   983,991
                   Band 20   441,146.011   13.17   5,809,893
                   Band 46   262,148.747   8.18   2,144,377
    1,646,137.135       $ 18,748,364
                   ING JPMorgan Emerging Markets Equity Portfolio -            
                       Adviser Class            
                   Contracts in accumulation period:            
                   Band 6   256,803.486   $ 18.85   $ 4,840,746
                   Band 7   6,195.990   18.79   116,423
                   Band 8   275.779   18.67   5,149
                   Band 10   168,286.544   18.55   3,121,715
                   Band 11   5,304.966   18.49   98,089
                   Band 12   39,422.213   18.43   726,551
                   Band 13   6,576.278   12.15   79,902
                   Band 14   70,554.839   12.64   891,813
                   Band 15   253,412.504   12.61   3,195,532
                   Band 17   52,857.820   12.52   661,780
                   Band 20   268,566.779   18.32   4,920,143
                   Band 46   170,031.546   11.95   2,031,877
    1,298,288.744       $ 20,689,720
                   ING JPMorgan Emerging Markets Equity Portfolio -            
                       Service Class            
                   Currently payable annuity contracts:   284.601   $ 12.77   $ 3,634
                   Contracts in accumulation period:            
                   Band 1   7,738.235   13.05   100,984
                   Band 2   183,289.626   12.77   2,340,609
                   Band 3   11,688.805   12.29   143,655
                   Band 4   183,252.962   12.42   2,276,002
                   Band 5   108,554.612   12.36   1,341,735
                   Band 6   4,935,142.435   12.22   60,307,441
                   Band 7   2,324,743.588   12.15   28,245,635
                   Band 8   3,336,197.831   12.02   40,101,098
                   Band 9   379,394.495   11.95   4,533,764
                   Band 10   5,283,733.638   11.89   62,823,593
                   Band 11   1,425,397.745   11.82   16,848,201
                   Band 12   378,644.963   11.76   4,452,865
                   Band 13   2,305,398.802   11.69   26,950,112
                   Band 14   3,371,812.259   11.56   38,978,150

192

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING JPMorgan Emerging Markets Equity Portfolio -            
                       Service Class (continued)            
                   Band 15   2,351,661.859   $ 11.50   $ 27,044,111
                   Band 16   282,187.952   11.37   3,208,477
                   Band 17   3,377,984.815   11.31   38,205,008
                   Band 18   47,876.326   11.25   538,609
                   Band 19   174,024.969   11.12   1,935,158
                   Band 20   984,359.396   11.63   11,448,100
                   Band 21   136,750.696   11.44   1,564,428
                   Band 25   20,910.866   12.91   269,959
                   Band 26   134,627.320   12.26   1,650,531
                   Band 27   27,167.448   12.13   329,541
                   Band 28   31,307.020   12.06   377,563
                   Band 29   271,190.885   12.04   3,265,138
                   Band 30   63,200.679   11.90   752,088
                   Band 31   36,266.400   11.83   429,032
                   Band 34   230.405   11.55   2,661
                   Band 35   43,851.726   5.26   230,660
                   Band 36   18,303.865   5.25   96,095
                   Band 37   5,813.698   5.24   30,464
                   Band 38   450,426.954   8.79   3,959,253
                   Band 39   161,655.943   5.24   847,077
                   Band 40   33,232.748   5.23   173,807
                   Band 41   35,166.141   11.90   418,477
                   Band 42   13,336.753   11.81   157,507
                   Band 43   80,776.947   11.75   949,129
                   Band 44   827.865   11.59   9,595
                   Band 45   4,949.642   11.52   57,020
                   Band 46   1,846,431.964   12.03   22,212,577
                   Band 47   211,142.059   11.95   2,523,148
                   Band 50   16,636.958   8.66   144,076
                   Band 51   2,981.811   8.59   25,614
                   Band 52   522.222   8.74   4,564
                   Band 53   743.017   8.68   6,449
                   Band 54   3,682.755   8.62   31,745
                   Band 55   4,482.897   8.72   39,091
                   Band 56   488,288.105   4.96   2,421,909
                   Band 57   23,382.178   4.93   115,274
                   Band 59   3,703.371   4.91   18,184
                   Band 60   3,141.775   4.94   15,520
    35,628,503.027       $ 414,955,117
 
 
 
 
                                                                                                                               193            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING JPMorgan Small Cap Core Equity Portfolio -            
Service Class            
                   Contracts in accumulation period:            
                   Band 1   667.187   $ 10.56   $ 7,045
                   Band 2   5,915.210   10.42   61,636
                   Band 3   2,812.377   10.18   28,630
                   Band 4   76,585.366   10.25   785,000
                   Band 5   36,895.118   10.21   376,699
                   Band 6   1,611,587.818   10.15   16,357,616
                   Band 7   1,267,700.221   10.11   12,816,449
                   Band 8   685,117.982   10.04   6,878,585
                   Band 9   176,068.016   10.01   1,762,441
                   Band 10   1,739,177.516   9.98   17,356,992
                   Band 11   390,354.368   9.94   3,880,122
                   Band 12   185,036.326   9.91   1,833,710
                   Band 13   1,055,689.041   9.88   10,430,208
                   Band 14   1,543,171.935   9.81   15,138,517
                   Band 15   612,947.994   9.77   5,988,502
                   Band 16   74,502.414   9.71   723,418
                   Band 17   971,061.947   9.68   9,399,880
                   Band 18   20,512.746   9.64   197,743
                   Band 19   70,847.951   9.58   678,723
                   Band 20   502,353.921   9.84   4,943,163
                   Band 21   110,510.880   9.74   1,076,376
                   Band 25   19,809.343   10.49   207,800
                   Band 26   100,668.165   10.46   1,052,989
                   Band 27   36,111.079   10.25   370,139
                   Band 28   11,046.187   10.14   112,008
                   Band 29   66,620.130   10.11   673,530
                   Band 30   31,195.481   9.91   309,147
                   Band 31   53,162.246   9.81   521,522
                   Band 33   694.685   9.49   6,593
                   Band 34   814.985   9.39   7,653
                   Band 38   62,721.016   7.55   473,544
                   Band 41   29,657.839   10.58   313,780
                   Band 42   32,346.715   10.47   338,670
                   Band 43   57,075.705   10.38   592,446
                   Band 44   14,439.255   8.95   129,231
                   Band 45   7,020.319   8.77   61,568
                   Band 46   1,205,077.712   7.79   9,387,555
                   Band 47   101,226.747   7.75   784,507
                   Band 51   6,063.512   7.38   44,749
                   Band 54   870.114   7.40   6,439
                   Band 55   6,170.198   7.48   46,153
                   Band 56   24,709.269   7.51   185,567
    13,007,017.036       $ 126,347,045

194

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING JPMorgan Small Cap Core Equity Portfolio -            
                       Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   507,227.571   $ 12.15   $ 6,162,815
                   Band 7   879.860   12.11   10,655
                   Band 10   410,221.790   11.96   4,906,253
                   Band 11   19,135.262   11.92   228,092
                   Band 12   123,997.176   11.88   1,473,086
                   Band 13   5,395.521   7.87   42,463
                   Band 14   97,597.328   9.16   893,992
                   Band 15   330,136.898   9.14   3,017,451
                   Band 17   215,296.404   9.07   1,952,738
                   Band 20   724,795.521   11.81   8,559,835
                   Band 46   357,395.194   7.74   2,766,239
    2,792,078.525       $ 30,013,619
                   ING JPMorgan Value Opportunities Portfolio -            
                       Service Class            
                   Contracts in accumulation period:            
                   Band 2   747.833   $ 7.43   $ 5,556
                   Band 4   92,630.283   7.36   681,759
                   Band 5   877.150   7.35   6,447
                   Band 6   86,921.974   7.32   636,269
                   Band 7   71,920.483   7.31   525,739
                   Band 8   83,440.243   7.28   607,445
                   Band 9   176,165.431   7.27   1,280,723
                   Band 10   154,260.749   7.25   1,118,390
                   Band 11   15,148.709   7.24   109,677
                   Band 12   2,471.898   7.23   17,872
                   Band 13   110,422.234   7.21   796,144
                   Band 14   117,553.489   7.18   844,034
                   Band 15   188,515.792   7.17   1,351,658
                   Band 16   3,794.406   7.14   27,092
                   Band 17   111,454.094   7.13   794,668
                   Band 18   200.834   7.12   1,430
                   Band 19   912.206   7.09   6,468
                   Band 20   14,017.803   7.20   100,928
                   Band 21   66,748.581   7.16   477,920
                   Band 26   251,415.949   7.44   1,870,535
                   Band 27   170,038.389   7.36   1,251,483
                   Band 28   45,930.348   7.32   336,210
                   Band 29   229,400.922   7.31   1,676,921
                   Band 30   214,580.400   7.22   1,549,270
                   Band 31   111,294.405   7.18   799,094
                   Band 32   1,430.343   7.11   10,170
                   Band 33   487.784   7.05   3,439
                   Band 34   5,403.367   7.01   37,878
                   Band 41   23,331.253   7.23   168,685
                   Band 42   11,195.141   7.17   80,269

195

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING JPMorgan Value Opportunities Portfolio -            
                       Service Class (continued)            
                   Band 43   66,660.373   $ 7.13   $ 475,288
                   Band 44   2,599.193   7.04   18,298
                   Band 45   2,200.934   7.00   15,407
                   Band 46   63,044.266   7.10   447,614
                   Band 47   9,296.006   7.06   65,630
                   Band 51   4,666.279   6.67   31,124
    2,511,179.544       $ 18,227,534
                   ING JPMorgan Value Opportunities Portfolio -            
                       Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   21,495.107   $ 7.29   $ 156,699
                   Band 10   21,848.625   7.22   157,747
                   Band 12   285.672   7.20   2,057
                   Band 14   9,169.022   7.16   65,650
                   Band 15   22,569.571   7.14   161,147
                   Band 17   955.923   7.10   6,787
                   Band 20   7,612.755   7.17   54,583
                   Band 46   12,058.583   7.08   85,375
    95,995.258       $ 690,045
                   ING Julius Baer Foreign Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 1   2,108.610   $ 11.91   $ 25,114
                   Band 2   36,654.934   11.75   430,695
                   Band 3   1,123.916   11.48   12,903
                   Band 4   183,877.511   11.56   2,125,624
                   Band 5   93,458.018   11.52   1,076,636
                   Band 6   5,824,949.831   11.44   66,637,426
                   Band 7   2,397,384.975   11.40   27,330,189
                   Band 8   3,067,707.966   11.32   34,726,454
                   Band 9   433,624.170   11.28   4,891,281
                   Band 10   8,579,771.414   11.25   96,522,428
                   Band 11   1,340,477.343   11.21   15,026,751
                   Band 12   452,644.694   11.17   5,056,041
                   Band 13   2,661,316.251   11.13   29,620,450
                   Band 14   5,214,181.046   11.06   57,668,842
                   Band 15   2,881,981.436   11.02   31,759,435
                   Band 16   295,022.536   10.95   3,230,497
                   Band 17   3,952,202.032   10.91   43,118,524
                   Band 18   94,011.507   10.87   1,021,905
                   Band 19   228,733.250   10.80   2,470,319
                   Band 20   1,559,822.000   11.10   17,314,024
                   Band 21   351,676.766   10.98   3,861,411
                   Band 25   59,784.635   11.83   707,252
                   Band 26   329,487.645   11.79   3,884,659
                   Band 27   68,574.505   11.55   792,036
                   Band 28   68,865.758   11.44   787,824

196

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING Julius Baer Foreign Portfolio - Service Class            
(continued)            
                   Band 29   419,808.976   $ 11.40   $ 4,785,822
                   Band 30   81,666.419   11.17   912,214
                   Band 31   51,839.882   11.06   573,349
                   Band 32   2,176.806   10.84   23,597
                   Band 34   3,912.168   10.59   41,430
                   Band 38   361,385.503   7.85   2,836,876
                   Band 41   58,504.242   12.36   723,112
                   Band 42   17,059.014   12.23   208,632
                   Band 43   110,340.049   12.13   1,338,425
                   Band 44   5,257.169   10.26   53,939
                   Band 45   27,149.945   10.07   273,400
                   Band 46   3,123,717.375   9.37   29,269,232
                   Band 47   518,811.235   9.32   4,835,321
                   Band 50   31,181.677   7.72   240,723
                   Band 51   14,073.915   7.66   107,806
                   Band 52   6,857.403   7.79   53,419
                   Band 53   2,293.770   7.74   17,754
                   Band 54   10,502.065   7.68   80,656
                   Band 55   11,371.933   7.77   88,360
                   Band 56   465,494.278   5.72   2,662,627
                   Band 57   15,633.088   5.69   88,952
                   Band 59   4,794.087   5.66   27,135
                   Band 60   2,133.147   5.70   12,159
    45,525,406.895       $ 499,353,660
                   ING Julius Baer Foreign Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   597,727.641   $ 13.44   $ 8,033,459
                   Band 7   13,154.231   13.40   176,267
                   Band 10   524,251.776   13.23   6,935,851
                   Band 11   8,348.541   13.19   110,117
                   Band 12   98,060.645   13.14   1,288,517
                   Band 13   6,525.946   9.47   61,801
                   Band 14   137,958.292   10.34   1,426,489
                   Band 15   451,216.498   10.32   4,656,554
                   Band 17   166,812.944   10.24   1,708,165
                   Band 20   741,865.856   13.06   9,688,768
                   Band 46   523,710.321   9.31   4,875,743
    3,269,632.691       $ 38,961,731

197

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Legg Mason Value Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   12,968.163   $ 4.42   $ 57,319
                   Band 4   184,245.538                            4.33   797,783
                   Band 5   172,283.023                            4.31   742,540
                   Band 6   3,243,581.035                            4.27   13,850,091
                   Band 7   2,899,607.593                            4.25   12,323,332
                   Band 8   1,837,553.988                            4.22   7,754,478
                   Band 9   479,662.688                            4.20   2,014,583
                   Band 10   3,942,426.998                            4.18   16,479,345
                   Band 11   1,301,440.309                            4.17   5,427,006
                   Band 12   991,005.612                            4.15   4,112,673
                   Band 13   2,677,538.969                            4.13   11,058,236
                   Band 14   3,796,254.163                            4.10   15,564,642
                   Band 15   1,187,447.103                            4.08   4,844,784
                   Band 16   219,641.704                            4.05   889,549
                   Band 17   2,568,431.948                            4.03   10,350,781
                   Band 18   77,626.878                            4.01   311,284
                   Band 19   173,108.869                            3.98   688,973
                   Band 20   1,244,804.224                            4.11   5,116,145
                   Band 21   488,334.470                            4.06   1,982,638
                   Band 25   37,479.342                            4.45   166,783
                   Band 26   360,035.255                            4.44   1,598,557
                   Band 27   75,857.386                            4.33   328,462
                   Band 28   42,714.028                            4.27   182,389
                   Band 29   212,681.586                            4.25   903,897
                   Band 30   72,975.410                            4.15   302,848
                   Band 31   49,383.973                            4.10   202,474
                   Band 34   1,885.021                            3.88   7,314
                   Band 35   20,107.204                            5.04   101,340
                   Band 36   7,433.330                            5.00   37,167
                   Band 37   2,623.100                            4.38   11,489
                   Band 38   47,878.679                            4.99   238,915
                   Band 39   1,884.160                            4.95   9,327
                   Band 40   1,512.828                            4.93   7,458
                   Band 41   54,506.732                            5.33   290,521
                   Band 42   40,760.713                            5.27   214,809
                   Band 43   91,148.820                            5.23   476,708
                   Band 44   4,684.131                            4.80   22,484
                   Band 45   12,241.865                            4.73   57,904
                   Band 46   1,512,134.162                            4.45   6,728,997
                   Band 47   154,961.692                            4.42   684,931
                   Band 50   275.532                            4.59   1,265
                   Band 51   2,343.631                            4.55   10,664
                   Band 52   459.512                            4.63   2,128
                   Band 54   5,000.800                            4.56   22,804
                   Band 56   21,398.376                            4.73   101,214
                   Band 57   360.526                            4.70   1,694
                   Band 59   466.872                            4.68   2,185
    30,333,157.941       $ 127,082,910

198

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units          Unit Value   Extended Value
                   ING Legg Mason Value Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   352,568.998   $ 5.84   $ 2,059,003
                   Band 7   16,299.682                            5.82   94,864
                   Band 10   288,998.977                            5.75   1,661,744
                   Band 11   1,496.478                            5.73   8,575
                   Band 12   82,034.194                            5.71   468,415
                   Band 14   69,338.944                            4.86   336,987
                   Band 15   236,620.544                            4.85   1,147,610
                   Band 17   132,579.900                            4.81   637,709
                   Band 20   367,395.092                            5.67   2,083,130
                   Band 46   274,236.719                            4.42   1,212,126
    1,821,569.528       $ 9,710,163
                   ING LifeStyle Aggressive Growth Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   822.233   $ 8.30   $ 6,825
                   Band 4   353,777.201                            8.20   2,900,973
                   Band 5   20,303.045                            8.18   166,079
                   Band 6   13,089,343.190                            8.14   106,547,254
                   Band 7   4,105,603.911                            8.13   33,378,560
                   Band 8   10,642,743.360                            8.09   86,099,794
                   Band 9   964,258.551                            8.07   7,781,567
                   Band 10   11,989,967.430                            8.05   96,519,238
                   Band 11   2,523,995.740                            8.03   20,267,686
                   Band 12   249,767.764                            8.01   2,000,640
                   Band 13   6,402,805.574                            7.99   51,158,417
                   Band 14   7,059,963.043                            7.95   56,126,706
                   Band 15   8,867,076.842                            7.93   70,315,919
                   Band 16   471,150.589                            7.90   3,722,090
                   Band 17   14,380,243.760                            7.88   113,316,321
                   Band 18   27,559.754                            7.86   216,620
                   Band 19   613,795.198                            7.82   4,799,878
                   Band 20   2,682,728.641                            7.97   21,381,347
                   Band 21   650,344.091                            7.92   5,150,725
                   Band 26   222,715.976                            8.32   1,852,997
                   Band 27   54,857.120                            8.20   449,828
                   Band 28   81,203.283                            8.14   660,995
                   Band 29   113,171.967                            8.12   918,956
                   Band 30   75,359.557                            8.01   603,630
                   Band 31   53,623.611                            7.95   426,308
                   Band 38   179,022.148                            6.76   1,210,190
                   Band 41   55,613.041                            8.01   445,460
                   Band 42   8,222.602                            7.94   65,287
                   Band 43   600,202.655                            7.88   4,729,597
                   Band 45   20,536.637                            7.69   157,927
                   Band 46   6,820,001.883                            7.19   49,035,814
                   Band 47   856,397.745                            7.15   6,123,244
                   Band 50   92,535.635                            6.65   615,362

199

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units          Unit Value   Extended Value
                   ING LifeStyle Aggressive Growth Portfolio - Service            
                       Class (continued)            
                   Band 51   3,318.267   $ 6.60   $ 21,901
                   Band 52   1,327.118                            6.71   8,905
                   Band 55   44,882.592                            6.69   300,265
                   Band 56   222,280.094                            6.07   1,349,240
                   Band 57   1,149.752                            6.04   6,945
                   Band 58   3,062.291                            6.02   18,435
                   Band 59   2,133.464                            6.01   12,822
    94,607,867.355       $ 750,870,747
                   ING LifeStyle Aggressive Growth Portfolio - Service            
                       2 Class            
                   Contracts in accumulation period:            
                   Band 6   53,033.190   $ 8.21   $ 435,402
                   Band 10   53,817.385                            8.13   437,535
                   Band 12   26,784.543                            8.10   216,955
                   Band 14   2,260.310                            8.06   18,218
                   Band 15   35,894.663                            8.04   288,593
                   Band 17   10,223.006                            8.00   81,784
                   Band 20   144,831.000                            8.07   1,168,786
                   Band 46   14,784.127                            7.97   117,829
    341,628.224       $ 2,765,102
                   ING LifeStyle Conservative Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 4   2,446.406   $ 7.96   $ 19,473
                   Band 6   1,191,721.195                            7.95   9,474,184
                   Band 7   484,982.711                            7.95   3,855,613
                   Band 8   1,178,787.205                            7.95   9,371,358
                   Band 9   26,729.347                            7.95   212,498
                   Band 10   2,413,273.997                            7.95   19,185,528
                   Band 11   499,119.500                            7.94   3,963,009
                   Band 12   26,644.702                            7.94   211,559
                   Band 13   3,250,371.423                            7.94   25,807,949
                   Band 14   1,658,610.820                            7.94   13,169,370
                   Band 15   1,134,919.508                            7.94   9,011,261
                   Band 16   130,115.057                            7.93   1,031,812
                   Band 17   1,535,233.796                            7.93   12,174,404
                   Band 18   18,591.209                            7.93   147,428
                   Band 19   46,945.607                            7.93   372,279
                   Band 20   248,731.554                            7.94   1,974,929
                   Band 21   1,308.136                            7.93   10,374
                   Band 38   63,365.253                            7.97   505,021
                   Band 46   1,208,229.910                            7.93   9,581,263
                   Band 47   669,601.755                            7.92   5,303,246
                   Band 55   6,676.239                            7.95   53,076
                   Band 56   158,045.845                            7.96   1,258,045
                   Band 57   145,737.506                            7.94   1,157,156
    16,100,188.681       $ 127,850,835

200

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units          Unit Value   Extended Value
                   ING LifeStyle Growth Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   34,796.217   $ 8.72   $ 303,423
                   Band 4   1,974,646.561                            8.62   17,021,453
                   Band 5   120,044.442                            8.59   1,031,182
                   Band 6   52,718,863.430                            8.55   450,746,282
                   Band 7   8,072,275.804                            8.53   68,856,513
                   Band 8   30,235,470.340                            8.49   256,699,143
                   Band 9   3,922,608.299                            8.47   33,224,492
                   Band 10   75,698,182.600                            8.45   639,649,643
                   Band 11   6,043,148.945                            8.43   50,943,746
                   Band 12   1,062,335.155                            8.41   8,934,239
                   Band 13   20,875,512.670                            8.39   175,145,551
                   Band 14   27,211,275.760                            8.35   227,214,153
                   Band 15   30,574,303.930                            8.33   254,683,952
                   Band 16   2,387,319.987                            8.29   19,790,883
                   Band 17   30,971,387.190                            8.27   256,133,372
                   Band 18   53,961.490                            8.25   445,182
                   Band 19   801,768.108                            8.22   6,590,534
                   Band 20   7,687,612.345                            8.37   64,345,315
                   Band 21   2,066,217.504                            8.31   17,170,267
                   Band 26   827,589.571                            8.74   7,233,133
                   Band 27   343,447.920                            8.61   2,957,087
                   Band 28   107,796.813                            8.55   921,663
                   Band 29   720,340.558                            8.53   6,144,505
                   Band 30   392,289.794                            8.41   3,299,157
                   Band 31   93,828.634                            8.35   783,469
                   Band 32   38,202.428                            8.24   314,788
                   Band 34   3,190.111                            8.10   25,840
                   Band 38   3,332,113.988                            7.28   24,257,790
                   Band 41   667,676.711                            8.42   5,621,838
                   Band 42   104,687.659                            8.34   873,095
                   Band 43   1,505,309.722                            8.28   12,463,964
                   Band 44   6,456.109                            8.14   52,553
                   Band 45   66,867.184                            8.08   540,287
                   Band 46   32,093,651.610                            7.60   243,911,752
                   Band 47   2,962,523.746                            7.56   22,396,680
                   Band 50   258,586.172                            7.16   1,851,477
                   Band 51   124,366.666                            7.10   883,003
                   Band 52   662.853                            7.22   4,786
                   Band 53   3,978.149                            7.17   28,523
                   Band 55   242,097.864                            7.20   1,743,105
                   Band 56   5,791,894.394                            6.53   37,821,070
                   Band 57   71,230.602                            6.50   462,999
                   Band 58   5,068.123                            6.48   32,841
                   Band 59   25,764.144                            6.46   166,436
                   Band 60   6,623.309                            6.50   43,052
                   Band 62   25,400.151                            6.47   164,339
                   Band 64   9,709.531                            6.57   63,792
    352,343,085.293       $ 2,923,992,349

201

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units          Unit Value   Extended Value
                   ING LifeStyle Growth Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   247,167.161   $ 8.58   $ 2,120,694
                   Band 10   344,874.226                            8.50   2,931,431
                   Band 12   43,302.128                            8.47   366,769
                   Band 14   49,404.103                            8.42   415,983
                   Band 15   129,262.910                            8.40   1,085,808
                   Band 17   661.919                            8.36   5,534
                   Band 20   63,989.544                            8.44   540,072
                   Band 46   253,061.983                            8.33   2,108,006
    1,131,723.974       $ 9,574,297
                   ING LifeStyle Moderate Growth Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   53,156.044   $ 9.08   $ 482,657
                   Band 4   2,695,637.583                            8.97   24,179,869
                   Band 5   76,516.079                            8.95   684,819
                   Band 6   40,348,931.060                            8.91   359,508,976
                   Band 7   7,798,271.008                            8.89   69,326,629
                   Band 8   21,768,526.140                            8.85   192,651,456
                   Band 9   6,163,823.071                            8.83   54,426,558
                   Band 10   57,548,358.290                            8.80   506,425,553
                   Band 11   7,107,854.842                            8.78   62,406,966
                   Band 12   710,371.767                            8.76   6,222,857
                   Band 13   13,937,318.390                            8.74   121,812,163
                   Band 14   22,761,926.490                            8.70   198,028,760
                   Band 15   22,864,520.610                            8.68   198,464,039
                   Band 16   2,132,116.363                            8.64   18,421,485
                   Band 17   23,935,885.250                            8.62   206,327,331
                   Band 18   64,390.540                            8.60   553,759
                   Band 19   768,738.902                            8.56   6,580,405
                   Band 20   6,255,777.144                            8.72   54,550,377
                   Band 21   2,839,948.948                            8.66   24,593,958
                   Band 26   865,540.142                            9.10   7,876,415
                   Band 27   476,376.779                            8.97   4,273,100
                   Band 28   171,153.727                            8.91   1,524,980
                   Band 29   1,295,840.217                            8.89   11,520,020
                   Band 30   545,615.514                            8.76   4,779,592
                   Band 31   213,692.232                            8.70   1,859,122
                   Band 32   1,083.161                            8.58   9,294
                   Band 34   20,679.781                            8.44   174,537
                   Band 38   3,055,075.869                            7.81   23,860,143
                   Band 41   419,081.005                            8.77   3,675,340
                   Band 42   115,932.543                            8.68   1,006,294
                   Band 43   1,944,047.072                            8.62   16,757,686
                   Band 44   18,295.551                            8.47   154,963
                   Band 45   272,705.586                            8.41   2,293,454
                   Band 46   22,511,941.440                            8.01   180,320,651
                   Band 47   2,623,775.525                            7.96   20,885,253

202

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract              Units          Unit Value   Extended Value
                   ING LifeStyle Moderate Growth Portfolio - Service            
                       Class (continued)            
                   Band 50   103,134.599   $ 7.68   $ 792,074
                   Band 51   58,991.163                            7.62   449,513
                   Band 52   6,360.229                            7.74   49,228
                   Band 53   7,073.339                            7.70   54,465
                   Band 55   175,128.658                            7.72   1,351,993
                   Band 56   6,142,445.958                            6.97   42,812,848
                   Band 57   55,542.970                            6.93   384,913
                   Band 58   33,365.230                            6.92   230,887
                   Band 59   11,034.581                            6.90   76,139
                   Band 60   2,752.474                            6.94   19,102
                   Band 62   6,965.849                            6.90   48,064
                   Band 64   32,027.343                            7.00   224,191
    281,017,727.058       $ 2,433,112,878
                   ING LifeStyle Moderate Growth Portfolio - Service 2            
                       Class            
                   Contracts in accumulation period:            
                   Band 6   301,297.298   $ 8.90   $ 2,681,546
                   Band 7   10,584.187                            8.89   94,093
                   Band 8   10,023.542                            8.85   88,708
                   Band 10   182,803.307                            8.82   1,612,325
                   Band 11   6,590.105                            8.80   57,993
                   Band 12   30,916.829                            8.79   271,759
                   Band 13   5,635.283                            8.77   49,421
                   Band 14   54,607.055                            8.74   477,266
                   Band 15   166,237.131                            8.72   1,449,588
                   Band 17   27,652.128                            8.67   239,744
                   Band 20   181,774.685                            8.75   1,590,528
                   Band 46   294,206.441                            8.64   2,541,944
    1,272,327.991       $ 11,154,915
                   ING LifeStyle Moderate Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   14,942.593   $ 9.51   $ 142,104
                   Band 4   1,417,876.320                            9.40   13,328,037
                   Band 5   115,649.590                            9.38   1,084,793
                   Band 6   19,133,193.120                            9.34   178,704,024
                   Band 7   6,089,942.234                            9.31   56,697,362
                   Band 8   11,168,891.300                            9.27   103,535,622
                   Band 9   3,435,567.461                            9.25   31,778,999
                   Band 10   27,863,823.810                            9.23   257,183,094
                   Band 11   4,615,769.489                            9.20   42,465,079
                   Band 12   1,026,496.674                            9.18   9,423,239
                   Band 13   9,095,202.874                            9.16   83,312,058
                   Band 14   12,780,303.100                            9.12   116,556,364
                   Band 15   10,041,745.560                            9.10   91,379,885
                   Band 16   1,523,804.496                            9.05   13,790,431
                   Band 17   12,622,114.490                            9.03   113,977,694

203

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract              Units          Unit Value   Extended Value
                   ING LifeStyle Moderate Portfolio - Service Class            
(continued)            
                   Band 18   35,148.208   $ 9.01   $ 316,685
                   Band 19   809,127.424                            8.97   7,257,873
                   Band 20   5,194,632.850                            9.14   47,478,944
                   Band 21   1,647,029.287                            9.07   14,938,556
                   Band 26   783,368.821                            9.54   7,473,339
                   Band 27   311,880.469                            9.40   2,931,676
                   Band 28   101,133.486                            9.34   944,587
                   Band 29   914,180.768                            9.31   8,511,023
                   Band 30   648,596.625                            9.18   5,954,117
                   Band 31   197,275.923                            9.12   1,799,156
                   Band 32   8,512.776                            8.99   76,530
                   Band 33   18,742.744                            8.91   166,998
                   Band 34   21,811.667                            8.84   192,815
                   Band 38   1,863,481.305                            8.35   15,560,069
                   Band 41   251,081.845                            9.19   2,307,442
                   Band 42   77,980.225                            9.10   709,620
                   Band 43   1,458,493.391                            9.03   13,170,195
                   Band 44   1,617.837                            8.88   14,366
                   Band 45   61,216.584                            8.82   539,930
                   Band 46   12,313,843.690                            8.46   104,175,118
                   Band 47   2,131,455.187                            8.41   17,925,538
                   Band 51   120,276.695                            8.14   979,052
                   Band 52   24,274.599                            8.28   200,994
                   Band 53   18,813.152                            8.23   154,832
                   Band 55   96,031.695                            8.26   793,222
                   Band 56   4,336,268.321                            7.48   32,435,287
                   Band 57   42,972.929                            7.44   319,719
                   Band 58   2,436.201                            7.42   18,077
                   Band 59   9,283.103                            7.40   68,695
                   Band 60   58,267.419                            7.45   434,092
                   Band 64   52,771.273                            7.48   394,729
    154,557,329.610       $ 1,401,602,061
                   ING LifeStyle Moderate Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   245,468.269   $ 9.30   $ 2,282,855
                   Band 10   149,340.822                            9.22   1,376,922
                   Band 12   75,924.883                            9.18   696,990
                   Band 13   5,617.704                            9.16   51,458
                   Band 14   56,041.728                            9.13   511,661
                   Band 15   167,312.880                            9.11   1,524,220
                   Band 17   70,366.806                            9.06   637,523
                   Band 20   276,923.231                            9.15   2,533,848
                   Band 46   188,242.896                            9.03   1,699,833
    1,235,239.219       $ 11,315,310

204

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING Limited Maturity Bond Portfolio - Service Class            
                   Currently payable annuity contracts:   925.622   $23.25 to $24.21   $ 21,522
                   Contracts in accumulation period:            
                   Band 1   5,759.724   24.21   139,443
                   Band 2   242,600.393   23.25   5,640,459
                   Band 3   932.113   21.67   20,199
                   Band 4   72,203.949   22.16   1,600,040
                   Band 5   74,994.838   21.88   1,640,887
                   Band 6   954,519.447   21.50   20,522,168
                   Band 7   1,000,792.236   21.22   21,236,811
                   Band 8   563,814.468   20.86   11,761,170
                   Band 9   143,603.785   20.59   2,956,802
                   Band 10   269,814.695   20.38   5,498,823
                   Band 11   930,227.424   20.21   18,799,896
                   Band 12   219,747.038   19.97   4,388,348
                   Band 13   783,306.037   19.77   15,485,960
                   Band 14   662,979.155   19.38   12,848,536
                   Band 16   14,035.266   18.83   264,284
                   Band 17   96,665.156   18.64   1,801,839
                   Band 18   9,965.212   18.45   183,858
                   Band 19   30,846.706   18.07   557,400
                   Band 20   160,889.381   19.61   3,155,041
                   Band 21   48,075.418   19.02   914,394
                   Band 24   166.859   25.73   4,293
                   Band 25   29,152.915   23.75   692,382
                   Band 49   29,538.673   9.94   293,614
    6,345,556.510       $ 130,428,169
                   ING Liquid Assets Portfolio - Service Class            
                   Currently payable annuity contracts:   6.197   $18.53 to $19.29   $ 116
                   Contracts in accumulation period:            
                   Band 1   51,602.312   19.29   995,409
                   Band 2   389,833.568   18.53   7,223,616
                   Band 3   17,246.757   17.27   297,851
                   Band 4   1,075,452.885   17.65   18,981,743
                   Band 5   411,578.223   17.39   7,157,345
                   Band 6   15,903,228.630   17.12   272,263,274
                   Band 7   12,640,768.070   16.88   213,376,165
                   Band 8   11,654,930.660   16.61   193,588,398
                   Band 9   2,175,066.297   16.37   35,605,835
                   Band 10   18,806,724.070   16.21   304,856,997
                   Band 11   9,058,019.362   16.09   145,743,532
                   Band 12   1,879,417.788   15.88   29,845,154
                   Band 13   14,082,140.860   15.72   221,371,254
                   Band 14   14,339,344.580   15.41   220,969,300
                   Band 15   6,218,578.799   15.30   95,144,256
                   Band 16   1,120,159.832   14.99   16,791,196
                   Band 17   9,865,920.602   14.84   146,410,262
                   Band 18   75,114.318   14.69   1,103,429

205

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract              Units   Unit Value   Extended Value
                   ING Liquid Assets Portfolio - Service Class            
(continued)            
                   Band 19   576,192.497   $ 14.39   $ 8,291,410
                   Band 20   3,532,829.706   15.61   55,147,472
                   Band 21   717,104.546   15.14   10,856,963
                   Band 25   73,538.506   18.91   1,390,613
                   Band 26   1,679,566.462   18.72   31,441,484
                   Band 27   642,413.723   17.62   11,319,330
                   Band 28   262,305.260   17.09   4,482,797
                   Band 29   2,902,929.937   16.92   49,117,575
                   Band 30   1,385,332.506   15.92   22,054,493
                   Band 31   701,838.172   15.45   10,843,400
                   Band 32   33,725.334   14.57   491,378
                   Band 33   11,477.470   13.99   160,570
                   Band 34   1,348.298   13.57   18,296
                   Band 35   269,683.060   19.49   5,256,123
                   Band 36   62,017.343   18.72   1,160,965
                   Band 37   20,586.347   18.17   374,054
                   Band 38   2,579,107.315   11.09   28,602,300
                   Band 39   195,689.926   10.96   2,144,762
                   Band 40   147,780.461   10.88   1,607,851
                   Band 41   648,465.181   10.65   6,906,154
                   Band 42   70,326.842   10.54   741,245
                   Band 43   726,419.814   10.45   7,591,087
                   Band 44   49,618.601   10.38   515,041
                   Band 45   57,733.245   10.30   594,652
                   Band 46   6,185,289.857   10.58   65,440,367
                   Band 47   2,009,948.440   10.51   21,124,558
                   Band 49   1,274,009.972   10.66   13,580,946
                   Band 50   2,062.545   10.54   21,739
                   Band 51   54,382.597   10.46   568,842
                   Band 52   48,262.874   10.63   513,034
                   Band 55   69,910.862   10.61   741,754
                   Band 56   3,493,551.718   10.12   35,354,743
                   Band 57   111,644.170   10.06   1,123,140
                   Band 59   10,377.352   10.01   103,877
                   Band 60   35,940.254   10.07   361,918
    150,408,545.003       $ 2,331,770,065
                   ING Liquid Assets Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   1,177,079.679   $ 10.70   $ 12,594,753
                   Band 7   15,217.787   10.67   162,374
                   Band 8   901.026   10.60   9,551
                   Band 10   835,706.666   10.53   8,799,991
                   Band 11   39,063.908   10.50   410,171
                   Band 12   257,755.770   10.46   2,696,125
                   Band 13   6,197.531   10.69   66,252
                   Band 14   187,008.008   10.56   1,974,805
                   Band 15   655,678.812   10.53   6,904,298
                   Band 17   258,720.894   10.45   2,703,633
                   Band 20   1,531,095.162   10.40   15,923,390
                   Band 46   384,762.655   10.52   4,047,703
    5,349,187.898       $ 56,293,046

206

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract        Units   Unit Value   Extended Value
                   ING Lord Abbett Affiliated Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   2,936.543   $ 9.09   $ 26,693
                   Band 3   1,094.014   8.81   9,638
                   Band 4   37,355.513   8.89   332,091
                   Band 5   65,906.948   8.85   583,276
                   Band 6   632,115.097   8.77   5,543,649
                   Band 7   956,346.955   8.73   8,348,909
                   Band 8   347,206.809   8.65   3,003,339
                   Band 9   160,384.012   8.61   1,380,906
                   Band 10   771,210.145   8.57   6,609,271
                   Band 11   599,701.606   8.53   5,115,455
                   Band 12   241,979.730   8.49   2,054,408
                   Band 13   561,630.511   8.46   4,751,394
                   Band 14   1,207,039.844   8.38   10,114,994
                   Band 15   103,935.643   8.34   866,823
                   Band 16   19,253.429   8.27   159,226
                   Band 17   362,354.846   8.23   2,982,180
                   Band 18   23,421.267   8.19   191,820
                   Band 19   92,806.851   8.12   753,592
                   Band 20   289,975.575   8.42   2,441,594
                   Band 21   132,695.401   8.30   1,101,372
                   Band 25   12,958.086   9.17   118,826
                   Band 26   20,016.839   9.55   191,161
                   Band 27   3,585.245   9.40   33,701
                   Band 28   2,102.881   9.32   19,599
                   Band 29   24,051.652   9.30   223,680
                   Band 30   11,220.237   9.15   102,665
                   Band 31   22,014.803   9.07   199,674
                   Band 38   995.752   7.30   7,269
                   Band 41   1,951.133   9.15   17,853
                   Band 42   2,958.499   9.05   26,774
                   Band 43   7,718.371   8.98   69,311
                   Band 44   174.093   7.98   1,389
                   Band 45   23,333.124   7.85   183,165
                   Band 46   114,346.022   7.57   865,599
                   Band 47   23,587.367   7.52   177,377
                   Band 55   2,425.629   7.23   17,537
    6,882,790.472       $ 58,626,210
                   ING Lord Abbett Affiliated Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   36,256.729   $ 10.51   $ 381,058
                   Band 7   647.889   10.47   6,783
                   Band 10   42,071.318   10.34   435,017
                   Band 12   5,354.647   10.28   55,046
                   Band 14   13,858.014   7.90   109,478
                   Band 15   12,758.158   7.89   100,662
                   Band 17   5,251.082   7.83   41,116
                   Band 20   50,306.425   10.21   513,629
                   Band 46   33,042.807   7.53   248,812
    199,547.069       $ 1,891,601

207

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING Marsico Growth Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 1   3,725.106   $ 12.13   $ 45,186
                   Band 2   132,186.550   11.83   1,563,767
                   Band 3   8,592.693   11.30   97,097
                   Band 4   182,115.666   11.45   2,085,224
                   Band 5   161,349.264   11.38   1,836,155
                   Band 6   5,258,119.044   11.23   59,048,677
                   Band 7   3,567,579.516   11.16   39,814,187
                   Band 8   3,538,269.452   11.02   38,991,729
                   Band 9   995,225.120   10.95   10,897,715
                   Band 10   3,530,625.190   10.87   38,377,896
                   Band 11   4,696,270.895   10.80   50,719,726
                   Band 12   831,820.274   10.73   8,925,432
                   Band 13   3,003,393.196   10.67   32,046,205
                   Band 14   4,064,826.321   10.53   42,802,621
                   Band 15   978,977.280   10.46   10,240,102
                   Band 16   162,615.792   10.32   1,678,195
                   Band 17   1,891,487.295   10.26   19,406,660
                   Band 18   54,982.731   10.19   560,274
                   Band 19   197,402.754   10.06   1,985,872
                   Band 20   1,197,887.606   10.60   12,697,609
                   Band 21   254,937.181   10.39   2,648,797
                   Band 25   63,892.686   11.98   765,434
                   Band 26   160,659.738   8.43   1,354,362
                   Band 27   11,297.076   8.31   93,879
                   Band 28   9,831.966   8.25   81,114
                   Band 29   107,117.571   8.23   881,578
                   Band 30   19,430.295   8.11   157,580
                   Band 31   14,632.526   8.06   117,938
                   Band 38   96,529.054   7.25   699,836
                   Band 41   8,725.166   8.12   70,848
                   Band 42   1,784.585   8.04   14,348
                   Band 43   73,427.544   7.98   585,952
                   Band 44   251.262   7.85   1,972
                   Band 45   15,114.464   7.73   116,835
                   Band 46   1,874,070.114   7.22   13,530,786
                   Band 47   244,251.488   7.17   1,751,283
                   Band 50   632.642   7.15   4,523
                   Band 52   456.434   7.22   3,295
                   Band 53   1,019.434   7.17   7,309
                   Band 56   130,679.565   6.23   814,134
                   Band 57   345.916   6.20   2,145
                   Band 59   6,681.310   6.17   41,224
    37,553,219.762       $ 397,565,501

208

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract        Units   Unit Value   Extended Value
                   ING Marsico Growth Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   283,654.838   $ 10.36   $ 2,938,664
                   Band 7   14,300.768   10.32   147,584
                   Band 10   220,274.806   10.19   2,244,600
                   Band 11   2,958.573   10.16   30,059
                   Band 12   85,597.289   10.13   867,101
                   Band 13   5,188.863   7.29   37,827
                   Band 14   71,121.827   7.88   560,440
                   Band 15   197,843.311   7.87   1,557,027
                   Band 17   44,357.488   7.81   346,432
                   Band 20   407,921.778   10.06   4,103,693
                   Band 46   201,629.060   7.17   1,445,680
    1,534,848.601       $ 14,279,107
                   ING Marsico International Opportunities Portfolio -            
Service Class            
                   Contracts in accumulation period:            
                   Band 2   12,156.186   $ 9.12   $ 110,864
                   Band 4   116,879.863   9.04   1,056,594
                   Band 5   78,284.477   9.02   706,126
                   Band 6   2,376,602.707   8.99   21,365,658
                   Band 7   1,284,421.241   8.97   11,521,259
                   Band 8   1,266,965.563   8.94   11,326,672
                   Band 9   179,556.945   8.92   1,601,648
                   Band 10   2,920,415.257   8.90   25,991,696
                   Band 11   691,115.591   8.89   6,144,018
                   Band 12   254,172.479   8.87   2,254,510
                   Band 13   1,373,994.168   8.85   12,159,848
                   Band 14   1,976,963.408   8.82   17,436,817
                   Band 15   1,055,822.364   8.80   9,291,237
                   Band 16   128,107.281   8.77   1,123,501
                   Band 17   1,483,984.258   8.75   12,984,862
                   Band 18   12,575.951   8.74   109,914
                   Band 19   56,149.231   8.71   489,060
                   Band 20   642,231.029   8.84   5,677,322
                   Band 21   184,200.618   8.79   1,619,123
                   Band 25   35,866.371   9.16   328,536
                   Band 26   105,953.623   9.14   968,416
                   Band 27   19,401.260   9.04   175,387
                   Band 28   4,957.710   8.99   44,570
                   Band 29   81,006.685   8.97   726,630
                   Band 30   28,090.201   8.87   249,160
                   Band 31   26,067.667   8.82   229,917
                   Band 33   355.214   8.66   3,076
                   Band 35   14,482.305   5.38   77,915
                   Band 38   145,334.169   7.24   1,052,219
                   Band 39   46,099.136   5.37   247,552
                   Band 40   2,277.834   5.36   12,209

209

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING Marsico International Opportunities Portfolio -            
Service Class            
                   Band 41   20,051.743   $ 8.87   $ 177,859
                   Band 42   6,484.615   8.81   57,129
                   Band 43   42,895.127   8.76   375,761
                   Band 45   5,146.522   8.59   44,209
                   Band 46   1,147,803.511   8.72   10,008,847
                   Band 47   132,142.524   8.67   1,145,676
                   Band 50   14,269.627   7.10   101,314
                   Band 51   6,695.115   7.05   47,201
                   Band 52   1,241.975   7.17   8,905
                   Band 55   3,734.098   7.15   26,699
                   Band 56   204,224.951   5.29   1,080,350
                   Band 57   5,410.276   5.26   28,458
                   Band 59   5,741.243   5.23   30,027
    18,200,332.119       $ 160,218,751
                   ING MFS Total Return Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 1   4,541.523   $ 23.24   $ 105,545
                   Band 2   61,063.661   22.58   1,378,817
                   Band 3   2,835.367   21.47   60,875
                   Band 4   277,551.031   21.79   6,047,837
                   Band 5   214,568.089   21.63   4,641,108
                   Band 6   4,728,779.145   21.33   100,864,859
                   Band 7   3,671,981.233   21.17   77,735,843
                   Band 8   3,028,687.382   20.87   63,208,706
                   Band 9   643,128.007   20.72   13,325,612
                   Band 10   3,123,588.208   20.57   64,252,209
                   Band 11   4,110,239.772   20.42   83,931,096
                   Band 12   1,157,196.405   20.27   23,456,371
                   Band 13   3,103,639.835   20.13   62,476,270
                   Band 14   4,100,404.568   19.84   81,352,027
                   Band 15   953,779.486   19.69   18,779,918
                   Band 16   186,410.612   19.41   3,618,230
                   Band 17   1,865,660.702   19.27   35,951,282
                   Band 18   88,490.475   19.13   1,692,823
                   Band 19   205,397.525   18.85   3,871,743
                   Band 20   1,287,947.486   19.98   25,733,191
                   Band 21   348,106.899   19.55   6,805,490
                   Band 22   374.779   21.79   8,166
                   Band 23   5,408.053   21.33   115,354
                   Band 24   243.679   24.27   5,914
                   Band 25   66,213.694   22.91   1,516,956
                   Band 26   338,064.582   22.75   7,690,969
                   Band 27   147,059.097   21.79   3,204,418
                   Band 28   40,364.178   21.32   860,564
                   Band 29   298,427.011   21.16   6,314,716
                   Band 30   198,537.812   20.27   4,024,361

210

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING MFS Total Return Portfolio - Service Class            
(continued)            
                   Band 31   105,511.262   $ 19.83   $ 2,092,288
                   Band 32   3,419.101   19.02   65,031
                   Band 33   1,573.094   18.47   29,055
                   Band 34   13,127.309   18.08   237,342
                   Band 35   72,737.152   23.41   1,702,777
                   Band 36   11,141.078   22.75   253,460
                   Band 37   19,744.914   22.27   439,719
                   Band 38   370,388.319   10.73   3,974,267
                   Band 39   62,600.617   10.62   664,819
                   Band 40   15,999.056   10.53   168,470
                   Band 41   64,829.696   10.10   654,780
                   Band 42   72,679.380   9.99   726,067
                   Band 43   246,634.480   9.91   2,444,148
                   Band 44   31,838.286   9.13   290,684
                   Band 45   32,621.587   9.00   293,594
                   Band 46   1,984,552.284   8.60   17,067,150
                   Band 47   486,533.176   8.54   4,154,993
                   Band 49   55,330.353   7.77   429,917
                   Band 50   800.469   8.62   6,900
                   Band 51   2,708.579   8.55   23,158
                   Band 55   183.679   8.67   1,592
                   Band 56   251,662.828   7.87   1,980,586
                   Band 57   19,689.971   7.83   154,172
                   Band 58   3,638.778   7.81   28,419
    38,188,635.744       $ 740,914,658
                   ING MFS Total Return Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   444,932.031   $ 11.03   $ 4,907,600
                   Band 7   13,992.428   10.99   153,777
                   Band 8   3,717.144   10.92   40,591
                   Band 10   411,520.865   10.85   4,465,001
                   Band 11   23,070.177   10.82   249,619
                   Band 12   222,422.352   10.78   2,397,713
                   Band 13   16,490.217   8.69   143,300
                   Band 14   97,284.955   9.17   892,103
                   Band 15   426,503.496   9.15   3,902,507
                   Band 17   215,513.043   9.08   1,956,858
                   Band 20   954,315.590   10.71   10,220,720
                   Band 46   395,328.809   8.55   3,380,061
    3,225,091.107       $ 32,709,850

211

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING MFS Utilities Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   19,411.157   $ 11.51   $ 223,422
                   Band 4   148,397.446   11.40   1,691,731
                   Band 5   34,630.144   11.38   394,091
                   Band 6   4,123,842.872   11.34   46,764,378
                   Band 7   2,130,158.380   11.32   24,113,393
                   Band 8   3,363,382.239   11.28   37,938,952
                   Band 9   289,925.156   11.26   3,264,557
                   Band 10   4,480,383.376   11.23   50,314,705
                   Band 11   1,023,578.585   11.21   11,474,316
                   Band 12   300,770.105   11.19   3,365,617
                   Band 13   2,056,676.931   11.17   22,973,081
                   Band 14   2,883,147.043   11.13   32,089,427
                   Band 15   2,312,150.215   11.11   25,687,989
                   Band 16   290,678.613   11.07   3,217,812
                   Band 17   3,547,635.139   11.05   39,201,368
                   Band 18   64,482.766   11.03   711,245
                   Band 19   107,967.944   10.98   1,185,488
                   Band 20   906,505.592   11.15   10,107,537
                   Band 21   151,686.703   11.09   1,682,206
                   Band 25   5,868.526   11.55   67,781
                   Band 26   160,648.741   11.53   1,852,280
                   Band 27   44,479.072   11.40   507,061
                   Band 28   13,452.371   11.34   152,550
                   Band 29   298,673.254   11.32   3,380,981
                   Band 30   100,787.942   11.19   1,127,817
                   Band 31   41,108.059   11.13   457,533
                   Band 32   467.936   11.01   5,152
                   Band 34   170.879   10.87   1,857
                   Band 35   30,849.259   6.59   203,297
                   Band 36   1,533.989   6.58   10,094
                   Band 38   214,447.938   9.61   2,060,845
                   Band 39   86,396.766   6.57   567,627
                   Band 40   3,929.314   6.56   25,776
                   Band 41   39,783.053   11.19   445,172
                   Band 42   34,696.862   11.11   385,482
                   Band 43   126,412.203   11.05   1,396,855
                   Band 44   2,989.299   10.90   32,583
                   Band 45   11,668.029   10.84   126,481
                   Band 46   1,332,274.368   11.00   14,655,018
                   Band 47   238,487.829   10.94   2,609,057
                   Band 50   3,834.322   9.48   36,349
                   Band 51   6,291.528   9.40   59,140
                   Band 52   660.657   9.56   6,316
                   Band 54   1,637.298   9.43   15,440
                   Band 55   2,149.502   9.54   20,506
                   Band 56   198,515.663   6.26   1,242,708
                   Band 57   1,805.523   6.23   11,248
                   Band 59   3,100.990   6.19   19,195
                   Band 60   2,601.880   6.23   16,210
    31,245,133.458       $ 347,899,726

212

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units          Unit Value   Extended Value
                   ING Multi-Manager International Small Cap            
                       Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 4   11,400.746   $ 5.35   $ 60,994
                   Band 6   79,954.508                            5.35   427,757
                   Band 7   8,703.619                            5.35   46,564
                   Band 8   36,103.650                            5.34   192,793
                   Band 9   446.021                            5.34   2,382
                   Band 10   164,792.669                            5.34   879,993
                   Band 11   16,732.041                            5.34   89,349
                   Band 13   19,014.563                            5.33   101,348
                   Band 14   7,958.538                            5.33   42,419
                   Band 15   50,967.861                            5.33   271,659
                   Band 16   6,711.934                            5.32   35,707
                   Band 17   31,280.855                            5.32   166,414
                   Band 20   18,997.507                            5.33   101,257
                   Band 26   20.295                            5.36   109
                   Band 29   422.277                            5.35   2,259
                   Band 41   2,061.263                            5.33   10,987
                   Band 46   24,004.812                            5.32   127,706
                   Band 47   2,964.122                            5.31   15,739
                   Band 56   7,432.963                            5.36   39,841
                   Band 57   2,375.335                            5.34   12,684
                   Band 59   1,501.620                            5.32   7,989
    493,847.199       $ 2,635,950
                   ING Oppenheimer Active Asset Allocation Portfolio -            
                       Service Class            
                   Contracts in accumulation period:            
                   Band 6   98,549.270   $ 8.44   $ 831,756
                   Band 7   6,345.588                            8.44   53,557
                   Band 8   24,362.220                            8.44   205,617
                   Band 10   162,978.610                            8.43   1,373,910
                   Band 11   7,774.405                            8.43   65,538
                   Band 13   18,158.766                            8.43   153,078
                   Band 14   4,125.894                            8.43   34,781
                   Band 15   40,405.573                            8.43   340,619
                   Band 17   14,648.518                            8.42   123,341
                   Band 20   1,603.202                            8.43   13,515
                   Band 46   26,453.369                            8.42   222,737
                   Band 47   1,685.149                            8.41   14,172
                   Band 56   4,521.761                            8.45   38,209
    411,612.325       $ 3,470,830

213

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING Oppenheimer Main Street Portfolio® - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   51,915.859   $ 16.09   $ 835,326
                   Band 3   1,565.171   15.30   23,947
                   Band 4   102,335.508   15.52   1,588,247
                   Band 5   65,640.573   15.41   1,011,521
                   Band 6   1,941,992.582   15.20   29,518,287
                   Band 7   1,398,146.585   15.08   21,084,051
                   Band 8   1,977,942.301   14.87   29,412,002
                   Band 9   283,598.536   14.76   4,185,914
                   Band 10   777,721.810   14.65   11,393,625
                   Band 11   2,346,196.353   14.55   34,137,157
                   Band 12   430,559.446   14.44   6,217,278
                   Band 13   1,047,409.067   14.34   15,019,846
                   Band 14   1,315,650.698   14.13   18,590,144
                   Band 15   264,098.594   14.03   3,705,303
                   Band 16   32,486.504   13.83   449,288
                   Band 17   391,293.720   13.73   5,372,463
                   Band 18   17,301.036   13.63   235,813
                   Band 19   55,816.735   13.43   749,619
                   Band 20   345,090.973   14.24   4,914,095
                   Band 21   98,156.107   13.93   1,367,315
                   Band 22   412.167   15.52   6,397
                   Band 23   5,668.503   15.20   86,161
                   Band 25   46,536.768   16.32   759,480
                   Band 26   30,101.780   16.21   487,950
                   Band 27   13,214.992   15.52   205,097
                   Band 28   7,003.677   15.19   106,386
                   Band 29   38,182.223   15.08   575,788
                   Band 30   21,704.429   14.44   313,412
                   Band 31   17,023.394   14.13   240,541
                   Band 34   247.756   12.88   3,191
                   Band 38   17,364.985   7.11   123,465
                   Band 41   12,661.317   8.71   110,280
                   Band 42   198.775   8.61   1,711
                   Band 43   18,610.270   8.54   158,932
                   Band 45   3,337.025   7.50   25,028
                   Band 46   275,564.113   7.18   1,978,550
                   Band 47   26,984.322   7.14   192,668
                   Band 50   1,666.230   7.00   11,664
                   Band 56   49,509.069   6.49   321,314
                   Band 57   1,707.319   6.46   11,029
                   Band 60   99.175   6.46   641
    13,532,716.447       $ 195,530,926
 
 
 
 
                                                                                                                               214            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING Oppenheimer Main Street Portfolio® - Service 2            
                       Class            
                   Contracts in accumulation period:            
                   Band 6   54,769.934   $ 9.66   $ 529,078
                   Band 7   1,935.483   9.63   18,639
                   Band 10   22,143.196   9.51   210,582
                   Band 12   23,731.826   9.45   224,266
                   Band 14   6,395.026   7.68   49,114
                   Band 15   60,005.065   7.66   459,639
                   Band 17   5,996.226   7.61   45,631
                   Band 20   97,197.766   9.39   912,687
                   Band 46   25,629.228   7.14   182,993
    297,803.750       $ 2,632,629
                   ING PIMCO Core Bond Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 1   2,473.067   $ 16.97   $ 41,968
                   Band 2   149,919.875   16.49   2,472,179
                   Band 3   9,021.974   15.68   141,465
                   Band 4   648,190.833   15.91   10,312,716
                   Band 5   373,708.552   15.80   5,904,595
                   Band 6   16,888,378.900   15.57   262,952,059
                   Band 7   8,505,213.841   15.46   131,490,606
                   Band 8   10,313,406.970   15.24   157,176,322
                   Band 9   1,530,241.887   15.13   23,152,560
                   Band 10   27,390,667.760   15.02   411,407,830
                   Band 11   5,969,432.039   14.91   89,004,232
                   Band 12   1,830,575.253   14.80   27,092,514
                   Band 13   10,172,224.820   14.70   149,531,705
                   Band 14   13,682,366.450   14.49   198,257,490
                   Band 15   8,442,286.881   14.38   121,400,085
                   Band 16   1,210,353.894   14.17   17,150,715
                   Band 17   9,592,660.613   14.07   134,968,735
                   Band 18   248,203.525   13.97   3,467,403
                   Band 19   490,238.351   13.77   6,750,582
                   Band 20   3,680,967.040   14.59   53,705,309
                   Band 21   851,914.445   14.28   12,165,338
                   Band 25   84,050.802   16.73   1,406,170
                   Band 26   1,356,952.018   16.61   22,538,973
                   Band 27   340,332.120   15.91   5,414,684
                   Band 28   99,573.410   15.57   1,550,358
                   Band 29   1,503,501.158   15.45   23,229,093
                   Band 30   576,714.239   14.80   8,535,371
                   Band 31   266,686.731   14.48   3,861,624
                   Band 32   6,017.831   13.88   83,527
                   Band 33   2,011.677   13.49   27,138
                   Band 34   3,457.211   13.20   45,635
                   Band 35   60,562.462   17.10   1,035,618
                   Band 36   16,666.758   16.61   276,835

215

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract              Units   Unit Value   Extended Value
                   ING PIMCO Core Bond Portfolio - Service Class            
(continued)            
                   Band 37   2,755.260   $ 16.26   $ 44,801
                   Band 38   1,348,557.564   12.44   16,776,056
                   Band 39   19,911.287   12.31   245,108
                   Band 40   14,175.985   12.20   172,947
                   Band 41   206,997.985   11.97   2,477,766
                   Band 42   202,341.574   11.84   2,395,724
                   Band 43   704,739.997   11.74   8,273,648
                   Band 44   39,709.779   11.33   449,912
                   Band 45   43,036.996   11.22   482,875
                   Band 46   13,368,895.110   11.11   148,528,425
                   Band 47   1,650,532.105   11.04   18,221,874
                   Band 50   13,833.657   11.46   158,534
                   Band 51   9,830.845   11.37   111,777
                   Band 52   4,910.646   11.56   56,767
                   Band 53   1,368.856   11.49   15,728
                   Band 55   86,636.402   11.53   998,918
                   Band 56   2,401,660.656   10.16   24,400,872
                   Band 57   183,015.239   10.11   1,850,284
                   Band 58   3,113.490   10.08   31,384
                   Band 59   7,572.321   10.05   76,102
                   Band 60   22,139.476   10.12   224,051
    146,634,708.617       $ 2,112,544,987
                   ING PIMCO Core Bond Portfolio - Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   942,777.587   $ 12.46   $ 11,747,009
                   Band 7   59,735.174   12.42   741,911
                   Band 8   2,780.061   12.34   34,306
                   Band 10   888,472.258   12.26   10,892,670
                   Band 11   10,358.076   12.22   126,576
                   Band 12   475,011.950   12.18   5,785,646
                   Band 13   3,742.035   11.22   41,986
                   Band 14   143,827.023   11.23   1,615,177
                   Band 15   316,257.138   11.20   3,542,080
                   Band 17   318,322.148   11.12   3,539,742
                   Band 20   1,368,226.382   12.10   16,555,539
                   Band 46   615,424.592   11.03   6,788,133
    5,144,934.424       $ 61,410,775

216

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING PIMCO High Yield Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 1   53.972   $ 9.76   $ 527
                   Band 2   43,228.862                            9.44   408,080
                   Band 4   235,757.752                            9.33   2,199,620
                   Band 5   231,109.803                            9.31   2,151,632
                   Band 6   4,317,112.848                            9.26   39,976,465
                   Band 7   3,714,546.976                            9.24   34,322,414
                   Band 8   2,182,503.116                            9.20   20,079,029
                   Band 9   619,342.289                            9.18   5,685,562
                   Band 10   3,338,097.929                            9.15   30,543,596
                   Band 11   3,078,712.322                            9.13   28,108,643
                   Band 12   1,037,281.701                            9.11   9,449,636
                   Band 13   2,840,103.272                            9.09   25,816,539
                   Band 14   5,369,702.505                            9.05   48,595,808
                   Band 15   1,056,909.845                            9.03   9,543,896
                   Band 16   177,293.971                            8.98   1,592,100
                   Band 17   2,111,385.333                            8.96   18,918,013
                   Band 18   46,051.589                            8.94   411,701
                   Band 19   308,901.142                            8.90   2,749,220
                   Band 20   1,757,351.002                            9.07   15,939,174
                   Band 21   396,372.233                            9.00   3,567,350
                   Band 24   223.441                            9.67   2,161
                   Band 25   40,655.201                            9.49   385,818
                   Band 26   372,409.209                            9.46   3,522,991
                   Band 27   105,447.633                            9.33   983,826
                   Band 28   62,594.130                            9.26   579,622
                   Band 29   355,072.350                            9.24   3,280,869
                   Band 30   131,539.895                            9.11   1,198,328
                   Band 31   139,310.959                            9.05   1,260,764
                   Band 32   247.867                            8.92   2,211
                   Band 33   2,576.245                            8.84   22,774
                   Band 34   933.108                            8.78   8,193
                   Band 35   113,335.868                            8.96   1,015,489
                   Band 36   10,079.297                            8.89   89,605
                   Band 37   15,573.840                            8.84   137,673
                   Band 38   217,607.894                            8.88   1,932,358
                   Band 39   31,362.577                            8.81   276,304
                   Band 40   22,199.349                            8.76   194,466
                   Band 41   64,516.616                            9.11   587,746
                   Band 42   59,381.914                            9.03   536,219
                   Band 43   150,254.238                            8.96   1,346,278
                   Band 44   20,777.435                            8.81   183,049
                   Band 45   23,063.904                            8.75   201,809
                   Band 46   888,722.301                            8.30   7,376,395
                   Band 47   149,880.902                            8.25   1,236,517
                   Band 51   494.382                            8.15   4,029
                   Band 55   25,209.421                            8.27   208,482
                   Band 56   17,932.541                            7.69   137,901
                   Band 57   226.669                            7.65   1,734
                   Band 60   796.551                            7.66   6,102
    35,884,244.199       $ 326,778,718

217

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units          Unit Value   Extended Value
                   ING Pioneer Fund Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   844.695   $ 8.55   $ 7,222
                   Band 3   782.556                            8.44   6,605
                   Band 4   38,597.652                            8.48   327,308
                   Band 5   52,672.783                            8.46   445,612
                   Band 6   896,824.601                            8.43   7,560,231
                   Band 7   449,248.278                            8.41   3,778,178
                   Band 8   209,564.844                            8.38   1,756,153
                   Band 9   30,666.968                            8.37   256,683
                   Band 10   574,371.448                            8.35   4,796,002
                   Band 11   226,183.029                            8.33   1,884,105
                   Band 12   167,298.180                            8.32   1,391,921
                   Band 13   362,301.208                            8.30   3,007,100
                   Band 14   775,329.397                            8.27   6,411,974
                   Band 15   210,717.713                            8.26   1,740,528
                   Band 16   21,859.550                            8.23   179,904
                   Band 17   356,416.152                            8.21   2,926,177
                   Band 18   10,135.940                            8.20   83,115
                   Band 19   52,473.581                            8.16   428,184
                   Band 20   349,591.749                            8.29   2,898,116
                   Band 21   46,021.470                            8.24   379,217
                   Band 25   3,875.591                            8.59   33,291
                   Band 26   46,212.726                            8.57   396,043
                   Band 27   42,648.323                            8.48   361,658
                   Band 28   9,198.361                            8.43   77,542
                   Band 29   25,983.183                            8.41   218,519
                   Band 30   21,324.847                            8.32   177,423
                   Band 31   19,743.832                            8.27   163,281
                   Band 32   3,000.407                            8.18   24,543
                   Band 35   30,069.883                            8.63   259,503
                   Band 36   4,292.113                            8.57   36,783
                   Band 38   143,994.973                            8.55   1,231,157
                   Band 39   17,116.842                            8.49   145,322
                   Band 40   25,852.310                            8.44   218,193
                   Band 41   9,251.144                            8.32   76,970
                   Band 42   10,196.630                            8.26   84,224
                   Band 43   22,547.058                            8.21   185,111
                   Band 45   761.373                            8.06   6,137
                   Band 46   148,471.544                            8.18   1,214,497
                   Band 47   45,235.323                            8.13   367,763
                   Band 50   537.521                            7.43   3,994
                   Band 55   3,225.574                            7.48   24,127
                   Band 56   24,454.460                            6.83   167,024
    5,489,895.812       $ 45,737,440

218

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Pioneer Mid Cap Value Portfolio - Service Class            
                   Currently payable annuity contracts:   6,569.350   $ 8.41   $ 55,248
                   Contracts in accumulation period:            
                   Band 1   9,468.026                            7.77   73,567
                   Band 2   789,725.161                            8.41   6,641,589
                   Band 3   16,293.742                            8.30   135,238
                   Band 4   251,223.004                            8.33   2,092,688
                   Band 5   239,154.819                            8.31   1,987,377
                   Band 6   8,408,546.714                            8.28   69,622,767
                   Band 7   5,633,124.654                            8.27   46,585,941
                   Band 8   4,116,452.368                            8.24   33,919,568
                   Band 9   786,881.466                            8.22   6,468,166
                   Band 10   6,906,770.113                            8.20   56,635,515
                   Band 11   4,340,222.156                            8.19   35,546,419
                   Band 12   1,217,637.690                            8.17   9,948,100
                   Band 13   3,832,716.222                            8.16   31,274,964
                   Band 14   7,802,110.889                            8.13   63,431,162
                   Band 15   2,370,996.306                            8.11   19,228,780
                   Band 16   217,087.156                            8.08   1,754,064
                   Band 17   3,996,449.139                            8.07   32,251,345
                   Band 18   80,413.004                            8.05   647,325
                   Band 19   346,626.471                            8.02   2,779,944
                   Band 20   3,920,525.568                            8.14   31,913,078
                   Band 21   471,118.796                            8.10   3,816,062
                   Band 25   46,932.129                            8.44   396,107
                   Band 26   181,447.328                            8.42   1,527,787
                   Band 27   31,673.814                            8.33   263,843
                   Band 28   5,298.850                            8.28   43,874
                   Band 29   164,898.751                            8.27   1,363,713
                   Band 30   29,380.573                            8.17   240,039
                   Band 31   101,456.296                            8.13   824,840
                   Band 35   85,884.026                            8.48   728,297
                   Band 36   23,770.464                            8.42   200,147
                   Band 37   12,720.001                            8.37   106,466
                   Band 38   574,693.501                            8.41   4,833,172
                   Band 39   222,771.290                            8.34   1,857,913
                   Band 40   49,772.651                            8.30   413,113
                   Band 41   31,042.614                            8.18   253,929
                   Band 42   58,987.127                            8.11   478,386
                   Band 43   127,675.084                            8.07   1,030,338
                   Band 44   26,829.328                            7.96   213,561
                   Band 45   5,301.391                            7.92   41,987
                   Band 46   2,485,007.652                            8.04   19,979,462
                   Band 47   262,349.621                            7.99   2,096,173
                   Band 50   9,892.098                            7.68   75,971
                   Band 51   5,453.235                            7.62   41,554
                   Band 52   327.121                            7.75   2,535
                   Band 54   1,141.080                            7.64   8,718
                   Band 55   1,221.340                            7.73   9,441
                   Band 56   61,760.003                            6.95   429,232
                   Band 57   1,296.582                            6.91   8,959
                   Band 59   5,991.814                            6.88   41,224
    60,375,088.578       $ 494,319,688

219

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units   Unit Value   Extended Value
                   ING T. Rowe Price Capital Appreciation Portfolio -            
Service Class            
                   Currently payable annuity contracts:   7,329.479   $ 37.95   $ 278,154
                   Contracts in accumulation period:            
                   Band 1   16,461.849   39.50   650,243
                   Band 2   333,959.885   37.95   12,673,778
                   Band 3   11,328.402   35.36   400,572
                   Band 4   245,136.168   36.14   8,859,221
                   Band 5   202,422.629   35.73   7,232,561
                   Band 6   8,278,461.718   35.06   290,242,868
                   Band 7   4,433,308.952   34.67   153,702,821
                   Band 8   4,590,192.610   34.02   156,158,353
                   Band 9   600,421.712   33.63   20,192,182
                   Band 10   9,041,618.912   33.29   300,995,494
                   Band 11   3,579,728.070   32.96   117,987,837
                   Band 12   1,168,271.668   32.62   38,109,022
                   Band 13   4,902,623.437   32.30   158,354,737
                   Band 14   5,666,248.940   31.65   179,336,779
                   Band 15   3,106,564.378   31.33   97,328,662
                   Band 16   454,095.324   30.70   13,940,726
                   Band 17   3,963,913.734   30.39   120,463,338
                   Band 18   124,365.637   30.08   3,740,918
                   Band 19   383,153.029   29.47   11,291,520
                   Band 20   2,269,322.306   31.97   72,550,234
                   Band 21   355,783.681   31.01   11,032,852
                   Band 25   64,132.535   38.73   2,483,853
                   Band 26   769,031.229   9.30   7,151,990
                   Band 27   274,173.771   9.20   2,522,399
                   Band 28   69,537.920   9.15   636,272
                   Band 29   1,033,418.698   9.13   9,435,113
                   Band 30   234,640.239   9.03   2,118,801
                   Band 31   153,662.900   8.98   1,379,893
                   Band 32   1,819.764   8.88   16,160
                   Band 33   548.192   8.81   4,830
                   Band 34   3,614.860   8.76   31,666
                   Band 35   190,714.348   7.30   1,392,215
                   Band 36   34,009.551   7.29   247,930
                   Band 37   1,664.569   7.28   12,118
                   Band 38   1,531,767.964   8.31   12,728,992
                   Band 39   187,769.130   7.28   1,366,959
                   Band 40   66,211.387   7.27   481,357
                   Band 41   211,306.763   9.03   1,908,100
                   Band 42   74,198.022   8.96   664,814
                   Band 43   459,334.319   8.91   4,092,669
                   Band 44   11,292.515   8.79   99,261
                   Band 45   96,955.566   8.74   847,392
                   Band 46   12,124,597.630   8.68   105,241,507
                   Band 47   2,081,470.572   8.62   17,942,276
                   Band 49   382,200.631   7.26   2,774,777

220

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING T. Rowe Price Capital Appreciation Portfolio -            
                       Service Class (continued)            
                   Band 50   13,795.301   $ 8.16   $ 112,570
                   Band 51   45,090.781   8.10   365,235
                   Band 52   49,763.640   8.24   410,052
                   Band 53   4,668.737   8.19   38,237
                   Band 54   4,314.798   8.12   35,036
                   Band 55   19,138.056   8.22   157,315
                   Band 56   1,155,828.484   7.41   8,564,689
                   Band 57   104,547.814   7.37   770,517
                   Band 58   6,620.902   7.35   48,664
                   Band 59   18,502.053   7.33   135,620
                   Band 60   88,085.825   7.37   649,193
                   Band 62   4,055.891   7.33   29,730
    75,307,197.877       $ 1,962,421,074
                   ING T. Rowe Price Capital Appreciation Portfolio -            
                       Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   1,098,377.519   $ 12.44   $ 13,663,816
                   Band 7   1,190.142   12.40   14,758
                   Band 10   819,836.262   12.24   10,034,796
                   Band 11   16,400.502   12.20   200,086
                   Band 12   546,351.475   12.16   6,643,634
                   Band 13   5,343.829   8.77   46,865
                   Band 14   202,170.559   9.69   1,959,033
                   Band 15   763,647.019   9.66   7,376,830
                   Band 17   296,319.485   9.59   2,841,704
                   Band 20   1,543,755.735   12.08   18,648,569
                   Band 46   940,792.885   8.62   8,109,635
    6,234,185.412       $ 69,539,726
                   ING T. Rowe Price Equity Income Portfolio - Service            
                       Class            
                   Currently payable annuity contracts:   6,413.280   $23.99 to $24.98   $ 154,071
                   Contracts in accumulation period:            
                   Band 1   55,100.871   24.98   1,376,420
                   Band 2   729,808.587   23.99   17,508,108
                   Band 3   17,095.539   22.36   382,256
                   Band 4   163,315.139   22.85   3,731,751
                   Band 5   124,572.509   22.59   2,814,093
                   Band 6   3,367,200.333   22.17   74,650,831
                   Band 7   2,795,600.428   21.92   61,279,561
                   Band 8   1,752,664.803   21.51   37,699,820
                   Band 9   304,958.413   21.26   6,483,416
                   Band 10   2,853,747.602   21.05   60,071,387
                   Band 11   2,092,367.866   20.84   43,604,946
                   Band 12   691,572.311   20.63   14,267,137
                   Band 13   1,928,955.767   20.42   39,389,277
                   Band 14   3,501,443.772   20.01   70,063,890
                   Band 15   849,405.954   19.81   16,826,732

221

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING T. Rowe Price Equity Income Portfolio - Service            
                       Class (continued)            
                   Band 16   121,126.089   $ 19.41   $ 2,351,057
                   Band 17   1,638,713.783   19.21   31,479,692
                   Band 18   58,827.776   19.02   1,118,904
                   Band 19   194,090.892   18.63   3,615,913
                   Band 20   1,310,977.258   20.21   26,494,850
                   Band 21   264,548.755   19.61   5,187,801
                   Band 24   42.495   26.53   1,127
                   Band 25   40,019.261   24.48   979,672
                   Band 26   289,597.656   8.86   2,565,835
                   Band 27   60,534.753   8.73   528,468
                   Band 28   34,422.585   8.67   298,444
                   Band 29   271,992.083   8.65   2,352,732
                   Band 30   125,025.661   8.53   1,066,469
                   Band 31   50,204.715   8.47   425,234
                   Band 33   308.861   8.27   2,554
                   Band 35   25,751.751   8.26   212,709
                   Band 36   16,029.920   8.20   131,445
                   Band 37   55,955.962   8.15   456,041
                   Band 38   426,557.956   8.18   3,489,244
                   Band 39   66,174.015   8.12   537,333
                   Band 40   61,796.929   8.08   499,319
                   Band 41   45,019.421   8.53   384,016
                   Band 42   65,462.456   8.45   553,158
                   Band 43   119,346.437   8.39   1,001,317
                   Band 44   12,523.481   8.25   103,319
                   Band 45   9,589.300   8.12   77,865
                   Band 46   1,818,539.739   7.65   13,911,829
                   Band 47   261,369.428   7.60   1,986,408
                   Band 50   2,116.381   7.33   15,513
                   Band 51   6,570.219   7.27   47,765
                   Band 52   2,813.521   7.39   20,792
                   Band 55   1,056.141   7.37   7,784
                   Band 56   280,187.491   6.68   1,871,652
                   Band 57   136.260   6.65   906
                   Band 60   452.576   6.65   3,010
    28,972,105.181       $ 554,083,873
                   ING T. Rowe Price Equity Income Portfolio - Service 2            
                       Class            
                   Contracts in accumulation period:            
                   Band 6   425,365.762   $ 10.56   $ 4,491,862
                   Band 8   589.858   10.46   6,170
                   Band 10   288,172.484   10.40   2,996,994
                   Band 11   31,753.760   10.36   328,969
                   Band 12   166,365.985   10.33   1,718,561
                   Band 14   50,261.937   8.42   423,206
                   Band 15   183,918.881   8.40   1,544,919
                   Band 17   90,065.385   8.34   751,145
                   Band 20   605,179.840   10.26   6,209,145
                   Band 46   222,819.496   7.60   1,693,428
    2,064,493.388       $ 20,164,399

222

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING Templeton Global Growth Portfolio - Service            
                       Class            
                   Currently payable annuity contracts:   1,418.693   $ 16.96   $ 24,061
                   Contracts in accumulation period:            
                   Band 1   3,422.006   17.52   59,954
                   Band 2   377,733.240   16.96   6,406,356
                   Band 3   8,636.007   16.02   138,349
                   Band 4   147,158.123   16.27   2,394,263
                   Band 5   83,731.489   16.12   1,349,752
                   Band 6   1,712,449.652   15.88   27,193,700
                   Band 7   1,551,008.850   15.73   24,397,369
                   Band 8   1,563,733.426   15.49   24,222,231
                   Band 9   369,472.102   15.34   5,667,702
                   Band 10   1,823,433.072   15.22   27,752,651
                   Band 11   875,862.445   15.09   13,216,764
                   Band 12   401,369.949   14.97   6,008,508
                   Band 13   1,253,472.669   14.85   18,614,069
                   Band 14   1,778,368.945   14.60   25,964,187
                   Band 15   472,477.403   14.48   6,841,473
                   Band 16   77,144.084   14.25   1,099,303
                   Band 17   994,246.359   14.13   14,048,701
                   Band 18   24,519.005   14.01   343,511
                   Band 19   83,741.006   13.78   1,153,951
                   Band 20   632,626.369   14.72   9,312,260
                   Band 21   160,917.289   14.36   2,310,772
                   Band 25   77,020.157   17.21   1,325,517
                   Band 26   110,701.857   8.44   934,324
                   Band 27   12,842.242   8.35   107,233
                   Band 28   15,414.992   8.30   127,944
                   Band 29   78,314.678   8.28   648,446
                   Band 30   14,595.216   8.19   119,535
                   Band 31   13,985.490   8.15   113,982
                   Band 32   191.546   8.06   1,544
                   Band 33   971.281   8.00   7,770
                   Band 34   70.994   7.95   564
                   Band 38   135,799.109   7.07   960,100
                   Band 41   33,346.165   8.19   273,105
                   Band 42   7,272.514   8.13   59,126
                   Band 43   19,249.335   8.09   155,727
                   Band 44   1,087.447   7.98   8,678
                   Band 45   15,965.445   7.93   126,606
                   Band 46   948,729.787   7.76   7,362,143
                   Band 47   144,651.875   7.71   1,115,266
                   Band 50   8,274.960   6.96   57,594
                   Band 51   1,051.200   6.90   7,253
                   Band 52   1,291.883   7.02   9,069
                   Band 56   384,128.506   6.20   2,381,597
                   Band 57   674.761   6.16   4,157
                   Band 59   3,346.253   6.13   20,513
                   Band 60   7,185.963   6.17   44,337
    16,433,105.839       $ 234,492,017

223

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING Templeton Global Growth Portfolio - Service 2            
                       Class            
                   Contracts in accumulation period:            
                   Band 6   55,483.426   $ 11.69   $ 648,601
                   Band 7   623.523   11.65   7,264
                   Band 10   46,059.167   11.50   529,680
                   Band 12   32,061.850   11.43   366,467
                   Band 13   5,126.564   7.85   40,244
                   Band 14   8,201.791   8.18   67,091
                   Band 15   28,724.398   8.16   234,391
                   Band 17   12,785.375   8.10   103,562
                   Band 20   121,941.919   11.35   1,384,041
                   Band 46   46,286.920   7.72   357,335
    357,294.933       $ 3,738,676
                   ING Van Kampen Capital Growth Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   11,811.388   $ 7.21   $ 85,160
                   Band 3   3,308.635   7.04   23,293
                   Band 4   45,504.519   7.09   322,627
                   Band 5   67,636.386   7.07   478,189
                   Band 6   2,227,821.920   7.02   15,639,310
                   Band 7   2,066,751.663   7.00   14,467,262
                   Band 8   401,792.383   6.95   2,792,457
                   Band 9   179,335.815   6.93   1,242,797
                   Band 10   1,525,359.888   6.90   10,524,983
                   Band 11   771,766.493   6.88   5,309,753
                   Band 12   584,039.246   6.86   4,006,509
                   Band 13   1,114,574.401   6.83   7,612,543
                   Band 14   2,240,049.214   6.79   15,209,934
                   Band 15   474,811.494   6.76   3,209,726
                   Band 16   49,412.265   6.72   332,050
                   Band 17   1,044,646.060   6.70   6,999,129
                   Band 18   24,653.546   6.67   164,439
                   Band 19   126,921.083   6.63   841,487
                   Band 20   1,834,220.720   6.81   12,491,043
                   Band 21   201,015.564   6.74   1,354,845
                   Band 25   13,093.332   7.26   95,058
                   Band 26   152,235.650   7.88   1,199,617
                   Band 27   84,726.286   7.80   660,865
                   Band 28   14,700.215   7.75   113,927
                   Band 29   109,010.685   7.74   843,743
                   Band 30   62,164.201   7.65   475,556
                   Band 31   87,197.394   7.61   663,572
                   Band 33   191.965   7.47   1,434
                   Band 34   4,750.106   7.43   35,293
                   Band 35   73,980.623   5.52   408,373
                   Band 36   3,769.118   5.51   20,768
                   Band 37   1,503.375   5.50   8,269

224

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING Van Kampen Capital Growth Portfolio - Service            
                       Class (continued)            
                   Band 38   40,985.247   $ 6.61   $ 270,912
                   Band 39   12,960.891   5.50   71,285
                   Band 40   23,669.794   5.49   129,947
                   Band 41   15,763.086   7.65   120,588
                   Band 42   21,340.449   7.60   162,187
                   Band 43   24,958.750   7.55   188,439
                   Band 45   802.383   7.41   5,946
                   Band 46   273,222.883   6.83   1,866,112
                   Band 47   34,865.697   6.79   236,738
                   Band 54   3,833.868   6.50   24,920
                   Band 55   2,818.664   6.58   18,547
                   Band 56   9,782.368   5.36   52,433
                   Band 57   12,999.940   5.33   69,290
                   Band 60   2,453.546   5.33   13,077
    16,083,213.199       $ 110,864,432
                   ING Van Kampen Capital Growth Portfolio - Service 2            
                       Class            
                   Contracts in accumulation period:            
                   Band 12   1,379.387   $ 8.39   $ 11,573
                   Band 20   36.072   8.34   301
    1,415.459       $ 11,874
                   ING Van Kampen Global Franchise Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 1   89.331   $ 12.74   $ 1,138
                   Band 2   7,167.606   12.57   90,097
                   Band 3   609.530   12.28   7,485
                   Band 4   50,398.210   12.36   622,922
                   Band 5   35,502.588   12.32   437,392
                   Band 6   2,715,368.821   12.24   33,236,114
                   Band 7   1,204,901.920   12.20   14,699,803
                   Band 8   1,078,572.138   12.11   13,061,509
                   Band 9   126,637.176   12.07   1,528,511
                   Band 10   3,388,662.624   12.03   40,765,611
                   Band 11   588,338.268   11.99   7,054,176
                   Band 12   225,513.336   11.95   2,694,884
                   Band 13   1,134,915.656   11.91   13,516,845
                   Band 14   2,022,868.892   11.83   23,930,539
                   Band 15   932,106.908   11.79   10,989,540
                   Band 16   114,514.790   11.71   1,340,968
                   Band 17   1,599,531.236   11.67   18,666,530
                   Band 18   12,990.881   11.63   151,084
                   Band 19   129,634.223   11.55   1,497,275
                   Band 20   638,483.157   11.87   7,578,795
                   Band 21   100,793.779   11.75   1,184,327
                   Band 25   10,425.352   12.66   131,985
                   Band 26   96,721.287   9.87   954,639

225

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING Van Kampen Global Franchise Portfolio - Service            
                       Class (continued)            
                   Band 27   26,049.692   $ 9.76   $ 254,245
                   Band 28   4,898.268   9.71   47,562
                   Band 29   155,142.542   9.69   1,503,331
                   Band 30   31,245.849   9.58   299,335
                   Band 31   26,934.543   9.52   256,417
                   Band 34   3,266.205   9.30   30,376
                   Band 38   56,750.738   8.82   500,542
                   Band 41   19,518.028   9.58   186,983
                   Band 42   435.502   9.51   4,142
                   Band 43   42,957.830   9.46   406,381
                   Band 44   473.399   9.33   4,417
                   Band 45   14,905.578   9.28   138,324
                   Band 46   1,522,406.475   9.89   15,056,600
                   Band 47   175,049.908   9.83   1,720,741
                   Band 50   1,984.712   8.65   17,168
                   Band 51   40,646.445   8.59   349,153
                   Band 52   430.709   8.73   3,760
                   Band 53   804.277   8.67   6,973
                   Band 55   4,801.054   8.71   41,817
                   Band 56   88,607.163   7.19   637,086
                   Band 57   5,117.860   7.15   36,593
                   Band 59   6,197.738   7.11   44,066
                   Band 60   181.508   7.16   1,300
    18,443,553.732       $ 215,689,481
                   ING Van Kampen Global Franchise Portfolio - Service            
                       2 Class            
                   Contracts in accumulation period:            
                   Band 6   767,388.505   $ 13.05   $ 10,014,420
                   Band 7   6,588.247   13.01   85,713
                   Band 8   463.087   12.92   5,983
                   Band 10   659,049.874   12.84   8,462,200
                   Band 11   14,885.559   12.80   190,535
                   Band 12   263,310.893   12.76   3,359,847
                   Band 13   10,782.729   10.00   107,827
                   Band 14   125,799.248   10.63   1,337,246
                   Band 15   703,532.934   10.61   7,464,484
                   Band 17   264,486.593   10.53   2,785,044
                   Band 20   1,109,217.986   12.68   14,064,884
                   Band 46   550,687.825   9.83   5,413,261
    4,476,193.480       $ 53,291,444

226

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING Van Kampen Global Tactical Asset Allocation            
                       Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 6   60,783.181   $ 8.57   $ 520,912
                   Band 7   903.372   8.57   7,742
                   Band 8   58,890.951   8.57   504,695
                   Band 10   83,471.826   8.56   714,519
                   Band 11   6,878.417   8.56   58,879
                   Band 13   27,689.088   8.56   237,019
                   Band 14   3,826.467   8.56   32,755
                   Band 15   26,113.495   8.56   223,532
                   Band 16   238.927   8.55   2,043
                   Band 17   8,202.544   8.55   70,132
                   Band 19   235.064   8.55   2,010
                   Band 20   1,823.243   8.56   15,607
                   Band 46   25,787.917   8.55   220,487
                   Band 47   3,751.459   8.54   32,037
                   Band 56   9,686.421   8.58   83,109
    318,282.372       $ 2,725,478
                   ING Van Kampen Growth and Income Portfolio -            
                       Service Class            
                   Currently payable annuity contracts:   1,384.882   $ 23.00   $ 31,852
                   Contracts in accumulation period:            
                   Band 1   3,717.851   23.72   88,187
                   Band 2   366,583.421   23.00   8,431,419
                   Band 3   10,369.486   21.79   225,951
                   Band 4   167,823.139   22.16   3,718,961
                   Band 5   100,211.784   21.96   2,200,651
                   Band 6   2,778,826.860   21.66   60,189,390
                   Band 7   1,628,582.771   21.46   34,949,386
                   Band 8   3,137,303.728   21.16   66,385,347
                   Band 9   286,443.361   20.97   6,006,717
                   Band 10   1,880,515.614   20.81   39,133,530
                   Band 11   3,235,909.626   20.65   66,821,534
                   Band 12   443,563.329   20.49   9,088,613
                   Band 13   1,558,546.655   20.33   31,685,253
                   Band 14   1,892,826.686   20.02   37,894,390
                   Band 15   500,727.970   19.86   9,944,457
                   Band 16   66,848.464   19.56   1,307,556
                   Band 17   795,559.274   19.40   15,433,850
                   Band 18   31,032.872   19.25   597,383
                   Band 19   74,195.675   18.96   1,406,750
                   Band 20   550,027.955   20.17   11,094,064
                   Band 21   146,256.047   19.71   2,882,707
                   Band 24   48.625   24.84   1,208
                   Band 25   29,396.715   23.36   686,707
                   Band 26   180,061.832   8.74   1,573,740
                   Band 27   89,089.927   8.64   769,737
                   Band 28   9,959.533   8.59   85,552

227

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING Van Kampen Growth and Income Portfolio -            
                       Service Class (continued)            
                   Band 29   226,283.266   $ 8.57   $ 1,939,248
                   Band 30   64,900.265   8.48   550,354
                   Band 31   36,969.590   8.43   311,654
                   Band 33   325.337   8.28   2,694
                   Band 38   33,018.640   7.77   256,555
                   Band 41   14,891.770   8.48   126,282
                   Band 42   8,210.749   8.42   69,135
                   Band 43   36,936.728   8.37   309,160
                   Band 45   3,432.524   8.21   28,181
                   Band 46   1,324,476.738   8.29   10,979,912
                   Band 47   153,809.595   8.23   1,265,853
                   Band 50   555.527   7.64   4,244
                   Band 51   6,240.373   7.58   47,302
                   Band 56   78,836.106   6.88   542,392
                   Band 60   480.594   6.85   3,292
    21,955,181.884       $ 429,071,150
                   ING Van Kampen Growth and Income Portfolio -            
                       Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   594,673.136   $ 11.55   $ 6,868,475
                   Band 7   16,848.254   11.51   193,923
                   Band 8   1,543.779   11.44   17,661
                   Band 10   432,198.060   11.36   4,909,770
                   Band 11   14,172.996   11.33   160,580
                   Band 12   312,588.970   11.29   3,529,129
                   Band 13   13,898.626   8.37   116,331
                   Band 14   86,313.290   9.02   778,546
                   Band 15   339,723.809   8.99   3,054,117
                   Band 17   277,972.222   8.93   2,482,292
                   Band 20   1,661,840.670   11.22   18,645,852
                   Band 46   475,522.905   8.23   3,913,554
    4,227,296.717       $ 44,670,230
                   ING Van Kampen Real Estate Portfolio - Service Class            
                   Currently payable annuity contracts:   400.918   $ 43.04   $ 17,256
                   Contracts in accumulation period:            
                   Band 1   3,818.849   44.81   171,123
                   Band 2   69,126.109   43.04   2,975,188
                   Band 3   734.242   40.11   29,450
                   Band 4   49,340.062   40.99   2,022,449
                   Band 5   35,079.210   40.53   1,421,760
                   Band 6   952,216.462   39.77   37,869,649
                   Band 7   691,764.927   39.32   27,200,197
                   Band 8   581,354.005   38.59   22,434,451
                   Band 9   90,172.658   38.14   3,439,185
                   Band 10   710,187.481   37.76   26,816,679
                   Band 11   390,878.664   37.38   14,611,044

228

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract        Units   Unit Value   Extended Value
                   ING Van Kampen Real Estate Portfolio - Service Class            
                       (continued)            
                   Band 12   162,445.658   $ 37.00   $ 6,010,489
                   Band 13   584,295.221   36.63   21,402,734
                   Band 14   839,079.585   35.89   30,114,566
                   Band 15   412,439.168   35.53   14,653,964
                   Band 16   45,841.256   34.82   1,596,193
                   Band 17   665,552.258   34.47   22,941,586
                   Band 18   18,568.445   34.12   633,555
                   Band 19   53,921.297   33.43   1,802,589
                   Band 20   351,230.826   36.26   12,735,630
                   Band 21   46,691.173   35.17   1,642,129
                   Band 24   73.325   47.60   3,490
                   Band 25   11,536.754   43.93   506,810
                   Band 26   113,524.950   10.91   1,238,557
                   Band 27   36,224.360   10.76   389,774
                   Band 28   7,429.104   10.68   79,343
                   Band 29   95,436.793   10.66   1,017,356
                   Band 30   40,769.905   10.51   428,492
                   Band 31   20,724.432   10.43   216,156
                   Band 32   713.293   10.29   7,340
                   Band 33   1,590.560   10.19   16,208
                   Band 34   628.792   10.12   6,363
                   Band 38   57,378.391   6.09   349,434
                   Band 41   35,788.852   10.51   376,141
                   Band 42   20,110.664   10.41   209,352
                   Band 43   66,770.544   10.34   690,407
                   Band 44   5,109.709   10.16   51,915
                   Band 45   15,518.215   9.95   154,406
                   Band 46   1,487,036.387   7.59   11,286,606
                   Band 47   155,674.528   7.54   1,173,786
                   Band 50   2,714.316   6.02   16,340
                   Band 51   396.013   5.97   2,364
                   Band 53   771.489   6.03   4,652
                   Band 55   8,892.485   6.06   53,888
                   Band 56   12,573.668   6.74   84,747
                   Band 60   1,182.770   6.71   7,936
    8,953,708.773       $ 270,913,729
                   ING Van Kampen Real Estate Portfolio - Service 2            
                       Class            
                   Contracts in accumulation period:            
                   Band 6   260,944.345   $ 13.51   $ 3,525,358
                   Band 7   2,281.943   13.46   30,715
                   Band 8   99.602   13.38   1,333
                   Band 10   187,396.704   13.29   2,490,502
                   Band 11   3,472.104   13.25   46,005
                   Band 12   62,238.323   13.21   822,168
                   Band 13   3,496.072   7.67   26,815
                   Band 14   52,731.650   9.44   497,787
                   Band 15   197,333.822   9.42   1,858,885
                   Band 17   73,704.205   9.35   689,134
                   Band 20   330,057.980   13.12   4,330,361
                   Band 46   204,226.194   7.54   1,539,866
    1,377,982.944       $ 15,858,929

229

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units          Unit Value   Extended Value
                   ING VP Index Plus International Equity Portfolio -            
Service Class            
                   Contracts in accumulation period:            
                   Band 2   524.820   $ 7.61   $ 3,994
                   Band 4   37,266.662                            7.55   281,363
                   Band 5   2,769.936                            7.54   20,885
                   Band 6   218,566.390                            7.52   1,643,619
                   Band 7   98,966.758                            7.51   743,240
                   Band 8   137,502.898                            7.48   1,028,522
                   Band 9   62,044.802                            7.47   463,475
                   Band 10   187,024.902                            7.46   1,395,206
                   Band 11   26,374.443                            7.45   196,490
                   Band 12   4,775.582                            7.44   35,530
                   Band 13   113,433.350                            7.42   841,675
                   Band 14   169,026.736                            7.40   1,250,798
                   Band 15   105,936.064                            7.39   782,868
                   Band 16   4,454.898                            7.37   32,833
                   Band 17   141,577.328                            7.35   1,040,593
                   Band 19   6,663.425                            7.32   48,776
                   Band 20   21,726.410                            7.41   160,993
                   Band 21   17,596.809                            7.38   129,864
                   Band 25   281.202                            7.64   2,148
                   Band 26   63,457.278                            7.62   483,544
                   Band 27   26,543.566                            7.55   200,404
                   Band 28   9,921.000                            7.52   74,606
                   Band 29   41,401.594                            7.51   310,926
                   Band 30   20,271.606                            7.43   150,618
                   Band 31   30,512.746                            7.40   225,794
                   Band 34   1,487.559                            7.25   10,785
                   Band 35   107,326.338                            6.56   704,061
                   Band 36   6,245.845                            6.52   40,723
                   Band 37   7,472.125                            6.50   48,569
                   Band 38   287,615.201                            6.51   1,872,375
                   Band 39   119,032.321                            6.48   771,329
                   Band 40   24,172.766                            6.45   155,914
                   Band 41   3,814.542                            7.44   28,380
                   Band 42   3,179.415                            7.39   23,496
                   Band 43   8,023.188                            7.36   59,051
                   Band 44   179.774                            7.27   1,307
                   Band 45   908.681                            7.24   6,579
                   Band 46   87,228.049                            7.33   639,382
                   Band 47   11,249.773                            7.30   82,123
                   Band 49   212,380.359                            5.93   1,259,416
    2,428,937.141       $ 17,252,254
 
 
 
 
                                                                                                                               230            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units          Unit Value   Extended Value
                   ING VP Index Plus International Equity Portfolio -            
                       Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   7,112.807   $ 7.40   $ 52,635
                   Band 10   6,970.910                            7.35   51,236
                   Band 12   27.852                            7.32   204
                   Band 14   147.377                            7.29   1,074
                   Band 15   7,005.054                            7.28   50,997
                   Band 17   2,694.463                            7.24   19,508
                   Band 20   7,320.752                            7.30   53,441
                   Band 46   7,586.611                            7.22   54,775
    38,865.826       $ 283,870
                   ING Wells Fargo Small Cap Disciplined Portfolio -            
                       Service Class            
                   Contracts in accumulation period:            
                   Band 2   1,090.804   $ 7.31   $ 7,974
                   Band 4   4,033.233                            7.25   29,241
                   Band 5   3,162.811                            7.24   22,899
                   Band 6   91,205.810                            7.21   657,594
                   Band 7   39,562.217                            7.20   284,848
                   Band 8   83,989.174                            7.18   603,042
                   Band 9   12,786.498                            7.17   91,679
                   Band 10   205,657.198                            7.16   1,472,506
                   Band 11   8,767.171                            7.15   62,685
                   Band 12   6,658.821                            7.14   47,544
                   Band 13   111,071.244                            7.12   790,827
                   Band 14   96,982.308                            7.10   688,574
                   Band 15   57,123.924                            7.09   405,009
                   Band 16   15,812.975                            7.07   111,798
                   Band 17   80,134.520                            7.06   565,750
                   Band 18   76.692                            7.05   541
                   Band 19   1,414.366                            7.02   9,929
                   Band 20   15,964.395                            7.11   113,507
                   Band 21   6,176.168                            7.08   43,727
                   Band 25   3,006.906                            7.33   22,041
                   Band 26   3,646.418                            7.32   26,692
                   Band 27   2,165.837                            7.25   15,702
                   Band 28   677.481                            7.21   4,885
                   Band 29   4,429.215                            7.20   31,890
                   Band 30   3,615.597                            7.13   25,779
                   Band 31   9,193.487                            7.10   65,274
                   Band 38   578.012                            6.95   4,017
                   Band 41   755.251                            7.14   5,392
                   Band 42   2,019.791                            7.09   14,320
                   Band 43   686.867                            7.06   4,849
                   Band 46   41,920.976                            7.03   294,704
                   Band 47   9,969.523                            7.00   69,787
    924,335.690       $ 6,595,006

231

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract        Units   Unit Value   Extended Value
                   ING Wells Fargo Small Cap Disciplined Portfolio -            
                       Service 2 Class            
                   Contracts in accumulation period:            
                   Band 6   2,045.045   $ 7.19   $ 14,704
                   Band 8   796.681   7.15   5,696
                   Band 10   6,532.247   7.13   46,575
                   Band 14   3,500.941   7.07   24,752
                   Band 15   4,743.292   7.06   33,488
                   Band 17   290.925   7.03   2,045
                   Band 20   29,045.626   7.09   205,933
                   Band 46   5,123.230   7.01   35,914
    52,077.987       $ 369,107
                   ING Diversified International Fund - Class R            
                   Contracts in accumulation period:            
                   Band 35   2,318.628   $ 6.35   $ 14,723
                   Band 36   3,697.829   6.32   23,370
                   Band 38   15,791.506   6.31   99,644
                   Band 39   3,765.234   6.29   23,683
                   Band 40   3,256.630   6.27   20,419
    28,829.827       $ 181,839
                   ING American Century Large Company Value            
                       Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   12,825.439   $ 7.84   $ 100,551
                   Band 37   344.397   7.65   2,635
                   Band 38   19,830.871   9.07   179,866
                   Band 39   7,944.070   8.97   71,258
                   Band 40   3,411.407   8.90   30,362
    44,356.184       $ 384,672
                   ING American Century Small-Mid Cap Value            
                       Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   3,222.841   $ 11.32   $ 36,483
                   Band 36   2,689.647   11.17   30,043
                   Band 38   23,646.851   12.12   286,600
                   Band 39   3,133.912   11.98   37,544
                   Band 40   1,124.975   11.89   13,376
    33,818.226       $ 404,046
                   ING Baron Small Cap Growth Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   6,827.014   $ 7.69   $ 52,500
                   Band 4   98,512.795   7.62   750,667
                   Band 5   20,245.727   7.61   154,070
                   Band 6   3,468,055.277   7.58   26,287,859
                   Band 7   797,642.717   7.56   6,030,179
                   Band 8   2,106,591.869   7.54   15,883,703
                   Band 9   232,657.492   7.52   1,749,584
                   Band 10   4,777,819.854   7.51   35,881,427

232

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units   Unit Value   Extended Value
                   ING Baron Small Cap Growth Portfolio - Service Class            
(continued)            
                   Band 11   542,365.780   $ 7.49   $ 4,062,320
                   Band 12   164,305.262   7.48   1,229,003
                   Band 13   1,662,195.849   7.47   12,416,603
                   Band 14   1,594,618.630   7.44   11,863,963
                   Band 15   1,705,281.111   7.42   12,653,186
                   Band 16   170,277.442   7.40   1,260,053
                   Band 17   1,688,800.233   7.38   12,463,346
                   Band 18   6,339.579   7.37   46,723
                   Band 19   41,401.272   7.34   303,885
                   Band 20   518,943.843   7.45   3,866,132
                   Band 21   100,397.710   7.41   743,947
                   Band 26   193,360.228   7.71   1,490,807
                   Band 27   36,367.974   7.62   277,124
                   Band 28   7,812.765   7.58   59,221
                   Band 29   160,694.075   7.56   1,214,847
                   Band 30   24,336.869   7.48   182,040
                   Band 31   54,352.094   7.44   404,380
                   Band 34   3,567.313   7.26   25,899
                   Band 35   79,256.007   10.97   869,438
                   Band 36   15,162.771   10.83   164,213
                   Band 37   5,405.893   10.72   57,951
                   Band 38   501,750.618   10.79   5,413,889
                   Band 39   170,621.239   10.67   1,820,529
                   Band 40   41,142.438   10.58   435,287
                   Band 41   14,186.900   7.48   106,118
                   Band 42   31,919.135   7.43   237,159
                   Band 43   92,114.186   7.38   679,803
                   Band 44   1,330.806   7.28   9,688
                   Band 45   27,890.841   7.24   201,930
                   Band 46   1,683,610.405   7.35   12,374,536
                   Band 47   274,753.538   7.31   2,008,448
                   Band 50   15,512.610   6.61   102,538
                   Band 52   15.183   6.67   101
                   Band 53   827.549   6.63   5,487
                   Band 54   1,352.153   6.58   8,897
                   Band 55   8,827.460   6.65   58,703
                   Band 56   209,093.399   6.24   1,304,743
                   Band 57   7,360.823   6.20   45,637
                   Band 58   1,089.543   6.19   6,744
                   Band 59   3,213.655   6.17   19,828
                   Band 60   484.643   6.21   3,010
    23,370,692.569       $ 177,288,145
 
 
 
 
                                                                                                                               233            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Columbia Small Cap Value II Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   9,581.905   $ 6.71   $ 64,295
                   Band 4   77,931.895                            6.66   519,026
                   Band 5   23,737.562                            6.65   157,855
                   Band 6   3,270,508.075                            6.63   21,683,469
                   Band 7   687,982.359                            6.63   4,561,323
                   Band 8   1,531,120.257                            6.61   10,120,705
                   Band 9   138,196.811                            6.60   912,099
                   Band 10   4,530,155.212                            6.59   29,853,723
                   Band 11   511,113.386                            6.58   3,363,126
                   Band 12   147,870.775                            6.57   971,511
                   Band 13   1,404,795.380                            6.56   9,215,458
                   Band 14   1,520,349.631                            6.54   9,943,087
                   Band 15   1,534,466.454                            6.54   10,035,411
                   Band 16   151,225.876                            6.52   985,993
                   Band 17   1,644,869.810                            6.51   10,708,102
                   Band 18   8,090.111                            6.50   52,586
                   Band 19   28,280.011                            6.48   183,254
                   Band 20   707,626.177                            6.55   4,634,951
                   Band 21   116,725.605                            6.53   762,218
                   Band 26   149,932.948                            6.72   1,007,549
                   Band 27   43,017.186                            6.66   286,494
                   Band 28   7,886.911                            6.63   52,290
                   Band 29   312,236.527                            6.62   2,067,006
                   Band 30   31,915.239                            6.57   209,683
                   Band 31   4,994.217                            6.54   32,662
                   Band 38   115,887.913                            7.36   852,935
                   Band 41   6,631.510                            6.57   43,569
                   Band 42   26,692.554                            6.54   174,569
                   Band 43   77,129.797                            6.51   502,115
                   Band 44   1,719.436                            6.45   11,090
                   Band 45   4,127.826                            6.42   26,501
                   Band 46   1,392,519.586                            6.49   9,037,452
                   Band 47   314,742.159                            6.46   2,033,234
                   Band 50   9,573.971                            7.24   69,316
                   Band 51   722.462                            7.19   5,195
                   Band 52   1,820.740                            7.31   13,310
                   Band 53   1,747.032                            7.26   12,683
                   Band 54   1,423.986                            7.20   10,253
                   Band 55   11,637.912                            7.29   84,840
                   Band 56   113,209.045                            7.10   803,784
                   Band 57   5,149.742                            7.06   36,357
                   Band 59   996.885                            7.02   6,998
    20,680,342.876       $ 136,108,077

234

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract            Units          Unit Value   Extended Value
                   ING Davis New York Venture Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   12,883.915   $ 6.93   $ 89,286
                   Band 4   159,879.528                            6.88   1,099,971
                   Band 5   41,650.879                            6.87   286,142
                   Band 6   3,528,125.412                            6.85   24,167,659
                   Band 7   683,782.528                            6.84   4,677,072
                   Band 8   2,268,505.111                            6.82   15,471,205
                   Band 9   460,508.085                            6.80   3,131,455
                   Band 10   6,232,741.368                            6.79   42,320,314
                   Band 11   661,801.614                            6.78   4,487,015
                   Band 12   163,150.526                            6.77   1,104,529
                   Band 13   1,749,544.325                            6.76   11,826,920
                   Band 14   2,433,344.114                            6.74   16,400,739
                   Band 15   2,198,500.584                            6.73   14,795,909
                   Band 16   265,526.985                            6.71   1,781,686
                   Band 17   1,649,555.146                            6.70   11,052,019
                   Band 18   10,275.108                            6.69   68,740
                   Band 19   43,540.861                            6.67   290,418
                   Band 20   490,642.683                            6.75   3,311,838
                   Band 21   189,819.330                            6.72   1,275,586
                   Band 25   30,267.534                            6.96   210,662
                   Band 26   158,614.694                            6.95   1,102,372
                   Band 27   132,073.131                            6.88   908,663
                   Band 28   33,134.539                            6.85   226,972
                   Band 29   95,814.178                            6.84   655,369
                   Band 30   20,934.028                            6.77   141,723
                   Band 31   19,768.865                            6.74   133,242
                   Band 32   752.987                            6.68   5,030
                   Band 34   762.351                            6.61   5,039
                   Band 35   24,864.431                            8.09   201,153
                   Band 36   4,426.345                            7.98   35,322
                   Band 38   218,068.085                            9.15   1,995,323
                   Band 39   12,388.014                            9.05   112,112
                   Band 40   3,420.759                            8.98   30,718
                   Band 41   87,154.507                            6.77   590,036
                   Band 42   12,444.021                            6.73   83,748
                   Band 43   120,061.215                            6.70   804,410
                   Band 44   2,739.086                            6.62   18,133
                   Band 45   11,557.577                            6.59   76,164
                   Band 46   2,546,741.927                            6.68   17,012,236
                   Band 47   262,843.179                            6.64   1,745,279
                   Band 50   17,341.601                            6.89   119,484
                   Band 51   9,009.092                            6.83   61,532
                   Band 52   1,505.168                            6.95   10,461
                   Band 54   6,581.753                            6.85   45,085
                   Band 55   11,595.843                            6.93   80,359
                   Band 56   273,990.898                            6.35   1,739,842
                   Band 57   8,392.837                            6.31   52,959
                   Band 59   12,861.693                            6.28   80,771
    27,383,888.440       $ 185,922,702

235

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units   Unit Value   Extended Value
                   ING JPMorgan Mid Cap Value Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   722.307   $ 6.93   $ 5,006
                   Band 4   54,945.852   10.78   592,316
                   Band 5   1,124.324   11.51   12,941
                   Band 6   540,677.402   6.91   3,736,081
                   Band 7   141,570.838   11.40   1,613,908
                   Band 8   519,821.630   6.90   3,586,769
                   Band 9   78,567.253   11.28   886,239
                   Band 10   651,474.055   9.16   5,967,502
                   Band 11   100,126.068   6.89   689,869
                   Band 12   16,589.020   6.89   114,298
                   Band 13   132,504.499   11.13   1,474,775
                   Band 14   103,147.295   6.88   709,653
                   Band 15   238,668.173   11.02   2,630,123
                   Band 16   687.333   6.88   4,729
                   Band 17   180,149.605   6.88   1,239,429
                   Band 19   2,712.424   8.90   24,141
                   Band 20   53,583.272   9.07   486,000
                   Band 21   43,785.070   9.00   394,066
                   Band 26   72,668.158   11.79   856,758
                   Band 27   41,976.119   11.55   484,824
                   Band 28   8,503.156   11.43   97,191
                   Band 29   88,108.167   11.40   1,004,433
                   Band 30   85,152.983   11.17   951,159
                   Band 31   37,232.909   11.05   411,424
                   Band 32   862.408   10.84   9,349
                   Band 33   1,412.031   10.69   15,095
                   Band 34   3,585.896   10.58   37,939
                   Band 35   65,535.367   11.95   783,148
                   Band 36   22,482.710   11.79   265,071
                   Band 37   5,840.214   11.67   68,155
                   Band 38   216,161.598   11.37   2,457,757
                   Band 39   71,088.567   11.24   799,035
                   Band 40   20,170.214   11.15   224,898
                   Band 41   20,771.397   10.49   217,892
                   Band 42   20,899.223   10.38   216,934
                   Band 43   64,295.795   10.30   662,247
                   Band 44   364.031   8.90   3,240
                   Band 46   166,421.907   6.87   1,143,319
                   Band 47   8,263.497   6.86   56,688
                   Band 56   95,957.939   6.92   664,029
                   Band 57   6,207.478   6.89   42,770
                   Band 59   4,035.528   6.87   27,724
    3,988,853.712       $ 35,668,924

236

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Legg Mason Partners Aggressive Growth            
                       Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   6,397.241   $ 8.20   $ 52,457
                   Band 4   17,624.333                            8.09   142,581
                   Band 5   9,946.793                            8.07   80,271
                   Band 6   1,053,733.719                            8.03   8,461,482
                   Band 7   943,021.089                            8.01   7,553,599
                   Band 8   532,667.025                            7.96   4,240,030
                   Band 9   59,406.660                            7.94   471,689
                   Band 10   1,399,390.942                            7.92   11,083,176
                   Band 11   394,167.089                            7.90   3,113,920
                   Band 12   65,516.358                            7.88   516,269
                   Band 13   555,555.106                            7.86   4,366,663
                   Band 14   1,596,012.077                            7.81   12,464,854
                   Band 15   422,159.587                            7.79   3,288,623
                   Band 16   84,423.422                            7.75   654,282
                   Band 17   1,098,883.686                            7.73   8,494,371
                   Band 18   2,944.322                            7.71   22,701
                   Band 19   61,451.218                            7.67   471,331
                   Band 20   953,242.263                            7.83   7,463,887
                   Band 21   64,215.468                            7.77   498,954
                   Band 26   34,076.575                            8.23   280,450
                   Band 27   18,112.729                            8.09   146,532
                   Band 28   4,908.839                            8.03   39,418
                   Band 29   19,045.006                            8.01   152,550
                   Band 30   20,571.336                            7.88   162,102
                   Band 31   17,907.927                            7.81   139,861
                   Band 33   166.242                            7.61   1,265
                   Band 34   15,610.703                            7.55   117,861
                   Band 35   4,080.386                            7.67   31,297
                   Band 36   1,294.949                            7.61   9,855
                   Band 37   4,569.087                            8.16   37,284
                   Band 38   26,070.229                            7.59   197,873
                   Band 39   6,231.082                            7.54   46,982
                   Band 40   48,141.301                            7.50   361,060
                   Band 41   16,003.147                            7.88   126,105
                   Band 42   5,460.203                            7.80   42,590
                   Band 43   14,399.781                            7.73   111,310
                   Band 44   4,429.803                            6.96   30,831
                   Band 46   518,776.871                            6.84   3,548,434
                   Band 47   47,318.068                            6.79   321,290
                   Band 52   1,828.238                            6.35   11,609
                   Band 56   1,248.295                            6.31   7,877
                   Band 57   1,907.220                            6.28   11,977
    10,152,916.415       $ 79,377,553

237

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Neuberger Berman Partners Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 1   6,864.319   $ 5.17   $ 35,489
                   Band 2   178,521.222                            5.36   956,874
                   Band 3   1,677.041                            5.31   8,905
                   Band 4   120,151.855                            5.32   639,208
                   Band 5   90,373.979                            5.31   479,886
                   Band 6   1,411,341.717                            5.30   7,480,111
                   Band 7   1,120,052.752                            5.29   5,925,079
                   Band 8   1,651,567.142                            5.28   8,720,275
                   Band 9   249,285.203                            5.27   1,313,733
                   Band 10   486,843.027                            5.26   2,560,794
                   Band 11   1,879,559.854                            5.26   9,886,485
                   Band 12   347,469.320                            5.25   1,824,214
                   Band 13   993,627.719                            5.24   5,206,609
                   Band 14   1,134,701.013                            5.23   5,934,486
                   Band 15   150,396.010                            5.22   785,067
                   Band 16   24,634.021                            5.21   128,343
                   Band 17   320,796.013                            5.20   1,668,139
                   Band 18   21,491.031                            5.19   111,538
                   Band 19   38,807.496                            5.18   201,023
                   Band 20   381,307.511                            5.23   1,994,238
                   Band 21   83,024.516                            5.21   432,558
                   Band 25   12,692.963                            5.16   65,496
                   Band 26   34,605.299                            5.36   185,484
                   Band 27   15,252.414                            5.32   81,143
                   Band 28   13,111.768                            5.30   69,492
                   Band 29   37,291.732                            5.29   197,273
                   Band 30   26,742.015                            5.25   140,396
                   Band 31   14,034.776                            5.23   73,402
                   Band 32   674.865                            5.19   3,503
                   Band 38   1,672.956                            5.96   9,971
                   Band 41   3,012.762                            5.25   15,817
                   Band 42   5,027.312                            5.22   26,243
                   Band 43   24,993.723                            5.20   129,967
                   Band 44   4,216.039                            5.15   21,713
                   Band 46   178,380.187                            5.18   924,009
                   Band 47   10,662.620                            5.16   55,019
                   Band 50   9,173.206                            5.86   53,755
    11,084,037.398       $ 58,345,737
 
 
 
 
                                                                                                                               238            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING Oppenheimer Global Portfolio - Initial Class            
                   Contracts in accumulation period:            
                   Band 4   18,910.005   $ 8.68   $ 164,139
                   Band 7   8,530.281   8.62   73,531
                   Band 9   38,101.352   8.57   326,529
                   Band 10   13,114.824   8.56   112,263
                   Band 13   5,429.105   8.51   46,202
                   Band 15   19,791.089   8.46   167,433
                   Band 20   2,895.355   8.49   24,582
                   Band 21   8,156.636   8.44   68,842
                   Band 26   108,588.206   8.78   953,404
                   Band 27   47,623.901   8.68   413,375
                   Band 28   6,982.458   8.64   60,328
                   Band 29   85,989.068   8.62   741,226
                   Band 30   40,891.164   8.52   348,393
                   Band 31   44,624.201   8.47   377,967
                   Band 32   653.513   8.38   5,476
                   Band 35   116,364.776   8.85   1,029,828
                   Band 36   7,172.477   8.78   62,974
                   Band 37   1,260.737   8.73   11,006
                   Band 38   112,909.571   8.77   990,217
                   Band 39   36,938.716   8.70   321,367
                   Band 40   12,923.923   8.65   111,792
                   Band 41   2,762.304   8.52   23,535
                   Band 42   6,799.532   8.46   57,524
                   Band 43   14,280.321   8.41   120,097
    761,693.515       $ 6,612,030
                   ING Oppenheimer Global Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   5,658.089   $ 8.67   $ 49,056
                   Band 4   95,642.786   10.35   989,903
                   Band 5   20,530.422   9.83   201,814
                   Band 6   1,818,383.543   8.54   15,528,995
                   Band 7   273,401.229   9.73   2,660,194
                   Band 8   832,152.184   8.49   7,064,972
                   Band 9   157,768.819   9.63   1,519,314
                   Band 10   1,995,842.674   8.62   17,204,164
                   Band 11   230,097.796   8.44   1,942,025
                   Band 12   63,473.445   8.43   535,081
                   Band 13   526,642.165   9.50   5,003,101
                   Band 14   756,024.920   8.38   6,335,489
                   Band 15   909,337.070   9.41   8,556,862
                   Band 16   67,532.691   8.33   562,547
                   Band 17   1,018,421.435   8.32   8,473,266
                   Band 18   17,892.425   8.30   148,507
                   Band 19   36,651.412   8.38   307,139
                   Band 20   260,440.878   8.54   2,224,165
                   Band 21   84,737.283   8.48   718,572

239

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING Oppenheimer Global Portfolio - Service Class            
                       (continued)            
                   Band 26   176,835.817   $ 10.06   $ 1,778,968
                   Band 27   19,445.010   9.86   191,728
                   Band 28   11,107.020   9.76   108,405
                   Band 29   198,952.041   9.73   1,935,803
                   Band 30   34,743.070   9.53   331,101
                   Band 31   11,592.408   9.44   109,432
                   Band 34   3,567.549   9.04   32,251
                   Band 35   176,964.093   10.20   1,805,034
                   Band 36   43,121.257   10.06   433,800
                   Band 37   29,436.402   9.96   293,187
                   Band 38   528,887.883   10.97   5,801,900
                   Band 39   164,794.320   10.85   1,788,018
                   Band 40   88,063.395   10.76   947,562
                   Band 41   19,317.537   10.08   194,721
                   Band 42   5,187.414   9.97   51,719
                   Band 43   52,618.719   9.89   520,399
                   Band 44   855.704   8.58   7,342
                   Band 45   14,184.058   8.45   119,855
                   Band 46   788,020.533   8.29   6,532,690
                   Band 47   114,371.697   8.24   942,423
                   Band 50   4,612.408   7.08   32,656
                   Band 51   3,835.966   7.02   26,928
                   Band 52   608.319   7.14   4,343
                   Band 55   342.513   7.12   2,439
                   Band 56   214,609.373   6.19   1,328,432
                   Band 60   534.427   6.16   3,292
    11,877,240.199       $ 105,349,594
                   ING Oppenheimer Strategic Income Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 35   279,773.788   $ 9.80   $ 2,741,783
                   Band 36   45,969.133   9.73   447,280
                   Band 37   7,112.244   9.67   68,775
                   Band 38   462,364.152   9.71   4,489,556
                   Band 39   85,178.008   9.64   821,116
                   Band 40   33,133.852   9.58   317,422
    913,531.177       $ 8,885,932
                   ING PIMCO Total Return Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   178,495.265   $ 12.94   $ 2,309,729
                   Band 36   12,403.704   12.76   158,271
                   Band 37   4,648.896   12.64   58,762
                   Band 38   405,274.952   11.76   4,766,033
                   Band 39   70,638.763   11.64   822,235
                   Band 40   41,114.588   11.54   474,462
    712,576.168       $ 8,589,492

240

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units          Unit Value   Extended Value
                   ING Solution 2015 Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   50,656.734   $ 8.88   $ 449,832
                   Band 36   4,065.000                            8.81   35,813
                   Band 37   26,283.331                            8.76   230,242
                   Band 38   955,851.367                            8.80   8,411,492
                   Band 39   153,943.373                            8.73   1,343,926
                   Band 40   89,597.760                            8.68   777,709
    1,280,397.565       $ 11,249,014
                   ING Solution 2025 Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   76,491.900   $ 8.34   $ 637,942
                   Band 36   3,406.125                            8.27   28,169
                   Band 37   843.755                            8.23   6,944
                   Band 38   830,583.518                            8.26   6,860,620
                   Band 39   98,795.355                            8.20   810,122
                   Band 40   97,554.555                            8.15   795,070
    1,107,675.208       $ 9,138,867
                   ING Solution 2035 Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   7,965.569   $ 8.22   $ 65,477
                   Band 36   23,537.692                            8.16   192,068
                   Band 38   703,013.753                            8.14   5,722,532
                   Band 39   96,230.506                            8.08   777,542
                   Band 40   148,953.741                            8.04   1,197,588
    979,701.261       $ 7,955,207
                   ING Solution 2045 Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   8,596.769   $ 8.10   $ 69,634
                   Band 38   61,881.998                            8.02   496,294
                   Band 39   34,343.143                            7.96   273,371
                   Band 40   48,651.355                            7.92   385,319
    153,473.265       $ 1,224,618
                   ING Solution Income Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   25,260.274   $ 9.52   $ 240,478
                   Band 36   5,284.930                            9.45   49,943
                   Band 37   2,797.574                            9.39   26,269
                   Band 38   375,155.471                            9.43   3,537,716
                   Band 39   77,339.565                            9.36   723,898
                   Band 40   95,617.764                            9.31   890,201
    581,455.578       $ 5,468,505

241

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract        Units          Unit Value   Extended Value
                   ING T. Rowe Price Diversified Mid Cap Growth            
                       Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 35   52,947.561   $ 7.84   $ 415,109
                   Band 36   10,562.373                            7.73   81,647
                   Band 37   3,456.012                            7.65   26,438
                   Band 38   183,106.723                            9.46   1,732,190
                   Band 39   72,165.653                            9.36   675,471
                   Band 40   17,162.552                            9.28   159,268
    339,400.874       $ 3,090,123
                   ING T. Rowe Price Growth Equity Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   806.729   $ 5.82   $ 4,695
                   Band 4   12,229.631                            5.80   70,932
                   Band 5   6,952.971                            5.79   40,258
                   Band 6   775,346.711                            5.78   4,481,504
                   Band 7   141,482.116                            5.78   817,767
                   Band 8   342,675.054                            5.77   1,977,235
                   Band 9   61,962.887                            5.76   356,906
                   Band 10   1,184,846.936                            5.76   6,824,718
                   Band 11   114,703.470                            5.75   659,545
                   Band 12   16,756.781                            5.75   96,351
                   Band 13   195,991.721                            5.74   1,124,992
                   Band 14   360,843.284                            5.73   2,067,632
                   Band 15   535,485.761                            5.73   3,068,333
                   Band 16   39,544.944                            5.72   226,197
                   Band 17   245,894.595                            5.71   1,404,058
                   Band 18   923.366                            5.71   5,272
                   Band 19   10,100.932                            5.70   57,575
                   Band 20   101,944.509                            5.74   585,161
                   Band 21   13,064.811                            5.72   74,731
                   Band 26   18,100.664                            5.83   105,527
                   Band 27   6,830.710                            5.80   39,618
                   Band 29   25,234.026                            5.78   145,853
                   Band 30   3,565.047                            5.75   20,499
                   Band 31   1,262.564                            5.73   7,234
                   Band 35   107,500.744                            7.80   838,506
                   Band 36   20,821.181                            7.69   160,115
                   Band 37   13,434.264                            7.60   102,100
                   Band 38   243,928.332                            9.09   2,217,309
                   Band 39   43,833.051                            8.99   394,059
                   Band 40   16,556.113                            8.92   147,681
                   Band 41   2,663.623                            5.75   15,316
                   Band 42   107.192                            5.73   614
                   Band 43   39,584.608                            5.71   226,028
                   Band 45   1,516.943                            5.66   8,586
                   Band 46   316,265.846                            5.70   1,802,715
                   Band 47   22,538.232                            5.69   128,243
                   Band 50   1,006.991                            5.74   5,780
                   Band 52   763.798                            5.78   4,415
                   Band 56   19,158.790                            6.01   115,144
    5,066,229.928       $ 30,429,204

242

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Templeton Foreign Equity Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   9,035.868   $ 7.52   $ 67,950
                   Band 3   512.366                            7.45   3,817
                   Band 4   119,243.871                            7.47   890,752
                   Band 5   16,630.131                            7.46   124,061
                   Band 6   2,681,328.024                            7.44   19,949,080
                   Band 7   1,045,633.276                            7.43   7,769,055
                   Band 8   1,589,642.752                            7.41   11,779,253
                   Band 9   202,154.705                            7.40   1,495,945
                   Band 10   3,649,197.457                            7.39   26,967,569
                   Band 11   542,998.931                            7.38   4,007,332
                   Band 12   133,335.098                            7.37   982,680
                   Band 13   1,372,927.232                            7.36   10,104,744
                   Band 14   2,392,658.606                            7.34   17,562,114
                   Band 15   1,636,457.214                            7.33   11,995,231
                   Band 16   161,670.185                            7.31   1,181,809
                   Band 17   2,050,458.589                            7.30   14,968,348
                   Band 18   3,438.214                            7.29   25,065
                   Band 19   168,743.516                            7.27   1,226,765
                   Band 20   962,269.859                            7.35   7,072,683
                   Band 21   116,907.189                            7.32   855,761
                   Band 26   139,727.883                            7.53   1,052,151
                   Band 27   29,474.730                            7.47   220,176
                   Band 28   18,724.282                            7.44   139,309
                   Band 29   116,050.040                            7.43   862,252
                   Band 30   33,678.199                            7.37   248,208
                   Band 31   37,620.785                            7.34   276,137
                   Band 33   304.395                            7.24   2,204
                   Band 34   442.566                            7.21   3,191
                   Band 35   51,255.811                            6.29   322,399
                   Band 36   1,049.879                            6.29   6,604
                   Band 37   6,282.712                            6.28   39,455
                   Band 38   261,242.137                            8.02   2,095,162
                   Band 39   35,664.459                            6.27   223,616
                   Band 40   67,781.898                            6.27   424,993
                   Band 41   15,995.290                            7.37   117,885
                   Band 42   22,529.488                            7.33   165,141
                   Band 43   74,926.637                            7.30   546,964
                   Band 44   837.470                            7.23   6,055
                   Band 45   4,081.253                            7.20   29,385
                   Band 46   1,592,209.857                            7.28   11,591,288
                   Band 47   198,345.510                            7.25   1,438,005
                   Band 50   921.234                            7.87   7,250
                   Band 51   2,207.452                            7.81   17,240
                   Band 55   8,592.785                            7.92   68,055
                   Band 56   133,227.535                            6.02   802,030
                   Band 57   1,544.169                            5.99   9,250
                   Band 58   1,226.549                            5.97   7,322
    21,711,188.088       $ 159,751,741

243

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units          Unit Value   Extended Value
                   ING Thornburg Value Portfolio - Initial Class            
                   Contracts in accumulation period:            
                   Band 4   7,068.055   $ 8.72   $ 61,633
                   Band 7   111.222                            6.22   692
                   Band 9   14,878.498                            6.15   91,503
                   Band 10   551.360                            7.73   4,262
                   Band 13   9,021.782                            6.06   54,672
                   Band 15   10,922.439                            5.99   65,425
                   Band 21   1,390.174                            7.60   10,565
                   Band 26   19,978.215                            6.46   129,059
                   Band 27   38,522.065                            6.32   243,459
                   Band 28   10,423.397                            6.25   65,146
                   Band 29   29,675.153                            6.22   184,579
                   Band 30   14,781.015                            6.08   89,869
                   Band 31   27,003.454                            6.01   162,291
                   Band 41   715.615                            8.49   6,076
                   Band 43   2,880.101                            8.33   23,991
    187,922.545       $ 1,193,222
                   ING Thornburg Value Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 4   4,230.350   $ 7.15   $ 30,247
                   Band 6   48,117.907                            7.13   343,081
                   Band 7   42,012.199                            7.12   299,127
                   Band 8   38,408.556                            7.10   272,701
                   Band 9   3,575.157                            7.09   25,348
                   Band 10   109,562.637                            7.08   775,703
                   Band 11   29,915.233                            7.08   211,800
                   Band 12   4,317.720                            7.07   30,526
                   Band 13   48,574.144                            7.06   342,933
                   Band 14   65,833.666                            7.04   463,469
                   Band 15   26,001.619                            7.03   182,791
                   Band 16   4,951.249                            7.02   34,758
                   Band 17   34,931.987                            7.01   244,873
                   Band 18   1,014.770                            7.00   7,103
                   Band 19   6,841.162                            6.98   47,751
                   Band 20   23,065.379                            7.05   162,611
                   Band 21   1,524.352                            7.02   10,701
                   Band 35   35,199.108                            7.15   251,674
                   Band 36   5,675.399                            7.05   40,012
                   Band 37   3,946.367                            6.98   27,546
                   Band 38   46,149.003                            9.18   423,648
                   Band 39   23,529.076                            9.08   213,644
                   Band 40   2,027.872                            9.00   18,251
                   Band 46   48,543.269                            6.99   339,317
                   Band 47   11,905.237                            6.97   82,980
                   Band 51   3,252.524                            7.01   22,800
                   Band 55   6,146.311                            7.10   43,639
    679,252.253       $ 4,949,034

244

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units          Unit Value   Extended Value
                   ING UBS U.S. Large Cap Equity Portfolio - Service            
                       Class            
                   Contracts in accumulation period:            
                   Band 2   2,302.960   $ 7.53   $ 17,341
                   Band 4   34,379.827                            8.02   275,726
                   Band 5   328.062                            7.45   2,444
                   Band 6   159,711.720                            7.42   1,185,061
                   Band 7   34,547.766                            7.95   274,655
                   Band 8   71,305.482                            7.38   526,234
                   Band 9   6,352.589                            7.89   50,122
                   Band 10   76,305.693                            7.87   600,526
                   Band 11   13,052.525                            7.34   95,806
                   Band 12   4,609.801                            7.33   33,790
                   Band 13   35,558.980                            7.82   278,071
                   Band 14   21,470.320                            7.28   156,304
                   Band 15   47,479.745                            7.76   368,443
                   Band 16   1,258.713                            7.24   9,113
                   Band 17   56,718.237                            7.23   410,073
                   Band 19   666.425                            7.65   5,098
                   Band 20   8,392.731                            7.80   65,463
                   Band 21   19,719.618                            7.74   152,630
                   Band 26   8,205.209                            8.14   66,790
                   Band 27   622.843                            8.02   4,995
                   Band 28   7,341.465                            7.97   58,511
                   Band 29   8,956.616                            7.95   71,205
                   Band 30   484.065                            7.84   3,795
                   Band 31   633.743                            7.78   4,931
                   Band 35   19,727.796                            7.56   149,142
                   Band 37   17,651.963                            7.38   130,271
                   Band 38   50,962.911                            9.25   471,407
                   Band 39   8,498.800                            9.15   77,764
                   Band 40   10,394.787                            9.08   94,385
                   Band 41   12,400.014                            7.84   97,216
                   Band 42   1,000.714                            7.76   7,766
                   Band 43   8,230.899                            7.71   63,460
                   Band 46   29,918.589                            7.20   215,414
                   Band 47   16,867.932                            7.16   120,774
    796,059.540       $ 6,144,726
 
 
 
 
                                                                                                                               245            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Van Kampen Comstock Portfolio - Service Class            
                   Contracts in accumulation period:            
                   Band 2   2,522.719   $ 7.41   $ 18,693
                   Band 4   149,236.982                            9.06   1,352,087
                   Band 5   21,597.295                            8.65   186,817
                   Band 6   2,342,903.101                            8.59   20,125,538
                   Band 7   328,003.396                            8.56   2,807,709
                   Band 8   881,846.451                            8.50   7,495,695
                   Band 9   223,592.541                            8.48   1,896,065
                   Band 10   2,466,881.046                            8.45   20,845,145
                   Band 11   166,432.268                            8.42   1,401,360
                   Band 12   415,401.839                            8.39   3,485,221
                   Band 13   451,444.840                            8.36   3,774,079
                   Band 14   854,931.127                            7.73   6,608,618
                   Band 15   1,390,973.833                            8.28   11,517,263
                   Band 16   59,474.226                            6.98   415,130
                   Band 17   958,697.794                            7.66   7,343,625
                   Band 18   534.073                            7.10   3,792
                   Band 19   44,946.813                            7.48   336,202
                   Band 20   2,360,477.077                            8.33   19,662,774
                   Band 21   115,956.013                            7.57   877,787
                   Band 26   211,587.359                            8.86   1,874,664
                   Band 27   89,234.351                            8.68   774,554
                   Band 28   22,912.489                            8.59   196,818
                   Band 29   156,177.561                            8.56   1,336,880
                   Band 30   100,672.268                            8.39   844,640
                   Band 31   39,123.593                            8.30   324,726
                   Band 32   7,423.737                            8.14   60,429
                   Band 33   1,382.955                            8.03   11,105
                   Band 34   7,216.000                            7.95   57,367
                   Band 35   65,309.457                            8.98   586,479
                   Band 36   23,949.552                            8.86   212,193
                   Band 37   16,939.322                            8.77   148,558
                   Band 38   277,869.654                            9.57   2,659,213
                   Band 39   83,504.040                            9.46   789,948
                   Band 40   10,417.574                            9.39   97,821
                   Band 41   37,862.159                            8.82   333,944
                   Band 42   11,796.530                            8.72   102,866
                   Band 43   96,752.946                            8.65   836,913
                   Band 44   3,089.836                            7.55   23,328
                   Band 45   10,365.474                            7.43   77,015
                   Band 46   1,831,856.441                            6.94   12,713,084
                   Band 47   65,667.216                            7.04   462,297
                   Band 50   1,077.279                            6.73   7,250
                   Band 55   1,923.631                            6.77   13,023
                   Band 56   80,652.313                            6.55   528,273
    16,490,617.171       $ 135,226,988

246

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract        Units   Unit Value   Extended Value
                   ING Van Kampen Equity and Income Portfolio - Initial            
                       Class            
                   Contracts in accumulation period:            
                   Band 35   182,051.276   $ 9.55   $ 1,738,590
                   Band 36   7,450.776   9.48   70,633
                   Band 37   5,414.469   9.43   51,058
                   Band 38   16,203.051   9.46   153,281
                   Band 39   8,818.124   9.39   82,802
                   Band 40   713.367   9.34   6,663
    220,651.063       $ 2,103,027
                   ING Van Kampen Equity and Income Portfolio -            
                       Service Class            
                   Contracts in accumulation period:            
                   Band 2   8,047.807   $ 9.38   $ 75,488
                   Band 4   120,669.849   9.29   1,121,023
                   Band 5   45,330.265   9.27   420,212
                   Band 6   2,734,003.767   9.24   25,262,195
                   Band 7   1,127,555.734   9.22   10,396,064
                   Band 8   999,855.016   9.19   9,188,668
                   Band 9   236,035.770   9.17   2,164,448
                   Band 10   2,755,179.679   9.15   25,209,894
                   Band 11   738,976.177   9.13   6,746,852
                   Band 12   306,847.639   9.12   2,798,450
                   Band 13   1,330,883.892   9.10   12,111,043
                   Band 14   1,767,987.342   9.07   16,035,645
                   Band 15   939,387.676   9.05   8,501,458
                   Band 16   266,602.610   9.01   2,402,090
                   Band 17   986,332.266   9.00   8,876,990
                   Band 18   12,392.558   8.98   111,285
                   Band 19   68,984.860   8.95   617,414
                   Band 20   602,758.768   9.08   5,473,050
                   Band 21   123,762.674   9.03   1,117,577
                   Band 25   13,929.192   7.92   110,319
                   Band 26   229,289.846   9.39   2,153,032
                   Band 27   72,567.426   9.29   674,151
                   Band 28   23,210.589   9.24   214,466
                   Band 29   190,772.796   9.22   1,758,925
                   Band 30   72,922.002   9.12   665,049
                   Band 31   33,283.892   9.06   301,552
                   Band 32   6,461.334   8.97   57,958
                   Band 35   273,911.590   9.68   2,651,464
                   Band 36   45,619.762   9.55   435,669
                   Band 37   38,897.198   9.45   367,579
                   Band 38   736,746.701   11.55   8,509,424
                   Band 39   89,823.221   11.42   1,025,781
                   Band 40   80,818.660   11.33   915,675
                   Band 41   5,547.029   9.12   50,589
                   Band 42   632.011   9.05   5,720

247

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract   Units   Unit Value   Extended Value
                   ING Van Kampen Equity and Income Portfolio -            
                       Service Class (continued)            
                   Band 43   36,344.664   $ 9.00   $ 327,102
                   Band 45   3,857.177   8.83   34,059
                   Band 46   927,898.689   8.96   8,313,972
                   Band 47   122,184.918   8.91   1,088,668
                   Band 49   101,363.095   7.61   771,373
                   Band 50   279.695   7.27   2,033
                   Band 51   825.297   7.23   5,967
                   Band 53   1,839.361   7.28   13,391
                   Band 56   95,228.080   7.67   730,399
                   Band 57   13,008.826   7.63   99,257
                   Band 58   1,659.510   7.61   12,629
    18,390,516.910       $ 169,926,049
                   ING VP Strategic Allocation Conservative Portfolio -            
                       Class S            
                   Contracts in accumulation period:            
                   Band 35   23,208.518   $ 11.42   $ 265,041
                   Band 36   17,330.735   11.33   196,357
                   Band 37   2,136.936   11.27   24,083
                   Band 38   51,177.531   11.31   578,818
                   Band 39   9,367.444   11.23   105,196
                   Band 40   85.143   11.17   951
    103,306.307       $ 1,170,446
                   ING VP Strategic Allocation Growth Portfolio -            
                       Class S            
                   Contracts in accumulation period:            
                   Band 35   9,649.901   $ 11.49   $ 110,877
                   Band 37   611.817   11.35   6,944
                   Band 38   13,948.090   11.39   158,869
                   Band 39   7,623.125   11.30   86,141
                   Band 40   13,275.075   11.24   149,212
    45,108.008       $ 512,043
                   ING VP Strategic Allocation Moderate Portfolio -            
                       Class S            
                   Contracts in accumulation period:            
                   Band 35   14,697.166   $ 11.46   $ 168,430
                   Band 36   4,079.047   11.37   46,379
                   Band 37   2,832.287   11.31   32,033
                   Band 38   15,513.731   11.35   176,081
                   Band 39   5,610.131   11.27   63,226
                   Band 40   7,730.574   11.20   86,582
    50,462.936       $ 572,731
                   ING VP Growth and Income Portfolio - Class I            
                   Contracts in accumulation period:            
                   Band 22   594.484   $ 6.14   $ 3,650
                   Band 23   14,061.098   6.12   86,054
    14,655.582       $ 89,704

248

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING VP Growth and Income Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 2   26,877.246   $ 6.13   $ 164,758
                   Band 3   4,189.755   6.85   28,700
                   Band 4   58,151.556   6.11   355,306
                   Band 5   352,049.990   6.11   2,151,025
                   Band 6   3,900,948.720   6.10   23,795,787
                   Band 7   5,498,421.697   6.10   33,540,372
                   Band 8   1,706,785.926   6.09   10,394,326
                   Band 9   1,075,276.478   6.09   6,548,434
                   Band 10   3,269,385.603   6.09   19,910,558
                   Band 11   3,117,554.640   6.08   18,954,732
                   Band 12   2,172,968.587   6.08   13,211,649
                   Band 13   4,115,315.875   6.07   24,979,967
                   Band 14   6,454,891.420   6.07   39,181,191
                   Band 15   613,853.337   6.06   3,719,951
                   Band 16   187,908.087   6.06   1,138,723
                   Band 17   2,481,381.036   6.05   15,012,355
                   Band 18   155,867.815   6.05   943,000
                   Band 19   374,141.407   6.04   2,259,814
                   Band 20   2,455,631.677   6.07   14,905,684
                   Band 21   518,167.662   6.06   3,140,096
                   Band 24   243.068   6.17   1,500
                   Band 25   108,408.907   6.86   743,685
                   Band 26   1,055,301.104   6.13   6,468,996
                   Band 27   331,076.920   6.11   2,022,880
                   Band 28   155,058.564   6.10   945,857
                   Band 29   1,745,645.831   6.10   10,648,440
                   Band 30   1,016,110.724   6.08   6,177,953
                   Band 31   539,830.644   6.07   3,276,772
                   Band 32   5,300.825   6.05   32,070
                   Band 33   4,555.774   6.03   27,471
                   Band 34   5,453.311   6.02   32,829
                   Band 35   251,002.174   10.33   2,592,852
                   Band 36   13,787.804   10.22   140,911
                   Band 37   12,283.059   10.13   124,427
                   Band 38   292,483.080   9.72   2,842,936
                   Band 39   35,139.610   9.61   337,692
                   Band 40   23,825.305   9.53   227,055
                   Band 41   3,917.651   6.08   23,819
                   Band 43   10,865.565   6.05   65,737
                   Band 44   575.852   6.03   3,472
                   Band 45   6,956.691   6.02   41,879
                   Band 46   502,599.988   6.05   3,040,730
                   Band 47   92,800.424   6.04   560,515
                   Band 50   754.942   6.52   4,922
                   Band 56   9,481.521   6.55   62,104
    44,763,227.852       $ 274,783,932

249

ING USA ANNUITY AND 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   57,600.452   $ 10.00   $ 576,005
                   Band 9   438,091.435   9.90   4,337,105
                   Band 13   62,253.385   9.80   610,083
                   Band 14   17,740.768   9.75   172,972
                   Band 15   153,998.756   9.73   1,498,408
                   Band 26   411,580.132   10.23   4,210,465
                   Band 27   174,859.782   10.08   1,762,587
                   Band 28   75,312.790   10.00   753,128
                   Band 29   1,472,150.627   9.97   14,677,342
                   Band 30   611,776.205   9.82   6,007,642
                   Band 31   351,196.110   9.74   3,420,650
                   Band 32   30,216.228   9.61   290,378
                   Band 33   9,209.195   9.51   87,579
                   Band 34   15,794.762   9.43   148,945
                   Band 36   10,386.790   10.24   106,361
                   Band 38   12,997.447   10.21   132,704
    3,905,164.864       $ 38,792,354
                   ING GET U.S. Core Portfolio - Series 4            
                   Contracts in accumulation period:            
                   Band 6   18,522.519   $ 10.26   $ 190,041
                   Band 9   296,263.968   10.16   3,010,042
                   Band 10   76,488.393   10.14   775,592
                   Band 12   5,868.697   10.09   59,215
                   Band 13   48,231.403   10.06   485,208
                   Band 15   159,677.002   9.99   1,595,173
                   Band 19   17,358.585   9.84   170,808
                   Band 20   5,373.612   10.04   53,951
                   Band 21   87,906.122   9.96   875,545
                   Band 26   395,154.452   10.48   4,141,219
                   Band 27   173,111.481   10.33   1,788,242
                   Band 28   71,787.614   10.26   736,541
                   Band 29   764,198.188   10.23   7,817,747
                   Band 30   260,911.201   10.08   2,629,985
                   Band 31   143,720.972   10.01   1,438,647
                   Band 32   54,035.487   9.87   533,330
                   Band 34   8,473.477   9.70   82,193
                   Band 36   32,073.231   10.49   336,448
                   Band 38   11,380.958   10.46   119,045
                   Band 39   6,700.429   10.36   69,416
                   Band 40   2,661.192   10.29   27,384
                   Band 45   5,275.201   9.72   51,275
    2,645,174.184       $ 26,987,047

250

ING USA ANNUITY AND 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   5,583.066   $ 10.48   $ 58,511
                   Band 9   22,018.429   10.39   228,771
                   Band 10   207,668.755   10.36   2,151,448
                   Band 13   688.231   10.29   7,082
                   Band 15   50,019.408   10.22   511,198
                   Band 20   17,197.157   10.27   176,615
                   Band 21   71,929.840   10.20   733,684
                   Band 26   165,203.270   10.70   1,767,675
                   Band 27   30,555.436   10.55   322,360
                   Band 28   19,782.922   10.48   207,325
                   Band 29   542,500.836   10.46   5,674,559
                   Band 30   415,863.678   10.31   4,287,555
                   Band 31   67,669.034   10.24   692,931
                   Band 32   567.094   10.11   5,733
                   Band 38   7,935.078   10.68   84,747
                   Band 39   2,204.905   10.58   23,328
    1,627,387.139       $ 16,933,522
                   ING GET U.S. Core Portfolio - Series 6            
                   Contracts in accumulation period:            
                   Band 6   2,443.827   $ 10.26   $ 25,074
                   Band 9   31,500.010   10.17   320,355
                   Band 10   44,038.582   10.15   446,992
                   Band 12   1,480.352   10.11   14,966
                   Band 13   10,623.802   10.08   107,088
                   Band 15   45,480.122   10.02   455,711
                   Band 19   2,769.706   9.89   27,392
                   Band 20   3,269.863   10.06   32,895
                   Band 21   72,638.036   10.00   726,380
                   Band 26   304,606.840   10.46   3,186,188
                   Band 27   84,645.846   10.33   874,392
                   Band 28   71,192.680   10.26   730,437
                   Band 29   742,324.298   10.24   7,601,401
                   Band 30   219,456.979   10.10   2,216,515
                   Band 31   145,038.369   10.03   1,454,735
                   Band 32   8,361.344   9.91   82,861
                   Band 34   4,503.103   9.76   43,950
                   Band 38   30,983.093   10.44   323,463
                   Band 39   3,116.651   10.35   32,257
                   Band 45   710.890   9.75   6,931
    1,829,184.393       $ 18,709,983

251

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING GET U.S. Core Portfolio - Series 7            
                   Contracts in accumulation period:            
                   Band 6   319.014   $ 10.26   $ 3,273
                   Band 9   84,406.552   10.18   859,259
                   Band 10   33,100.757   10.16   336,304
                   Band 13   9,199.260   10.09   92,821
                   Band 15   32,884.271   10.03   329,829
                   Band 20   7,273.349   10.07   73,243
                   Band 21   37,527.220   10.01   375,647
                   Band 26   147,585.457   10.45   1,542,268
                   Band 27   26,308.880   10.32   271,508
                   Band 28   5,167.101   10.26   53,014
                   Band 29   595,690.902   10.24   6,099,875
                   Band 30   105,189.828   10.11   1,063,469
                   Band 31   82,766.497   10.05   831,803
                   Band 33   1,089.585   9.85   10,732
                   Band 44   691.382   9.84   6,803
    1,169,200.055       $ 11,949,848
                   ING GET U.S. Core Portfolio - Series 8            
                   Contracts in accumulation period:            
                   Band 6   207.214   $ 10.22   $ 2,118
                   Band 9   13,816.063   10.14   140,095
                   Band 10   60,871.650   10.12   616,021
                   Band 13   1,263.392   10.06   12,710
                   Band 15   8,445.045   10.00   84,450
                   Band 21   15,656.132   9.98   156,248
                   Band 26   148,411.581   10.39   1,541,996
                   Band 27   49,332.762   10.27   506,647
                   Band 28   16,779.958   10.21   171,323
                   Band 29   298,520.696   10.19   3,041,926
                   Band 30   52,614.605   10.08   530,355
                   Band 31   48,867.738   10.02   489,655
                   Band 35   286.991   10.48   3,008
                   Band 38   10,087.824   10.38   104,712
    725,161.651       $ 7,401,264

252

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING GET U.S. Core Portfolio - Series 9            
                   Contracts in accumulation period:            
                   Band 9   7,751.992   $ 10.14   $ 78,605
                   Band 10   19,021.741   10.12   192,500
                   Band 13   1,499.205   10.06   15,082
                   Band 15   581.240   10.01   5,818
                   Band 20   4,077.434   10.05   40,978
                   Band 21   990.176   9.99   9,892
                   Band 26   118,126.340   10.38   1,226,151
                   Band 27   68,999.899   10.26   707,939
                   Band 28   58,580.583   10.21   598,108
                   Band 29   158,012.981   10.19   1,610,152
                   Band 30   80,938.293   10.08   815,858
                   Band 31   63,549.837   10.02   636,769
                   Band 32   1,110.944   9.92   11,021
                   Band 39   12,867.566   10.28   132,279
    596,108.231       $ 6,081,152
                   ING GET U.S. Core Portfolio - Series 10            
                   Contracts in accumulation period:            
                   Band 9   15,616.395   $ 10.22   $ 159,600
                   Band 10   48,965.291   10.21   499,936
                   Band 13   13,749.874   10.16   139,699
                   Band 15   398.476   10.10   4,025
                   Band 19   35,162.453   10.00   351,625
                   Band 20   3,182.603   10.14   32,272
                   Band 21   301.818   10.09   3,045
                   Band 26   58,709.038   10.45   613,509
                   Band 27   845.973   10.34   8,747
                   Band 29   138,088.864   10.27   1,418,173
                   Band 30   21,442.665   10.17   218,072
                   Band 31   149,330.702   10.12   1,511,227
                   Band 33   768.645   9.95   7,648
                   Band 35   14,935.915   10.52   157,126
    501,498.712       $ 5,124,704
                   ING GET U.S. Core Portfolio - Series 11            
                   Contracts in accumulation period:            
                   Band 9   13,268.250   $ 10.40   $ 137,990
                   Band 10   39,636.488   10.38   411,427
                   Band 13   2,945.004   10.33   30,422
                   Band 15   77,890.004   10.29   801,488
                   Band 21   95,967.617   10.27   985,587
                   Band 26   113,464.241   10.61   1,203,856
                   Band 27   46,441.318   10.51   488,098
                   Band 28   10,009.463   10.46   104,699
                   Band 29   80,921.053   10.45   845,625
                   Band 30   200,908.557   10.35   2,079,404
                   Band 31   56,042.241   10.30   577,235
                   Band 39   1.345   10.53   14
                   Band 44   4,249.482   10.14   43,090
    741,745.063       $ 7,708,935

253

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING GET U.S. Core Portfolio - Series 12            
                   Contracts in accumulation period:            
                   Band 9   16,959.443   $ 10.35   $ 175,530
                   Band 10   19,592.645   10.34   202,588
                   Band 13   602.670   10.29   6,201
                   Band 15   3,197.037   10.25   32,770
                   Band 19   2,269.727   10.16   23,060
                   Band 21   6,614.772   10.24   67,735
                   Band 26   31,209.589   10.55   329,261
                   Band 27   37,517.229   10.46   392,430
                   Band 29   107,711.251   10.40   1,120,197
                   Band 30   34,878.233   10.31   359,595
                   Band 31   3,902.932   10.26   40,044
                   Band 32   1,547.975   10.18   15,758
                   Band 34   1,610.598   10.08   16,235
    267,614.101       $ 2,781,404
                   ING GET U.S. Core Portfolio - Series 13            
                   Contracts in accumulation period:            
                   Band 9   7,964.697   $ 10.37   $ 82,594
                   Band 10   12,108.847   10.36   125,448
                   Band 15   7,401.902   10.28   76,092
                   Band 26   859,259.831   10.54   9,056,599
                   Band 27   696,696.477   10.46   7,287,445
                   Band 28   396,183.076   10.42   4,128,228
                   Band 29   159,965.408   10.41   1,665,240
                   Band 30   33,813.957   10.33   349,298
                   Band 31   30,530.292   10.29   314,157
                   Band 33   210.228   10.16   2,136
    2,204,134.715       $ 23,087,237
                   ING GET U.S. Core Portfolio - Series 14            
                   Contracts in accumulation period:            
                   Band 9   225,875.635   $ 10.30   $ 2,326,519
                   Band 10   13,587.001   10.29   139,810
                   Band 13   100,852.088   10.26   1,034,742
                   Band 14   11,133.597   10.24   114,008
                   Band 15   74,183.597   10.23   758,898
                   Band 19   1,480.126   10.16   15,038
                   Band 21   2,936.331   10.22   30,009
                   Band 26   1,206,303.034   10.44   12,593,804
                   Band 27   692,684.558   10.37   7,183,139
                   Band 28   200,281.364   10.34   2,070,909
                   Band 29   2,532,980.583   10.33   26,165,689
                   Band 30   1,606,913.297   10.27   16,503,000
                   Band 31   662,892.311   10.24   6,788,017
                   Band 32   50,880.548   10.18   517,964
                   Band 34   238.974   10.10   2,414
    7,383,223.044       $ 76,243,960

254

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING BlackRock Global Science and Technology            
Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 2   11,735.317   $ 6.52   $ 76,514
                   Band 4   44,806.928                            6.51   291,693
                   Band 5   10,621.805                            6.51   69,148
                   Band 6   1,504,064.689                            6.50   9,776,420
                   Band 7   919,097.645                            6.50   5,974,135
                   Band 8   957,500.805                            6.50   6,223,755
                   Band 9   83,613.884                            6.49   542,654
                   Band 10   2,342,949.681                            6.49   15,205,743
                   Band 11   476,360.105                            6.49   3,091,577
                   Band 12   215,733.390                            6.49   1,400,110
                   Band 13   917,208.352                            6.48   5,943,510
                   Band 14   1,504,668.042                            6.48   9,750,249
                   Band 15   878,672.290                            6.48   5,693,796
                   Band 16   91,091.080                            6.47   589,359
                   Band 17   1,051,868.753                            6.47   6,805,591
                   Band 18   65,057.600                            6.47   420,923
                   Band 19   71,493.689                            6.46   461,849
                   Band 20   683,675.765                            6.48   4,430,219
                   Band 21   106,495.124                            6.47   689,023
                   Band 25   1,418.348                            6.52   9,248
                   Band 26   18,328.946                            6.52   119,505
                   Band 27   1,518.530                            6.51   9,886
                   Band 28   1,368.489                            6.50   8,895
                   Band 29   189,035.805                            6.50   1,228,733
                   Band 30   19,449.777                            6.49   126,229
                   Band 31   3,252.472                            6.48   21,076
                   Band 35   7,915.148                            9.58   75,827
                   Band 36   4,010.060                            9.51   38,136
                   Band 37   10,112.377                            9.45   95,562
                   Band 38   95,313.656                            9.49   904,527
                   Band 39   18,200.960                            9.42   171,453
                   Band 40   22,782.227                            9.37   213,469
                   Band 41   25,689.880                            6.49   166,727
                   Band 42   18,453.639                            6.48   119,580
                   Band 43   10,258.187                            6.47   66,370
                   Band 45   13,679.440                            6.45   88,232
                   Band 46   819,580.796                            6.47   5,302,688
                   Band 47   84,560.793                            6.46   546,263
                   Band 50   349.026                            6.48   2,262
                   Band 51   1,602.543                            6.47   10,368
                   Band 52   2,520.755                            6.50   16,385
                   Band 55   14,549.977                            6.50   94,575
                   Band 56   73,729.475                            6.51   479,979
                   Band 57   13,864.185                            6.49   89,979
    13,408,260.435       $ 87,442,222

255

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING Global Equity Option Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 6   85,858.150   $ 7.85   $ 673,986
                   Band 7   772.362                            7.85   6,063
                   Band 8   14,167.294                            7.85   111,213
                   Band 10   84,473.520                            7.84   662,272
                   Band 11   15,326.871                            7.84   120,163
                   Band 13   1,973.694                            7.84   15,474
                   Band 14   9,923.329                            7.84   77,799
                   Band 15   27,777.572                            7.83   217,498
                   Band 17   2,447.572                            7.83   19,164
                   Band 20   3,960.068                            7.84   31,047
                   Band 46   4,524.261                            7.83   35,425
                   Band 56   9,456.033                            7.86   74,324
    260,660.726       $ 2,044,428
                   ING International Index Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 5   184.476   $ 6.07   $ 1,120
                   Band 6   139,687.231                            6.06   846,505
                   Band 7   37,211.637                            6.06   225,503
                   Band 8   94,606.056                            6.06   573,313
                   Band 9   48,599.530                            6.06   294,513
                   Band 10   309,275.992                            6.05   1,871,120
                   Band 11   47,877.488                            6.05   289,659
                   Band 12   3,329.357                            6.05   20,143
                   Band 13   47,456.221                            6.05   287,110
                   Band 14   45,302.286                            6.04   273,626
                   Band 15   72,627.267                            6.04   438,669
                   Band 16   590.349                            6.04   3,566
                   Band 17   31,700.755                            6.03   191,156
                   Band 19   2,085.670                            6.03   12,577
                   Band 20   44,122.965                            6.04   266,503
                   Band 21   2,223.677                            6.04   13,431
                   Band 26   808.621                            6.09   4,925
                   Band 29   4,908.251                            6.06   29,744
                   Band 30   933.570                            6.05   5,648
                   Band 38   1,171.541                            6.08   7,123
                   Band 41   364.980                            6.05   2,208
                   Band 46   29,836.537                            6.03   179,914
                   Band 47   2,335.372                            6.02   14,059
                   Band 56   31,008.829                            6.08   188,534
    998,248.658       $ 6,040,669

256

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING Lehman Brothers U.S. Aggregate Bond Index®            
Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 3   439.343   $ 10.40   $ 4,569
                   Band 4   72,700.692   10.21   742,274
                   Band 5   13,989.673   10.21   142,835
                   Band 6   3,388,764.694   10.20   34,565,400
                   Band 7   1,644,113.767   10.20   16,769,960
                   Band 8   934,343.510   10.19   9,520,960
                   Band 9   89,649.710   10.19   913,531
                   Band 10   2,170,741.349   10.18   22,098,147
                   Band 11   633,677.454   10.18   6,450,836
                   Band 12   374,087.260   10.17   3,804,467
                   Band 13   927,556.735   10.17   9,433,252
                   Band 14   1,356,858.644   10.16   13,785,684
                   Band 15   808,243.272   10.16   8,211,752
                   Band 16   217,147.617   10.15   2,204,048
                   Band 17   1,631,654.741   10.15   16,561,296
                   Band 18   9,633.416   10.14   97,683
                   Band 19   15,170.884   10.14   153,833
                   Band 20   831,230.398   10.17   8,453,613
                   Band 21   122,519.675   10.15   1,243,575
                   Band 25   556.585   10.41   5,794
                   Band 26   33,796.336   10.24   346,074
                   Band 27   10,308.647   10.21   105,251
                   Band 28   6,183.554   10.20   63,072
                   Band 29   229,001.168   10.20   2,335,812
                   Band 30   15,769.010   10.17   160,371
                   Band 31   7,903.074   10.16   80,295
                   Band 34   2,022.634   10.11   20,449
                   Band 35   13,014.326   10.25   133,397
                   Band 36   3,535.006   10.24   36,198
                   Band 37   910.117   10.22   9,301
                   Band 38   174,461.066   10.23   1,784,737
                   Band 39   41,528.288   10.22   424,419
                   Band 40   42,924.775   10.20   437,833
                   Band 41   6,579.659   10.17   66,915
                   Band 42   753.437   10.16   7,655
                   Band 43   10,749.421   10.15   109,107
                   Band 45   7,006.631   10.11   70,837
                   Band 46   989,453.060   10.14   10,033,054
                   Band 47   266,714.475   10.13   2,701,818
                   Band 50   497.007   10.17   5,055
                   Band 55   9,266.325   10.19   94,424
                   Band 56   283,883.401   10.22   2,901,288
                   Band 57   15,669.474   10.18   159,515
                   Band 59   1,958.038   10.14   19,855
                   Band 60   1,197.562   10.19   12,203
    17,418,165.910       $ 177,282,444

257

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units          Unit Value   Extended Value
                   ING Opportunistic Large Cap Growth Portfolio -            
                       Class S            
                   Contracts in accumulation period:            
                   Band 35   13,030.120   $ 6.76   $ 88,084
                   Band 36   4,323.502                            6.67   28,838
                   Band 37   2,439.150                            6.60   16,098
                   Band 38   18,249.715                            8.56   156,218
                   Band 39   4,996.074                            8.47   42,317
                   Band 40   2,205.220                            8.40   18,524
    45,243.781       $ 350,079
                   ING Opportunistic Large Cap Value Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 4   8,815.956   $ 9.32   $ 82,165
                   Band 5   13,266.292                            6.77   89,813
                   Band 6   124,064.620                            7.27   901,950
                   Band 7   299,617.631                            6.70   2,007,438
                   Band 8   14,710.754                            7.24   106,506
                   Band 9   46,935.154                            6.62   310,711
                   Band 10   81,025.849                            8.15   660,361
                   Band 11   121,785.090                            7.21   878,070
                   Band 12   50,830.289                            7.19   365,470
                   Band 13   141,143.629                            6.52   920,256
                   Band 14   181,135.392                            7.16   1,296,929
                   Band 15   37,088.746                            6.45   239,222
                   Band 16   12,132.001                            7.13   86,501
                   Band 17   27,514.701                            7.12   195,905
                   Band 18   4,868.232                            7.10   34,564
                   Band 19   5,964.529                            7.92   47,239
                   Band 20   71,527.316                            8.08   577,941
                   Band 21   21,449.613                            8.02   172,026
                   Band 25   389.936                            7.39   2,882
                   Band 26   88,588.081                            6.95   615,687
                   Band 27   48,304.347                            6.80   328,470
                   Band 28   21,696.109                            6.72   145,798
                   Band 29   58,217.629                            6.69   389,476
                   Band 30   36,393.894                            6.54   238,016
                   Band 31   26,529.714                            6.47   171,647
                   Band 34   2,916.365                            6.16   17,965
                   Band 35   15,540.387                            7.06   109,715
                   Band 36   6,100.961                            6.95   42,402
                   Band 38   22,072.018                            9.78   215,864
                   Band 39   2,090.502                            9.67   20,215
                   Band 40   2,740.734                            9.59   26,284
                   Band 41   2,028.229                            9.07   18,396
                   Band 42   826.700                            8.97   7,415
                   Band 43   27,230.461                            8.90   242,351
    1,625,541.861       $ 11,565,650

258

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units          Unit Value   Extended Value
                   ING Russell™ Global Large Cap Index 85% Portfolio            
                       - Class S            
                   Contracts in accumulation period:            
                   Band 6   88,194.845   $ 8.14   $ 717,906
                   Band 7   3,906.660                            8.14   31,800
                   Band 8   43,885.072                            8.14   357,224
                   Band 10   94,633.092                            8.14   770,313
                   Band 11   11,318.431                            8.14   92,132
                   Band 13   7,874.077                            8.13   64,016
                   Band 14   3,906.852                            8.13   31,763
                   Band 15   9,124.237                            8.13   74,180
                   Band 16   28,522.475                            8.13   231,888
                   Band 17   5,802.652                            8.13   47,176
                   Band 19   2,701.610                            8.12   21,937
                   Band 20   1,013.080                            8.13   8,236
                   Band 46   22,980.860                            8.12   186,605
                   Band 47   996.693                            8.12   8,093
                   Band 56   10,039.199                            8.15   81,819
    334,899.835       $ 2,725,088
                   ING Russell™ Large Cap Index Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 1   3,240.300   $ 6.66   $ 21,580
                   Band 2   5,033.880                            6.73   33,878
                   Band 4   126,808.085                            6.72   852,150
                   Band 5   199.796                            6.72   1,343
                   Band 6   629,227.000                            6.71   4,222,113
                   Band 7   243,154.927                            6.71   1,631,570
                   Band 8   348,627.145                            6.70   2,335,802
                   Band 9   20,920.394                            6.70   140,167
                   Band 10   744,806.133                            6.70   4,990,201
                   Band 11   70,299.313                            6.70   471,005
                   Band 12   38,475.342                            6.69   257,400
                   Band 13   70,824.951                            6.69   473,819
                   Band 14   146,069.919                            6.69   977,208
                   Band 15   185,840.888                            6.68   1,241,417
                   Band 16   2,829.967                            6.68   18,904
                   Band 17   257,464.466                            6.68   1,719,863
                   Band 19   2,411.237                            6.67   16,083
                   Band 20   142,906.617                            6.69   956,045
                   Band 21   11,909.072                            6.68   79,553
                   Band 26   123,949.461                            6.73   834,180
                   Band 27   1,878.705                            6.72   12,625
                   Band 29   42,302.401                            6.71   283,849
                   Band 30   27,289.487                            6.69   182,567
                   Band 41   6,511.906                            6.69   43,565
                   Band 43   475.654                            6.68   3,177
                   Band 46   90,330.663                            6.67   602,506
                   Band 47   14,495.170                            6.66   96,538
                   Band 56   60,191.061                            6.72   404,484
    3,418,473.940       $ 22,903,592

259

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units          Unit Value   Extended Value
                   ING Russell™ Mid Cap Index Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 1   3,286.897   $ 6.04   $ 19,853
                   Band 2   8,721.267                            6.15   53,636
                   Band 4   15,575.751                            6.14   95,635
                   Band 5   1,193.213                            6.14   7,326
                   Band 6   578,346.434                            6.13   3,545,264
                   Band 7   121,498.984                            6.13   744,789
                   Band 8   299,431.278                            6.12   1,832,519
                   Band 9   12,196.098                            6.12   74,640
                   Band 10   1,062,309.843                            6.12   6,501,336
                   Band 11   100,640.739                            6.12   615,921
                   Band 12   20,591.746                            6.11   125,816
                   Band 13   178,288.448                            6.11   1,089,342
                   Band 14   82,850.106                            6.11   506,214
                   Band 15   303,340.226                            6.11   1,853,409
                   Band 16   3,204.807                            6.10   19,549
                   Band 17   282,724.005                            6.10   1,724,616
                   Band 18   2,615.690                            6.10   15,956
                   Band 19   5,140.369                            6.09   31,305
                   Band 20   85,468.520                            6.11   522,213
                   Band 21   44,802.716                            6.10   273,297
                   Band 26   786.278                            6.15   4,836
                   Band 27   111.580                            6.14   685
                   Band 29   16,261.535                            6.13   99,683
                   Band 30   8,333.624                            6.11   50,918
                   Band 31   303.003                            6.11   1,851
                   Band 38   4,221.927                            6.15   25,965
                   Band 41   1,990.617                            6.11   12,163
                   Band 46   269,459.560                            6.09   1,641,009
                   Band 47   79,433.688                            6.09   483,751
                   Band 55   510.261                            6.12   3,123
                   Band 56   104,249.480                            6.14   640,092
                   Band 57   5,181.492                            6.12   31,711
                   Band 59   480.516                            6.09   2,926
    3,703,550.698       $ 22,651,349

260

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING Russell™ Small Cap Index Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 1   836.948   $ 6.97   $ 5,834
                   Band 2   65.143                            6.99   455
                   Band 4   49,476.732                            6.98   345,348
                   Band 5   27,785.350                            6.98   193,942
                   Band 6   1,397,996.182                            6.97   9,744,033
                   Band 7   1,152,601.465                            6.97   8,033,632
                   Band 8   830,338.161                            6.96   5,779,154
                   Band 9   73,382.086                            6.96   510,739
                   Band 10   1,754,101.445                            6.96   12,208,546
                   Band 11   313,012.009                            6.95   2,175,433
                   Band 12   190,367.037                            6.95   1,323,051
                   Band 13   523,435.632                            6.95   3,637,878
                   Band 14   982,146.026                            6.94   6,816,093
                   Band 15   553,373.164                            6.94   3,840,410
                   Band 16   38,918.369                            6.94   270,093
                   Band 17   572,938.068                            6.93   3,970,461
                   Band 18   17,039.609                            6.93   118,084
                   Band 19   42,301.612                            6.93   293,150
                   Band 20   530,429.386                            6.95   3,686,484
                   Band 21   80,987.816                            6.94   562,055
                   Band 25   9,418.439                            7.00   65,929
                   Band 26   23,673.043                            6.99   165,475
                   Band 27   11,986.656                            6.98   83,667
                   Band 28   2,002.871                            6.97   13,960
                   Band 29   124,081.047                            6.97   864,845
                   Band 30   22,724.400                            6.95   157,935
                   Band 31   6,374.731                            6.94   44,241
                   Band 32   49.144                            6.93   341
                   Band 38   11,688.509                            6.99   81,703
                   Band 41   13,065.647                            6.95   90,806
                   Band 42   495.965                            6.94   3,442
                   Band 43   19,856.633                            6.93   137,606
                   Band 44   3,405.915                            6.91   23,535
                   Band 46   473,719.049                            6.93   3,282,873
                   Band 47   81,502.633                            6.92   563,998
                   Band 52   194.238                            6.97   1,354
                   Band 55   473.747                            6.96   3,297
                   Band 56   202,230.658                            6.98   1,411,570
                   Band 57   2,737.617                            6.95   19,026
                   Band 59   1,329.949                            6.93   9,217
    10,142,543.131       $ 70,539,695
 
 
 
 
                                                                                                                               261            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units          Unit Value   Extended Value
                   ING VP Index Plus LargeCap Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 2   9,336.446   $ 7.49   $ 69,930
                   Band 4   81,989.457                            7.35   602,623
                   Band 5   33,921.471                            7.33   248,644
                   Band 6   1,295,966.356                            7.27   9,421,675
                   Band 7   1,042,303.200                            7.24   7,546,275
                   Band 8   923,149.313                            7.19   6,637,444
                   Band 9   832,109.770                            7.16   5,957,906
                   Band 10   1,568,394.297                            7.13   11,182,651
                   Band 11   269,073.377                            7.11   1,913,112
                   Band 12   219,707.921                            7.08   1,555,532
                   Band 13   1,763,254.322                            7.05   12,430,943
                   Band 14   1,576,522.111                            7.00   11,035,655
                   Band 15   1,099,092.947                            6.97   7,660,678
                   Band 16   81,286.194                            6.92   562,500
                   Band 17   1,195,224.991                            6.89   8,235,100
                   Band 18   20,075.132                            6.87   137,916
                   Band 19   130,306.626                            6.82   888,691
                   Band 20   872,801.083                            7.03   6,135,792
                   Band 21   154,509.153                            6.95   1,073,839
                   Band 26   1,834,630.032                            7.52   13,796,418
                   Band 27   741,256.590                            7.35   5,448,236
                   Band 28   276,746.374                            7.27   2,011,946
                   Band 29   3,152,417.776                            7.24   22,823,505
                   Band 30   1,943,130.250                            7.08   13,757,362
                   Band 31   1,162,616.300                            7.00   8,138,314
                   Band 32   7,911.234                            6.85   54,192
                   Band 33   10,705.967                            6.74   72,158
                   Band 34   7,203.067                            6.67   48,044
                   Band 35   441,506.801                            7.64   3,373,112
                   Band 36   48,227.023                            7.52   362,667
                   Band 37   16,874.360                            7.44   125,545
                   Band 38   347,967.493                            9.49   3,302,212
                   Band 39   96,454.487                            9.39   905,708
                   Band 40   42,022.111                            9.31   391,226
                   Band 41   42,382.535                            8.75   370,847
                   Band 42   27,934.457                            8.65   241,633
                   Band 43   70,852.191                            8.58   607,912
                   Band 44   1,283.246                            7.71   9,894
                   Band 45   27,406.742                            7.60   208,291
                   Band 46   469,351.085                            7.27   3,412,182
                   Band 47   47,358.907                            7.22   341,931
                   Band 49   199,428.132                            6.45   1,286,311
                   Band 56   3,495.008                            6.53   22,822
                   Band 59   438.899                            6.46   2,835
    24,188,625.234       $ 174,412,209

262

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING VP Index Plus MidCap Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 2   4,240.064   $ 8.60   $ 36,465
                   Band 4   115,066.921   9.57   1,101,190
                   Band 5   23,413.179   9.65   225,937
                   Band 6   1,538,831.695   8.44   12,987,740
                   Band 7   588,431.729   9.54   5,613,639
                   Band 8   978,688.043   8.38   8,201,406
                   Band 9   312,338.705   9.43   2,945,354
                   Band 10   1,643,830.905   8.10   13,315,030
                   Band 11   251,096.493   8.32   2,089,123
                   Band 12   117,089.399   8.30   971,842
                   Band 13   813,644.615   9.29   7,558,758
                   Band 14   1,071,677.222   8.24   8,830,620
                   Band 15   721,207.646   9.19   6,627,898
                   Band 16   54,557.263   8.18   446,278
                   Band 17   1,227,732.034   8.16   10,018,293
                   Band 18   1,115.456   8.14   9,080
                   Band 19   34,946.498   7.87   275,029
                   Band 20   375,334.421   8.02   3,010,182
                   Band 21   174,742.232   7.97   1,392,696
                   Band 26   344,428.890   9.91   3,413,290
                   Band 27   144,045.695   9.69   1,395,803
                   Band 28   48,887.069   9.58   468,338
                   Band 29   365,949.871   9.54   3,491,162
                   Band 30   198,220.423   9.32   1,847,414
                   Band 31   129,754.480   9.22   1,196,336
                   Band 32   3,798.187   9.02   34,260
                   Band 33   3,481.791   8.88   30,918
                   Band 34   14,754.892   8.78   129,548
                   Band 35   233,141.638   10.06   2,345,405
                   Band 36   37,691.625   9.91   373,524
                   Band 37   9,834.210   9.80   96,375
                   Band 38   451,301.188   10.42   4,702,558
                   Band 39   117,944.184   10.30   1,214,825
                   Band 40   33,941.163   10.22   346,879
                   Band 41   46,047.367   9.32   429,161
                   Band 42   39,220.782   9.22   361,616
                   Band 43   83,037.186   9.14   758,960
                   Band 44   2,941.736   8.03   23,622
                   Band 45   30,198.664   7.73   233,436
                   Band 46   750,935.146   7.42   5,571,939
                   Band 47   68,891.943   7.38   508,423
                   Band 49   135,918.921   6.31   857,648
                   Band 50   5,008.244   6.85   34,306
                   Band 55   5,177.144   6.89   35,671
                   Band 56   16,369.411   6.60   108,038
    13,368,906.370       $ 115,666,015

263

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                             Division/Contract            Units   Unit Value   Extended Value
                     ING VP Index Plus SmallCap Portfolio - Class S            
                     Contracts in accumulation period:            
                     Band 2   2,384.156   $ 8.53   $ 20,337
                     Band 4   78,222.622   9.55   747,026
                     Band 5   18,584.618   9.97   185,289
                     Band 6   1,200,311.065   8.37   10,046,604
                     Band 7   403,831.281   9.86   3,981,776
                     Band 8   725,122.599   8.31   6,025,769
                     Band 9   268,146.487   9.75   2,614,428
                     Band 10   1,350,204.660   8.01   10,815,139
                     Band 11   220,947.959   8.25   1,822,821
                     Band 12   43,054.378   8.23   354,338
                     Band 13   778,309.898   9.60   7,471,775
                     Band 14   887,215.339   8.18   7,257,421
                     Band 15   505,902.385   9.49   4,801,014
                     Band 16   55,912.411   8.12   454,009
                     Band 17   988,868.306   8.10   8,009,833
                     Band 18   3,915.618   8.08   31,638
                     Band 19   59,409.381   7.79   462,799
                     Band 20   284,208.725   7.94   2,256,617
                     Band 21   116,671.449   7.88   919,371
                     Band 26   259,992.257   10.24   2,662,321
                     Band 27   98,975.684   10.01   990,747
                     Band 28   44,399.685   9.89   439,113
                     Band 29   221,419.533   9.86   2,183,197
                     Band 30   133,845.871   9.64   1,290,274
                     Band 31   104,323.979   9.53   994,208
                     Band 32   2,885.279   9.32   26,891
                     Band 33   2,007.783   9.18   18,431
                     Band 34   5,057.258   9.07   45,869
                     Band 35   112,142.310   10.39   1,165,159
                     Band 36   8,669.630   10.24   88,777
                     Band 37   4,555.746   10.12   46,104
                     Band 38   211,658.532   10.49   2,220,298
                     Band 39   39,446.258   10.38   409,452
                     Band 40   14,706.052   10.29   151,325
                     Band 41   41,369.706   9.30   384,738
                     Band 42   29,427.845   9.20   270,736
                     Band 43   95,117.942   9.13   868,427
                     Band 44   3,587.509   7.96   28,557
                     Band 45   17,431.726   7.64   133,178
                     Band 46   634,598.382   7.04   4,467,573
                     Band 47   59,154.773   7.00   414,083
                     Band 49   105,119.404   6.26   658,047
                     Band 52   240.789   6.59   1,587
                     Band 55   3,008.152   6.57   19,764
                     Band 56   52,284.885   7.10   371,223
    10,296,650.307       $ 88,628,083

264

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING VP Small Company Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 2   1,362.107   $ 7.17   $ 9,766
                   Band 4   12,098.038   7.16   86,622
                   Band 5   2,476.782   7.15   17,709
                   Band 6   686,734.080   7.15   4,910,149
                   Band 7   366,888.436   7.15   2,623,252
                   Band 8   469,428.052   7.14   3,351,716
                   Band 9   15,038.801   7.14   107,377
                   Band 10   1,110,458.021   7.14   7,928,670
                   Band 11   175,100.748   7.13   1,248,468
                   Band 12   49,664.743   7.13   354,110
                   Band 13   703,122.842   7.13   5,013,266
                   Band 14   369,315.216   7.12   2,629,524
                   Band 15   317,964.824   7.12   2,263,910
                   Band 16   38,694.834   7.12   275,507
                   Band 17   456,277.945   7.11   3,244,136
                   Band 18   76.830   7.11   546
                   Band 19   83,826.399   7.11   596,006
                   Band 20   123,785.226   7.13   882,589
                   Band 21   9,512.926   7.12   67,732
                   Band 26   57,125.423   7.17   409,589
                   Band 27   44,143.940   7.16   316,071
                   Band 28   1,199.761   7.15   8,578
                   Band 29   17,444.173   7.15   124,726
                   Band 30   9,187.286   7.13   65,505
                   Band 31   1,880.076   7.12   13,386
                   Band 34   354.883   7.09   2,516
                   Band 35   38,103.100   10.54   401,607
                   Band 36   15,958.733   10.39   165,811
                   Band 37   3,638.081   10.28   37,399
                   Band 38   211,208.904   11.93   2,519,722
                   Band 39   66,562.746   11.80   785,440
                   Band 40   3,952.540   11.70   46,245
                   Band 41   574.129   7.13   4,094
                   Band 42   803.413   7.12   5,720
                   Band 43   10,600.541   7.11   75,370
                   Band 46   259,587.782   7.11   1,845,669
                   Band 47   79,231.163   7.10   562,541
                   Band 51   492.671   7.11   3,503
                   Band 56   66,240.325   7.16   474,281
                   Band 57   751.597   7.13   5,359
    5,880,868.117       $ 43,484,187

265

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING WisdomTreeSM Global High-Yielding Equity            
                       Index Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 2   236.854   $ 6.04   $ 1,431
                   Band 4   24,116.823   6.09   146,871
                   Band 5   50.078   6.02   301
                   Band 6   4,193,381.263   6.08   25,495,758
                   Band 7   252,301.988   6.08   1,533,996
                   Band 8   1,417,424.558   6.07   8,603,767
                   Band 9   19,770.786   6.07   120,009
                   Band 10   8,258,859.365   6.06   50,048,688
                   Band 11   712,855.355   6.06   4,319,903
                   Band 12   51,243.117   6.06   310,533
                   Band 13   996,625.202   6.05   6,029,582
                   Band 14   996,600.979   6.05   6,029,436
                   Band 15   2,551,491.350   6.05   15,436,523
                   Band 16   87,362.336   6.04   527,669
                   Band 17   1,266,237.000   6.04   7,648,071
                   Band 18   2,276.068   6.03   13,725
                   Band 19   7,761.521   6.03   46,802
                   Band 20   590,055.749   6.05   3,569,837
                   Band 21   20,629.046   6.04   124,599
                   Band 26   2,749.207   6.04   16,605
                   Band 29   10,450.973   6.01   62,810
                   Band 30   815.512   6.00   4,893
                   Band 35   39,610.525   6.12   242,416
                   Band 36   8,488.193   6.10   51,778
                   Band 38   46,057.911   6.10   280,953
                   Band 39   15,434.233   6.09   93,994
                   Band 40   11,508.354   6.08   69,971
                   Band 41   4,040.730   6.00   24,244
                   Band 46   1,557,930.383   6.03   9,394,320
                   Band 47   403,111.885   6.02   2,426,734
                   Band 54   4,395.546   6.04   26,549
                   Band 56   369,199.026   6.09   2,248,422
                   Band 57   17,821.422   6.06   107,998
                   Band 60   1,487.463   6.07   9,029
    23,942,380.801       $ 145,068,217
                   ING VP International Value Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 35   132,342.998   $ 11.26   $ 1,490,182
                   Band 36   22,384.040   11.10   248,463
                   Band 37   12,551.484   10.99   137,941
                   Band 38   407,629.885   12.29   5,009,771
                   Band 39   146,518.589   12.16   1,781,666
                   Band 40   18,963.511   12.06   228,700
    740,390.507       $ 8,896,723

266

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING VP MidCap Opportunities Portfolio - Class S            
                   Currently payable annuity contracts:   921.707   $ 6.79   $ 6,258
                   Contracts in accumulation period:            
                   Band 1   33,839.254   6.50   219,955
                   Band 2   477,170.801   6.79   3,239,990
                   Band 3   2,777.508   6.61   18,359
                   Band 4   183,120.724   6.66   1,219,584
                   Band 5   186,891.525   6.63   1,239,091
                   Band 6   4,769,927.681   6.58   31,386,124
                   Band 7   4,001,366.104   6.56   26,248,962
                   Band 8   3,224,477.759   6.51   20,991,350
                   Band 9   809,490.377   6.48   5,245,498
                   Band 10   2,677,394.591   6.45   17,269,195
                   Band 11   4,131,153.362   6.43   26,563,316
                   Band 12   1,136,532.030   6.40   7,273,805
                   Band 13   2,730,319.829   6.38   17,419,441
                   Band 14   4,356,549.585   6.33   27,576,959
                   Band 15   576,020.918   6.31   3,634,692
                   Band 16   89,280.735   6.26   558,897
                   Band 17   1,518,336.803   6.23   9,459,238
                   Band 18   38,987.517   6.21   242,112
                   Band 19   187,910.461   6.16   1,157,528
                   Band 20   1,851,370.754   6.35   11,756,204
                   Band 21   180,807.586   6.28   1,135,472
                   Band 22   1,197.099   6.48   7,757
                   Band 23   13,983.677   6.48   90,614
                   Band 24   129.946   7.06   917
                   Band 25   85,632.741   6.84   585,728
                   Band 26   13,766.691   6.50   89,483
                   Band 27   2,864.301   6.48   18,561
                   Band 28   3,182.644   6.48   20,624
                   Band 29   26,884.082   6.47   173,940
                   Band 30   3,759.183   6.46   24,284
                   Band 31   3,230.310   6.45   20,835
                   Band 35   56,383.113   9.73   548,608
                   Band 36   11,130.671   9.60   106,854
                   Band 37   1,409.001   9.50   13,386
                   Band 38   258,709.308   11.41   2,951,873
                   Band 39   32,638.112   11.29   368,484
                   Band 40   7,397.421   11.20   82,851
                   Band 41   1,082.087   6.46   6,990
                   Band 42   333.364   6.45   2,150
                   Band 43   2,296.236   6.44   14,788
                   Band 44   323.362   6.43   2,079
                   Band 46   452,475.239   8.61   3,895,812
                   Band 47   33,559.138   8.55   286,931
                   Band 56   29,829.230   6.49   193,592
                   Band 57   9,781.528   6.46   63,189
    34,216,626.095       $ 223,432,360

267

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract        Units   Unit Value   Extended Value
                   ING VP SmallCap Opportunities Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 2   2,785.009   $ 5.85   $ 16,292
                   Band 4   20,110.209   5.74   115,433
                   Band 5   105,140.117   5.72   601,401
                   Band 6   1,257,982.266   5.68   7,145,339
                   Band 7   1,241,548.069   5.65   7,014,747
                   Band 8   243,159.340   5.61   1,364,124
                   Band 9   81,596.084   5.59   456,122
                   Band 10   749,439.625   5.57   4,174,379
                   Band 11   420,053.318   5.54   2,327,095
                   Band 12   376,713.170   5.52   2,079,457
                   Band 13   732,042.438   5.50   4,026,233
                   Band 14   1,431,239.828   5.46   7,814,569
                   Band 15   248,211.752   5.44   1,350,272
                   Band 16   38,815.457   5.40   209,603
                   Band 17   675,838.879   5.37   3,629,255
                   Band 18   24,092.452   5.35   128,895
                   Band 19   96,247.458   5.31   511,074
                   Band 20   886,018.615   5.48   4,855,382
                   Band 21   108,307.845   5.42   587,029
                   Band 25   52,429.281   5.90   309,333
                   Band 26   3,749.909   9.43   35,362
                   Band 27   428.970   9.32   3,998
                   Band 28   685.100   9.27   6,351
                   Band 29   4,363.335   9.25   40,361
                   Band 30   8,447.404   9.15   77,294
                   Band 31   882.957   9.10   8,035
                   Band 35   32,671.420   5.97   195,048
                   Band 36   5,247.090   5.88   30,853
                   Band 38   68,491.590   11.04   756,147
                   Band 39   13,608.310   10.92   148,603
                   Band 40   4,831.183   10.84   52,370
                   Band 41   3,287.499   9.15   30,081
                   Band 42   83.033   9.08   754
                   Band 43   8,681.601   9.03   78,395
                   Band 44   362.624   8.91   3,231
                   Band 46   155,144.891   8.22   1,275,291
                   Band 47   17,959.640   8.17   146,730
    9,120,697.768       $ 51,604,938
 
 
 
 
                                                                                                                               268            

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
                                                           Division/Contract            Units   Unit Value   Extended Value
                   ING VP Balanced Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 4   2,972.770   $ 7.73   $ 22,980
                   Band 7   11,793.447   7.68   90,574
                   Band 9   59,994.586   7.65   458,959
                   Band 10   16,820.829   7.64   128,511
                   Band 13   10,036.377   7.61   76,377
                   Band 15   14,277.071   7.58   108,220
                   Band 20   775.507   7.60   5,894
                   Band 21   27,215.923   7.57   206,025
                   Band 26   44,099.629   7.79   343,536
                   Band 27   14,734.398   7.73   113,897
                   Band 28   3,819.731   7.69   29,374
                   Band 29   60,388.526   7.68   463,784
                   Band 30   19,505.172   7.62   148,629
                   Band 31   24,620.709   7.59   186,871
                   Band 32   2,473.173   7.53   18,623
                   Band 34   427.737   7.46   3,191
                   Band 35   54,571.746   10.25   559,360
                   Band 36   7,381.210   10.14   74,845
                   Band 37   13,190.171   10.05   132,561
                   Band 38   230,198.849   9.87   2,272,063
                   Band 39   55,562.171   9.76   542,287
                   Band 40   19,557.781   9.68   189,319
                   Band 41   16,564.601   7.62   126,222
                   Band 42   3,315.682   7.58   25,133
                   Band 43   9,617.415   7.55   72,611
    723,915.211       $ 6,399,846
                   ING VP Intermediate Bond Portfolio - Class S            
                   Contracts in accumulation period:            
                   Band 1   7,552.108   $ 11.65   $ 87,982
                   Band 2   58,000.508   11.49   666,426
                   Band 3   332.857   11.23   3,738
                   Band 4   410,808.392   11.30   4,642,135
                   Band 5   105,256.436   11.26   1,185,187
                   Band 6   14,692,504.660   11.19   164,409,127
                   Band 7   3,181,205.250   11.15   35,470,439
                   Band 8   7,875,077.447   11.08   87,255,858
                   Band 9   1,103,078.673   11.04   12,177,989
                   Band 10   21,077,749.450   11.00   231,855,244
                   Band 11   2,254,148.761   10.96   24,705,470
                   Band 12   570,876.390   10.93   6,239,679
                   Band 13   6,841,165.399   10.89   74,500,291
                   Band 14   8,478,762.976   10.82   91,740,215
                   Band 15   5,718,407.053   10.78   61,644,428
                   Band 16   949,444.717   10.71   10,168,553
                   Band 17   5,918,589.514   10.67   63,151,350
                   Band 18   110,251.397   10.63   1,171,972
                   Band 19   115,151.209   10.56   1,215,997

269

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   ING VP Intermediate Bond Portfolio - Class S            
                       (continued)            
                   Band 20   2,271,230.735   $ 10.85   $ 24,642,853
                   Band 21   401,439.683   10.74   4,311,462
                   Band 25   32,544.702   11.57   376,542
                   Band 26   1,471,381.092   9.87   14,522,531
                   Band 27   525,103.218   9.76   5,125,007
                   Band 28   173,034.984   9.70   1,678,439
                   Band 29   2,359,809.385   9.68   22,842,955
                   Band 30   1,236,734.463   9.57   11,835,549
                   Band 31   780,146.582   9.52   7,426,995
                   Band 32   43,426.322   9.42   409,076
                   Band 33   11,136.462   9.35   104,126
                   Band 34   49,209.127   9.29   457,153
                   Band 35   451,148.619   11.69   5,273,927
                   Band 36   83,654.260   11.53   964,534
                   Band 37   27,343.538   11.42   312,263
                   Band 38   4,087,995.855   10.62   43,414,516
                   Band 39   867,103.989   10.51   9,113,263
                   Band 40   364,084.306   10.42   3,793,758
                   Band 41   40,982.714   9.58   392,614
                   Band 42   46,592.660   9.51   443,096
                   Band 43   235,008.018   9.45   2,220,826
                   Band 44   5,595.630   9.32   52,151
                   Band 45   16,866.163   9.27   156,349
                   Band 46   7,660,459.852   9.43   72,238,136
                   Band 47   966,669.709   9.37   9,057,695
                   Band 49   134,135.013   9.14   1,225,994
                   Band 50   27,901.943   9.68   270,091
                   Band 51   22,926.699   9.61   220,326
                   Band 52   7,985.057   9.77   78,014
                   Band 53   3,623.682   9.71   35,186
                   Band 54   11,623.158   9.63   111,931
                   Band 55   54,804.825   9.74   533,799
                   Band 56   721,576.799   8.92   6,436,465
                   Band 57   6,015.901   8.88   53,421
                   Band 58   953.044   8.85   8,434
                   Band 59   374.227   8.83   3,304
                   Band 60   2,927.812   8.88   25,999
                   Band 64   366.814   9.08   3,331
    104,672,280.239       $ 1,122,464,191
                   Legg Mason Partners Variable International All Cap            
                       Opportunity Portfolio            
                   Contracts in accumulation period:            
                   Band 22   155.268   $ 10.52   $ 1,633
                   Band 23   3,625.515   10.31   37,379
    3,780.783       $ 39,012

270

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   Legg Mason Partners Variable Investors Portfolio            
                   Contracts in accumulation period:            
                   Band 22   555.225   $ 6.19   $ 3,437
                   Band 23   11,345.235   6.17   70,000
    11,900.460       $ 73,437
                   Legg Mason Partners Variable High Income Portfolio            
                   Contracts in accumulation period:            
                   Band 22   141.069   $ 11.92   $ 1,682
                   Band 23   4,205.864   11.67   49,082
    4,346.933       $ 50,764
                   Legg Mason Partners Variable Money Market            
                       Portfolio            
                   Contracts in accumulation period:            
                   Band 23   1,680.171   $ 13.54   $ 22,750
 
                   Oppenheimer Main Street Small Cap Fund®/VA -            
                       Service Class            
                   Contracts in accumulation period:            
                   Band 35   26,846.182   $ 11.63   $ 312,221
                   Band 36   3,029.267   11.55   34,988
                   Band 37   867.141   11.48   9,955
                   Band 38   34,470.601   11.52   397,101
                   Band 39   3,297.267   11.44   37,721
                   Band 40   2,594.999   11.38   29,531
    71,105.457       $ 821,517
                   PIMCO Real Return Portfolio - Administrative Class            
                   Contracts in accumulation period:            
                   Band 35   179,788.321   $ 10.18   $ 1,830,245
                   Band 36   50,390.521   10.10   508,944
                   Band 37   2,540.246   10.05   25,529
                   Band 38   403,614.193   10.08   4,068,431
                   Band 39   69,453.660   10.01   695,231
                   Band 40   38,837.459   9.95   386,433
    744,624.400       $ 7,514,813
                   Pioneer Equity Income VCT Portfolio - Class II            
                   Contracts in accumulation period:            
                   Band 35   216,782.324   $ 10.12   $ 2,193,837
                   Band 36   30,143.507   9.98   300,832
                   Band 37   24,244.514   9.87   239,293
                   Band 38   713,196.574   11.28   8,044,857
                   Band 39   183,805.263   11.16   2,051,267
                   Band 40   44,585.940   11.07   493,566
    1,212,758.122       $ 13,323,652

271

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   Pioneer Small Cap Value VCT Portfolio - Class II            
                   Contracts in accumulation period:            
                   Band 4   16,392.576   $ 5.99   $ 98,192
                   Band 7   3,282.921                            5.96   19,566
                   Band 9   47,104.190                            5.94   279,799
                   Band 10   15,624.831                            5.93   92,655
                   Band 13   10,802.949                            5.91   63,845
                   Band 15   20,256.344                            5.88   119,107
                   Band 20   2,260.086                            5.90   13,335
                   Band 21   14,233.546                            5.88   83,693
                   Band 26   81,892.066                            6.04   494,628
                   Band 27   49,497.344                            5.99   296,489
                   Band 28   4,989.283                            5.97   29,786
                   Band 29   71,279.985                            5.96   424,829
                   Band 30   35,266.174                            5.92   208,776
                   Band 31   19,339.786                            5.89   113,911
                   Band 32   282.125                            5.85   1,650
                   Band 33   948.033                            5.82   5,518
                   Band 34   556.074                            5.79   3,220
                   Band 41   1,163.005                            5.92   6,885
                   Band 42   1,647.360                            5.89   9,703
                   Band 43   3,766.145                            5.86   22,070
                   Band 45   219.991                            5.78   1,272
    400,804.814       $ 2,388,929

272

ING USA ANNUITY AND 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 4   106.501   $ 6.39   $ 681
                   Band 5   6,123.590                            6.36   38,946
                   Band 6   178,757.333                            6.31   1,127,959
                   Band 7   417,520.496                            6.29   2,626,204
                   Band 8   55,097.338                            6.24   343,807
                   Band 9   9,218.849                            6.21   57,249
                   Band 10   153,083.719                            6.19   947,588
                   Band 11   105,710.637                            6.17   652,235
                   Band 12   77,466.412                            6.14   475,644
                   Band 13   169,003.351                            6.12   1,034,301
                   Band 14   571,347.418                            6.07   3,468,079
                   Band 15   30,664.651                            6.05   185,521
                   Band 16   1,006.408                            6.00   6,038
                   Band 17   130,327.855                            5.98   779,361
                   Band 18   17,847.274                            5.95   106,191
                   Band 19   22,956.262                            5.91   135,672
                   Band 20   272,166.038                            6.09   1,657,491
                   Band 21   10,875.352                            6.02   65,470
                   Band 26   2,122.366                            6.53   13,859
                   Band 27   920.625                            6.38   5,874
                   Band 28   116.724                            6.31   737
                   Band 29   19,260.393                            6.29   121,148
                   Band 30   2,210.818                            6.14   13,574
                   Band 31   564.468                            6.07   3,426
                   Band 38   8.513                            7.15   61
                   Band 41   2,251.394                            8.22   18,506
                   Band 45   86.253                            7.19   620
                   Band 46   23,667.121                            6.96   164,723
    2,280,488.159       $ 14,050,965

273

ING USA ANNUITY AND 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 4   7,465.072   $ 7.27   $ 54,271
                   Band 5   6,271.320   7.24   45,404
                   Band 6   152,071.253   7.19   1,093,392
                   Band 7   176,707.297   7.16   1,265,224
                   Band 8   40,964.921   7.10   290,851
                   Band 9   7,317.169   7.08   51,806
                   Band 10   111,818.494   7.05   788,320
                   Band 11   103,741.866   7.02   728,268
                   Band 12   51,596.681   6.99   360,661
                   Band 13   74,237.350   6.97   517,434
                   Band 14   262,465.876   6.91   1,813,639
                   Band 15   76,510.369   6.88   526,391
                   Band 16   12,238.284   6.83   83,587
                   Band 17   125,338.899   6.80   852,305
                   Band 18   1,003.696   6.78   6,805
                   Band 19   15,188.012   6.72   102,063
                   Band 20   98,592.065   6.94   684,229
                   Band 21   15,064.226   6.86   103,341
                   Band 25   363.886   7.47   2,718
                   Band 26   8,225.493   7.44   61,198
                   Band 27   161.165   7.27   1,172
                   Band 28   306.955   7.19   2,207
                   Band 29   9,169.200   7.16   65,651
                   Band 30   1,645.150   6.99   11,500
                   Band 31   6,106.951   6.91   42,199
                   Band 41   404.567   10.32   4,175
                   Band 42   2,933.289   10.21   29,949
                   Band 43   1,784.978   10.12   18,064
                   Band 46   25,278.168   7.50   189,586
                   Band 47   5,574.569   7.45   41,531
    1,400,547.221       $ 9,837,941

274

ING USA ANNUITY AND 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   589.251   $ 4.74   $ 2,793
                   Band 4   7,278.613                            4.68   34,064
                   Band 5   1,824.334                            4.67   8,520
                   Band 6   402,662.228                            4.64   1,868,353
                   Band 7   238,350.486                            4.63   1,103,563
                   Band 8   230,570.872                            4.60   1,060,626
                   Band 9   49,778.828                            4.59   228,485
                   Band 10   369,402.666                            4.58   1,691,864
                   Band 11   144,442.028                            4.57   660,100
                   Band 12   26,318.714                            4.55   119,750
                   Band 13   175,732.907                            4.54   797,827
                   Band 14   312,095.022                            4.52   1,410,669
                   Band 15   112,208.133                            4.50   504,937
                   Band 16   13,970.304                            4.48   62,587
                   Band 17   173,124.765                            4.47   773,868
                   Band 18   2,581.742                            4.45   11,489
                   Band 19   18,341.910                            4.43   81,255
                   Band 20   248,146.850                            4.53   1,124,105
                   Band 21   32,374.160                            4.49   145,360
                   Band 26   38,391.684                            4.75   182,360
                   Band 27   7,020.013                            4.68   32,854
                   Band 28   6,804.938                            4.64   31,575
                   Band 29   85,737.197                            4.63   396,963
                   Band 30   22,248.178                            4.55   101,229
                   Band 31   25,040.569                            4.52   113,183
                   Band 41   10,634.481                            4.55   48,387
                   Band 42   13,366.530                            4.51   60,283
                   Band 43   4,655.826                            4.47   20,812
                   Band 44   783.933                            4.66   3,653
                   Band 45   4,048.753                            4.65   18,827
                   Band 46   87,871.633                            5.47   480,658
                   Band 47   3,956.886                            5.43   21,486
    2,870,354.434       $ 13,202,485
                   Wells Fargo Advantage Asset Allocation Fund            
                   Contracts in accumulation period:            
                   Band 6   25,207.679   $ 9.65   $ 243,254
                   Band 10   112,730.976                            9.52   1,073,199
                   Band 14   49,587.503                            9.40   466,123
                   Band 17   21,233.678                            9.30   197,473
                   Band 46   1,118.378                            8.28   9,260
    209,878.214       $ 1,989,309

275

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
                   Wells Fargo Advantage C&B Large Cap Value Fund            
                   Contracts in accumulation period:            
                   Band 6   1,929.472   $ 9.01   $ 17,385
                   Band 10   10,801.462   8.89   96,025
                   Band 14   6,092.924   8.78   53,496
                   Band 15   2,288.816   8.75   20,027
                   Band 17   2,348.342   8.68   20,384
                   Band 46   3,362.011   7.50   25,215
    26,823.027       $ 232,532
                   Wells Fargo Advantage Equity Income Fund            
                   Contracts in accumulation period:            
                   Band 10   10,643.002   $ 8.97   $ 95,468
                   Band 14   8,281.079   8.85   73,288
                   Band 17   33,166.679   8.76   290,540
                   Band 20   5,740.396   8.87   50,917
                   Band 46   2,495.696   7.56   18,867
    60,326.852       $ 529,080
                   Wells Fargo Advantage Large Company Growth Fund            
                   Contracts in accumulation period:            
                   Band 6   1,364.185   $ 7.02   $ 9,577
                   Band 10   61,500.022   6.93   426,195
                   Band 14   29,984.577   6.84   205,095
                   Band 15   9,066.897   6.82   61,836
                   Band 17   64,807.126   6.76   438,096
                   Band 20   8,505.615   6.85   58,263
                   Band 21   419.797   6.80   2,855
                   Band 46   16,172.005   6.53   105,603
    191,820.224       $ 1,307,520
                   Wells Fargo Advantage Money Market Fund            
                   Contracts in accumulation period:            
                   Band 10   2,280.973   $ 10.60   $ 24,178
                   Band 14   1,757.038   10.46   18,379
    4,038.011       $ 42,557
                   Wells Fargo Advantage Small Cap Growth Fund            
                   Contracts in accumulation period:            
                   Band 6   2,220.962   $ 9.82   $ 21,810
                   Band 10   15,389.617   9.69   149,125
                   Band 14   8,501.248   9.56   81,272
                   Band 17   15,439.188   9.46   146,055
                   Band 20   1,804.673   9.59   17,307
                   Band 46   437.961   8.28   3,626
    43,793.649       $ 419,195

276

ING USA ANNUITY AND LIFE INSURANCE COMPANY        
SEPARATE ACCOUNT B            
Notes to Financial Statements            
 
 
 
Division/Contract   Units   Unit Value   Extended Value
Wells Fargo Advantage Total Return Bond Fund            
Contracts in accumulation period:            
Band 6   18,859.093   $ 11.34   $ 213,862
Band 10   30,595.458   11.20   342,669
Band 14   22,762.067   11.05   251,521
Band 15   1,943.477   11.02   21,417
Band 17   5,835.857   10.93   63,786
Band 46   12,866.809   10.52   135,359
    92,862.761       $ 1,028,614

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, ING Golden Select DVA Plus 125, ING SmartDesign
    Signature Variable Annuity 125
Band 5   ING GoldenSelect DVA Plus - Standard (post January 2000 & post 2000), ING Golden Select
    DVA Plus 130
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, ING Golden Select DVA Plus 140, ING
    GoldenSelect Access 140, ING GoldenSelect ESII 140, ING GoldenSelect Generations
    Variable Annuity 140, ING GoldenSelect Opportunities Variable 140, ING GoldenSelect
    Premium Plus 140, Wells Fargo ING Opportunities Variable Annuity 140
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, Fleet Premium Plus 145, ING Golden Select DVA Plus 145, ING GoldenSelect
    Access 145, ING GoldenSelect ESII 145, ING GoldenSelect Generations Variable Annuity
    145, ING GoldenSelect Opportunities Variable 145, ING GoldenSelect Premium Plus 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, ING GoldenSelect Access
    155, ING GoldenSelect ESII 155, ING GoldenSelect Generations Variable Annuity 155, ING
    GoldenSelect Opportunities Variable 155, ING GoldenSelect Premium Plus 155
 
 
 
    277

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                           

Bands   Products
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, ING Golden Select DVA Plus 160, ING GoldenSelect Access
    160, ING GoldenSelect Premium Plus 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, ING Golden Select DVA Plus
    165, ING GoldenSelect ESII 165, ING GoldenSelect Generations Variable Annuity 165, ING
    GoldenSelect Landmark Variable Annuity 165, ING GoldenSelect Legends - Standard, ING
    GoldenSelect Opportunities Variable 165, ING Simplicity Variable Annuity125, Wells Fargo
    ING Opportunities 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, ING GoldenSelect
    Access 170, ING GoldenSelect ESII 170, ING GoldenSelect Generations Variable Annuity
    170, ING GoldenSelect Opportunities Variable 170, ING GoldenSelect Premium Plus 170,
    Wells Fargo ING Opportunities Variable Annuity 170
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, ING Golden Select DVA Plus 175, ING GoldenSelect Access 175, ING
    GoldenSelect DVA Plus, ING GoldenSelect ESII 175, ING GoldenSelect Generations Variable
    Annuity 175, ING GoldenSelect Opportunities Variable 175, ING GoldenSelect Premium Plus
    175
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, Fleet Premium Plus 180, ING GoldenSelect Access 180, ING
GoldenSelect ESII 180, ING GoldenSelect Generations Variable Annuity 180, ING
    GoldenSelect Landmark Variable Annuity 180, ING GoldenSelect Opportunities Variable 180,
    ING GoldenSelect Premium Plus 180, ING SmartDesign Advantage Variable Annuity 180,
    Wells Fargo ING Landmark 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, ING GoldenSelect Access 190, ING
    GoldenSelect Landmark Variable Annuity 190, ING GoldenSelect Legends - Quarterly, ING
GoldenSelect Premium Plus 190, Wells Fargo ING Landmark Variable Annuity 190
 
 
    278

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                           

Bands   Products
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,
    ING GoldenSelect Access 195, ING GoldenSelect Landmark Variable Annuity 195, ING
    SmartDesign Signature Variable Annuity 195, Wells Fargo ING Landmark 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, ING GoldenSelect
    Access 205, ING GoldenSelect Legends 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, ING GoldenSelect Access 210, ING GoldenSelect Landmark
    Variable Annuity 210, Wells Fargo ING Landmark Variable Annuity 210
Band 18   ING GoldenSelect Access - 7% Solution (post April 2001), ING GoldenSelect Access 215
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, ING GoldenSelect Access 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,
    ING GoldenSelect ESII 185, ING GoldenSelect Generations Variable Annuity 185, ING
    GoldenSelect Opportunities Variable 185, Wells Fargo ING Opportunities Variable Annuity
    185
Band 21   ING GoldenSelect Landmark - 7% Solution, ING SmartDesign Advantage Variable Annuity
    200, Wells Fargo ING Landmark - 7% Solution, ING GoldenSelect Landmark Variable
    Annuity 200, Wells Fargo ING Landmark Variable Annuity 200
Band 22   Granite PrimElite - Standard, ING GoldenSelect Granite PrimElite 125
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, ING SmartDesign Variable Annuity 095
Band 27   ING SmartDesign Variable Annuity Option II, ING SmartDesign Variable Annuity 125
Band 28   ING SmartDesign Variable Annuity, ING SmartDesign Variable Annuity Option III, ING
    SmartDesign Variable Annuity 140
Band 29   ING SmartDesign Variable Annuity Bonus Option I, ING SmartDesign Variable Annuity 145
Band 30   ING SmartDesign Variable Annuity Bonus Option II, ING SmartDesign Variable Annuity 175
Band 31   ING SmartDesign Variable Annuity Bonus Option III, ING SmartDesign Variable Annuity 190
Band 32   ING SmartDesign Advantage Bonus Option I, ING SmartDesign Advantage Variable Annuity
    220
Band 33   ING SmartDesign Advantage Bonus Option II, ING SmartDesign Advantage Variable Annuity
    240
 
 
 
    279

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements                                                                                         

Bands   Products
Band 34   ING SmartDesign Advantage Bonus Option III, ING SmartDesign Advantage Variable
    Annuity 255
Band 35   ING Rollover Choice Option I (prior to August 7, 2003), ING Focus VA Option I, ING Focus
    Variable Annuity 075, ING Rollover Choice 075
Band 36   ING Rollover Choice Option II (prior to August 7, 2003), ING Focus VA Option I, ING Focus
    VA Option II, ING Focus Variable Annuity 095, ING Rollover Choice 095
Band 37   ING Rollover Choice Option III (prior to August 7, 2003), ING Rollover Choice 110
Band 38   ING Rollover Choice Option I, ING Rollover Choice 100
Band 39   ING Rollover Choice Option II, ING Rollover Choice 120
Band 40   ING Rollover Choice Option III, ING Rollover Choice 135
Band 41   ING SmartDesign Signature Option I, ING SmartDesign Signature Variable Annuity 175
Band 42   ING SmartDesign Signature Option II, ING SmartDesign Signature Variable Annuity 210
Band 43   ING SmartDesign Signature Option III
Band 44   ING SmartDesign Advantage Variable Annuity 245
Band 45   ING SmartDesign Advantage Variable Annuity 260
Band 46   ING GoldenSelect Landmark Variable Annuity 220, ING GoldenSelect Legends 220, Wells
    Fargo ING Landmark Variable Annuity 220
Band 47   ING GoldenSelect Access 235
Band 49   ING Simplicity Variable Annuity 200
Band 50   ING Architect Variable Annuity 180
Band 51   ING Architect Variable Annuity 210
Band 52   ING Architect Variable Annuity 145
Band 53   ING Architect Variable Annuity 170
Band 54   ING Architect Variable Annuity 200
Band 55   ING Architect Variable Annuity 155
Band 56   ING Architect Variable Annuity 115
Band 57   ING Architect Variable Annuity 170
Band 58   ING Architect Variable Annuity 195
Band 59   ING Architect Variable Annuity 225
Band 60   ING Architect Variable Annuity 160
Band 61   ING Architect Variable Annuity 185
Band 62   ING Architect Variable Annuity 215
Band 64   ING Architect Variable Annuity 200
 
 
 
 
    280

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

10.   Financial Highlights
 
    A summary of unit values, units outstanding and net assets for variable annuity Contracts, expense ratios, excluding expenses of
    underlying Funds, investment income ratios, and total return for the years ended December 31, 2008, 2007, 2006, 2005 and 2004,
    follows:

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
AIM V.I. Leisure Fund - Series I Shares                                                
2008   2,328   $6.53   to   $8.11   $17,862   1.00%   0.95%   to   2.60%   -44.54%   to   -43.60%
2007   3,083   $11.74   to   $14.38   $42,305   1.58%   0.95%   to   2.60%   -3.39%   to   -1.78%
2006   3,723   $12.12   to   $14.64   $52,417   1.08%   0.95%   to   2.60%   21.32%   to   23.44%
2005   4,687   $9.96   to   $11.86   $53,911   1.11%   0.95%   to   2.60%   -3.68%   to   -2.15%
2004   4,713   $10.86   to   $12.18   $55,920   0.37%   0.95%   to   2.60%   10.48%   to   12.33%
BlackRock Global Allocation V.I. Fund - Class III                                                
2008   49,903   $7.92   to   $8.02   $397,800   (e)   0.95%   to   2.60%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
Columbia Asset Allocation Fund, Variable Series -                                                
Class A                                                
2008   23   $11.19   to   $11.45   $262   3.66%   1.40%   to   1.80%   -29.62%   to   -29.36%
2007   41   $15.82   to   $16.21   $668   2.48%   1.40%   to   1.90%   7.11%   to   7.64%
2006   36   $14.77   to   $15.06   $540   2.44%   1.40%   to   1.90%   9.65%   to   10.25%
2005   38   $13.47   to   $13.66   $523   2.49%   1.40%   to   1.90%   4.65%   to   5.08%
2004   46   $12.91   to   $13.00   $601   2.33%   1.40%   to   1.80%   8.03%   to   8.42%
Columbia Federal Securities Fund, Variable Series -                                                
Class A                                                
2008   2   $11.69   to   $11.93   $27   9.35%   1.45%   to   1.80%   6.18%   to   6.52%
2007   7   $11.01   to   $11.23   $80   6.21%   1.40%   to   1.80%   4.26%   to   4.76%
2006   8   $10.56   to   $10.72   $81   5.54%   1.40%   to   1.80%   1.83%   to   2.29%
2005   8   $10.37   to   $10.48   $85   5.71%   1.40%   to   1.80%   0.78%   to   1.06%
2004   9   $10.29   to   $10.37   $90   5.65%   1.40%   to   1.80%   2.38%   to   2.78%
 
 
 
 
            281                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
Columbia Large Cap Growth Fund, Variable Series -                                                
Class A                                                
2008   34   $7.52   to   $7.67   $258   0.27%   1.40%   to   1.90%   -41.57%   to   -41.26%
2007   37   $12.87   to   $13.06   $484   0.39%   1.40%   to   1.90%   13.49%   to   14.16%
2006   48   $11.34   to   $11.44   $547   0.35%   1.40%   to   1.90%   8.21%   to   8.65%
2005   49   $10.48   to   $10.53   $515   (b)   1.40%   to   1.90%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
Columbia Small Cap Value Fund, Variable Series -                                                
Class B                                                
2008   10,670   $8.24   to   $14.06   $141,739   0.46%   0.95%   to   2.45%   -29.89%   to   -28.85%
2007   13,631   $11.74   to   $19.82   $256,889   0.27%   0.95%   to   2.60%   -5.11%   to   -3.56%
2006   16,991   $12.34   to   $20.60   $335,177   0.34%   0.95%   to   2.60%   16.24%   to   18.25%
2005   20,661   $10.59   to   $17.48   $348,817   -   0.95%   to   2.60%   3.09%   to   4.17%
2004   14,445   $16.50   to   $16.78   $240,424   0.50%   1.25%   to   2.25%   19.83%   to   21.00%
Columbia Small Company Growth Fund, Variable                                                
Series - Class A                                                
2008   4   $11.79   to   $12.07   $51   -   1.40%   to   1.80%   -41.89%   to   -41.63%
2007   4   $20.29   to   $20.68   $91   -   1.40%   to   1.80%   11.42%   to   11.84%
2006   4   $18.21   to   $18.49   $82   -   1.40%   to   1.80%   10.36%   to   10.85%
2005   5   $16.50   to   $16.68   $78   -   1.40%   to   1.80%   0.86%   to   1.28%
2004   5   $16.36   to   $16.47   $81   -   1.40%   to   1.80%   9.50%   to   9.95%
Fidelity® VIP Equity-Income Portfolio - Service Class 2                                                
2008   22,259   $6.01   to   $9.10   $167,056   2.07%   0.75%   to   2.60%   -44.30%   to   -43.24%
2007   28,026   $11.47   to   $16.08   $373,387   1.66%   0.75%   to   2.60%   -1.39%   to   0.50%
2006   28,119   $11.61   to   $16.03   $376,023   2.91%   0.75%   to   2.60%   16.83%   to   19.05%
2005   24,383   $10.48   to   $13.50   $276,545   1.36%   0.75%   to   2.60%   2.87%   to   4.79%
2004   22,427   $10.58   to   $12.92   $245,414   1.17%   0.75%   to   2.60%   8.40%   to   10.38%
Fidelity® VIP Contrafund® Portfolio - Service Class 2                                                
2008   72,902   $5.89   to   $11.12   $656,498   0.94%   0.75%   to   2.60%   -44.18%   to   -43.14%
2007   57,227   $12.58   to   $19.59   $922,587   0.87%   0.75%   to   2.60%   14.18%   to   16.41%
2006   39,889   $10.97   to   $16.87   $561,251   1.09%   0.75%   to   2.60%   8.54%   to   10.61%
2005   20,525   $11.89   to   $15.29   $267,908   0.04%   0.75%   to   2.60%   13.64%   to   15.83%
2004   3,777   $10.75   to   $13.24   $46,859   0.15%   0.75%   to   2.60%   12.23%   to   14.31%
 
 
 
            282                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
Franklin Small Cap Value Securities Fund - Class 2                                                
2008   611   $11.40   to   $11.94   $7,246   1.14%   0.75%   to   1.35%   -33.92%   to   -33.50%
2007   479   $17.21   to   $18.00   $8,548   0.71%   0.75%   to   1.35%   -3.75%   to   -3.14%
2006   304   $17.83   to   $18.63   $5,563   0.60%   0.75%   to   1.35%   15.42%   to   16.12%
2005   152   $15.41   to   $16.08   $2,400   0.59%   0.75%   to   1.35%   7.34%   to   7.94%
2004   69   $14.39   to   $14.94   $1,018   0.16%   0.75%   to   1.35%   22.57%   to   22.82%
ING AllianceBernstein Mid Cap Growth Portfolio -                                                
Service Class                                                
2008   17,268   $5.84   to   $12.76   $191,587   -   0.90%   to   2.60%   -47.80%   to   -46.90%
2007   20,249   $11.37   to   $24.03   $431,682   -   0.90%   to   2.60%   7.97%   to   9.88%
2006   21,366   $10.48   to   $22.11   $423,458   -   0.80%   to   2.60%   -0.88%   to   0.96%
2005   23,276   $10.58   to   $21.90   $465,921   -   0.80%   to   2.60%   4.46%   to   6.00%
2004   26,948   $18.17   to   $20.66   $517,639   -   0.80%   to   2.25%   16.85%   to   18.53%
ING AllianceBernstein Mid Cap Growth Portfolio -                                                
Service 2 Class                                                
2008   925   $5.95   to   $12.28   $8,864   -   1.40%   to   2.20%   -47.72%   to   -47.25%
2007   1,039   $11.38   to   $23.28   $18,868   -   1.40%   to   2.20%   8.28%   to   9.14%
2006   1,116   $10.51   to   $21.33   $18,807   -   1.40%   to   2.20%   -0.66%   to   0.19%
2005   986   $10.58   to   $21.29   $17,341   -   1.40%   to   2.20%   4.45%   to   5.14%
2004   680   $10.78   to   $20.25   $12,840   -   1.40%   to   2.10%   17.19%   to   17.66%
ING American Funds Asset Allocation Portfolio                                                
2008   20,680   $7.13   to   $7.21   $148,369   (e)   0.95%   to   2.60%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING American Funds Bond Portfolio                                                
2008   28,568   $8.77   to   $9.04   $252,168   (e)   0.75%   to   2.60%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
 
 
 
            283                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING American Funds Growth Portfolio                                                
2008   181,107   $5.72   to   $9.09   $1,544,265   0.86%   0.75%   to   2.60%   -45.73%   to   -44.72%
2007   156,541   $12.02   to   $16.46   $2,455,766   0.26%   0.75%   to   2.60%   8.83%   to   10.93%
2006   138,030   $10.99   to   $14.87   $1,979,019   0.18%   0.75%   to   2.60%   6.76%   to   8.77%
2005   113,508   $10.57   to   $13.69   $1,516,773   -   0.75%   to   2.60%   12.69%   to   14.48%
2004   72,179   $10.64   to   $11.96   $854,063   0.01%   0.95%   to   2.60%   9.04%   to   10.84%
ING American Funds Growth-Income Portfolio                                                
2008   127,441   $6.36   to   $8.98   $1,074,885   1.56%   0.75%   to   2.60%   -39.84%   to   -38.66%
2007   114,229   $11.40   to   $14.67   $1,595,008   1.00%   0.75%   to   2.60%   1.81%   to   3.73%
2006   100,590   $11.15   to   $14.17   $1,374,118   0.69%   0.75%   to   2.60%   11.59%   to   13.72%
2005   84,695   $10.10   to   $12.48   $1,031,247   0.35%   0.75%   to   2.60%   2.55%   to   4.26%
2004   55,830   $10.60   to   $11.97   $661,150   0.16%   0.95%   to   2.60%   6.94%   to   8.72%
ING American Funds International Portfolio                                                
2008   80,618   $5.75   to   $12.94   $953,776   1.98%   0.75%   to   2.60%   -43.93%   to   -42.92%
2007   72,838   $13.49   to   $22.71   $1,548,000   0.88%   0.75%   to   2.60%   16.30%   to   18.47%
2006   58,897   $11.54   to   $19.20   $1,078,309   0.71%   0.75%   to   2.60%   15.21%   to   17.53%
2005   43,010   $10.99   to   $16.38   $683,490   0.49%   0.75%   to   2.60%   17.83%   to   19.82%
2004   23,418   $11.16   to   $13.67   $316,864   0.22%   0.95%   to   2.60%   15.64%   to   17.45%
ING American Funds World Allocation Portfolio -                                                
Service Class                                                
2008   1,447   $9.05   to   $9.09   $13,128   (e)   1.00%   to   2.35%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING BlackRock Large Cap Growth Portfolio -                                                
Institutional Class                                                
2008   22   $5.89   to   $5.95   $131   -   0.75%   to   1.35%   -39.71%   to   -39.35%
2007   25   $9.77   to   $9.81   $244   (d)   0.75%   to   1.35%       (d)    
2006   (d)       (d)       (d)   (d)       (d)           (d)    
2005   (d)       (d)       (d)   (d)       (d)           (d)    
2004   (d)       (d)       (d)   (d)       (d)           (d)    
 
 
 
            284                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING BlackRock Large Cap Growth Portfolio - Service                                                
Class                                                
2008   12,227   $6.41   to   $8.22   $94,345   -   0.75%   to   2.60%   -40.61%   to   -39.55%
2007   11,875   $10.92   to   $13.69   $153,507   -   0.75%   to   2.60%   3.98%   to   5.97%
2006   11,782   $10.38   to   $12.92   $145,523   -   0.75%   to   2.60%   4.34%   to   6.25%
2005   12,937   $10.88   to   $12.16   $151,911   -   0.80%   to   2.60%   7.76%   to   9.39%
2004   1,738   $10.69   to   $11.08   $18,861   -   0.90%   to   2.25%   8.64%   to   10.03%
ING BlackRock Large Cap Value Portfolio - Service                                                
Class                                                
2008   3,077   $7.26   to   $9.62   $27,597   0.31%   0.90%   to   2.35%   -36.86%   to   -35.91%
2007   4,072   $11.46   to   $15.01   $57,552   0.41%   0.90%   to   2.60%   1.59%   to   3.33%
2006   5,107   $11.24   to   $14.53   $70,539   0.59%   0.80%   to   2.60%   13.51%   to   15.32%
2005   3,466   $10.53   to   $12.64   $42,124   -   0.80%   to   2.45%   2.92%   to   4.46%
2004   3,468   $11.64   to   $12.10   $40,913   0.27%   0.80%   to   2.25%   8.99%   to   10.53%
ING BlackRock Large Cap Value Portfolio - Service 2                                                
Class                                                
2008   220   $7.69   to   $11.21   $2,212   0.15%   1.40%   to   2.20%   -36.86%   to   -36.31%
2007   270   $12.18   to   $17.60   $4,303   0.23%   1.40%   to   2.20%   1.84%   to   2.62%
2006   291   $11.96   to   $17.15   $4,559   0.51%   1.40%   to   2.20%   13.69%   to   14.64%
2005   225   $10.52   to   $14.96   $3,132   -   1.40%   to   2.20%   2.92%   to   3.60%
2004   170   $10.63   to   $14.44   $2,421   0.19%   1.40%   to   2.10%   9.33%   to   9.81%
ING Evergreen Health Sciences Portfolio - Service                                                
Class                                                
2008   18,362   $6.98   to   $9.33   $164,749   0.14%   0.90%   to   2.60%   -30.52%   to   -29.35%
2007   16,047   $11.93   to   $13.21   $205,635   0.13%   0.80%   to   2.60%   5.72%   to   7.68%
2006   16,005   $11.22   to   $12.28   $192,226   -   0.80%   to   2.60%   10.88%   to   12.96%
2005   14,969   $10.26   to   $10.96   $160,600   0.01%   0.80%   to   2.60%   7.63%   to   9.37%
2004   2,972   $9.82   to   $9.94   $29,371   (a)   0.95%   to   2.60%       (a)    
ING Evergreen Omega Portfolio - Service Class                                                
2008   1,030   $8.12   to   $9.47   $8,916   0.14%   0.75%   to   2.55%   -29.38%   to   -28.09%
2007   701   $11.48   to   $13.17   $8,527   0.08%   0.75%   to   2.55%   8.85%   to   10.77%
2006   950   $10.53   to   $11.89   $10,532   -   0.75%   to   2.60%   2.84%   to   4.85%
2005   748   $10.22   to   $11.34   $7,994   -   0.75%   to   2.60%   1.72%   to   2.95%
2004   290   $10.42   to   $10.52   $3,037   (a)   0.95%   to   2.25%       (a)    
 
 
            285                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Evergreen Omega Portfolio - Service 2 Class                                                
2008   94   $8.13   to   $8.74   $802   -   1.40%   to   2.20%   -29.18%   to   -28.65%
2007   109   $11.48   to   $12.25   $1,301   -   1.40%   to   2.20%   9.02%   to   9.87%
2006   122   $10.53   to   $11.15   $1,331   -   1.40%   to   2.20%   3.03%   to   4.01%
2005   91   $10.22   to   $10.72   $961   -   1.40%   to   2.20%   1.63%   to   2.29%
2004   30   $10.43   to   $10.48   $317   (a)   1.40%   to   2.10%       (a)    
ING FMRSM Diversified Mid Cap Portfolio - Service                                                
Class                                                
2008   59,892   $6.23   to   $10.82   $581,082   0.72%   0.50%   to   2.60%   -40.75%   to   -39.42%
2007   65,165   $12.21   to   $17.86   $1,061,996   0.15%   0.50%   to   2.60%   11.47%   to   13.53%
2006   43,307   $10.93   to   $15.29   $627,079   -   0.80%   to   2.60%   9.06%   to   11.10%
2005   43,185   $10.18   to   $13.79   $569,837   -   0.80%   to   2.60%   14.35%   to   15.88%
2004   21,954   $11.22   to   $11.90   $252,365   0.13%   0.90%   to   2.25%   21.30%   to   22.93%
ING FMRSM Diversified Mid Cap Portfolio - Service 2                                                
Class                                                
2008   2,176   $8.54   to   $13.02   $25,387   0.38%   1.40%   to   2.20%   -40.57%   to   -40.14%
2007   2,406   $14.37   to   $21.75   $47,072   0.01%   1.40%   to   2.20%   11.74%   to   12.69%
2006   2,079   $12.86   to   $19.30   $36,090   -   1.40%   to   2.20%   9.35%   to   10.22%
2005   1,777   $11.76   to   $17.51   $28,369   -   1.40%   to   2.20%   14.30%   to   15.12%
2004   666   $11.82   to   $15.21   $9,744   0.22%   1.40%   to   2.10%   21.57%   to   22.07%
ING Focus 5 Portfolio - Service Class                                                
2008   22,447   $5.76   to   $6.42   $130,749   2.64%   0.75%   to   2.35%   -44.40%   to   -43.67%
2007   9,583   $10.36   to   $10.42   $99,541   (d)   1.00%   to   2.35%       (d)    
2006   (d)       (d)       (d)   (d)       (d)           (d)    
2005   (d)       (d)       (d)   (d)       (d)           (d)    
2004   (d)       (d)       (d)   (d)       (d)           (d)    
ING Franklin Income Portfolio - Service Class                                                
2008   37,779   $7.10   to   $7.84   $288,417   3.41%   0.95%   to   2.60%   -31.12%   to   -29.89%
2007   31,117   $10.83   to   $11.20   $342,076   1.18%   0.95%   to   2.60%   -0.09%   to   1.64%
2006   14,383   $10.84   to   $11.02   $156,693   (c)   0.95%   to   2.60%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
 
 
 
            286                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Franklin Income Portfolio - Service 2 Class                                        
2008   770   $7.52   to   $7.68   $5,852   3.40%   1.40%   to   2.20%   -30.95% to -30.43%
2007   824   $10.89   to   $11.04   $9,020   1.27%   1.40%   to   2.20%   0.28% to 1.10%
2006   268   $10.86   to   $10.92   $2,916   (c)   1.40%   to   2.20%   (c)
2005   (c)       (c)       (c)   (c)       (c)       (c)
2004   (c)       (c)       (c)   (c)       (c)       (c)
ING Franklin Mutual Shares Portfolio - Service Class                                        
2008   20,205   $6.38   to   $7.35   $146,314   3.71%   0.95%   to   2.60%   -39.44% to -38.34%
2007   16,820   $11.79   to   $11.92   $199,485   (d)   0.95%   to   2.60%   (d)
2006   (d)       (d)       (d)   (d)       (d)       (d)
2005   (d)       (d)       (d)   (d)       (d)       (d)
2004   (d)       (d)       (d)   (d)       (d)       (d)
ING Franklin Templeton Founding Strategy Portfolio -                                        
Service Class                                        
2008   112,503   $5.97   to   $6.81   $684,019   0.13%   0.75%   to   2.60%   -37.36% to -36.31%
2007   54,307   $9.53   to   $9.64   $520,590   (d)   0.95%   to   2.60%   (d)
2006   (d)       (d)       (d)   (d)       (d)       (d)
2005   (d)       (d)       (d)   (d)       (d)       (d)
2004   (d)       (d)       (d)   (d)       (d)       (d)
ING Global Real Estate Portfolio - Service Class                                        
2008   16,758   $5.69   to   $7.30   $118,550   -   0.75%   to   2.60%   -42.79% to -41.83%
2007   11,754   $11.74   to   $12.55   $145,395   3.55%   0.95%   to   2.60%   -9.70% to -8.19%
2006   5,601   $12.93   to   $13.67   $76,113   (c)   0.95%   to   2.60%   (c)
2005   (c)       (c)       (c)   (c)       (c)       (c)
2004   (c)       (c)       (c)   (c)       (c)       (c)
ING Global Real Estate Portfolio - Service 2 Class                                        
2008   239   $7.03   to   $7.18   $1,695   -   1.40%   to   2.20%   -42.61% to -42.19%
2007   222   $12.25   to   $12.42   $2,736   3.30%   1.40%   to   2.20%   -9.46% to -8.68%
2006   133   $13.53   to   $13.60   $1,807   (c)   1.40%   to   2.20%   (c)
2005   (c)       (c)       (c)   (c)       (c)       (c)
2004   (c)       (c)       (c)   (c)       (c)       (c)
 
 
 
 
            287                            

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Global Resources Portfolio - Service Class                                                
2008   23,618   $5.92   to   $30.99   $547,001   2.07%   0.80%   to   2.60%   -42.56%   to   -41.47%
2007   20,069   $14.96   to   $52.95   $828,047   0.01%   0.80%   to   2.60%   29.83%   to   32.18%
2006   16,489   $11.47   to   $40.06   $529,809   0.18%   0.80%   to   2.60%   18.24%   to   20.44%
2005   13,480   $13.27   to   $33.26   $373,920   0.72%   0.80%   to   2.60%   34.63%   to   36.65%
2004   8,900   $19.26   to   $24.34   $187,945   0.95%   0.80%   to   2.25%   4.05%   to   5.55%
ING Global Resources Portfolio - Service 2 Class                                                
2008   1,367   $12.40   to   $19.08   $22,531   1.65%   1.40%   to   2.20%   -42.38%   to   -41.90%
2007   1,436   $21.52   to   $32.84   $41,169   -   1.40%   to   2.20%   30.19%   to   31.20%
2006   1,445   $16.53   to   $25.03   $31,781   0.10%   1.40%   to   2.20%   18.49%   to   19.47%
2005   1,203   $13.95   to   $20.95   $22,547   0.75%   1.40%   to   2.20%   34.72%   to   35.69%
2004   688   $10.54   to   $15.44   $10,201   1.36%   1.40%   to   2.10%   4.23%   to   4.75%
ING International Growth Opportunities Portfolio -                                                
Service Class                                                
2008   7,265   $6.79   to   $8.08   $53,169   1.16%   0.90%   to   2.35%   -53.49%   to   -52.78%
2007   9,113   $14.57   to   $17.11   $142,378   1.13%   0.90%   to   2.35%   15.70%   to   17.35%
2006   11,623   $12.58   to   $14.58   $155,944   1.62%   0.90%   to   2.35%   18.73%   to   20.50%
2005   14,319   $10.59   to   $12.10   $160,706   2.39%   0.90%   to   2.35%   8.06%   to   9.50%
2004   17,199   $9.80   to   $11.15   $177,640   0.92%   0.80%   to   2.25%   14.09%   to   15.78%
ING International Growth Opportunities Portfolio -                                                
Service 2 Class                                                
2008   460   $7.12   to   $10.19   $4,451   1.05%   1.40%   to   2.20%   -53.56%   to   -53.17%
2007   521   $15.33   to   $21.76   $10,823   1.02%   1.40%   to   2.20%   15.70%   to   16.61%
2006   584   $13.25   to   $18.66   $10,449   1.54%   1.40%   to   2.20%   18.73%   to   19.77%
2005   673   $11.16   to   $15.58   $10,090   2.55%   1.40%   to   2.20%   8.00%   to   8.72%
2004   646   $11.37   to   $14.33   $9,037   1.23%   1.40%   to   2.10%   14.35%   to   14.92%
ING Janus Contrarian Portfolio - Service Class                                                
2008   48,636   $5.19   to   $9.72   $407,973   0.63%   0.90%   to   2.60%   -50.31%   to   -49.44%
2007   46,762   $14.17   to   $19.24   $784,615   -   0.90%   to   2.60%   17.74%   to   19.78%
2006   10,578   $11.99   to   $16.07   $149,666   0.42%   0.90%   to   2.60%   19.84%   to   22.00%
2005   6,969   $11.34   to   $13.19   $81,462   0.06%   0.90%   to   2.60%   12.73%   to   14.58%
2004   6,384   $10.03   to   $11.52   $65,678   -   0.90%   to   2.55%   14.50%   to   16.05%
 
 
 
            288                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Janus Contrarian Portfolio - Service 2 Class                                                
2008   1,646   $8.18   to   $13.56   $18,745   0.42%   1.40%   to   2.20%   -50.18%   to   -49.78%
2007   1,722   $16.42   to   $27.00   $39,413   -   1.40%   to   2.20%   18.13%   to   19.10%
2006   370   $13.90   to   $22.67   $7,234   0.34%   1.40%   to   2.20%   20.14%   to   21.10%
2005   225   $11.57   to   $18.72   $3,755   0.07%   1.40%   to   2.20%   13.00%   to   13.80%
2004   136   $11.31   to   $16.45   $2,177   -   1.40%   to   2.10%   14.73%   to   15.28%
ING JPMorgan Emerging Markets Equity Portfolio -                                                
Adviser Class                                                
2008   1,298   $11.95   to   $18.85   $20,686   2.26%   1.40%   to   2.20%   -52.41%   to   -52.04%
2007   1,430   $25.11   to   $39.30   $47,813   0.89%   1.40%   to   2.20%   35.15%   to   36.32%
2006   1,436   $18.58   to   $28.83   $35,277   0.49%   1.40%   to   2.20%   32.71%   to   33.78%
2005   1,054   $14.00   to   $21.55   $19,778   0.08%   1.40%   to   2.20%   31.71%   to   32.62%
2004   467   $11.10   to   $16.25   $7,217   0.63%   1.40%   to   2.10%   15.52%   to   16.07%
ING JPMorgan Emerging Markets Equity Portfolio -                                                
Service Class                                                
2008   35,629   $4.91   to   $13.05   $414,868   2.61%   0.75%   to   2.60%   -52.55%   to   -51.67%
2007   35,157   $18.01   to   $27.00   $867,350   0.89%   0.80%   to   2.60%   34.89%   to   37.40%
2006   27,668   $13.29   to   $19.65   $502,767   0.50%   0.80%   to   2.60%   32.26%   to   34.68%
2005   22,412   $13.00   to   $14.59   $305,326   0.07%   0.80%   to   2.60%   31.85%   to   33.73%
2004   14,735   $9.86   to   $10.91   $151,706   0.38%   0.80%   to   2.25%   15.05%   to   16.81%
ING JPMorgan Small Cap Core Equity Portfolio -                                                
Service Class                                                
2008   13,007   $7.38   to   $10.58   $126,323   0.47%   0.80%   to   2.60%   -31.75%   to   -30.53%
2007   16,728   $10.76   to   $15.37   $236,387   0.13%   0.80%   to   2.60%   -4.25%   to   -2.50%
2006   16,274   $11.18   to   $15.92   $239,483   -   0.80%   to   2.60%   13.63%   to   15.74%
2005   13,753   $10.36   to   $13.89   $177,486   -   0.80%   to   2.60%   -13.35%   to   1.91%
2004   11,640       $13.63       $158,627   -   0.80%   to   2.60%   23.68%   to   33.89%
ING JPMorgan Small Cap Core Equity Portfolio -                                                
Service 2 Class                                                
2008   2,792   $7.74   to   $12.15   $30,008   0.28%   1.40%   to   2.20%   -31.56%   to   -31.04%
2007   3,257   $11.31   to   $17.62   $50,959   -   1.40%   to   2.20%   -4.07%   to   -3.24%
2006   3,320   $11.79   to   $18.21   $54,102   -   1.40%   to   2.20%   13.91%   to   14.82%
2005   3,144   $10.35   to   $15.86   $45,409   -   1.40%   to   2.20%   1.34%   to   2.12%
2004   2,183   $11.93   to   $15.53   $32,610   -   1.40%   to   2.10%   23.45%   to   24.04%
 
 
            289                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING JPMorgan Value Opportunities Portfolio - Service                                                
Class                                                
2008   2,511   $6.67   to   $7.44   $18,224   2.81%   0.95%   to   2.60%   -41.09%   to   -40.08%
2007   3,402   $11.27   to   $12.42   $41,470   1.38%   0.95%   to   2.60%   -3.73%   to   -2.13%
2006   5,579   $11.65   to   $12.69   $69,946   0.29%   0.95%   to   2.60%   16.95%   to   18.93%
2005   3,843   $10.55   to   $10.67   $40,813   (b)   0.95%   to   2.60%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING JPMorgan Value Opportunities Portfolio - Service 2                                                
Class                                                
2008   96   $7.08   to   $7.29   $690   2.28%   1.40%   to   2.20%   -40.85%   to   -40.39%
2007   138   $11.97   to   $12.23   $1,674   1.36%   1.40%   to   2.20%   -3.47%   to   -2.70%
2006   137   $12.40   to   $12.57   $1,710   0.61%   1.40%   to   2.20%   17.31%   to   18.25%
2005   81   $10.57   to   $10.63   $864   (b)   1.40%   to   2.20%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Julius Baer Foreign Portfolio - Service Class                                                
2008   45,525   $5.66   to   $12.36   $499,269   -   0.80%   to   2.60%   -45.12%   to   -44.08%
2007   45,509   $13.89   to   $22.32   $908,393   0.08%   0.80%   to   2.60%   13.41%   to   15.51%
2006   36,012   $12.18   to   $19.50   $630,618   -   0.80%   to   2.60%   25.82%   to   28.14%
2005   25,762   $11.80   to   $15.36   $356,543   0.07%   0.80%   to   2.60%   12.41%   to   14.30%
2004   15,131   $11.44   to   $13.55   $185,592   0.11%   0.90%   to   2.60%   14.85%   to   16.87%
ING Julius Baer Foreign Portfolio - Service 2 Class                                                
2008   3,270   $9.31   to   $13.44   $38,955   -   1.40%   to   2.20%   -44.98%   to   -44.49%
2007   3,447   $16.92   to   $24.21   $74,247   -   1.40%   to   2.20%   13.71%   to   14.58%
2006   3,419   $14.88   to   $21.13   $64,469   -   1.40%   to   2.20%   26.21%   to   27.29%
2005   2,592   $11.79   to   $16.60   $39,182   0.03%   1.40%   to   2.20%   12.64%   to   13.54%
2004   1,245   $11.47   to   $14.62   $17,516   0.03%   1.40%   to   2.10%   15.58%   to   16.04%
ING Legg Mason Value Portfolio - Service Class                                                
2008   30,333   $3.88   to   $5.33   $127,052   0.02%   0.75%   to   2.60%   -56.65%   to   -55.79%
2007   36,876   $8.94   to   $12.18   $352,697   -   0.75%   to   2.60%   -8.40%   to   -6.71%
2006   40,578   $9.76   to   $13.19   $419,720   -   0.75%   to   2.60%   3.75%   to   5.71%
2005   40,447   $9.40   to   $12.60   $399,134   -   0.75%   to   2.60%   3.24%   to   5.12%
2004   30,531   $9.10   to   $12.10   $288,326   0.14%   0.90%   to   2.60%   10.98%   to   12.82%
 
 
 
            290                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Legg Mason Value Portfolio - Service 2 Class                                                
2008   1,822   $4.42   to   $5.84   $9,708   -   1.40%   to   2.20%   -56.54%   to   -56.12%
2007   2,078   $10.17   to   $13.31   $25,414   -   1.40%   to   2.20%   -8.21%   to   -7.44%
2006   2,257   $11.08   to   $14.38   $29,989   -   1.40%   to   2.20%   4.04%   to   4.89%
2005   2,121   $10.65   to   $13.71   $27,151   -   1.40%   to   2.20%   3.59%   to   4.34%
2004   1,086   $11.15   to   $13.14   $13,915   0.20%   1.40%   to   2.10%   11.58%   to   12.03%
ING LifeStyle Aggressive Growth Portfolio - Service                                                
Class                                                
2008   94,608   $6.01   to   $8.32   $750,652   1.74%   0.95%   to   2.60%   -43.33%   to   -42.34%
2007   95,413   $11.58   to   $14.43   $1,325,896   0.60%   0.95%   to   2.60%   0.59%   to   2.27%
2006   82,802   $11.48   to   $14.11   $1,135,564   0.15%   0.95%   to   2.60%   15.00%   to   17.00%
2005   56,804   $10.82   to   $12.06   $672,396   0.08%   0.95%   to   2.60%   5.01%   to   6.73%
2004   19,102   $11.17   to   $11.30   $214,566   (a)   0.95%   to   2.60%       (a)    
ING LifeStyle Aggressive Growth Portfolio - Service 2                                                
Class                                                
2008   342   $7.97   to   $8.21   $2,764   1.55%   1.40%   to   2.20%   -43.15%   to   -42.67%
2007   305   $14.02   to   $14.32   $4,328   0.50%   1.40%   to   2.20%   0.86%   to   1.63%
2006   181   $13.90   to   $14.09   $2,529   (c)   1.40%   to   2.20%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING LifeStyle Conservative Portfolio - Service Class                                                
2008   16,100   $7.92   to   $7.97   $127,834   (e)   1.00%   to   2.35%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING LifeStyle Growth Portfolio - Service Class                                                
2008   352,343   $6.46   to   $8.74   $2,923,992   1.78%   0.95%   to   2.60%   -38.23%   to   -37.21%
2007   289,602   $11.44   to   $13.92   $3,874,407   0.92%   0.95%   to   2.60%   1.16%   to   2.96%
2006   207,051   $11.25   to   $13.52   $2,719,322   0.48%   0.95%   to   2.60%   12.43%   to   14.30%
2005   118,288   $10.67   to   $11.83   $1,373,807   0.33%   0.95%   to   2.60%   4.07%   to   5.82%
2004   42,766   $11.05   to   $11.18   $475,452   (a)   0.95%   to   2.60%       (a)    
 
 
 
            291                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING LifeStyle Growth Portfolio - Service 2 Class                                                
2008   1,132   $8.33   to   $8.58   $9,573   1.60%   1.40%   to   2.20%   -38.11%   to   -37.65%
2007   903   $13.46   to   $13.76   $12,286   1.12%   1.40%   to   2.20%   1.43%   to   2.23%
2006   621   $13.27   to   $13.46   $8,291   (c)   1.40%   to   2.20%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING LifeStyle Moderate Growth Portfolio - Service                                                
Class                                                
2008   281,018   $6.90   to   $9.10   $2,432,730   2.09%   0.95%   to   2.60%   -33.36%   to   -32.19%
2007   228,517   $11.37   to   $13.42   $2,953,955   1.21%   0.95%   to   2.60%   1.94%   to   3.63%
2006   169,362   $11.09   to   $12.95   $2,131,406   0.85%   0.95%   to   2.60%   10.44%   to   12.32%
2005   109,586   $10.52   to   $11.53   $1,239,629   0.62%   0.95%   to   2.60%   3.03%   to   4.82%
2004   41,489   $10.88   to   $11.00   $453,877   (a)   0.95%   to   2.60%       (a)    
ING LifeStyle Moderate Growth Portfolio - Service 2                                                
Class                                                
2008   1,272   $8.64   to   $8.90   $11,153   2.00%   1.40%   to   2.20%   -33.18%   to   -32.65%
2007   1,247   $12.93   to   $13.22   $16,308   1.24%   1.40%   to   2.20%   2.13%   to   3.04%
2006   407   $12.66   to   $12.83   $5,180   (c)   1.40%   to   2.20%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING LifeStyle Moderate Portfolio - Service Class                                                
2008   154,557   $7.40   to   $9.54   $1,401,406   2.14%   0.95%   to   2.60%   -27.90%   to   -26.67%
2007   102,978   $11.24   to   $13.01   $1,290,614   1.49%   0.95%   to   2.60%   2.26%   to   4.00%
2006   74,241   $10.93   to   $12.51   $903,677   1.07%   0.95%   to   2.60%   8.53%   to   10.41%
2005   46,302   $10.43   to   $11.33   $515,732   0.84%   0.95%   to   2.60%   2.61%   to   4.33%
2004   19,609   $10.74   to   $10.86   $211,827   (a)   0.95%   to   2.60%       (a)    
ING LifeStyle Moderate Portfolio - Service 2 Class                                                
2008   1,235   $9.03   to   $9.30   $11,314   2.40%   1.40%   to   2.20%   -27.70%   to   -27.17%
2007   1,078   $12.49   to   $12.77   $13,609   1.56%   1.40%   to   2.20%   2.38%   to   3.32%
2006   629   $12.20   to   $12.36   $7,718   (c)   1.40%   to   2.20%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
 
 
 
            292                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Limited Maturity Bond Portfolio - Service Class                                                
2008   6,346   $9.94   to   $25.73   $130,395   6.53%   0.50%   to   2.25%   -2.48%   to   -0.73%
2007   8,412   $10.17   to   $25.92   $176,466   1.99%   0.50%   to   2.25%   3.35%   to   5.24%
2006   10,711   $18.26   to   $24.63   $216,291   3.51%   0.50%   to   2.25%   1.53%   to   3.31%
2005   13,640   $17.66   to   $23.84   $269,644   4.59%   0.50%   to   2.25%   -0.67%   to   1.10%
2004   18,084   $17.78   to   $23.58   $357,305   4.19%   0.50%   to   2.25%   -0.89%   to   0.90%
ING Liquid Assets Portfolio - Service Class                                                
2008   150,409   $10.01   to   $19.49   $2,331,467   2.26%   0.75%   to   2.60%   -0.19%   to   1.67%
2007   68,096   $10.32   to   $19.17   $1,050,018   4.98%   0.75%   to   2.60%   2.18%   to   4.18%
2006   46,163   $10.10   to   $18.40   $710,117   5.15%   0.75%   to   2.60%   1.92%   to   3.84%
2005   38,622   $9.89   to   $17.72   $582,359   3.06%   0.75%   to   2.60%   0.15%   to   2.01%
2004   41,260   $9.83   to   $17.37   $618,281   1.05%   0.75%   to   2.60%   -1.66%   to   0.17%
ING Liquid Assets Portfolio - Service 2 Class                                                
2008   5,349   $10.40   to   $10.70   $56,288   2.09%   1.40%   to   2.20%   0.10%   to   0.85%
2007   2,311   $10.36   to   $10.64   $24,213   4.67%   1.40%   to   2.20%   2.44%   to   3.31%
2006   1,518   $10.07   to   $10.34   $15,430   4.99%   1.40%   to   2.20%   2.29%   to   3.11%
2005   1,143   $9.81   to   $10.08   $11,307   3.20%   1.40%   to   2.20%   0.40%   to   1.22%
2004   970   $9.74   to   $9.91   $9,497   1.14%   1.40%   to   2.10%   -1.12%   to   -0.61%
ING Lord Abbett Affiliated Portfolio - Service Class                                                
2008   6,883   $7.23   to   $9.55   $58,611   2.38%   0.90%   to   2.60%   -38.24%   to   -37.15%
2007   8,922   $11.58   to   $15.21   $122,006   1.66%   0.90%   to   2.60%   1.44%   to   3.19%
2006   11,650   $11.28   to   $14.74   $155,652   0.80%   0.90%   to   2.60%   14.60%   to   16.57%
2005   10,892   $10.40   to   $12.66   $126,090   1.17%   0.90%   to   2.55%   2.87%   to   4.54%
2004   13,023   $10.85   to   $12.11   $145,322   0.65%   0.90%   to   2.55%   7.43%   to   9.01%
ING Lord Abbett Affiliated Portfolio - Service 2 Class                                                
2008   200   $7.53   to   $10.51   $1,892   2.29%   1.40%   to   2.20%   -38.02%   to   -37.55%
2007   225   $12.15   to   $16.83   $3,428   1.63%   1.40%   to   2.20%   1.76%   to   2.56%
2006   245   $11.94   to   $16.41   $3,685   0.83%   1.40%   to   2.20%   14.70%   to   15.73%
2005   208   $10.41   to   $14.18   $2,804   1.27%   1.40%   to   2.20%   3.15%   to   3.89%
2004   144   $10.46   to   $13.65   $1,920   0.82%   1.40%   to   2.10%   7.66%   to   8.25%
 
 
 
 
            293                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Marsico Growth Portfolio - Service Class                                                
2008   37,553   $6.17   to   $12.13   $397,436   0.52%   0.80%   to   2.60%   -41.84%   to   -40.80%
2007   41,695   $12.20   to   $20.49   $758,194   -   0.80%   to   2.60%   11.21%   to   13.20%
2006   44,891   $10.86   to   $18.69   $732,265   -   0.50%   to   2.60%   2.22%   to   4.41%
2005   51,436   $10.77   to   $17.90   $818,414   -   0.50%   to   2.60%   6.08%   to   8.35%
2004   54,430   $11.02   to   $16.52   $813,432   -   0.50%   to   2.60%   9.95%   to   11.92%
ING Marsico Growth Portfolio - Service 2 Class                                                
2008   1,535   $7.17   to   $10.36   $14,277   0.32%   1.40%   to   2.20%   -41.75%   to   -41.24%
2007   1,666   $12.31   to   $17.63   $26,446   -   1.40%   to   2.20%   11.50%   to   12.44%
2006   1,736   $11.04   to   $15.68   $24,784   -   1.40%   to   2.20%   2.51%   to   3.29%
2005   1,600   $10.77   to   $15.18   $22,546   -   1.40%   to   2.20%   6.47%   to   7.20%
2004   1,088   $10.98   to   $14.16   $15,095   -   1.40%   to   2.10%   10.23%   to   10.72%
ING Marsico International Opportunities Portfolio -                                                
Service Class                                                
2008   18,200   $5.23   to   $9.16   $160,191   1.13%   0.75%   to   2.60%   -50.83%   to   -49.95%
2007   16,499   $14.26   to   $18.30   $294,956   0.87%   0.90%   to   2.60%   17.41%   to   19.53%
2006   11,871   $12.08   to   $15.31   $179,220   0.03%   0.90%   to   2.60%   20.78%   to   22.89%
2005   10,005   $12.32   to   $12.46   $123,938   (b)   0.90%   to   2.60%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING MFS Total Return Portfolio - Service Class                                                
2008   38,189   $7.77   to   $24.27   $740,739   5.93%   0.50%   to   2.60%   -24.37%   to   -22.73%
2007   43,202   $10.21   to   $31.41   $1,114,781   2.83%   0.50%   to   2.60%   1.28%   to   3.49%
2006   48,171   $11.08   to   $30.35   $1,227,770   2.28%   0.50%   to   2.60%   9.10%   to   11.38%
2005   53,957   $10.15   to   $27.25   $1,266,332   2.23%   0.50%   to   2.60%   0.19%   to   2.37%
2004   54,357   $10.75   to   $26.62   $1,280,878   1.88%   0.50%   to   2.60%   8.30%   to   10.59%
ING MFS Total Return Portfolio - Service 2 Class                                                
2008   3,225   $8.55   to   $11.03   $32,705   5.67%   1.40%   to   2.20%   -24.13%   to   -23.51%
2007   3,710   $11.27   to   $14.42   $49,366   2.89%   1.40%   to   2.20%   1.53%   to   2.35%
2006   4,025   $11.10   to   $14.09   $52,787   2.19%   1.40%   to   2.20%   9.36%   to   10.25%
2005   4,017   $10.15   to   $12.78   $48,425   2.28%   1.40%   to   2.20%   0.47%   to   1.27%
2004   2,842   $10.70   to   $12.62   $35,147   2.53%   1.40%   to   2.10%   8.99%   to   9.45%
 
 
 
 
            294                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING MFS Utilities Portfolio - Service Class                                                
2008   31,245   $6.19   to   $11.55   $347,825   3.74%   0.75%   to   2.60%   -39.34%   to   -38.27%
2007   27,331   $15.42   to   $18.71   $499,704   0.74%   0.80%   to   2.60%   24.10%   to   26.38%
2006   18,136   $12.35   to   $14.82   $264,982   0.08%   0.80%   to   2.60%   27.43%   to   29.83%
2005   13,290   $10.19   to   $11.44   $151,085   (b)   0.80%   to   2.60%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Multi-Manager International Small Cap Portfolio - Class S                                                
                                               
2008   494   $5.31   to   $5.36   $2,636   (e)   0.95%   to   2.35%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING Oppenheimer Active Asset Allocation Portfolio - Service Class                                                
                                               
2008   412   $8.41   to   $8.45   $3,471   (e)   1.15%   to   2.35%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING Oppenheimer Main Street Portfolio® - Service Class                                                
2008   13,533   $6.46   to   $16.32   $195,464   2.54%   0.90%   to   2.60%   -40.24%   to   -39.26%
2007   15,714   $11.63   to   $27.22   $379,304   0.99%   0.80%   to   2.60%   1.54%   to   3.42%
2006   18,452   $11.35   to   $26.32   $435,688   1.03%   0.80%   to   2.60%   11.96%   to   13.99%
2005   21,352   $10.44   to   $23.09   $447,401   0.92%   0.80%   to   2.60%   3.05%   to   4.91%
2004   24,115   $10.85   to   $22.01   $487,638   0.79%   0.80%   to   2.55%   10.00%   to   11.95%
ING Oppenheimer Main Street Portfolio® - Service 2                                                
Class                                                
2008   298   $7.14   to   $9.66   $2,633   2.30%   1.40%   to   2.20%   -40.10%   to   -39.66%
2007   330   $11.92   to   $16.01   $4,861   0.94%   1.40%   to   2.20%   1.79%   to   2.63%
2006   356   $11.71   to   $15.60   $5,158   1.06%   1.40%   to   2.20%   12.27%   to   13.21%
2005   336   $10.43   to   $13.78   $4,350   0.91%   1.40%   to   2.20%   3.36%   to   4.08%
2004   219   $10.73   to   $13.24   $2,848   1.04%   1.40%   to   2.10%   10.64%   to   11.08%
 
 
 
            295                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING PIMCO Core Bond Portfolio - Service Class                                                
2008   146,635   $10.05   to   $17.10   $2,112,274   3.67%   0.75%   to   2.60%   1.54%   to   3.45%
2007   67,225   $10.85   to   $16.53   $963,329   2.80%   0.75%   to   2.60%   6.15%   to   8.18%
2006   46,467   $10.19   to   $15.28   $629,159   2.44%   0.75%   to   2.60%   1.66%   to   3.54%
2005   46,819   $10.01   to   $14.76   $619,526   3.52%   0.75%   to   2.60%   -0.19%   to   1.72%
2004   44,134   $10.26   to   $14.51   $581,595   2.76%   0.75%   to   2.60%   2.21%   to   4.09%
ING PIMCO Core Bond Portfolio - Service 2 Class                                                
2008   5,145   $11.03   to   $12.46   $61,403   3.17%   1.40%   to   2.20%   1.66%   to   2.64%
2007   4,084   $10.85   to   $12.14   $47,659   3.23%   1.40%   to   2.20%   6.37%   to   7.24%
2006   3,836   $10.20   to   $11.32   $41,970   2.47%   1.40%   to   2.20%   2.00%   to   2.82%
2005   3,333   $10.00   to   $11.01   $35,739   3.46%   1.40%   to   2.20%   0.20%   to   0.82%
2004   2,587   $10.03   to   $10.92   $27,855   3.26%   1.40%   to   2.10%   2.95%   to   3.31%
ING PIMCO High Yield Portfolio - Service Class                                                
2008   35,884   $7.65   to   $9.76   $326,164   8.81%   0.50%   to   2.60%   -24.50%   to   -22.89%
2007   48,061   $10.74   to   $12.70   $574,507   6.90%   0.50%   to   2.60%   0.17%   to   2.37%
2006   54,855   $10.86   to   $12.45   $649,202   6.60%   0.50%   to   2.60%   6.14%   to   8.41%
2005   56,422   $10.21   to   $11.52   $624,247   6.59%   0.50%   to   2.60%   1.58%   to   3.76%
2004   60,645   $10.73   to   $11.13   $654,861   (a)   0.50%   to   2.60%       (a)    
ING Pioneer Fund Portfolio - Service Class                                                
2008   5,490   $6.83   to   $8.63   $45,727   2.81%   0.75%   to   2.60%   -36.39%   to   -35.26%
2007   6,910   $11.59   to   $13.33   $89,772   1.01%   0.75%   to   2.60%   2.26%   to   4.30%
2006   7,815   $12.39   to   $12.78   $98,275   -   0.75%   to   2.60%   13.77%   to   15.87%
2005   7,507   $10.89   to   $11.03   $82,253   (b)   0.75%   to   2.60%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Pioneer Mid Cap Value Portfolio - Service Class                                                
2008   60,375   $6.88   to   $8.48   $494,199   1.66%   0.75%   to   2.60%   -34.81%   to   -33.65%
2007   52,138   $11.64   to   $12.78   $648,885   0.53%   0.75%   to   2.60%   2.70%   to   4.75%
2006   52,297   $11.19   to   $12.20   $627,662   0.19%   0.75%   to   2.60%   9.44%   to   11.52%
2005   54,549   $10.04   to   $10.94   $592,996   (b)   0.75%   to   2.60%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
 
 
 
 
            296                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING T. Rowe Price Capital Appreciation Portfolio -                                                
Service Class                                                
2008   75,307   $7.26   to   $39.50   $1,962,032   4.41%   0.75%   to   2.60%   -29.40%   to   -28.10%
2007   70,829   $10.22   to   $54.94   $2,706,874   1.81%   0.80%   to   2.60%   1.64%   to   3.56%
2006   65,649   $11.17   to   $53.05   $2,587,523   1.18%   0.80%   to   2.60%   11.64%   to   13.72%
2005   59,970   $10.68   to   $46.65   $2,239,487   1.30%   0.80%   to   2.60%   5.33%   to   6.87%
2004   49,150   $34.53   to   $43.65   $1,866,804   1.12%   0.80%   to   2.25%   13.96%   to   15.69%
ING T. Rowe Price Capital Appreciation Portfolio -                                                
Service 2 Class                                                
2008   6,234   $8.62   to   $12.44   $69,529   3.87%   1.40%   to   2.20%   -29.23%   to   -28.63%
2007   7,127   $12.18   to   $17.43   $111,811   1.70%   1.40%   to   2.20%   1.92%   to   2.77%
2006   7,567   $11.95   to   $16.96   $115,607   1.16%   1.40%   to   2.20%   12.00%   to   12.92%
2005   6,643   $10.67   to   $15.02   $91,512   1.33%   1.40%   to   2.20%   5.34%   to   6.08%
2004   4,029   $11.24   to   $14.16   $55,427   1.53%   1.40%   to   2.10%   14.27%   to   14.84%
ING T. Rowe Price Equity Income Portfolio - Service                                                
Class                                                
2008   28,972   $6.65   to   $26.53   $553,960   4.20%   0.50%   to   2.60%   -37.39%   to   -36.01%
2007   30,810   $11.55   to   $41.46   $945,504   1.39%   0.50%   to   2.60%   0.39%   to   2.52%
2006   33,077   $12.03   to   $40.44   $1,025,488   1.30%   0.50%   to   2.60%   15.98%   to   18.52%
2005   34,766   $10.34   to   $34.12   $940,116   1.16%   0.50%   to   2.60%   1.18%   to   3.39%
2004   33,622   $11.01   to   $33.00   $916,190   0.96%   0.50%   to   2.60%   12.27%   to   14.31%
ING T. Rowe Price Equity Income Portfolio - Service 2                                                
Class                                                
2008   2,064   $7.60   to   $10.56   $20,160   3.93%   1.40%   to   2.20%   -37.24%   to   -36.69%
2007   2,243   $12.11   to   $16.68   $34,714   1.32%   1.40%   to   2.20%   0.67%   to   1.52%
2006   2,374   $12.03   to   $16.43   $36,444   1.32%   1.40%   to   2.20%   16.34%   to   17.27%
2005   2,369   $10.34   to   $14.01   $31,279   1.12%   1.40%   to   2.20%   1.62%   to   2.26%
2004   1,728   $11.12   to   $13.70   $23,091   1.17%   1.40%   to   2.10%   12.45%   to   13.04%
ING Templeton Global Growth Portfolio - Service Class                                                
2008   16,433   $6.13   to   $17.52   $234,440   1.02%   0.80%   to   2.60%   -41.26%   to   -40.14%
2007   18,291   $11.69   to   $30.60   $448,072   1.03%   0.50%   to   2.60%   -0.30%   to   1.90%
2006   18,750   $11.67   to   $30.03   $466,167   0.89%   0.50%   to   2.60%   19.00%   to   21.33%
2005   17,674   $11.00   to   $24.75   $373,570   0.70%   0.50%   to   2.40%   7.40%   to   9.32%
2004   19,426   $18.24   to   $22.64   $383,093   0.47%   0.50%   to   2.25%   8.44%   to   10.39%
 
 
            297                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Templeton Global Growth Portfolio - Service 2                                                
Class                                                
2008   357   $7.72   to   $11.69   $3,738   0.71%   1.40%   to   2.20%   -41.07%   to   -40.60%
2007   464   $13.10   to   $19.68   $8,169   0.90%   1.40%   to   2.20%   0.00%   to   0.87%
2006   481   $13.10   to   $19.51   $8,479   0.84%   1.40%   to   2.20%   19.09%   to   20.06%
2005   429   $11.00   to   $16.25   $6,469   0.75%   1.40%   to   2.20%   7.47%   to   8.20%
2004   328   $10.71   to   $15.02   $4,767   0.79%   1.40%   to   2.10%   8.63%   to   9.16%
ING Van Kampen Capital Growth Portfolio - Service                                                
Class                                                
2008   16,083   $5.33   to   $7.88   $110,837   0.06%   0.75%   to   2.60%   -50.63%   to   -49.79%
2007   3,923   $13.09   to   $15.70   $54,233   -   0.90%   to   2.60%   18.10%   to   20.20%
2006   4,859   $10.97   to   $13.07   $56,357   -   0.80%   to   2.60%   1.44%   to   3.17%
2005   5,371   $11.09   to   $12.68   $60,887   0.30%   0.80%   to   2.60%   12.47%   to   13.98%
2004   4,030   $9.86   to   $10.23   $40,329   -   0.90%   to   2.25%   4.89%   to   6.34%
ING Van Kampen Capital Growth Portfolio - Service 2                                                
Class                                                
2008   1   $8.34   to   $8.39   $12   -   1.75%   to   1.85%   -50.30%   to   -50.27%
2007   890   $13.72   to   $17.19   $14,455   -   1.40%   to   2.20%   18.28%   to   19.38%
2006   980   $11.60   to   $14.40   $13,405   -   1.40%   to   2.20%   1.67%   to   2.42%
2005   949   $11.41   to   $14.06   $12,815   0.24%   1.40%   to   2.20%   12.61%   to   13.39%
2004   808   $10.55   to   $12.40   $9,811   -   1.40%   to   2.10%   5.05%   to   5.53%
ING Van Kampen Global Franchise Portfolio - Service                                                
Class                                                
2008   18,444   $7.11   to   $12.74   $215,647   1.99%   0.80%   to   2.60%   -30.39%   to   -29.14%
2007   20,324   $12.28   to   $17.98   $339,631   -   0.80%   to   2.60%   6.81%   to   8.84%
2006   19,786   $11.43   to   $16.52   $308,178   1.62%   0.80%   to   2.60%   18.18%   to   20.32%
2005   16,288   $10.56   to   $13.73   $213,710   0.22%   0.80%   to   2.60%   8.87%   to   10.46%
2004   9,665   $11.95   to   $12.43   $117,208   -   0.80%   to   2.25%   10.14%   to   11.78%
ING Van Kampen Global Franchise Portfolio - Service 2                                                
Class                                                
2008   4,476   $9.83   to   $13.05   $53,281   1.77%   1.40%   to   2.20%   -30.23%   to   -29.65%
2007   5,104   $14.09   to   $18.55   $86,794   -   1.40%   to   2.20%   7.15%   to   8.04%
2006   5,309   $13.15   to   $17.17   $84,046   1.67%   1.40%   to   2.20%   18.47%   to   19.44%
2005   4,920   $11.10   to   $14.38   $66,237   0.14%   1.40%   to   2.20%   8.82%   to   9.69%
2004   3,118   $10.89   to   $13.11   $39,831   -   1.40%   to   2.10%   10.47%   to   10.92%
 
            298                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Van Kampen Global Tactical Asset Allocation                                                
Portfolio - Service Class                                                
2008   318   $8.54   to   $8.58   $2,725   (e)   1.15%   to   2.35%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING Van Kampen Growth and Income Portfolio -                                                
Service Class                                                
2008   21,955   $6.85   to   $24.84   $428,956   3.75%   0.50%   to   2.60%   -34.00%   to   -32.55%
2007   24,948   $11.42   to   $36.83   $739,205   1.52%   0.50%   to   2.60%   -0.08%   to   2.08%
2006   28,474   $11.39   to   $36.08   $851,385   1.15%   0.50%   to   2.60%   13.07%   to   15.42%
2005   29,601   $10.97   to   $31.26   $791,655   1.01%   0.50%   to   2.55%   7.61%   to   9.53%
2004   30,700   $23.39   to   $28.54   $772,796   0.96%   0.50%   to   2.25%   11.54%   to   13.52%
ING Van Kampen Growth and Income Portfolio -                                                
Service 2 Class                                                
2008   4,227   $8.23   to   $11.55   $44,662   3.49%   1.40%   to   2.20%   -33.84%   to   -33.24%
2007   4,845   $12.44   to   $17.30   $77,095   1.37%   1.40%   to   2.20%   0.16%   to   0.99%
2006   5,087   $12.42   to   $17.13   $80,594   1.05%   1.40%   to   2.20%   13.32%   to   14.20%
2005   4,997   $10.96   to   $15.00   $70,383   1.00%   1.40%   to   2.20%   7.63%   to   8.32%
2004   3,963   $11.01   to   $13.85   $53,331   1.39%   1.40%   to   2.10%   11.84%   to   12.33%
ING Van Kampen Real Estate Portfolio - Service Class                                                
2008   8,954   $5.97   to   $47.60   $270,838   1.26%   0.50%   to   2.60%   -40.10%   to   -38.82%
2007   11,227   $9.92   to   $77.80   $578,834   1.18%   0.50%   to   2.60%   -19.87%   to   -18.16%
2006   14,683   $12.29   to   $95.06   $970,402   1.16%   0.50%   to   2.60%   34.09%   to   36.95%
2005   13,345   $11.63   to   $69.41   $683,995   1.06%   0.50%   to   2.60%   13.76%   to   16.21%
2004   11,459   $13.59   to   $59.73   $557,477   1.55%   0.50%   to   2.60%   34.69%   to   37.06%
ING Van Kampen Real Estate Portfolio - Service 2 Class                                                
2008   1,378   $7.54   to   $13.51   $15,856   1.08%   1.40%   to   2.20%   -39.97%   to   -39.44%
2007   1,592   $12.56   to   $22.31   $30,569   1.05%   1.40%   to   2.20%   -19.69%   to   -19.02%
2006   1,706   $15.64   to   $27.55   $40,981   1.18%   1.40%   to   2.20%   34.36%   to   35.51%
2005   1,604   $11.64   to   $20.33   $28,990   1.02%   1.40%   to   2.20%   14.13%   to   14.92%
2004   1,043   $12.60   to   $17.69   $17,799   1.90%   1.40%   to   2.10%   35.03%   to   35.76%
 
 
 
            299                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING VP Index Plus International Equity Portfolio -                                                
Service Class                                                
2008   2,429   $5.93   to   $7.64   $17,249   6.05%   0.75%   to   2.60%   -45.28%   to   -44.22%
2007   3,153   $10.77   to   $13.71   $41,029   -   0.75%   to   2.60%   5.33%   to   7.40%
2006   2,596   $10.91   to   $12.80   $32,572   1.87%   0.75%   to   2.60%   22.00%   to   23.81%
2005   23   $10.32   to   $10.33   $240   (b)   0.95%   to   2.35%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING VP Index Plus International Equity Portfolio -                                                
Service 2 Class                                                
2008   39   $7.22   to   $7.40   $284   4.98%   1.40%   to   2.20%   -45.14%   to   -44.73%
2007   60   $13.16   to   $13.39   $800   -   1.40%   to   2.20%   5.62%   to   6.52%
2006   55   $12.46   to   $12.57   $688   (c)   1.40%   to   2.20%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING Wells Fargo Small Cap Disciplined Portfolio -                                                
Service Class                                                
2008   924   $6.95   to   $7.33   $6,594   0.84%   0.90%   to   2.35%   -34.33%   to   -33.36%
2007   1,325   $10.43   to   $11.00   $14,310   -   0.90%   to   2.35%   -6.00%   to   -4.51%
2006   2,157   $10.94   to   $11.52   $24,614   0.54%   0.90%   to   2.60%   16.79%   to   17.90%
2005   7   $9.71   to   $9.72   $71   (b)   1.40%   to   2.35%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Wells Fargo Small Cap Disciplined Portfolio -                                                
Service 2 Class                                                
2008   52   $7.01   to   $7.19   $369   0.79%   1.40%   to   2.20%   -34.30%   to   -33.79%
2007   60   $10.67   to   $10.86   $641   -   1.40%   to   2.20%   -5.99%   to   -5.15%
2006   115   $11.35   to   $11.45   $1,313   (c)   1.40%   to   2.20%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING Diversified International Fund - Class R                                                
2008   29   $6.27   to   $6.35   $182   7.24%   0.75%   to   1.35%   -46.77%   to   -46.46%
2007   34   $11.78   to   $11.86   $398   2.53%   0.75%   to   1.35%   10.40%   to   10.67%
2006   7   $10.67   to   $10.68   $76   (c)   1.00%   to   1.35%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
 
 
            300                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING American Century Large Company Value                                                
Portfolio - Service Class                                                
2008   44   $7.65   to   $9.07   $385   14.69%   0.75%   to   1.35%   -37.85%   to   -37.48%
2007   39   $12.28   to   $14.54   $527   1.38%   0.75%   to   1.35%   -3.31%   to   -2.79%
2006   56   $12.67   to   $14.99   $775   0.26%   0.75%   to   1.35%   17.73%   to   18.46%
2005   57   $10.80   to   $12.69   $681   1.30%   0.75%   to   1.35%   -0.16%   to   0.46%
2004   57   $10.72   to   $12.66   $651   0.99%   0.75%   to   1.35%   8.70%   to   9.27%
ING American Century Small-Mid Cap Value Portfolio -                                                
Service Class                                                
2008   34   $11.17   to   $12.12   $404   0.87%   0.75%   to   1.35%   -27.54%   to   -27.11%
2007   32   $15.35   to   $16.66   $519   0.53%   0.75%   to   1.35%   -4.20%   to   -3.60%
2006   36   $15.96   to   $17.34   $611   0.02%   0.75%   to   1.35%   13.90%   to   14.58%
2005   33   $13.96   to   $15.17   $483   0.19%   0.75%   to   1.35%   6.56%   to   7.00%
2004   29   $13.07   to   $14.21   $389   0.36%   0.75%   to   1.20%   19.88%   to   20.44%
ING Baron Small Cap Growth Portfolio - Service Class                                                
2008   23,371   $6.17   to   $10.97   $177,288   -   0.75%   to   2.60%   -42.81%   to   -41.71%
2007   18,283   $11.41   to   $18.82   $240,630   -   0.75%   to   2.60%   3.35%   to   5.32%
2006   11,736   $11.00   to   $17.87   $147,898   -   0.75%   to   2.60%   12.27%   to   14.40%
2005   5,940   $10.91   to   $15.62   $66,027   -   0.75%   to   2.60%   5.94%   to   6.55%
2004   99   $14.49   to   $14.66   $1,448   -   0.75%   to   1.35%   26.22%   to   27.04%
ING Columbia Small Cap Value II Portfolio - Service                                                
Class                                                
2008   20,680   $6.42   to   $7.36   $136,090   0.10%   0.95%   to   2.60%   -35.80%   to   -34.69%
2007   14,188   $10.00   to   $11.27   $144,098   0.12%   0.95%   to   2.60%   0.30%   to   2.08%
2006   7,129   $9.97   to   $11.06   $71,511   (c)   0.95%   to   2.60%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING Davis New York Venture Portfolio - Service Class                                                
2008   27,384   $6.28   to   $9.15   $185,900   0.86%   0.75%   to   2.60%   -40.84%   to   -39.67%
2007   16,069   $11.14   to   $15.21   $182,872   0.26%   0.75%   to   2.60%   1.46%   to   3.31%
2006   8,295   $10.98   to   $14.75   $92,112   0.01%   0.75%   to   2.60%   11.41%   to   13.07%
2005   210   $9.90   to   $13.09   $2,221   -   0.75%   to   2.20%   2.53%   to   3.05%
2004   69   $11.07   to   $12.72   $809   -   0.75%   to   1.35%   6.93%   to   7.63%
 
 
 
            301                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING JPMorgan Mid Cap Value Portfolio - Service Class                                                
2008   3,989   $6.86   to   $11.95   $35,664   2.75%   0.75%   to   2.55%   -34.77%   to   -33.54%
2007   1,393   $13.50   to   $17.98   $23,165   0.56%   0.75%   to   2.60%   -0.37%   to   1.58%
2006   1,576   $13.55   to   $17.70   $25,829   -   0.75%   to   2.60%   13.48%   to   15.61%
2005   1,732   $11.93   to   $15.31   $24,632   0.29%   0.75%   to   2.60%   5.66%   to   7.74%
2004   1,575   $11.25   to   $14.21   $21,149   0.22%   0.75%   to   2.60%   17.53%   to   19.61%
ING Legg Mason Partners Aggressive Growth                                                
Portfolio - Service Class                                                
2008   10,153   $6.28   to   $8.23   $79,359   -   0.75%   to   2.55%   -40.88%   to   -39.75%
2007   11,590   $10.62   to   $13.69   $152,199   -   0.75%   to   2.60%   -4.49%   to   -2.68%
2006   12,234   $11.97   to   $14.09   $166,845   -   0.75%   to   2.60%   7.21%   to   9.18%
2005   12,230   $11.15   to   $12.93   $154,616   -   0.75%   to   2.60%   8.29%   to   10.14%
2004   9,733   $10.37   to   $11.74   $113,031   -   0.95%   to   2.60%   6.69%   to   8.40%
ING Neuberger Berman Partners Portfolio - Service                                                
Class                                                
2008   11,084   $5.15   to   $5.96   $58,327   -   0.80%   to   2.45%   -52.49%   to   -51.73%
2007   13,554   $10.70   to   $12.36   $148,883   0.23%   0.80%   to   2.60%   5.77%   to   7.75%
2006   17,001   $9.94   to   $11.49   $174,800   (c)   0.80%   to   2.60%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING Oppenheimer Global Portfolio - Initial Class                                                
2008   762   $8.38   to   $8.85   $6,611   2.25%   0.75%   to   2.20%   -41.64%   to   -40.76%
2007   972   $14.20   to   $14.94   $14,307   1.09%   0.75%   to   2.60%   3.80%   to   5.81%
2006   1,210   $13.68   to   $14.12   $16,934   0.07%   0.75%   to   2.60%   14.95%   to   17.08%
2005   1,523   $11.90   to   $12.06   $18,307   (b)   0.75%   to   2.60%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Oppenheimer Global Portfolio - Service Class                                                
2008   11,877   $6.16   to   $10.97   $105,333   2.45%   0.75%   to   2.60%   -42.04%   to   -40.94%
2007   10,498   $12.05   to   $18.62   $160,036   0.96%   0.75%   to   2.60%   3.55%   to   5.56%
2006   7,433   $11.61   to   $17.69   $108,798   0.07%   0.75%   to   2.60%   14.56%   to   16.69%
2005   2,571   $11.89   to   $15.19   $32,615   1.19%   0.75%   to   2.60%   10.32%   to   12.43%
2004   250   $10.88   to   $13.54   $3,060   -   0.75%   to   2.60%   12.08%   to   14.19%
 
 
 
            302                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Oppenheimer Strategic Income Portfolio - Service                                                
Class                                                
2008   914   $9.58   to   $9.80   $8,886   6.50%   0.75%   to   1.35%   -16.91%   to   -16.38%
2007   862   $11.53   to   $11.72   $10,045   4.43%   0.75%   to   1.35%   7.16%   to   7.82%
2006   384   $10.76   to   $10.87   $4,165   0.12%   0.75%   to   1.35%   6.75%   to   7.41%
2005   306   $10.08   to   $10.12   $3,093   (b)   0.75%   to   1.35%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING PIMCO Total Return Portfolio - Service Class                                                
2008   713   $11.54   to   $12.94   $8,589   5.66%   0.75%   to   1.35%   -1.54%   to   -0.92%
2007   386   $11.72   to   $13.06   $4,744   3.24%   0.75%   to   1.35%   7.92%   to   8.56%
2006   259   $10.86   to   $12.03   $2,982   1.65%   0.75%   to   1.35%   2.55%   to   3.26%
2005   247   $10.59   to   $11.65   $2,776   1.55%   0.75%   to   1.35%   0.76%   to   1.30%
2004   191   $10.51   to   $11.50   $2,116   -   0.75%   to   1.35%   2.94%   to   3.51%
ING Solution 2015 Portfolio - Service Class                                                
2008   1,280   $8.68   to   $8.88   $11,249   1.89%   0.75%   to   1.35%   -27.91%   to   -27.39%
2007   766   $12.04   to   $12.23   $9,290   0.51%   0.75%   to   1.35%   3.26%   to   3.82%
2006   278   $11.66   to   $11.78   $3,262   0.13%   0.75%   to   1.35%   9.54%   to   9.89%
2005   34   $10.69   to   $10.72   $363   (b)   0.75%   to   1.10%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Solution 2025 Portfolio - Service Class                                                
2008   1,108   $8.15   to   $8.34   $9,138   1.46%   0.75%   to   1.35%   -34.80%   to   -34.33%
2007   516   $12.50   to   $12.70   $6,508   0.38%   0.75%   to   1.35%   3.22%   to   3.84%
2006   207   $12.11   to   $12.23   $2,527   0.07%   0.75%   to   1.35%   11.79%
2005   4       $10.94       $47   (b)       0.75%           (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Solution 2035 Portfolio - Service Class                                                
2008   980   $8.04   to   $8.22   $7,954   1.64%   0.75%   to   1.35%   -37.82%   to   -37.44%
2007   595   $12.93   to   $13.14   $7,753   0.41%   0.75%   to   1.35%   3.86%   to   4.45%
2006   126   $12.45   to   $12.58   $1,583   0.10%   0.75%   to   1.35%   13.00%   to   13.33%
2005   2   $11.08   to   $11.10   $19   (b)   0.75%   to   1.00%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
 
 
 
 
            303                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Solution 2045 Portfolio - Service Class                                                
2008   153   $7.92   to   $8.10   $1,225   1.36%   0.75%   to   1.35%   -40.67%   to   -40.27%
2007   84   $13.35   to   $13.56   $1,135   0.14%   0.75%   to   1.35%   4.52%   to   4.95%
2006   24   $12.82   to   $12.92   $312   -   0.75%   to   1.20%   13.91%
2005   -       $11.29       $5   (b)       1.00%           (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Solution Income Portfolio - Service Class                                                
2008   581   $9.31   to   $9.52   $5,469   2.11%   0.75%   to   1.35%   -17.76%   to   -17.22%
2007   408   $11.32   to   $11.50   $4,657   0.65%   0.75%   to   1.35%   4.03%   to   4.36%
2006   52   $10.93   to   $11.02   $566   (c)   0.75%   to   1.20%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING T. Rowe Price Diversified Mid Cap Growth                                                
Portfolio - Service Class                                                
2008   339   $7.65   to   $9.46   $3,090   0.06%   0.75%   to   1.35%   -44.03%   to   -43.68%
2007   204   $13.63   to   $16.84   $3,215   -   0.75%   to   1.35%   11.42%   to   12.17%
2006   152   $12.20   to   $15.06   $2,030   -   0.75%   to   1.35%   7.51%   to   8.10%
2005   59   $11.39   to   $13.96   $729   -   0.75%   to   1.35%   7.54%   to   8.20%
2004   46   $10.61   to   $12.94   $529   -   0.75%   to   1.35%   7.07%   to   7.72%
ING T. Rowe Price Growth Equity Portfolio - Service                                                
Class                                                
2008   5,066   $5.66   to   $9.09   $30,425   1.09%   0.75%   to   2.60%   -43.72%   to   -42.73%
2007   3,334   $10.10   to   $15.93   $35,823   0.14%   0.75%   to   2.45%   8.14%   to   8.79%
2006   320   $12.30   to   $14.68   $4,288   -   0.75%   to   1.35%   11.54%   to   12.19%
2005   282   $11.01   to   $13.12   $3,308   0.45%   0.75%   to   1.35%   4.50%   to   5.08%
2004   268   $10.51   to   $12.51   $2,982   0.04%   0.75%   to   1.35%   8.43%   to   8.92%
ING Templeton Foreign Equity Portfolio - Service Class                                                
2008   21,711   $5.97   to   $8.02   $159,726   3.32%   0.75%   to   2.60%   -42.17%   to   -41.17%
2007   8,749   $12.45   to   $13.64   $110,579   1.24%   0.95%   to   2.60%   12.26%   to   14.14%
2006   2,262   $11.09   to   $11.95   $25,226   (c)   0.95%   to   2.60%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
 
 
 
            304                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Thornburg Value Portfolio - Initial Class                                                
2008   188   $5.99   to   $8.72   $1,193   0.52%   0.95%   to   2.10%   -41.01%   to   -40.35%
2007   247   $10.15   to   $14.66   $2,633   0.44%   0.95%   to   2.10%   4.98%   to   6.18%
2006   331   $9.34   to   $13.84   $3,324   0.48%   0.95%   to   2.55%   13.90%   to   15.78%
2005   389   $8.20   to   $11.99   $3,383   0.85%   0.95%   to   2.55%   -0.97%   to   0.57%
2004   455   $8.28   to   $11.96   $3,938   0.46%   0.95%   to   2.55%   9.96%   to   11.88%
ING Thornburg Value Portfolio - Service Class                                                
2008   679   $6.97   to   $9.18   $4,948   0.10%   0.75%   to   2.35%   -41.30%   to   -40.37%
2007   1,107   $11.74   to   $15.42   $13,460   0.75%   0.75%   to   2.35%   4.49%   to   6.20%
2006   592   $11.09   to   $14.56   $6,794   0.02%   0.75%   to   2.35%   15.13%   to   15.68%
2005   27   $9.76   to   $12.62   $277   0.55%   0.75%   to   1.20%   0.08%   to   0.51%
2004   42   $9.71   to   $12.59   $444   0.24%   0.75%   to   1.20%   11.51%   to   11.74%
ING UBS U.S. Large Cap Equity Portfolio - Service                                                
Class                                                
2008   796   $7.16   to   $9.25   $6,145   1.56%   0.75%   to   2.35%   -41.41%   to   -40.47%
2007   1,086   $12.22   to   $15.57   $14,104   0.67%   0.75%   to   2.45%   -1.60%   to   0.16%
2006   1,739   $12.40   to   $15.59   $22,611   0.48%   0.75%   to   2.60%   11.39%   to   13.42%
2005   628   $11.02   to   $13.77   $7,228   0.51%   0.75%   to   2.60%   6.66%   to   8.23%
2004   61   $10.22   to   $12.76   $674   -   0.75%   to   2.20%   13.09%   to   13.77%
ING Van Kampen Comstock Portfolio - Service Class                                                
2008   16,491   $6.55   to   $9.57   $135,204   3.99%   0.75%   to   2.60%   -38.19%   to   -36.94%
2007   16,860   $10.78   to   $15.22   $221,984   1.25%   0.75%   to   2.60%   -4.83%   to   -3.00%
2006   15,954   $11.25   to   $15.73   $219,324   0.70%   0.75%   to   2.60%   12.87%   to   14.96%
2005   13,926   $10.31   to   $13.71   $168,923   0.51%   0.75%   to   2.60%   0.81%   to   2.74%
2004   8,544   $11.02   to   $13.39   $103,284   -   0.75%   to   2.60%   13.74%   to   15.84%
ING Van Kampen Equity and Income Portfolio -                                                
Initial Class                                                
2008   221   $9.34   to   $9.55   $2,076   5.06%   0.75%   to   1.35%   -24.43%   to   -23.96%
2007   283   $12.36   to   $12.56   $3,542   2.47%   0.75%   to   1.35%   2.15%   to   2.78%
2006   321   $12.10   to   $12.22   $3,913   1.93%   0.75%   to   1.35%   11.21%   to   11.80%
2005   380   $10.88   to   $10.93   $4,151   (b)   0.75%   to   1.35%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
 
 
 
            305                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Van Kampen Equity and Income Portfolio -                                                
Service Class                                                
2008   18,391   $7.23   to   $11.55   $169,926   7.22%   0.75%   to   2.60%   -25.55%   to   -24.14%
2007   8,181   $9.66   to   $15.26   $102,113   1.91%   0.75%   to   2.60%   0.59%   to   2.49%
2006   5,017   $11.82   to   $14.92   $61,397   2.21%   0.75%   to   2.60%   9.47%   to   11.56%
2005   3,123   $10.77   to   $13.41   $34,098   -   0.75%   to   2.60%   6.31%   to   7.00%
2004   23   $10.37   to   $12.57   $256   0.52%   0.75%   to   1.35%   9.16%   to   9.79%
ING VP Strategic Allocation Conservative Portfolio -                                                
Class S                                                
2008   103   $11.17   to   $11.42   $1,170   4.28%   0.75%   to   1.35%   -24.93%   to   -24.47%
2007   96   $14.88   to   $15.12   $1,445   2.50%   0.75%   to   1.35%   4.26%   to   4.71%
2006   50   $14.33   to   $14.44   $717   1.55%   0.75%   to   1.20%   7.07%   to   7.36%
2005   9   $13.43   to   $13.45   $118   (b)   0.75%   to   1.10%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING VP Strategic Allocation Growth Portfolio - Class S                                                
2008   45   $11.24   to   $11.49   $512   3.10%   0.75%   to   1.35%   -36.98%   to   -36.69%
2007   25   $17.93   to   $18.15   $455   1.31%   0.75%   to   1.20%   3.52%   to   3.95%
2006   18   $17.32   to   $17.46   $308   0.48%   0.75%   to   1.20%   11.65%   to   12.07%
2005   2   $15.54   to   $15.58   $29   (b)   0.75%   to   1.10%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING VP Strategic Allocation Moderate Portfolio - Class S                                            
2008   50   $11.20   to   $11.46   $573   3.34%   0.75%   to   1.35%   -31.58%   to   -31.09%
2007   52   $16.37   to   $16.63   $862   2.06%   0.75%   to   1.35%   3.87%   to   4.46%
2006   44   $15.76   to   $15.92   $693   1.01%   0.75%   to   1.35%   9.29%   to   9.94%
2005   25   $14.42   to   $14.48   $362   (b)   0.75%   to   1.35%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING VP Growth and Income Portfolio - Class I                                                
2008   15   $6.12   to   $6.14   $90   1.67%   1.25%   to   1.40%   -38.55%   to   -38.35%
2007   15       $9.96       $150   (d)   1.25%   to   1.40%       (d)    
2006   (d)       (d)       (d)   (d)       (d)           (d)    
2005   (d)       (d)       (d)   (d)       (d)           (d)    
2004   (d)       (d)       (d)   (d)       (d)           (d)    
 
 
 
            306                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING VP Growth and Income Portfolio - Class S                                                
2008   44,763   $6.02   to   $10.33   $274,706   3.86%   0.50%   to   2.60%   -39.13%   to   -38.33%
2007   488   $9.94   to   $16.75   $7,420   1.64%   0.75%   to   2.20%   5.71%   to   6.35%
2006   310   $14.70   to   $15.75   $4,758   1.29%   0.75%   to   1.35%   12.40%   to   12.90%
2005   177   $13.15   to   $13.95   $2,431   1.09%   0.75%   to   1.20%   6.65%   to   7.14%
2004   139   $12.33   to   $13.02   $1,776   2.11%   0.75%   to   1.20%   6.85%   to   7.25%
ING GET U.S. Core Portfolio - Series 3                                                
2008   3,905   $9.43   to   $10.24   $38,784   2.18%   1.45%   to   3.05%   -6.45%   to   -4.83%
2007   4,702   $10.08   to   $10.85   $49,380   2.45%   1.25%   to   3.05%   1.82%   to   3.73%
2006   6,719   $9.90   to   $10.46   $68,420   2.52%   1.25%   to   3.05%   3.13%   to   5.02%
2005   9,762   $9.60   to   $9.96   $95,457   1.98%   1.25%   to   3.05%   -2.24%   to   -0.50%
2004   14,042   $9.82   to   $10.01   $139,161   -   1.25%   to   3.05%   -1.70%   to   -0.10%
ING GET U.S. Core Portfolio - Series 4                                                
2008   2,645   $9.70   to   $10.49   $26,980   2.85%   1.45%   to   3.10%   -8.66%   to   -7.09%
2007   3,250   $10.62   to   $11.38   $35,860   2.92%   1.25%   to   3.10%   0.47%   to   2.43%
2006   4,614   $10.56   to   $11.11   $49,961   2.65%   1.25%   to   3.10%   4.64%   to   6.52%
2005   5,905   $10.09   to   $10.43   $60,557   1.62%   1.25%   to   3.10%   -1.85%
2004   7,380   $10.28   to   $10.43   $76,373   (a)   1.25%   to   3.10%       (a)    
ING GET U.S. Core Portfolio - Series 5                                                
2008   1,627   $10.11   to   $10.70   $16,931   1.51%   1.45%   to   2.70%   -9.81%   to   -8.70%
2007   2,032   $11.19   to   $11.72   $23,310   1.78%   1.45%   to   2.75%   -0.62%   to   0.69%
2006   2,507   $11.17   to   $11.64   $28,664   1.86%   1.25%   to   3.10%   7.92%   to   9.61%
2005   3,529   $10.35   to   $10.66   $37,081   0.97%   1.25%   to   3.10%   -0.48%   to   1.43%
2004   4,121   $10.40   to   $10.51   $43,088   (a)   1.25%   to   3.10%       (a)    
ING GET U.S. Core Portfolio - Series 6                                                
2008   1,829   $9.75   to   $10.46   $18,708   1.91%   1.45%   to   3.10%   -9.05%   to   -7.52%
2007   2,246   $10.72   to   $11.39   $24,947   2.46%   1.25%   to   3.10%   0.19%   to   1.97%
2006   2,775   $10.70   to   $11.17   $30,412   2.27%   1.25%   to   3.10%   7.10%   to   9.08%
2005   4,173   $9.99   to   $10.24   $42,244   0.39%   1.25%   to   3.10%   -0.50%   to   1.49%
2004   5,992   $10.04   to   $10.09   $60,314   (a)   1.25%   to   3.10%       (a)    
 
 
 
 
            307                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING GET U.S. Core Portfolio - Series 7                                                
2008   1,169   $9.84   to   $10.45   $11,948   1.97%   1.45%   to   2.95%   -7.69%   to   -6.36%
2007   1,480   $10.62   to   $11.23   $16,210   2.54%   1.25%   to   3.10%   0.09%   to   2.00%
2006   2,117   $10.60   to   $11.01   $22,891   2.17%   1.25%   to   3.10%   6.85%   to   8.90%
2005   3,676   $9.92   to   $10.11   $36,810   0.14%   1.25%   to   3.10%   -0.30%   to   0.90%
2004   127   $9.99   to   $10.00   $1,268   (a)   0.95%   to   2.20%       (a)    
ING GET U.S. Core Portfolio - Series 8                                                
2008   725   $9.98   to   $10.48   $7,399   1.87%   1.25%   to   2.50%   -8.86%   to   -7.58%
2007   896   $10.77   to   $11.34   $9,955   2.27%   1.25%   to   3.10%   0.47%   to   2.35%
2006   998   $10.72   to   $11.08   $10,909   1.75%   1.25%   to   3.10%   7.31%   to   9.27%
2005   1,504   $9.99   to   $10.14   $15,156   (b)   1.25%   to   3.10%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING GET U.S. Core Portfolio - Series 9                                                
2008   596   $9.92   to   $10.38   $6,080   2.19%   1.45%   to   2.70%   -7.72%   to   -6.49%
2007   686   $10.65   to   $11.10   $7,521   2.59%   1.45%   to   3.10%   0.76%   to   2.40%
2006   940   $10.57   to   $10.88   $10,101   1.35%   1.25%   to   3.10%   6.77%   to   8.80%
2005   1,656   $9.90   to   $10.00   $16,493   (b)   1.25%   to   3.10%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING GET U.S. Core Portfolio - Series 10                                                
2008   501   $9.95   to   $10.52   $5,125   2.53%   1.25%   to   2.90%   -6.66%   to   -5.05%
2007   562   $10.66   to   $11.08   $6,095   2.00%   1.25%   to   2.90%   0.57%   to   2.31%
2006   805   $10.57   to   $10.83   $8,614   0.73%   1.25%   to   3.10%   6.44%   to   8.41%
2005   1,255   $9.93   to   $9.99   $12,504   (b)   1.25%   to   3.10%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING GET U.S. Core Portfolio - Series 11                                                
2008   742   $10.14   to   $10.61   $7,708   2.42%   1.45%   to   2.95%   -2.31%   to   -0.93%
2007   836   $10.35   to   $10.71   $8,827   3.25%   1.45%   to   3.10%   -1.05%   to   0.56%
2006   1,056   $10.46   to   $10.65   $11,153   0.27%   1.45%   to   3.10%   5.29%   to   6.29%
2005   148   $10.01   to   $10.02   $1,482   (b)   0.95%   to   1.90%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
 
 
 
 
            308                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING GET U.S. Core Portfolio - Series 12                                                
2008   268   $10.08   to   $10.55   $2,781   1.71%   1.45%   to   3.05%   -9.03%   to   -7.54%
2007   355   $11.07   to   $11.41   $4,014   1.30%   1.45%   to   3.10%   -0.18%   to   1.51%
2006   426   $11.09   to   $11.24   $4,768   (c)   1.45%   to   3.10%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING GET U.S. Core Portfolio - Series 13                                                
2008   2,204   $10.16   to   $10.54   $23,085   2.18%   1.45%   to   2.90%   -0.59%   to   0.86%
2007   3,493   $10.19   to   $10.45   $36,193   0.65%   1.45%   to   3.10%   1.70%   to   3.36%
2006   5,273   $10.02   to   $10.11   $53,117   (c)   1.45%   to   3.10%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ING GET U.S. Core Portfolio - Series 14                                                
2008   7,383   $10.10   to   $10.44   $76,227   1.88%   1.45%   to   3.05%   -0.10%   to   1.56%
2007   8,660   $10.11   to   $10.28   $88,486   (d)   1.45%   to   3.10%       (d)    
2006   (d)       (d)       (d)   (d)       (d)           (d)    
2005   (d)       (d)       (d)   (d)       (d)           (d)    
2004   (d)       (d)       (d)   (d)       (d)           (d)    
ING BlackRock Global Science and Technology                                                
Portfolio - Class S                                                
2008   13,408   $6.45   to   $9.58   $87,426   -   0.75%   to   2.60%   -40.81%   to   -40.46%
2007   71   $15.83   to   $16.09   $1,140   -   0.75%   to   1.35%   17.26%   to   17.96%
2006   41   $13.50   to   $13.64   $550   -   0.75%   to   1.35%   5.30%   to   5.98%
2005   6   $12.82   to   $12.87   $78   (b)   0.75%   to   1.35%       (e)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
ING Global Equity Option Portfolio - Class S                                                
2008   261   $7.83   to   $7.86   $2,044   (e)   1.15%   to   2.20%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
 
 
 
 
            309                                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING International Index Portfolio - Class S                                                
2008   998   $6.02   to   $6.09   $6,041   (e)   0.95%   to   2.35%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING Lehman Brothers U.S. Aggregate Bond Index®                                                
Portfolio - Class S                                                
2008   17,418   $10.11   to   $10.41   $177,261   (e)   0.75%   to   2.60%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING Opportunistic Large Cap Growth Portfolio - Class S                                                
2008      45   $6.60   to   $8.56   $350   0.41%   0.75%   to   1.35%   -44.95%   to   -44.64%
2007      46   $11.96   to   $15.50   $629   0.22%   0.75%   to   1.35%   15.96%   to   16.62%
2006      24   $10.47   to   $13.32   $273   -   0.75%   to   1.35%   1.08%   to   1.65%
2005      26   $10.30   to   $13.13   $285   0.31%   0.75%   to   1.35%   7.60%   to   8.19%
2004      36   $9.42   to   $12.16   $356   -   0.75%   to   1.35%   5.49%   to   6.25%
ING Opportunistic Large Cap Value Portfolio - Class S                                                
2008   1,626   $6.16   to   $9.78   $11,563   1.77%   0.75%   to   2.55%   -37.46%   to   -36.28%
2007   2,032   $9.85   to   $15.39   $22,941   1.47%   0.75%   to   2.60%   0.08%   to   2.03%
2006   2,433   $9.83   to   $15.12   $27,029   1.40%   0.75%   to   2.60%   12.73%   to   14.92%
2005   2,925   $8.72   to   $13.20   $28,537   0.36%   0.75%   to   2.60%   4.06%   to   5.94%
2004   389   $8.38   to   $12.48   $3,478   0.77%   0.75%   to   2.55%   7.16%   to   9.05%
ING Russell™ Global Large Cap Index 85% Portfolio -                                                
Class S                                                
2008   335   $8.12   to   $8.15   $2,725   (e)   1.15%   to   2.35%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
 
 
 
            310                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING Russell™ Large Cap Index Portfolio - Class S                                                
         2008   3,418   $6.66   to   $6.73   $22,903   (e)   0.80%   to   2.35%       (e)    
         2007   (e)       (e)       (e)   (e)       (e)           (e)    
         2006   (e)       (e)       (e)   (e)       (e)           (e)    
         2005   (e)       (e)       (e)   (e)       (e)           (e)    
         2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING Russell™ Mid Cap Index Portfolio - Class S                                                
         2008   3,704   $6.04   to   $6.15   $22,649   (e)   0.80%   to   2.35%       (e)    
         2007   (e)       (e)       (e)   (e)       (e)           (e)    
         2006   (e)       (e)       (e)   (e)       (e)           (e)    
         2005   (e)       (e)       (e)   (e)       (e)           (e)    
         2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING Russell™ Small Cap Index Portfolio - Class S                                                
         2008   10,143   $6.91   to   $7.00   $70,527   (e)   0.80%   to   2.45%       (e)    
         2007   (e)       (e)       (e)   (e)       (e)           (e)    
         2006   (e)       (e)       (e)   (e)       (e)           (e)    
         2005   (e)       (e)       (e)   (e)       (e)           (e)    
         2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING VP Index Plus LargeCap Portfolio - Class S                                                
         2008   24,189   $6.45   to   $9.49   $174,373   2.25%   0.75%   to   2.60%   -39.00%   to   -37.84%
         2007   25,928   $10.51   to   $15.31   $303,196   0.68%   0.75%   to   2.60%   2.05%   to   3.98%
         2006   18,042   $10.70   to   $14.76   $204,688   0.88%   0.75%   to   2.60%   11.30%   to   13.44%
         2005   17,237   $9.61   to   $13.05   $173,748   1.22%   0.75%   to   2.60%   2.43%   to   4.30%
         2004   13,139   $9.38   to   $12.53   $128,155   1.02%   0.75%   to   2.60%   7.53%   to   9.42%
ING VP Index Plus MidCap Portfolio - Class S                                                
         2008   13,369   $6.31   to   $10.42   $115,644   1.19%   0.75%   to   2.60%   -39.37%   to   -38.21%
         2007   16,517   $10.34   to   $16.90   $232,853   0.48%   0.75%   to   2.60%   2.49%   to   4.49%
         2006   16,098   $10.83   to   $16.21   $220,692   0.44%   0.75%   to   2.60%   6.32%   to   8.27%
         2005   13,837   $11.08   to   $15.01   $177,634   0.39%   0.75%   to   2.60%   7.93%   to   10.02%
         2004   6,532   $10.84   to   $13.68   $79,289   0.30%   0.75%   to   2.60%   13.39%   to   15.55%
 
 
 
 
            311                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING VP Index Plus SmallCap Portfolio - Class S                                                
2008   10,297   $6.26   to   $10.49   $88,612   0.67%   0.75%   to   2.60%   -35.36%   to   -34.20%
2007   13,011   $9.63   to   $15.97   $171,833   0.13%   0.75%   to   2.60%   -9.01%   to   -7.17%
2006   13,635   $11.83   to   $17.26   $197,450   0.25%   0.75%   to   2.60%   10.55%   to   12.65%
2005   11,068   $10.68   to   $15.36   $144,771   0.27%   0.75%   to   2.60%   4.63%   to   6.56%
2004   5,386   $11.23   to   $14.45   $68,985   0.08%   0.75%   to   2.60%   18.63%   to   20.80%
ING VP Small Company Portfolio - Class S                                                
2008   5,881   $7.09   to   $11.93   $43,479   0.10%   0.75%   to   2.55%   -32.17%   to   -31.74%
2007   166   $15.12   to   $17.52   $2,803   -   0.75%   to   1.35%   4.23%   to   4.89%
2006   135   $14.46   to   $16.75   $2,151   0.16%   0.75%   to   1.35%   14.53%   to   15.18%
2005   94   $12.60   to   $14.57   $1,294   0.02%   0.75%   to   1.35%   8.56%   to   9.23%
2004   101   $11.58   to   $13.37   $1,267   0.28%   0.75%   to   1.35%   12.51%   to   13.26%
ING WisdomTreeSM Global High-Yielding Equity                                                
Index Portfolio - Class S                                                
2008   23,942   $6.00   to   $6.12   $145,051   (e)   0.75%   to   2.35%       (e)    
2007   (e)       (e)       (e)   (e)       (e)           (e)    
2006   (e)       (e)       (e)   (e)       (e)           (e)    
2005   (e)       (e)       (e)   (e)       (e)           (e)    
2004   (e)       (e)       (e)   (e)       (e)           (e)    
ING VP International Value Portfolio - Class S                                                
2008   740   $10.99   to   $12.29   $8,896   2.78%   0.75%   to   1.35%   -43.09%   to   -42.76%
2007   632   $19.26   to   $21.52   $13,183   1.57%   0.75%   to   1.35%   11.53%   to   12.21%
2006   380   $17.22   to   $19.23   $6,945   1.86%   0.75%   to   1.35%   27.09%   to   27.86%
2005   199   $13.52   to   $15.08   $2,846   1.87%   0.75%   to   1.35%   7.68%   to   8.21%
2004   94   $12.53   to   $13.97   $1,244   0.90%   0.75%   to   1.20%   15.70%   to   16.13%
ING VP MidCap Opportunities Portfolio - Class S                                                
2008   34,217   $6.16   to   $11.41   $223,352   -   0.50%   to   2.45%   -39.19%   to   -38.22%
2007   2,454   $10.12   to   $18.51   $26,412   -   0.75%   to   2.35%   22.47%   to   24.51%
2006   3,017   $8.25   to   $14.90   $25,935   -   0.75%   to   2.35%   5.13%   to   6.84%
2005   3,860   $7.84   to   $13.99   $31,259   -   0.75%   to   2.35%   7.69%   to   9.33%
2004   4,282   $7.28   to   $12.83   $31,955   -   0.75%   to   2.25%   10.03%   to   10.29%
 
 
 
 
            312                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
ING VP SmallCap Opportunities Portfolio - Class S                                                
2008   9,121   $5.31   to   $11.04   $51,591   -   0.75%   to   2.45%   -36.17%   to   -35.11%
2007   11,476   $8.31   to   $17.06   $100,307   -   0.75%   to   2.60%   7.00%   to   9.00%
2006   14,427   $7.74   to   $15.69   $116,669   -   0.75%   to   2.60%   9.43%   to   11.49%
2005   15,436   $7.05   to   $14.11   $112,432   -   0.75%   to   2.60%   6.47%   to   8.14%
2004   15,335   $6.62   to   $13.09   $103,698   -   0.75%   to   2.25%   7.47%   to   9.03%
ING VP Balanced Portfolio - Class S                                                
2008   724   $7.46   to   $10.25   $6,399   3.34%   0.75%   to   2.55%   -30.08%   to   -28.87%
2007   814   $10.66   to   $14.41   $9,901   2.48%   0.75%   to   2.60%   2.60%   to   4.57%
2006   908   $10.39   to   $13.78   $10,361   1.04%   0.75%   to   2.60%   8.13%   to   8.76%
2005   254   $12.18   to   $12.67   $3,170   2.07%   0.75%   to   1.35%   2.61%   to   3.26%
2004   259   $11.87   to   $12.27   $3,120   2.07%   0.75%   to   1.35%   7.70%   to   8.20%
ING VP Intermediate Bond Portfolio - Class S                                                
2008   104,672   $8.83   to   $11.69   $1,122,300   6.23%   0.75%   to   2.60%   -11.04%   to   -9.31%
2007   88,836   $10.20   to   $12.89   $1,068,161   4.53%   0.75%   to   2.60%   2.96%   to   4.88%
2006   53,039   $10.12   to   $12.29   $616,032   5.04%   0.75%   to   2.60%   1.10%   to   3.02%
2005   26,206   $10.01   to   $11.93   $300,774   3.92%   0.75%   to   2.60%   0.71%   to   2.14%
2004   17,871   $10.67   to   $11.68   $203,365   8.87%   0.75%   to   2.25%   2.19%   to   3.82%
Legg Mason Partners Variable International All Cap                                                
Opportunity Portfolio                                                
2008   4   $10.31   to   $10.52   $39   1.40%   1.25%   to   1.40%   -44.18%   to   -44.10%
2007   6   $18.47   to   $18.82   $104   0.83%   1.25%   to   1.40%   4.88%   to   4.96%
2006   8   $17.61   to   $17.93   $136   1.91%   1.25%   to   1.40%   24.10%   to   24.34%
2005   10   $14.19   to   $14.42   $144   1.12%   1.25%   to   1.40%   10.17%   to   10.33%
2004   17   $12.88   to   $13.07   $214   0.92%   1.25%   to   1.40%   16.14%   to   16.38%
Legg Mason Partners Variable Investors Portfolio                                                
2008   12   $6.17   to   $6.19   $73   0.83%   1.25%   to   1.40%   -36.59%   to   -36.45%
2007   17   $9.73   to   $9.74   $169   (d)   1.25%   to   1.40%       (d)    
2006   (d)       (d)       (d)   (d)       (d)           (d)    
2005   (d)       (d)       (d)   (d)       (d)           (d)    
2004   (d)       (d)       (d)   (d)       (d)           (d)    
 
 
 
 
            313                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
Legg Mason Partners Variable High Income Portfolio                                                
2008   4   $11.67   to   $11.92   $51   9.94%   1.25%   to   1.40%   -30.99%   to   -30.86%
2007   6   $16.91   to   $17.24   $110   8.07%   1.25%   to   1.40%   -1.11%   to   -0.92%
2006   8   $17.10   to   $17.40   $138   6.49%   1.25%   to   1.40%   9.40%   to   9.57%
2005   12   $15.63   to   $15.88   $185   7.11%   1.25%   to   1.40%   1.23%   to   1.34%
2004   17   $15.44   to   $15.67   $265   7.33%   1.25%   to   1.40%   8.89%   to   9.05%
Legg Mason Partners Variable Money Market Portfolio                                                
2008   2   $13.54   $23   3.17%              1.40%   1.12%
2007   12   $13.39   $166   2.12%              1.40%   3.48%
2006   2   $12.94   $23   4.49%              1.40%   3.19%
2005   2   $12.54   $24   3.31%              1.40%   1.37%
2004   3   $12.37   $37   -              1.40%   -0.56%
Oppenheimer Main Street Small Cap Fund®/VA -                                                
Service Class                                                
2008   71   $11.38   to   $11.63   $822   0.28%   0.75%   to   1.35%   -38.82%   to   -38.47%
2007   70   $18.60   to   $18.90   $1,323   0.19%   0.75%   to   1.35%   -2.72%   to   -2.17%
2006   43   $19.12   to   $19.32   $822   0.01%   0.75%   to   1.35%   13.41%   to   13.85%
2005   5   $16.93   to   $16.97   $91   (b)   0.75%   to   1.10%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
PIMCO Real Return Portfolio - Administrative Class                                                
2008   745   $9.95   to   $10.18   $7,515   4.22%   0.75%   to   1.35%   -8.29%   to   -7.71%
2007   222   $10.85   to   $11.03   $2,430   4.24%   0.75%   to   1.35%   9.05%   to   9.64%
2006   130   $9.95   to   $10.06   $1,301   4.45%   0.75%   to   1.35%   -0.40%   to   0.10%
2005   35   $10.02   to   $10.05   $352   (b)   0.75%   to   1.20%       (b)    
2004   (b)       (b)       (b)   (b)       (b)           (b)    
Pioneer Equity Income VCT Portfolio - Class II                                                
2008   1,213   $9.87   to   $11.28   $13,323   2.72%   0.75%   to   1.35%   -31.41%   to   -30.97%
2007   1,031   $14.36   to   $16.39   $16,338   2.74%   0.75%   to   1.35%   -0.80%   to   -0.20%
2006   551   $14.44   to   $16.47   $8,556   2.31%   0.75%   to   1.35%   20.52%   to   21.20%
2005   272   $11.95   to   $13.62   $3,429   2.17%   0.75%   to   1.35%   4.09%   to   4.66%
2004   139   $11.45   to   $13.04   $1,659   1.95%   0.75%   to   1.35%   14.47%   to   15.22%
 
 
 
 
            314                                

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
Pioneer Small Cap Value VCT Portfolio - Class II                                                
2008   401   $5.78   to   $6.04   $2,388   0.25%   0.95%   to   2.60%   -39.73%   to   -38.74%
2007   499   $9.59   to   $9.86   $4,873   0.52%   0.95%   to   2.60%   -9.61%   to   -8.02%
2006   633   $10.61   to   $10.72   $6,765   (c)   0.95%   to   2.60%       (c)    
2005   (c)       (c)       (c)   (c)       (c)           (c)    
2004   (c)       (c)       (c)   (c)       (c)           (c)    
ProFund VP Bull                                                
2008   2,280   $5.91   to   $8.22   $14,046   -   0.95%   to   2.60%   -39.27%   to   -38.28%
2007   2,986   $9.60   to   $13.43   $30,062   0.44%   0.90%   to   2.60%   0.85%   to   2.61%
2006   5,805   $9.42   to   $13.20   $57,596   0.22%   0.90%   to   2.60%   10.75%   to   12.62%
2005   8,379   $8.50   to   $11.82   $74,309   0.22%   0.90%   to   2.60%   0.12%   to   1.78%
2004   12,090   $8.49   to   $11.71   $106,145   -   0.90%   to   2.55%   6.22%   to   7.89%
ProFund VP Europe 30                                                
2008   1,401   $6.72   to   $10.32   $9,835   2.06%   0.90%   to   2.35%   -45.34%   to   -44.50%
2007   1,835   $12.05   to   $18.75   $23,421   2.03%   0.90%   to   2.60%   11.56%   to   13.54%
2006   2,641   $10.79   to   $16.66   $29,949   0.34%   0.90%   to   2.60%   14.46%   to   16.50%
2005   3,806   $9.42   to   $14.43   $37,372   0.13%   0.90%   to   2.60%   5.29%   to   7.16%
2004   4,033   $8.94   to   $13.58   $37,237   0.12%   0.90%   to   2.60%   11.47%   to   13.25%
ProFund VP Rising Rates Opportunity                                                
2008   2,870   $4.43   to   $5.47   $13,199   5.38%   0.95%   to   2.60%   -39.61%   to   -38.60%
2007   4,013   $7.26   to   $9.01   $30,230   5.33%   0.95%   to   2.60%   -7.67%   to   -6.07%
2006   5,900   $7.81   to   $9.72   $47,606   2.01%   0.95%   to   2.60%   7.34%   to   9.15%
2005   6,792   $7.27   to   $9.02   $50,608   -   0.95%   to   2.60%   -10.28%   to   -8.82%
2004   6,392   $8.10   to   $8.66   $52,378   -   0.95%   to   2.60%   -13.18%   to   -11.73%
Wells Fargo Advantage Asset Allocation Fund                                                
2008   210   $8.28   to   $9.65   $1,989   2.43%   1.40%   to   2.20%   -30.65%   to   -30.12%
2007   241   $11.94   to   $13.81   $3,282   2.27%   1.40%   to   2.20%   5.20%   to   6.07%
2006   268   $11.35   to   $13.02   $3,422   2.29%   1.40%   to   2.20%   9.75%   to   10.62%
2005   285   $10.34   to   $11.77   $3,308   2.45%   1.40%   to   2.20%   2.83%   to   3.52%
2004   166   $11.27   to   $11.37   $1,880   2.52%   1.40%   to   2.10%       7.21%    
 
 
 
 
            315                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
Wells Fargo Advantage C&B Large Cap Value Fund                                                
2008   27   $7.50   to   $9.01   $233   1.39%   1.40%   to   2.20%   -36.44%   to   -35.92%
2007   36   $11.80   to   $14.06   $489   1.14%   1.40%   to   2.20%   -3.36%   to   -2.56%
2006   40   $12.21   to   $14.43   $560   1.46%   1.40%   to   2.20%   19.47%   to   20.35%
2005   48   $10.22   to   $11.99   $568   0.81%   1.40%   to   2.20%   0.94%   to   1.45%
2004   18   $11.69   to   $11.75   $211   (a)   1.65%   to   2.10%       (a)    
Wells Fargo Advantage Equity Income Fund                                                
2008   60   $7.56   to   $8.97   $529   1.96%   1.65%   to   2.20%   -37.83%   to   -37.49%
2007   71   $12.16   to   $14.35   $1,004   1.52%   1.65%   to   2.20%   0.50%   to   1.06%
2006   79   $12.10   to   $14.20   $1,105   1.53%   1.65%   to   2.20%   15.90%   to   16.68%
2005   84   $10.44   to   $12.17   $1,007   1.56%   1.65%   to   2.20%   3.17%   to   3.57%
2004   75   $11.68   to   $11.78   $882   1.79%   1.40%   to   2.10%       8.93%    
Wells Fargo Advantage Large Company Growth Fund                                                
2008   192   $6.53   to   $7.02   $1,308   0.25%   1.40%   to   2.20%   -40.34%   to   -39.85%
2007   236   $10.94   to   $11.67   $2,681   -   1.40%   to   2.20%   5.19%   to   6.09%
2006   267   $10.40   to   $11.00   $2,876   -   1.40%   to   2.20%   0.10%   to   0.92%
2005   289   $10.39   to   $10.90   $3,109   0.18%   1.40%   to   2.20%   3.47%   to   4.21%
2004   218   $10.37   to   $10.46   $2,266   -   1.40%   to   2.10%       1.27%    
Wells Fargo Advantage Money Market Fund                                                
2008   4   $10.46   to   $10.60   $43   2.35%   1.65%   to   1.90%   0.38%   to   0.66%
2007   12   $10.42   to   $10.53   $127   4.54%   1.65%   to   1.90%   2.66%   to   2.93%
2006   31   $10.08   to   $10.24   $314   4.30%   1.65%   to   2.20%   2.09%   to   2.71%
2005   78   $9.86   to   $10.03   $784   5.76%   1.65%   to   2.20%   0.41%   to   0.61%
2004   38   $9.82   to   $9.85   $369   (a)   1.90%   to   2.10%       (a)    
Wells Fargo Advantage Small Cap Growth Fund                                                
2008   44   $8.28   to   $9.82   $419   -   1.40%   to   2.20%   -42.74%   to   -42.24%
2007   53   $14.46   to   $17.00   $884   -   1.40%   to   2.20%   11.32%   to   12.21%
2006   61   $12.99   to   $15.15   $910   -   1.40%   to   2.20%   20.06%   to   21.01%
2005   63   $10.82   to   $12.52   $782   -   1.40%   to   2.20%   3.97%   to   4.77%
2004   48   $11.85   to   $11.95   $569   -   1.40%   to   2.10%   11.65%
 
 
 
 
            316                                    

ING USA ANNUITY AND LIFE INSURANCE COMPANY
SEPARATE ACCOUNT B
Notes to Financial Statements

                        Investment                        
    Units*   Unit Fair Value   Net Assets   Income   Expense RatioB   Total ReturnC
    (000's)   (lowest to highest)   (000's)   RatioA   (lowest to highest)   (lowest to highest)
Wells Fargo Advantage Total Return Bond Fund                                                
2008   93   $10.52   to   $11.34   $1,029   4.95%   1.40%   to   2.20%   0.10%   to   0.89%
2007   119   $10.51   to   $11.24   $1,314   4.61%   1.40%   to   2.20%   3.85%   to   4.75%
2006   130   $10.12   to   $10.73   $1,376   4.52%   1.40%   to   2.20%   1.61%   to   2.39%
2005   134   $9.96   to   $10.48   $1,391   4.11%   1.40%   to   2.20%   -0.29%   to   0.48%
2004   47   $10.35   to   $10.43   $485   (a)   1.40%   to   2.10%       (a)    

(a)   As investment Division was not available until 2004, this data is not meaningful and is therefore not presented.
(b)   As investment Division was not available until 2005, this data is not meaningful and is therefore not presented.
(c)   As investment Division was not available until 2006, this data is not meaningful and is therefore not presented.
(d)   As investment Division was not available until 2007, this data is not meaningful and is therefore not presented.
(e)   As investment Division was not available until 2008, 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, administrative and other charges,
    as defined in Note 5. 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.
 
*   Includes units for annuity contracts in payout beginning in 2006.
 
 
 
 
    317

PART C - OTHER INFORMATION

ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS

 Financial Statements: 
 (a)(1)                   Included in Part A: 
                   Condensed Financial Information 
(2)                   Included in Part B: 
                                            Financial Statements of ING USA Annuity and Life Insurance Company:
                   -           Report of Independent Registered Public Accounting Firm 
                   -           Statements of Operations for the years ended December 31, 2008, 2007, and 2006 
                   -           Balance Sheets as of December 31, 2008 and 2007 
                   -           Statements of Changes in Shareholder’s Equity for the years ended December 31, 
             2008, 2007, and 2006 
                   -           Statements of Cash Flows for the years ended December 31, 2008, 2007, and 2006 
                   -           Notes to Financial Statements 
                   Financial Statements of Separate Account B: 
                   -           Report of Independent Registered Public Accounting Firm 
                   -           Statements of Assets and Liabilities as of December 31, 2008 
                   -           Statements of Operations for the year ended December 31, 2008 
                   -           Statements of Changes in Net Assets for the years ended December 31, 2008 and 2007 
                   -           Notes to Financial Statements 
 
 
Exhibits:     
(b)     
(1)    Resolution of the board of directors of Depositor authorizing the establishment of the 
    Registrant, incorporated herein by reference to Post-Effective Amendment No. 29 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 30, 
    1999 (File Nos. 033-23351, 811-05626). 
 
(2)    Not applicable. 
 
(3)  a.  Distribution Agreement between the Depositor and Directed Services, Inc., 
incorporated herein by reference to Post-Effective Amendment No. 29 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 30, 
    1999 (File Nos. 033-23351, 811-05626). 
 
  b.  Form of Dealers Agreement, incorporated herein by reference to Post-Effective 
    Amendment No. 29 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 30, 1999 (File Nos. 033-23351, 811-05626). 
 
  c.  Organizational Agreement, incorporated herein by reference to Post-Effective 
    Amendment No. 29 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 30, 1999 (File Nos. 033-23351, 811-05626). 
 
  d.  Addendum to Organizational Agreement, incorporated herein by reference to Post- 
    Effective Amendment No. 29 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 30, 1999 (File Nos. 033-23351, 811-05626). 

  e.  Expense Reimbursement Agreement, incorporated herein by reference to Post- 
    Effective Amendment No. 29 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 30, 1999 (File Nos. 033-23351, 811-05626). 
 
  f.  Form of Assignment Agreement for Organizational Agreement, incorporated herein by 
    reference to Post-Effective Amendment No. 29 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 30, 1999 (File Nos. 033-23351, 811- 
    05626). 
 
  g.  Amendment to the Distribution Agreement between ING USA and Directed Services 
    Inc., 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, 811-05626). 
 
(4)  a.  Flexible Premium Deferred Variable Annuity Contract (IU-IA-4000), incorporated 
    herein by reference to an initial 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 September 22, 2008 (File Nos. 333-153622, 811-05626). 
 
  b.  Market Value Adjustment Fixed Interest Account Endorsement (IU-RA-4004), 
    incorporated herein by reference to an initial 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 September 22, 2008 (File Nos. 333-153622, 
    811-05626). 
 
  c.  Minimum Guaranteed Income Benefit Rider (IU-RA-4009), incorporated herein by 
    reference to an initial 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 September 22, 2008 (File Nos. 333-153622, 811-05626). 
 
  d.  Earnings Multiplier Death Benefit Rider (IU-RA-4005), incorporated herein by 
    reference to an initial 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 September 22, 2008 (File Nos. 333-153622, 811-05626). 
 
  e.  Guaranteed Standard Death Benefit and Transfer Rider (IU-RA-4006), incorporated 
    herein by reference to an initial 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 September 22, 2008 (File Nos. 333-153622, 811- 
    05626). 
 
  f.  Guaranteed Ratchet Death Benefit and Transfer Rider (IU-RA-4007), incorporated 
    herein by reference to an initial 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 September 22, 2008 (File Nos. 333-153622, 811-05626). 

  g.  Guaranteed Combination Death Benefit and Transfer Rider (IU-RA-4008), 
    incorporated herein by reference to an initial 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 September 22, 2008 (File Nos. 333-153622, 
    811-05626). 
 
  h.  Minimum Guaranteed Withdrawal Benefit Rider with Automatic Reset (ING LifePay 
    Plus) (IU-RA-3061), incorporated herein by reference to Post-Effective Amendment 
    No. 40 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 July 25, 2007 (File Nos. 333-28679, 811-05626). 
 
  i.  Minimum Guaranteed Withdrawal Benefit Rider with Automatic Reset (ING Joint 
    LifePay Plus) (IU-RA-3062), incorporated herein by reference to Post-Effective 
    Amendment No. 40 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 July 25, 2007 (File Nos. 333-28679, 811-05626). 
 
  j.  Combination Minimum Guaranteed Withdrawal Benefit and Death Benefit Rider (ING 
    LifePay Plus) (IU-RA-3077), incorporated herein by reference to Post-Effective 
    Amendment No. 43 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 7, 2008 (File Nos. 333-28755, 811-05626). 
 
  k.  Combination Minimum Guaranteed Withdrawal Benefit and Death Benefit Rider (ING 
    LifePay Plus) (IU-RA-3077), incorporated herein by reference to Post-Effective 
    Amendment No. 43 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 7, 2008 (File Nos. 333-28755, 811-05626). 
 
(5)  a.  Deferred Variable Annuity Application, (151279) (05-01-2009), incorporated herein 
    by reference to Post Effective Amendment No. 48 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 8, 2009 (File Nos. 333-28679, 
    811-05626). 
 
(6)  a.  Amendment to Articles of Incorporation Providing for the Name Change of Golden 
    American Life Insurance Company, dated (11/21/03), incorporated herein by reference 
    to Post-Effective Amendment No. 1 to a Registration Statement on Form S-1 for ING 
    USA Annuity and Life Insurance Company filed with the Securities and Exchange 
    Commission on April 9, 2007 (File No. 333-133076). 
 
  b.  Amendment to Articles of Incorporation Providing for the Change in Purpose and 
    Powers of ING USA Annuity and Life Insurance Company, dated (03/04/04), 
    incorporated herein by reference to Post-Effective Amendment No. 1 to a Registration 
    Statement on Form S-1 for ING USA Annuity and Life Insurance Company filed with 
    the Securities and Exchange Commission on April 9, 2007 (File No. 333-133076). 
 
  c.  Amended and Restated By-Laws of ING USA Annuity and Life Insurance Company, 
    dated (12/15/04), incorporated herein by reference to Post-Effective Amendment No. 1 
    to a Registration Statement on Form S-1 for ING USA Annuity and Life Insurance 
    Company filed with the Securities and Exchange Commission on April 9, 2007 (File 
    No. 333-133076). 

  d.  Resolution of the board of directors for Power of Attorney, dated 04/23/99, 
    incorporated herein by reference to Post-Effective Amendment No. 12 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 23, 
    1999 (File Nos. 033-59261, 811-05626). 
 
  e.  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, 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 
    or about February 13, 2004 (File Nos. 333-28755, 811-05626). 
 
(7)    Not applicable. 
 
(8)  a.  Service Agreement by and between Golden American Life Insurance Company and 
    Directed Services, Inc., incorporated herein by reference to Post-Effective Amendment 
    No. 28 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 
    May 1, 1998 (File Nos. 033-23351, 811-05626). 
 
  b.  Asset Management Agreement between Golden American Life Insurance Company 
    and ING Investment Management LLC, incorporated herein by reference to Post- 
    Effective Amendment No. 29 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 30, 1999 (File Nos. 033-23351, 811-05626). 
 
  c.  Participation Agreement between Golden American Life Insurance Company, 
    American Funds Insurance Series and Capital Research and Management Company, 
    incorporated herein by reference to Pre-Effective Amendment No. 1 to a Registration 
    Statement on Form N-6 for ReliaStar Life Insurance Company Select * Life Variable 
    Account filed with the Securities and Exchange Commission on July 17, 2003 (File 
    Number 333-105319). 
 
  d.  Participation Agreement by and between ING Investors Trust, Golden American Life 
    Insurance Company and Directed Services, Inc., incorporated herein by reference to 
    Post-Effective Amendment No. 6 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 21, 2005 (File Nos. 333-70600, 811- 
    05626). 
 
  e.  Rule 22c-2 Agreement dated no later than April 16, 2007 is effective October 16, 2007 
    between ING Funds Services, LLC, ING Life Insurance and Annuity Company, ING 
    National Trust, ING USA Annuity and Life Insurance Company, ReliaStar Life 
    Insurance Company, ReliaStar Life Insurance Company of New York, Security Life of 
    Denver Insurance Company and Systematized Benefits Administrators Inc., 
    incorporated by reference to Post-Effective Amendment No. 50 to Registration 
    Statement on Form N-4 (File No. 033-75962), as filed on June 15, 2007. 

f.  Participation Agreement by and between ING Variable Insurance Trust, Golden 
  American Life Insurance Company and ING Mutual Funds Management Co. LLC and 
  ING Funds Distributor, Inc., incorporated herein by reference to Post-Effective 
  amendment No. 32 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 26, 2002 (File Nos. 033-23351, 811-05626). 
 
g.  Amendment to Participation Agreement by and between ING Variable Products Trust, 
  Golden American Life Insurance Company, ING Investments, LLC and ING Funds 
  Distributor, Inc., incorporated herein by reference to Post-Effective amendment No. 8 
  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 
  December 2, 2005 (File Nos. 333-33914, 811-05626). 
 
h.  Participation Agreement by and between ING Variable Portfolios, Inc., Golden 
  American Life Insurance Company and Directed Services, Inc., incorporated herein by 
  reference to Post-Effective Amendment No. 1 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 29, 2002 (File Nos. 333-70600, 811- 
  05626). 
 
i.  Second Amendment to Participation Agreement by and between ING Partners, Inc., 
  Golden American Life Insurance Company, ING Life Insurance and Annuity Company 
  and ING Financial Advisers, LLC, incorporated herein by reference to Post-Effective 
  amendment No. 8 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 December 2, 2005 (File Nos. 333-33914, 811-05626). 
 
j.  Participation Agreement by and between Fidelity Distributors Corporation, Golden 
  American Life Insurance Company and Variable Insurance Products Funds, 
  incorporated herein by reference to Post-Effective amendment No. 32 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 26, 2002 (File 
  Nos. 033-23351, 811-05626). 
 
k.  Amendment to Participation Agreement by and between Fidelity Distributors 
  Corporation and ING USA Annuity and Life Insurance Company, incorporated herein 
  by reference to Post-Effective amendment No. 8 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 December 2, 2005 (File Nos. 333- 
  33914, 811-05626). 
 
l.  Rule 22c-2 Agreement dated no later than April 16, 2007 and is effective as of October 
  16, 2007 between Fidelity Distributors Corporation, ING Life Insurance and Annuity 
  Company, ING National Trust, ING USA Annuity and Life Insurance Company, 
  ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York, 
  Security Life of Denver Insurance Company and Systematized Benefits Administrators 
  Inc., incorporated by reference to Post-Effective Amendment No. 50 to Registration 
  Statement on Form N-4 (File No. 033-75962), as filed on June 15, 2007. 

  m.  Letter Agreement dated May 16, 2007 and effective July 2, 2007 between ING USA 
    Annuity and Life Insurance Company, Variable Insurance Products Fund, Variable 
    Insurance Products Fund II, Variable Insurance Products Fund III, Variable Insurance 
    Products Fund V and Fidelity Distributors Corporation, incorporated by reference to 
    Post-Effective Amendment No. 3 to the Registration Statement on Form N-4 (File No. 
    333-117260), as filed on October 23, 2007. 
 
  n.  Rule 22c-2 Agreement dated no later than April 16, 2007 and effective as of October 
    16, 2007, between BlackRock Distributors, Inc., on behalf of and as distributor for the 
    BlackRock Funds and the Merrill Lynch family of funds and ING Life Insurance and 
    Annuity Company, ING National Trust, ING USA Annuity and Life Insurance 
    Company, ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of 
    New York, Security Life of Denver Insurance Company and Systematized Benefits 
    Administrators Inc., incorporated by reference to Post-Effective Amendment No. 43 to 
    a Registration Statement on Form N-4 (File No. 333-28755), filed on April 7, 2008, 
    811-05626). 
 
(9)    Opinion and Consent of Counsel, attached. 
 
(10)    Consent of Independent Registered Public Accounting Firm, attached. 
 
(11)    Not applicable. 
 
(12)    Not applicable. 
 
(13)    Powers of Attorney, attached. 

ITEM 25: DIRECTORS AND OFFICERS OF THE DEPOSITOR

Name  Principal Business Address  Position(s) with Depositor 
Valerie G. Brown*  1475 Dunwoody Drive  President 
  West Chester, PA 19380   
Bridget M. Healy*  230 Park Avenue, 13th Floor  Director 
  New York, NY 10169   
Robert G. Leary*  230 Park Avenue  Director 
  New York, NY 10169   
Thomas J. McInerney*  One Orange Way  Director and Chairman 
  Windsor, CT 06095-4774   
Catherine H. Smith*  One Orange Way  Director and Senior Vice President 
  Windsor, CT 06095-4774   
David A. Wheat*  5780 Powers Ferry Road  Chief Financial Officer, Director 
  Atlanta, GA 30327-4390  and Executive Vice President 
Steven T. Pierson*  5780 Powers Ferry Road  Senior Vice President and Chief 
  Atlanta, GA 30327-4390  Accounting Officer 
Boyd G. Combs  5780 Powers Ferry Road  Senior Vice President, Tax 
  Atlanta, GA 30327-4390   
Daniel P. Mulheran, Sr.  20 Washington Avenue South  Senior Vice President 
  Minneapolis, MN 55401   
Sue Collins  One Orange Way  Senior Vice President 
  Windsor, CT 06095-4774   
Stephen J. Preston  1475 Dunwoody Drive  Senior Vice President 
  West Chester, PA 19380   
David S. Pendergrass  5780 Powers Ferry Road  Senior Vice President and Treasurer 
  Atlanta, GA 30327-4390   

Name  Principal Business Address  Position(s) with Depositor 
Francis de Regnaucourt  1475 Dunwoody Drive  Vice President and Appointed 
  West Chester, PA 19380  Actuary 
Linda E. Senker  1475 Dunwoody Drive  Vice President and Chief 
  West Chester, PA 19380  Compliance Officer 
Joy M. Benner  20 Washington Avenue South  Secretary 
  Minneapolis, MN 55401   

*Principal delegated legal authority to execute this registration statement pursuant to Powers of Attorney, Exhibit 13, attached.

ITEM 26: PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT

Incorporated herein by reference to Item 28 in Post-Effective Amendment No. 26 to Registration Statement on Form N-6 for Select*Life Variable Account of ReliaStar Life Insurance Company (File No. 33-57244), as filed with the Securities and Exchange Commission on April 7, 2009.

ITEM 27: NUMBER OF CONTRACT OWNERS

As of February 27, 2009 there are 0 qualified contract owners and 0 non-qualified contract owners.

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.

A corporation may procure indemnification insurance on behalf of an individual who is or was a director of the corporation. Consistent with the laws of the State of Iowa, ING America Insurance Holdings, Inc. maintains a Professional Liability and fidelity bond insurance policy issued by an international insurer. The policy covers ING America Insurance Holdings, Inc. and any company in which ING America Insurance Holdings, Inc. has a controlling financial interest of 50% or more. These policies include the principal underwriter, as well as, the depositor. Additionally, the parent company of ING America Insurance Holdings, Inc., ING Groep N.V., maintains excess umbrella coverage with limits in excess of €125,000,000. The policies provide for the following types of coverage: errors and omissions/professional liability, directors and officers, employment practices, fiduciary and fidelity.

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 LLC, the Registrant’s Distributor, serves as principal underwriter for all contracts issued by: ING USA Annuity and Life Insurance Company through its Separate Accounts A, B and EQ, and Alger Separate Account A; and ReliaStar Life Insurance Company of New York through its Separate Account NY-B.

(b) The following information is furnished with respect to the principal officers and directors of Directed Services LLC, the Registrant’s Distributor.

Name  Principal Business Address  Positions and Offices with Underwriter 
Ann H. Hughes  1475 Dunwoody Drive, Floor 2B  President 
  West Chester, PA 19380-1478   
 
Shaun P. Mathews  10 State House Square  Director and Executive Vice President 
  Hartford, CT 06103   
 
Valerie G. Brown  1475 Dunwoody Drive  Director 
  West Chester, PA 19380-1478   
 
William L. Lowe  One Orange Way  Director 
  Windsor, CT 06095   
 
Richard E. Gelfand  1475 Dunwoody Drive  Chief Financial Officer 
  West Chester, PA 19380-1478   
 
Kimberly A. Anderson  7337 E Doubletree Ranch Road,  Senior Vice President 
  Scottsdale, AZ 85258   
 
Michael J. Roland  7337 E Doubletree Ranch Road,  Senior Vice President 
  Scottsdale, AZ 85258   
 
Stanley D. Vyner  230 Park Avenue, 13th Floor  Senior Vice President 
  New York, NY 10169   
 
Beth G. Shanker  1290 Broadway  Broker Dealer Chief Compliance Officer 
  Denver, CO 80203   
 
Ernest C’Debaca  7337 E Doubletree Ranch Road  Investment Advisor Chief Compliance 
  Scottsdale, AZ 85258  Officer and Senior Vice President 
 
Julius A. Drelick, III  7337 E Doubletree Ranch Road  Vice President 
  Scottsdale, AZ 85258   
 
William A. Evans  10 State House Square  Vice President 
  Hartford, CT 06103   
 
Todd R. Modic  7337 E Doubletree Ranch Road  Vice President 
  Scottsdale, AZ 85258   

Name  Principal Business Address  Positions and Offices with Underwriter 
 
David S. Pendergrass  7337 E Doubletree Ranch Road  Vice President and Treasurer 
  Scottsdale, AZ 85258   
 
Spencer T. Shell  5780 Powers Ferry Road  Vice President and Assistant Treasurer 
  Atlanta, GA 30327-4390   
 
Joy M. Benner  20 Washington Avenue South  Secretary 
  Minneapolis, MN 55401   
 
Randall K. Price  20 Washington Avenue South  Assistant Secretary 
  Minneapolis, MN 55401   
 
Susan M. Vega  20 Washington Avenue South  Assistant Secretary 
  Minneapolis, MN 55401   
 
G. Stephen Wastek  7337 E Doubletree Ranch Road  Assistant Secretary 
  Scottsdale, AZ 85258   
 
Bruce Kuennen  1475 Dunwoody Drive  Attorney-in-Fact 
  West Chester, PA 19380-1478   

(c)         
  2008 Net       
  Underwriting       
Name of Principal  Discounts and  Compensation  Brokerage   
Underwriter  Commission  on Redemption  Commissions  Compensation 
Directed Services LLC  $603,785,462  $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 it meets the requirement of Securities Act Rule 485(b) for effectiveness of this Post-Effective Amendment to its Registration Statement on Form N-4 and has caused this Post-Effective Amendment to be signed on its behalf in the City of West Chester, Commonwealth of Pennsylvania, on the 8th day of April, 2009.

  SEPARATE ACCOUNT B 
  (Registrant) 
 
By:  ING USA ANNUITY AND LIFE INSURANCE COMPANY 
  (Depositor) 
 
By:  /s/ Valerie G. Brown 
  Valerie G. Brown 
  President (principal executive officer) 
 
By:  /s/ John S. Kreighbaum 
  John S. (Scott) Kreighbaum as 
  Attorney-in-Fact 

As required by the Securities Act of 1933, this Post-Effective Amendment to the Registration Statement has been signed by the following persons in the capacities indicated on April 8, 2009.

Signatures  Titles 
 
    President 
Valerie G. Brown*  (principal executive officer) 
 
    Chief Accounting Officer 
Steven T. Pierson*   
 
    Director and Chief Financial Officer 
David A. Wheat*   
 
    Director 
Bridget M. Healy*   
 
    Director 
Robert G. Leary*   
 
    Director and Chairman 
Thomas J. McInerney*   
 
    Director 
Catherine H. Smith*   
 
By:  /s/ John S. Kreighbaum 
  John S. (Scott) Kreighbaum as 
  Attorney-in-Fact   

*Executed by John S. (Scott) Kreighbaum on behalf of those indicated pursuant to Powers of Attorney.

                                                                         EXHIBIT INDEX   
ITEM                                                                           EXHIBIT  PAGE # 
(9)  Opinion and Consent of Counsel  EX-99.B9 
(10)  Consent of Independent Registered Public Accounting Firm  EX-99.B10 
(13)  Powers of Attorney  EX-99.B13