27 Results 2013 Americas Net income Commissions and expenses Production Underlying earnings before tax Net income of USD 592 million for the year 2013 was negatively impacted by  long-term economic assumption changes and losses on equity macro hedges,  which have been put in place to protect Aegon's capital position. Underlying  earnings before tax increased to USD 1,817 million in 2013, mainly driven by  higher earnings from variable annuities and pensions. New life sales decreased,  primarily due to focus on profitability of universal life products, while gross  deposits increased.  Net income for the Americas decreased to USD 592 million in  2013. Higher underlying earnings, other income as well as lower  impairments were more than offset by the increase of the loss  on fair value items. Results on fair value items amounted to  a loss of USD 1,288 million, which were primarily the result of  long-term economic assumption changes of USD 514 million  and the loss on equity hedges of USD 804 million, which was  primarily caused by rising equity markets. Realized gains on  investments amounted to USD 148 million, while impairment  charges improved to USD 56 million. Other income was  USD 95 million, mainly related to gains of USD 265 million on  the recapture of certain reinsurance contracts being partly offset  by increased accruals of USD 94 million in connection with the  company's use of the U.S. Social Security Administration's death  master-file and restructuring charges of USD 48 million.  Commissions and expenses increased by 1% to USD 4,332 million  in 2013 compared to 2012. Operating expenses increased by  9%, to USD 1,985 million, primarily the result of higher sales and  employee performance related expenses, investments to expand  Aegon’s digital capabilities and restructuring costs. New life sales decreased 8% to USD 615 million in 2013,  as lower universal life sales due to product withdrawals and  product redesign were only partly offset by higher sales of  term life products. New premium production for accident &  health insurance was stable compared to 2012 and amounted  to USD 902 million. This was the result of strong sales of the  Medicare part D prescription plan product, which was introduced  in 2012, being offset by the loss of two distribution partners for  travel insurance and the termination of certain affinity marketing  partnerships. Gross deposits increased 9% to USD 37.7 billion in 2013. Gross  deposits in variable annuities, retail mutual funds and retirement  plans were all higher than in 2012. Variable annuities gross  deposits were up 59% to USD 8.5 billion in 2013, which was  primarily driven by Aegon's continued focus on key distribution  partners. The increase in retirement plan deposits was driven by  plan takeover deposits and focusing on retirement readiness by  growing customer participation and contributions.  2013 underlying earnings before tax increased 3% to  USD 1,817 million as higher earnings in variable annuities and  pensions from business growth and favorable equity markets  more than offset lower earnings in fixed annuities. ■ Life & Protection underlying earnings before tax increased 1%  to USD 752 million, as growth of the business was partially  offset by the negative impact of lower reinvestment rates due  to the low interest rate environment.  ■ Underlying earnings before tax from Individual Savings &  Retirement increased 8% to USD 688 million, as higher  earnings from variable annuities and mutual funds more than  offset lower earnings from fixed annuities. Earnings from  variable annuities were up 25% to USD 450 million, primarily  driven by higher net inflows and favorable equity markets.  Earnings from mutual funds increased 32% to USD  33 million, resulting from growth of the business and  favorable markets.  ■ Employer Solutions & Pensions underlying earnings before  tax increased 10% to USD 350 million in 2013, which was  primarily the result of strong net pension inflows and  favorable equity markets. ■ Underlying earnings before tax from Canada decreased to  USD 18 million, primarily as a result of actuarial assumption  changes and model refinements. In Latin America underlying  earnings before tax were down to USD 6 million.