485APOS

As filed with the Securities and Exchange Commission on April 16, 2012

Registration No. 333-108525

811-21427

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

WRL FREEDOM PREMIER III VARIABLE ANNUITY

FORM N-4

x REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Pre-Effective Amendment No.  

Post-Effective Amendment No.  21

AND

x REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No.22

SEPARATE ACCOUNT VA U

(Exact Name of Registrant)

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

(Name of Depositor)

4333 Edgewood Road N.E.

Cedar Rapids, IA 52499-0001

(Address of Depositor’s Principal Executive Offices)

Depositor’s Telephone Number: (319) 297-8468

Darin D. Smith

Western Reserve Life Assurance Co. of Ohio

4333 Edgewood Road, N.E.

Cedar Rapids, IA 52499-4240

(Name and Address of Agent for Service)

Copy to:

Frederick R. Bellamy, Esq.

Sutherland Asbill and Brennan LLP

1275 Pennsylvania Avenue, N.W.

Washington, D.C. 20004-2415

Title of Securities Being Registered:    Flexible Premium Variable Annuity Policies

It is proposed that this filing become effective:

¨ immediately upon filing pursuant to paragraph (b) of Rule 485

¨ on                  pursuant to paragraph (b) of Rule 485

x 60 days after filing pursuant to paragraph (a)(1) of Rule 485

¨ on                  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

WRL FREEDOM PREMIER^® III VARIABLE ANNUITY

Issued Through

SEPARATE ACCOUNT VA U

By

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

Prospectus

May 1, 2012

This flexible premium deferred annuity policy has many investment choices. There is a separate account that currently provides a means of investing in various underlying fund portfolios. There is also a fixed account, which offers interest at rates that are guaranteed by Western Reserve Life Assurance Co. of Ohio. You can choose any combination of these investment choices. You bear the entire investment risk for all amounts you put in the separate account.

An optional Premium Enhancement Rider is available at the time you purchase your policy. If you elect this rider, the Company will add a credit to your policy value for each premium payment that you make. There is an extra charge for this rider. Generally, an annuity with a premium enhancement will have higher overall expenses than a similar annuity without a premium enhancement; the amount credited under the premium enhancement may be more than offset by the additional fees and charges associated with the premium enhancement rider. You should always consider the expenses along with the features and enhancements to be sure that any annuity meets your financial needs and goals.

This prospectus and the underlying fund prospectuses give you important information about the policies and the underlying fund portfolios. Please read them carefully before you invest and keep them for future reference.

If you would like more information about the WRL Freedom Premier^® III Variable Annuity, you can obtain a free copy of the Statement of Additional Information (SAI) dated May 1, 2012. Please call us at (800) 851-9777 or write us at: Western Reserve Life Assurance Co. of Ohio, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001. A registration statement, including the SAI, has been filed with the Securities and Exchange Commission (SEC) and the SAI is incorporated herein by reference. More information about the variable annuity can be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may obtain information about the operation of the public reference room by calling the SEC at 1-800-732-0330. The SEC also maintains a web site (http://www.sec.gov) that contains the prospectus, the SAI, material incorporated by reference, and other information. The table of contents of the SAI is included at the end of this prospectus.

Please note that the policies, fixed account, and separate account investment choices:

• are not bank deposits

• are not federally insured

• are not endorsed by any bank or government agency

• are not guaranteed to achieve their goal

• are subject to risks, including loss of premium

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

The subaccounts available under this policy invest in underlying funds of the Portfolio companies listed below:

ACCESS ONE TRUST

ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

FIDELITY^® VARIABLE INSURANCE PRODUCTS FUND

FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

PROFUNDS

TRANSAMERICA SERIES TRUST

For a complete list of the available subaccounts, please refer to “Appendix—Portfolios Associated with the Subaccounts”. For more information on the underlying funds, please refer to the prospectus for the underlying fund.

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TABLE OF CONTENTS

GLOSSARY OF TERMS		6
SUMMARY		8
ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES		14
1.	THE ANNUITY POLICY	20
2.	PURCHASE	20
	Policy Issue Requirements	20
	Premium Payments	21
	Initial Premium Requirements	21
	Additional Premium Payments	21
	Maximum Total Premium Payments	21
	Allocation of Premium Payments	22
	Policy Value	22
3.	INVESTMENT CHOICES	22
	The Separate Account	22
	Selection of Underlying Portfolios	22
	Addition, Deletion, or Substitution of Investments	23
	The Fixed Account	24
	Transfers	25
	Market Timing and Disruptive Trading	26
	Third Party Investment Services	29
4.	PERFORMANCE	30
5.	EXPENSES	31
	Surrender Charges	31
	Excess Interest Adjustment	32
	Mortality and Expense Risk Fees	32
	Premium Taxes	33
	Federal, State and Local Taxes	33
	Special Service Fees	33
	Transfer Fee	33
	Administrative Charges	33
	Initial Payment Guarantee	33
	Fund Facilitation Fee	34
	Liquidity Rider	34
	Premium EnhancementSM Rider	34
	Beneficiary Earnings Enhancement - Extra II _	34
	Living Benefits Rider	34
	Portfolio Fees and Expenses	34
	Revenue We Receive	34
6.	ACCESS TO YOUR MONEY	37

	Surrenders	37
	Delay of Payment and Transfers	37
	Excess Interest Adjustment	38
	Signature Guarantee	39
7.	ANNUITY PAYMENTS (THE INCOME PHASE)	39
	Annuity Payment Options	40
8.	DEATH BENEFIT	42
	When We Pay A Death Benefit	43
	When We Do Not Pay A Death Benefit	43
	Deaths After the Annuity Commencement Date	43
	Succession of Ownership	44
	Amount of Death Benefit	44
	Guaranteed Minimum Death Benefit	44
	Adjusted Partial Surrender	45
9.	TAXES	46
	Annuity Policies in General	46
	Qualified and Nonqualified Policies	46
	Surrenders-Qualified Policies Generally	47
	Surrenders-403(b) Policies	48
	Surrenders-Nonqualified Policies	48
	Taxation of Death Benefit Proceeds	49
	Annuity Payments	49
	Partial Annuitization	50
	Medicare Tax	50
	Diversification and Distribution Requirements	50
	Federal Defense of Marriage Act	50
	Federal Estate Taxes	51
	Generation-Skipping Transfer Tax	51
	Federal Estate, Gift and Generation-Skipping Transfer Taxes	51
	Annuity Purchases by Residents of Puerto Rico	51
	Annuity Policies Purchased by Nonresident Aliens and Foreign Corporations	51
	Transfers, Assignments or Exchanges of Policies	51
	Possible Tax Law Changes	52
	Separate Account Charges	52
	Foreign Tax Credits	52
	Guaranteed Lifetime Withdrawal Benefits	52

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TABLE OF CONTENTS continued

10.	ADDITIONAL FEATURES	52
	Systematic Payout Option	52
	Initial Payment Guarantee	53
	Liquidity Rider	54
	Premium EnhancementSM Rider	54
	Beneficiary Earnings Enhancement - Extra II _	55
	Nursing Care and Terminal Condition
	Withdrawal Option	56
	Unemployment Waiver	57
	Telephone Transactions	57
	Dollar Cost Averaging Program	57
	Asset Rebalancing	59
	Guaranteed Lifetime Withdrawal Benefits	59
	Living Benefits Rider	59
11.	OTHER INFORMATION	68
	Ownership	68
	Beneficiary	68
	Right to Cancel Period	68
	Assignment	68
	Sending Forms and Transaction Requests in Good Order	68
	Mixed and Shared Funding	69
	Exchanges and Reinstatements	69
	Voting Rights	70
	Legal Proceedings	70
	Western Reserve Life Assurance Co. of Ohio _	70
	Financial Condition of the Company	70
	The Separate Account	71
	Distribution of the Policies	72
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION		74
APPENDIX
PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS		75

APPENDIX
CONDENSED FINANCIAL INFORMATION	80
APPENDIX
EXCESS INTEREST ADJUSTMENT EXAMPLES	97
APPENDIX
DEATH BENEFIT	101
APPENDIX
BENEFICIARY EARNINGS ENHANCEMENT - EXTRA II RIDER - ADDITIONAL INFORMATION	104
APPENDIX
LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS	105
APPENDIX
PAM METHOD TRANSFERS	112
APPENDIX
5 FOR LIFE RIDER - NO LONGER AVAILABLE FOR NEW SALES	115
APPENDIX
5 FOR LIFESM WITH GROWTH RIDER - NO LONGER AVAILABLE FOR NEW SALES	123
APPENDIX
INCOME SELECTSM FOR LIFE RIDER - NO LONGER AVAILABLE FOR NEW SALES	132
APPENDIX	145
RETIREMENT INCOME CHOICESM RIDER - NO LONGER AVAILABLE FOR NEW SALES
APPENDIX
RETIREMENT INCOME CHOICESM WITH DOUBLE WITHDRAWAL BASE BENEFIT RIDER - NO LONGER AVAILABLE FOR NEW SALES	159

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GLOSSARY OF TERMS

Accumulation Unit — An accounting unit of measure used in calculating the policy value in the separate account before the annuity commencement date.

Adjusted Policy Value — The policy value increased or decreased by any excess interest adjustment.

Administrative and Service Office — Western Reserve Life Assurance Co. of Ohio, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001, (800) 851-9777. All premium payments, loan repayments, correspondence and notices should be sent to this address.

Annuitant — The person on whose life any annuity payments involving life contingencies will be based.

Annuitize (Annuitization) — When you switch from the accumulation phase to the income phase and we begin to make annuity payments to you (or your designee).

Annuity Commencement Date — The date upon which annuity payments are to commence. This date may be any date after the policy date and may not be later than the last day of the policy month following the month after the annuitant attains age 95. The earliest annuity commencement date is at least four years after you purchase your policy. The annuity commencement date may have to be earlier for qualified policies and may be earlier if required by state law.

Annuity Payment Option — A method of receiving a stream of annuity payments selected by the owner.

Assumed Investment Return or AIR — The annual effective rate shown in the contract specifications section of the contract that is used in the calculation of each variable annuity payment.

Cash Value — The adjusted policy value less any applicable surrender charge and rider fees (imposed upon surrender).

Excess Interest Adjustment — A positive or negative adjustment to amounts surrendered (both partial or full surrenders and transfers) or applied to annuity payment options from the fixed account guaranteed period options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by the Company since the date any payment was received by, or an amount was transferred to, the guaranteed period option. The excess interest adjustment can either decrease or

increase the amount to be received by the owner upon full surrender or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively.

Fixed Account — One or more investment choices under the policy that are part of the Company’s general assets and are not in the separate account.

Free Amount — The amount that can be withdrawn each year without incurring any surrender charges or excess interest adjustments.

Guaranteed Lifetime Withdrawal Benefit —

Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including the Living Benefits Rider.

Guaranteed Period Options — The various guaranteed interest rate periods of the fixed account which the Company may offer and into which premium payments may be paid or amounts transferred.

Owner (You, Your) — The person who may exercise all rights and privileges under the policy. The owner during the lifetime of the annuitant and before the annuity commencement date is the person designated as the owner in the information that we require to issue a policy.

Policy Date — The date shown on the policy data page attached to the policy and the date on which the policy becomes effective.

Policy Value — On or before the annuity commencement date, the policy value is equal to the owner’s:

• premium payments; minus

• gross partial surrenders (partial surrenders minus excess interest adjustments plus the surrender charge on the portion of the requested partial surrender that is subject to the surrender charge); plus

• interest credited in the fixed account; plus

• accumulated gains in the separate account; minus

• accumulated losses in the separate account; minus

• service charges, rider fees, premium taxes, transfer fees, and other charges, if any.

Policy Year — A policy year begins on the policy date and on each anniversary thereof.

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Separate Account — Separate Account VA U, a separate account established and registered as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.

Separate Account Value — The portion of the policy value that is invested in the separate account.

Subaccount — A subdivision within the separate account, the assets of which are invested in a specified underlying fund portfolio.

Valuation Period — The period of time from one determination of accumulation unit values and

annuity unit values to the next subsequent determination of those values. Such determination shall be made on each business day.

Written Notice — Written notice, signed by the owner, that gives the Company the information it requires and is received in good order at the Administrative and Service Office. For some transactions, the Company may accept an electronic notice such as telephone instructions. Such electronic notice must meet the requirements for good order that the Company establishes for such notices.

You (Your) — the owner of the policy.

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SUMMARY

The sections in this summary correspond to sections in this prospectus, which discuss the topics in more detail.

1. THE ANNUITY POLICY

The flexible premium deferred variable annuity policy offered by Western Reserve Life Assurance Co. of Ohio (the Company, we, us, or our) provides a way for you to invest on a tax-deferred basis in the following investment choices: various subaccounts of the separate account and the fixed account of the Company. The policy is intended to accumulate money for retirement or other long-term investment purposes.

This policy currently offers subaccounts that are listed in the “Appendix – Portfolios Associated with the Subaccounts” in this prospectus. Each subaccount invests exclusively in shares of one of the underlying fund portfolios. The policy value may depend on the investment experience of the selected subaccounts. Therefore, you bear the entire investment risk with respect to all policy value in any subaccount. You could lose the amount that you invest.

The fixed account offers an interest rate that the Company guarantees.

The policy, like all deferred annuity policies, has two phases: the “accumulation phase” and the “income phase.” During the accumulation phase, earnings accumulate on a tax-deferred basis and are taxed as ordinary income when you take them out of the policy. The income phase occurs when you annuitize

and begin receiving regular annuity payments from your policy. The money you can accumulate during the accumulation phase will largely determine the payments you receive during the income phase.

2. PURCHASE

The initial premium payment for nonqualified policies must be at least $5,000 or more, and at least $1,000 for qualified policies, under most circumstances. You must obtain prior Company approval to purchase a policy with an amount less than the stated minimum. You can generally add as little as $50 at any time during the accumulation phase.

3. INVESTMENT CHOICES

You can allocate your premium payments to one of several underlying fund portfolios listed in the “Appendix – Portfolios Associated with the Subaccounts” in this prospectus and described in the underlying fund prospectuses. Depending upon their investment performance, you can make or lose money in any of the subaccounts.

You can also allocate your premium payments to the fixed account.

We currently allow you to transfer money between any of the investment choices during the accumulation phase. We reserve the right to impose a $10 fee for each transfer in excess of 12 transfers per policy year and to impose restrictions and limitations on transfers.

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4. PERFORMANCE

The value of the policy will vary up or down depending upon the investment performance of the subaccounts you choose.

5. EXPENSES

No deductions are made from premium payments at the time you buy the policy so that the full amount of each premium payment is invested in one or more of your investment choices.

We may deduct a surrender charge of up to 8.50% of premium payments surrendered within eight years after the premium is paid. We will calculate surrender charges by taking the earnings, if any, out before premium payments. If you select the Life with Emergency Cash^SM annuity payment option, then you can surrender your policy after annuity payments have begun. A surrender charge of up to 4% ofadjusted policy value will apply during the first four years after the annuity commencement date.

Full surrenders, partial surrenders, and transfers from a guaranteed period option of the fixed account may also be subject to an excess interest adjustment, which may increase or decrease the amount you receive. This adjustment may also apply to amounts applied to an annuity payment option from a guaranteed period option of the fixed account prior to the end of the guaranteed period option.

We deduct daily mortality and expense risk fees and administrative charges from the assets in each subaccount during the accumulation phase, at an annual rate (as a percentage of the subaccount’s value) that depends on the death benefit option that you select, as follows:

• 1.25% if you do not choose an optional guaranteed minimum death benefit

• 1.30% if you choose the Return of Premium Death Benefit

• 1.50% if you choose the Annual Step-Up Death Benefit

• 1.55% if you choose the 5% Annually Compounding Death Benefit

• 1.65% if you choose the Double Enhanced Death Benefit

During the accumulation phase, we deduct an annual service charge of no more than $30 from the policy value on each policy anniversary and at the time of surrender. The charge is waived if either the policy value or the sum of all premium payments, minus all partial surrenders, is at least $50,000.

Upon full surrender, payment of a death benefit, or when annuity payments begin, we will deduct state premium taxes, if applicable. State premium taxes currently range from 0% to 3.50%, depending on the state.

If you elect the Premium Enhancement^SM Rider, then there is a fee equal to an annual rate of 0.25% (0.15% if the optional Liquidity Rider, which also has a fee, is also elected) of the daily net asset value in the subaccounts.

We deduct a daily fund facilitation fee from the assets in certain investment choices at an annual rate (as a percentage of the subaccount’s value) as follows:

• 0.20% AllianceBernstein Balanced Wealth Strategy Portfolio—Class B

• 0.15% Franklin Templeton VIP Founding Funds Allocation Fund—Class 4

If you elect the Initial Payment Guarantee feature when you annuitize, then there is a daily fee (during the income phase) currently equal to an annual rate of 1.25% of the daily net asset value in the subaccounts.

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If you elect the Beneficiary Earnings Enhancement -Extra II (“BEE - Extra II”), then there is an annual rider fee during the accumulation phase of 0.55% of the policy value.

If you elect the Living Benefits Rider, then there is an annual rider fee during the accumulation phase of 0.90% of the “principal back” total withdrawal base on each anniversary (“rider anniversary”) of the date the rider was elected.

If you elect the Liquidity Rider, then there is a fee equal to an annual rate of 0.50% of the daily net asset value in the subaccounts. This fee is only charged for the first four years.

The value of the net assets of the subaccounts will reflect the management fee and other expenses incurred by the underlying fund portfolios.

6. ACCESS TO YOUR MONEY

You can generally take out $500 or more anytime during the accumulation phase (except under certain qualified policies).

You may generally take out up to the free amount free of surrender charges. Amounts surrendered in excess of this free amount may be subject to a surrender charge and an excess interest adjustment. You may have to pay income tax and a tax penalty on any money you take out.

If you have policy value in the fixed account, you may take out any cumulative interest credited free of excess interest adjustments.

Access to amounts held in qualified policies may be restricted or prohibited by law or regulation or the terms of the policy.

Surrenders are not generally permitted during the income phase unless you elect the Life with Emergency Cash^SM annuity payment option.

Partial surrenders will reduce your policy value. Depending on its amount and timing, a partial surrender may considerably reduce or eliminate some of the benefits and guarantees provided by your Policy. You should carefully consider whether a partial surrender under a particular circumstance will have a negative impact to your benefits or guarantees. The impact of partial and full surrenders (generally) on your benefits and guarantees is discussed in the corresponding sections of the prospectus describing such benefits and guarantees.

7. ANNUITY PAYMENTS (THE INCOME PHASE)

The policy allows you to receive income under one of several annuity payment options. You may choose from fixed payment options, variable payment options, or a combination of both. If you select a variable payment option, then the dollar amount of your annuity payments may go up or down. However, the Initial Payment Guarantee is available for an extra fee and it guarantees a minimum amount for each annuity payment.

8. DEATH BENEFIT

If the sole annuitant dies before the income phase begins, then the beneficiary will generally receive a death benefit. If the owner is not the annuitant, then no death benefit is paid if the owner dies; however required distribution rules require that the policy value be distributed upon the death of any owner.

Naming different persons as owner and annuitant can affect to whom and whether amounts will be paid. Use care when naming owners, annuitants and beneficiaries, and consult your agent if you have questions.

When you purchase a policy you may generally choose an optional guaranteed minimum death benefit:

• Double Enhanced Death Benefit

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• 5% Annually Compounding Death Benefit

• Annual Step-Up Death Benefit

• Return of Premium Death Benefit

Charges are lower if you do not choose an optional guaranteed minimum death benefit.

After the policy is issued, a guaranteed minimum death benefit cannot be added, and the death benefit cannot be changed.

The death benefit is paid first to a surviving owner, if any; it is paid only to the beneficiary if there is no surviving owner.

9. TAXES

Earnings, if any, are generally not taxed until taken out. If you take money out of a nonqualified policy during the accumulation phase, earnings come out first for federal tax purposes, and are taxed as ordinary income. For nonqualified and certain qualified policies, payments during the income phase may be considered partly a return of your original investment so that part of each payment may not be taxable as income. For qualified policies, payments during the income phase are, in many cases, considered as all taxable income. If you are younger than 59 ¹/2 when you take money out, you may incur a 10% federal penalty tax on the taxable earnings.

10. ADDITIONAL FEATURES

This policy has additional features that might interest you. These features may not be available for all policies, may vary for certain policies, may not each be available in combination with other optional benefits under the policy, and may not be suitable for your particular situation.

These features include, but are not limited to, the following:

• You can arrange to have money automatically sent to you monthly, quarterly, semi-annually or

annually while your policy is in the accumulation phase. This feature is referred to as the “Systematic Payout Option” (“SPO”). Amounts you receive may be included in your gross income, and in certain circumstances, may be subject to penalty taxes.

• You can elect an optional feature at the time of annuitization that guarantees your variable annuity payments will never be less than a percentage of the initial variable annuity payment. This feature is called the “Initial Payment Guarantee” (“IPG”). There is an extra charge for this feature.

• You may elect an optional rider that might pay an additional amount on top of the policy death benefit, in certain circumstances. This feature is called the “Beneficiary Earnings Enhancement -Extra II” (“BEE -Extra II”). There is an extra charge for this rider.

• Under certain medically related circumstances, you may surrender all or part of the policy value without any surrender charge or excess interest adjustment. This feature is called the “Nursing Care and Terminal Condition Withdrawal Option.”

• Under certain unemployment circumstances, you may surrender all or a portion of the policy value free of any surrender charges or excess interest adjustments. This feature is called the “Unemployment Waiver.”

• You may generally make transfers and/or change the allocation of additional premium payments by telephone. We may restrict or eliminate this feature.

• You can arrange to automatically transfer money (at least $500 per transfer) monthly or quarterly from certain investment choices into one or more subaccounts. This feature is known as “Dollar Cost Averaging.”

• We will, upon your request, automatically transfer amounts among the subaccounts on a regular basis to maintain a desired allocation of the policy value among the various subaccounts. This feature is called “Asset Rebalancing.”

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• You may elect to purchase an optional rider which provides you with a guaranteed minimum accumulation benefit and a guaranteed lifetime withdrawal benefit. This feature is called the “Living Benefits Rider.” If you elect this rider, we will monitor your policy value and, as we deem necessary to support the guarantees under the rider, may transfer amounts back and forth between investment choices that we designate and the variable investment choices that you have selected. Because of this, your ability to keep funds invested in certain of your investment choices is subject to the mathematical model that we use to determine when to make transfers to certain investment options as described in this prospectus. You may lose the benefit of this rider if you take “excess” withdrawals. There is an extra charge for this rider.

• You may elect an optional rider that reduces the number of years each premium payment is subject to surrender charges. You can only elect this rider at the time you purchase your policy. This feature is called the “Liquidity Rider.” There is an extra charge for this rider.

• You may elect to purchase an optional rider in which the initial premium payment and each subsequent premium payment will receive a premium enhancement that is added to your policy value. You may only elect this rider at the time you purchase your policy (age limitations may apply). This feature is called the Premium Enhancement^SM Rider. There is an extra charge for this rider.

11. OTHER INFORMATION

Right to Cancel Period. You may return your policy for a refund, but only if you return it within a prescribed period, which is generally 10 days (after you receive the policy), or whatever longer time may be required by state law. The amount of the refund will generally be the premiums paid plus or minus

accumulated gains or losses in the separate account; if state law requires, we will refund your original premium payment(s). The policy will then be deemed void.

No Probate. Usually, the person receiving the death benefit under this policy will not have to go through probate. State laws vary on how the amount that may be paid is treated for estate tax purposes.

Who should purchase the Policy? This policy is designed for people seeking long-term tax-deferred accumulation of assets, generally for retirement or other long-term purposes; and for persons who have maximized their use of other retirement savings methods, such as 401(k) plans. The tax-deferred feature is most attractive to people in high federal and state tax brackets. The tax deferral features of variable annuities are unnecessary when purchased to fund a qualified plan. You should not buy this policy if you are looking for a short-term investment, market timing, or if you cannot take the risk of losing money that you put in.

There are various fees and charges associated with variable annuities. You should consider whether the features and benefits of this policy, unique to variable annuities, such as the opportunity for lifetime income payments, a guaranteed death benefit, the guaranteed level of certain charges, and additional features, make this policy appropriate for your needs.

State Variations. Policies issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, issue age limitations, and the general availability of riders. This prospectus describes the material rights and obligations of a policy owner, and the maximum fees and charges for all policy features and benefits are set forth in the fee table of this prospectus. See your policy for specific variations

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because any such state variations will be included in your policy or in riders or endorsements attached to your policy. See your agent or contact us for specific information that is applicable to your state.

Financial Statements. Financial Statements for the Company and the subaccounts are in the SAI. Condensed financial information for the subaccounts (those in operation by year end December 31, 2011) are in “Appendix – Condensed Financial Information” to this prospectus and the SAI.

12. INQUIRIES

If you need more information or want to make a transaction, please contact us at:

Western Reserve Life Assurance Co. of Ohio

Administrative and Service Office

Attention: Customer Care Group

4333 Edgewood Road NE

Cedar Rapids, IA 52499-0001

(800) 851-9777

All premium payments, loan repayments, correspondence and notices should be sent to this address.

You may check your policy at www.westernreserve.com. Follow the logon procedures. You will need your pre-assigned Personal Identification Number (“PIN”) to access information about your policy. We cannot guarantee that you will be able to access this site.

You should protect your PIN, because on-line (or telephone) options may be available and could be made by anyone who knows your PIN. We may not be able to verify that the person providing instructions using your PIN is you or someone authorized by you.

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ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES

The following describes the fees and expenses that you will pay when buying, owning, and surrendering the policy.

Please be certain to review the notes following the fee table and expense examples for further information about the fees and charges presented. The order of the notes follows the order in which the fees and charges under the policy are presented in the fee tables and the expense examples.

The fee table applies only to the accumulation phase and reflects the maximum charges unless otherwise noted. During the income phase the fees may be different than those described in the Fee Table. See section “5. Expenses”.

The first section describes the fees and expenses that you will pay at the time that you buy the policy, surrender the policy, or transfer cash value between investment choices. State premium taxes may also be deducted. Excess interest adjustments may be made to amounts surrendered or applied to annuity payment options from cash value from the fixed account.(All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Policy Owner Transaction Expenses:
Sales Load On Purchase Payments	0%
Maximum Surrender Charge (as a % of premium payments surrendered)
Base Policy	8.50%
Transfer Fee	$0 -$ 10
Special Service Fee	$0 -$ 25

The next section describes the fees and expenses that you will pay periodically during the time that you own the policy, not including portfolio fees and expenses. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Annual Service Charge	$0 - $30 per policy
Separate Account Annual Expenses (as a percentage, annually, of average separate account value):
Base Separate Account Expenses:
Mortality and Expense Risk Fee	1.10%
Administrative Charge	0.15%
Total Base Separate Account Annual Expenses	1.25%
Optional Separate Account Expenses: (You may only elect one of the guaranteed minimum death benefits listed below)
Double Enhanced Death Benefit	0.40%
5% Annually Compounding Death Benefit	0.30%
Annual Step-Up Death Benefit	0.25%
Return of Premium Death Benefit	0.05%
Liquidity Rider	0.50%
Fund Facilitation Fee	0.20%
Premium Enhancement Rider	0.25%
Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses	2.35%

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Optional Rider Fees:
Beneficiary Earnings Enhancement—Extra II (annual charge based on policy value)	0.55	%
Living Benefits Rider (annual charge, a % of Total Withdrawal Base)	0.90	%
Optional Guaranteed Lifetime Withdrawal Benefit Rider Fees—No Longer Available for Sales
5 for Life Rider (annual charge, a % of Total Withdrawal Base)	0.60	%
5 for Life with Growth (with additional death benefit)	0.85	%
5 for Life with Growth (without additional death benefit)	0.60	%
Income Select for Life—Single and Joint Life Option (annual charge, a % of Total Withdrawal Base)
Base Benefit (Single Life)	0.40	%
Base Benefit (Joint Life)	0.60	%
Additional Benefits available with Income Select for Life Rider
Growth Benefit (Single Life)	0.25	%
Growth Benefit (Joint Life)	0.50	%
Death Benefit (Single Life)	0.25	%
Death Benefit (Joint Life)	0.20	%
Income Enhancement Benefit (Single Life)	0.15	%
Income Enhancement (Joint Life)	0.30	%
Total Income Select for Life Rider (Single Life) Fees with Highest Combination of Benefits	1.05	%
Total Income Select for Life Rider (Joint Life) Fees with Highest Combination of Benefits	1.60	%
Retirement Income ChoiceSM Rider—Single Life Option (annual charge—a % of Withdrawal Base)
Base Benefit (Maximum)	1.35	%
Base Benefit (Current)	0.60	%
Additional Benefits available with the Retirement Income ChoiceSM Rider:
Death Benefit	0.25	%
Maximum Total Retirement Income ChoiceSM Rider Fees (Single Life) with Highest Combination of Benefits	1.75	%
Current Total Retirement Income ChoiceSM Rider Fees (Single Life) with Highest Combination of Benefits	1.00	%
Retirement Income ChoiceSM Rider—Joint Life Option (annual charge—a % of Withdrawal Base):
Base Benefit (Maximum)	1.65	%
Base Benefit (Current)	0.90	%
Additional Benefits available with the Retirement Income ChoiceSM Rider:
Death Benefit	0.20	%
Income Enhancement Benefit	0.30	%
Maximum Total Retirement Income ChoiceSM Rider Fees (Joint Life) with Highest Combination of Benefits .	2.15	%
Current Total Retirement Income ChoiceSM Rider Fees (Joint Life) with Highest Combination of Benefits	1.40	%
Retirement Income ChoiceSM with Double Initial Withdrawal Base Benefit Rider—Single Life Option (annual charge—a % of Withdrawal Base):
Base Benefit (Maximum)	1.65	%
Base Benefit (Current)	0.90	%

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Additional Benefits available with the Retirement Income ChoiceSM with Double Initial Withdrawal Base Benefit Rider:
Death Benefit	0.25	%
Income Enhancement Benefit	0.15	%
Maximum Total Retirement Income ChoiceSM with Double Initial Withdrawal Base Benefit Rider Fees (Single Life) with Highest Combination of Benefits	2.05	%
Current Total Retirement Income ChoiceSM with Double Initial Withdrawal Base Benefit Rider Fees (Single Life) with Highest Combination of Benefits	1.30	%
Retirement Income ChoiceSM with Double Initial Withdrawal Base Benefit Rider—Joint Life Option (annual charge—a % of Withdrawal Base):
Base Benefit (Maximum)	1.65	%
Base Benefit (Current)	0.90	%
Additional Benefits available with the Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider:
Death Benefit	0.20	%
Income Enhancement Benefit	0.30	%
Maximum Total Retirement Income ChoiceSM with Double Initial Withdrawal Base Benefit Rider Fees (Joint Life) with Highest Combination of Benefits	2.15	%
Current Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees (Joint Life) with Highest Combination of Benefits	1.40	%

The next section shows the lowest and highest total operating expenses charged by the underlying fund portfolios for the year ended December 31, 2011 (before any fee waiver or expense reimbursements). Expenses may be higher or lower in future years. More detail concerning each portfolio’s fees and expenses is contained in the prospectus for each portfolio.

Total Portfolio Annual Operating Expenses (Expenses that are deducted from portfolio assets, including management fees, distribution and/or service 12b-1 fees, and other expenses):
Lowest Gross	0.35%
Highest Gross	2.09%

The following Example is intended to help you compare the cost of investing in the policy with the cost of investing in other variable annuity policies. These costs include policy owner transaction expenses, policy fees, separate account annual expenses, and portfolio fees and expenses.

The Example assumes that you invest $10,000 in the policy for the time periods indicated. The Example also assumes that your investment has a 5% return each year, the highest fees and expenses of any of the portfolios for the year ended December 31, 2011, and the base policy with the combination of available optional features or riders

15

with the highest fees and expenses, including the Living Benefits Rider, Highest Fund Facilitation Fee, Annual Step-Up Death Benefit, and Beneficiary Earnings Enhancement—Extra II Rider. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Expense Examples (Highest Gross):

If the policy is surrendered at the end of the applicable time period (without Liquidity Rider):
1 Year	$	1297
3 Years	$	2230
5 Years	$	3120
10 Years	$	5357
If the policy is annuitized at the end of the applicable time period or if you do not surrender your policy (without Liquidity Rider):
1 Year	$	530
3 Years	$	1594
5 Years	$	2662
10 Years	$	5357
If the policy is surrendered at the end of the applicable time period (with Liquidity Rider):
1 Year	$	1344
3 Years	$	2364
5 Years	$	2835
10 Years	$	5484
If the policy is annuitized at the end of the applicable time period or if you do not surrender your policy (with Liquidity Rider):
1 Year	$	579
3 Years	$	1734
5 Years	$	2835
10 Years	$	5484

Please remember that the Example is an illustration and does not represent past or future expenses. Your actual expenses may be lower or higher than those reflected in the Example. Similarly, your rate of return may be more or less than the 5% assumed in the Example.

For information concerning compensation paid for the sale of the policies, see “Distributor of the Policies.”

NOTES TO FEE TABLE AND EXPENSE EXAMPLES

Policy Owner Transaction Expenses:

Maximum Surrender Charge: The surrender charge, if any is imposed, applies to each premium, regardless of how policy value is allocated among the investment choices. The surrender charge decreases based on the number of years since the premium payment was made.

If you select the Life with Emergency Cash^SM annuity payment option, you will be subject to a surrender charge after the annuity commencement date. See section “5. Expenses”.

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Transfer Fee: The transfer fee, if any is imposed, applies to each policy, regardless of how policy value is allocated among the investment choices. There is no fee for the first 12 transfers per policy year. For additional transfers, the Company may charge a fee of $10 per transfer.

Special Service Fees: We may deduct a charge for special services, such as overnight delivery.

Annual Service Charge:

Annual Service Charge: The annual service charge is assessed on each policy anniversary and at surrender. The charge is waived if your policy value, or the sum of your premiums less all partial surrenders, is at least $50,000.

Separate Account Annual Expenses:

Mortality and Expense Risk Fee: The mortality and expense risk fee shown is for the accumulation phase with the base death benefit.

Optional Separate Account Expenses: Any optional separate account expense is in addition to the mortality and expense risk and administrative fees.

Fund Facilitation Fee: This daily fee is applied only to policy value in the subaccounts invested in the AllianceBernstein Balanced Wealth Strategy Portfolio—Class B (0.20%) and the Franklin Templeton VIP Founding Funds Allocation Fund—Class 4 (0.15%). See section “5. Expenses”.

Liquidity Rider: This fee is only charged for the first four policy years.

Optional Premium Enhancement Rider: This fee (0.25%) (0.15% if the optional Liquidity Rider, which also has a fee, is also elected) is in addition to the mortality and expense risk fee.

Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses: This reflects the base separate account expenses, the Double Enhanced Death Benefit fee, the Liquidity Rider fee, the Premium Enhancement Rider (0.15% if the Liquidity Rider is also elected), plus the Fund Facilitation Fee, but does not include any annual optional rider fees. The death benefits are mutually exclusive.

Optional Rider Fees:

Optional Rider Fees: In some cases, riders to the policy are available that provide optional benefits. There are additional fees (each year) for those riders.

Beneficiary Earnings Enhancement—Extra II: This annual fee is a percentage of the policy value and is only deducted during the accumulation phase.

Optional Guaranteed Lifetime Withdrawal Benefit Rider Fees:

Living Benefits Rider: The annual fee is a percentage of the “principal back” Total Withdrawal Base. The “principal back” Total Withdrawal Base on the rider date is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date, the “principal back” Total Withdrawal Base is equal to: the “principal back” Total Withdrawal Base on the rider date; plus subsequent premium payments; less subsequent “principal back” adjusted partial withdrawals.

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Optional Guaranteed Lifetime Withdrawal Benefit Rider Fees—No Longer Available for Sales

5 for Life^SM Rider, 5 for Life^SM with Growth Rider and Income Select^SM for Life Rider—base benefit: The annual fee is a percentage of the Withdrawal Base. The Withdrawal Base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the Withdrawal Base is equal to the Withdrawal Base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent Withdrawal Base adjustments. The Withdrawal Base may be referred to as “Total Withdrawal Base” in your policy statement and other documents.

Income Select^SM for Life Rider—Additional Benefits (Single Life and Joint Life Options): You may elect the Income Select^SM for Life Rider with one or more of the following options—Growth Option, Additional Death Payment Option and Joint Life Option. The charge for each of these options is a percentage of the withdrawal base and is in addition to the Income Select^SM for Life Rider base benefit fee.

Retirement Income Choice^SM Rider and Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider: The fee is a percentage of the Withdrawal Base. The Withdrawal Base on the rider date is the policy value. During any rider year, the Withdrawal Base is equal to the Withdrawal Base on the rider date or most recent rider anniversary; plus subsequent premium payments, less subsequent Withdrawal Base adjustments.

Retirement Income Choice^SM Rider and Retirement Income Choice^SM with Double Withdrawal Benefit Rider - Additional Benefits (Single Life and Joint Life Options): You may elect the Retirement Income Choice^SM Rider and Retirement Income Choice^SM with Double Withdrawal Benefit Rider with one or more of the following options -Death Benefit or Income Enhancement Benefit. The charge for each of these options is a percentage of the Withdrawal Base and is in addition to the base benefit fee.

Total Portfolio Annual Operating Expenses:

Total Portfolio Annual Operating Expenses: The fee table information relating to the underlying fund portfolios was provided to the Company by the underlying fund portfolios, their investment advisors or managers, and the Company has not and cannot independently verify the accuracy or completeness of such information. Actual future expenses of the portfolios may be greater or less than those shown in the Table. “Gross” expense figures do not reflect any fee waivers or expense reimbursements. Actual expenses may have been lower than those shown in the Table.

Expense Examples:

Expense Examples: The Example does not reflect premium tax charges or transfer fees. Different fees and expenses not reflected in the Example may be assessed during the income phase of the policy.

Annuitization: You cannot annuitize before the fourth policy anniversary.

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1. THE ANNUITY POLICY

This prospectus describes the WRL Freedom Premier^® III Variable Annuity policy offered by the Company. This prospectus generally describes policies issued on or after the date of this prospectus. Policies issued before that date may have different features (such as different death benefits or annuity payment options) and different charges.

An annuity is a contract between you, the owner, and an insurance company (in this case the Company), where the insurance company promises to pay you an income in the form of annuity payments. These payments begin on a designated date, referred to as the annuity commencement date. Until the annuity commencement date, your annuity is in the accumulation phase and the earnings (if any) are tax deferred. Tax deferral means you generally are not taxed until you take money out of your annuity. After you annuitize, your annuity switches to the income phase.

The policy is a flexible premium deferred variable annuity. You can use the policy to accumulate funds for retirement or other long-term financial planning purposes. Your individual investment and your rights are determined primarily by your own policy.

The policy is a “flexible premium” annuity because after you purchase it, you can generally make additional investments of $50 or more until the annuity commencement date. You are not required to make any additional investments.

The policy is a “variable” annuity because the value of your investments can go up or down based on the performance of your investment choices. If you invest in the separate account, the amount of money you are able to accumulate in your policy during the accumulation phase depends upon the performance of your investment choices. You could lose the amount you allocate to the separate account. The amount of annuity payments you receive during the

income phase from the separate account also depends upon the investment performance of your investment choices for the income phase. However, if you annuitize under the Initial Payment Guarantee feature, then you will receive stabilized annuity payments that will never be less than a percentage of your initial variable annuity payment. There is an extra charge for this feature.

The policy also contains a fixed account. The fixed account offers interest at rates that we guarantee will not decrease during the selected guaranteed period. There may be different interest rates for each different guaranteed period that you select.

Do not purchase this policy if you plan to use it, or any of its riders, for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme. Your contract is not intended or designed to be traded on any stock exchange or secondary market. By purchasing this contract, you represent and warrant that you are not using the contract, or any of its riders for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme.

2. PURCHASE

Policy Issue Requirements

The Company will not issue a policy unless:

• the Company receives in good order (See Section 11. OTHER INFORMATION -Sending Forms and Transaction Requests in Good Order) all information needed to issue the policy;

• the Company receives in good order (at our Administrative and Service Office) a minimum initial premium payment; and

• the annuitant, owner, and any joint owner are age 90 or younger (the limit may be lower for qualified policies).

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We reserve the right to reject any application or premium payment.

Premium Payments

You should make checks for premium payments payable only to Western Reserve Life Assurance Co. of Ohio and send them to the Administrative and Service Office. Your check must be honored in order for us to pay any associated payments and benefits due under the policy.

We do not accept cash. We reserve the right to not accept third party checks. A third party check is a check that is made payable to one person who endorses it and offers it as payment to a second person. Checks should normally be payable to Western Reserve Life Assurance Co. of Ohio, however, in some circumstances, at our discretion we may accept third party checks that are from a rollover or transfer from other financial institutions. Any third party checks not accepted by our company will be returned.

We reserve the right to reject or accept any form of payment. Any unacceptable forms of payment will be returned.

Initial Premium Requirements

The initial premium payment for nonqualified policies must be at least $5,000, and at least $1,000 for qualified policies. You must obtain prior company approval to purchase a policy with an amount less than the stated minimum. There is generally no minimum initial premium payment for policies issued under section 403(b) of the Internal Revenue Code; however, your premium must be received within 90 days of the policy date or your policy will be canceled. We will credit your initial premium payment to your policy within two business days after the day we receive it and your complete policy information in good order. If we are unable to credit your initial premium payment, we will contact you

within five business days and explain why. We will also return your initial premium payment at that time unless you let us keep it and credit it as soon as possible.

The date on which we credit your initial premium payment to your policy is generally the policy date. The policy date is used to determine policy years, policy months and policy anniversaries.

There may be delays in our receipt of applications that are outside of our control (for example, because of the failure of the selling broker/dealer or sales agent to forward the application to us promptly, or because of delays in determining whether the policy is suitable for you). Any such delays will affect when your policy can be issued and your premium allocated among your investment choices.

Additional Premium Payments

You are not required to make any additional premium payments. However, you can generally make additional premium payments as often as you like during the accumulation phase. Additional premium payments must be at least $50. We will credit additional premium payments to your policy as of the business day we receive your premium and required information in good order at our Administrative and Service Office. Additional premium payments must be received before the close of a regular business session of the New York Stock Exchange (usually 4:00 p.m. Eastern time) to get same-day pricing of the additional premium payment.

Maximum Total Premium Payments

For issue ages 0-80, we reserve the right to reject cumulative premium payments over $1,000,000 (this includes subsequent premium payments) for policies with the same owner or same annuitant issued by us or an affiliate. For issue ages over 80, we reserve the right to reject cumulative premium payments over

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$500,000 (this includes subsequent premium payments) for policies with the same owner or same annuitant issued by us or an affiliate.

Allocation of Premium Payments

When you purchase a policy, we will allocate your premium payment to the investment choices you select. Your allocation must be in whole percentages and must total 100%. We will allocate additional premium payments the same way, unless you request a different allocation.

If you allocate premium payments to the Dollar Cost Averaging program, you must give us instructions regarding the subaccount(s) to which transfers are to be made.

You may change allocations for future additional premium payments by sending written instructions to our Administrative and Service Office, or by telephone, subject to the limitations described under “Telephone Transactions”. The allocation change will apply to premium payments received on or after the date we receive the change request in good order.

You could lose the amount you allocate to the variable subaccounts.

The Company reserves the right to restrict or refuse any premium payment.

Policy Value

You should expect your policy value to change from valuation period to valuation period. A valuation period begins at the close of regular trading on the New York Stock Exchange on each business day and ends at the close of regular trading on the next succeeding business day. A business day is each day that the New York Stock Exchange is open. The New York Stock Exchange generally closes at 4:00 p.m. Eastern time. Holidays are generally not business days.

3. INVESTMENT CHOICES

The Separate Account

The WRL Freedom Premier^® III Variable Annuity offers you a means of investing in various underlying fund portfolios offered by different investment companies (by investing in the corresponding subaccounts). The companies that provide investment advice and administrative services for the underlying fund portfolios offered through this Policy are listed in the “Appendix—Portfolios Associated with the Subaccounts”.

The general public may not purchase shares of any of these underlying fund portfolios. The names and investment objectives and policies may be similar to other portfolios managed by the same investment advisor or manager that are sold directly to the public. You should not expect the investment results of the underlying fund portfolios to be the same as those of other portfolios.

More detailed information, including an explanation of the portfolios’ fees and investment objectives, may be found in the current prospectuses for the underlying fund portfolios, which accompany this prospectus. You should read the prospectuses for the underlying fund portfolios carefully before you invest.

Note: If you received a summary prospectus for any of the portfolios listed in “Appendix—Portfolios Associated with the Subaccounts”, please follow the instructions on the first page of the summary prospectus to obtain a copy of the full fund prospectus.

Selection of Underlying Portfolios

The underlying fund portfolios offered through this product are selected by the Company, and the Company may consider various factors, including, but not limited to, asset class coverage, the strength

21

of the adviser’s or sub-adviser’s reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor that we may consider is whether the underlying fund portfolio or its service providers (e.g., the investment adviser or sub-advisers) or its affiliates will make payments to us or our affiliates. For additional information about these arrangements, see “Revenue We Receive.” We review the portfolios periodically and may remove a portfolio, or limit its availability to new premiums and/or transfers of cash value if we determine that a portfolio no longer satisfies one or more of the selection criteria, and/or if the portfolio has not attracted significant allocations from owners. We have included the Transamerica Series Trust (“TST”) underlying fund portfolios at least in part because they are managed by one of our affiliates, Transamerica Asset Management, Inc. (“TAM”).

We have developed this variable annuity product in cooperation with one or more distributors, and have included certain underlying fund portfolios based on their recommendations; their selection criteria may differ from our selection criteria.

You are responsible for choosing the subaccounts which invest in the underlying fund portfolios, and the amounts allocated to each, that are appropriate for your own individual circumstances and your investment goals, financial situation, and risk tolerance. Because investment risk is borne by you, decisions regarding investment allocations should be carefully considered.

In making your investment selections, we encourage you to thoroughly investigate all of the information regarding the underlying fund portfolios that are available to you, including each underlying fund portfolio’s prospectus, statement of additional information and annual and semi-annual reports. Other sources such as the Fund’s website or newspapers and financial and other magazines provide more current information, including

information about any regulatory actions or investigations relating to a Fund or underlying fund portfolio. After you select underlying fund portfolios for your initial premium, you should monitor and periodically re-evaluate your allocations to determine if they are still appropriate.

You bear the risk of any decline in the cash value of your policy resulting from the performance of the underlying fund portfolios you have chosen.

We do not recommend or endorse any particular underlying fund portfolio and we do not provide investment advice.

We do not guarantee that any of the subaccounts will always be available for premium payments, allocations, or transfers. We reserve the right, subject to compliance with applicable law, to make certain changes to the separate account and its investments. We reserve the right to add new portfolios [or portfolio classes], close existing portfolios [or portfolio classes], or substitute portfolio shares that are held by any subaccount for shares of a different portfolio. We will not add, delete or substitute any underlying fund portfolio shares attributable to your interest in a subaccount without notice to you and prior approval of the SEC, to the extent required by the 1940 Act or other applicable law.

We reserve the right to limit the number of subaccounts you are invested in at any one time.

Addition, Deletion, or Substitution of Investments

The Company cannot and does not guarantee that any of the subaccounts will always be available for premium payments, allocations, or transfers. The Company retains the right, subject to any applicable law, to make certain changes in the separate account and its investments. The Company reserves the right to eliminate the shares of any portfolio held by a subaccount and to substitute shares of another

22

portfolio of the underlying fund portfolios, or of another registered open-end management investment company for the shares of any portfolio, if the shares of the portfolio are no longer available for investment or if, in the Company’s judgment, investment in any portfolio would be inappropriate in view of the purposes of the separate account. To the extent required by the 1940 Act, as amended, substitutions of shares attributable to your interest in a subaccount will not be made without prior notice to you and the prior approval of the Securities and Exchange Commission (“SEC”). Nothing contained herein shall prevent the separate account from purchasing other securities for other series or classes of variable annuity policies, or from affecting an exchange between series or classes of variable annuity policies on the basis of your requests.

New subaccounts may be established when, in the sole discretion of the Company, marketing, tax, investment or other conditions warrant. Any new subaccounts may be made available to existing owners on a basis to be determined by the Company. Each additional subaccount will purchase shares in a mutual fund portfolio, or other investment vehicle. The Company may also eliminate one or more subaccounts if, in its sole discretion, marketing, tax, investment or other conditions warrant such change. In the event any subaccount is eliminated, the Company will notify you and request a reallocation of the amounts invested in the eliminated subaccount.

Similarly, the Company may, at its discretion, close a subaccount to new investment (either transfers or premium payments).

If you allocate premium to a subaccount that is closed to new investment, we will require new instructions. If we do not receive new instructions, the requested transaction will be canceled and the premium will be returned.

In the event of any such substitution or change, the Company may, by appropriate endorsement, make such changes in the policies as may be necessary or appropriate to reflect such substitution or change. Furthermore, if deemed to be in the best interests of persons having voting rights under the policies, the separate account may be (1) operated as a management company under the 1940 Act or any other form permitted by law, (2) deregistered under the 1940 Act in the event such registration is no longer required or (3) combined with one or more other separate accounts. To the extent permitted by applicable law, the Company also may (1) transfer the assets of the separate account associated with the policies to another account or accounts, (2) restrict or eliminate any voting rights of owners or other persons who have voting rights as to the separate account, (3) create new separate accounts, (4) add new subaccounts to or remove existing subaccounts from the separate account, or combine subaccounts, or (5) add new underlying fund portfolios, or substitute a new fund for an existing fund.

The Fixed Account

Premium payments allocated and amounts transferred to the fixed account become part of the Company’s general account. Interests in the general account have not been registered under the Securities Act of 1933 (the “1933 Act”), nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts. Disclosures relating to interests in the general account may, however, be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy of statements made in a registration statement.

While we do not guarantee that the fixed account will always be available for investment, we do guarantee that the interest credited to the fixed

23

account will not be less than the guaranteed minimum effective annual interest rate shown on your policy (the “guaranteed minimum”). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum. At the end of the guaranteed period option you selected, the value in that guaranteed period option will automatically be transferred into a new guaranteed period option of the same length (or the next shorter period if the same period is no longer offered) at the current interest rate for that period. You can transfer to another investment choice by giving us notice within 30 days before the end of the expiring guaranteed period.

Full and partial surrenders and transfers from a guaranteed period option of the fixed account are generally subject to an excess interest adjustment (except at the end of the guaranteed period). See Section 6. Access To Your Money—Excess Interest Adjustment for more information about when an excess interest adjustment applies. This adjustment will also be made to amounts that you apply to an annuity payment option. This adjustment may increase or decrease the amount of interest credited to your policy. The excess interest adjustment will not decrease the interest credited to your policy below the guaranteed minimum.

We also guarantee that upon full surrender your cash value attributable to the fixed account will not be less than the amount required by the applicable nonforfeiture law at the time the policy is issued.

If you select the fixed account, your money will be placed with the Company’s other general assets. The amount of money you are able to accumulate in the fixed account during the accumulation phase depends upon the total interest credited. The amount of each annuity payment you receive during the income phase from the fixed portion of your policy will remain level for the entire income phase.

We reserve the right to refuse any premium payment or transfer to the fixed account.

Transfers

During the accumulation phase, you may make transfers to or from any investment choice within certain limitations.

Transfers out of a guaranteed period option of the fixed account are limited to the following:

• Transfers at the end of a guaranteed period. No excess interest adjustment will apply.

• Transfers of amounts equal to interest credited. This may affect your overall interest-crediting rate, because transfers are deemed to come from the oldest premium payment first.

• Other than at the end of a guaranteed period, transfers of amounts from the guaranteed period option in excess of amounts equal to interest credited, are subject to an excess interest adjustment. If it is a negative adjustment, the maximum amount you can transfer in any one policy year is 25% of the amount in that guaranteed period option, less any previous transfers during the current policy year. If it is a positive adjustment, we do not limit the amount that you can transfer. (Note: This restriction may prolong the period of time it takes to transfer the full amount in the guaranteed period option of the fixed account. You should carefully consider whether investment in the fixed account meets your needs and investment criteria.)

Each transfer must be at least $500, or the entire subaccount value. Transfers of interest from a guaranteed period option of the fixed account must be at least $50. If less than $500 remains as a result of the transfer, then we reserve the right to include that amount in the transfer. Transfer requests must be received in good order while the New York Stock Exchange is open for regular trading to get same-day

24

pricing of the transaction. See Section 11. OTHER INFORMATION—Sending Forms and Transaction Requests in Good Order.

The number of transfers permitted may be limited and a $10 charge for each transfer in excess of 12 in any policy year may apply. We reserve the right to prohibit transfers to the fixed account.

During the income phase, you may transfer values out of any subaccount; however, you cannot transfer values out of the fixed account. The minimum amount that can be transferred during this phase is the lesser of $10 of monthly income, or the entire monthly income of the annuity units in the subaccount from which the transfer is being made.

Transfers made by telephone are subject to the limitations described below under “Telephone Transactions.”

Market Timing and Disruptive Trading

The market timing policy and the related procedures (discussed below) do not apply to the ProFunds or Access subaccounts because the corresponding portfolios are specifically designed to accommodate frequent transfer activity. If you invest in the ProFunds or Access subaccounts, you should be aware that you may bear the costs and increased risks of frequent transfers discussed below.

Statement of Policy. This variable insurance product was not designed for the use of market timers or frequent or disruptive traders. (Frequent transfers are considered to be disruptive.) Such transfers may be harmful to the underlying fund portfolios and increase transaction costs.

Market timing and disruptive trading among the subaccounts or between the subaccounts and the fixed account can cause risks with adverse effects for other policy owners (and beneficiaries and underlying fund portfolios). These risks and harmful effects include:

(1) dilution of the interests of long-term investors in a subaccount if purchases or transfers into or out of an underlying fund portfolio are made at prices that do not reflect an accurate value for the underlying fund portfolio’s investments (some market timers attempt to do this through methods known as “time-zone arbitrage” and “liquidity arbitrage”);

(2) an adverse effect on portfolio management, such as:

(a) impeding a portfolio manager’s ability to sustain an investment objective;

(b) causing the underlying fund portfolio to maintain a higher level of cash than would otherwise be the case; or

(c) causing an underlying fund portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the underlying fund portfolio; and

(3) increased brokerage and administrative expenses.

These costs are borne by all policy owners invested in those subaccounts, not just those making the transfers.

We have developed policies and procedures with respect to market timing and disruptive trading (which vary for certain subaccounts at the request of the corresponding underlying fund portfolios) and we do not make special arrangements or grant exceptions to accommodate market timing or disruptive trading. As discussed herein, we cannot detect or deter all market timing or potentially disruptive trading. Do not invest with us (except in the ProFunds or Access subaccounts as discussed above) if you intend to conduct market timing or potentially disruptive trading.

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Detection. We employ various means in an attempt to detect and deter market timing and disruptive trading. However, despite our monitoring we may not be able to detect nor halt all harmful trading. In addition, because other insurance companies (and retirement plans) with different policies and procedures may invest in the underlying fund portfolios, we cannot guarantee that all harmful trading will be detected or that an underlying fund portfolio will not suffer harm from market timing and disruptive trading among subaccounts of variable products issued by these other insurance companies or retirement plans.

Deterrence. If we determine you are engaged in market timing or disruptive trading, we may take one or more actions in an attempt to halt such trading. Your ability to make transfers is subject to modification or restriction if we determine, in our sole opinion, that your exercise of the transfer privilege may disadvantage or potentially harm the rights or interests of other policy owners (or others having an interest in the variable insurance products). As described below, restrictions may take various forms, but under our current policies and procedures will include loss of expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be “expedited” transfers. This means that we would accept only written transfer requests with an original signature transmitted to us only by U.S. mail. We may also restrict the transfer privileges of others acting on your behalf, including your registered representative or an asset allocation or investment advisory service.

We reserve the right to reject any premium payment or transfer request from any person without prior notice, if, in our judgment, (1) the payment or transfer, or series of transfers, would have a negative impact on an underlying fund portfolio’s operations, or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has instructed us not to allow that purchase or transfer, or (3) because of a history of market timing or disruptive trading.

We may impose other restrictions on transfers, or even prohibit transfers for any owner who, in our view, has abused, or appears likely to abuse, the transfer privilege on a case-by-case basis. We may, at any time and without prior notice, discontinue transfer privileges, modify our procedures, impose holding period requirements or limit the number, size, frequency, manner, or timing of transfers we permit. Because determining whether to impose any such special restrictions depends on our judgment and discretion, it is possible that some contract owners could engage in disruptive trading that is not permitted for others. We also reserve the right to reverse a potentially harmful transfer if an underlying fund portfolio refuses or reverses our order; in such instances some policy owners may be treated differently than others in that some transfers may be reversed and others allowed. For all of these purposes, we may aggregate two or more variable insurance products that we believe are connected.

In addition, transfers for multiple policies invested in the Transamerica Series Trust underlying fund portfolios which are submitted together my be disruptive at certain levels. At the present time, such aggregated transactions likely will not cause disruption if less than one million dollars total is being transferred with respect o any one underlying fund portfolio (a smaller amount may apply to smaller portfolios). Please not that transfers of less than one million dollars may be disruptive in some circumstances and this general amount may change quickly.

For contracts with Portfolio Asset Management, the effect of transfers pursuant thereto may be considered disruptive for certain underlying fund portfolios. As a result, contract owners using Portfolio Asset Management may have to change their selected underlying fund portfolios.

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Please note: If you engage a third party investment advisor for asset allocation services, then you may be subject to these transfer restrictions because of actions of your investment advisor in providing these services.

In addition to our internal policies and procedures, we will administer your variable insurance product to comply with any applicable state, federal, and other regulatory requirements concerning transfers. We reserve the right to implement, administer, and charge you for any fee or restriction, including redemption fees, imposed by any underlying fund portfolio. To the extent permitted by law, we also reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of any of the underlying fund portfolios.

Under our current policies and procedures, we do not:

• impose redemption fees on transfers;

• expressly limit the number or size of transfers in a given period except for certain subaccounts where an underlying fund portfolio has advised us to prohibit certain transfers that exceed a certain size; or

• provide a certain number of allowable transfers in a given period.

Redemption fees, transfer limits, and other procedures or restrictions may be more or less successful than ours in deterring market timing or other disruptive trading and in preventing or limiting harm from such trading.

In the absence of a prophylactic transfer restriction (e.g., expressly limiting the number of trades within a given period or limiting trades by their size), it is likely that some level of market timing and disruptive trading will occur before it is detected and steps taken to deter it (although some level of market timing and disruptive trading can occur with a prophylactic transfer restriction). As noted above, we do not impose a prophylactic transfer restriction and,

therefore, it is likely that, some level of market timing and disruptive trading will occur before we are able to detect it and take steps in an attempt to deter it.

Please note that the limits and restrictions described herein are subject to our ability to monitor transfer activity. Our ability to detect market timing or disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies employed by policy owners (or those acting on their behalf) to avoid detection. As a result, despite our efforts to prevent harmful trading activity among the variable investment choices available under this variable insurance product, there is no assurance that we will be able to detect or deter market timing or disruptive trading by such policy owners or intermediaries acting on their behalf. Moreover, our ability to discourage and restrict market timing or disruptive trading may be limited by decisions of state regulatory bodies and court orders that we cannot predict.

Furthermore, we may revise our policies and procedures in our sole discretion at any time and without prior notice, as we deem necessary or appropriate (1) to better detect and deter harmful trading that may adversely affect other policy owners, other persons with material rights under the variable insurance products, or underlying fund shareholders generally, (2) to comply with state or federal regulatory requirements, or (3) to impose additional or alternative restrictions on owners engaging in market timing or disruptive trading among the investment choices under the variable insurance product. In addition, we may not honor transfer requests if any variable investment choice that would be affected by the transfer is unable to purchase or redeem shares of its corresponding underlying fund portfolio.

Underlying Fund Portfolio Frequent Trading Policies. The underlying fund portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of

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their respective shares. Underlying fund portfolios may, for example, assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period of time. The prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading. Policy owners should be aware that we may not have the contractual ability or the operational capacity to monitor policy owners’ transfer requests and apply the frequent trading policies and procedures of the respective underlying funds that would be affected by the transfers. Accordingly, policy owners and other persons who have material rights under our variable insurance products should assume that any protection they may have against potential harm from market timing and disruptive trading is the protection, if any, provided by the policies and procedures we have adopted for our variable insurance products to discourage market timing or other disruptive trading in certain subaccounts.

Policy owners should be aware that we are required to provide to an underlying fund portfolio or its designee, promptly upon request, certain information about the trading activity of individual policy owners, and to restrict or prohibit further purchases or transfers by specific policy owners identified by an underlying fund portfolio as violating the frequent trading policies established for that portfolio.

Omnibus Orders. Policy owners and other persons with material rights under the variable insurance products also should be aware that the purchase and redemption orders received by the underlying fund portfolios generally are “omnibus” orders from intermediaries such as retirement plans and separate accounts funding variable insurance products. The

omnibus orders reflect the aggregation and netting of multiple orders from individual retirement plan participants and individual owners of variable insurance products. The omnibus nature of these orders may limit the underlying fund portfolios’ ability to apply their respective frequent trading policies and procedures. We cannot guarantee that the underlying fund portfolios will not be harmed by transfer activity relating to the retirement plans or other insurance companies that may invest in the underlying fund portfolios. These other insurance companies are responsible for their own policies and procedures regarding frequent transfer activity. If their policies and procedures fail to successfully discourage harmful transfer activity, it will affect other owners of underlying fund portfolio shares, as well as the owners of all of the variable annuity or life insurance policies, including ours, whose variable investment choices correspond to the affected underlying fund portfolios. In addition, if an underlying fund portfolio believes that an omnibus order we submit may reflect one or more transfer requests from owners engaged in market timing and disruptive trading, the underlying fund portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing your request.

ProFunds and Access Subaccounts. The restrictions above do not apply to ProFunds nor Access subaccounts.

Because the above restrictions do not apply to the ProFunds nor Access subaccounts, they may have a greater risk than others of suffering from the harmful effects of market timing and disruptive trading, as discussed above (i.e., dilution, an adverse effect on portfolio management, and increased expenses).

Third Party Investment Services

Western Reserve or an affiliate may provide administrative or other support services to independent third parties you authorize to conduct transfers on your behalf, or who provide

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recommendations as to how your subaccount values should be allocated. This includes, but is not limited to, transferring subaccount values among subaccounts in accordance with various investment allocation strategies that these third parties employ.

Western Reserve does not engage any third parties to offer investment allocation services of any type, so that persons or firms offering such services do so independent from any agency relationship they may have with Western Reserve for the sale of Policies. Western Reserve, therefore, takes no responsibility for the investment allocations and transfers transacted on your behalf by such third parties or any investment allocation recommendations made by such parties.

Western Reserve does not currently charge you any additional fees for providing these support services. Western Reserve reserves the right to discontinue providing administrative and support services to owners utilizing independent third parties who provide investment allocation and transfer recommendations.

Note carefully:

• Western Reserve does not offer, and does not engage any third parties to offer, investment allocation services of any type for use with the Policy.

• Western Reserve is not party to any agreement that you may have with any third parties that offer investment allocation services for use with your Policy. Western Reserve is not responsible for any recommendations such investment advisers make, any investment strategies they choose to follow, or any specific transfers they make on your behalf.

• Any fee that is charged by third parties offering investment allocation services for use with your Policy is in addition to the fees and expenses that apply under your Policy.

• If you make withdrawals of policy value to pay advisory fees, then taxes may apply to any such withdrawals and tax penalties may be assessed on withdrawals made before you attain age 59 ¹/2.

4. PERFORMANCE

The Company periodically advertises performance of the various subaccounts. Performance figures might not reflect charges for options, riders, or endorsements. We may disclose at least three different kinds of non-standard performance. First, we may calculate performance by determining the percentage change in the value of an accumulation unit by dividing the increase (decrease) for that unit by the value of the accumulation unit at the beginning of the period. This performance number reflects the deduction of the mortality and expense risk fees and administrative charges. It does not reflect the deduction of any applicable premium taxes, surrender charges, or fees for any optional riders or endorsements. Any such deduction would reduce the percentage increase or make greater any percentage decrease.

Second, advertisements may also include total return figures, which reflect the deduction of the mortality and expense risk fees and administrative charges. These figures may also include or exclude surrender charges. These figures may also reflect the premium enhancement, if any.

Third, for certain investment portfolios, performance may be shown for the period commencing from the inception date of the investment portfolio (i.e., before commencement of subaccount operations). These figures should not be interpreted to reflect actual historical performance of the subaccounts.

Not all types of performance data presented reflect all of the fees and charges that may be deducted (such as fees for optional benefits); performance figures would be lower if these charges were included.

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5. EXPENSES

There are charges and expenses associated with your policy that reduce the return on your investment in the policy.

Surrender Charges

During the accumulation phase, you can surrender part or all of the cash value (restrictions may apply to qualified policies). We may apply a surrender charge to compensate us for expenses relating to sales, including commissions to registered representatives and other promotional expenses.

You can surrender up to the greater of (i) 10% of your premium payments or (ii) any gains in the policy once each year free of surrender charges. This amount is referred to as the free amount and is determined at the time of surrender. (The free amount is not cumulative, so not surrendering anything in one year does not increase the surrender charge free amount in subsequent years.) If the surrender is in excess of this free amount, you might have to pay a surrender charge, which is a contingent deferred sales charge, on the excess amount.

The following schedule shows the surrender charges that apply during the eight years following payment of each premium payment:

Number of Years Since Premium Payment Date	Surrender Charge (as a percentage of premium surrendered)
0 - 1		8.5	%
1 - 2		8	%
2 - 3		7	%
3 - 4		6	%
4 - 5		5	%
5 - 6		4	%
6 - 7		3	%
7 - 8		2	%
more than 8		0	%

For example, assume your premium is $100,000 and your policy value is $106,000 at the beginning of the second policy year and you surrender $30,000. Since that amount is more than your free amount ($10,000), you would pay a surrender charge of $1,600 on the remaining $20,000 [8% of ($30,000 -$10,000)].

Likewise, assume your policy value is $80,000 (premium payments $100,000) at the beginning of the second policy year and you surrender your policy. You would pay a surrender charge of $7,200 [8% of ($100,000—($100,000 x 10%))].

You can generally choose to receive the full amount of a requested partial surrender by directing us to deduct any applicable surrender charge (and any applicable excess interest adjustment) from your remaining policy value. You receive your cash value upon full surrender.

For surrender charge purposes, earnings are considered to be surrendered first, then the oldest premium is considered to be surrendered next.

Surrender charges are waived if you surrender money under the Nursing Care and Terminal Condition Withdrawal Option or the Unemployment Waiver.

Keep in mind that surrenders may be taxable and, if made before age 59 ¹/2, may be subject to a 10% federal penalty tax. For tax purposes, surrenders from nonqualified policies are considered to come from taxable earnings first.

An optional rider is available which reduces the number of years a surrender charge applies to each premium payment. There is an extra charge for this rider. See “Liquidity Rider”.

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Life with Emergency Cash^SM Surrender Charge

If you select the Life with Emergency Cash^SM annuity payment option, then you can surrender your policy even after annuity payments have begun. However, there is a surrender charge during the first four years after the annuity commencement date (no matter which policy or variation thereof you previously purchased). The following schedule shows the current surrender charge:

Number of Years Since Annuity Commencement Date	Surrender Charge (as a % of adjusted policy value surrendered)
0 – 1		4	%
1 – 2		3	%
2 – 3		2	%
3 – 4		1	%
more than 4		0	%

We can change the surrender charge, and you will be subject to whatever surrender schedule is in effect at the time you annuitize under the Life with Emergency Cash^SM annuity payment option.

Note carefully the following three things about this surrender charge:

• this surrender charge is measured from the annuity commencement date and not from the premium payment date;

• this surrender charge is a percentage of the adjusted policy value surrendered and not a percentage of premium; and

• under this payment option, there is no surrender charge free amount.

Liquidity Rider Surrender Charge Schedule. The following schedule shows the surrender charges that apply if the Liquidity Rider is elected:

Number of Years   Since Premium    Payment Date	Surrender Charge (as a  percentage of premium surrendered)
0 – 1		8.5	%
1 – 2		8	%
2 – 3		7	%
3 – 4		6	%
more than 4		0	%

Excess Interest Adjustment

Surrenders and transfers from the fixed account may be subject to an excess interest adjustment. This adjustment could retroactively reduce the interest credited in the fixed account to the guaranteed minimum or increase the amount credited. This adjustment may also apply to amounts applied to an annuity payment option. Please see “Appendix -Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical excess interest adjustment calculation. The excess interest adjustment plays a role in calculating the total interest credited to the fixed account.

Mortality and Expense Risk Fees

We charge a fee as compensation for bearing certain mortality and expense risks under the policy. This fee is assessed daily based on the net asset value of each subaccount. Examples of such risks include a guarantee of annuity rates, the death benefit, certain expenses of the policy, and assuming the risk that the current charges will be insufficient in the future to cover costs of administering the policy. We may also pay distribution expenses out of this charge.

During the accumulation phase:

• For the Account Value Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.10%.

• For the Return of Premium Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.15%.

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• For the Annual Step-Up Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.35%.

• For the 5% Annually Compounding Death Benefit, the daily mortaliy and expense risk fee is at an annual rate of 1.40%.

• For the Double Enhanced Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.50%.

During the income phase, the mortality and expense risk fee is at an annual rate of 1.10%.

If this charge does not cover our actual costs, we absorb the loss. Conversely, if the charge more than covers actual costs, the excess is added to our surplus. We expect to profit from this charge. We may use any profit for any proper purpose, including distribution expenses.

Premium Taxes

Some states assess premium taxes on the premium payments you make. We currently do not deduct for these taxes at the time you make a premium payment. However, we will deduct the total amount of premium taxes, if any, from the policy value when:

• you begin receiving annuity payments;

• you surrender the policy; or

• a death benefit is paid.

State premium taxes currently range from 0% to 3.50%, depending on the state.

Federal, State and Local Taxes

We may in the future deduct charges from the policy for any taxes we incur because of the policy. However, no deductions are being made at the present time.

Special Service Fees

We will deduct a charge for special services, such as overnight delivery, up to $25 per service provided.

Transfer Fee

You are generally allowed to make 12 free transfers per policy year before the annuity commencement date. If you make more than 12 transfers per policy year, we reserve the right to charge $10 for each additional transfer. Premium payments, Asset Rebalancing, and Dollar Cost Averaging transfers do not count as one of your free transfers. All transfer requests made at the same time are treated as a single transfer.

Administrative Charges

We deduct a daily administrative charge to cover the costs of supporting and administering the policy (including certain distribution-related expenses). This charge is equal to an annual rate of 0.15% of the daily net asset value of each subaccount during both the accumulation phase and the income phase.

In addition, during the accumulation phase, an annual service charge of $30 (but not more than 2% of the policy value) is charged on each policy anniversary and at surrender. The service charge is waived if your policy value or the sum of your premiums, less all partial surrenders, is at least $50,000.

Initial Payment Guarantee

If you elect the Initial Payment Guarantee feature at the time of annuitization, there is a fee (during the income phase) currently at an annual rate of 1.25% of the daily net asset value. This fee may be higher or lower at the time you annuitize and elect the feature.

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Fund Facilitation Fee

We charge a fund facilitation fee in order to make certain funds available as investment choices under the policies. We apply the fee to funds that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of only the subaccounts that we specify. The fund facilitation fee, expressed as an annual rate is:

• 0.20% AllianceBernstein Balanced Wealth Strategy Portfolio—Class B

• 0.15% Franklin Templeton VIP Founding Funds Allocation Fund—Class 4

Liquidity Rider

If you elect the Liquidity Rider, then there is a rider fee at an annual rate of 0.50% of the daily net asset value for the first four policy years.

Premium Enhancement^SM Rider

If you elect the Premium Enhancement^SM Rider, then there is a rider fee at an annual rate of 0.25% (0.15% if the optional Liquidity Rider, which also has a fee, is also elected) of the daily net asset value. In addition to the rider fee, the Company may use a portion of the mortality and expense risk fee, administrative charge and/or the surrender charge to pay the premium enhancement.

Beneficiary Earnings Enhancement—Extra II

If you elect the Beneficiary Earnings Enhancement -Extra II, there is an annual rider fee during the accumulation phase of 0.55% of the policy value. The rider fee will be deducted on each rider anniversary and upon termination of the rider during the accumulation phase. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Living Benefits Rider

If you elect the Living Benefits Rider, there is an annual rider fee of 0.90% of the “principal back” total withdrawal base on each rider anniversary before annuitization. We will also deduct the rider fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice. Generally, the rider fee is deducted even if your policy value exceeds your total withdrawal base.

We will continue to calculate the rider fee using the “principal back” total withdrawal base even after the “principal back” minimum remaining withdrawal amount reaches zero. The “principal back” total withdrawal base is always greater than or equal to the “for life” total withdrawal base.

Portfolio Fees and Expenses

The value of the assets in each subaccount will reflect the fees and expenses paid by the underlying fund portfolios. The lowest and highest fund expenses for the previous calendar year are found in the Annuity Policy Fee Table section of this prospectus. See the prospectuses for the underlying fund portfolios for more information.

Revenue We Receive

This prospectus describes generally the payments that we (and/or our affiliates) may directly or indirectly receive from the underlying fund portfolios, their advisers, subadvisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other support services we (and/or our affiliates) provide and expenses we incur in offering and selling our variable insurance products. These arrangements are sometimes referred to as “revenue sharing” arrangements and are described further below. While only certain of the types of payments described below may be made in connection with your particular

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policy, all such payments may nonetheless influence or impact actions we (and/or our affiliates) take, and recommendations we (and our affiliates) make, regarding each of the variable insurance products that we (and our affiliates) offer, including your policy.

We (and/or our affiliates) may receive some or all of the following types of payments:

• Rule 12b-1 Fees. We and/or our affiliate, Transamerica Capital, Inc. (“TCI”) who is the principal underwriter for the policies, indirectly receive 12b-1 fees from the funds available as investment choices under our variable insurance products. Any 12b-1 fees received by TCI that are attributable to our variable insurance products are then credited to us. These fees range from 0.00% to 0.45% of the average daily assets of the certain underlying fund portfolios attributable to the policies and to certain other variable insurance products that we and our affiliates issue.

• Administrative, Marketing and Support Service Fees (“Support Fees”). As noted above, an investment adviser, subadviser, administrator and/or distributor (or affiliates thereof) of the underlying fund portfolios may make payments to us and/or our affiliates, including TCI. These payments may be derived, in whole or in part, from the profits the investment adviser or subadviser realized on the advisory fee deducted from underlying fund portfolio assets. Policy owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees (see the prospectuses for the underlying funds for more information). The amount of the payments we (or our affiliates) receive is generally based on a percentage of the assets of the particular underlying fund portfolios attributable to the policy and to certain other variable insurance products that our affiliates and we issue. These percentages differ and the amounts may be significant. Some advisers or sub-advisers (or other affiliates) pay us more than others.

The following chart provides the maximum combined percentages of 12b-1 fees and Support Fees that we anticipate will be paid to us on an annual basis. Please note: Some of the underlying funds listed in the chart below may not currently be available under your policy:

Incoming Payments to the Company and/or TCI
Fund	Maximum Fee % of assets
TRANSAMERICA SERIES TRUST		0.25	%
ALLIANCEBERNSTEIN VARIABLE
PRODUCTS SERIES FUND, INC.		0.25	%
ACCESS ONE TRUST		0.50	%
PROFUNDS		0.50	%
FIDELITY® VARIABLE INSURANCE
PRODUCTS FUND		0.30	%
FRANKLIN TEMPLETON VARIABLE
INSURANCE PRODUCTS TRUST		0.35	%

NOTES TO INCOMING PAYMENTS TABLE:

Maximum Fee % of Assets: Payments are based on a percentage of the average assets of each underlying fund portfolio owned by the subaccounts available under this policy and under certain other variable insurance products offered by our affiliates and us. We and/or TCI may continue to receive 12b-1 fees and administrative fees on subaccounts that are closed to new investments, depending on the terms of the agreements supporting those payments and on the services provided.

Transamerica Series Trust (“TST”): Because TST is managed by Transamerica Asset Management, Inc. (“TAM”), an affiliate of ours, there are additional benefits to us and our affiliates for amounts you allocate to the TST underlying fund portfolios, in terms of our and our affiliates’ overall profitability. These additional benefits may be significant. Payments or other benefits may be received from TAM. Such payments or arrangements may be entered into for a variety of purposes, such as to allocate resources to us to provide administrative services to the policyholders who invest in the TST underlying fund portfolios. These payments or arrangements may take the form of internal credits, recognition, or cash payments. A variety of financial and accounting methods may be used to allocate resources and profits to us. Additionally, if a TST portfolio is sub-advised by an entity that is affiliated with us, we may retain more revenue than on those TST portfolios that are sub-advised by non-affiliated entities. During 2011 we and TCI received $16,703,892.90 in benfits from TAM pursuant to these arrangements. This includes the 0.25% amount in the above chart. We anticipate receiving comparable amounts in the future.

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Fidelity^® Variable Insurance Products Fund: We receive this percentage once $100 million in fund shares are held by the subaccounts of the Company and its affiliates.

• Other Payments. We and our affiliates, inlcuding TCI, Transamerica Financial Advisors, Inc. (“TFA”), and World Group Securities (“WGS”), also directly or indirectly receives additional amounts or different percentages of assets under management from certain advisers and subadvisers to the underlying fund portfolios (or their affiliates) with regard to variable insurance products and/or mutual funds that are issued by us and our affiliates. These amounts may be derived, in whole or in part, from the profits the investment adviser or subadviser receives from the advisory fee deducted from underlying fund portfolio assets. Policy owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees. Certain advisers and subadvisers of the underlying fund portfolios (or their affiliates):

• may each directly or indirectly pay TCI amounts up to $75,000 per year to participate in a “preferred sponsor” program that provides such advisers and subadvisers with access to TCI’s wholesalers at TCI’s national and regional sales conferences as well as internal and external meetings and events that are attended by TCI’s wholesalers and/or other TCI employees.

• may pay TFA varying amounts to obtain access to TFA’s wholesaling and selling representatives;

• may provide our affiliates and/or selling firms with wholesaling services to assist us in the distribution of the policies.

• may provide us and/or certain affiliates and/or selling firms with occasional gifts, meals, tickets or other compensation as an incentive to market the underlying fund portfolios and to assist with their promotional efforts. The amounts may be significant and these arrangements provide the adviser or subadviser (or other affiliates)

with increased access to us and to our affiliates involved in the distribution of the policies.

For the calendar year ended December 31, 2011, TCI or its affiliates received total revenue sharing payments in the amount of $3,368,635.55 from the following Fund managers and/or subadvisers to participate in TCI’s events: Alliance Bernstein Investments, AEGON USA Investment Management, BlackRock Investment Management, LLC., Fidelity Investments, Franklin Templeton Investments, GE Asset Management, Hanlon Investment Management Inc., ING Clarion Real Estate Securities, Invesco AIM, Janus Capital, Jennison Associates, JPMorgan Investment Management, Logan Circle Investment Partners, Loomis, Sayles & Company, MFS Investment Management, Madison Asset Management, LLC, Morgan Stanley Investment Management, Neuberger Berman Management, Oppenheimer Funds, Pacific Investment Management Company, Schroder Investment Management North America, Systematic Financial Management LP, Thompson, Siegel and Walmsley LLC, Vanguard, Wellington Management Company. Please note some of the aforementioned managers and/or subadvisers may not be associated with underlying fund portfolios currently available in this product.

Proceeds from certain of these payments by the underlying fund portfolios, the advisers, the subadvisers and/or their affiliates may be used for any corporate purpose, including payment of expenses (1) that we and our affiliates incur in promoting, marketing, and administering the policy, and (2) that we incur, in our role as intermediary, in promoting, marketing, and administering the underlying fund portfolios. We and our affiliates may profit from these payments.

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For further details about the compensation payments we make in connection with the sale of the policies, see “Distribution of the Policies” in this prospectus.

6. ACCESS TO YOUR MONEY

During the accumulation phase, you can have access to the money in your policy in the following ways:

• by making a surrender (either a full or partial surrender); or

• by taking systematic payouts (See “Section 10, Systematic Payout Option” for more details).

Surrenders

If you take a full surrender, you will receive your cash value.

If you want to take a partial surrender, in most cases it must be for at least $500. Unless you tell us otherwise, we will take the surrender from each of the investment choices in proportion to the policy value.

You may elect to take up to the free amount once each policy year without incurring a surrender charge. Remember that any surrender you take will reduce the policy value, and the amount of the death benefit. See “Section 8, Death Benefit”, for more details. A partial surrender also may have a negative impact on certain other benefits and guarantees of your Contract.

Surrenders from qualified policies may be restricted or prohibited.

Surrenders may be subject to a surrender charge. Surrenders from the fixed account may be subject to an excess interest adjustment. Income taxes, federal tax penalties and certain restrictions may apply to any surrenders you make.

During the income phase, you will receive annuity payments under the annuity payment option you select; however, you generally may not take any other surrenders, either full or partial, unless you elect a Life with Emergency Cash^SM payment option.

If your policy was issued pursuant to a 403(b) plan, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders, loans or transfers you request comply with applicable tax requirements and to decline requests that are not in compliance. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender, loan or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) contracts or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Delay of Payment and Transfers

Payment of any amount due from the separate account for a surrender, a death benefit, or the death of the owner of a nonqualified policy, will generally occur within seven days from the date we receive in good order all required information at our Administrative and Service Office. We may defer such payment from the separate account if:

• the New York Stock Exchange is closed other than for usual weekends or holidays or trading on the Exchange is otherwise restricted;

• an emergency exists as defined by the SEC or the SEC requires that trading be restricted; or

• the SEC permits a delay for the protection of owners.

Transfers of amounts from the subaccounts also may be deferred under these circumstances. In addition, if, pursuant to SEC rules, the Transamerica AEGON Money Market VP portfolio suspends payment of redemption proceeds in connection with a

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liquidation of the portfolio, then we may delay payment of any transfer, partial withdrawal, surrender, loan, or death benefit from the TA AEGON Money Market subaccount until the portfolio is liquidated.

Any payment or transfer request which is not in good order will cause a delay. See Section 11. OTHER INFORMATION—Sending Forms and Transaction Requests in Good Order.

Federal laws designed to counter terrorism and prevent money laundering by criminals might in certain circumstances require us to reject a premium payment and/or “freeze” a policy owner’s account. If these laws apply in a particular situation, we would not be allowed to pay any request for withdrawals, surrenders, or death benefits, make transfers, or continue making annuity payments absent instructions from the appropriate federal regulator. We may also be required to provide information about you and your policy to government agencies or departments.

Pursuant to the requirements of certain state laws, we reserve the right to defer payment of the cash value from the fixed account for up to six months. We may defer payment of any amount until your premium payment check has cleared your bank.

Excess Interest Adjustment

Money that you transfer out of or surrender from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the guaranteed period option) may be subject to an excess interest adjustment. At the time you request a transfer or surrender (either full or partial), if interest rates set by the Company have risen since the date of the initial guarantee, the excess interest adjustment will result in a lower cash value on surrender or transfer (but not below the excess interest adjustment floor described in “Appendix—Excess Interest

Adjustment Examples”). However, if interest rates have fallen since the date of the initial guarantee, the excess interest adjustment will result in a higher cash value on surrender or transfer. Please see “Appendix -Excess Interest Adjustment Examples” to see how the excess interest adjustment is calculated and illustrative examples using hypothetical values.

Any amount surrendered in excess of the cumulative interest credited is generally subject to an excess interest adjustment. An excess interest adjustment may also be made on amounts applied to an annuity payment option.

The formula that will be used to determine the excess interest adjustment is:

S* (G-C)* (M/12)

S = Gross amoung being surrendered that is subject to the excess interest adjustment.

G = Guaranteed interest rate in effect for the policy

M = Number of months remaining in the current option period, rounded up to the next higher whole number of months.

C = Current guaranteed interest rate then being offered on new premiums for the next longer option period than “M”. If this policy form or such an option period is no longer offered, “C” will be the U.S. Treasury rate for the next longer maturity (in whole years) than “M” on the 25th day of the previous calendar month, plus up to 2% (the amount of the “adjustment” will be based on an actuarial risk based analysis considering a number of financial criteria including the prevailing interest rate environment).

* = multiplication

^ = exponentiation

There will be no excess interest adjustment on any of the following:

• surrenders of cumulative interest credited;

• Nursing Care and Terminal Condition Withdrawal Option surrenders;

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• Unemployment Waiver surrenders;

• transfers from a Dollar Cost Averaging fixed source;

• surrenders to satisfy any minimum distribution requirements; and

• Systematic Payout Option payments, which do not exceed cumulative interest credited at the time of payment.

Please note that in these circumstances you will not receive a higher cash value if interest rates have fallen nor will you receive a lower cash value if interest rates have risen.

The excess interest adjustment may vary for certain policies and may not be applicable for all policies.

Signature Guarantee

As a protection against fraud, we require a signature guarantee (i.e., Medallion Signature Guarantee as required by us) for the following transaction requests:

• Any surrenders over $250,000;

• Certain surrenders on or within 15 days of an address change;

• Any disbursement request made on or within 15 days of an ownership change;

• Any surrender when the Company has been directed to send proceeds to a different personal address from the address of record for that contract owner’s account. PLEASE NOTE: This requirement will not apply to requests made in connection with exchanges of one annuity for another with the same owner in a “tax-free exchange”;

• Any surrender when the Company does not have an originating or guaranteed signature on file;

• Any other transaction where we require.

We may change the specific requirements listed above, or add signature guarantees in other circumstances, at our discretion if we deem it necessary or appropriate to help protect against fraud.

For current requirements, please refer to the requirements listed on the appropriate form or call us at (800) 851-9777 .

You can obtain a Medallion signature guarantee from more than 7,000 financial institutions across the United States and Canada that participate in a Medallion signature guarantee program. This includes many:

• National and state banks;

• Savings banks and savings and loan associations;

• Securities brokers and dealers; and

• Credit Unions.

The best source of a Medallion signature guarantee is a bank, savings and loan association, brokerage firm, or credit union with which you do business.

A notary public cannot provide a Medallion signature guarantee. Notarization will not substitute for a Medallion signature guarantee.

7. ANNUITY PAYMENTS

    (THE INCOME PHASE)

You choose the annuity commencement date. You can change this date by giving us notice with the information we need. New annuity commencement dates less than 30 days after we receive notice of the change require prior approval. The latest maximum

annuity commencement date generally cannot be after the policy month following the month in which the annuitant attains age 95. The earliest annuity commencement date is at least four years after you purchase your policy.

Before the annuity commencement date, if the annuitant is alive, you may choose an annuity payment option or change your election. If the annuitant dies before the annuity commencement date, the death benefit is payable in a lump sum or under one of the annuity payment options (unless the surviving spouse continues the policy).

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Unless you specify otherwise, the annuitant will receive the annuity payments. After the annuitant’s death, the beneficiary you designate at annuitization will receive any remaining guaranteed payments.

Annuity Payment Options

The policy provides several annuity payment options that are described below. You may choose any combination of annuity payment options. We will use your adjusted policy value to provide these annuity payments. If the adjusted policy value on the annuity commencement date is less than $2,000, we reserve the right to pay it in one lump sum in lieu of applying it under an annuity payment option. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if payments would be less than $50.)

In deciding on which annuity payment option to elect, you must decide if fixed or variable payments are better for you. If you choose to receive fixed payments, then the amount of each payment will be set on the annuity commencement date and will not change. You may, however, choose to receive variable payments. The dollar amount of the first variable payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. The dollar amount of additional variable payments will vary based on the investment performance of the subaccount(s) you select. The dollar amount of each variable payment after the first may increase, decrease, or remain constant. If the actual investment performance (net of fees and expenses) exactly matched the assumed investment return of 5% at all times, the amount of each variable annuity payment would remain constant. If actual investment performance (net of fees and expenses) exceeds the assumed investment return, the amount of the variable annuity payments would increase. Conversely, if actual investment performance (net of fees and expenses) is lower than the assumed investment return, the amount

of the variable annuity payments would decrease.

Please note that these changes only occur annually under the Initial Payment Guarantee.

You must also decide if you want your annuity payments to be guaranteed for the annuitant’s lifetime, a period certain, or a combination thereof. Generally, payments will be lower if you combine a period certain, guaranteed amount, or liquidity with a lifetime guarantee (e.g., Life Income with 10 years Certain and Life with Guaranteed Return of Policy proceeds). Likewise, payments will also generally be lower the longer the period certain (because you are guaranteed payments for a longer time).

A charge for premium taxes and an excess interest adjustment may be made when annuity payments begin.

The annuity payment options are explained below. Some options are fixed only and some can be fixed or variable.

Income for a Specified Period (fixed only). We will make level payments only for a fixed period. No funds will remain at the end of the period.

If your policy is a qualified policy, this payment option may not satisfy minimum required distribution rules. Consult a tax advisor before electing this option.

Income of a Specified Amount (fixed only). Payments are made for any specified amount until the amount applied to this option, with interest, is exhausted. This will be a series of level payments followed by a smaller final payment.

If your policy is a qualified policy, this payment option may not satisfy minimum required distribution rules. Consult a tax advisor before electing this option.

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Life Income. You may choose between:

• No Period Certain (fixed or variable)-Payments will be made only during the annuitant’s lifetime. The last payment will be the payment immediately before the annuitant’s death.

• 10 Years Certain (fixed or variable)-Payments will be made for the longer of the annuitant’s lifetime or ten years.

• Guaranteed Return of Policy Proceeds (fixed only)-Payments will be made for the longer of the annuitant’s lifetime or until the total dollar amount of payments we made to you equals the annuitized amount (i.e., the adjusted policy value).

• Life with Emergency Cash^SM (fixed or variable)-Payments will be made during the annuitant’s lifetime. With the Life with Emergency Cash^SM feature, you are able to surrender all or a portion of the Life with Emergency Cash^SM benefit (unlike all other life annuitization options which are not surrenderable). The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash^SM benefit schedule that will assist you in estimating the amount you have available to surrender. A partial surrender will reduce all future payments pro rata. A surrender charge may apply and there may be tax consequences (consult a tax advisor before requesting a full or partial surrender). The maximum surrender charge is 4% of the adjusted policy value surrendered (see “Expenses” for the surrender charge schedule). You will be subject to whatever surrender schedule is in effect at the time you annuitize under this annuity payment option. The Life with Emergency Cash^SM benefit will continue through age 100 of the annuitant.

The Life with Emergency Cash^SM benefit is also a death benefit that is paid upon the death of the annuitant and is generally equal to the surrender value (i.e., the amount that would be available for surrender according to the Life with Emergency Cash^SM benefit schedule) without

any surrender charges. For qualified policies the death benefit ceases on the date the annuitant reaches the IRS age limitation.

Joint and Survivor Annuity. You may choose:

• No Period Certain (fixed or variable)-Payments are made during the joint lifetime of the annuitant and a joint annuitant of your selection. Payments will be made as long as either person is living.

• Life with Emergency Cash^SM (fixed or variable)-Payments will be made during the joint lifetime of the annuitant and a joint annuitant of your selection. Payments will be made as long as either person is living. With the Life with Emergency Cash^SM feature, you are able to surrender all or a portion of the Life with Emergency Cash^SM benefit. The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash^SM benefit schedule that will assist you in estimating the amount you have available to surrender. A partial surrender will reduce all future payments pro rata. A surrender charge may apply and there may be tax consequences (consult a tax advisor before requesting a full or partial surrender). The maximum surrender charge is 4% of the adjusted policy value surrendered (see “Expenses” for the surrender charge schedule). You will be subject to whatever surrender schedule is in effect at the time you annuitize under this annuity payment option. The Life with Emergency Cash^SM benefit will continue through age 100 of the surviving joint annuitant.

The Life with Emergency Cash^SM benefit is also a death benefit that is paid upon the death of the surviving joint annuitant and is generally equal to the surrender value without any surrender charges. For qualified policies the death benefit ceases on the date the surviving joint annuitant reaches the IRS joint age limitation.

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Other annuity payment options may be arranged by agreement with the Company. Some annuity payment options may not be available for all policies.

NOTE CAREFULLY

IF:

• you choose Life Income with No Period Certain or a Joint and Survivor Annuity with No Period Certain; and

• the annuitant dies (or both joint annuitants die) before the due date of the second (third, fourth, etc.) annuity payment;

THEN: ·

• we may make only one (two, three, etc.) annuity payments.

IF:

• you choose Income for a Specified Period, Life Income with 10 Years Certain, Life Income with Guaranteed Return of Policy Proceeds, or Income of a Specified Amount; and

• the person receiving payments dies prior to the end of the guaranteed period;

THEN:

• the remaining guaranteed payments will be continued to a new payee, or their present value may be paid in a single sum.

However, IF:

• you choose Life with Emergency Cash^SM; and

• the annuitant dies (if both joint annuitants die) before age 101;

THEN:

• a Life with Emergency Cash^SM death benefit will be paid.

We will not pay interest on amounts represented by uncashed annuity payment checks if the postal or other delivery service is unable to deliver checks to the payee’s address of record. The person receiving payments is responsible for keeping the Company informed of his/her current address.

You must annuitize your policy no later than the maximum annuity commencement date specified in your policy (earlier for certain distribution channels). If you do not elect an annuity payment option, the default option will be Life with 10 Years Certain option. Please note, all optional benefits (including guaranteed minimum death benefits and living benefits) terminate upon annuitization.

8. DEATH BENEFIT

We will pay a death benefit to your beneficiary, under certain circumstances, if the annuitant dies during the accumulation phase. If there is a surviving owner(s) when the annuitant dies, the surviving owner(s) will receive the death benefit instead of the listed beneficiary. The person receiving the death benefit may choose an annuity payment option (if you pick a variable annuity payment option fees and expenses will apply), or may choose to receive a lump sum.

We will determine the amount of and pay the death benefit proceeds, if any are payable on a policy, upon receipt at our Administrative and Service Office of satisfactory proof of the annuitant’s death, written directions from each eligible recipient of death benefit proceeds regarding how to pay the death benefit, and any other documents, forms and information that we need (collectively referred to as “due proof of death”).

Please Note: Such due proof of death must be submitted in good order to avoid a delay in processing the death benefit claim. Due proof requires selecting a payment option. See Section 11. OTHER INFORMATION—Sending Forms and Transaction Requests in Good Order.

The death benefit proceeds remain invested in the separate account in accordance with the allocations made by the policy owner until the beneficiary has provided us with due proof of death. Once the

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Company receives due proof of death, investments in the separate account may be reallocated in accordance with the beneficiary’s instructions.

The Company may permit the beneficiary to give a “one-time” written instruction to reallocate the investments in the separate account to the money market fund after the death of the annuitant. If there is more than one beneficiary, all beneficiaries must agree to the reallocation instructions. This one-time reallocation will be permitted if the beneficiary provides satisfactory evidence of the annuitant’s death.

When We Pay A Death Benefit

We will pay a death benefit IF:

• you are both the annuitant and sole owner of the policy; and ·

• you die before the annuity commencement date.

We will pay a death benefit to you (owner) IF:

• you are not the annuitant; and

• the annuitant dies before the annuity commencement date.

If the only person receiving the death benefit is the surviving spouse, then he or she may elect to continue the policy as the new annuitant and owner, instead of receiving the death benefit. All surrender charges will be waived.

When We Do Not Pay A Death Benefit

We will not pay a death benefit IF:

• you are not the annuitant; and

• you die prior to the annuity commencement date.

Please note the new owner (unless it is the deceased owner’s spouse) must generally surrender the policy within five years of your death.

Distribution requirements apply to the policy value upon the death of any owner. Generally, upon the owner’s death (who is not the annuitant) the entire interest must be distributed within five years. See the SAI for a more detailed discussion of the distribution requirements under the Code.

Deaths After the Annuity Commencement Date

The death benefit payable, if any, on or after the annuity commencement date depends on the annuity payment option selected.

IF:

• you are not the annuitant; and

• you die on or after the annuity commencement date; and

• the entire interest in the policy has not been paid;

THEN:

• the remaining portion of such interest in the policy will continue to be distributed at least as rapidly as under the method of distribution being used as of the date of your death.

IF:

• you are the owner and annuitant; and

• you die after the annuity commencement date; and

• the annuity payment option you selected did not or no longer has a guaranteed period;

THEN:

• no additional payments will be made (there is no death benefit).

NOTE: If you elect the Life with Emergency Cash^SM and the annuitant dies before age 101, then a Life with Emergency Cash^SM death benefit equaling the amount available for surrender will be paid.

IF:

• annuity payments are being made under the Life with Emergency Cash^SM; and

• the annuitant dies before age 101 (or earlier, if a qualified policy);

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THEN:

• a Life with Emergency Cash^SM death benefit will be paid.

Succession of Ownership

If an owner dies during the accumulation phase, the person or entity first listed below who is alive or in existence on the date of that death will become the new owner: ·

• any surviving owner;

• primary beneficiary;

• contingent beneficiary; or

• owner’s estate.

Amount of Death Benefit

Death benefit provisions may differ from state to state. The death benefit may be paid as a lump sum or as annuity payments. The amount of the death benefit depends on the guaranteed minimum death benefit option, if any, you choose when you buy the policy. The “base policy” death benefit will generally be the greater of:

• the account value which is the greater of the policy value or cash value on the date we receive the required information in good order at our Administrative and Service Office;

• the guaranteed minimum death benefit (discussed below), plus premium payments, less adjusted partial surrenders, from the date of death to the date the death benefit is paid. Please see “Appendix—Death Benefit” for illustrative examples regarding Death Benefit calculations.

Please note, the death benefit terminates upon annuitization and there is a maximum annuity commencement date.

Guaranteed Minimum Death Benefit

NOTE: The following generally applies, depending on the state of issue.

On the policy application, you may generally choose a guaranteed minimum death benefit (age limitations may apply) for an additional fee. After the policy is issued, you cannot make an election and the death benefit cannot be changed.

Double Enhanced Death Benefit

The death benefit under this option is the greater of 1 or 2 below:

1. The 5% Annually Compounding through age 80 Death Benefit, which is equal to:

• the total premium payments; less

• any adjusted partial surrenders;

• accumulated at an effective annual rate of 5% from each premium payment date and each surrender date to the earlier of the annuitant’s date of death or the annuitant’s 81st birthday.

2. The Annual Step-Up through age 80 Death Benefit, which is equal to:

• the largest policy value on the policy date or on any policy anniversary before the earlier of the annuitant’s date of death or the annuitant’s 86th birthday; plus

• any premium payments since the date of any policy anniversary with the largest policy value; minus

• any adjusted partial surrenders since the date of the policy anniversary with the largest policy value.

This benefit is not available if the owner or annuitant is age 76 or older on the policy date. There is an extra charge for this death benefit of 0.40% annually.

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5% Annually Compounding Death Benefit

The 5% Annually Compounding Death Benefit is equal to:

• The premium payments; less

• Any adjusted partial withdrawals;

Accumulated at an effective annual rate of 5% from the premium payment date or partial withdrawal date to the earlier of the annuitant’s date of death or the annuitant’s 81st birthday.

This benefit is not available if the owner or annuitant is age 76 or older on the policy date. There is an extra charge for this death benefit of 0.30% annually.

Annual Step-Up Death Benefit

Under this option, on each policy anniversary prior to your 86th birthday, a new “stepped-up” death benefit is determined and becomes the guaranteed minimum death benefit for that policy year. This “step-up” death benefit is equal to:

• the largest policy value on the policy date or on any policy anniversary prior to the earlier of the annuitant’s date of death or the annuitant’s 86th birthday; plus

• any premium payments since the date of any policy anniversary with the largest policy value; minus

• any adjusted partial surrenders since the date of the policy anniversary with the largest policy value.

The Annual Step-Up Death Benefit is not available if you or the annuitant is 81 or older on the policy date. There is an extra charge for this death benefit of 0.25% annually.

Return of Premium Death Benefit

The Return of Premium Death Benefit is equal to:

• total premium payments; less

• any adjusted partial surrenders as of the date of death.

This benefit is not available if you or the annuitant is 91 or older on the policy date. There is an extra charge for this death benefit of 0.05% annually.

Please note: You will not receive an optional guaranteed minimum death benefit if you do not choose one when you purchase your policy.

The Guaranteed Minimum Death Benefit may vary for certain policies and may not be available for all policies. This disclosure explains the material features of the Guaranteed Minimum Death Benefit. The application and operation of the Guaranteed Minimum Death Benefit are governed by the terms and conditions of the policy form and riders.

Adjusted Partial Surrender

When you request a partial surrender, your guaranteed minimum death benefit will be reduced by an amount called the adjusted partial surrender. Under certain circumstances, the adjusted partial surrender may be more than the dollar amount of your surrender request. This will generally be the case if the guaranteed minimum death benefit exceeds the policy value at the time of surrender. It is also possible that if a death benefit is paid after you have made a partial surrender, then the total amount paid could be less than the total premium payments.

The formula used to calculate the adjusted partial surrender amount, for the guaranteed minimum death benefit offered in this prospectus, is: adjusted partial surrender = (amount gross partial surrender *

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value of the current death proceeds immediately prior to the gross partial surrender ) / policy value immediately prior to the gross surrender.

We have included a detailed explanation of this adjustment with examples in the “Appendix—Death Benefit.” This is referred to as “adjusted partial surrender” in your policy. If you have a qualified policy, minimum required distributions rules may require you to request a partial surrender.

9. TAXES

NOTE: We have prepared the following information on federal income taxes as a general discussion of the subject. It is not intended as tax advice to any individual. No attempt is made to consider any applicable state or other income tax laws, any state and local estate or inheritance tax, or other tax consequences of ownership or receipt of distributions under the policy. You should consult your own tax adviser about your own circumstances. We have included an additional discussion regarding taxes in the SAI.

Annuity Policies in General

Deferred annuity policies are a way of setting aside money for future needs like retirement. Congress recognized how important saving for retirement is and provided special rules in the Internal Revenue Code for annuities.

Simply stated, these rules generally provide that individuals will not be taxed on the earnings, if any, on the money held in an annuity policy until taken out. This is referred to as tax deferral. When a non-natural person (e.g., corporation or certain other entities other than tax-qualified trusts) owns a nonqualified policy, the policy will generally not be treated as an annuity for tax purposes.

There are different rules as to how you will be taxed depending on how you take the money out and the type of policy-qualified or nonqualified.

You will generally not be taxed on increases in the value of your policy until a distribution occurs (either as a surrender or as annuity payments).

Qualified and Nonqualified Policies

If you purchase the policy under an individual retirement annuity, a 403(b) plan, a pension plan, or specially sponsored program, your policy is referred to as a qualified policy.

Qualified policies are issued in connection with the following:

• Individual Retirement Annuity (IRA): A traditional IRA allows individuals to make contributions, which may be deductible, to the policy. A Roth IRA also allows individuals to make contributions to the policy, but it does not allow a deduction for contributions, and distributions may be tax-free if the owner meets certain rules.

• Tax-Sheltered Annuity (403(b) Plan): A 403(b) Plan may be made available to employees of certain public school systems and tax-exempt organizations and permits contributions to the policy on a pre-tax basis. Pursuant to new tax regulations, starting January 1, 2009 the policy is not available for purchase under a 403(b) plan and we do not accept additional premiums or transfers to existing 403(b) policies. We generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders, loans or transfers you request from an existing 403(b) policy comply with applicable tax requirements before we process your request.

• Corporate Pension and Profit-Sharing and H.R. 10 Plan: Employers and self-employed individuals can establish pension or

45

profit-sharing plans for their employees or themselves and make contributions to the policy on a pre-tax basis.

• Deferred Compensation Plan (457 Plan): Certain governmental and tax-exempt organizations can establish a plan to defer compensation on behalf of their employees through contributions to the policy.

There is no additional tax deferral benefit derived from placing qualified funds into a variable annuity. Features other than tax deferral should be considered in the purchase of a qualified policy. There are limits on the amount of contributions you can make to a qualified policy. Other restrictions may apply including terms of the plan in which you participate.

Optional death benefit features in some cases may exceed the greater of the premium payments or the policy value. Such a death benefit could be characterized as an incidental benefit, the amount of which is limited in any pension or profit-sharing plan or 403(b) plan. Because an optional death benefit may exceed this limitation, anyone using the policy in connection with such plans should consult their tax adviser before purchasing an optional death benefit. The Internal Revenue Service has not reviewed the policy for qualification as an IRA, and has not addressed in a ruling of general applicability whether the death benefit options and riders available, with the policy, if any, comport with IRA qualification requirements. The value of death benefit options and riders elected may need to be considered in calculating minimum required distributions.

If you purchase the policy as an individual and not under an individual retirement annuity, 403(b) plan, 457 plan, or pension or profit sharing plan, your policy is referred to as a nonqualified policy.

Surrenders-Qualified Policies Generally

There are special rules that govern qualified policies. Generally, these rules restrict:

• the amount that can be contributed to the policy during any year;

• the time when amounts can be paid from the policy; and

• the amount of any death benefit that may be allowed.

In the case of a withdrawal under a qualified policy, a pro rata portion of the amount you receive is taxable, generally based on the ratio of your “investment in the contract” to your total account balance or accrued benefit under the retirement plan. Your “investment in the contract” generally equals the amount of any non-deductible purchase payments made by you or on your behalf. In some cases, your “investment in the contract” can be zero.

In addition, a penalty tax may be assessed on amounts surrendered from the policy prior to the date you reach age 59 ¹/2, unless you meet one of the exceptions to this rule. You may also be required to begin taking minimum distributions from the policy by a certain date. The terms of the plan may limit the rights otherwise available to you under the policy. We have provided more information in the SAI.

We may make available under the policy certain guaranteed lifetime withdrawal and other optional benefits. The tax rules for qualified policies may limit the value of these optional benefits. For example, if you elect a guaranteed lifetime withdrawal benefit and your minimum required distribution amount exceeds your guaranteed withdrawal amount, you will have to withdraw more than the guaranteed withdrawal amount to avoid imposition of a 50% excise tax. It is not clear whether guaranteed lifetime withdrawal benefit payments made during the settlement phase will be taxed as withdrawals or as annuity payments. In view of this uncertainty, we will apply the non-annuity rules for determining

46

minimum required distributions, meaning that a percentage of the value of all benefits under the policy will need to be withdrawn each year. The value may have to include the value of enhanced death benefits and other optional policy provisions such as the guaranteed lifetime withdrawal benefit rider itself.

If you are attempting to satisfy minimum required distribution rules through partial surrenders, the value of any enhanced death benefit or other optional rider may need to be included in calculating the amount required to be distributed.

The Internal Revenue Code generally requires that interests in a qualified policy be nonforfeitable. If your policy contains a bonus rider with a recapture, forfeiture, or “vesting” feature, it may not be consistent with those requirements. Consult a tax advisor before purchasing a bonus rider as part of a qualified policy.

You should consult your legal counsel or tax adviser if you are considering purchasing an enhanced death benefit or other optional rider, or if you are considering purchasing a policy for use with any qualified retirement plan or arrangement.

Surrenders-403(b) Policies

The rules described above for qualified policies generally apply to 403(b) policies. However, specific rules apply to surrenders from certain 403(b) policies. Partial withdrawals and surrenders can generally only be made when an owner:

• reaches age 59 ¹/2;

• leaves his/her job;

• dies;

• becomes disabled (as that term is defined in the Internal Revenue Code); or

• declares hardship. However, in the case of hardship, the owner can only surrender the premium payments and not any earnings.

Please Note: In some instances the signature of the employer may be required. For policies issued after 2008, amounts attributable to nonelective contributions may be subject to distribution restrictions specified in the employer’s section 403(b) plan.

Pursuant to new tax regulations, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders or transfers you request from a 403(b) policy comply with applicable tax requirements before we process your request. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) policies or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Defaulted loans from Code Section 403(b) arrangements, and pledges and assignments of qualified policies generally are taxed in the same manner as surrenders from such policies. Please refer to the SAI for further information applicable to distributions from 403(b) policies. Please note that a defaulted loan may stop the growth on a guaranteed lifetime withdrawal benefit.

Surrenders-Nonqualified Policies

The information above describing the taxation of qualified policies does not apply to nonqualified policies. If you take a partial withdrawal or surrender (including systematic payouts and payouts under an optional feature, if any) from a nonqualified policy before the annuity commencement date, the Internal Revenue Code treats that surrender as first coming from earnings and then from your premium payments. If your policy contains an excess interest adjustment feature (also known as a market value adjustment), then your account value immediately

47

before the surrender may have to be increased by any positive excess interest adjustments that result from the surrender. There is, however, no definitive guidance on the proper tax treatment of excess interest adjustments, and you may want to discuss the potential tax consequences of an excess interest adjustment with your tax advisor.

When you make a surrender you are taxed on the amount of the surrender that is earnings. If you make a surrender, you are generally taxed on the amount that your surrender proceeds exceeds the “investment in the contract,” which is generally your premiums paid (adjusted for any prior surrenders or portions thereof that were not taxable). In general, loans, pledges, and assignments are taxed in the same manner as partial withdrawals and surrenders. Different rules apply for annuity payments. See “Annuity Payments” below.

The Internal Revenue Code also provides that surrendered earnings may be subject to a penalty tax. The amount of the penalty tax is equal to 10% of the amount that is includable in income. Some surrenders will be exempt from the penalty tax. They include, among others, any amounts:

• paid on or after the taxpayer reaches age 59 ¹/2;

• paid after an owner dies;

• paid if the taxpayer becomes disabled (as that term is defined in the Internal Revenue Code);

• paid in a series of substantially equal payments made annually (or more frequently) under a lifetime annuity;

• paid under an immediate annuity; or

• which come from premium payments made prior to August 14, 1982.

Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above.

If your nonqualified policy contains a guaranteed lifetime withdrawal benefit rider, certain rules may apply. It is not clear whether guaranteed lifetime

withdrawal benefit payments made during the settlement or income (payout) phase may be taxed as either withdrawals or annuities. In view of this uncertainty, we intend to adopt a conservative approach and treat guaranteed lifetime withdrawal payments during the settlement phase under nonqualified policies as withdrawals. Consult a tax advisor before purchasing a guaranteed lifetime withdrawal benefit rider or option.

All nonqualified deferred annuity policies that are issued by us (or our affiliates) to the same owner during any calendar year are treated as one annuity for purposes of determining the amount includable in the owner’s income when a taxable distribution occurs.

Taxation of Death Benefit Proceeds

Amounts may be distributed from the policy because of the death of the annuitant. Generally, such amounts should be includable in the income of the recipient:

• if distributed in a lump sum, these amounts are taxed in the same manner as a surrender; or

• if distributed under an annuity payment option, these amounts are taxed in the same manner as annuity payments.

Annuity Payments

Although the tax consequences may vary depending on the annuity payment option you select, in general, for nonqualified and certain qualified policies, only a portion of the annuity payments you receive will be includable in your gross income.

In general, the excludable portion of each annuity payment you receive will be determined as follows:

• Fixed payments-by dividing the “investment in the contract” on the annuity commencement date by the total expected value of the annuity

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payments for the term of the payments. This is the percentage of each annuity payment that is excludable.

• Variable payments-by dividing the “investment in the contract” on the annuity commencement date by the total number of expected periodic payments. This is the amount of each annuity payment that is excludable.

The remainder of each annuity payment is includable in gross income. Once the “investment in the contract” has been fully recovered, the full amount of any additional annuity payments is includable in gross income and taxed as ordinary income.

If you select more than one annuity payment option, special rules govern the allocation of the policy’s entire “investment in the contract” to each such option, for purposes of determining the excludable amount of each payment received under that option. We advise you to consult a competent tax adviser as to the potential tax effects of allocating amounts to any particular annuity payment option.

If, after the annuity commencement date, annuity payments stop because an annuitant died, the excess (if any) of the “investment in the contract” as of the annuity commencement date over the aggregate amount of annuity payments received that was excluded from gross income may possibly be allowable as a deduction in your tax return.

You should consult a tax advisor before electing the Initial Payment Guarantee or a feature with stabilized payments.

Partial Annuitization

Under a new tax provision enacted in 2010, if part of an annuity policy’s value is applied to an annuity option that provides payments for one or more lives and for a period of at least ten years, those payments may be taxed as annuity payments instead of withdrawals. None of the payment options under the

policy is intended to qualify for this “partial annuitization” treatment and, if you apply only part of the value of the policy to a payment option, we will treat those payments as withdrawals for tax purposes.

Medicare Tax

Beginning in 2013, distributions from nonqualified annuity policies will be considered “investment income” for purposes of the newly enacted Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts. Please consult a tax advisor for more information.

Diversification and Distribution Requirements

The Internal Revenue Code provides that the underlying investments for a variable annuity must satisfy certain diversification requirements in order to be treated as an annuity. The policy must also meet certain distribution requirements at the death of an owner in order to be treated as an annuity. These diversification and distribution requirements are discussed in the SAI. We may modify the policy to attempt to maintain favorable tax treatment.

Federal Defense of Marriage Act

The Federal Defense of Marriage Act currently does not recognize same-sex marriages or civil unions, even those that are permitted under individual state laws. Therefore, exercise of the spousal continuation provisions of this policy by persons who do not meet the definition “spouse” under federal law—e.g., civil union partners or same-sex marriage spouses—may have adverse tax consequences. Consult a tax advisor for more information on this subject.

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Federal Estate Taxes

While no attempt is being made to discuss the Federal estate tax implications of the Policy in detail, a purchaser should keep in mind that the value of an annuity policy owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent’s gross estate. Depending on the terms of the annuity policy, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning advisor for more information.

Generation-Skipping Transfer Tax

Under certain circumstances, the Internal Revenue Code may impose a “generation skipping transfer tax” when all or part of an annuity policy is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the Internal Revenue Code may require us to deduct the tax from your policy, or from any applicable payment, and pay it directly to the IRS.

Federal Estate, Gift and Generation-Skipping Transfer Taxes

For 2012, the federal estate tax, gift tax and generation-skipping transfer (“GST”) tax exemptions and maximum rates are $5,120,000 and 35%, respectively. After 2012, in the absence of legislative action, the federal estate tax, gift tax and GST tax exemptions and rates will return to their 2001 levels (with inflation adjustments for the GST tax exemption but not for the estate or gift tax exemptions). This would result in significantly lower exemptions and significantly higher tax rates. Between now and the end of 2012, Congress may make the current exemptions and rates permanent, it

may do nothing and allow the 2001 levels to go into effect, or it may change the applicable exemptions and/or tax rates.

The uncertainty as to how the current law might be modified in coming years underscores the importance of seeking guidance from a qualified adviser to help ensure that your estate plan adequately addresses your needs and that of your beneficiaries under all possible scenarios.

Annuity Purchases by Residents of Puerto Rico

The Internal Revenue Service recently announced that income received by residents of Puerto Rico under life insurance or annuity policies issued by a Puerto Rico branch of a United States life insurance company is U.S.-source income that is generally subject to United States federal income tax.

Annuity Policies Purchased by Nonresident Aliens and Foreign Corporations

The discussion above provided general information (but not tax advice) regarding U.S. federal income tax consequences to annuity owners that are U.S. persons. Taxable distributions made to owners who are not U.S. persons will generally be subject to U.S. federal income tax withholding at a 30% rate, unless a lower treaty rate applies. In addition, distributions may be subject to state and/or municipal taxes and taxes that may be imposed by the owner’s country of citizenship or residence. Prospective foreign owners are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation for any annuity policy purchase.

Transfers, Assignments or Exchanges of Policies

A transfer of ownership or assignment of a policy, the designation of an annuitant or payee or other beneficiary who is not also the owner, the selection of certain annuity commencement dates, the exchange of a policy and certain other transactions, or a change

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of annuitant other than the owner, may result in certain income or gift tax consequences to the owner that are beyond the scope of this discussion. An owner contemplating any such transfer, assignment, selection, exchange or change should contact a competent tax adviser with respect to the potential tax effects of such a transaction.

Possible Tax Law Changes

Although the likelihood of legislative or regulatory changes is uncertain, there is always the possibility that the tax treatment of the policy could change by legislation, regulation, or otherwise. You should consult a tax adviser with respect to legal or regulatory developments and their effect on the policy.

We have the right to modify the policy to meet the requirements of any applicable laws or regulations, including legislative changes that could otherwise diminish the favorable tax treatment that annuity policy owners currently receive.

Separate Account Charges

It is possible that the Internal Revenue Service may take a position that fees for certain optional benefits (e.g., death benefits other than the Return of Premium death benefit) are deemed to be taxable distributions to you. In particular, the Internal Revenue Service may treat fees associated with certain optional benefits as a taxable surrender, which might also be subject to a tax penalty if the surrender occurs prior to age 59 ¹/2. Although we do not believe that the fees associated with any optional benefit provided under the policy should be treated as taxable surrenders, the tax rules associated with these benefits are unclear, and we advise that you consult your tax advisor prior to selecting any optional benefit under the policy.

Foreign Tax Credits

We may benefit from any foreign tax credits attributable to taxes paid by certain underlying funds to foreign jurisdictions to the extent permitted under federal tax law.

Guaranteed Lifetime Withdrawal Benefits

We may make available, as options under the policy, certain guaranteed lifetime withdrawal and other optional benefits. If your policy contains a guaranteed lifetime withdrawal benefit rider the application of certain tax rules, particularly those rules relating to distributions from your policy, are not entirely clear. The tax rules for qualified policies may limit the value of these optional benefits. In view of this uncertainty, you should consult a tax advisor before purchasing a guaranteed lifetime withdrawal benefit rider for a qualified policy.

10. ADDITIONAL FEATURES

Systematic Payout Option

You can select at any time (during the accumulation phase) to receive regular withdrawals (i.e., partial surrenders) from your policy by using the Systematic Payout Option. Under this option, you can receive the greater of (1) or (2), divided by the number of withdrawals made per year, where: (1) up to 10% of your premium payments (reduced by prior withdrawals in that policy year); and (2) is any gains in the policy. For amounts greater than 10% of your premium payments, you must receive prior Company approval. The amount of your payment is established when you select the option. The amount available is recalculated on each policy anniversary thereafter while the Systematic Payout Option is in effect.

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This amount may be taken free of surrender charges. Any payment in excess of the cumulative interest credited at the time of the payment may be subject to an excess interest adjustment.

Systematic withdrawals can be made monthly, quarterly, semi-annually, or annually. Each withdrawal must be at least $50. Monthly and quarterly withdrawals must generally be made by electronic funds transfer directly to your checking or savings account.

Keep in mind that partial withdrawals under the Systematic Payout Option may be taxable, and if made before age 59 ¹/2, may be subject to a 10% federal penalty tax.

There is no charge for this benefit.

Initial Payment Guarantee

You may only elect to purchase the Initial Payment Guarantee which provides annually stabilized payments that are guaranteed to never be less than a percentage of the initial variable annuity payment at the time you annuitize your policy. You cannot terminate this payment guarantee (or eliminate the charge for it) after you have elected it. The guarantee only applies to variable annuity payments. There is an additional charge for this guarantee.

The Initial Payment Guarantee does not establish or guarantee the performance of any subaccount.

Under the Initial Payment Guarantee, you receive annuity payments that are stabilized—that is, held level throughout each policy year—and are guaranteed to never be less than a percentage of the initial payment. The guaranteed percentage is subject to change from time to time; however once you annuitize, the guaranteed percentage will not change during the life of the Initial Payment Guarantee. Contact us for the current guaranteed percentage.

The payment amount is adjusted once each year (on the anniversary of your annuity commencement date) to reflect the investment performance of your selected investment choice(s) over the preceding year (but your payment will not be less than the guaranteed minimum).

Fee. There is a charge for the Initial Payment Guarantee, which is in addition to the base product mortality and expense risk fee and administrative charge. This fee is reflected in the amount of the annuity payments that you receive if you select the Initial Payment Guarantee. It is reflected in the calculation of the annuity unit values (i.e., your payment is “net” the initial payment guarantee fee, mortality and expense risk fee, and administrative charges).

The Initial Payment Guarantee fee is currently equal to an annual rate of 1.25% of the daily net asset value in the subaccounts. We can change the fee, and you pay whatever the fee is when you annuitize.

Other Terms and Conditions. The Initial Payment Guarantee uses a 5% assumed investment return to calculate your annuity payments. This means that the dollar amount of the annuity payments will remain level if the investment return (net of fees and expenses) exactly equals 5%. The payments will increase if actual investment performance (net of fees and expenses) exceeds the assumed investment return, and decrease if actual performance is below the assumed investment return (but not below the guaranteed level).

Termination. The Initial Payment Guarantee is irrevocable.

The Initial Payment Guarantee may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Initial Payment Guarantee. The application and operation of the Initial Payment Guarantee are governed by the terms and conditions of the policy itself.

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Liquidity Rider

The optional Liquidity Rider reduces the number of years each premium payment is subject to surrender charges. You can only elect this rider at the time you purchase the policy.

Rider Fee. A rider fee equal to an effective annual rate of 0.50% of the daily net asset value in the separate account is deducted in calculating the accumulation unit values. The rider fee is only charged for the first four policy years.

Accumulation Unit Values. We intend to administer the removal of the Liquidity Rider fee by changing to a different class of accumulation units. This will result in adjusting the number of accumulation units and adjusting the unit value of the subaccounts in which you were invested once the Liquidity Rider fee is no longer charged. The elimination of the fee and the adjustment in the number of accumulation units and unit values will not affect policy values.

Termination. The rider is irrevocable.

Please note:

• This feature terminates upon annuitization and there is a mandatory annuitization date.

• We may credit interest in the fixed account at a lower rate if you select this rider.

The Liquidity Rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Liquidity Rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Premium Enhancement^SM Rider

An optional Premium Enhancement^SM Rider is available at the time you buy your policy. If you elect this rider, each premium payment will receive a premium enhancement that the Company adds to your policy value. We may change the enhancement rate at any time. Under certain circumstances, you might forfeit (or lose) the premium enhancement.

Generally, an annuity with a premium enhancement may have higher expenses than a similar annuity without a premium enhancement. Accordingly, you should always consider the expenses along with the features and enhancements to be sure any annuity meets your financial needs and goals.

You may only elect the Premium Enhancement^SM Rider at the time you buy your policy. If you elect the premium enhancement rider, the initial premium payment and each subsequent premium payment will receive a premium enhancement which is added to the policy value. The premium enhancement is currently 4% (currently 2% if the Liquidity Rider is also elected) of the amount of the premium payment; however, we may change the enhancement rate at any time. The amount of the premium enhancement is not considered a premium payment and therefore may not be included in the calculation of certain policy features. No premium enhancement will apply if the policy is canceled pursuant to the right to cancel provision.

The Company may take back or “recapture” the full dollar amount of any premium enhancement upon the occurrence of any of the following events:

• exercise of the right to cancel option;

• exercise of the Nursing Care and Terminal Condition Withdrawal Option or the Unemployment Waiver within one year from the time we apply the premium enhancement;

• a death benefit is payable within one year from the time we apply the premium enhancement; or

• annuitization within one year from the time we apply the premium enhancement.

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Please note: If we recapture the premium enhancement, it will be the dollar amount that we added to the policy, not a percentage of your policy value at the time of recapture. Thus, if your policy is worth less (or more) than at the time of purchase, the effect of the recapture on your policy value on a percentage basis may be greater (or less) than the original percentage added. You bear the investment risk on the premium enhancement.

Rider Fee. There is a daily charge for the Premium Enhancement^SM Rider at an annual rate of 0.25% (0.15% if Liquidity Rider is also elected) of the assets in each subaccount. In addition to the rider fee, the Company expects to use a portion of the mortality and expense risk fee, administrative charge and/or the surrender charge to pay the premium enhancement.

Other Terms and Conditions: If you elect this rider, you are not able to elect the Double Enhanced Death Benefit or the 5% Annually Compounding Death Beneft. Please consult your registered representative for information concerning any such limitations.

Termination. The rider is irrevocable.

The Internal Revenue Code generally requires that interests in a qualified policy be nonforfeitable, and it is unclear whether the premium enhancement feature is consistent with those requirements. Consult a tax advisor before purchasing this policy as a qualified policy.

The Premium Enhancement^SM Rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Premium Enhancement^SM Rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Beneficiary Earnings Enhancement—Extra II

The optional Beneficiary Earnings Enhancement -Extra II rider pays an additional death benefit amount when a death benefit is payable during the accumultion phase under your policy, in certain circumstances. The Beneficiary Earnings Enhancement—Extra II is only available for issue ages through age 75.

Beneficiary Earnings Enhancement—Extra II Benefit Amount. An additional death benefit is only payable if a death benefit is paid on the base policy to which the rider is attached. The amount of the additional benefit is dependent on the amount of time that has passed since the rider date as follows:

• If a death benefit is payable within the first five years after the rider date, the additional benefit amount will be equal to the sum of all rider fees paid since the rider date.

• If a death benefit is payable after five years following the rider date, the additional benefit will be equal to the rider benefit base multiplied by the rider benefit percentage.

The rider benefit base at any time is equal to the policy value less any premiums added after the rider date.

The rider benefit percentage may vary but currently equals 30% for issue ages 0—70 and 20% for issue ages 71—75, based on the annuitant’s age.

No benefit is payable under the Beneficiary Earnings Enhancement—Extra II if the policy value on the date the death benefit is paid is less than the premium payments after the rider date.

For purposes of computing taxable gains, both the death benefit payable under the policy and the additional benefit will be considered.

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Please see “Appendix – Beneficiary Earnings Enhancement—Extra II—Additional Information” for an example that illustrates the additional death benefit payable as well as the effect of a partial surrender on the Beneficiary Earnings Enhancement—Extra II benefit amount.

Spousal Continuation. If a spouse, as the new owner of the policy, elects to continue the policy instead of receiving the death benefit and Beneficiary Earnings Enhancement—Extra II, then the spouse will receive a one-time policy value increase equal to the Beneficiary Earnings Enhancement—Extra II. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 75. Please note that under federal tax law, upon the death of an owner, only a “spouse” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

Rider Fee. A rider fee, currently 0.55% of the policy value, is deducted annually on each rider anniversary prior to annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider.

Please note: the rider fee is deducted pro rata from each investment choice. The fee is deducted even during periods when the rider would not pay any benefits.

Termination. The rider will remain in effect until:

• you cancel it by notifying our Administrative and Service Office in writing in good order,

• the policy is annuitized or surrendered, or

• the additional death benefit is paid or added to the policy value under a spousal continuation.

Once terminated, the Beneficiary Earnings Enhancement—Extra II may not be re-elected for one year.

The tax consequences associated with this rider are not clear. This rider may violate the requirements of certain qualified plans and IRAs. Consult a tax adviser before electing this rider for any qualified plan or IRA.

Please note: This feature terminates upon annuitization and there is a maximum annuity commencement date.

The Beneficiary Earnings Enhancement—Extra II may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Beneficiary Earnings Enhancement—Extra II. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Nursing Care and Terminal Condition Withdrawal Option

No surrender charges or excess interest adjustments will apply if you make a surrender ($1,000 minimum), under certain circumstances, because you or your spouse has been:

• confined in a hospital or nursing facility for 30 days in a row after the policy issue date; or

• diagnosed with a terminal condition after the policy issue date (usually a life expectancy of 12 months or less).

This benefit is also available to the annuitant or annuitant’s spouse if the owner is not a natural person.

You may exercise this benefit at any time (during the accumulation phase). There is no charge for this benefit.

There is no restriction on the maximum amount you may surrender under this benefit.

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This benefit may vary for certain policies, may not be available for all policies, and may not be available in all states.

Unemployment Waiver

No surrender charges or excess interest adjustments will apply to surrenders after you or your spouse become unemployed in certain circumstances: because you were terminated, laid off, or otherwise lost your job involuntarily. In order to qualify, you (or your spouse, whichever is applicable) must have been:

• employed full time for at least two years prior to becoming unemployed;

• employed full time on the policy date;

• unemployed for at least 60 days in a row at the time of surrender;

• must have a minimum cash value at the time of surrender of $5,000; and

• you (or your spouse) must be receiving unemployment benefits.

You must provide written proof from your State’s Department of Labor, which verifies that you qualify for and are receiving unemployment benefits at the time of surrender.

You may select this benefit at any time (during the accumulation phase) and there is no charge for this benefit.

This benefit is also available to the annuitant or annuitant’s spouse if the owner is not a natural person. There is no charge for this benefit.

There is no restricion on the maximum amount you may surrender under this benefit.

This benefit may vary for certain policies, may not be available for all policies, and may not be available in all states.

Telephone Transactions

You may generally make certain transactions by telephone upon our receipt of the appropriate authorization.

You will be required to provide certain information for identification purposes when requesting a transaction by telephone and we may record your telephone call. We may also require written confirmation of your request. We will not be liable for losses resulting from telephone requests that we believe are genuine. We reserve the right to revoke your telephone transaction privileges at any time without revoking all owners’ telephone transfer privileges.

Telephone requests must be received while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. We may discontinue this option at any time.

We may deny the telephone transaction privileges to market timers and frequent or disruptive traders.

We cannot guarantee that telephone transactions will always be available. For example, our offices may be closed during severe circumstances or other emergencies. There may be interruptions in service beyond our control, and if the volume of calls is unusually high, we might not have anyone available, or lines available, to take your call. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability in all circumstances.

Dollar Cost Averaging Program

During the accumulation phase, you may instruct us to automatically make transfers into one or more variable subaccounts in accordance with your allocation instructions. This is known as Dollar Cost Averaging. While Dollar Cost Averaging buys more accumulation units when prices are low and fewer accumulation units when prices are high, it does not guarantee profits or assure that you will not experience a loss.

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There are two Dollar Cost Averaging programs available under your policy:

• Traditional—You may specify the dollar amount to be transferred or the number of transfers. Transfers will begin as soon as the program is started. A minimum of $500 per transfer is required. The minimum number of transfers is 6 monthly or 4 quarterly, and the maximum is 24 monthly or 8 quarterly. You can elect to transfer from either the fixed account or money market (see the Dollar Cost Averaging election form).

• Special—You may only elect either a six or twelve month program. Transfers will begin as soon as the program is started. You cannot transfer from another investment choice into a Special Dollar Cost Averaging program. This program is only available for new premium, requires transfers from a fixed source, and may credit a higher or lower interest rate than a traditional program. A minimum of $500 per transfer is required ($3,000 or $6,000 to start a 6-month or 12-month program, respectively).

A Dollar Cost Averaging program will begin once we have received in good order all necessary information and the minimum required amount. See also Section 11. OTHER INFORMATION—Sending Forms and Transaction Requests in Good Order. Please note: Dollar Cost Averaging programs will not begin on the 29th, 30th, or 31st. If a program would have started on one of those dates, it will start on the 1st business day of the following month. If we receive additional premium payments while a Dollar Cost Averaging program is running, absent new instructions to the contrary, the amount of the Dollar Cost Averaging transfers will increase, but the length of the Dollar Cost Averaging program will not.

NOTE CAREFULLY:

IF:

• we do not receive all necessary information to begin an initial Dollar Cost Averaging program within 30 days of allocating the minimum required amount to a Dollar Cost Averaging program; or

• we do not receive the minimum required amount to begin an initial Dollar Cost Averaging program within 30 days of allocating an insufficient amount;

THEN:

• any amount in a fixed source will be transferred to the money market investment choice; and

• any amount in a variable source will remain in that variable investment choice; and

• new instructions will be required to begin a Dollar Cost Averaging program.

IF:

• we receive additional premium payments after a Dollar Cost Averaging program is completed and the additional premium meets the minimum requirements to start a Dollar Cost Averaging program;

THEN:

• the additional premium payments will be allocated according to the current payment allocations at that time and will not reactivate a completed Dollar Cost Averaging program. (New Dollar Cost Averaging instructions are required to start a new Dollar Cost Averaging program once the previous Dollar Cost Averaging program has completed.)

IF:

• we receive additional premium payments after a Dollar Cost Averaging program is completed, and the additional premium does not meet the minimum requirements to start a Dollar Cost Averaging program;

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THEN:

• we will, absent new instructions to the contrary, allocate the additional premium among the subaccounts as identified in the previous Dollar Cost Averaging program.

IF:

• you discontinue a Dollar Cost Averaging program before its completion;

THEN:

• we will, absent new instructions to the contrary, transfer any remaining balance directly into the subaccounts in the Dollar Cost Averaging instructions.

You should consider your ability to continue a Dollar Cost Averaging program during all economic conditions.

Transfers from a Dollar Cost Averaging fixed source are not subject to an excess interest adjustment.

A Dollar Cost Averaging program can be used in conjunction with a guaranteed minimum withdrawal benefit (subject to any investment restrictions involving the source).

There is no charge for this benefit.

The Dollar Cost Averaging Program may vary for certain policies, may not be available for all policies, and may not be available in all states. See your policy for availability of the fixed account options.

Asset Rebalancing

During the accumulation phase you can instruct us to automatically rebalance the amounts in your subaccounts to maintain your desired asset allocation. This feature is called Asset Rebalancing and can be started and stopped at any time. However, we will not rebalance if you are in the Dollar Cost Averaging program or if any other transfer is requested. If a transfer is requested, we will honor the requested

transfer and discontinue Asset Rebalancing. New instructions are required to start Asset Rebalancing. Asset Rebalancing ignores amounts in the fixed account. You can choose to rebalance monthly, quarterly, semi-annually, or annually.

Asset Rebalancing can be used in conjunction with a guaranteed minimum withdrawal benefit. Please note, any amounts rebalanced may be immediately transfered to the PAM investment choices as applicable under the Portfolio Allocation Method.

There is no charge for this benefit.

Guaranteed Lifetime Withdrawal Benefits

Important aspects of each of these riders are summarized in the Appendix—Guaranteed Lifetime Withdrawal benefit Comparison Table and are described in more detail below. You should consult with tax and financial professionals to determine which of these riders is appropriate for you.

The following benefits are no longer available for new sales, but if you have previously elected one of these riders you can still upgrade:

• 5 for Life^SM Rider

• 5 for Life^SM with Growth Rider

• Income Select^SM for Life Rider

• Retirement Income Choice^SM Rider

• Retirement Income Choice^® with Double Withdrawal Base Benefit Rider

Living Benefits Rider

You may elect to purchase the optional Living Benefits Rider (also known as Guaranteed Principal Solution Rider) which provides you with a guaranteed minimum accumulation benefit and a guaranteed minimum withdrawal benefit. The Living Benefits Rider is only available during the accumulation phase. The Living Benefits Rider is only available for annuitant issue ages through age 80. The maximum issue age may be lower if required by state law.

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You should view the Living Benefits Rider as a way to permit you to invest in variable investment choices while still having your policy value and liquidity protected to the extent provided by the Living Benefits Rider.

Please note:

• If you elect this rider, then you cannot also elect the Double Enhanced Death Benefit nor the 5% Annually Compounding Death Benefit options.

• Certain protections under the rider are available only if you hold the rider for ten years.

• If you elect the rider, we will monitor your policy value and we may transfer amounts back and forth between specified investment choices under the policy (including guaranteed period options in the fixed account) and the variable investment choices you choose, according to a mathematical model that we will use to assist us in managing portfolio risk and supporting the guarantees under the rider. See “Portfolio Allocation Method” below.

• Any such transfers out of a guaranteed period option may be subject to an excess interest adjustment. We intend to include among the specified investment choices fixed account options to which excess interest adjustments do not apply. (See “Portfolio Allocation Method,” below.)

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider for you to take withdrawals each rider year that are less than or equal to the maximum annual withdrawal amount. You should not purchase this rider if

you plan to take withdrawals in excess of the maximum annual withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• Because the guaranteed minimum withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the maximum annual withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take the maximum advantage of the tax deferral aspect of the policy.

• The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Living Benefits Rider for a qualified policy.

Guaranteed Minimum Accumulation Benefit of Living Benefit Rider

If you elect the Living Benefits Rider, we will provide a guaranteed future value. This benefit is intended to provide a level of protection regardless of the performance of the variable investment choices you select.

Guaranteed Future Value. We guarantee that, on the guaranteed future value date (ten years after you elect the rider), your policy value will at least equal your guaranteed future value. The guaranteed future value on the rider date (i.e., the date the rider is added to the policy) is the policy value(less any premium enhancements if the rider is added in the first policy year) . After the rider date and before the guaranteed future value date, the guaranteed future value is equal to:

• the guaranteed future value on the rider date; plus

• a percentage of subsequent premium payments (as described below); less

• subsequent adjusted partial withdrawals (as described below).

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After the guaranteed future value date, the guaranteed future value equals zero.

Subsequent Premium Payments. The percentage of subsequent premium payments that will be added to the guaranteed future value is as follows:

Rider Year	Percent of subsequent premium payments added to guaranteed future value
1	100%
2	90%
3	80%
4	70%
5	60%
6	50%
7	50%
8	50%
9	50%
10	0%

Guaranteed Future Value Adjusted Partial Withdrawals. If you take a partial withdrawal, even withdrawals under the guaranteed minimum withdrawal benefits, it will reduce your guaranteed future value. The amount of the reduction is referred to as the adjusted partial withdrawal amount, which will be equal to the greater of:

• the guaranteed future value immediately prior to the withdrawal multiplied by the percentage reduction in the policy value resulting from the gross partial withdrawal; or

• the gross partial withdrawal amount.

(The gross partial withdrawal amount is the amount you request, plus any may be subject to excess interest adjustments; and that may be applicable.)

In other words, if your policy value is greater than the guaranteed future value at the time you make a partial withdrawal, then your guaranteed future value is reduced by the same amount we reduce your policy value. However, if your policy value is less than the guaranteed future value at the time you make a

partial withdrawal, then your guaranteed future value will be reduced by more than the amount we reduce your policy value.

See the “Appendix—Living Benefits Rider Adjusted Partial Withdrawals” to this prospectus for examples showing the effect of hypothetical withdrawals in more detail, including withdrawals that reduce the guaranteed future value by more than the amount of the gross partial withdrawal.

Guaranteed Minimum Accumulation Benefit. On the guaranteed future value date (ten years after you elect the rider), if the policy value is less than the guaranteed future value, we will add an amount equal to the difference to your policy value (the policy value will then be subject to investment risk). This addition will not increase your “principal back” or “for life” total withdrawal bases. After the guaranteed future value date, the guaranteed minimum accumulation benefit will terminate.

Example. Assume you make a single premium payment of $100,000 and you do not make any withdrawals or additional premium payments. If, on the guaranteed future value date, your policy value has declined to $90,000 because of negative investment performance, then we will add $10,000 ($100,000 – $90,000) to your policy value.

Please note: You do not have any protection under the guaranteed minimum accumulation benefit unless you hold the policy with the rider for ten years. If you think that you may terminate the policy or elect to start receiving annuity payments (or if you must begin taking required minimum distributions) before the guaranteed future value date, electing the rider may not be in your best interests.

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Guaranteed Minimum Withdrawal Benefit of Living Benefit Rider

If you elect the Living Benefits Rider, we will provide a maximum annual withdrawal amount (first as withdrawals from your policy value or, if necessary, as payments from us) regardless of your policy value. This benefit is intended to provide a level of benefits regardless of the performance of the variable investment choices you select.

Withdrawal Guarantees. We account for the withdrawals you take under the rider by applying two different withdrawal guarantees:

• “principal back,” for withdrawals of up to 7% of your total withdrawal base.

• “for life,” for withdrawals of up to 5% of your total withdrawal base.

When you make a withdrawal, you do not need to specify it as being under either withdrawal guarantee. Any withdrawals that you take while the rider is in effect could have different impacts under each of the withdrawal guarantees—on your maximum annual withdrawal amount, on your total withdrawal base, and on your minimum remaining withdrawal amount. For example, withdrawals that are compliant with the “principal back” maximum withdrawal amount could result in excess withdrawals under the “for life” withdrawal guarantee and, consequently, would reduce the maximum annual withdrawal amount, the total withdrawal base, and the minimum remaining withdrawal amount under the “for life” withdrawal guarantee. (See “Adjusted Partial Withdrawals” below.)

Example. Assume you make a single premium payment of $100,000 and you have not made any withdrawals or additional premium payments. If you withdraw $6,000, that would be an excess withdrawal of $1,000 ($6,000—$5,000) under the for life guarantee but not under the principal back guarantee.

Your ability to change the frequency or amount of your withdrawals ceases if your policy value reaches zero.

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion. See “Appendix—Living Benefits Rider Adjusted Partial Withdrawals,” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the total withdrawal base by a pro rata amount.

Please note:

• Any amount withdrawn in a rider year (including any may be subject to excess interest adjustments; and) in excess of the maximum withdrawal amount is an excess withdrawal.

• The amount of your excess withdrawal will impact the maximum annual withdrawal amount, total withdrawal base, and minimum remaining withdrawal amount under each guarantee on a greater than dollar-for-dollar basis. (See “Maximum Annual Withdrawal Benefit,” “Total Withdrawal Base,” and “Minimum Remaining Withdrawal Amount,” below.)

Withdrawals under the guaranteed minimum withdrawal benefit also:

• reduce your policy value;

• reduce the guaranteed future value;

• reduce your death benefit and other benefits;

• may be subject to may be subject to excess interest adjustments; and; and

• may be subject to income taxes and federal tax penalties (See “Section 9. Taxes”).

Maximum Annual Withdrawal Amount. Under this benefit:

• you can withdraw up to 7% of your “principal back” total withdrawal base each rider year until your “principal back” minimum remaining withdrawal amount reaches zero;

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Example. Assume you make a single premium payment of $100,000 and that you do not make any withdrawals or additional premium payments. Assume that after five years, your policy value has declined to $70,000 solely because of negative investment performance. You could still receive up to $7,000 (7% of $100,000) each rider year for the next fourteen years and $2,000 in the year immediately thereafter so you would get back your full $100,000 (assuming that you do not withdraw more than $7,000 in any one rider year).

• or, you can withdraw up to 5% of your “for life” total withdrawal base each rider year starting with the rider anniversary immediately following the annuitant’s 59th birthday and lasting until the annuitant’s death, unless your “for life” minimum remaining withdrawal amount reaches zero because of “excess withdrawals” (see “Adjusted Partial Withdrawals,” below). A penalty tax may be assessed on amounts surrendered from the policy before the annuitant reaches age 59 ¹/2.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 55 years old. Assume you do not make any withdrawals or additional premium payments. Assume that after five years, your policy value has declined to $70,000 solely because of negative investment performance. You could still receive up to $5,000 (5% of $100,000) each rider year for the rest of your life (assuming that you do not withdraw more than $5,000 in any one rider year).

You can receive up to the maximum annual withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us) under this rider regardless of your policy value; however, once your policy value reaches zero you cannot make premium payments, and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated.

In order to continue withdrawals under this rider after your policy value reaches zero, you must select an amount (which can not exceed the maximum annual withdrawal amount at that time) and frequency (annually, quarterly or monthly) of future withdrawals. Once selected, the amount and frequency of future withdrawals cannot be changed.

Please note:

• Withdrawals under the 5% “for life” guarantee cannot begin until after the rider anniversary following the annuitant’s 59th birthday.

• Any withdrawal before the rider anniversary following the annuitant’s 59th birthday will reduce the benefits under the 5% “for life” guarantee.

• The maximum annual withdrawal amounts described above (the 7% “principal back” and 5% “for life”) are based on rider years, not calendar or policy years (if different from rider years).

• You cannot carry over any portion of your maximum annual withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the maximum annual withdrawal amount during a rider year, you cannot take more than the maximum annual withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• If you have a qualified policy, minimum required distribution rules may force you to take excess withdrawals to avoid the imposition of a 50% excise tax. Further, some qualified policies have withdrawal restrictions that may (with limited exceptions) prevent you from taking withdrawals before age 59 ¹/2. You should consult a tax advisor before purchasing this rider with a qualified policy.

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Total Withdrawal Base. We use the total withdrawal base to calculate the maximum annual withdrawal amount. The total withdrawal base on the rider date is the policy value(less any premium enhancements if the rider is added in the first policy year) . After the rider date, the total withdrawal base is equal to:

• the total withdrawal base on the rider date; plus

• subsequent premium payments; less

• subsequent adjusted partial withdrawals (as described below).

We will calculate separate total withdrawal bases for the “principal back” and “for life” guarantees.

Please note: We determine the total withdrawal base solely to calculate the maximum annual withdrawal amount. Your total withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

Minimum Remaining Withdrawal Amount. The minimum remaining withdrawal amount represents the total amount of guaranteed withdrawals still available under the rider. The minimum remaining withdrawal amount on the rider date is the policy value(less any premium enhancements if the rider is added in the first policy year) . After the rider date, the minimum remaining withdrawal amount is equal to:

• the minimum remaining withdrawal amount on the rider date; plus

• subsequent premium payments; less

• subsequent adjusted partial withdrawals (as described below).

We will calculate separate minimum remaining withdrawal amounts for the “principal back” and “for life” guarantees. It is important to calculate separate minimum remaining withdrawal amounts because they can provide different payment amounts not only

upon reaching exhaustion but also in certain situations involving continuation after the annuitant’s death.

Adjusted Partial Withdrawals. Each rider year, for each withdrawal guarantee (i.e., “principal back” and “for life”), gross partial withdrawals (the amount that you request be withdrawn, plus any may be subject to excess interest adjustments; and that may be applicable) up to the maximum annual withdrawal amount for that withdrawal guarantee, will reduce the minimum remaining withdrawal amount for that withdrawal guarantee on a dollar-for-dollar basis, but will not reduce the total withdrawal base for that withdrawal guarantee. For each withdrawal guarantee, gross partial withdrawals in excess of the maximum annual withdrawal amount for that withdrawal guarantee will reduce the total withdrawal base and minimum remaining withdrawal amount for that withdrawal guarantee by a pro rata amount (possibly to zero). See “Appendix—Living Benefits Rider Adjusted Partial Withdrawals,” which provides examples showing the effect of a withdrawal. Excess withdrawals may cause you to lose the withdrawal guarantees under this rider.

Please note: Gross partial withdrawals that are compliant with the “principal back” withdrawal guarantee (i.e., withdrawals of the “principal back” maximum annual withdrawal amount) and any partial withdrawal before the rider anniversary following the annuitant’s 59th birthday, will result in an excess partial withdrawal under the “for life” guarantee, and will reduce the “for life” maximum annual withdrawal amount, the “for life” total withdrawal base, and the “for life” minimum remaining withdrawal amount. Such reduction may be on a greater than dollar-for-dollar basis if the policy value is less than the applicable base.

Rider Fee. A rider fee, 0.90% of the “principal back” total withdrawal base on each rider anniversary, is charged annually before annuitization. We will also

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deduct the rider fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice. Generally, the rider fee is deducted regardless of your values (i.e., even if your policy value exceeds your total withdrawal base).

We will continue to calculate the rider fee using the “principal back” total withdrawal base even after the “principal back” minimum remaining withdrawal amount reaches zero. The “principal back” total withdrawal base is always greater than or equal to the “for life” total withdrawal base.

Please note: Because the rider fee is a percentage of your “principal back” total withdrawal base on each rider anniversary, the fee can be substantially more than 0.90% of your policy value if that total withdrawal base is higher than your policy value.

Portfolio Allocation Method

If you elect the Living Benefits Rider, the Portfolio Allocation Method (“PAM”) will automatically be in effect. PAM is designed to help manage portfolio risk and support the guarantees under the Living Benefits Rider. Using PAM, we will monitor your policy value and may transfer amounts back and forth between the PAM TA AEGON U.S. Government Securities—Service Class subaccount (which invests in the Transamerica AEGON U.S. Government Securities VP—Service Class portfolio of the Transamerica Series Trust) or certain guaranteed period options of the fixed account (each a “PAM investment choice” and collectively, the “PAM investment choices”) and the variable investment choices you choose. You should read the underlying fund prospectus for the variable PAM investment choice(s) carefully before you elect the Living Benefits Rider. We will transfer

amounts from your variable investment choices to the PAM investment choices to the extent we deem necessary to support the guarantees under the rider. We will transfer amounts to the PAM investment choices proportionally from all your variable investment choices. Currently, PAM transfers are being made to the PAM TA AEGON U.S. Government Securities—Service Class subaccount. We will not transfer amounts to the PAM investment choices if your policy is greater than guarantees under the rider.

PAM is designed to help reduce portfolio risk associated with negative performance. Using PAM, we will transfer amounts from your variable investment choices to the PAM investment choices to the extent we deem necessary to help manage portfolio risk and support the guarantees under the Living Benefits Rider. You should not view the Living Benefits Rider nor PAM as a “market timing” or other type of investment program designed to enhance your policy value. If you choose this rider, it may result in a lower policy value in certain situations. If policy value is transferred from your chosen variable investment choices to the PAM investment choices, less of your policy value may be available to participate in any future positive investment performance of your variable investment choices. This may potentially provide a lower policy value than if you did not select the Living Benefits Rider.

Under PAM, the mathematical model compares a number of interrelated factors including your policy value and the guarantees under the rider to be provided in the future. The mathematical model also uses assumptions for interest rates, the duration of the policy and stock market volatility. The following table sets forth the most influential of these factors and indicates how each one (assuming all other factors remain constant) could trigger a transfer into or out of the PAM subaccounts.

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Factor	Direction of Transfer
Policy Value Increases	Transfer to the investment options
Policy Value Decreases	Transfer to the PAM subaccounts
Interest Rates Increase	Transfer to the investment options
Volatility Increases	Transfer to the PAM subaccounts

The amount of the transfer will vary depending on the magnitude and direction of the change in these factors. We may transfer some or all of your policy value to or from the PAM investment choices.

Transactions you make also affect the number of PAM transfers including:

• additional premium payments; and

• excess withdrawals.

These transactions will change the policy value relative to the guarantees under the rider and may result in additional PAM transfers.

You may not allocate premium payments to, nor transfer policy value into or out of, the PAM investment choices. PAM transfers are not subject to any transfer fee and do not count against the number of any free transfers we allow. Transfers out of a fixed account PAM investment choice are at our discretionand may be subject to an excess interest adjustment if the transfer occurs before the end of a guarantee period. Any transfer to your variable investment choices will be allocated into your variable investment choices in proportion to the amount of policy value in each variable investment choice.

Generally, transfers to the PAM investment choices first occur when the policy value drops by a cumulative amount of 3% to 5% over any period of time, although we may make transfers to the PAM investment choices when the policy value drops by a cumulative amount of less than 3% in relation to the guarantees. If the policy value continues to fall, more

transfers to the PAM investment choices will occur. When a transfer occurs, the transferred policy value is allocated to the PAM investment choice(s) we deem appropriate. The policy value allocated to the PAM investment choices will remain there unless the performance of your chosen investment choices recovers sufficiently to enable us to transfer amounts back to your investment choices while maintaining the guarantees under the Living Benefits Rider. This generally occurs when the policy value increases by 5% to 10% in relation to the guarantees, although we may require a larger increase before transferring amounts back to your investment options.

The Daily Rebalancing Formula Under the Mathematical Model: As noted above, to limit our exposure under the rider, we transfer policy value from your investment options to the PAM subaccounts, to the extent called for by a mathematical model that will not change once you purchase the policy. We do this in order to minimize the need to provide payments (for example, when your policy value goes to zero by other than an excess withdrawal), or to extend the time before any payment is required. When payments become more likely (because your policy value is approaching zero), the mathematical model will tend to allocate more policy value to the PAM subaccounts. If, on the other hand, the policy value is much higher than the guarantees under the rider, then payments may not be necessary, and therefore, the mathematical model will tend to allocate more policy value to the investment options.

Each business day the mathematical model computes a “target allocation,” which is the portion of the policy value that is to be allocated to the investment options.

The target allocation depends on several factors, including the policy value as compared to the guarantees under the rider, the time until payments are likely required, and interest rates. However, as time passes, these factors change. Therefore, the target allocation changes from one business day to the next. The formula is:

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Percent of Policy Value required in PAM Subaccount (or X) = e^{-Divident*Time} * (1- NormDist(d1))

where:

e = Base of the Natural Logarithm

NormDist = Cumulative Standard Normal Distribution

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

In order to calculate the percent of policy value required in the PAM Subaccount, we must first calculate d1:

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

where:

ln = Natural Logarithm Function

G = Guarantee Ratio

R = Rate

F = Fees

V = Volatility

T = Time

See “Appendix—PAM Method Transfers” for more detail regarding the workings of the mathematical model.

Upgrades

Prior to the annuitant’s 86th birthday and after the third rider anniversary, you can upgrade the total withdrawal base and guaranteed future value to the policy value by providing us the required notice. The minimum remaining withdrawal amounts will also be upgraded to the policy value and the maximum annual withdrawal amounts will be recalculated.

If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date, guaranteed future value date, and its own rider fee percentage (which may be higher than your current rider fee percentage). The “principal back” and “for life” withdrawal percentages will not change. The new rider date will be the date the Company receives all necessary information.

Annuitization

If you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments equal to your 5% “for life” maximum annual withdrawal amount.

Termination

The Living Benefits Rider will terminate upon the earliest of the following:

• the date we receive written notice from you in good order requesting termination of the Living Benefits Rider (you may not terminate the rider before the third rider anniversary);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your 5% “for life” maximum annual withdrawal amount);

• the date the policy to which this rider is attached is assigned or the owner is changed without our approval;

• the date an excess withdrawal reduces your policy to zero; or

• termination of your policy.

Please note: This feature terminates upon annuitization and there is a maximum annuity commencement date.

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The Living Benefits Rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Living Benefits Rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

11. OTHER INFORMATION

Ownership

You, as owner of the policy, exercise all rights under the policy. You can change the owner at any time by notifying us in writing at our Administrative and Service Office. An ownership change may be a taxable event.

Beneficiary

The beneficiary designation will remain in effect until changed. The owner may change the designated beneficiary by sending written notice to the Company. The beneficiary’s consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the owner may then designate a new beneficiary.) The change will take effect as of the date the owner signs the written notice, whether or not the owner is living when the notice is received by the Company. The Company will not be liable for any payment made before the written notice is received in our Administrative and Service Office. If more than one beneficiary is designated, and the owner fails to specify their interests, they will share equally. If, upon the death of the annuitant, there is a surviving owner(s), then the surviving owner(s) automatically takes the place of any beneficiary designation.

Right to Cancel Period

You may return your policy for a refund, but only if you return it within a prescribed period, which is generally 10 days (after you receive the policy), or whatever longer time may be required by state law.

The amount of the refund will generally be the premiums paid plus or minus accumulated gains or losses in the separate account. You bear the risk of any decline in policy value during the right to cancel period. However, if state law requires, we will refund your original premium payment(s). We will pay the refund within seven days after we receive in good order within the applicable period at our Administrative and Service Office, written notice of cancellation and the returned policy. The policy will then be deemed void.

Assignment

You can also generally assign the policy any time during your lifetime. We will not be bound by the assignment until we receive written notice of the assignment in good order at our Administrative and Service Office and approve it. We reserve the right, except to the extent prohibited by applicable laws, regulations, or actions of the State insurance commissioner, to require that an assignment will be effective only upon acceptance by us, and to refuse assignments or transfers at any time on a non-discriminatory basis. We will not be liable for any payment or other action we take in accordance with the policy before we approve the assignment. There may be limitations on your ability to assign a qualified policy. An assignment may have tax consequences.

Sending Forms and Transaction Requests in Good Order

We cannot process your requests for transactions relating to the policy until they are received in good order. “Good order” means the actual receipt of the instructions relating to the requested transaction in writing (or, when appropriate, by telephone or electronically), along with all forms, information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes, to the extent applicable to the transaction: your completed application; the policy

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number; the transaction amount (in dollars or percentage terms); the names and allocations to and/or from the Subaccounts affected by the requested transaction; the signatures of all policy owners (exactly as registered on the Policy) if necessary; Social Security Number or Taxpayer I.D.; and any other information or supporting documentation that we may require, including any spousal or joint owner’s consents. With respect to purchase requests, “good order” also generally includes receipt of sufficient funds to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time.

“Received” or receipt in good order generally means that everything necessary must be received by us, at our Administrative and Service Office specified in the Glossary of Terms. However, in certain cases where applications or transaction requests are transmitted electronically through or by a broker/dealer, “receipt” can mean the point in time when the application or transaction request is electronically transmitted by the broker/dealer (or other financial intermediary), provided that we actually receive the application or transaction request promptly and in good order. We reserve the right to reject electronic transactions that do not meet our requirements.

Mixed and Shared Funding

Before making a decision concerning the allocation of premium payments to a particular subaccount, please read the prospectuses for the underlying fund portfolios. The underlying fund portfolios are not limited to selling their shares to this separate account and can accept investments from any insurance company separate account or qualified retirement plan. Since the underlying fund portfolios are available to registered separate accounts offering variable annuity products of the Company, as well as variable annuity and variable life products of other insurance companies, and qualified retirement plans,

there is a possibility that a material conflict may arise between the interests of this separate account and one or more of the other separate accounts of another participating insurance company. In the event of a material conflict, the affected insurance companies, including the Company, agree to take any necessary steps to resolve the matter. This may include removing their separate accounts from the underlying fund portfolios. See the underlying fund portfolios prospectuses for more details.

Exchanges and Reinstatements

You can generally exchange one annuity policy for another in a “tax-free exchange” under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both annuities carefully. Remember that if you exchange another annuity for the one described in this prospectus, then you may pay a surrender charge on the other annuity, and there will be a new surrender charge period under this annuity and other charges may be higher (or lower) and the benefits under this annuity may be different. You should not exchange another annuity for this one unless you determine, after knowing all the facts, that the exchange is in your best interest and not just better for the person trying to sell you this policy (that person will generally earn a commission if you buy this policy through an exchange or otherwise).

You may surrender your policy and transfer your money directly to another life insurance company (sometimes referred to as a 1035 Exchange or a trustee-to-trustee transfer). You may also ask us to reinstate your policy after such a transfer and in certain limited circumstances we will allow you to do so by returning the same total dollar amount of funds to the applicable investment choices. The dollar amount will be used to purchase new accumulation units at the then current price. Because of changes in market value, your new accumulation units may be worth more or less than the units you previously owned. We recommend that you consult a tax professional to explain the possible tax consequences of exchanges and/or reinstatements.

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Voting Rights

To the extent required by law, the Company will vote all shares of the underlying fund portfolios held in the separate account in accordance with instructions we receive from you and other owners that have voting interests in the portfolios. We will send you and other owners requests for instructions on how to vote those shares. When we receive those instructions, we will vote all of the shares in proportion to those instructions. Accordingly, it is possible for a small number of policy owners (assuming there is a quorum) to determine the outcome of a vote, especially if they have large policy values. If, however, we determine that we are permitted to vote the shares in our own right, we may do so.

Each person having a voting interest will receive proxy material, reports, and other materials relating to the appropriate portfolio.

Legal Proceedings

There are no legal proceedings to which the separate account is a party or to which the assets of the separate account are subject. The Company, like other life insurance companies, is involved in lawsuits. In some class action and other lawsuits involving other insurers, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation cannot be predicted with certainty, the Company believes that at the present time there are no pending or threatened lawsuits that are reasonably likely to have a material adverse impact on the separate account, on the ability of Transamerica Capital, Inc., to perform under its principal underwriting agreement, or on the ability of the Company to meet its obligations under the policy.

Western Reserve Life Assurance Co. of Ohio

Western Reserve Life Assurance Co. of Ohio was incorporated under the laws of the State of Ohio on October 1, 1957. It is engaged in the business of writing life insurance policies and annuity contracts. The Company is a wholly-owned indirect subsidiary of Transamerica Corporation which conducts most of its operations through subsidiary companies engaged in the insurance business or in providing non-insurance financial services. All of the stock of Transamerica Corporation is indirectly owned by AEGON N.V. of The Netherlands, the securities of which are publicly traded. AEGON N.V., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business. The Company is licensed in the District of Columbia, Guam, Puerto Rico, and all states except New York.

All obligations arising under the policies, including the promise to make annuity payments, are general corporate obligations of the Company. Accordingly, no financial institution, brokerage firm or insurance agency is responsible for the financial obligations of the Company arising under the policies.

Financial Condition of the Company

We pay benefits under your policy from our general account assets and/or from your policy value held in the separate account. It is important that you understand that payments of the benefits depend upon certain factors discussed below.

Assets in the Separate Account.You assume all of the investment risk for your policy value that is allocated to the subaccounts of the separate account. Your policy value in those subaccounts constitutes a portion of the assets of the separate account. These assets are segregated and insulated from our general account, and may not be charged with liabilities arising from any other business that we may conduct.

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Assets in the General Account. You also may be permitted to make allocations to guaranteed period options of the fixed account, which are supported by the assets in our general account. Any guarantees under a policy that exceed policy value, such as those associated with any lifetime withdrawal benefit riders and any optional death benefits, are paid from our general account (and not the separate account). Therefore, any amounts that we may be obligated to pay under the policy in excess of policy value are subject to our financial strength and claims-paying ability and our long-term ability to make such payments. The assets of the separate account, however, are also available to cover the liabilities of our general account, but only to the extent that the separate account assets exceed the separate account liabilities arising under the policies supported by it.

We issue other types of insurance policies and financial products as well, and we also pay our obligations under these products from our assets in the general account.

Our Financial Condition. As an insurance company, we are required by state insurance regulation to hold a specified amount of reserves in order to meet all the contractual obligations of our general account. In order to meet our claims-paying obligation we monitor our reserves so that we hold sufficient amounts to cover actual or expected policy and claims payments. However, it is important to note that there are risks to purchasing any insurance product.

State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurer’s operations. These risks include those associated with losses that we may incur as the result of defaults on the payment of interest or principal on our general account assets,

which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investments.

How to Obtain More Information. We encourage both existing and prospective policy owners to read and understand our financial statements. We prepare our financial statements on a statutory basis. Our financial statements, which are presented in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance as well as the financial statements of the separate account—are located in the statement of Additional Information (SAI). For a free copy of the SAI, simply call or write us at the phone number or address of our Administrative and Service Office referenced in this prospectus. In addition, the SAI’s available on the SEC’s website at http://www.sec.gov. Our financial strength can be found on our website.

The Separate Account

The Company established a separate account, called Separate Account VA U, under the laws of the State of Ohio on August 4, 2003. The separate account receives and invests the premium payments that are allocated to it for investment in shares of the underlying fund portfolios.

The separate account is registered with the SEC as a unit investment trust under the 1940 Act. However, the SEC does not supervise the management, the investment practices, or the policies of the separate account or the Company. Income, gains and losses (whether or not realized), from assets allocated to the separate account are, in accordance with the policies, credited to or charged against the separate account without regard to the Company’s other income, gains or losses.

The assets of the separate account are held in the Company’s name on behalf of the separate account and belong to the Company. However, those assets that underlie the policies are not chargeable with

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liabilities arising out of any other business the Company may conduct. The separate account may include other subaccounts that are not available under these policies.

Distribution of the Policies

Distribution and Principal Underwriting Agreement. We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (TCI), for the distribution and sale of the policies. We pay commissions to TCI which are passed through to selling firms. (See below). We also pay TCI an “override” that is a percentage of total commissions paid on sales of our policies which is not passed through to the selling firms and we may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies. TCI markets the policies through bank affiliated firms, national brokerage firms, regional and independent broker-dealers and independent financial planners.

Compensation to Broker-Dealers Selling the Policies. The policies are offered to the public through broker-dealers (“selling firms”) that are licensed under the federal securities laws; the selling firm and/or its affiliates are also licensed under state insurance laws. The selling firms have entered into written selling agreements with us and with TCI as principal underwriter for the policies. We pay commissions through TCI to the selling firms for their sales of the policies.

A limited number of affiliated and unaffiliated broker-dealers may also be paid commissions and overrides to “wholesale” the policies, that is, to provide sales support and training to sales representatives at the selling firms. We also provide compensation to a limited number of broker-dealers for providing ongoing service in relation to the policies that have already been purchased.

The selling firms that have selling agreements with us and TCI are paid commissions for the promotion and sale of the policies according to one or more schedules. The amount and timing of commissions may vary depending on the selling agreement, but the maximum commission is 8.65% of premiums (additional amounts may be paid as overrides to wholesalers).

To the extent permitted by Financial Industry Regulatory Authority (FINRA) rules, Western Reserve, Transamerica Financial Advisors, Inc. (TFA) and other affliated parties may pay (or allow other broker-dealers to provide) promotional incentives or payments in the form of cash or non-cash compensation or reimbursement to some, but not all, selling firms and their sales representatives. These arrangements are sometimes referred to as “revenue sharing” arrangements and are described further below.

The sales representative who sells you the policy typically receives a portion of the compensation we (and our affiliates) pay to the selling firms, depending on the agreement between the selling firm and its registered representative and the firm’s internal compensation program. These programs may include other types of cash and non-cash compensation and other benefits. Ask your sales representative for further information about the compensation your sales representative, and the selling firm that employs your sales representative, may receive in connection with your purchase of a policy. Also inquire about any revenue sharing arrangements that we and our affiliates may have with the selling firm, including the conflicts of interests that such arrangements may create.

You should be aware that a selling firm or its sales representatives may receive different compensation or incentives for selling one product over another. In some cases, these differences may create an incentive for the selling firm or its sales representatives to recommend or sell this policy to you. You may wish to take such incentives into account when considering and evaluating any recommendation relating to the policies.

71

Special Compensation For Affiliated Wholesaling and Selling Firms. Our parent company provides paid-in capital to TCI and pays the cost of TCI’s operating and other expenses, including costs for facilities, legal and accounting services, and other internal administrative functions.

Western Reserve’s two main distribution channels are TFA and WGS, both affiliates, who sell Western Reserve products.

Western Reserve covers the cost of TFA’s various facilities, third-party services and internal administrative functions, including employee salaries, sales representative training and computer systems, that are provided directly to TFA. These facilities and services are necessary for TFA’s administration and operation, and Western Reserve is compensated by TFA for these expenses based on TFA’s usage. In addition, Western Reserve and other affiliates pay for certain sales expenses of TFA, including the costs of preparing and producing prospectuses and sales promotional materials for the policy.

TFA pays its branch managers a portion of the commissions received from Western Reserve for the sale of the policies. Sales representatives receive a portion of the commissions for their sales of policies in accordance with TFA’s internal compensation programs.

To support its sales of Western Reserve’s variable annuity products, WGS receives an expense allowance of 0.35% of the annual annuity premiums paid on variable annuities sold by WGS. Sales representatives receive a portion of the commissions for their sales of policies in accordance with WGS’s internal compensation programs.

Sales representatives and their managers at TFA and WGS may receive, directly or indirectly, additional cash benefits and non-cash compensation or reimbursements from us or our affiliates. Additional compensation or reimbursement arrangements may include payments in connection with TFA’s and WGS’s conferences or seminars, sales or training programs for invited selling representatives and other employees, seminars for the public, trips (such as travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items, and payments, loans, loan guaranties, or loan forgiveness to assist a firm or a representative in connection with systems, operating, marketing and other business expenses. The amounts may be significant and may provide us with increased access to the sales representatives.

In addition, TFA’s managers and/or sales representatives who meet certain productivity standards may be eligible for additional compensation. Sales of the policies by affiliated selling firms may help sales representatives and/or their managers qualify for certain cash and non-cash benefits, and may provide such persons with special incentive to sell our policies. For example, TFA’s and WGS’s registered representatives, general agents, marketing directors and supervisors may be eligible to participate in a voluntary stock purchase plan that permits participants to purchase stock of AEGON N.V. (Western Reserve’s ultimate parent) by allocating a portion of the commissions they earn to purchase such shares. A portion of the contributions of commissions by ISI’s representatives may be matched by TFA.

TFA’s and WGS’s registered representatives may also be eligible to participate in a stock option and award plan. Registered representatives who meet certain production goals will be issued options on the stock of AEGON N.V.

72

Additional Compensation that We, TCI and/or our Affiliates Pay to Selected Selling Firms. We may pay certain selling firms additional cash amounts for “preferred product” treatment of the policies in their marketing programs in order to receive enhanced marketing services and increased access to their sales representatives. In exchange for providing us with access to their distribution network, such selling firms may receive additional compensation or reimbursement for, among other things, the hiring and training of sales personnel, marketing, sponsoring of conferences, meetings, seminars, and events and/or other services they provide to us and our affiliates. To the extent permitted by applicable law, we and other parties may allow other non-cash incentives and compensation to be paid to these selling firms. These special compensation arrangements are not offered to all selling firms, and the terms of such arrangements may differ between selling firms.

Special compensation arrangements are calculated in different ways by different selling firms and may be based on past or anticipated sales of the Policies or other criteria.

Overrides we paid on certain products to our affiliates, TFA and Life Investors Financial Group, in 2011 .

No specific charge is assessed directly to Policy owners or the separate account to cover commissions and other incentives or payments described above.

We do intend to recoup commissions and other sales expenses and incentives we pay, however, through fees and charges deducted under the policy and other corporate revenue.

TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

Glossary of Terms

The Policy—General Provisions

Certain Federal Income Tax Consequences

Investment Experience

Historical Performance Data

Published Ratings State Regulation of Western Reserve Life Assurance Co. of Ohio

Administration

Records and Reports

Distribution of the Policies

Voting Rights

Other Products

Custody of Assets

Legal Matters Independent Registered Public Accounting Firm

Other Information

Financial Statements

Appendix A—Condensed Financial Information

73

APPENDIX

PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS

Please Note: The Company reserves the right to change investment choices made by purchasers of the Living Benefits Rider as we deem necessary to support the guarantees under this rider.

SUBACCOUNT(1)	PORTFOLIO	ADVISOR/SUBADVISOR
ACCESS ONE TRUST
Access VP High Yield FundSM	Access VP High Yield FundSM	ProFund Advisors LLC
Investment Objective: To correspond generally to the total return of the high yield market consistent with maintaining reasonable liquidity.
ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.
AllianceBernstein Balanced Wealth Strategy Portfolio—Class B	AllianceBernstein Balanced Wealth Strategy Portfolio - Class B	AllianceBernstein L.P.
Investment Objective: Maximize total return consistent with the Adviser’s determination of reasonable risk.
FIDELITY® VARIABLE INSURANCE PRODUCTS FUND
Fidelity® VIP Index 500 Portfolio – Service Class 2	Fidelity® VIP Index 500 Portfolio—Service Class 2	Fidelity Management & Research Company and Geode Capital Management, LLC as subadviser
Investment Objective: Seeks investment results that correspond to the total return of common stocks publicly traded in the United States, asrepresented by the S&P 500® Index.
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
Franklin Templeton VIP Founding Funds Allocation Fund—Class 4	Franklin Templeton VIP Founding Funds Allocation Fund—Class 4	Franklin Templeton Services, LLC
Investment Objective: Capital appreciation with a secondary goal of income.
PROFUNDS
ProFund VP Asia 30	ProFund VP Asia 30	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the ProFunds Asia 30 Index.
ProFund VP Basic Materials	ProFund VP Basic Materials	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Dow Jones U.S. Basic MaterialsSM.
ProFund VP Bull	ProFund VP Bull	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the S&P 500 ® Index.
ProFund VP Consumer Services	ProFund VP Consumer Services	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Dow Jones U.S. Consumer ServicesSM Index.
ProFund VP Emerging Markets	ProFund VP Emerging Markets	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of The Bank of New York Mellon Emerging Markets 50 ADR® Index.
ProFund VP Europe 30	ProFund VP Europe 30	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the ProFunds Europe 30 Index.
ProFund VP Falling US Dollar	ProFund VP Falling US Dollar	ProFund Advisors LLC
Investment Objective: Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the basket ofcurrencies included in the U.S. Dollar Index
ProFund VP Financials	ProFund VP Financials	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Dow Jones U.S. FinancialsSM Index.
ProFund VP International	ProFund VP International	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Morgan Stanley Capital International Europe Australasia Far East (“MSCI EAFE”) Index.
ProFund VP Japan	ProFund VP Japan	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Nikkei 225 Stock Average.
ProFund VP Mid-Cap	ProFund VP Mid-Cap	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the S&P MidCap 400 ® .
ProFund VP Money Market (2)	ProFund VP Money Market (2)	ProFund Advisors LLC
Investment Objective: Seeks a high level of current income consistent with liquidity and preservation of capital.

74

PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS—(Continued)

SUBACCOUNT(1)	PORTFOLIO	ADVISOR/SUBADVISOR
ProFund VP NASDAQ-100	ProFund VP NASDAQ-100	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the NASDAQ-100 Index.
ProFund VP Oil & Gas	ProFund VP Oil & Gas	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Dow Jones U.S. Oil and GasSM Index.
ProFund VP Pharmaceuticals	ProFund VP Pharmaceuticals	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Dow Jones U.S. PharmaceuticalsSM Index.
ProFund VP Precious Metals	ProFund VP Precious Metals	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Dow Jones Precious MetalsSM Index.
ProFund VP Short Emerging Markets	ProFund VP Short Emerging Markets	ProFund Advisors LLC
Investment Objective: Seeks daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of The Bank of New York Mellon Emerging Markets 50 ADR® Index.
ProFund VP Short International	ProFund VP Short International	ProFund Advisors LLC
Investment Objective: Seeks daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of Morgan Stanley Capital International Europe Australasia Far East (“MSCI EAFE”) Index.
ProFund VP Short NASDAQ-100	ProFund VP Short NASDAQ-100	ProFund Advisors LLC
Investment Objective: Seeks daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of the NASDAQ-100® Index.
ProFund VP Short Small-Cap	ProFund VP Short Small-Cap	ProFund Advisors LLC
Investment Objective: Seeks daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of Russell 2000® Index.
ProFund VP Small-Cap	ProFund VP Small-Cap	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Russell 2000 ® Index.
ProFund VP Small-Cap Value	ProFund VP Small-Cap Value	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the S&P SmallCap 600 ® Value Index.
ProFund VP Telecommunications	ProFund VP Telecommunications	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to the performance of the Dow Jones U.S. TelecommunicationsSM Index.
ProFund VP UltraSmall-Cap	ProFund VP UltraSmall-Cap	ProFund Advisors LLC
Investment Objective: Seeks daily investment results, before fees and expenses, that correspond to twice (200%) of the daily performance of the Russell 2000® Index.
ProFund VP U.S. Government Plus	ProFund VP U.S. Government Plus	ProFund Advisors LLC
Investment Objective: Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Russell 2000® Index.
ProFund VP Utilities	ProFund VP Utilities	ProFund Advisors LLC
Investment Objective: Seeks investment results, before fees and expenses, that correspond to one and one quarter (125%) the movement of themost recently issued 30-Year U.S. Treasury Bond.
TRANSAMERICA SERIES TRUST
TA AEGON High Yield Bond—Service Class	Transamerica AEGON High Yield Bond VP – Service Class	AEGON USA Investment Management, LLC
Investment Objective: High level of current income by investing in high-yield debt securities.
TA AEGON Money Market—Service Class(2)	Transamerica AEGON Money Market VP – Service Class	AEGON USA Investment Management, LLC
Investment Objective: Maximum current income from money market securities consistent with liquidity and preservation of principal.
TA AEGON Tactical Vanguard ETF—Conservative—Service Class	Transamerica AEGON Active Asset Allocation—Conservative VP—Service Class	AEGON USA Investment Management, LLC
Investment Objective: Current income and preservation of capital.
TA AEGON Tactical Vanguard ETF—Growth—Service Class	Transamerica AEGON Active Asset Allocation—Moderate Growth VP—Service Class	AEGON USA Investment Management, LLC
Investment Objective: Capital appreciation with current income as secondary objective.

75

PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS—(Continued)

SUBACCOUNT(1)	PORTFOLIO	ADVISOR/SUBADVISOR
TA AEGON U.S. Government Securities—Service Class	Transamerica AEGON U.S. Government Securities VP—Service Class	AEGON USA Investment Management, LLC
Investment Objective: High level of total return as is consistent with prudent investment strategies.
TA AllianceBernstein Dynamic Allocation—Service Class	Transamerica AllianceBernstein Dynamic Allocation VP—Service Class	Alliance Bernstein L.P.
Investment Objective: Capital appreciation and current income.
TA Asset Allocation—Conservative—Service Class	Transamerica Asset Allocation—Conservative VP—Service Class	Transamerica Asset Management, Inc.(3)
Investment Objective: Current income and preservation of capital.
TA Asset Allocation—Growth—Service Class	Transamerica Asset Allocation—Growth VP—Service Class	Transamerica Asset Management, Inc.(3)
Investment Objective: Long-term capital appreciation.
TA Asset Allocation—Moderate—Service Class	Transamerica Asset Allocation—Moderate VP—Service Class	Transamerica Asset Management, Inc.(3)
Investment Objective: Capital appreciation and current income.
TA Asset Allocation—Moderate Growth—Service Class	Transamerica Asset Allocation—Moderate Growth VP—Service Class	Transamerica Asset Management, Inc.(3)
Investment Objective: Capital appreciation with current income as a secondary objective.
TA BlackRock Large Cap Value—Service Class	Transamerica BlackRock Large Cap Value VP—Service Class	BlackRock Investment Management, LLC
Investment Objective: Long-term capital growth.
TA Clarion Global Real Estate Securities—Service Class	Transamerica Clarion Global Real Estate Securities VP—Service Class	CBRE Clarion Securities, LLC
Investment Objective: Long-term total return from investments primarily in equity securities of real estate companies. Total return consists of realized and unrealized capital gains and losses plus income.
TA Efficient Markets—Service Class	Transamerica Efficient Markets VP—Service Class	AEGON USA Investment Management, LLC
Investment Objective: Capital appreciation while seeking income as a secondary objective.
TA Hanlon Balanced—Service Class	Transamerica Hanlon Balanced VP—Service Class	Hanlon Investment Management, Inc.
Investment Objective: Current income and capital appreciation.
TA Hanlon Growth—Service Class	Transamerica Hanlon Growth VP—Service Class	Hanlon Investment Management, Inc.
Investment Objective: Long-term capital appreciation.
TA Hanlon Growth and Income—Service Class	Transamerica Hanlon Growth and Income VP—Service Class	Hanlon Investment Management, Inc.
Investment Objective: Capital appreciation and some current income.
TA Hanlon Income—Service Class	Transamerica Hanlon Income VP—Service Class	Hanlon Investment Management, Inc.
Investment Objective: Conservative stability.
TA International Moderate Growth—Service Class	Transamerica International Moderate Growth VP—Service Class	Transamerica Asset Management, Inc.(3)
Investment Objective: Capital appreciation with current income as a secondary objective.
TA JPMorgan Core Bond—Service Class	Transamerica JPMorgan Core Bond VP—Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Total return, consisting of current income and capital appreciation.
TA JPMorgan Enhanced Index—Service Class	Transamerica JPMorgan Enhanced Index VP—Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Earn a total return modestly in excess of the total return performance of the Standard & Poor’s 500 Index (including thereinvestment of dividends) while maintaining a volatility of return similar to the S&P 500 Index.
TA JPMorgan Tactical Allocation—Service Class	Transamerica JPMorgan Tactical Allocation VP—Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Current income and preservation of capital.

76

PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS—(Continued)

SUBACCOUNT(1)	PORTFOLIO	ADVISOR/SUBADVISOR
TA Janus Balanced—Service Class	Transamerica Janus Balanced VP—Service Class	Janus Capital Management LLC
Investment Objective: Long-term capital growth, consistent with preservation of capital and balanced by current income.
TA Jennison Growth—Service Class	Transamerica Jennison Growth VP— Service Class	Jennison Associates LLC
Investment Objective: Long-term growth of capital.
TA Legg Mason Dynamic Allocation—Balanced—Service Class(4)	Transamerica Legg Mason Dynamic Allocation—Balanced VP—Service Class	Legg Mason Global Asset Allocation, LLC
Investment Objective: Seeks capital appreciation and income.
TA Legg Mason Dynamic Allocation—Growth—Service Class(4)	Transamerica Legg Mason Dynamic Allocation—Growth VP—Service Class	Legg Mason Global Asset Allocation, LLC
Investment Objective: Seeks capital appreciation and income.
TA MFS International Equity—Service Class	Transamerica MFS International Equity VP—Service Class	MFS® Investment Management
Investment Objective: Long-term capital appreciation.
TA Morgan Stanley Capital Growth—Service Class	Transamerica Morgan Stanley Capital Growth VP—Service Class	Morgan Stanley Investment Management Inc.
Investment Objective: Maximize long-term growth.
TA Morgan Stanley Mid Cap Growth—Service Class	Transamerica Morgan Stanley Mid-Cap Growth VP—Service Class	Morgan Stanley Investment Management Inc.
Investment Objective: Capital appreciation.
TA Multi-Managed Balanced—Service Class	Transamerica Multi-Managed Balanced VP—Service Class	J.P. Morgan Investment Management Inc. and BlackRock Financial Management, Inc.
Investment Objective: High total investment return through investments in a broadly diversified portfolio of stock, bonds and money marketinstruments.
TA PIMCO Total Return—Service Class	Transamerica PIMCO Total Return VP—Service Class	Pacific Investment Management Company LLC
Investment Objective: Maximum total return consistent with preservation of capital and prudent investment management.
TA Systematic Small Mid Cap Value—Service Class	Transamerica Systematic Small/Mid Cap Value VP—Service Class	Systematic Financial Management L.P.
Investment Objective: Maximize total return.
TA T. Rowe Price Small Cap—Service Class	Transamerica T. Rowe Price Small Cap VP—Service Class	T. Rowe Price Associates, Inc.
Investment Objective: Long-term growth of capital by investing primarily in common stocks of small growth companies.
TA Third Avenue Value—Service Class	Transamerica Third Avenue Value VP—Service Class	Third Avenue Management LLC
Investment Objective: Long-term capital appreciation.
TA Vanguard ETF Index—Aggressive Growth—Service Class	Transamerica Index 100 VP—Service Class	AEGON USA Investment Management, LLC
Investment Objective: Long-term capital appreciation.
TA Vanguard ETF Index—Balanced—Service Class	Transamerica Index 50 VP—Service Class	AEGON USA Investment Management, LLC
Investment Objective: Balance capital appreciation and income.
TA Vanguard ETF Index—Conservative—Service Class	Transamerica Index 35 VP—Service Class	AEGON USA Investment Management, LLC
Investment Objective: Current income and preservation of capital.
TA Vanguard ETF Index—Growth—Service Class	Transamerica Index 75 VP—Service Class	AEGON USA Investment Management, LLC
Investment Objective: Capital appreciation as a primary objective and income as a secondary objective.
TA WMC Diversified Growth—Service Class	Transamerica WMC Diversified Growth VP—Service Class	Wellington Management Company, LLP
Investment Objective: Maximize long-term growth.

⁽¹⁾  Some subaccounts may be available for certain policies and may not be available for all policies. You should work with your registered representative to decide which subaccount(s) may be appropriate for you based on a thorough analysis of your particular insurance needs; financial objectives; investment goals; time horizons; and risk tolerance.

77

PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS—(Continued)

⁽²⁾ There can be no assurance that the Transamerica AEGON Money Market VP—Service Class portfolio or the ProFund Money Market VP portfolio will be able to maintain a stable net asset value per share. During extended periods of low interest rates, and partly as a result of policy charges, the yield on the TA AEGON Money Market—Service Class subaccount or the ProFund Money Market VP subaccount may become extremely low and possibly negative.

⁽³⁾ Effective on or about April 17, 2012, formerly subadvised by Morningstar Associates, LLC.

⁽⁴⁾  Available on or about May 1, 2012, this fund may vary for certain policies and may not be available for all policies.

78

APPENDIX

CONDENSED FINANCIAL INFORMATION

The following tables list the accumulation unit value information for accumulation units outstanding for policies with the highest total separate account expenses and policies with the lowest total separate account expenses (excluding any applicable fund facilitation fees) available on December 31, 2011. Should the total separate account expense applicable to your policy fall between the highest and lowest charges, AND you wish to see a copy of the Condensed Financial Information applicable to your policy, such information is contained in the SAI. You can obtain a copy of the SAI FREE OF CHARGE by contacting us at:

calling:	1-800-851-9777
writing:	Western Reserve Life Assurance Co. of Ohio 4333 Edgewood Road NE Cedar Rapids, IA 52499-0001

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.197129	$	1.199616		0
Subaccount Inception Date January 12, 2004		2010	$	1.124923	$	1.197129		0
		2009	$	0.919985	$	1.124923		0
		2008	$	1.195769	$	0.919985		221,256
		2007	$	1.150874	$	1.195769		222,480
		2006	$	1.077074	$	1.150874		223,710
		2005	$	1.047686	$	1.077074		224,948
		2004	$	1.000000	$	1.047686		0
TA Asset Allocation - Growth - Service Class		2011	$	1.188966	$	1.097686		0
Subaccount Inception Date January 12, 2004		2010	$	1.059340	$	1.188966		0
		2009	$	0.835330	$	1.059340		0
		2008	$	1.416539	$	0.835330		1,170
		2007	$	1.345767	$	1.416539		221,881
		2006	$	1.192441	$	1.345767		231,567
		2005	$	1.088240	$	1.192441		230,921
		2004	$	1.000000	$	1.088240		189,843
TA Asset Allocation - Moderate - Service Class		2011	$	1.234505	$	1.212106		3,358
Subaccount Inception Date January 12, 2004		2010	$	1.144970	$	1.234505		3,390
		2009	$	0.926794	$	1.144970		42,481
		2008	$	1.282832	$	0.926794		45,169
		2007	$	1.216483	$	1.282832		97,938
		2006	$	1.117290	$	1.216483		98,197
		2005	$	1.065294	$	1.117290		54,973
		2004	$	1.000000	$	1.065294		52,510
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.231734	$	1.178414		11,196
Subaccount Inception Date January 12, 2004		2010	$	1.119357	$	1.231734		11,303
		2009	$	0.894203	$	1.119357		73,862
		2008	$	1.361874	$	0.894203		74,620
		2007	$	1.293548	$	1.361874		69,211
		2006	$	1.163732	$	1.293548		69,288
		2005	$	1.083498	$	1.163732		69,370
		2004	$	1.000000	$	1.083498		142,308

79

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA International Moderate Growth - Service Class		2011	$	0.928429	$	0.840438		9,893
Subaccount Inception Date May1, 2006		2010	$	0.860268	$	0.928429		9,987
		2009	$	0.679492	$	0.860268		10,081
		2008	$	1.090028	$	0.679492		4,879
		2007	$	1.026410	$	1.090028		0
		2006	$	1.000000	$	1.026410		0
TA BlackRock Large Cap Value - Service Class		2011	$	1.166224	$	1.169776		0
Subaccount Inception Date January 12, 2004		2010	$	1.081516	$	1.166224		0
		2009	$	0.971541	$	1.081516		0
		2008	$	1.505275	$	0.971541		0
		2007	$	1.473739	$	1.505275		13,724
		2006	$	1.290803	$	1.473739		31,283
		2005	$	1.139257	$	1.290803		28,941
		2004	$	1.000000	$	1.139257		1,608
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.518102	$	1.396891		0
Subaccount Inception Date January 12, 2004		2010	$	1.344944	$	1.518102		0
		2009	$	1.032939	$	1.344944		0
		2008	$	1.835126	$	1.032939		0
		2007	$	2.013912	$	1.835126		11,143
		2006	$	1.449514	$	2.013912		52,020
		2005	$	1.308141	$	1.449514		24,961
		2004	$	1.000000	$	1.308141		59
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.967770	$	0.980096		0
Subaccount Inception Date January 12, 2004		2010	$	0.992719	$	0.967770		0
		2009	$	0.975597	$	0.992719		0
		2008	$	1.045224	$	0.975597		0
		2007	$	1.075322	$	1.045224		11,497
		2006	$	1.071874	$	1.075322		11,562
		2005	$	1.045464	$	1.071874		13,099
		2004	$	1.000000	$	1.045464		3,101
TA Janus Balanced - Service Class		2011	$	0.994274	$	0.868145		0
Subaccount Inception Date November 19, 2009		2010	$	0.985097	$	0.994274		0
		2009	$	0.986557	$	0.985097		0
TA Hanlon Balanced - Service Class		2011	$	0.963867	$	0.911464		0
Subaccount Inception Date November 19, 2009		2010	$	1.019905	$	0.963867		0
		2009	$	0.998145	$	1.019905		0
TA Hanlon Growth - Service Class		2011	$	0.992054	$	0.858399		0
Subaccount Inception Date November 19, 2009		2010	$	1.020574	$	0.992054		0
		2009	$	0.996383	$	1.020574		0
TA Hanlon Growth and Income - Service Class		2011	$	0.978988	$	0.886923		0
Subaccount Inception Date November 19, 2009		2010	$	1.021652	$	0.978988		0
		2009	$	0.997251	$	1.021652		0
TA Hanlon Income - Service Class		2011	$	0.982979	$	0.990534		0
Subaccount Inception Date November 19, 2009		2010	$	1.002928	$	0.982979		0
		2009	$	0.999942	$	1.002928		0
TA Jennison Growth - Initial Class		2011	$	1.045494	$	1.015629		0
Subaccount Inception Date April 29, 2010		2010	$	0.000000	$	1.045494		0

80

CONDENSED FINANCIAL INFORMATION—(Continued)

		$1.205351		$1.205351		$1.205351		$1.205351
			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA JPMorgan Core Bond - Service Class		2011	$	1.248565	$	1.310863		0
Subaccount Inception Date January 12, 2004		2010	$	1.181000	$	1.248565		0
		2009	$	1.102912	$	1.181000		0
		2008	$	1.070470	$	1.102912		0
		2007	$	1.025765	$	1.070470		0
		2006	$	1.011061	$	1.025765		0
		2005	$	1.011824	$	1.011061		0
		2004	$	1.000000	$	1.011824		0
TA JPMorgan Enhanced Index - Service Class		2011	$	1.079957	$	1.062286		0
Subaccount Inception Date January 12, 2004		2010	$	0.960504	$	1.079957		0
		2009	$	0.758725	$	0.960504		0
		2008	$	1.240601	$	0.758725		0
		2007	$	1.215139	$	1.240601		1,459
		2006	$	1.079630	$	1.215139		1,469
		2005	$	1.068598	$	1.079630		6,462
		2004	$	1.000000	$	1.068598		1,455
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.612569	$	1.433116		0
Subaccount Inception Date January 12, 2004		2010	$	1.217584	$	1.612569		0
		2009	$	0.911061	$	1.217584		0
		2008	$	1.579276	$	0.911061		0
		2007	$	1.314524	$	1.579276		8,298
		2006	$	1.280021	$	1.314524		11,162
		2005	$	1.127803	$	1.280021		9,359
		2004	$	1.000000	$	1.127803		4,280
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.147722	$	1.056328		0
Subaccount Inception Date January 12, 2004		2010	$	0.922505	$	1.147722		0
		2009	$	0.738706	$	0.922505		0
		2008	$	1.189197	$	0.738706		0
		2007	$	1.205695	$	1.189197		1,227
		2006	$	1.041089	$	1.205695		1,235
		2005	$	1.024427	$	1.041089		9,637
		2004	$	1.000000	$	1.024427		4,850
TA AEGON High Yield Bond - Service Class		2011	$	1.302643	$	1.333148		0
Subaccount Inception Date January 12, 2004		2010	$	1.186292	$	1.302643		0
		2009	$	0.825140	$	1.186292		0
		2008	$	1.130922	$	0.825140		0
		2007	$	1.135744	$	1.130922		0
		2006	$	1.048749	$	1.135744		0
		2005	$	1.055385	$	1.048749		0
		2004	$	1.000000	$	1.055385		0
TA MFS International Equity - Service Class		2011	$	0.882929	$	0.776043		0
Subaccount Inception Date May 1, 2007		2010	$	0.817640	$	0.882929		0
		2009	$	0.631608	$	0.817640		0
		2008	$	1.001011	$	0.631608		0
		2007	$	1.000000	$	1.001011		0

81

CONDENSED FINANCIAL INFORMATION—(Continued)

		$1.205351		$1.205351		$1.205351		$1.205351
			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA PIMCO Total Return - Service Class		2011	$	1.231056	$	1.276905		8,043
Subaccount Inception Date January 12, 2004		2010	$	1.175967	$	1.231056		8,119
		2009	$	1.037788	$	1.175967		8,196
		2008	$	1.093790	$	1.037788		4,656
		2007	$	1.027020	$	1.093790		0
		2006	$	1.009682	$	1.027020		0
		2005	$	1.010797	$	1.009682		0
		2004	$	1.000000	$	1.010797		0
TA T. Rowe Price Small Cap - Service Class		2011	$	1.345227	$	1.336899		0
Subaccount Inception Date January 12, 2004		2010	$	1.025008	$	1.345227		0
		2009	$	0.756911	$	1.025008		0
		2008	$	1.215900	$	0.756911		0
		2007	$	1.136762	$	1.215900		9,507
		2006	$	1.123612	$	1.136762		9,559
		2005	$	1.039589	$	1.123612		24,628
		2004	$	1.000000	$	1.039589		3,788
TA Third Avenue Value - Service Class		2011	$	1.297670	$	1.086268		0
Subaccount Inception Date January 12, 2004		2010	$	1.150983	$	1.297670		0
		2009	$	0.874026	$	1.150983		33,907
		2008	$	1.520744	$	0.874026		85,848
		2007	$	1.539093	$	1.520744		119,875
		2006	$	1.357762	$	1.539093		64,604
		2005	$	1.170655	$	1.357762		40,633
		2004	$	1.000000	$	1.170655		6,604
TA Efficient Markets - Service Class		2011	$	1.314939	$	1.259112		0
Subaccount Inception Date November 10, 2008		2010	$	1.195259	$	1.314939		0
		2009	$	1.035918	$	1.195259		0
		2008	$	1.000000	$	1.035918		0
TA Multi-Managed Balanced - Service Class		2011	$	1.317954	$	1.338683		0
Subaccount Inception Date January 12, 2004		2010	$	1.086724	$	1.317954		0
		2009	$	0.881468	$	1.086724		0
		2008	$	1.335547	$	0.881468		0
		2007	$	1.203448	$	1.335547		2,490
		2006	$	1.130448	$	1.203448		2,413
		2005	$	1.071240	$	1.130448		1,928
		2004	$	1.000000	$	1.071240		1,932
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.147895	$	1.142493		0
Subaccount Inception Date January 12, 2004		2010	$	1.074255	$	1.147895		0
		2009	$	0.836617	$	1.074255		0
		2008	$	1.356590	$	0.836617		0
		2007	$	1.171638	$	1.356590		2,203
		2006	$	1.081561	$	1.171638		2,218
		2005	$	1.066963	$	1.081561		2,253
		2004	$	1.000000	$	1.066963		2,195
TA WMC Diversified Growth - Service Class		2011	$	1.178999	$	1.108874		0
Subaccount Inception Date January 12, 2004		2010	$	1.025127	$	1.178999		0
		2009	$	0.812400	$	1.025127		0
		2008	$	1.541951	$	0.812400		0
		2007	$	1.357490	$	1.541951		965
		2006	$	1.279356	$	1.357490		49,064
		2005	$	1.123845	$	1.279356		5,704
		2004	$	1.000000	$	1.123845		989

82

CONDENSED FINANCIAL INFORMATION—(Continued)

		$1.108038		$1.108038		$1.108038		$1.108038
			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA WMC Diversified Equity - Service Class		2011	$	1.108038	$	1.006626		0
Subaccount Inception Date January 12, 2004		2010	$	0.971153	$	1.108038		0
		2009	$	0.775966	$	0.971153		12,743
		2008	$	1.410905	$	0.775966		19,142
		2007	$	1.253606	$	1.410905		33,128
		2006	$	1.081037	$	1.253606		14,660
		2005	$	1.029760	$	1.081037		14,741
		2004	$	1.000000	$	1.029760		0
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.004866		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988136		0
TA AEGON Money Market - Service Class		2011	$	0.996872	$	0.975988		40,265
Subaccount Inception Date January 12, 2004		2010	$	1.018251	$	0.996872		40,647
		2009	$	1.040021	$	1.018251		60,825
		2008	$	1.039945	$	1.040021		76,717
		2007	$	1.014082	$	1.039945		0
		2006	$	0.991496	$	1.014082		1,458
		2005	$	0.986822	$	0.991496		1,377
		2004	$	1.000000	$	0.986822		0
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.790725	$	1.702992		0
Subaccount Inception Date May 1, 2004		2010	$	1.406519	$	1.790725		0
		2009	$	1.005424	$	1.406519		35,471
		2008	$	1.742427	$	1.005424		94,944
		2007	$	1.431040	$	1.742427		115,558
		2006	$	1.240690	$	1.431040		54,834
		2005	$	1.118916	$	1.240690		27,593
		2004	$	1.000000	$	1.118916		0
TA AEGON U.S. Government Securities - Service Class		2011	$	1.139760	$	1.197133		4,661
Subaccount Inception Date January 12, 2004		2010	$	1.117090	$	1.139760		4,705
		2009	$	1.095137	$	1.117090		4,750
		2008	$	1.041517	$	1.095137		4,793
		2007	$	1.005871	$	1.041517		0
		2006	$	0.996944	$	1.005871		0
		2005	$	0.998533	$	0.996944		0
		2004	$	1.000000	$	0.998533		0
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.068541	$	1.079305		3,843
Subaccount Inception Date November 19, 2009		2010	$	0.997500	$	1.068541		3,879
		2009	$	0.999942	$	0.997500		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.006651	$	0.999957		0
Subaccount Inception Date May 1, 2008		2010	$	0.928956	$	1.006651		0
		2009	$	0.814316	$	0.928956		0
		2008	$	1.000000	$	0.814316		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.958745	$	0.927966		9,488
Subaccount Inception Date May 1, 2008		2010	$	0.866647	$	0.958745		9,578
		2009	$	0.718684	$	0.866647		5,169
		2008	$	1.000000	$	0.718684		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.146248	$	1.078183		0
Subaccount Inception Date November 19, 2009		2010	$	1.023437	$	1.146248		0
		2009	$	0.999942	$	1.023437		0

83

CONDENSED FINANCIAL INFORMATION—(Continued)

		000000000		000000000		000000000		000000000
			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.476301	$	1.345307		0
Subaccount Inception Date January 12, 2004		2010	$	1.128928	$	1.476301		0
		2009	$	0.720204	$	1.128928		0
		2008	$	1.373698	$	0.720204		0
		2007	$	1.148073	$	1.373698		1,953
		2006	$	1.070067	$	1.148073		1,897
		2005	$	1.018533	$	1.070067		1,514
		2004	$	1.000000	$	1.018533		1,519
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.139760	$	1.197133		0
Subaccount Inception Date January 12, 2004		2010	$	1.117090	$	1.139760		0
		2009	$	1.095137	$	1.117090		29,895
		2008	$	1.041517	$	1.095137		36,715
		2007	$	1.005871	$	1.041517		0
		2006	$	0.996944	$	1.005871		0
		2005	$	1.000000	$	0.996944		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.326218	$	1.256225		0
Subaccount Inception Date November 10, 2008		2010	$	1.230654	$	1.326218		0
		2009	$	1.012092	$	1.230654		0
		2008	$	1.000000	$	1.012092		0
Fidelity ® VIP Index 500 Portfolio – Service Class 2		2011	$	1.084376	$	1.080544		0
Subaccount Inception Date January 12, 2004		2010	$	0.965473	$	1.084376		0
		2009	$	0.780861	$	0.965473		0
		2008	$	1.269439	$	0.780861		0
		2007	$	1.232995	$	1.269439		1,163
		2006	$	1.091009	$	1.232995		0
		2005	$	1.065846	$	1.091009		0
		2004	$	1.000000	$	1.065846		9,207
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.355619	$	1.303046		3,090
Subaccount Inception Date November 10, 2008		2010	$	1.257960	$	1.355619		3,119
		2009	$	0.989426	$	1.257960		0
		2008	$	1.000000	$	0.989426		0
ProFund VP Asia 30		2011	$	0.944944	$	0.675328		0
Subaccount Inception Date September 6, 2007		2010	$	0.847396	$	0.944944		0
		2009	$	0.561360	$	0.847396		0
		2008	$	1.166180	$	0.561360		8,028
		2007	$	1.000000	$	1.166180		0
ProFund VP Basic Materials		2011	$	1.064896	$	0.874124		0
Subaccount Inception Date September 6, 2007		2010	$	0.838715	$	1.064896		0
		2009	$	0.527647	$	0.838715		0
		2008	$	1.109701	$	0.527647		0
		2007	$	1.000000	$	1.109701		0
ProFund VP Bull		2011	$	0.780583	$	0.764191		0
Subaccount Inception Date June 21, 2007		2010	$	0.708272	$	0.780583		0
		2009	$	0.581850	$	0.708272		0
		2008	$	0.953648	$	0.581850		0
		2007	$	1.000000	$	0.953648		0
ProFund VP Consumer Services		2011	$	0.933413	$	0.964042		0
Subaccount Inception Date September 6, 2007		2010	$	0.785465	$	0.933413		0
		2009	$	0.613396	$	0.785465		0
		2008	$	0.913248	$	0.613396		0
		2007	$	1.000000	$	0.913248		0

84

CONDENSED FINANCIAL INFORMATION—(Continued)

		000000000		000000000		000000000		000000000
			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Emerging Markets		2011	$	0.955070	$	0.750756		0
Subaccount Inception Date September 6, 2007		2010	$	0.888770	$	0.955070		0
		2009	$	0.559189	$	0.888770		0
		2008	$	1.144697	$	0.559189		0
		2007	$	1.000000	$	1.144697		0
ProFund VP Europe 30		2011	$	0.732383	$	0.653280		0
Subaccount Inception Date September 6, 2007		2010	$	0.728925	$	0.732383		0
		2009	$	0.562841	$	0.728925		0
		2008	$	1.026865	$	0.562841		0
		2007	$	1.000000	$	1.026865		0
ProFund VP Falling US Dollar		2011	$	0.945525	$	0.900461		0
Subaccount Inception Date September 6, 2007		2010	$	0.991504	$	0.945525		0
		2009	$	0.980322	$	0.991504		0
		2008	$	1.055447	$	0.980322		0
		2007	$	1.000000	$	1.055447		0
ProFund VP Financials		2011	$	0.510236	$	0.430411		0
Subaccount Inception Date September 6, 2007		2010	$	0.469849	$	0.510236		0
		2009	$	0.417323	$	0.469849		0
		2008	$	0.862062	$	0.417323		0
		2007	$	1.000000	$	0.862062		0
ProFund VP International		2011	$	0.706370	$	0.592352		0
Subaccount Inception Date September 6, 2007		2010	$	0.669316	$	0.706370		0
		2009	$	0.548531	$	0.669316		0
		2008	$	1.007921	$	0.548531		0
		2007	$	1.000000	$	1.007921		0
ProFund VP Japan		2011	$	0.521017	$	0.415501		0
Subaccount Inception Date September 6, 2007		2010	$	0.569417	$	0.521017		0
		2009	$	0.527204	$	0.569417		0
		2008	$	0.910459	$	0.527204		0
		2007	$	1.000000	$	0.910459		0
ProFund VP Mid-Cap		2011	$	0.927392	$	0.869927		0
Subaccount Inception Date September 6, 2007		2010	$	0.763677	$	0.927392		0
		2009	$	0.587088	$	0.763677		0
		2008	$	0.973154	$	0.587088		0
		2007	$	1.000000	$	0.973154		0
ProFund VP Money Market		2011	$	0.953466	$	0.933636		0
Subaccount Inception Date June 21, 2007		2010	$	0.973768	$	0.953466		0
		2009	$	0.994394	$	0.973768		0
		2008	$	1.007387	$	0.994394		0
		2007	$	1.000000	$	1.007387		0
ProFund VP Oil & Gas		2011	$	0.875668	$	0.876529		0
Subaccount Inception Date September 6, 2007		2010	$	0.759572	$	0.875668		0
		2009	$	0.671793	$	0.759572		0
		2008	$	1.088496	$	0.671793		0
		2007	$	1.000000	$	1.088496		0
ProFund VP NASDAQ-100		2011	$	1.026815	$	1.019881		0
Subaccount Inception Date June 21, 2007		2010	$	0.887035	$	1.026815		0
		2009	$	0.596082	$	0.887035		0
		2008	$	1.058754	$	0.596082		0
		2007	$	1.000000	$	1.058754		0

85

CONDENSED FINANCIAL INFORMATION—(Continued)

		000000000		000000000		000000000		000000000
			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Pharmaceuticals		2011	$	0.884437	$	1.005543		0
Subaccount Inception Date September 6, 2007		2010	$	0.899171	$	0.884437		0
		2009	$	0.785740	$	0.899171		0
		2008	$	0.997231	$	0.785740		0
		2007	$	1.000000	$	0.997231		0
ProFund VP Precious Metals		2011	$	1.373066	$	1.085918		0
Subaccount Inception Date September 6, 2007		2010	$	1.055125	$	1.373066		0
		2009	$	0.796458	$	1.055125		0
		2008	$	1.175140	$	0.796458		0
		2007	$	1.000000	$	1.175140		0
ProFund VP Short Emerging Markets		2011	$	0.426711	$	0.462286		0
Subaccount Inception Date September 6, 2007		2010	$	0.534313	$	0.426711		0
		2009	$	1.064291	$	0.534313		0
		2008	$	0.822242	$	1.064291		0
		2007	$	1.000000	$	0.822242		0
ProFund VP Short International		2011	$	0.756382	$	0.753851		0
Subaccount Inception Date September 6, 2007		2010	$	0.905776	$	0.756382		0
		2009	$	1.327147	$	0.905776		0
		2008	$	0.980805	$	1.327147		0
		2007	$	1.000000	$	0.980805		0
ProFund VP Short NASDAQ-100		2011	$	0.631102	$	0.553120		0
Subaccount Inception Date September 6, 2007		2010	$	0.817971	$	0.631102		0
		2009	$	1.408137	$	0.817971		0
		2008	$	0.970869	$	1.408137		0
		2007	$	1.000000	$	0.970869		0
ProFund VP Short Small-Cap		2011	$	0.603410	$	0.537044		0
Subaccount Inception Date June 21, 2007		2010	$	0.867489	$	0.603410		0
		2009	$	1.310365	$	0.867489		0
		2008	$	1.078809	$	1.310365		0
		2007	$	1.000000	$	1.078809		0
ProFund VP Small-Cap		2011	$	0.860555	$	0.794826		0
Subaccount Inception Date June 21, 2007		2010	$	0.704425	$	0.860555		0
		2009	$	0.570771	$	0.704425		0
		2008	$	0.902669	$	0.570771		0
		2007	$	1.000000	$	0.902669		0
ProFund VP Small-Cap Value		2011	$	0.873672	$	0.820218		0
Subaccount Inception Date September 6, 2007		2010	$	0.730891	$	0.873672		0
		2009	$	0.620102	$	0.730891		0
		2008	$	0.913929	$	0.620102		0
		2007	$	1.000000	$	0.913929		0
ProFund VP Telecommunications		2011	$	0.726988	$	0.725007		0
Subaccount Inception Date September 6, 2007		2010	$	0.641912	$	0.726988		0
		2009	$	0.610986	$	0.641912		0
		2008	$	0.951773	$	0.610986		0
		2007	$	1.000000	$	0.951773		0
ProFund VP UltraSmall-Cap		2011	$	0.583749	$	0.463844		0
Subaccount Inception Date September 6, 2007		2010	$	0.401692	$	0.583749		0
		2009	$	0.292726	$	0.401692		0
		2008	$	0.884450	$	0.292726		0
		2007	$	1.000000	$	0.884450		0

86

CONDENSED FINANCIAL INFORMATION—(Continued)

		000000000		000000000		000000000		000000000
			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP U.S. Government Plus		2011	$	1.125166	$	1.580941		0
Subaccount Inception Date September 6, 2007		2010	$	1.043758	$	1.125166		0
		2009	$	1.582372	$	1.043758		0
		2008	$	1.079358	$	1.582372		0
		2007	$	1.000000	$	1.079358		0
ProFund VP Utilities		2011	$	0.817614	$	0.940586		0
Subaccount Inception Date September 6, 2007		2010	$	0.788283	$	0.817614		0
		2009	$	0.727172	$	0.788283		0
		2008	$	1.071923	$	0.727172		0
		2007	$	1.000000	$	1.071923		0
Access VP High Yield FundSM		2011	$	1.251501	$	1.258849		0
Subaccount Inception Date September 6, 2007		2010	$	1.098521	$	1.251501		0
		2009	$	0.959798	$	1.098521		0
		2008	$	1.028245	$	0.959798		0
		2007	$	1.000000	$	1.028245		0
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.273329	$	1.287289		12,285,752
Subaccount Inception Date January 12, 2004		2010	$	1.185987	$	1.273329		14,337,557
		2009	$	0.961384	$	1.185987		15,502,489
		2008	$	1.238522	$	0.961384		14,037,704
		2007	$	1.181464	$	1.238522		14,733,665
		2006	$	1.095988	$	1.181464		14,430,621
		2005	$	1.056719	$	1.095988		12,235,089
		2004	$	1.000000	$	1.056719		7,503,001
TA Asset Allocation - Growth - Service Class		2011	$	1.264654	$	1.177930		11,696,908
Subaccount Inception Date January 12, 2004		2010	$	1.116857	$	1.264654		15,181,274
		2009	$	0.872926	$	1.116857		15,927,880
		2008	$	1.467189	$	0.872926		17,511,200
		2007	$	1.381527	$	1.467189		26,847,935
		2006	$	1.213363	$	1.381527		25,275,163
		2005	$	1.097614	$	1.213363		20,537,855
		2004	$	1.000000	$	1.097614		10,035,215
TA Asset Allocation - Moderate - Service Class		2011	$	1.313064	$	1.300675		25,710,804
Subaccount Inception Date January 12, 2004		2010	$	1.207111	$	1.313064		30,569,400
		2009	$	0.968489	$	1.207111		33,189,185
		2008	$	1.328693	$	0.968489		31,000,297
		2007	$	1.248802	$	1.328693		44,798,869
		2006	$	1.136894	$	1.248802		44,855,307
		2005	$	1.074467	$	1.136894		38,446,637
		2004	$	1.000000	$	1.074467		22,424,620
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.310122	$	1.264525		48,152,656
Subaccount Inception Date January 12, 2004		2010	$	1.180114	$	1.310122		57,562,132
		2009	$	0.934434	$	1.180114		61,642,497
		2008	$	1.410558	$	0.934434		55,363,989
		2007	$	1.327918	$	1.410558		74,341,269
		2006	$	1.184151	$	1.327918		66,333,637
		2005	$	1.092831	$	1.184151		45,633,076
		2004	$	1.000000	$	1.092831		18,940,718

87

CONDENSED FINANCIAL INFORMATION—(Continued)

		000000000		000000000		000000000		000000000
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA International Moderate Growth - Service Class		2011	$	0.967652	$	0.883713		5,183,058
Subaccount Inception Date May 1, 2006		2010	$	0.888717	$	0.967652		6,082,627
		2009	$	0.695766	$	0.888717		6,096,936
		2008	$	1.106246	$	0.695766		5,478,470
		2007	$	1.032458	$	1.106246		3,391,652
		2006	$	1.000000	$	1.032458		1,315,507
TA BlackRock Large Cap Value - Service Class		2011	$	1.240502	$	1.255325		2,553,954
Subaccount Inception Date January 12, 2004		2010	$	1.140256	$	1.240502		2,614,543
		2009	$	1.015281	$	1.140256		1,791,254
		2008	$	1.559110	$	1.015281		1,200,379
		2007	$	1.512915	$	1.559110		1,811,798
		2006	$	1.313474	$	1.512915		2,342,337
		2005	$	1.149081	$	1.313474		1,053,249
		2004	$	1.000000	$	1.149081		180,932
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.614717	$	1.498986		974,947
Subaccount Inception Date January 12, 2004		2010	$	1.417950	$	1.614717		1,216,468
		2009	$	1.079416	$	1.417950		1,350,507
		2008	$	1.900683	$	1.079416		1,418,373
		2007	$	2.067380	$	1.900683		2,679,802
		2006	$	1.474943	$	2.067380		3,805,594
		2005	$	1.319407	$	1.474943		2,790,656
		2004	$	1.000000	$	1.319407		1,226,832
TA JPMorgan Tactical Allocation - Service Class		2011	$	1.029388	$	1.051731		1,711,382
Subaccount Inception Date January 12, 2004		2010	$	1.046616	$	1.029388		1,705,440
		2009	$	1.019485	$	1.046616		2,148,782
		2008	$	1.082598	$	1.019485		2,270,517
		2007	$	1.038970	$	1.082598		3,722,063
		2006	$	1.090700	$	1.103897		4,817,706
		2005	$	1.054486	$	1.090700		5,230,056
		2004	$	1.000000	$	1.054486		2,845,832
TA Janus Balanced - Service Class		2011	$	1.004166	$	0.884565		472,186
Subaccount Inception Date November 19, 2009		2010	$	0.986128	$	1.004166		398,239
		2009	$	0.986582	$	0.986128		150,599
TA Hanlon Balanced - Service Class		2011	$	0.973440	$	0.928682		59,974
Subaccount Inception Date November 19, 2009		2010	$	1.020966	$	0.973440		71,396
		2009	$	0.998169	$	1.020966		45,886
TA Hanlon Growth - Service Class		2011	$	1.001907	$	0.874623		323,711
Subaccount Inception Date November 19, 2009		2010	$	1.021637	$	1.001907		332,226
		2009	$	0.996407	$	1.021637		199,805
TA Hanlon Growth and Income - Service Class		2011	$	0.988719	$	0.903681		223,822
Subaccount Inception Date November 19, 2009		2010	$	1.022718	$	0.988719		214,130
		2009	$	0.997275	$	1.022718		47,837
TA Hanlon Income - Service Class		2011	$	0.992741	$	1.009231		1,682,508
Subaccount Inception Date November 19, 2009		2010	$	0.999966	$	0.992741		1,885,538
		2009	$	0.988719	$	1.003976		868,893

88

CONDENSED FINANCIAL INFORMATION—(Continued)

		000000000		000000000		000000000		000000000
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA JPMorgan Core Bond - Service Class		2011	$	1.328057	$	1.406679		1,849,625
Subaccount Inception Date January 12, 2004		2010	$	1.245121	$	1.328057		1,469,967
		2009	$	1.152552	$	1.245121		2,539,400
		2008	$	1.108765	$	1.152552		1,864,431
		2007	$	1.053040	$	1.108765		960,657
		2006	$	1.028816	$	1.053043		1,134,018
		2005	$	1.020550	$	1.028816		790,305
		2004	$	1.000000	$	1.020550		578,796
TA JPMorgan Enhanced Index - Service Class		2011	$	1.148696	$	1.139915		671,682
Subaccount Inception Date January 12, 2004		2010	$	1.012639	$	1.148696		651,573
		2009	$	0.792868	$	1.012639		666,162
		2008	$	1.284944	$	0.792868		571,446
		2007	$	1.247416	$	1.284944		1,167,784
		2006	$	1.098576	$	1.247416		796,705
		2005	$	1.077814	$	1.098576		1,054,002
		2004	$	1.000000	$	1.077814		1,591,931
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.220767	$	1.133526		666,117
Subaccount Inception Date January 12, 2004		2010	$	0.972590	$	1.220767		735,092
		2009	$	0.771946	$	0.972590		586,987
		2008	$	1.231692	$	0.771946		674,328
		2007	$	1.237717	$	1.231692		1,178,963
		2006	$	1.059368	$	1.237717		1,211,730
		2005	$	1.033259	$	1.059368		1,239,124
		2004	$	1.000000	$	1.033259		1,141,234
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.715248	$	1.537904		0
Subaccount Inception Date		2010	$	1.283725	$	1.715248		1,167,241
		2009	$	0.952072	$	1.283725		924,593
		2008	$	1.635742	$	0.952072		869,552
		2007	$	1.349470	$	1.635742		1,161,648
		2006	$	1.302497	$	1.349470		1,128,273
		2005	$	1.137520	$	1.302497		898,940
		2004	$	1.000000	$	1.137520		590,910
TA AEGON High Yield Bond - Service Class		2011	$	1.385541	$	1.430544		1,750,932
Subaccount Inception Date January 12, 2004		2010	$	1.250662	$	1.385541		2,371,251
		2009	$	0.862263	$	1.250662		2,394,617
		2008	$	1.171341	$	0.862263		302,315
		2007	$	1.165918	$	1.171341		494,975
		2006	$	1.067163	$	1.165918		1,546,606
		2005	$	1.064471	$	1.067163		285,552
		2004	$	1.000000	$	1.064471		280,788
TA MFS International Equity - Service Class		2011	$	0.912098	$	0.808799		394,834
Subaccount Inception Date May 1, 2007		2010	$	0.837217	$	0.912098		559,169
		2009	$	0.641028	$	0.837217		678,811
		2008	$	1.006958	$	0.641028		529,812
		2007	$	1.000000	$	1.006958		583,903
TA Jennison Growth - Service Class		2011	$	1.051746	$	1.030779		842,570
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.051746		525,851

89

CONDENSED FINANCIAL INFORMATION—(Continued)

		000000000		000000000		000000000		000000000
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA PIMCO Total Return - Service Class		2011	$	1.309459	$	1.370261		3,671,385
Subaccount Inception Date January 12, 2004		2010	$	1.239836	$	1.309459		4,579,432
		2009	$	1.084505	$	1.239836		4,443,066
		2008	$	1.132924	$	1.084505		1,948,494
		2007	$	1.054338	$	1.132924		1,535,592
		2006	$	1.027433	$	1.054338		1,379,971
		2005	$	1.019517	$	1.027433		1,409,730
		2004	$	1.000000	$	1.019517		647,922
TA T. Rowe Price Small Cap - Service Class		2011	$	1.430843	$	1.434603		554,126
Subaccount Inception Date January 12, 2004		2010	$	1.080651	$	1.430843		1,094,480
		2009	$	0.790971	$	1.080651		872,475
		2008	$	1.259355	$	0.790971		790,910
		2007	$	1.166953	$	1.259355		831,582
		2006	$	1.143320	$	1.166953		1,396,740
		2005	$	1.048551	$	1.143320		2,664,103
		2004	$	1.000000	$	1.048551		424,410
TA Third Avenue Value - Service Class		2011	$	1.380269	$	1.165668		2,159,936
Subaccount Inception Date January 12, 2004		2010	$	1.213484	$	1.380269		2,525,214
		2009	$	0.913369	$	1.213484		3,043,854
		2008	$	1.575116	$	0.913369		3,077,286
		2007	$	1.580003	$	1.575116		5,437,812
		2006	$	1.381608	$	1.580003		5,901,527
		2005	$	1.180749	$	1.381608		4,569,962
		2004	$	1.000000	$	1.180749		2,201,142
TA Efficient Markets - Service Class		2011	$	1.340039	$	1.294521		270,318
Subaccount Inception Date November 10, 2008		2010	$	1.207359	$	1.340039		272,402
		2009	$	1.037196	$	1.207359		175,912
		2008	$	1.000000	$	1.037196		197,061
TA Multi-Managed Balanced - Service Class		2011	$	1.401893	$	1.436567		1,651,397
Subaccount Inception Date January 12, 2004		2010	$	1.145766	$	1.401893		1,523,341
		2009	$	0.921155	$	1.145766		978,220
		2008	$	1.383300	$	0.921155		725,686
		2007	$	1.235435	$	1.383300		775,121
		2006	$	1.150301	$	1.235435		643,570
		2005	$	1.080469	$	1.150301		441,236
		2004	$	1.000000	$	1.080469		426,075
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.220941	$	1.225976		349,720
Subaccount Inception Date January 12, 2004		2010	$	1.132561	$	1.220941		545,165
		2009	$	0.874260	$	1.132561		419,572
		2008	$	1.405090	$	0.874260		288,654
		2007	$	1.202787	$	1.405090		530,552
		2006	$	1.100560	$	1.202787		530,249
		2005	$	1.076169	$	1.100560		505,776
		2004	$	1.000000	$	1.076169		213,495
TA WMC Diversified Equity - Service Class		2011	$	1.178571	$	1.080206		0
Subaccount Inception Date January 12, 2004		2010	$	1.023878	$	1.178571		1,373,007
		2009	$	0.810875	$	1.023878		1,174,903
		2008	$	1.461312	$	0.810875		1,246,780
		2007	$	1.286892	$	1.461312		1,924,779
		2006	$	1.100008	$	1.286892		1,917,576
		2005	$	1.038628	$	1.100008		968,060
		2004	$	1.000000	$	1.038628		986,140

90

CONDENSED FINANCIAL INFORMATION—(Continued)

		$1.254035		$1.254035		$1.254035		$1.254035
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA WMC Diversified Growth - Service Class		2011	$	1.254035	$	1.189919		2,808,295
Subaccount Inception Date January 12, 2004		2010	$	1.080773	$	1.254035		2,590,586
		2009	$	0.848962	$	1.080773		2,979,820
		2008	$	1.597073	$	0.848962		2,886,962
		2007	$	1.393568	$	1.597073		4,966,750
		2006	$	1.301820	$	1.393568		5,004,670
		2005	$	1.133532	$	1.301820		3,094,460
		2004	$	1.000000	$	1.133532		2,090,656
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccout Inception Date December 9, 2011		2011	$	0.000000	$	1.005379		70,841
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 12, 2011		2011	$	0.000000	$	0.988642		817,314
TA AEGON Money Market - Service Class		2011	$	1.060336	$	1.047274		5,341,317
Subaccount Inception Date January 12, 2004		2010	$	1.086807	$	1.060336		5,559,088
		2009	$	1.077129	$	1.073504		7,115,831
		2008	$	1.060336	$	1.086807		12,819,367
		2007	$	1.041050	$	1.077129		3,860,358
		2006	$	1.008922	$	1.041050		2,299,227
		2005	$	0.995342	$	1.008922		3,530,333
		2004	$	1.000000	$	0.995342		3,399,298
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.899527	$	1.822494		1,506,730
Subaccount Inception Date May 1, 2004		2010	$	1.478853	$	1.899527		1,852,836
		2009	$	1.047827	$	1.478853		1,964,794
		2008	$	1.799817	$	1.047827		1,674,005
		2007	$	1.465093	$	1.799817		2,852,907
		2006	$	1.259050	$	1.465093		1,606,608
		2005	$	1.125499	$	1.259050		1,612,485
		2004	$	1.000000	$	1.125499		280,786
TA AEGON U.S. Government Securities - Service Class		2011	$	1.212326	$	1.284635		1,523,426
Subaccount Inception Date January 12, 2004		2010	$	1.177734	$	1.212326		2,025,780
		2009	$	1.144422	$	1.177734		3,275,827
		2008	$	1.078770	$	1.144422		3,687,242
		2007	$	1.032619	$	1.078770		574,423
		2006	$	1.014459	$	1.032619		385,218
		2005	$	1.007147	$	1.014459		384,076
		2004	$	1.000000	$	1.007147		525,455
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.079160	$	1.099705		0
Subaccount Inception Date November 19, 2009		2010	$	0.998540	$	1.079160		0
		2009	$	0.999966	$	0.998540		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.030714	$	1.032943		56,618
Subaccount Inception Date May 1, 2008		2010	$	0.942791	$	1.030714		87,451
		2009	$	0.819159	$	0.942791		99,721
		2008	$	1.000000	$	0.819159		2,879
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.981646	$	0.958559		937,445
Subaccount Inception Date May 1, 2008		2010	$	0.879543	$	0.981646		989,659
		2009	$	0.722951	$	0.879543		744,138
		2008	$	1.000000	$	0.722951		571,628
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.157637	$	1.098560		5,179
Subaccount Inception Date November 19, 2009		2010	$	1.024505	$	1.157637		0
		2009	$	0.999966	$	1.024505		0

91

CONDENSED FINANCIAL INFORMATION—(Continued)

		$1.570290		$1.570290		$1.570290		$1.570290
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.570290	$	1.443654		1,772,609
Subaccount Inception Date January 12, 2004		2010	$	1.190239	$	1.570290		1,187,442
		2009	$	0.752635	$	1.190239		1,002,759
		2008	$	1.422831	$	0.752635		932,011
		2007	$	1.178603	$	1.422831		1,235,573
		2006	$	1.088865	$	1.178603		1,142,007
		2005	$	1.027325	$	1.088865		914,108
		2004	$	1.000000	$	1.027325		846,034
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.212326	$	1.284635		18,293,268
Subaccount Inception Date January 12, 2004		2010	$	1.177734	$	1.212326		11,370,248
		2009	$	1.144422	$	1.177734		22,528,930
		2008	$	1.078770	$	1.144422		39,589,434
		2007	$	1.032619	$	1.078770		1,112,969
		2006	$	1.014459	$	1.032619		28,050
		2005	$	1.007147	$	1.014459		10,986
		2004	$	1.000000	$	1.007147		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B<>(1)		2011	$	1.351492	$	1.291502		192,926
Subaccount Inception Date November 10, 2008		2010	$	1.243091	$	1.351492		204,158
		2009	$	1.013344	$	1.243091		244,935
		2008	$	1.000000	$	1.013344		0
Fidelity ® VIP Index 500 Portfolio – Service Class 2		2011	$	1.153421	$	1.159538		1,705,668
Subaccount Inception Date January 12, 2004		2010	$	1.071906	$	1.153421		2,008,075
		2009	$	0.816018	$	1.017906		1,965,013
		2008	$	1.314839	$	0.816018		1,464,748
		2007	$	1.265780	$	1.314839		1,171,464
		2006	$	1.110169	$	1.265780		773,524
		2005	$	1.075035	$	1.110169		702,915
		2004	$	1.000000	$	1.075035		382,634
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.381473	$	1.339660		367,387
Subaccount Inception Date November 10, 2008		2010	$	1.270689	$	1.381473		397,173
		2009	$	0.990648	$	1.270689		382,637
		2008	$	1.000000	$	0.990648		208,139
ProFund VP Asia 30		2011	$	0.973197	$	0.701708		322,804
Subaccount Inception Date September 6, 2007		2010	$	0.865066	$	0.973197		524,218
		2009	$	0.568013	$	0.865066		1,049,044
		2008	$	1.169526	$	0.568013		212,811
		2007	$	1.000000	$	1.169526		288,851
ProFund VP Basic Materials		2011	$	1.096729	$	0.908253		335,270
Subaccount Inception Date September 6, 2007		2010	$	0.856179	$	1.096729		499,955
		2009	$	0.533888	$	0.856179		857,842
		2008	$	1.112879	$	0.533888		382,888
		2007	$	1.000000	$	1.112879		842,640
ProFund VP Bull		2011	$	0.805386	$	0.795470		287,200
Subaccount Inception Date June 21, 2007		2010	$	0.724345	$	0.805386		1,153,911
		2009	$	0.589809	$	0.724345		2,125,316
		2008	$	0.958122	$	0.589809		211,856
		2007	$	1.000000	$	0.958122		138,272

92

CONDENSED FINANCIAL INFORMATION—(Continued)

		$0.961312		$0.961312		$0.961312		$0.961312
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Consumer Services		2011	$	0.961312	$	1.001669		74,783
Subaccount Inception Date September 6, 2007		2010	$	0.801823	$	0.961312		97,926
		2009	$	0.620653	$	0.801823		7,840
		2008	$	0.915866	$	0.620653		756
		2007	$	1.000000	$	0.915866		0
ProFund VP Emerging Markets		2011	$	0.983661	$	0.780111		549,159
Subaccount Inception Date September 6, 2007		2010	$	0.907315	$	0.983661		1,978,622
		2009	$	0.565820	$	0.907315		1,537,458
		2008	$	1.147982	$	0.565820		239,872
		2007	$	1.000000	$	1.147982		91,400
ProFund VP Europe 30		2011	$	0.754274	$	0.678785		8,020
Subaccount Inception Date September 6, 2007		2010	$	0.744107	$	0.754274		15,590
		2009	$	0.569495	$	0.744107		97,662
		2008	$	1.029815	$	0.569495		10,721
		2007	$	1.000000	$	1.029815		1,187,307
ProFund VP Falling US Dollar		2011	$	0.973759	$	0.935558		91,820
Subaccount Inception Date September 6, 2007		2010	$	1.012123	$	0.973759		88,464
		2009	$	0.991895	$	1.012123		116,465
		2008	$	1.058469	$	0.991895		62,681
		2007	$	1.000000	$	1.058469		18,740
ProFund VP Financials		2011	$	0.525537	$	0.447260		181,411
Subaccount Inception Date September 6, 2007		2010	$	0.479671	$	0.525537		167,793
		2009	$	0.422279	$	0.479671		303,789
		2008	$	0.864541	$	0.422279		344,881
		2007	$	1.000000	$	0.864541		2,573
ProFund VP International		2011	$	0.727485	$	0.615484		259,691
Subaccount Inception Date September 6, 2007		2010	$	0.683262	$	0.727485		1,064,335
		2009	$	0.555013	$	0.683262		1,321,653
		2008	$	1.010814	$	0.555013		102,857
		2007	$	1.000000	$	1.010814		65,581
ProFund VP Japan		2011	$	0.536602	$	0.431731		161,124
Subaccount Inception Date September 6, 2007		2010	$	0.581286	$	0.536602		379,393
		2009	$	0.533450	$	0.581286		683,516
		2008	$	0.913075	$	0.533450		4,825
		2007	$	1.000000	$	0.913075		45,859
ProFund VP Mid-Cap		2011	$	0.955120	$	0.903887		386,421
Subaccount Inception Date September 6, 2007		2010	$	0.779583	$	0.955120		154,247
		2009	$	0.594038	$	0.779583		457,573
		2008	$	0.975945	$	0.594038		179,947
		2007	$	1.000000	$	0.975945		0
ProFund VP Money Market		2011	$	0.983747	$	0.971777		1,485,073
Subaccount Inception Date June 21, 2007		2010	$	0.995824	$	0.983747		2,016,957
		2009	$	1.007962	$	0.995824		3,643,672
		2008	$	1.012111	$	1.007962		9,062,041
		2007	$	1.000000	$	1.012111		7,426,750
ProFund VP Oil & Gas		2011	$	0.901861	$	0.910747		573,061
Subaccount Inception Date September 6, 2007		2010	$	0.775399	$	0.901861		1,257,252
		2009	$	0.679741	$	0.775399		1,176,034
		2008	$	1.091613	$	0.679741		926,455
		2007	$	1.000000	$	1.091613		307,483

93

CONDENSED FINANCIAL INFORMATION—(Continued)

		$1.059422		$1.059422		$1.059422		$1.059422
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP NASDAQ-100		2011	$	1.059422	$	1.061595		406,280
Subaccount Inception Date June 21, 2007		2010	$	0.907150	$	1.059422		64,147
		2009	$	0.604236	$	0.907150		39,919
		2008	$	1.063719	$	0.604236		311,304
		2007	$	1.000000	$	1.063719		51,137
ProFund VP Pharmaceuticals		2011	$	0.910845	$	1.044740		81,873
Subaccount Inception Date September 6, 2007		2010	$	0.917860	$	0.910845		11,878
		2009	$	0.795015	$	0.917860		35,954
		2008	$	1.000086	$	0.795015		104,014
		2007	$	1.000000	$	1.000086		0
ProFund VP Precious Metals		2011	$	1.414152	$	1.128344		565,890
Subaccount Inception Date September 6, 2007		2010	$	1.077132	$	1.414152		687,242
		2009	$	0.805899	$	1.077132		623,819
		2008	$	1.178522	$	0.805899		481,357
		2007	$	1.000000	$	1.178522		54,506
ProFund VP Short Emerging Markets		2011	$	0.439474	$	0.480343		42,942.139
Subaccount Inception Date September 6, 2007		2010	$	0.545435	$	0.439474		60,543
		2009	$	1.076853	$	0.545435		57,774
		2008	$	0.824593	$	1.076853		91,631
		2007	$	1.000000	$	0.824593		0
ProFund VP Short International		2011	$	0.778993	$	0.783257		17,340
Subaccount Inception Date September 6, 2007		2010	$	0.924617	$	0.778993		27,122
		2009	$	1.342812	$	0.924617		48,016
		2008	$	0.983612	$	1.342812		151,606
		2007	$	1.000000	$	0.983612		16,120
ProFund VP Short NASDAQ-100		2011	$	0.649954	$	0.574699		41,118
Subaccount Inception Date September 6, 2007		2010	$	0.834974	$	0.649954		40,907
		2009	$	1.424720	$	0.834974		40,870
		2008	$	0.973637	$	1.424720		127,728
		2007	$	1.000000	$	0.973637		14,232
ProFund VP Short Small-Cap		2011	$	0.622574	$	0.559005		34,475
Subaccount Inception Date June 21, 2007		2010	$	0.877140	$	0.622574		39,548
		2009	$	1.328218	$	0.887140		29,070
		2008	$	1.083859	$	1.328218		45,742
		2007	$	1.000000	$	1.083859		13,154
ProFund VP Small-Cap		2011	$	0.887899	$	0.827356		163,979
Subaccount Inception Date June 21, 2007		2010	$	0.720411	$	0.887899		98,804
		2009	$	0.578583	$	0.720411		46,922
		2008	$	0.906913	$	0.578583		5,946
		2007	$	1.000000	$	0.906913		8,258
ProFund VP Small-Cap Value		2011	$	0.899795	$	0.852241		199,763
Subaccount Inception Date September 6, 2007		2010	$	0.746137	$	0.899795		4,933
		2009	$	0.627447	$	0.746137		123,972
		2008	$	0.916559	$	0.627447		192,472
		2007	$	1.000000	$	0.916559		20,893
ProFund VP Telecommunications		2011	$	0.748692	$	0.753277		0
Subaccount Inception Date September 6, 2007		2010	$	0.655268	$	0.748692		0
		2009	$	0.618208	$	0.655268		0
		2008	$	0.954517	$	0.618208		1,170
		2007	$	1.000000	$	0.954517		1,170

94

CONDENSED FINANCIAL INFORMATION—(Continued)

		$0.601225		$0.601225		$0.601225		$0.601225
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP UltraSmall-Cap		2011	$	0.601225	$	0.481978		533,798
Subaccount Inception Date September 6, 2007		2010	$	0.410092	$	0.601225		523,490
		2009	$	0.296207	$	0.410092		86,391
		2008	$	0.887004	$	0.296207		51,388
		2007	$	1.000000	$	0.887004		0
ProFund VP U.S. Government Plus		2011	$	1.158751	$	1.642527		152,475
Subaccount Inception Date September 6, 2007		2010	$	1.065458	$	1.158751		270,648
		2009	$	1.601015	$	1.065458		217,807
		2008	$	1.082444	$	1.601015		408,948
		2007	$	1.000000	$	1.082444		595,500
ProFund VP Utilities		2011	$	0.842042	$	0.977292		274,258
Subaccount Inception Date September 6, 2007		2010	$	0.804692	$	0.842042		540,184
		2009	$	0.735767	$	0.804692		532,225
		2008	$	1.074995	$	0.735767		430,863
		2007	$	1.000000	$	1.074995		1,362,559
Access VP High Yield FundSM		2011	$	1.288829	$	1.307897		405,894
Subaccount Inception Date September 6, 2007		2010	$	1.121335	$	1.288829		441,633
		2009	$	0.971112	$	1.121335		2,014,855
		2008	$	1.031187	$	0.971112		2,581,435
		2007	$	1.000000	$	1.031187		0

⁽¹⁾ The beginning and ending AUV for this fund also reflects a 0.20% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.

⁽²⁾ The beginning and ending AUV for this fund also reflects a 0.15% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.

95

APPENDIX

EXCESS INTEREST ADJUSTMENT EXAMPLES

Money that you surrender from, transfer out of, or apply to an annuity payment option, from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the guaranteed period option) may be subject to an excess interest adjustment (“EIA”). At the time you request a surrender, if interest rates set by the Company have risen since the date of the initial guarantee, the excess interest adjustment will result in a lower cash value. However, if interest rates have fallen since the date of the initial guarantee, the excess interest adjustment will result in a higher cash value.

Excess interest adjustments will not reduce theadjusted policy value for a guaranteed period option below the premium payments and transfers to that guaranteed period option, less any prior partial surrenders and transfers from the guaranteed period option, plus interest at the policy’s minimum guaranteed effective annual interest rate. This is referred to as the excess interest adjustment floor.

The formula that will be used to determine the excess interest adjustment is:

S* (G-C)* (M/12)

S	=	Gross amount being surrendered that is subject to the excess interest adjustment
G	=	Guaranteed interest rate in effect for the policy
M	=	Number of months remaining in the current option period, rounded up to the next higher whole number of months.
C	=	Current guaranteed interest rate then being offered on new premiums for the next longer option period than “M”. If this policy form or such an option period is no longer offered, “C” will be the U.S.Treasury rate for the next longer maturity (in whole years) than “M” on the 25th day of the previous calendar month, plus up to 2% (the amount of the “adjustment” will be based on an actuarial risk based analysis considering a number of financial criteria including the prevailing interest rate environment).
*	=	multiplication
^	=	exponentiation

The following examples are for illustrative purposes only and ore calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

96

Excess Interest Adjustment Examples—(Continued)

Example 1 (Full Surrender, rates increase by 3%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Surrender:	Middle of policy year 2
Cumulative Earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of excess interest adjustment	= 4,181.21
Amount subject to excess interest adjustment	= 54,181.21 – 4,181.21 = 50,000.00
Excess interest adjustment floor	= 50,000.00 * (1.015) ^ 1.5 = 51,129.21
Excess interest adjustment
G = .055
C = .085
M = 42
Excess interest adjustment	= S* (G-C)* (M/12)
	= 50,000.00 * (.055-.085) * (42/12)
	= -5,250.00, but excess interest adjustment cannot cause the
	adjusted policy value to fall below the excess interest
	adjustment floor, so the adjustment is limited to
	51,129.21 - 54,181.21 = -3,052.00
Adjusted policy value	= policy value + excess interest adjustment
	= 54,181.21 + (-3,052.00) = 51,129.21
Upon full surrender of the policy, the net surrender value (adjusted policy value less any surrender charge) will never be less than that required by the non-forfeiture laws of your state.

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

97

Excess Interest Adjustment Examples—(Continued)

Example 2 (Full Surrender, rates decrease by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Surrender:	Middle of policy year 2
Policy value at middle of policy year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative Earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of excess interest adjustment	= 4,181.21
Amount subject to excess interest adjustment	= 54,181.21 – 4,181.21 = 50,000.00
Excess interest adjustment floor	= 50,000.00 * (1.015) ^ 1.5 = 51,129.21
Excess interest adjustment
G = .055
C = .045
M = 42
Excess interest adjustment	= S* (G-C)* (M/12)
	= 50,000.00 * (.055-.045) * (42/12) = 1,750.00
Adjusted policy value	= 54,181.21 + 1,750.00 = 55,931.21
Upon full surrender of the policy, the net surrender value will never by less than that required by the non-forfeiture
laws of your state. For the purpose of these illustrations no surrender charges are assumed.

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

On a partial surrender, the Company will pay the policyholder the full amount of surrender requested (as long as the policy value is sufficient). Amounts surrendered will reduce the policy value by an amount equal to:

	R - E + SC
R	=	the requested partial surrender;
E	=	the excess interest adjustment; and
SC	=	the surrender charges on (EPW - E); where
EPW	=	the excess partial withdrawal amount.

98

Excess Interest Adjustment Examples—(Continued)

Example 3 (Partial Full Surrender, rates increase by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Partial surrender:	$20,000; middle of policy year 2
Policy value at middle of policy year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative Earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of excess interest adjustment	= 4,181.21
Excess interest adjustment
S = 20,000 – 4,181.21 = 15,818.79
G = .055
C = .065
M = 42
E = 15,818.79 * (.055 - .065) * (42/12) =	= 54,181.21 - (R - E + surrender charge)
-553.66
Remaining policy value at middle of policy	= 54,181.21 - (20,000.00 - (-553.66) + 0.00) = 33,627.55
year 2

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

Example 4 (Partial Surrender, rates decrease by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Partial surrender:	$20,000; middle of policy year 2
Policy value at middle of policy year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative Earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of excess interest adjustment	= 4,181.21
Excess interest adjustment
S = 20,000 – 4,181.21 = 15,818.79
G = .055
C = .045
M = 42
E = 15,818.79 * (.055 - .045)* (42/12) =	= 54,181.21 - (R - E + surrender charge)
553.66
Remaining policy value at middle of policy	= 54,181.21 - (20,000.00 – 553.66 + 0.00) = 34,734.87
year 2

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

99

APPENDIX

DEATH BENEFIT

Adjusted Partial Surrender. If you make a partial surrender (withdrawal), then your guaranteed minimum death benefit is reduced by an amount called the adjusted partial surrender. The amount of the reduction depends on the relationship between your death benefit and policy value. The adjusted partial surrender is equal to (1) multiplied by

(2) divided by (3), where:

(1) is the amount of the gross partial surrender;

(2) is the value of the current death proceeds immediately prior to the gross partial surrender;

(3) is the policy value immediately prior to the gross partial surrender.

The following examples describe the effect of a surrender on the guaranteed minimum death benefit and policy value.

Example 1 (Assumed Facts for Example)

Current guaranteed minimum death benefit before surrender	$	75,000
Current policy value before surrender	$	50,000
Current death proceeds	$	75,000
Remaining guaranteed minimum death benefit adjustment free amount	$	0
Total Gross Partial Surrender	$	15,494
Adjusted partial surrender = 15,494 * 75,000 / 50,000	$	23,241
New guaranteed minimum death benefit (after surrender) = 75,000 – 23,241	$	51,759
New policy value (after surrender) = 50,000—15,494	$	34,506

Summary:
Reduction in guaranteed minimum death benefit	=$	23,241
Reduction in policy value	=$	15,494

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

** The guaranteed minimum death benefit is reduced more than the policy value because the guaranteed minimum death benefit was greater than the policy value just prior to the surrender.

100

Death Benefit—(Continued)

Example 2 (Assumed Facts for Example)

Current guaranteed minimum death benefit before surrender	$	50,000
Current policy value before surrender	$	75,000
Current death proceeds	$	75,000
Remaining guaranteed minimum death benefit adjustment free surrender amount	$	0
Total Gross Partial Surrender	$	15,556
Adjusted partial surrender = 15,556 * 75,000 / 75,000	$	15,556
New guaranteed minimum death benefit (after surrender) = 50,000—15,556	$	34,444
New policy value (after surrender) = 75,000—15,556	$	59,444

Summary:
Reduction in guaranteed minimum death benefit	=$	15,556
Reduction in policy value	=$	15,556

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

** The guaranteed minimum death benefit and policy value are reduced by the same amount because the policy value was higher than the guaranteed minimum death benefit just prior to the surrender.

101

Death Benefit—(Continued)

Hypothetical Example

In this example, certain death benefit values at various points in time are depicted based on hypothetical assumed rates of performance. This example is for illustrative purposes only and assumes a single $100,000 premium payment by a sole owner and annuitant who is age 50. It further assumes no subsequent premium payments or withdrawals.

End of Year	Net Rate of Return  for Fund*			Return of Premium		Annual Step-Up		Greater of 5%  & Monthly Step-Up**
Issue		N/A		$	100,000	$	100,000	$	100,000
1		-4	%	$	100,000	$	100,000	$	105,000
2		18	%	$	100,000	$	110,093	$	110,250
3		15	%	$	100,000	$	124,955	$	124,431
4		-7	%	$	100,000	$	124,955	$	124,431
5		2	%	$	100,000	$	124,955	$	127,628
6		10	%	$	100,000	$	124,955	$	134,010
7		14	%	$	100,000	$	140,257	$	140,710
8		-3	%	$	100,000	$	140,257	$	147,746
9		17	%	$	100,000	$	154,706	$	155,133
10		6	%	$	100,000	$	161,668	$	162,889

* The assumed rate does reflect the deduction of a hypothetical fund fee but does not reflect the deduction of any other fees, charges or taxes. The death benefit values do reflect the deduction of hypothetical base policy fees and hypothetical death benefit fees. Different hypothetical returns and fees would produce different results.

** For years 1-2, the cumulative portion is higher, for the remaining years the step-up portion is higher (if the hypothetical returns for these years had been lower, the cumulative portion would be larger than the step-up portion).

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APPENDIX

BENEFICIARY EARNINGS ENHANCEMENT—EXTRA II RIDER—ADDITIONAL INFORMATION

Assume the Beneficiary Earnings Enhancement—Extra II is added to a new policy opened with $100,000 initial premium. The annuitant is less than age 71 on the Rider Date. On the first and second Rider Anniversaries, the Policy Value is $110,000 and $95,000 respectively when the Rider Fees are deducted. The annuitant adds $25,000 premium in the 3rd Rider Year when the Policy Value is equal to $115,000 and then takes a withdrawal of $35,000 during the 4th Rider Year when the Policy Value is equal to $145,000. After 5 years, the Policy Value is equal to $130,000 and the death proceeds are equal to $145,000.

Example 1

Account Value on Rider Date (equals initial policy value since new policy)	$	100,000
Additional Death Benefit during first Rider Year	$	0
Rider Fee on first Rider Anniversary (= Rider Fee * Policy Value = 0.55% * $110,000)	$	605
Additional Death Benefit during 2nd Rider Year (= sum of total Rider Fees paid)	$	605
Rider Fee on second Rider Anniversary (= Rider Fee * Policy Value = 0.55% * $95,000)	$	522.50
Additional Death Benefit during 3rd Rider Year (= sum of total Rider Fees paid = $605 + $522.50)	$	1,127.50
Rider Benefit Base in 3rd Rider Year prior to Premium addition (= Account Value less premiums added since Rider Date = $115,000 – $0)	$	115,000
Rider Benefit Base in 3rd Rider Year after Premium addition (= $140,000 – $25,000)	$	115,000
Rider Benefit Base in 4th Rider Year prior to withdrawal (= Account Value less premiums added since Rider Date = $145,000 – $25,000)	$	120,000
Rider Benefit Base in 4th Rider Year after withdrawal = (Account Value less premiums added since Rider Date =$110,000 – $25,000)	$	85,000
Rider Benefit Base in 5th Rider Year (= $130,000 – $25,000)	$	105,000
Additional Death Benefit = Rider Benefit Percentage * Rider Benefit Base = 30% * $105,000	$	31,500
Total Death Proceeds in 5th Rider Year (= base policy Death Proceeds + Additional Death Benefit Amount = $145,000 + $31,500)	$	176,500

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APPENDIX

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS

The following examples show the effect of withdrawals on the benefits under the Living Benefits Rider.

GUARANTEED MINIMUM ACCUMULATION BENEFIT

Gross partial withdrawals will reduce the guaranteed future value by an amount equal to the greater of:

1) the gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the amount of gross partial withdrawal;

B is the policy value immediately prior to the gross partial withdrawal; and

C is the guaranteed future value immediately prior to the gross partial withdrawal.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under the guaranteed minimum accumulation benefit.

EXAMPLE 1:

Assumptions:

Policy value prior to withdrawal (“PV”) = $90,000

Guaranteed future value prior to withdrawal (“GFV”) = $100,000

Gross withdrawal amount (“WD”) = $10,000

Step One. What is the pro rata value of the amount withdrawn?

1. Formula is (WD / PV) * GFV = pro rata amount

2. ($10,000 / $90,000) * $100,000 = $11,111.11

Step Two. Which is larger, the $10,000 withdrawal or the $11,111.11 pro rata amount?

$11,111.11 pro rata amount

Step Three. After the withdrawal is taken, what will be new guaranteed future value?

$100,000—$11,111.11 = $88,888.89

Result. If no more withdrawals are taken, the guaranteed future value on the 10th rider anniversary is $88,888.89.

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LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS—(Continued)

EXAMPLE 2:

Assumptions:

PV = $120,000

GFV= $100,000

WD= $10,000

Step One. What is the pro rata value of the amount withdrawn?

1. Formula is (WD / PV) * GFV = pro rata amount

2. ($10,000 / $120,000) * $100,000 = $8,333.33

Step Two. Which is larger, the $10,000 withdrawal or the $8,333.33 pro rata amount?

$10,000 withdrawal

Step Three. After the withdrawal is taken, what will be new guaranteed future value?

$100,000—$10,000 = $90,000

Result. If no more withdrawals are taken, the guaranteed future value on the 10th Rider Anniversary is $90,000.

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

Total Withdrawal Base. Gross partial withdrawals up to the maximum annual withdrawal amount will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the total withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the total withdrawal base prior to the withdrawal of the excess amount.

Minimum Remaining Withdrawal Amount. Gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by the same amount (dollar-for-dollar). Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

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LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS—(Continued)

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the minimum remaining withdrawal amount after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under the guaranteed lifetime withdrawal benefit.

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Minimum remaining withdrawal amount (“MRWA”)

2. Total withdrawal base (“TWB”)

3. Maximum annual withdrawal amount (“MAWA”)

EXAMPLE 1 (7% “PRINCIPAL BACK”):

Assumptions:

TWB = $100,000

MRWA = $100,000

7% WD would be $7,000 (7% of the current $100,000 total withdrawal base)

WD = $7,000

Excess withdrawal (“EWD”) = None

PV = $100,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the withdrawal greater than the “principal back” maximum annual withdrawal amount?

No. There is no excess withdrawal under the “principal back” guarantee if no more than $7,000 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $7,000 (there is no excess to deduct)

2. $100,000—$7,000 = $93,000.

Result. In this example, because no portion of the withdrawal was in excess of $7,000, the “principal back” total withdrawal base does not change and the “principal back” minimum remaining withdrawal amount is $93,000.00.

EXAMPLE 2 (7% “PRINCIPAL BACK”):

Assumptions:

TWB = $100,000

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LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS—(Continued)

MRWA = $100,000

7% WD would be $7,000 (7% of the current $100,000 total withdrawal base)

WD = $8,000

EWD = $1,000 ($8,000—$7,000)

PV = $90,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $8,000—$7,000 = $1,000 (the excess withdrawal amount)

Step Two. Calculate how much of the “principal back” minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV—7% WD)) * (MRWA—7% WD)

2. ($1,000 / ($90,000—$7,000)) * ($100,000—$7,000) = $1,120.48

Step Three. Which is larger, the actual $1,000 excess withdrawal amount or the $1,120.48 pro rata amount?

$1,120.48 pro rata amount

Step Four. What is the “principal back” minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $7,000 + $1,120.48 (pro rata excess) = $8,120.48

2. $100,000—$8,120.48 = $91,879.52

Result. The “principal back” minimum remaining withdrawal amount is $91,879.52.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $7,000, the “principal back” total withdrawal base would remain at $100,000 and the “principal back” maximum annual withdrawal amount would be $7,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 7% is based on).

New “principal back” total withdrawal base:

Step One. The total withdrawal base is only reduced by the excess withdrawal amount or the pro rata amount if greater.

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV—7% WD)) * TWB before any adjustments

2. ($1,000 / ($90,000—$7,000)) * $100,000 = $1,204.82

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LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS—(Continued)

Step Three. Which is larger, the actual $1,000 excess withdrawal amount or the $1,204.82 pro rata amount?

$1,204.82 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$100,000—$1,204.82 = $98,795.18

Result. The new “principal back” total withdrawal base is $98,795.18

New “principal back” maximum annual withdrawal amount:

Because the “principal back” total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 7% “principal back” guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new “principal back” maximum annual withdrawal amount?

$98,795.18 (the adjusted total withdrawal base) * 7% = $6,915.66

Result. Going forward, the maximum you can take out in a rider year is $6,915.66 without causing an excess withdrawal for the “principal back” guarantee and further reduction of the “principal back” total withdrawal base.

EXAMPLE 3 (5% “FOR LIFE”):

Assumptions:

TWB = $100,000

MRWA = $100,000

5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)

WD = $5,000

Excess withdrawal (“EWD”) = None

PV = $100,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the withdrawal greater than the “for life” maximum annual withdrawal amount?

No. There is no excess withdrawal under the “for life” guarantee if no more than $5,000 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $5,000 (there is no excess to deduct).

2. $100,000—$5,000 = $95,000.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the “for life” total withdrawal base does not change and the “for life” minimum remaining withdrawal amount is $95,000.00.

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LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS—(Continued)

EXAMPLE 4 (5% “FOR LIFE”):

Assumptions:

TWB = $100,000

MRWA = $100,000

5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)

WD = $7,000

EWD = $2,000 ($7,000—$5,000)

PV = $90,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $7,000—$5,000 = $2,000 (the excess withdrawal amount)

Step Two. Calculate how much of the “for life” minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV—5% WD)) * (MRWA—5% WD)

2. ($2,000 / ($90,000—$5,000)) * ($100,000—$5,000) = $2,235.29

Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,235.29 pro rata amount?

$2,235.29 pro rata amount

Step Four. What is the “for life” minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $5,000 + $2,235.29 (pro rata excess) = $7,235.29

2. $100,000—$7,235.29 = $92,764.71

Result. The “for life” minimum remaining withdrawal amount is $92,764.71.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $5,000, the “for life” total withdrawal base would remain at $100,000 and the “for life” maximum annual withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 5% is based on).

New “for life” total withdrawal base:

Step One. The total withdrawal base is only reduced by the excess withdrawal amount or the pro rata amount if greater.

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LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS—(Continued)

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV—5% WD)) * TWB before any adjustments

2. ($2,000 / ($90,000—$5,000)) * $100,000 = $2,352.94

Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,352.94 pro rata amount?

$2,352.94 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$100,000—$2,352.94 = $97,647.06

Result. The new “for life” total withdrawal base is $97,647.06

New “for life” maximum annual withdrawal amount:

Because the “for life” total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 5% “for life” guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new “for life” maximum annual withdrawal amount?

$97,647.06 (the adjusted total withdrawal base) * 5% = $4,882.35

Result. Going forward, the maximum you can take out in a rider year is $4,882.35 without causing an excess withdrawal for the “for life” guarantee and further reduction of the “for life” total withdrawal base.

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APPENDIX

PAM METHOD TRANSFERS

To make the Living Benefits Rider available, we monitor your policy value and guarantees under the rider daily and periodically transfer amounts between your selected investment options and the PAM Subaccount. We determine the amount and timing of PAM Method transfers between the investment options and the PAM Subaccount according to a mathematical model.

The mathematical model is designed to calculate how much of your policy value should be allocated to the PAM Subaccount. Based on this calculation, transfers into or out of the PAM Subaccount will occur (subject to the previously disclosed thresholds). The formula is:

Percent of Policy Value required in PAM Subaccount (or X) = e^{-Dividend*Time} *(1- NormDist(d1))

where:

e = Base of the Natural Logarithm

NormDist = Cumulative Standard Normal Distribution

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

In order to calculate the percent of policy value required in the PAM Subaccount, we must first calculate d1:

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

where:

ln = Natural Logarithm Function

G = Guarantee Ratio

R = Rate

F = Fees

V = Volatility

T = Time

After calculating d1, the percent of policy value required in the PAM Subaccount can be calculated. Once calculated, appropriate transfers into or out of the PAM Subaccount will occur (subject to the thresholds).

Following is a brief discussion of the values used in the formula.

The POLICY VALUE includes the value in both the investment options and in the PAM Subaccount.

The GUARANTEE RATIO is the policy value divided by 7% “Principal Back” Minimum Remaining Withdrawal Amount.

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PAM METHOD TRANSFERS—(Continued)

The RATE is the interest rate used for the PAM Method. It is based on a long-term expectation based on historical interest rates and may vary over time.

The FEES is an approximation of average policy fees and charges associated with policies that have elected the Living Benefits Rider. This value may change over time.

The VOLATILITY represents the volatility of the returns of policy value for all in force policies and is based on the long-term expectation of the degree to which the policy values tend to fluctuate. This value may vary over time.

The TIME is an approximation based on actuarial calculations of historical average number of years (including any fraction) which we anticipate remain until any potential payments are made under the benefit. This value may vary over time.

The PERCENT OF POLICY VALUE TO BE ALLOCATED TO THE PAM SUBACCOUNT is computed for each policy. Ultimately the allocation for a policy takes into account the guarantees under the rider and the limit on allocations to the PAM Subaccount.

The CUMULATIVE STANDARD NORMAL DISTRIBUTION function assumes that random events are distributed according to the classic bell curve. For a given value it computes the percentage of such events which can be expected to be less than that value.

The NATURAL LOGARITHM function for a given value, computes the power to which e must be raised, in order to result in that value. Here, e is the base of the natural logarithms, or approximately 2.718282.

Example: Day 1: Policy Value Declines by 10%

For purposes of this example we will assume that the policy value declines by 10% to $90,000 the day after the rider issue date from the initial premium amount of $100,000 producing a guarantee ratio of 90% ($90,000/$100,000). We will also assume:

Guarantee Ratio = 90% Rate = 4.5% Volatility = 10% Fees = 3% Time = 20

First we calculate d1.

d1=[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

d1=[ln(.90)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]

d1=.658832

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PAM METHOD TRANSFERS—(Continued)

Using the value we just calculated for d1 we can now calculate the percent of policy value required in the PAM Subaccount.

Percent of Policy Value in PAM Subaccount (or X) = e^{-Dividend*Time} *(1-NormDist(d1)) X= (2.718282 ^ -.03 * 20) * (1 – NormDist(.658832)) X = 13.9948%

Therefore, 13.9948% of the policy value is transferred to the PAM Subaccount, resulting in a total transfer of $12,595.32.

Day 2: Policy Value Recovers to 105% of Initial Value after the 10% Decline

For purposes of this example we will assume that after the policy value declined to $90,000 it recovered the next day to $105,000 producing a guarantee ratio of 105% ($105,000/$100,000). We will also assume:

Guarantee Ratio = 105% Rate = 4.5% Volatility = 10% Fees = 3% Time = 20

First we calculate d1.

d1=[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

d1=[ln(1.05)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]

d1= 1.003524

Using the value we just calculated for d1 we can now calculate the percent of policy value required in the PAM Subaccount.

Percent of Policy Value in PAM Subaccount (or X) = e^{-Dividend*Time} *(1—NormDist(d1)) X= (2.718282 ^ -.03 * 20) * (1 – NormDist(1.003524)) X = 8.6605%

While the mathematical model would suggest we transfer only a portion of the policy value in the PAM Subaccount into your investment options (leaving 8.6605% in the PAM Subaccount), all of the policy value in the PAM Subaccount will be transferred into your investment options. If the Guarantee Ratio equals or exceeds 100%, then your policy value is greater than or equal to the value of the guarantee and there is no current need for any policy value to be allocated to the PAM Subaccount.

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APPENDIX

5 FOR LIFE RIDER—NO LONGER AVAILABLE FOR NEW SALES

You may elect to purchase the optional 5 For Life rider which provides you with a guaranteed lifetime withdrawal benefit if you invest only in certain designated choices. This rider is available during the accumulation phase. The 5 for Life Rider is only available for annuitant issue ages through age. The maximum issue age may be lower if required by state law.

5 For Life Benefit

This benefit is intended to provide a level of cash withdrawals and payments from us, if necessary, regardless of the performance of the variable investment choices you select. If you elect this benefit you can receive (first as withdrawals from your policy value and, if necessary, as payments from us) up to 5% of the total withdrawal base each calendar year starting with the calendar year immediately following the annuitant’s 59th birthday and lasting until the annuitant’s death (unless your total withdrawal base is reduced to zero because of “excess withdrawals”—see Total Withdrawal Base and Adjusted Partial Withdrawals, below). All withdrawals before the annuitant is 59 are excess withdrawals: a penalty tax may be assessed on amounts withdrawn from the policy before the owner reaches age 59 ¹/2.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 55 years old. Further assume that you do not make any additional withdrawals or premium payments, but that after five years your policy value has declined to $70,000 solely because of negative investment performance. You could still receive up to $5,000 (5% of $100,000) each calendar year for the rest of your life (assuming that you do not withdraw more than $5,000 in any one year).

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—5 For Life Rider” below for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the total withdrawal base by a pro rata amount.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider for you to take withdrawals each rider year that are less than or equal to the maximum annual withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the maximum annual withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the maximum annual withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

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• You should carefully manage withdrawals because excess withdrawals will have adverse consequences on the benefits provided under the rider. Over the period of time during which you take withdrawals, there is the risk that you may need funds in excess of the maximum annual withdrawal amount, and if you do not have other sources of income available, you may need to take (excess) withdrawals that will reduce your maximum annual withdrawal amount, your total withdrawal base, and your minimum remaining withdrawal amount.

• All policy value must be allocated to a limited number of specified funds (see “Designated Investment Choices” below). You should consult with your registered representative to assist you in determining whether these investment restrictions are suited for your financial needs and risk tolerance.

• The tax rules for qualified policies may limit the value of this rider. You should consult a qualified tax advisor before electing the 5 For Life Rider for a qualified policy.

Like all withdrawals, withdrawals under this benefit also:

• reduce your policy value;

• reduce your death benefit and other benefits;

• may be subject to surrender charges and excess interest adjustments;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Issue Requirements. The Company will not issue the 5 For Life Rider unless:

• the annuitant is age 90 or younger;

• the annuitant is also an owner (except in the case of non-natural owners); and

• there are no more than two owners.

Maximum Annual Withdrawal Amount. You can withdraw up to the maximum annual withdrawal amount in any calendar year without causing an excess withdrawal. (See “Adjusted Partial Withdrawals” below.)

The maximum annual withdrawal amount is zero if the annuitant is not 59 years old on the rider date (i.e., the date the rider is added to the policy) and remains zero until the first day of the calendar year after the annuitant’s 59th birthday. If the annuitant is at least 59 years old on the rider date, the maximum annual withdrawal amount in the calendar year the rider is elected is equal to 5% of the total withdrawal base prorated based on the number of days from the rider date to the end of the calendar year. Thereafter, the maximum annual withdrawal amount for each subsequent calendar year is equal to 5% of the total withdrawal base.

For qualified policies: The maximum annual withdrawal amount for the year that the plan participant (generally the annuitant) becomes 70 ¹/2 years old (and each subsequent calendar year) is equal to the greater of:

• the maximum annual withdrawal amount described above; or

• an amount equal to a minimum required distribution amount calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, and (4) amounts from the current calendar year (no carry-over from past years). An amount not calculated as set forth above cannot be used as the maximum annual withdrawal amount.

You can receive up to the maximum annual withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us) take withdrawals under this rider regardless of your policy value; however, once your policy value reaches zero, you cannot make premium payments and all other policy features,

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benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits under this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

Please note:

• The maximum annual withdrawal amount described above is based on calendar years, not rider or policy years.

• If the rider is added prior to the annuitant’s 59th birthday, the maximum annual withdrawal amount will be zero until the beginning of the calendar year (January 1st) after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your maximum annual withdrawal amount that is not withdrawn during a calendar year for withdrawal in a future year. This means that if you do not take the maximum annual withdrawal amount during a calendar year, you cannot take more than the maximum annual withdrawal amount in the next calendar year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

Total Withdrawal Base. We use the total withdrawal base to calculate the maximum annual withdrawal amount. The total withdrawal base on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the total withdrawal base is equal to the total withdrawal base on the rider date, plus subsequent premium payments, less subsequent adjusted partial withdrawals.

Please note:

• We determine the total withdrawal base solely to calculate the maximum annual withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal. It is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the total withdrawal base on the rider date is generally equal to the policy value (less any premium enhancement if the rider is added in the first policy year), the maximum annual withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

Minimum Remaining Withdrawal Amount. The minimum remaining withdrawal amount represents the total amount of guaranteed withdrawals still available under the rider. The minimum remaining withdrawal amount on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the minimum remaining withdrawal amount is equal to:

• the minimum remaining withdrawal amount on the rider date; plus

• subsequent premium payments; less

• subsequent adjusted partial withdrawals (as described below).

Adjusted Partial Withdrawals. Each rider year, gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount on a dollar-for-dollar basis, but will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount in a rider year (“excess withdrawals”) will reduce the total withdrawal base and minimum remaining withdrawal amount by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value) possibly to zero. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—5 For Life Rider” below for examples showing the effect of hypothetical withdrawals in more detail, including any excess withdrawal that results in pro rate adjustments. Excess withdrawals may eliminate the guarantee offered by this rider.

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Please note: Upon the death of the annuitant, the 5 for Life Rider terminates and there are no more additional guaranteed withdrawals.

Rider Fee. A rider fee, 0.60% of the total withdrawal base on each rider anniversary, is charged annually prior to annuitization. We will also deduct the rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice. Generally, the rider fee is deducted regardless of your values (i.e., even if your policy value exceeds your total withdrawal base.)

Designated Investment Choices. If you elect the 5 For Life rider, you must allocate 100% of your policy value to one or more of the following “designated investment choices:”

TA AEGON Money Market—Service Class

TA Asset Allocation—Conservative—Service Class

TA Asset Allocation—Moderate—Service Class

TA Asset Allocation—Moderate Growth—Service Class

TA International Moderate Growth—Service Class

TA Multi-Managed Balanced—Service Class

Fixed Account

If you elect this rider, you may transfer amounts among the designated investment choices; however, you cannot transfer any amount to any other subaccount. After the third rider anniversary, you can terminate this rider. Terminating the rider will result in losing all your benefits under this rider. Starting the next business day, you may transfer to a non-designated choices.

Upgrades. You can upgrade the total withdrawal base to the policy value after the third rider anniversary by sending us written notice (we reserve the right to limit your upgrade election to a 30-day period following a rider anniversary after the fourth rider anniversary) as long as you are younger than the maximum rider issue age. At this time the minimum remaining withdrawal amount and maximum annual withdrawal amount will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date and its own rider fee percentage (which may be higher than your current rider fee percentage). The new rider date will be the date the Company receives all necessary information.

Annuitization. If you have reached your maximum annuitization date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments equal to your maximum annual withdrawal amount.

Death Benefit. If you elect the 5 For Life benefit and if, upon the death of the annuitant, the minimum remaining withdrawal amount is great than the base policy benefit, then we will add the excess amount to the death benefit payable.

Please note: If an owner who is not the annuitant dies and the surviving spouse continues the policy, no additional amount is payable. If the policy is not continued, the surviving owner (who is also the sole beneficiary) may elect to receive lifetime income payments equal to the maximum annual withdrawal amount divided by the number of payments each year instead of receiving the cash value.

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Termination. The 5 For Life rider will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the 5 For Life rider (you may not terminate the rider before the third rider anniversary);

• the annuitant’s death;

• annuitization (however, if you have reached your mandatory annuitization date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your maximum annual withdrawal amount); or

• termination of your policy.

Please note: This feature terminates upon annuitization and there is a mandatory annuitization date.

GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS—5 FOR LIFE^SM RIDER

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Total withdrawal base (“TWB”)

2. Maximum annual withdrawal amount (“MAWA”)

3. Minimum remaining withdrawal amount (“MRWA”)

Total Withdrawal Base. Gross partial withdrawals up to the maximum annual withdrawal amount will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the total withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the total withdrawal base prior to the withdrawal of the excess amount.

Minimum Remaining Withdrawal Amount. Gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by the same amount (dollar-for-dollar). Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the minimum remaining withdrawal amount after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

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The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

EXAMPLE 1 (5 FOR LIFE^SM):

Assumptions:

TWB = $100,000

MRWA = $100,000

5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)

WD = $5,000

Excess withdrawal (“EWD”) = None

PV = $100,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the withdrawal greater than the maximum annual withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $5,000 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $5,000 (there is no excess to deduct)

2. $100,000—$5,000 = $95,000.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the total withdrawal base does not change and the minimum remaining withdrawal amount is $95,000.00.

EXAMPLE 2 (5 FOR LIFE^SM):

Assumptions:

TWB = $100,000

MRWA = $100,000

5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)

WD = $7,000

EWD = $2,000 ($7,000—$5,000)

PV = $90,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $7,000—$5,000 = $2,000 (the excess withdrawal amount)

Step Two. Calculate how much of the minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV—5% WD)) * (MRWA—5% WD)

2. ($2,000 / ($90,000—$5,000)) * ($100,000—$5,000) = $2,235.29

Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,235.29 pro rata amount?

$2,235.29 pro rata amount

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Step Four. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $5,000 (MAWA) + $2,235.29 (pro rata excess) = $7,235.29

2. $100,000—$7,235.29 = $92,764.71

Result. The minimum remaining withdrawal amount is $92,764.71.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $5,000, the total withdrawal base would remain at $100,000 and the maximum annual withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 5% is based on).

New total withdrawal base:

Step One. The total withdrawal base is only reduced by amount of the excess or the pro rata amount if greater.

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV—5% WD)) * TWB before any adjustments

2. ($2,000 / ($90,000—$5,000)) * $100,000 = $2,352.94

Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,352.94 pro rata amount?

$2,352.94 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$100,000—$2,352.94 = $97,647.06

Result. The new total withdrawal base is $97,647.06

New maximum annual withdrawal amount:

Because the total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.

Step One. What is the new maximum annual withdrawal amount?

$97,647.06 (the adjusted total withdrawal base) * 5% = $4,882.35

Result. Going forward, the maximum you can take out in a year is $4,882.35 without causing an excess withdrawal for the guarantee and further reduction of the total withdrawal base.

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The 5 For Life^SM rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the 5 For Life^SM rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

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APPENDIX

5 FOR LIFE^SM WITH GROWTH RIDER—NO LONGER AVAILABLE FOR NEW SALES

You may elect to purchase the optional 5 for Life^SM with Growth rider which provides you with a guaranteed lifetime withdrawal benefit. This rider is available during the accumulation phase. The 5 for Life^SM with Growth rider is available for annuitant issue ages. The maximum issue age may be lower if required by state law.

5 for Life^SM with Growth Benefit

This benefit is intended to provide an accumulating withdrawal base during the growth period, thereafter a stable withdrawal base and a level of cash withdrawals regardless of the performance of the variable investment choices you select. If you elect this benefit, we will provide a maximum annual withdrawal amount regardless of your policy value while the annuitant is living (your ability to change the frequency or amount of your withdrawal ceases if your policy value reaches zero). Under this benefit, you can withdraw up to 5% of the total withdrawal base each calendar year that the annuitant is living (unless your total withdrawal base is reduced to zero because of “excess withdrawals”; see “Total Withdrawal Base” and “Total Withdrawal Base Adjustments,” below). All withdrawal before the annuitant is 59 are excess withdrawals, and a penalty tax may be assessed on amounts withdrawn form the policy before the owner reaches age 59 ¹/2.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 61 years old. Further assume that you do not make any additional withdrawals or premium payments, but that after five years your policy value has declined to $70,000 solely because of negative investment performance. At that time, you could still withdraw up to $6,381 (5% of the total withdrawal base) each calendar year for the rest of your life (assuming that you do not withdraw more than $6,381 in any one year).

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—5 For Life^SM with Growth Rider” below for examples showing the effect of hypothetical withdrawals in more detail including an excess withdrawal that reduces the total withdrawal base by a pro rate amount.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider for you to take withdrawals each rider year that are less than or equal to the maximum annual withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the maximum annual withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the maximum annual withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

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• You should carefully manage withdrawals because excess withdrawals will have adverse consequences on the benefits provided under the rider. Over the period of time during which you take withdrawals, there is the risk that you may need funds in excess of the maximum annual withdrawal amount, and if you do not have other sources of income available, you may need to take (excess) withdrawals that will reduce your maximum annual withdrawal amount, your total withdrawal base, and your minimum remaining withdrawal amount.

• All policy value must be allocated to a limited number of specified funds (see “Designated Investment Choices” below). You should consult with your registered representative to assist you in determining whether these investment restrictions are suited to your financial needs and risk tolerance.

• The tax rules for qualified policies may limit the value of this rider. You should consult a qualified tax advisor before electing the 5 For Life^SM with Growth Rider for a qualified policy.

Like all withdrawals, withdrawals under this benefit also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to surrender charges and excess interest adjustments;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Issue Requirements. The Company will not issue the 5 for Life^SM with Growth rider unless:

• the annuitant is at least 55 not yet age 81;

• the annuitant is also an owner (except in the case of non-natural owners); and

• there are no more than two owners.

Maximum Annual Withdrawal Amount. You can withdraw up to the maximum annual withdrawal amount in any calendar year without causing an excess withdrawal. See “Total Withdrawal Base Adjustments” and “Minimum Remaining Withdrawal Adjustments,” below.

The maximum annual withdrawal amount is zero if the annuitant is not 59 years old on the rider date (i.e., the date the rider is added to the policy) and remains zero until the first day of the calendar year after the annuitant’s 59th birthday. If the annuitant is at least 59 years old on the rider date, the maximum annual withdrawal amount in the calendar year the rider is elected is equal to 5% of the total withdrawal base prorated based on the number of days from the rider date to the end of the calendar year. Thereafter the maximum annual withdrawal amount for each subsequent calendar year is equal to 5% of the total withdrawal base.

For qualified policies: The maximum annual withdrawal amount for the year that the plan participant (generally the annuitiant) becomes 70  ¹/2 years old (and each subsequent calendar year) is equal to the greater of:

• the maximum annual withdrawal amount described above; or

• an amount equal to a minimum required distribution amount calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (including the present value of any additional benefits provided under the policy to the extent required to be taken into account under IRS guidance) and (4) amounts from the current calendar year (no carry-over from past years). An amount not calculated as set forth above cannot be used as the maximum annual withdrawal amount.

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You can take withdrawals under this rider regardless of your policy value; however, once your policy value reaches zero, you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to continue withdrawals guaranteed by this rider after your policy value reaches zero, you must select an amount and frequency of future withdrawals. Once selected, the amount and frequency of future withdrawals after your policy value reaches zero cannot be changed.

Please note:

• The maximum annual withdrawal amount described above is based on calendar years, not rider or policy years.

• If the rider is added prior to the annuitant’s 59th birthday, the maximum annual withdrawal amount will be zero until the beginning of the calendar year (January 1st) after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your maximum annual withdrawal amount that is not withdrawn during a calendar year for withdrawal in a future year. This means that if you do not take the maximum annual withdrawal amount during a calendar year, you cannot take more than the maximum annual withdrawal amount in the next clendar year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

All policy value must be allocated to a limited number of specified funds (See “Designated Choices” below).

Growth Period. The growth period begins on the rider date and ends at the earlier of the first withdrawal or the tenth rider anniversary.

Total Withdrawal Base. We use the total withdrawal base to calculate the maximum annual withdrawal amount. The total withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year).

The total withdrawal base during the growth period is equal to:

• the total withdrawal base on the rider date; plus

• premiums added during the growth period;

• accumulated at an annual effective rate of 5% (the accumulation stops at the end of the growth period).

The total withdrawal base after the growth period is equal to:

• the total withdrawal base at the end of the growth period; plus

• any premiums added after the growth period; less

• any adjustments for withdrawals (as described under “Total Withdrawal Base Adjustments” below) including the withdrawal, if any, which ended the growth period.

Please note:

• We determine the total withdrawal base solely to calculate the maximum annual withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal. It is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• The growth (or accumulation) at 5% applies only to the total withdrawal base, and the growth rate has no effect on the policy value.

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• Because the total withdrawal base is equal to the policy value on the rider date, the maximum annual withdrawal amount may decrease if the policy value decreases prior to the rider date.

• Upon the death of the annuitant, the 5 for Life^SM with Growth rider terminates and there are no more additional guaranteed withdrawals.

Total Withdrawal Base Adjustments. Gross partial withdrawals up to the maximum annual withdrawal amount in a rider year will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount in a rider year (“excess withdrawals”) will reduce the total withdrawal base by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value) possibly to zero. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—5 For Life^SM with Growth Rider” below for examples showing the effect of hypothetical withdrawals in more detail including an excess withdrawal that reduces the total withdrawal base by a pro rata amount. Excess withdrawals may eliminate the guarantee offered by this rider.

Minimum Remaining Withdrawal Amount. The minimum remaining withdrawal amount on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the minimum remaining withdrawal amount is equal to:

• the minimum remaining withdrawal amount on the rider date; plus

• subsequent premium payments; less

• adjustments for withdrawals (as described under “Minimum Remaining Withdrawal Amount Adjustments,” below).

Please note: The minimum remaining withdrawal amount does not accumulate, and the growth benefit has no effect on policy value.

Minimum Remaining Withdrawal Amount Adjustments. Gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount on a dollar-for-dollar basis. Gross partial withdrawals in excess of the maximum annual withdrawal amount in a rider year will reduce the minimum remaining withdrawal amount by the greater of the dollar amount of the excess withdrawal or a pro rata amount in a rider year (in proportion to the reduction in the policy value) possibly to zero. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—5 For Life^SM with Growth Rider” below for examples showing the effect of hypothetical withdrawals in more detail.

Additional Death Benefit available with the 5 for Life^SM with Growth Benefit. If you elect the 5 for Life^SM with Growth rider, you may also elect for us to potentially add an additional amount to the death benefit payable under the base policy, upon the death of the annuitant. The additional amount will be equal to the excess, if any, of the minimum remaining withdrawal amount over the base policy death benefit.

Please note:

• Excess withdrawals may eliminate the additional death benefit available with the 5 for Life^SM with Growth rider.

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• If an owner who is not the annuitant dies and the surviving spouse continues the policy, no additional amount is payable. If the policy is not continued, the surviving owner (who is also the sole beneficiary) may elect to receive lifetime income payments equal to the maximum annual withdrawal amount divided by the number of payments each year instead of receiving the cash value after the death of the annuitant.

• No additional death benefit is payable if the base policy death benefit (including any guaranteed minimum death benefit) exceeds the rider death benefit. The greater the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.

Rider Fee. A rider fee, 0.60% of the total withdrawal base on each rider anniversary if you do not elect the additional death benefit and 0.85% of the total withdrawal base on each rider anniversary if you do elect the additional death benefit, is charged annually prior to annuitization. We will also deduct the rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice. Generally, the rider fee is deducted regardless of your values (i.e., even if your policy value exceeds your total withdrawal base).

Designated Investment Choices. If you elect the 5 for Life^SM with Growth rider, you must allocate 100% of your policy value to one or more of the following “designated investment choices:”

TA AEGON Money Market—Service Class

TA Asset Allocation—Conservative—Service Class

TA Asset Allocation—Moderate—Service Class

TA Asset Allocation—Moderate Growth—Service Class

TA International Moderate Growth—Service Class

TA Multi-Managed Balanced—Service Class

Fixed Account

If you elect this rider, you may transfer amounts among the designated investment choices; however, you cannot transfer any amount to any other subaccount. After the third rider anniversary, you can terminate this rider. Terminating the rider will result in losing all your benefits under this rider. Starting the next business day, you may transfer to a non-designated choice.

Upgrades. You can upgrade the total withdrawal base to the policy value after the third rider anniversary by sending us written notice (we reserve the right to limit your upgrade election to a 30-day period following a rider anniversary after the 4th rider anniversary) as long as you are younger than the maximum rider issue age. At this time the minimum remaining withdrawal amount and maximum annual withdrawal amount will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date and its own rider fee percentage (which may be higher than your current rider fee percentage) and growth rate. The new rider date will be the date the Company receives all necessary information.

Annuitization. If you have reached your maximum annuitization date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments equal to your maximum annual withdrawal amount.

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Termination. The 5 for Life^SM with Growth rider will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the 5 for Life^SM with Growth rider (you may not terminate the rider before the third rider anniversary);

• the annuitant’s death;

• annuitization (however, if you have reached your mandatory annuitization date you may choose an annuitization option with guarantees you lifetime payments in an amount equal to your maximum annual withdrawal amount); or

• termination of your policy.

Please note: This feature terminates upon annuitization and there is a mandatory annuitization date.

GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS—5 FOR LIFE^SM WITH GROWTH RIDER

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Total withdrawal base (“TWB”)

2. Maximum annual withdrawal amount (“MAWA”)

3. Minimum remaining withdrawal amount (“MRWA”)

Total Withdrawal Base. Gross partial withdrawals up to the maximum annual withdrawal amount will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the total withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the total withdrawal base prior to the withdrawal of the excess amount.

Minimum Remaining Withdrawal Amount. Gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by the same amount (dollar-for-dollar). Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the minimum remaining withdrawal amount after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

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The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

EXAMPLE 1 (5 FOR LIFE^SM WITH GROWTH):

Assumptions:

TWB = $100,000

TWB in 10 years = $100,000 * (1 + .05) ^ 10 = $162,889

MRWA (optional benefit for additional cost) = $100,000

5% WD beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 total withdrawal base)

Please Note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the TWB growth will stop at the earlier of the 1st withdrawal or the 10th rider anniversary.

WD = $8,144

Excess withdrawal (“EWD”) = None

PV = $90,000 in 10 years

You = Owner and Annuitant (Age 60) on rider issue; age 70 at time withdrawals begin

Step One Is any portion of the withdrawal greater than the maximum annual withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.

Step Two.What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $8,144 (there is no excess to deduct)

2. $100,000-$8,144 = $91,856.

Result. In this example, because no portion of the withdrawal was in excess of $8,144, the total withdrawal base does not change and the minimum remaining withdrawal amount is $91,856.

EXAMPLE 2 (5 FOR LIFE^SM WITH GROWTH):

Assumptions:

TWB = $100,000

TWB in 10 years = $100,000 * (1 + .05) ^ 10 = $162,889

MRWA (optional benefit for additional cost) = $100,000

5% WD beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 total withdrawal base)

Please Note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the TWB growth will stop at the earlier of the 1st withdrawal or the 10th rider anniversary.

WD = $10,000

EWD = $1,856 ($10,000-$8,144)

PV = $90,000 in 10 years

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You = Owner and Annuitant (Age 60) on rider issue; age 70 at time withdrawals begin

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $10,000-$8,144 = $1,856 (the excess withdrawal amount)

Step Two. Calculate how much of the minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV—5% WD)) * (MRWA—5% WD)

2. ($1,856 / ($90,000-$8,144)) * ($100,000-$8,144) = $2,082.74

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $2,082.74 pro rata amount? $2,082.74 pro rata amount

Step Four. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $8,144 (MAWA) + $2,082.74 (pro rata excess) = $10,226.74

2. $100,000-$10,226.74= $89,773.26

Result. The minimum remaining withdrawal amount is $89,773.26.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $8,144, the total withdrawal base would remain at $162,889 and the maximum annual withdrawal amount would be $8,144. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 5% is based on).

New total withdrawal base:

Step One. The total withdrawal base is only reduced by amount of the excess or the pro rata amount if greater.

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV—5% WD)) * TWB before any adjustments

2. ( $1,856 / ($90,000-$8,144)) * $162,889 = $3,693.34

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $3,693.34 pro rata amount?

$3,693.34 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$162,889-$3,693.34 = $159,195.66

Result. The new total withdrawal base is $159,195.66

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New maximum annual withdrawal amount:

Because the total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.

Step One. What is the new maximum annual withdrawal amount?

$159,195.66 (the adjusted total withdrawal base) * 5% = $7,959.78

Result. Going forward, the maximum you can take out in a year is $7,959.78 without causing an excess withdrawal for the guarantee and further reduction of the total withdrawal base.

The 5 For Life^SM with Growth rider and additional options may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the 5 For Life^SM with Growth rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

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APPENDIX

INCOME SELECT^SM FOR LIFE RIDER—NO LONGER AVAILABLE FOR NEW SALES

You may elect to purchase the optional Income Select^SM for Life Rider which provides you with a guaranteed lifetime withdrawal benefit if you invest only in certain designated investment choices. This rider is available during the accumulation phase.

The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Income Select^SM for Life Rider for a qualified policy.

Income Select^SM for Life—Base Benefit

This benefit is intended to provide a level of cash withdrawals and payments from us, if necessary, regardless of the performance of the designated investment choices you select. If you elect this benefit you can receive (first as withdrawals from your policy value and, if necessary, as payments from us) up to the maximum annual withdrawal amount each calendar year, starting with the calendar year immediately following the annuitant’s 59th birthday and lasting until the annuitant’s (or the annuitant’s younger spouse if the joint life option is elected) death (unless your total withdrawal base is reduced to zero because of “excess withdrawals”; see Total Withdrawal Base Adjustments, and Additional Death Payment Option—Minimum Remaining Withdrawal Amount, below). All withdrawals before the annuitant (or the annuitant’s surviving spouse if the joint life option is elected) is age 59 are excess withdrawals: a penalty tax may be assessed on amounts withdrawn from the policy before the owner reaches age 59  ¹/2.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 56 years old. Further assume that you do not make any additional withdrawals or premium payments, but that after ten years your policy value has declined to $90,000 solely because of negative investment performance. You could still receive up to $5,000, which is the applicable income benefit percentage 5.0% multiplied by the total withdrawal base of $100,000, each rider year for the rest of your life (assuming that you take your first withdrawal when you are age 66, and that you do not withdraw more than the maximum annual withdrawal amount in any one year.)

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

Example continued. Assume the same facts as above, but you withdraw $7,000 when you are 66 years old. That excess withdrawal decreases your future maximum annual withdrawal amount to $4,882.35.

See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—Income Select^SM for Life Rider” below for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

• If you elect this rider, then you cannot also elect the 5% Annually Compounding Death Benefit option.

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• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider for you to take withdrawals each calendar year that are less than or equal to the maximum annual withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the maximum annual withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other had, the longer you wait to begin making withdrawals, the higher your withdrawal percentage may be and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the maximum annual withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds (see “Designated Investment Choices” below). You should consult with your registered representative to assist you in determining whether these investment restrictions are suited for your financial needs and risk tolerance.

• Any withdrawal in excess of the maximum annual withdrawal amount is an excess withdrawal.

• An excess withdrawal will impact the maximum annual withdrawal amount, total withdrawal base, and minimum remaining withdrawal amount on an equal to or greater than dollar-for-dollar basis.

• Any withdrawal will reduce your minimum remaining withdrawal amount.

• Upon the death of the annuitant, the Income Select^SM for Life Rider terminates and there are no more additional guaranteed withdrawals.

Like all withdrawals, withdrawals under this benefit also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustments; and;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Maximum Annual Withdrawal Amount. You can withdraw up to the maximum annual withdrawal amount in any calendar year (after age 59) without causing an excess withdrawal. See “Total Withdrawal Base Adjustments” and “Minimum Remaining Withdrawal Amount Adjustments” below.

The maximum annual withdrawal amount is zero if the annuitant or younger of annuitant and annuitant’s spouse if joint life option is elected) is not 59 years old on the date that the rider is elected (the “rider date”) and remains zero until the first day of the calendar year after the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the rider date, the maximum annual withdrawal amount in the calendar year the

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rider is elected is equal to the income benefit percentage of the total withdrawal base prorated based on the number of days from the rider date to the end of the calendar year. Thereafter, the maximum annual withdrawal amount for each subsequent calendar year is equal to the income benefit percentage (see below) of the total withdrawal base.

For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the maximum annual withdrawal amount for that calendar year (and each subsequent calendar year) is equal to the greater of:

• the maximum annual withdrawal amount described above; or

• an amount equal to a minimum required distribution amount calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (prior to the first rider anniversary we use the policy value on the rider date and thereafter we use the policy value on the date prescribed by the IRS) and (4) amounts from the current calendar year (no carry-over from past years). An amount not calculated as set forth above cannot be used as the maximum annual withdrawal amount.

You can receive up to the maximum annual withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us) under this rider regardless of your policy value; however, once your policy value reaches zero, you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

Please note:

• The maximum annual withdrawal amount described above is based on calendar years, not rider or policy years.

• If the rider is added prior to the annuitant’s 59th birthday, the maximum annual withdrawal amount will be zero until the beginning of the calendar year (January 1st) after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your maximum annual withdrawal amount that is not withdrawn during a calendar year for withdrawal in a future calendar year. This means that if you do not take the maximum annual withdrawal amount during a calendar year, you cannot take more than the maximum annual withdrawal amount in the next calendar year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

Income Benefit Percentage. We use the income benefit percentage to calculate the maximum annual withdrawal amount. The income benefit percentage is determined by the annuitant’s age at the time of the first withdrawal taken on or after the January 1st immediately following the annuitant’s 59th birthday (or if the joint life option is elected, the 59th birthday of the younger of the annuitant or the annuitant’s spouse). The income benefit percentage is as follows:

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Age at time of first withdrawal	Income Benefit Percentage
59-64	4.5%
65-69	5.0%
70-74	5.5%
75-79	6.0%
80-84	6.5%
85-89	7.0%
90-94	7.5%
³95	8.0%

Please note that once established at the time of the first withdrawal on or after the January 1st immediately following the 59th birthday of the annuitant (or if the joint life option is elected, of the younger of the annuitant or the annuitant’s spouse), the income benefit percentage will not increase even though the annuitant’s age increases.

Total Withdrawal Base. We use the total withdrawal base to calculate the maximum annual withdrawal amount. The total withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). After the rider date, the total withdrawal base is equal to the total withdrawal base on the rider date, plus subsequent premium payments, less subsequent total withdrawal base adjustments (described below).

Please note:

• We determine the total withdrawal base solely to calculate the maximum annual withdrawal amount. Your total withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the total withdrawal base is generally equal to the policy value on the rider date, the maximum annual withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

Total Withdrawal Base Adjustments. Gross partial withdrawals up to the maximum annual withdrawal amount will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount (“excess withdrawals”) will reduce the total withdrawal base by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in the policy value) possibly to zero. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—Income Select^SM for Life Rider” below for examples showing the effect of hypothetical withdrawals in more detail including an excess withdrawal that reduces the total withdrawal base by a pro rata amount. Excess withdrawals may eliminate any guarantee offered by this rider.

Designated Investment Choices. If you elect the Income Select^SM for Life Rider, you must allocate 100% of your policy value to one or more of the following “designated investment choices:”

TA AEGON Money Market—Service Class

TA Asset Allocation—Conservative—Service Class

TA Asset Allocation—Moderate—Service Class

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TA Asset Allocation—Moderate Growth—Service Class

TA International Moderate Growth—Service Class

TA Multi-Managed Balanced—Service Class

Fixed Account

Please note:

• If you elect this rider, you may transfer amounts among the designated choices; however, you cannot transfer any amount to any other subaccount. After the first anniversary of the rider date (the “rider anniversary”), you can terminate this rider. Terminating the rider will result in losing all your benefits under this rider. Starting the next business day, you may transfer to a non-designated choice.

• We can eliminate a designated investment choice at any time. If a designated investment choice is eliminated, then a policy owner will be given the option to reallocate the value in the eliminated designated investment choice to other designated investment choices.

Upgrades. You can upgrade the total withdrawal base to the policy value after the first rider anniversary by sending us written notice (we reserve the right to limit your upgrade election to a 30-day period following each rider anniversary) as long as you are younger than the maximum rider issue age. At this time the minimum remaining withdrawal amount and maximum annual withdrawal amount will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date and its own rider fee percentage (which may be higher than your current rider fee percentage) and growth rate, if any. The new rider date will be the date the Company receives all necessary information.

Income Select^SM for Life—Additional Options

You may elect the following options with the Income Select^SM for Life Rider (the options are not mutually exclusive):

• Growth

• Additional Death Payment

• Joint Life

There is an additional fee for each option. You can elect any combination of options.

1. Growth Option. If you elect the Income Select^SM for Life Rider, you can also elect an accumulating total withdrawal base during the growth period.

Growth Period. The growth period begins on the rider date and ends at the earlier of the first withdrawal or the tenth rider anniversary.

Total Withdrawal Base. The total withdrawal base during the growth period is equal to:

• the total withdrawal base on the rider date; plus

• premiums added during the growth period;

• accumulated at an annual effective rate of 5% (the accumulation stops at the end of the growth period).

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The total withdrawal base after the growth period is equal to:

• the total withdrawal base at the end of the growth period; plus

• any premiums added after the growth period; less

• any adjustments for withdrawals (as described under “Total Withdrawal Base Adjustments” above) including the withdrawal, if any, which ended the growth period.

Please note:

• Taking a withdrawal stops the growth. Therefore, please consider your need to make withdrawals when deciding whether to add the growth option.

• The minimum remaining withdrawal amount does not accumulate.

• This option does not provide for or guarantee any growth in the policy value.

2. Additional Death Payment Option. If you elect the Income Select^SM for Life Rider, you can also elect to add an additional amount to the death benefit payable under the base policy, upon the death of the annuitant (or if the joint life option is selected, the death of the annuitant’s spouse). The additional amount will be equal to the excess, if any, of the minimum remaining withdrawal amount over the base policy death benefit. Please note: The greater the death benefit payable under any guaranteed minimum death benefit option you have also elected, the more likely it is that an additional death benefit will not be payable under this rider option.

Minimum Remaining Withdrawal Amount. The minimum remaining withdrawal amount on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the minimum remaining withdrawal amount is equal to:

• the minimum remaining withdrawal amount on the rider date; plus

• subsequent premium payments; less

• adjustments for withdrawals (as described under “Minimum Remaining Withdrawal Amount Adjustments” below).

Minimum Remaining Withdrawal Amount Adjustments. Gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount on a dollar-for-dollar basis. Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value) possibly to zero. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—Income Select^SM for Life Rider” below for examples showing the effect of hypothetical withdrawals in more detail, including any excess withdrawal that results in pro rata adjustments.

Please note:

• The greater the difference between the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.

• Excess withdrawals may eliminate the additional death benefit available with the Income Select^SM for Life Rider.

• If an owner who is not the annuitant dies and the surviving spouse continues the policy, no additional amount is payable. If the policy is not continued, the surviving owner (who is also the sole beneficiary) may elect to receive lifetime income payments equal to the maximum annual withdrawal amount divided by the number of payments each year instead of receiving the policy’s cash value.

• No additional death benefit is payable if the base policy death benefit (including any guaranteed minimum death benefit, if applicable) exceeds the minimum remaining withdrawal amount.

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3. Joint Life Option. If you elect the Income Select^SM for Life Rider, you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (if the annuitant’s spouse continues the policy).

Please note:

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

4. Income Enhancement^SM Option. If you elect this rider, you can also elect to have your withdrawal percentage double if either the annuitant (or the annuitant’s spouse if the joint life option is elected) is confined, due to a medical necessity in a hospital or nursing facility due to physical or cognitive ailments. Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”) and confinement must meet the elimination period of 180 days within the last 365 days. The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

• You cannot elect the Income Enhancement^SM Option if the qualifying person or persons is/are already admitted to a hospital or already reside in a nursing facility.

• Confinement must be prescribed by a physician based on the individual’s inability to sustain themselves outside of a hospital or nursing facility due to physical or cognitive ailments.

• The increase to the withdrawal percentage stops when the qualifying person or persons is/are no longer confined as described above.

• The hospital and/or nursing facility must meet the criteria listed below to qualify for the benefit.

• You cannot elect the Income Enhancement^SM Option if you are confined in an assisted living facility or a residential care facility.

A Qualifying Hospital must meet the following criteria:

• It is operated pursuant to the laws of the jurisdiction in which it is located;

• It is operated primarily for the care and treatment of sick and injured persons on an inpatient basis;

• It provides 24-hour nursing service by or under the supervision of registered graduate professional nurses;

• It is supervised by a staff of one or more licensed physicians; and

• It has medical, surgical and diagnostic facilities or access to such facilities.

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A Qualifying Nursing Facility must meet the following criteria:

• It is operated pursuant to the laws and regulations of the state in which it is located as a nursing facility or Alzheimer’s disease facility;

• It provides care performed or supervised by a registered graduate nurse;

• It provides room and board accommodations; and

• Will provide 24-hour nursing services, 7 days a week by an on-site Registered Nurse and related services on a continuing inpatient basis.

• It has a planned program of policies and procedures developed with the advice of, and periodically reviewed by, at least one physician; and

• It maintains a clinical record of each patient.

A Qualifying Nursing Facility does not include:

• Assisted living facilities or residential care facilities;

• A place primarily for treatment of mental or nervous disorders, drug addiction or alcoholism;

• A home for the aged, a rest home, community living center or a place that provides domestic, resident, retirement or educational care;

• Personal care homes, personal care boarding homes, residential or domiciliary care homes;

• A rehabilitation hospital or basic care facilities;

• Adult foster care facilities, congregate care facilities, family and group living assisted living facilities; or

• Other facilities similar to those described above.

We will require confirmation of confinement in a qualifying hospital or a qualifying nursing facility while benefit payouts are being received. Confirmation of that confinement will be attained and approved by completing our “Income Enhancement^SM Election and Proof of Confinement Questionnaire” form. This form requires additional proof of confinement which may be a physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us which may include information from third party or company interviews and/or visits of the facility. If it is determined that the qualifying individual was not confined in an eligible facility as defined above and has received payments under the Income Enhancement^SM Option, those payments could be considered an excess withdrawal and have a negative effect on the rider values. If confinement ceases, you may re-qualify by satisfying another 180-day elimination period requirement.

Income Select^SM for Life Rider and Additional Option Fees. A rider fee, 0.40% (for single life) or 0.60% (for joint life) of the total withdrawal base on each rider anniversary is charged annually prior to annuitization for the base benefit. If you elect options with the Income Select^SM for Life Rider, then, before annuitization, you will be charged annually an additional rider fee for each option you elect, which fee is also a percentage of the total withdrawal base on each rider anniversary, and is in addition to the rider fee for the base benefit. The additional fees are as follows:

Option	Single Life Option	Joint Life Option
Growth	0.25%	0.50%
Additional Death Payment	0.25%	0.20%
Income EnhancementSM	0.15%	0.30%

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We will also deduct any rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Please note. Because the rider fee is a percentage of your total withdrawal base on each rider anniversary, the fee can be substantially more than 0.40% (single life) or 0.60% (joint life) of your policy value if that total withdrawal base is higher than your policy value.

Income Select^SM for Life Rider Issue Requirements

The Company will not issue the Income Select^SM for Life Rider unless:

• the annuitant is not yet age 81 (the limit may be lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is (1) a joint owner along with the annuitant or (2) the sole primary beneficiary (and there is no joint owner).

Termination

The Income Select^SM for Life Rider and any additional options will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the Income Select^SM for Life Rider (you may not terminate the rider before the first rider anniversary);

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your mandatory annuitization date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your maximum annual withdrawal amount);

• the date the policy to which this rider is attached is assigned or if the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value ot zero; or

• termination of your policy.

Please note: This feature terminates upon annuitization and there is a mandatory annuitization date. If you have reached your mandatory annuitization date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments equal to your maximum annual withdrawal amount.

GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS—INCOME SELECT^SM FOR LIFE RIDER

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Total withdrawal base (“TWB”)

2. Maximum annual withdrawal amount (“MAWA”)

3. Minimum remaining withdrawal amount (“MRWA”)

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Total Withdrawal Base. Gross partial withdrawals up to the maximum annual withdrawal amount will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the total withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the total withdrawal base prior to the withdrawal of the excess amount.

Minimum Remaining Withdrawal Amount. Gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by the same amount (dollar-for-dollar). Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the minimum remaining withdrawal amount after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

EXAMPLE 1 (INCOME SELECT^SM WITH GROWTH AND ADDITIONAL DEATH PAYMENT OPTIONS):

Assumptions:

You = Owner and Annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 55 on rider issue; age 65 at time withdrawals begin, which means Income Benefit Percentage is 5%.

TWB at rider issue = $100,000

TWB in 10 years (optional growth benefit for additional cost) = $100,000 * (1 + .05) ^ 10 = $162,889

MRWA (optional additional death benefit for additional cost) = $100,000

5% Withdrawal (“WD”) beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 total withdrawal base)

Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the TWB growth will stop at the earlier of the 1st withdrawal or the 10th rider anniversary.

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WD = $8,144

Excess withdrawal (“EWD”) = None

PV = $90,000 in 10 years

Step One. Is any portion of the withdrawal greater than the maximum annual withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $8,144 (there is no excess to deduct)

2. $100,000-$8,144 = $91,856.

Result. In this example, because no portion of the withdrawal was in excess of $8,144, the total withdrawal base does not change and the minimum remaining withdrawal amount is $91,856.

EXAMPLE 2 (INCOME SELECT^SM WITH GROWTH AND ADDITIONAL DEATH PAYMENT OPTIONS):

Assumptions:

You = Owner and Annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 55 on rider issue; age 65 at time withdrawals begin, which means Income Benefit Percentage is 5%.

TWB at rider issue = $100,000

TWB in 10 years (optional growth benefit for additional cost) = $100,000 * (1 + .05) ^ 10 = $162,889

MRWA (optional additional death benefit for additional cost) = $100,000

5% WD beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 total withdrawal base)

Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the TWB growth will stop at the earlier of the 1st withdrawal or the 10th rider anniversary.

WD = $10,000

EWD = $1,856 ($10,000-$8,144)

PV = $90,000 in 10 years

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $10,000-$8,144 = $1,856 (the excess withdrawal amount)

Step Two. Calculate how much of the minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV-5% WD)) * (MRWA-5% WD)

2. ($1,856 / ($90,000-$8,144)) * ($100,000-$8,144) = $2,082.74

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $2,082.74 pro rata amount?

$2,082.74 pro rata amount

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Step Four. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $8,144 (MAWA) + $2,082.74 (pro rata excess) = $10,226.74

2. $100,000—$10,226.74= $89,773.26

Result. The minimum remaining withdrawal amount is $89,773.26.

NOTE: For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $8,144, the total withdrawal base would remain at $162,889 and the maximum annual withdrawal amount would be $8,144. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 5% is based on).

New total withdrawal base:

Step One. The total withdrawal base is only reduced by amount of the excess or the pro rata amount if greater.

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV-5% WD)) * TWB before any adjustments

2 ($1,856 / ($90,000-$8,144)) * $162,889 = $3,693.34

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $3,693.34 pro rata amount?

$3,693.34 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$162,889-$3,693.34 = $159,195.66

Result. The new total withdrawal base is $159,195.66

New maximum annual withdrawal amount:

Because the total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.

Step One. What is the new maximum annual withdrawal amount?

$159,195.66 (the adjusted total withdrawal base) * 5% = $7,959.78

Result. Going forward, the maximum you can take out in a year is $7,959.78 without causing an excess withdrawal for the guarantee and further reduction of the total withdrawal base.

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EXAMPLE 3 (INCOME SELECT^SM WITH GROWTH AND ADDITIONAL DEATH PAYMENT OPTIONS):

Assumptions:

You = Owner and Annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 55 on rider issue; age 65 at time withdrawals begin, which means Income Benefit Percentage is 5%.

TWB at rider issue = $100,000

TWB in 10 years (optional growth benefit for additional cost) = $100,000 * (1 + .05) ^ 10 = $162,889 MRWA (optional additional death benefit for additional cost) = $100,000

Annuitant qualifies for Income Enhancement^SM benefit beginning 10 years from rider date, which means that the Income Benefit Percentage would then be 10%.

5% WD beginning 10 years from the rider date would be $16,288.90 (10% of the then-current $162,889 TWB)

Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the TWB growth will stop at the earlier of the 1st withdrawal or the 10th rider anniversary.

WD = $16,288.90

Excess withdrawal (“EWD”) = None

PV = $90,000 in 10 years

Step One. Is any portion of the withdrawal greater than the maximum annual withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $16,288.90 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $16,288.90 (there is no excess to deduct)

2. $100,000-$16,288.90 = $83,711.10.

Result. In this example, because no portion of the withdrawal was in excess of $16,288.90, the total withdrawal base does not change and the minimum remaining withdrawal amount is $83,711.10.

The Income Select^SM for Life Rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Income Select^SM for Life Rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

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APPENDIX

RETIREMENT INCOME CHOICE^SM RIDER - NO LONGER AVAILABLE FOR NEW SALES

You may elect to purchase the optional Retirement Income Choice^SM rider which provides you with a guaranteed lifetime withdrawal benefit if you invest only in certain designated investment choices. This rider is available during the accumulation phase. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Retirement Income Choice^SM rider for a qualified policy.

Retirement Income Choice^SM – Base Benefit

This benefit is intended to provide a level of cash withdrawals and payments from us, if necessary, regardless of the performance of the designated investment choices you select. Under this benefit, you can receive (first as withdrawals from your policy value and, if necessary, as payments from us) up to the rider withdrawal amount each rider year, starting with the rider year immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday and lasting until the annuitant’s death (unless your withdrawal base is reduced to zero because of “excess withdrawals”; see Withdrawal Base Adjustments, and Rider Death Benefit Adjustments, below). A rider year begins on the rider date (the date the rider becomes effective) and on each anniversary thereafter. All withdrawals before the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is 59 are excess withdrawals; a penalty tax may be assessed on amounts withdrawn from the policy before the owner reaches age 59 ¹/2.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 56 years old. Further assume that you do not make any additional withdrawals or premium payments, no automatic step-ups occurred, but that after ten years your policy value has declined to $90,000 solely because of negative investment performance. With an annual growth rate percentage of 5.0%, after 10 years the withdrawal base is equal to $162,889. You could withdraw up to $8,144 which is the applicable withdrawal percentage of 5.0% multiplied by the withdrawal base of $162,889, each rider year for the rest of your life (assuming that you take your first withdrawal when you are age 66, that you do not withdraw more than the rider withdrawal amount in any one year and there are no future automatic step-ups.)

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

Example continued. Assume the same facts as above, but you withdraw $10,000 when you are 66 years old. That excess withdrawal decreases your future rider withdrawal amount to $7,960.

See the “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders-Retirement Income Choice^SM” below for examples showing the effect of hypothetical withdrawals in more detail.

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Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider for you to take withdrawals each calendar year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other hand, the longer you wait to begin making withdrawals, the higher your withdrawal percentage may be and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds (see “Designated Investment Choices” below). You should consult with your registered representative to assist you in determining whether these investment restrictions are suited for your financial needs and risk tolerance.

• Cumulative withdrawals in any rider year that are in excess of the rider withdrawal amount are excess withdrawals.

• An excess withdrawal may impact the rider withdrawal amount, withdrawal base, and rider death benefit (if applicable) on a greater than dollar-for-dollar basis.

• Any withdrawal will reduce your rider death benefit (if applicable).

• Upon the death of the annuitant, the Retirement Income Choice^SM rider terminates and there are no more additional guaranteed withdrawals.

Like all withdrawals, withdrawals under this benefit also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to surrender charges and excess interest adjustments;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount (after age 59) in any rider year without causing an excess withdrawal. See “Withdrawal Base Adjustments” and “Rider Death Benefit Adjustments”, below. The rider withdrawal amount may be referred to as “minimum remaining withdrawal amount” in your policy statement and other documents.

The rider withdrawal amount is zero if the annuitant is not 59 years old on the rider date and remains zero until the first day of the rider year after the annuitant’s 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the date that the rider is elected (“rider date”), then the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage (see below).

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For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to a minimum required distribution amount (for the tax year of that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (including the present value of any additional benefits provided under the policy to the extent required to be taken into account under IRS guidance) and (4) amounts from the current calendar year (no carry-over from past years). Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

Once your policy value reaches zero, you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency of payments cannot be changed.

Please note:

• If the rider is added prior to the annuitant’s 59th birthday, the rider withdrawal amount will be zero until the beginning of the rider year after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the rider withdrawal amount during a rider year, you cannot take more than the rider withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated to a limited number of specified funds (See “Designated Investment Choices” below).

Withdrawal Percentage. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday. The withdrawal percentage is as follows:

Age at time of first	Withdrawal
withdrawal	Percentage
0-58	0.0%
59-69	5.0%
70-79	6.0%
³80	7.0%

Please note, once established, the withdrawal percentage will not increase even though the annuitant’s age increases.

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Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments. The withdrawal base may be referred to as “total withdrawal base” in your policy statement and other documents.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greatest of:

• Current withdrawal base;

• The withdrawal base immediately before the rider anniversary, increased by the growth credit (see “Growth” below);

• The policy value on any monthiversary, including the current rider anniversary (see “Automatic Step-Up” below).

Growth. On each of the first ten rider anniversaries, we will add an annual growth credit to your withdrawal base if no withdrawal occurred during the preceding rider year. The annual growth credit is equal to 5% of the withdrawal base immediately before the rider anniversary (i.e., withdrawal base x 0.05).

Please note: Because a withdrawal will eliminate a potential growth credit, you should consider your need or possible need to take withdrawals within 10 rider years in deciding whether to purchase the rider.

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary during the preceding rider year if no excess withdrawal occurred or (2) the policy value on the rider anniversary, if the withdrawal base after any annual growth credit is applied, is less than that amount.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up.

Automatic Step-Up Opt Out. Each time an automatic step-up will result in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in a form satisfactory to us, at our administrative and service office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

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Withdrawal Base Adjustments. Cumulative gross partial withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Cumulative gross partial withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in the policy value), possibly to zero. Withdrawal base adjustments occur immediately following excess withdrawals. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders-Retirement Income Choice^SM” below for examples showing the effect of hypothetical withdrawals in more detail including an excess withdrawal that reduces the withdrawal base by a pro rata amount. Excess withdrawals may eliminate any guarantee offered by this rider.

Please Note: We do not monitor for, or notify you of, excess withdrawals. If you take regular or scheduled withdrawals, please pay particular attention to any excess withdrawal because your otherwise regular or scheduled non-excess withdrawals may thereafter all be excess withdrawals that reduce or eliminate your benefit on an accelerated basis.

Designated Investment Choices. If you elect this rider, you must allocate 100% of your policy value to one or more of the following “designated investment choices:”

AllianceBernstein Balanced Wealth Strategy Portfolio—Class B

Franklin Templeton VIP Founding Funds Allocation Fund—Class 4

TA AEGON Money Market—Service Class

TA AEGON Tactical Vanguard ETF—Balanced—Service Class

TA AEGON Tactical Vanguard ETF—Conservative—Service Class

TA AEGON Tactical Vanguard ETF—Growth—Service Class

TA AEGON U.S. Government Securities—Service Class

TA AllianceBernstein Dynamic Allocation—Service Class

TA Asset Allocation—Conservative—Service Class

TA Asset Allocation—Moderate—Service Class

TA Asset Allocation—Moderate Growth—Service Class

TA Efficient Markets—Service Class

TA International Moderate Growth—Service Class

TA JPMorgan Tactical Allocation—Service Class

TA Multi-Managed Balanced—Service Class

TA PIMCO Total Return—Service Class

TA Vanguard ETF Index—Balanced—Service Class

TA Vanguard ETF Index—Conservative—Service Class

TA Vanguard ETF Index—Growth—Service Class

Fixed Account

If you elect this rider, you may transfer amounts among the designated investment choices (subject to the terms and conditions stated in the prospectus); however, you cannot transfer any amount (or allocate premium payments) to any other subaccount. After the fifth rider anniversary (and each successive fifth rider anniversary), you can terminate this rider. Starting the next business day, you may transfer to a non-designated investment choice. Terminating the rider will result in losing all your benefits under the rider.

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Please note:

• The earliest you can transfer to a non-designated investment choice is the first business day after the fifth rider anniversary. You will be required to terminate the rider first.

• We can eliminate a designated investment choice at any time. If a designated investment choice is eliminated, then a policy owner will be given the option to reallocate the value in the eliminated designated investment choice to other designated investment choices.

Manual Upgrades. You can upgrade the withdrawal base to the policy value during the 30-day period following each successive fifth rider anniversary by sending us written notice in a form acceptable to us, as long as the rider issue requirements for a new rider are met. At this time the rider withdrawal amount and, if applicable, the rider death benefit will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date and its own rider fee percentage and growth rate (which may be higher or lower than your current rider fee percentage and growth rate). The new rider date will be the date the Company receives all necessary information in good order. You cannot elect a manual upgrade if the annuitant is 86 or older.

Retirement Income Choice^SM – Additional Options

You may elect the following options with the Retirement Income Choice^SM rider (the options are not mutually exclusive):

• Death Benefit;

• Joint Life; and

• Income Enhancement^SM.

There is an additional fee for each option.

1. Additional Death Payment Option. If you elect this rider, you can also elect to add an additional amount to the death benefit payable under the base policy, upon the death of the annuitant (or if the joint life option is selected, the annuitant’s spouse). The additional amount will be equal to the excess, if any, of the rider death benefit over the greater of any optional guaranteed minimum death benefit or the base policy death benefit. See “Section 8. Death Benefit.” The additional amount can be zero.

Rider Death Benefit. The rider death benefit on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the rider death benefit is equal to:

• the rider death benefit on the rider date; plus

• subsequent premium payments; less

• adjustments for withdrawals (as described under “Rider Death Benefit Adjustments,” below).

Rider Death Benefit Adjustments. Gross partial withdrawals up to the rider withdrawal amount in a rider year will reduce the rider death benefit on a dollar-for-dollar basis. Gross partial withdrawals in excess of the rider withdrawal amount in a rider year will reduce the rider death benefit by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value), and possibly to zero. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders-Retirement Income Choice^SM” below for examples showing the effect of hypothetical withdrawals in more detail, including any excess withdrawal that results in pro rata adjustments. Rider death benefit adjustments occur immediately following all withdrawals.

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Please note:

• No additional death benefit is payable if the base policy death benefit (including the guaranteed minimum death benefit) exceeds the rider death benefit. The greater the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.

• Excess withdrawals may eliminate the additional death benefit available with the Retirement Income Choice^SM rider. You will continue to pay the fee for this option, even if the additional death benefit available under the rider is $0.

• Manual upgrades to the withdrawal base will result in a recalculation of the rider death benefit. However, automatic step-ups will not reset the rider death benefit.

• If an owner who is not the annuitant dies and the surviving spouse continues the policy, then no additional amount is payable. If the policy is not continued, then the surviving owner (who is also the sole beneficiary) may elect to receive lifetime income payments equal to the rider withdrawal amount divided by the number of payments each year instead of receiving the policy’s cash value.

The additional death benefit payment option may be referred to as “minimum remaining withdrawal amount” on your policy statement and other documents.

2. Joint Life Option. If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy),

Please note:

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

• The rider death benefit is not payable until the death of the surviving spouse, if you elect this option.

• You cannot elect a manual upgrade if the annuitant or annuitant’s spouse is 86 or older (lower if required by state law).

3. Income Enhancement^SM Option. If you elect this rider, you can also elect to have your withdrawal percentage double if either the annuitant (or the annuitant’s spouse if the joint life option is elected) is confined, because of a medical necessity, in a hospital or nursing facility and has been so confined for the elimination period (180 days within the last 365 days). Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”). The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

• You cannot elect the Income Enhancement^SM Option if the qualifying person or persons is/are already confined in a hospital or nursing facility.

• The increase to the withdrawal percentage stops when the qualifying person or persons is/are no longer confined as described above.

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We will require confirmation of confinement while benefits are being received. Confirmation of confinement may be a physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us. If confinement ceases, you may re-qualify by satisfying a 180-day elimination period requirement.

Retirement Income Choice^SM Rider and Additional Option Fees. A rider fee, 0.60% for single life or 0.90% for joint life of the withdrawal base on each rider anniversary, is charged annually prior to annuitization for the base benefit.

If you elect options with the Retirement Income Choice^SM rider, you will be charged a fee for each option you elect, that is in addition to the rider fee for the base benefit. Each additional fee is charged annually prior to annuitization and is a percentage of the withdrawal base on each rider anniversary. The additional fees are as follows:

Option	Single Life			Joint Life
Death Benefit		0.25	%		0.20	%
Income EnhancementSM		0.15	%		0.30	%

We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider. The rider fees are deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Please Note: Because the rider fee is a percentage of your withdrawal base on each rider anniversary, the fee can be substantially more than 0.60% (single life) or 0.90% (joint life) of your policy value if that withdrawal base is higher than your policy value.

Retirement Income Choice^SM Rider Issue Requirements

The Company will not issue the Retirement Income Choice^SM rider unless:

• the annuitant is not yet age 86 (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is also not yet 86 (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Retirement Income Choice^SM rider and any additional options will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the Retirement Income Choice^SM rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

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• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount); or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments equal to your rider withdrawal amount.

GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS -RETIREMENT INCOME CHOICE^SM RIDER

The following examples show the effect of withdrawals on the benefits under the Retirement Income Choice^SM Rider.

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”)

2. Rider Withdrawal Amount (“RWA”)

3. Rider Death Benefit (“RDB”)

Withdrawal Base. Gross partial withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the withdrawal base prior to the withdrawal of the excess amount.

Rider Death Benefit. Gross partial withdrawals in a rider year up to the rider withdrawal amount will reduce the rider death benefit by the amount withdrawn (dollar-for-dollar). Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the rider death benefit by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the rider death benefit after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

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The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

EXAMPLE 1 (BASE):

Assumptions:

WB = $100,000

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

Gross partial withdrawal (“GPWD”) = $5,000

Excess withdrawal (“EWD”) = None

Policy Value (“PV”) = $100,000

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%.

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base does not change.

EXAMPLE 2 (EXCESS WITHDRAWAL):

Assumptions:

WB = $100,000

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

GPWD = $7,000

EWD = $2,000 ($7,000—$5,000)

PV = $90,000

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,000, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

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New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV—5% withdrawal)) * WB before any adjustments

2. ($2,000 / ($90,000—$5,000)) * $100,000 = $2,352.94

Step Three. Which is larger, the actual $2,000 excess withdrawal or the $2,352.94 pro rata amount? $2,352.94 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based? $100,000 -$2,352.94 = $97,647.06 Result. The new withdrawal base is $97,647.06

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.

Question: What is the new rider withdrawal amount?

$97,647.06 (the adjusted withdrawal base) * 5% = $4,882.35

Result. Going forward, the maximum you can take out in a year is $4,882.35 without causing excess withdrawal for the guarantee and further reduction of the withdrawal base (assuming there are no future automatic step-ups).

EXAMPLE 3 (BASE DEMONSTRATING GROWTH):

Assumptions:

WB = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 10 = $162,889 RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken and the growth stops on the 10th rider anniversary.

GPWD = $8,144

EWD = None

PV = $90,000 in 10 years

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 56 on rider issue; age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%.

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $8,144, the withdrawal base does not change.

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EXAMPLE 4 (BASE DEMONSTRATING WB GROWTH WITH ADDITIONAL DEATH PAYMENT OPTION):

Assumptions:

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 56 on rider issue; age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%. WB at rider issue = $100,000 Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 10 = $162,889 RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken, and the annual growth credit stops on the 10th rider anniversary.

GPWD = $8,144

EWD = None

PV = $90,000 in 10 years

Step One. Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.

Step Two. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $8,144 (there is no excess to deduct)

2. $100,000—$8,144 = $91,856.

Result. In this example, because no portion of the withdrawal was in excess of $8,144, the total withdrawal base does not change and the rider death benefit reduces to $91,856.

EXAMPLE 5 (BASE WITH WB GROWTH WITH ADDITIONAL DEATH PAYMENT OPTION ILLUSTRATING EXCESS WITHDRAWAL):

Assumptions:

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 56 on rider issue; age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%. WB at rider issue = $100,000 Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 10 = $162,889 RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

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Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken, and the annual growth credit stops on the 10th rider anniversary.

GPWD = $10,000

EWD = $1,856 ($10,000—$8,144)

PV = $90,000 in 10 years

Step One. Is any portion of the total withdrawal greater than the rider withdrawal amount?

Yes. $10,000—$8,144 = $1,856 (the excess withdrawal amount)

Step Two. Calculate how much of the rider death benefit is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV—5% withdrawal)) * (RDB—5% withdrawal)

2. ($1,856 / ($90,000—$8,144)) * ($100,000—$8,144) = $2,082.74

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $2,082.74 pro rata amount?

$2,082.74 pro rata amount

Step Four. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $8,144 (RWA) + $2,082.74 (pro rata excess) = $10,226.74

2. $100,000—$10,226.74= $89,773.26

Result. The rider benefit is $89,773.26.

NOTE. Because there was an excess withdrawal amount in this example, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $8,144, the withdrawal base would remain at $162,889 and the rider withdrawal amount would be $8,144. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

New withdrawal base:

Step One. The total withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV—5% withdrawal)) * WB before any adjustments

2. ($1,856 / ($90,000—$8,144)) * $162,889 = $3,693.34

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $3,693.34 pro rata amount?

$3,693.34 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$162,889—$3,693.34 = $159,195.66

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Result. The new withdrawal base is $159,195.66

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new rider withdrawal amount?

$159,195.66 (the adjusted withdrawal base) * 5% = $7,959.78

Result. Going forward, the maximum you can take out in a year is $7,959.78 without causing an excess withdrawal for the guarantee and further reduction of the withdrawal base.

The Retirement Income Choice^SM rider and additional options may vary for certain policies and may not be available for all policies. This disclosure explains the material features of the Retirement Income Choice^SM rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

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APPENDIX

RETIREMENT INCOME CHOICE^SM WITH DOUBLE WITHDRAWAL BASE BENEFIT

RIDER—NO LONGER AVAILABLE FOR NEW SALES

You may elect to purchase the optional Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit; and (2) an opportunity to increase the withdrawal base if no withdrawals have been made before the 10^th rider anniversary or before the anniversary following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) attaining age 67, whichever is later. This rider is available during the accumulation phase, and requires that you invest only in certain investment choices. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider for a qualified policy.

Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider – Base Benefit

This benefit is intended to provide a level of cash withdrawals and payments from us, if necessary, regardless of the performance of the designated investment choices you select. Under this benefit, you can receive (first as withdrawals from your policy value and, if necessary, as payments from us) up to the rider withdrawal amount each rider year, starting with the rider year immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday and lasting until the annuitant’s death (unless your withdrawal base is reduced to zero because of “excess withdrawals”; see Withdrawal Base Adjustments, and Rider Death Benefit Adjustments, below). A rider year begins on the rider date (the date the rider becomes effective) and on each anniversary thereafter. All withdrawals before the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is 59 are excess withdrawals; a penalty tax may be assessed on amounts withdrawn from the policy before the owner reaches age 59 ¹/2.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 56 years old. Further assume that you do not make any withdrawals or additional premium payments, no automatic step-ups occurred, but that after five years your policy value has declined to $90,000 solely because of negative investment performance. With an annual growth rate percentage of 5.0%, after 5 years the withdrawal base is equal to $127,628 ($100,000 x 1.05⁵). You could receive up to $6,381 which is the applicable withdrawal percentage of 5.0% for the single life option multiplied by the withdrawal base of $127,628, each rider year for the rest of your life (assuming that you take your first withdrawal when you are age 61, that you do not withdraw more than the rider withdrawal amount in any one year and there are no future automatic step-ups.)

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

Example continued. Assume the same facts as above, but you withdraw $10,000 when you are 61 years old. That excess withdrawal decreases your future rider withdrawal amount to $6,105.

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See the “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—Retirement Income Choice^SM with Double Withdrawal Base Benefit Riders” below for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider for you to take withdrawals each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other hand, the longer you wait to begin making withdrawals, the higher your withdrawal percentage may be and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds (see “Designated Investment Choices”). You should consult with your registered representative to assist you in determining whether these investment restrictions are suited for your financial needs and risk tolerance.

• Cumulative withdrawals in any rider year that are in excess of the rider withdrawal amount are excess withdrawals.

• An excess withdrawal may impact the rider withdrawal amount, withdrawal base, and rider death benefit (if applicable) on a greater than dollar-for-dollar basis.

• Any withdrawal will reduce your rider death benefit (if applicable).

• Upon the death of the annuitant, the Retirement Income Choice^SM with Double Withdrawal Base Benefit rider terminates and there are no more additional guaranteed withdrawals.

Like all withdrawals, withdrawals under this benefit also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to surrender charges and excess interest adjustments;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount (after age 59) in any rider year without causing an excess withdrawal. See “Withdrawal Base Adjustments” and “Rider Death Benefit Adjustments”, below.

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The rider withdrawal amount is zero if the annuitant is not 59 years old on the rider date and remains zero until the first day of the rider year after the annuitant’s 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the date that the rider is elected (“rider date”), then the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage (see below).

For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to a minimum required distribution amount (for the tax year on that rider anniversary date)calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (including the present value of any additional benefits provided under the policy to the extent required to be taken into account under IRS guidance) and (4) amounts from the current calendar year (no carry-over from past years).

Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

Once your policy value reaches zero, you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency of payments cannot be changed.

Please note:

• If the rider is added prior to the annuitant’s 59th birthday, the rider withdrawal amount will be zero until the beginning of the rider year after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the entire rider withdrawal amount during a rider year, you cannot take more than the rider withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated to a limited number of specified funds (See “Designated Investment Choices” below).

Withdrawal Percentage. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday. The withdrawal percentage is as follows:

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Age at time of first withdrawal	Withdrawal Percentage— Single Life Option			Withdrawal Percentage— Joint Life Option
0-58		0.0	%		0.0	%
59-69		5.0	%		4.5	%
70-79		6.0	%		5.5	%
³80		7.0	%		6.5	%

Please note, once established, the withdrawal percentage will not increase even though the annuitant’s age increases.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greatest of:

• Current withdrawal base;

• The withdrawal base immediately before the rider anniversary, increased by the growth credit (see “Growth” below);

• The policy value on any monthiversary, including the current rider anniversary (see “Automatic Step-Up” below).

Growth. On each of the first ten rider anniversaries, we will add an annual growth credit to your withdrawal base if no withdrawal occurred during the preceding rider year. The annual growth credit is equal to 5% of the withdrawal base immediately before the rider anniversary (i.e., withdrawal base x 0.05).

Please note: Because a withdrawal will eliminate a potential growth credit, you should consider your need or possible need to take withdrawals within 10 rider years in deciding whether to purchase the rider.

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary during the preceding rider year if no excess withdrawal occurred or (2) the policy value on the rider anniversary, if the withdrawal base after any annual growth credit is applied, is less than that amount.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum rider fee percentage in the fee table.

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Automatic Step-Up Opt Out. Each time an automatic step-up will result in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in a form satisfactory to us, at our administrative and service office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Double Withdrawal Base Benefit. If no withdrawals have been made 1) before the 10^th rider anniversary, or 2) before the rider anniversary following the annuitant (or annuitant’s spouse if younger and the Joint Life is elected) attaining age 67, whichever is later, then the withdrawal base on that rider anniversary will be the greater of 1) the withdrawal base as calculated above or 2) the result of the withdrawal base on the rider date plus any premiums received within 90 days of the rider date, multiplied by 2. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—Retirement Income Choice^SM with Double Withdrawal Base Benefit Riders—Example 5 (no excess withdrawals) and Example 6 (excess withdrawals)” below.

Withdrawal Base Adjustments. Cumulative gross partial withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Cumulative gross partial withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in the policy value), possibly to zero. Withdrawal base adjustments occur immediately following excess withdrawals. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—Retirement Income Choice^SM with Double Withdrawal Base Benefit Riders” below for examples showing the effect of hypothetical withdrawals in more detail including an excess withdrawal that reduces the withdrawal base by a pro rata amount. Excess withdrawals may eliminate any guarantee offered by this rider.

Please Note: We do monitor for, or notify you of, excess withdrawals. If you take regular or scheduled withdrawals, please pay particular attention to any excess withdrawal because your otherwise regular or scheduled non-excess withdrawals may thereafter all be excess withdrawals that reduce or eliminate your benefit on an accelerated basis.

Designated Investment Choices. If you elect this rider, you must allocate 100% of your policy value to one or more of the following “designated investment choices:”

AllianceBernstein Balanced Wealth Strategy Portfolio—Class B

Franklin Templeton VIP Founding Funds Allocation Fund—Class 4

TA AEGON Money Market—Service Class

TA AEGON Tactical Vanguard ETF—Balanced—Service Class

TA AEGON Tactical Vanguard ETF—Conservative—Service Class

TA AEGON Tactical Vanguard ETF—Growth—Service Class

TA AEGON U.S. Government Securities—Service Class

TA AllianceBernstein Dynamic Allocation—Service Class

TA Asset Allocation—Conservative—Service Class

TA Asset Allocation—Moderate—Service Class

TA Asset Allocation—Moderate Growth—Service Class

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TA Efficient Markets—Service Class

TA International Moderate Growth—Service Class

TA JPMorgan Tactical Allocation—Service Class

TA Multi-Managed Balanced—Service Class

TA PIMCO Total Return—Service Class

TA Vanguard ETF Index—Balanced—Service Class

TA Vanguard ETF Index—Conservative—Service Class

TA Vanguard ETF Index—Growth—Service Class

Fixed Account

If you elect this rider, you may transfer amounts among the designated investment choices (subject to the terms and conditions stated in the prospectus); however, you cannot transfer any amount (or allocate premium payments) to any other subaccount. After the fifth rider anniversary (and each successive fifth rider anniversary), you can terminate this rider. Starting the next business day, you may transfer to a non-designated investment choice. Terminating the rider will result in losing all your benefits under the rider.

Please note:

• The earliest you can transfer to a non-designated investment choice is the first business day after the fifth rider anniversary. You will be required to terminate the rider first.

• We can eliminate a designated investment choice at any time. If a designated investment choice is eliminated, then a policy owner will be given the option to reallocate the value in the eliminated designated investment choice to other designated investment choices.

Manual Upgrades. You can upgrade the withdrawal base to the policy value during the 30-day period following each successive fifth rider anniversary by sending us written notice in a form acceptable to us, as long as the rider issue requirements for a new rider are met. At this time the rider withdrawal amount and, if applicable, the rider death benefit will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date, its own rider fee percentage, and growth rate (which may be higher or lower than your current rider fee percentage and growth rate); and any options you elect to change or add to the rider base benefit. The new rider date will be the date the Company receives all necessary information in good order. You cannot elect a manual upgrade if the annuitant (or the annuitant’s spouse if younger and the joint option is elected) is 86 or older.

Retirement Income Choice^SM with Double Withdrawal Base Benefit – Additional Options

You may elect the following options with this rider (the options are not mutually exclusive):

• Death Benefit;

• Joint Life; and

• Income Enhancement^SM.

There is an additional fee if you elect the Death Benefit and/or the Income Enhancement^SM Benefit option(s) under the rider. If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower. Furthermore, if you elect the Joint Life option in combination with the Death Benefit and/or the Income Enhancement^SM Benefit option(s), then the fee for each of those additional options will be different than under the Single Life option. See “Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider and Additional Option Fees”.

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1. Death Benefit. If you elect this rider, you can also elect to add an additional amount to the death benefit payable under the base policy, upon the death of the annuitant (or if the joint life option is selected, the annuitant’s spouse). The additional amount will be equal to the excess, if any, of the rider death benefit over the greater of any optional guaranteed minimum death benefit or the base policy death benefit.The additional amount can be zero. See “Section 8. Death Benefit.”

Rider Death Benefit. The rider death benefit on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the rider death benefit is equal to:

• the rider death benefit on the rider date; plus

• subsequent premium payments; less

• adjustments for withdrawals (as described under “Rider Death Benefit Adjustments,” below).

Rider Death Benefit Adjustments. Gross partial withdrawals up to the rider withdrawal amount in a rider year will reduce the rider death benefit on a dollar-for-dollar basis. Gross partial withdrawals in excess of the rider withdrawal amount in a rider year will reduce the rider death benefit by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value), and possibly to zero. See “Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders—Retirement Income Choice^SM with Double Withdrawal Base Benefit Riders” below for examples showing the effect of hypothetical withdrawals in more detail, including any excess withdrawal that results in pro rata adjustments. Rider death benefit adjustments occur immediately following all withdrawals.

Please note:

• No additional death benefit is payable if the base policy death benefit (including the guaranteed minimum death benefit) exceeds the rider death benefit. The greater the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.

• Excess withdrawals may eliminate the additional death benefit available with this rider. You will continue to pay the fee for this option, even if the additional death benefit available under the rider is $0.

• Manual upgrades to the withdrawal base will result in a recalculation of the rider death benefit. However, automatic step-ups will not reset the rider death benefit.

• If an owner who is not the annuitant dies and the surviving spouse continues the policy, then no additional amount is payable. If the policy is not continued, then the surviving owner (who is also the sole beneficiary) may elect to receive lifetime income payments equal to the rider withdrawal amount divided by the number of payments each year instead of receiving the policy’s cash value.

The additional death benefit payment option may be referred to as “minimum remaining withdrawal amount” on your policy statement and other documents.

2. Joint Life Benefit. If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy),

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Please note:

• The withdrawal percentage for each “age at the time of first withdrawal” is lower if you elect this option.

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

• The rider death benefit is not payable until the death of the surviving spouse, if you elect this option.

• You cannot elect a manual upgrade if the annuitant or annuitant’s spouse is 86 or older (lower if required by state law).

3. Income Enhancement^SM Benefit. If you elect this rider, you can also elect to have your withdrawal percentage double if either the annuitant (or the annuitant’s spouse if the joint life option is elected) is confined, because of a medical necessity, in a hospital or nursing facility and has been so confined for the elimination period (180 days within the last 365 days). Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”). The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

• You cannot elect the Income Enhancement^SM Option if the qualifying person or persons is/are already confined in a hospital or nursing facility.

• The increase to the withdrawal percentage stops when the qualifying person or persons is/are no longer confined as described above.

We will require confirmation of confinement while benefits are being received. Confirmation of confinement may be a physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us. If confinement ceases, you may re-qualify by satisfying a 180-day elimination period requirement.

Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider and Additional Option Fees. A rider fee, 0.90% of the withdrawal base on each rider anniversary, is charged annually prior to annuitization for the base benefit.

If you elect options with this rider, then you will be charged a fee for each option you elect that is in addition to the rider fee for the base benefit. Each additional fee is charged annually prior to annuitization and is a percentage of the withdrawal base on each rider anniversary. The additional fees are as follows:

Option	Single Life			Joint Life
Death Benefit		0.25	%		0.20	%
Income EnhancementSM		0.15	%		0.30	%

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We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider. The rider fees are deducted from each investment choice in proportion to the amount of policy value in that investment choice.

Please Note: Because the rider fee is a percentage of your withdrawal base on each rider anniversary, the fee can be substantially more than 0.90% of your policy value if that withdrawal base is higher than your policy value.

Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider Issue Requirements

The Company will not issue the Retirement Income Choice^SM with Double Withdrawal Base Benefit rider unless:

• the annuitant is not yet age 86 (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is also not yet 86 (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Retirement Income Choice^SM with Double Withdrawal Base Benefit rider and any additional options will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount); or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS -RETIREMENT INCOME CHOICE^SM WITH DOUBLE WITHDRAWAL BASE BENEFIT RIDER

The following examples show the effect of withdrawals on the benefits under the Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider.

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”)

2. Rider Withdrawal Amount (“RWA”)

3. Rider Death Benefit (“RDB”)

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Withdrawal Base. Gross partial withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the withdrawal base prior to the withdrawal of the excess amount.

Rider Death Benefit. Gross partial withdrawals in a rider year up to the rider withdrawal amount will reduce the rider death benefit by the amount withdrawn (dollar-for-dollar). Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the rider death benefit by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the rider death benefit after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

EXAMPLE 1 (BASE):

Assumptions:

WB = $100,000

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

Gross partial withdrawal (“GPWD”) = $5,000

Excess withdrawal (“EWD”) = None

Policy Value (“PV”) = $100,000

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%.

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base does not change.

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EXAMPLE 2 (EXCESS WITHDRAWAL):

Assumptions:

WB = $100,000

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

GPWD = $7,000

EWD = $2,000 ($7,000— $5,000)

PV = $90,000

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,000, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV—5% withdrawal)) * WB before any adjustments

2. ($2,000 / ($90,000—$5,000)) * $100,000 = $2,352.94

Step Three. Which is larger, the actual $2,000 excess withdrawal or the $2,352.94 pro rata amount? $2,352.94 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based? $100,000 -$2,352.94 = $97,647.06

Result. The new withdrawal base is $97,647.06

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.

Question: What is the new rider withdrawal amount?

$97,647.06 (the adjusted withdrawal base) * 5% = $4,882.35

Result. Going forward, the maximum you can take out in a year is $4,882.35 without causing excess withdrawal for the guarantee and further reduction of the withdrawal base (assuming there are no future automatic step-ups).

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EXAMPLE 3 (BASE DEMONSTRATING GROWTH):

Assumptions:

WB = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 10 = $162,889

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken and the growth stops on the 10th rider anniversary.

GPWD = $8,144

EWD = None

PV = $90,000 in 10 years

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 56 on rider issue; age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%.

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $8,144, the withdrawal base does not change.

EXAMPLE 4 (BASE DEMONSTRATING WB GROWTH WITH ADDITIONAL DEATH PAYMENT OPTION):

Assumptions:

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 56 on rider issue; age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%.

WB at rider issue = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 10 = $162,889

RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken, and the annual growth credit stops on the 10th rider anniversary.

GPWD = $8,144

EWD = None

PV = $90,000 in 10 years

169

Step One. Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.

Step Two. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $8,144 (there is no excess to deduct)

2. $100,000—$8,144 = $91,856.

Result. In this example, because no portion of the withdrawal was in excess of $8,144, the total withdrawal base does not change and the rider death benefit reduces to $91,856.

EXAMPLE 5 (BASE WITH WB GROWTH WITH ADDITIONAL DEATH PAYMENT OPTION ILLUSTRATING EXCESS WITHDRAWAL):

Assumptions:

You = owner and annuitant, or younger of annuitant and annuitant’s spouse if joint life option is elected for additional cost, age 56 on rider issue; age 66 at time withdrawals begin, which means Withdrawal Percentage is 5%.

WB at rider issue = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 10 = $162,889

RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

Please note that withdrawals under this rider can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken, and the annual growth credit stops on the 10th rider anniversary.

GPWD = $10,000

EWD = $1,856 ($10,000—$8,144)

PV = $90,000 in 10 years

Step One. Is any portion of the total withdrawal greater than the rider withdrawal amount?

Yes. $10,000—$8,144 = $1,856 (the excess withdrawal amount)

Step Two. Calculate how much of the rider death benefit is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV—5% withdrawal)) * (RDB—5% withdrawal)

2. ($1,856 / ($90,000—$8,144)) * ($100,000—$8,144) = $2,082.74

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $2,082.74 pro rata amount?

$2,082.74 pro rata amount

Step Four. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $8,144 (RWA) + $2,082.74 (pro rata excess) = $10,226.74

2. $100,000—$10,226.74= $89,773.26

Result. The rider benefit is $89,773.26.

170

NOTE. Because there was an excess withdrawal amount in this example, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $8,144, the withdrawal base would remain at $162,889 and the rider withdrawal amount would be $8,144. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

New withdrawal base:

Step One. The total withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV—5% withdrawal)) * WB before any adjustments

2. ($1,856 / ($90,000—$8,144)) * $162,889 = $3,693.34

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $3,693.34 pro rata amount?

$3,693.34 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$162,889—$3,693.34 = $159,195.66

Result. The new withdrawal base is $159,195.66

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new rider withdrawal amount?

$159,195.66 (the adjusted withdrawal base) * 5% = $7,959.78

Result. Going forward, the maximum you can take out in a year is $7,959.78 without causing an excess withdrawal for the guarantee and further reduction of the withdrawal base.

The Retirement Income Choice^SM with Double Initial Withdrawal Base Benefit rider and additional options may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Retirement Income Choice^SM with Double Initial Withdrawal Base Benefit rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

171

WRL FREEDOM PREMIER^® III VARIABLE ANNUITY

Issued by

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

Supplement Dated May 1, 2012

to the

Prospectus dated May 1, 2012

We will not accept any premium payment that is allocated to the fixed account or the dollar cost averaging fixed account in excess of $5,000. We also will not accept any premium payment or transfer which would result in the aggregate policy value in the fixed account and the dollar cost averaging fixed account exceeding $5,000.

This Prospectus Supplement must be accompanied or preceded

by the Prospectus for the

WRL Freedom Premier^® III Variable Annuity dated May 1, 2012

STATEMENT OF ADDITIONAL INFORMATION

WRL FREEDOM PREMIER^® III VARIABLE ANNUITY

Issued through

SEPARATE ACCOUNT VA U

Offered by

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

This Statement of Additional Information expands upon subjects discussed in the current prospectus for the WRL Freedom Premier^® III Variable Annuity offered by Western Reserve Life Assurance Co. of Ohio. You may obtain a copy of the current prospectus, dated May 1, 2012, by calling (800) 851-9777, or write us at: Western Reserve Life Assurance Co. of Ohio, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001. The prospectus sets forth information that a prospective investor should know before investing in a policy. Terms used in the current prospectus for the policy are incorporated in this Statement of Additional Information.

This Statement of Additional Information (SAI) is not a prospectus and should be read only in conjunction with the prospectuses for the policy and the underlying fund portfolios.

Dated: May 1, 2012

TABLE OF CONTENTS

GLOSSARY OF TERMS	3
THE POLICY — GENERAL PROVISIONS	6
Owner	6
Entire Policy	6
Misstatement of Age or Sex	7
Reallocation of Annuity Units After the Annuity Commencement Date	7
Annuity Payment Options	7
Death Benefit	8
Death of Owner	9
Assignment	9
Evidence of Survival	9
Non-Participating	9
Amendments	9
Employee and Agent Purchases	10
Present Value of Future Variable Payments	10
Stabilized Payments	10
CERTAIN FEDERAL INCOME TAX CONSEQUENCES	11
Tax Status of the Policy	11
Taxation of Annuities	12
Taxation of the Company	15
INVESTMENT EXPERIENCE	15
Accumulation Units	15
Annuity Unit Value and Annuity Payment Rates	17
HISTORICAL PERFORMANCE DATA	19
Money Market Yields	19
Total Returns	21
Other Performance Data	21
Adjusted Historical Performance Data	22
PUBLISHED RATINGS	22
STATE REGULATION OF WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO	22
ADMINISTRATION	22
RECORDS AND REPORTS	22
DISTRIBUTION OF THE POLICIES	23
VOTING RIGHTS	23
OTHER PRODUCTS	24
CUSTODY OF ASSETS	24
LEGAL MATTERS	24
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	25
OTHER INFORMATION	25
FINANCIAL STATEMENTS	25
APPENDIX
CONDENSED FINANCIAL INFORMATION	26

2

GLOSSARY OF TERMS

Accumulation Unit — An accounting unit of measure used in calculating the policy value in the separate account before the annuity commencement date.

Adjusted Policy Value — The policy value increased or decreased by any excess interest adjustment.

Administrative and Service Office — Western Reserve Life Assurance Co. of Ohio, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001, (800) 851-9777. All premium payments, loan repayments, correspondence and notices should be sent to this address.

Annuitant — The person on whose life any annuity payments involving life contingencies will be based.

Annuity Commencement Date — The date upon which annuity payments are to commence. This date may be any date after the policy date and may not be later than the last day of the policy month following the month after the annuitant attains age 95. The earliest annuity commencement date is at least four years after you purchase your policy. The annuity commencement date may have to be earlier for qualified policies and may be earlier if required by state law.

Annuity Payment Option — A method of receiving a stream of annuity payments selected by the owner.

Annuity Unit — An accounting unit of measure used in the calculation of the amount of the second and each subsequent variable annuity payment.

Assumed Investment Return or AIR — The annual effective rate shown in the contract specifications section of the contract that is used in the calculation of each variable annuity payment.

Beneficiary — The person who has the right to the death benefit as set forth in the policy.

Business Day — A day when the New York Stock Exchange is open for regular trading.

Cash Value — The adjusted policy value less anyapplicable surrender charge and rider fees (imposed upon surrender).

Code — The Internal Revenue Code of 1986, as amended.

Enrollment form — A written application, order form, or any other information received electronically or otherwise upon which the policy is issued and/or is reflected on the data or specifications page.

Excess Interest Adjustment — A positive or negative adjustment to amounts surrendered (both partial or full surrenders and transfers) or applied to annuity payment options from the fixed account guaranteed period options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by the Company since the date any payment was received by, or an amount was transferred to, the guaranteed period option. The excess interest adjustment can either decrease or increase the amount to be received by the owner upon full surrender or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively.

Excess Partial Surrender — The portion of a partial surrender (surrender) that exceeds the free amount.

3

Fixed Account — One or more investment choices under the policy that are part of the Company’s general assets and are not in the separate account.

Free Amount — The amount that can be withdrawn each year without incurring any surrender charges or excess interest adjustments.

Guaranteed Lifetime Withdrawal Benefit — Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including Living Benefits Rider

Guaranteed Period Options — The various guaranteed interest rate periods of the fixed account which the Company may offer and into which premium payments may be paid or amounts transferred.

Nonqualified Policy — A policy other than a qualified policy.

Owner (You, Your) — The person who may exercise all rights and privileges under the policy. The owner during the lifetime of the annuitant and prior to the annuity commencement date is the person designated as the owner in the information provided to us to issue a policy.

Policy Date — The date shown on the policy data page attached to the policy and the date on which the policy becomes effective.

Policy Value — On or before the annuity commencement date, the policy value is equal to the owner’s:

• premium payments; minus

• gross partial surrenders (partial surrenders minus excess interest adjustments plus the surrender charge on the portion of the requested partial surrender that is subject to the surrender charge); plus

• interest credited in the fixed account; plus

• accumulated gains in the separate account; minus

• accumulated losses in the separate account; minus

• service charges, rider fees, premium taxes, transfer fees, and other charges, if any.

Policy Year — A policy year begins on the policy date and on each anniversary thereof.

Premium Payment — An amount paid to the Company by the owner or on the owner’s behalf as consideration for the benefits provided by the policy.

Qualified Policy — A policy issued in connection with retirement plans that qualify for special federal income tax treatment under the Code.

Separate Account — Separate Account VA U, a separate account established and registered as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.

Separate Account Value — The portion of the policy value that is invested in the separate account.

4

Service Charge — An annual charge on each policy anniversary (and a charge at the time of surrender during any policy year) for policy maintenance and related administrative expenses. This annual charge is $30, but will not exceed 2% of the policy value.

Subaccount — A subdivision within the separate account, the assets of which are invested in a specified underlying fund portfolios.

Supportable Payment — The amount equal to the sum of the variable annuity unit values multiplied by the number of variable annuity units in each of the selected subaccounts.

Surrender Charge — A percentage of each premium payment that depends upon the length of time from the date of each premium payment. The surrender charge is assessed on full or partial surrenders from the policy. A surrender charge may also be referred to as a “contingent deferred sales charge.”

Valuation Period — The period of time from one determination of accumulation unit values and annuity unit values to the next subsequent determination of those values. Such determination shall be made on each business day.

Variable Annuity Payments — Payments made pursuant to an annuity payment option which fluctuate as to dollar amount or payment term in relation to the investment performance of the specified subaccounts within the separate account.

Written Notice — Written notice, signed by the owner, that gives the Company the information it requires and is received in good order at the Administrative and Service Office. For some transactions, the Company may accept an electronic notice, such as telephone instructions. Such electronic notice must meet the requirements for good order that the Company establishes for such notices.

5

In order to supplement the description in the prospectus, the following provides additional information about Western Reserve Life Assurance Co. of Ohio (the Company, we, us or our) and the policy, which may be of interest to a prospective purchaser.

THE POLICY — GENERAL PROVISIONS

Owner

The policy shall belong to the owner upon issuance of the policy after completion of an enrollment form and delivery of the initial premium payment. While the annuitant is living, the owner may: (1) assign the policy; (2) surrender the policy; (3) amend or modify the policy with the Company’s consent; (4) receive annuity payments or name a payee to receive the payments; and (5) exercise, receive and enjoy every other right and benefit contained in the policy. The exercise of these rights may be subject to the consent of any assignee or irrevocable beneficiary; and of your spouse in a community or marital property state.

Unless the Company has been notified of a community or marital property interest in the policy, it will rely on its good faith belief that no such interest exists and will assume no responsibility for inquiry.

Note carefully. If the owner predeceases the annuitant and no joint owner, primary beneficiary, or contingent beneficiary is alive or in existence on the date of death, the owner’s estate will become the new owner. If no probate estate is opened because the owner has precluded the opening of a probate estate by means of a trust or other instrument, that trust may not exercise ownership rights to the policy. It may be necessary to open a probate estate in order to exercise ownership rights to the policy.

The owner may change the ownership of the policy in a written notice. When this change takes effect, all rights of ownership in the policy will pass to the new owner. A change of ownership may have tax consequences.

When there is a change of owner, the change will not be effective until it is recorded in our records. Once recorded, it will take effect as of the date the owner signs the written notice, subject to any payment the Company has made or action the Company has taken before recording the change. Changing the owner does not change the designation of the beneficiary or the annuitant.

If ownership is transferred to a new owner (except to the owner’s spouse) because the owner dies before the annuitant, then (a) the cash value generally must be distributed to the new owner within five years of the owner’s death, or (b) annuity payments must be made for a period certain or for the new owner’s lifetime so long as any period certain does not exceed that new owner’s life expectancy, if the first payment begins within one year of your death.

Entire Policy

The policy, any endorsements or riders thereon, the enrollment form, or information provided in lieu thereof, constitute the entire contract between the Company and the owner. All statements in the enrollment form are representations and not warranties. No statement will cause the policy to be void or to be used in defense of a claim unless contained in the enrollment form or information provided in lieu thereof.

6

Misstatement of Age or Sex

If the age or sex of the annuitant or owner has been misstated, the Company will change the annuity benefit payable to that which the premium payments would have purchased for the correct age or sex. The dollar amount of any underpayment made by the Company shall be paid in full with the next payment due such person or the beneficiary. The dollar amount of any overpayment made by the Company due to any misstatement shall be deducted from payments subsequently accruing to such person or beneficiary. Any underpayment or overpayment will include interest at 5% per year, from the date of the wrong payment to the date of the adjustment. The age of the annuitant or owner may be established at any time by the submission of proof satisfactory to the Company.

Reallocation of Annuity Units After the Annuity Commencement Date

After the annuity commencement date, you may reallocate the value of a designated number of annuity units of a subaccount then credited to a policy into an equal value of annuity units of one or more other subaccounts or the fixed account. The reallocation shall be based on the relative value of the annuity units of the account(s) or subaccount(s) at the end of the business day on the next payment date. The minimum amount which may be reallocated is the lesser of (1) $10 of monthly income or (2) the entire monthly income of the annuity units in the account or subaccount from which the transfer is being made. If the monthly income of the annuity units remaining in an account or subaccount after a reallocation is less than $10, the Company reserves the right to include the value of those annuity units as part of the transfer. The request must be in writing to the Company’s administrative and service office. There is no charge assessed in connection with such reallocation. A reallocation of annuity units may be made up to four times in any given policy year.

After the annuity commencement date, no transfers may be made from the fixed account to the separate account.

Annuity Payment Options

Note: Portions of the following discussion do not apply to annuity payments under the Initial Payment Guarantee. See the “Stabilized Payments” section of this SAI.

During the lifetime of the annuitant and before the annuity commencement date, the owner may choose an annuity payment option or change the election, but notice of any election or change of election must be received by the Company in good order at least thirty (30) days before the annuity commencement date (elections less than 30 days require prior approval). If no election is made before the annuity commencement date, annuity payments will be made under (1) life income with level (fixed) payments for 10 years certain, using the existing policy value of the fixed account, or (2) life income with variable payments for 10 years certain using the existing policy value of the separate account, or (3) a combination of (1) and (2).

The person who elects an annuity payment option can also name one or more successor payees to receive any unpaid amount the Company has at the death of a payee. Naming these payees cancels any prior choice of a successor payee.

A payee who did not elect the annuity payment option does not have the right to advance or assign payments, take the payments in one sum, or make any other change. However, the payee may be given the right to do one or more of these things if the person who elects the option tells the Company in writing and the Company agrees.

7

Variable Payment Options. The dollar amount of the first variable annuity payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. For annuity payments the tables are based on a 5% effective annual Assumed Investment Return and the “2000 Table”, using an assumed annuity commencement date of 2005 (static projection to this point) with dynamic projection using scale G from that point (100% of G for male, 50% of G for females). The dollar amount of additional variable annuity payments will vary based on the investment performance of the subaccount(s) of the separate account selected by the annuitant or beneficiary.

Determination of the First Variable Payment. The amount of the first variable payment depends upon the sex (if consideration of sex is allowed under state law) and adjusted age of the annuitant. For regular annuity payments, the adjusted age is the annuitant’s actual age nearest birthday, on the annuity commencement date, adjusted as described in your policy. This adjustment assumes an increase in life expectancy, and therefore it results in lower payments than without such an adjustment.

Determination of Additional Variable Payments. All variable annuity payments other than the first are calculated using annuity units which are credited to the policy. The number of annuity units to be credited in respect of a particular subaccount is determined by dividing that portion of the first variable annuity payment attributable to that subaccount by the annuity unit value of that subaccount on the annuity commencement date. The number of annuity units of each particular subaccount credited to the policy then remains fixed, assuming no transfers to or from that subaccount occur. The dollar value of variable annuity units in the chosen subaccount will increase or decrease reflecting the investment experience of the chosen subaccount. The dollar amount of each variable annuity payment after the first may increase, decrease or remain constant. This amount is equal to the sum of the amounts determined by multiplying the number of annuity units of each particular subaccount credited to the policy by the annuity unit value for the particular subaccount on the date the payment is made.

Death Benefit

Due proof of death of the annuitant is proof that the annuitant died prior to the commencement of annuity payments. A certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death, a written statement by the attending physician, or any other proof satisfactory to the Company will constitute due proof of death.

Upon receipt in good order of this proof and an election of a method of settlement and return of the policy, the death benefit generally will be paid within seven days, or as soon thereafter as the Company has sufficient information about the beneficiary(ies) to make the payment. The beneficiary may receive the amount payable in a lump sum cash benefit, or, subject to any limitation under any state or federal law, rule, or regulation, under one of the annuity payment options described above, unless a settlement agreement is effective at the death of the owner preventing such election.

If an owner is not an annuitant, and dies prior to the annuity commencement date, the new owner may surrender the policy at any time for the amount of theadjusted policy value. If the new owner is not the deceased owner’s spouse, however, (1) theadjusted policy value must be distributed within five years after the date of the deceased owner’s death, or (2) payments under an annuity payment option must begin no later than one year after the deceased owner’s death and must be made for the new owner’s lifetime or for a period certain (so long as any period certain does not exceed the new owner’s life expectancy). If the sole new owner is the deceased owner’s surviving spouse, such spouse may elect to continue the policy as the new owner instead of receiving the death benefit.

8

Beneficiary. The beneficiary designation in the enrollment form will remain in effect until changed. The owner may change the designated beneficiary by sending written notice to the Company. The beneficiary’s consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the owner may then designate a new beneficiary.) The change will take effect as of the date the owner signs the written notice, whether or not the owner is living when the notice is received by the Company. The Company will not be liable for any payment made before the written notice is received. If more than one beneficiary is designated, and the owner fails to specify their interests, they will share equally. If upon the death of the annuitant there is a surviving owner(s), the surviving owner(s) automatically takes the place of any beneficiary designation.

Death of Owner

Federal tax law requires that if any owner (including any joint owner who has become a current owner) dies before the annuity commencement date, then the entire value of the policy must generally be distributed within five years of the date of death of such owner. Certain rules apply where (1) the spouse of the deceased owner is the sole beneficiary, (2) the owner is not a natural person and the primary annuitant dies or is changed, or (3) any owner dies after the annuity commencement date. See “Certain Federal Income Tax Consequences” for more information about these rules. Other rules may apply to qualified policies.

Assignment

During the lifetime of the annuitant you may assign any rights or benefits provided by the policy if your policy is a nonqualified policy. An assignment will not be binding on the Company until a copy has been filed at its administrative and service office. Your rights and benefits and those of the beneficiary are subject to the rights of the assignee. The Company assumes no responsibility for the validity or effect of any assignment. Any claim made under an assignment shall be subject to proof of interest and the extent of the assignment. An assignment may have tax consequences.

Unless you so direct by filing written notice with the Company, no beneficiary may assign any payments under the policy before they are due. To the extent permitted by law, no payments will be subject to the claims of any beneficiary’s creditors.

Ownership under qualified policies is restricted to comply with the Code.

Evidence of Survival

The Company reserves the right to require satisfactory evidence that a person is alive if a payment is based on that person being alive. No payment will be made until the Company receives such evidence.

Non-Participating

The policy will not share in the Company’s surplus earnings; no dividends will be paid.

Amendments

No change in the policy is valid unless made in writing by the Company and approved by one of the Company’s officers. No registered representative has authority to change or waive any provision of the policy.

9

The Company reserves the right to amend the policies to meet the requirements of the Code, regulations or published rulings. You can refuse such a change by giving written notice, but a refusal may result in adverse tax consequences.

Employee and Agent Purchases

The policy may be acquired by an employee or registered representative of any broker/dealer authorized to sell the policy or their immediate family, or by an officer, director, trustee or bona-fide full-time employee of the Company or its affiliated companies or their immediate family. In such a case, the Company in its discretion, may credit an amount equal to a percentage of each premium payment to the policy due to lower acquisition costs the Company experiences on those purchases. The Company may offer certain employer sponsored savings plans, reduced fees and charges including, but not limited to, the annual service charge, the surrender charges, the mortality and expense risk fee and the administrative charge for certain sales under circumstances which may result in savings of certain costs and expenses. In addition, there may be other circumstances of which the Company is not presently aware which could result in reduced sales or distribution expenses. Credits to the policy or reductions in these fees and charges will not be unfairly discriminatory against any owner.

Present Value of Future Variable Payments

The present value of future period certain variable payments is calculated by taking (a) the supportable payment on the business day we receive the surrender request (in good order), multiplied by (b) the number of payments remaining, multiplied by a discount rate (such as the assumed investment rate or “AIR”).

Stabilized Payments

If you have selected a payout feature that provides for stabilized payments (e.g., the Initial Payment Guarantee), please note that the stabilized payments remain level throughout each year and are adjusted on your annuitization anniversary. Without stabilized payments, each payment throughout the year would fluctuate based on the performance of your selected subaccounts. To reflect the difference in these payments we adjust (both increase and decrease as appropriate) the number of annuity units. The annuity units are adjusted when we calculate the supportable payment. Supportable payments are used in the calculation of surrender values, death benefits and transfers. On the anniversary of your annuity commencement date we set the new stabilized payment equal to the current supportable payment. In the case of an increase in the number of variable annuity units, your participation in the future investment performance of the subaccounts will be increased because more variable annuity units are credited to you. Conversely, in the case of a reduction of the number of variable annuity units, your participation in the future investment performance of the subaccounts will be decreased because fewer variable annuity units are credited to you. If the Initial Payment Guarantee is chosen, then the stabilized variable annuity payment will equal the greater of the guaranteed payment or the supportable payment at that time.

10

The following table demonstrates, on a purely hypothetical basis, the changes in the number of variable annuity units. The changes in the variable annuity unit values reflect the investment performance of the applicable subaccounts as well as the separate account charge.

Hypothetical Changes in Annuity Units with Stabilized Payments*
Assumed Investment Rate			5.0%
Life & 10 Year Certain
Male aged 65
First Variable Payment			$500
		Beginning Annuity Units	Annuity Unit Values	Monthly Payment Without Stabilization	Monthly Stabilized Payment	Adjustments In Annuity Units	Cumulative Adjusted Annuity Units
At Issue:	January 1	400.0000	1.250000	$500.00	$500.00	0.0000	400.0000
	February 1	400.0000	1.252005	$500.80	$500.00	0.0041	400.0041
	March 1	400.0000	1.252915	$501.17	$500.00	0.0059	400.0100
	April 1	400.0000	1.245595	$498.24	$500.00	(0.0089)	400.0011
	May 1	400.0000	1.244616	$497.85	$500.00	(0.0108)	399.9903
	June 1	400.0000	1.239469	$495.79	$500.00	(0.0212)	399.9691
	July 1	400.0000	1.244217	$497.69	$500.00	(0.0115)	399.9576
	August 1	400.0000	1.237483	$494.99	$500.00	(0.0249)	399.9327
	September 1	400.0000	1.242382	$496.95	$500.00	(0.0150)	399.9177
	October 1	400.0000	1.242382	$496.95	$500.00	(0.0149)	399.9027
	November 1	400.0000	1.249210	$499.68	$500.00	(0.0016)	399.9012
	December 1	400.0000	1.252106	$500.84	$500.00	0.0040	399.9052
	January 1	399.9052	1.255106	$501.92	$501.92	0.0000	399.9052

* The total separate account expenses and portfolio expenses included in the calculations are 2.25% (2.25% is a hypothetical figure). If higher (or lower) expenses were charged, the numbers would be lower (or higher).

CERTAIN FEDERAL INCOME TAX CONSEQUENCES

The following summary does not constitute tax advice. It is a general discussion of certain of the expected federal income tax consequences of investment in and distributions with respect to a policy, based on the Code, Regulations thereunder, judicial authority, and current administrative rulings and practice. This summary discusses only certain federal income tax consequences to “United States Persons,” and does not discuss federal gift, estate or any other state, local, or foreign tax consequences. United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships and trusts, or estates that are subject to United States federal income tax regardless of the source of their income.

Tax Status of the Policy

Diversification Requirements. Section 817(h) of the Code provides that in order for a non-qualified variable policy which is based on a segregated asset account to qualify as an annuity policy under the Code, the investments made by

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such account must be “adequately diversified” in accordance with Treasury Regulations. The Regulations issued under Section 817(h) (Treas. Reg. Section 1.817-5) apply a diversification requirement to each of the subaccounts. The separate account, through its underlying fund portfolios and their portfolios, intends to comply with the diversification requirements of the Regulations. We have entered into agreements with each underlying fund portfolio company that require the portfolios to be operated in compliance with the Regulations.

Owner Control. In some circumstances, owners of variable policies who retain excessive control over the investment of the underlying separate account assets may be treated as the owners of those assets and may be subject to tax on income produced by those assets. Although there is little guidance in this area and published guidance does not address certain aspects of the policies, we believe that the owner of a policy should not be treated as the owner of the underlying assets. We reserve the right to modify the policies to bring them into conformity with applicable standards should such modification be necessary to prevent owners of the policies from being treated as the owners of the underlying separate account assets.

Distribution Requirements. The Code requires that nonqualified policies contain specific provisions for distribution of policy proceeds upon the death of any owner. In order to be treated as an annuity policy for federal income tax purposes, the Code requires that such policies provide that if any owner dies on or after the annuity commencement date and before the entire interest in the policy has been distributed, the remaining portion must be distributed at least as rapidly as under the method in effect on such owner’s death. If any owner dies before the annuity commencement date, the entire interest in the policy must generally be distributed within 5 years after such owner’s date of death or be used to provide payments to a designated beneficiary beginning within one year of such owner’s death and will be made for the life of the beneficiary or for a period not extending beyond the life expectancy of the beneficiary. However, if upon such owner’s death prior to the annuity commencement date, such owner’s surviving spouse becomes the sole new owner under the policy, then the policy may be continued with the surviving spouse as the new owner. Under the policy, the beneficiary is the person(s) designated by an owner/annuitant and the surviving joint owner is the beneficiary of an owner who is not the annuitant. If any owner is not a natural person, then for purposes of these distribution requirements, the primary annuitant shall be treated as an owner and any death or change of such primary annuitant shall be treated as the death of an owner. The nonqualified policies contain provisions intended to comply with these requirements of the Code. No regulations interpreting these requirements of the Code have yet been issued and thus no assurance can be given that the provisions contained in the policies satisfy all such Code requirements. The provisions contained in the policies will be reviewed and modified if necessary to assure that they comply with the Code requirements when clarified by regulation or otherwise.

The Federal Defense of Marriage Act currently does not recognize same-sex marriages or civil unions, even those that are permitted under individual state laws. Therefore, exercise of the spousal continuation provisions of this policy by persons who do not meet the definition of “spouse” under federal law—e.g., civil union partners and same-sex marriage spouses—may have adverse tax consequences. Consult a tax advisor for more information on this subject.

The following discussion is based on the assumption that the policy qualifies as an annuity policy for federal income tax purposes.

Taxation of Annuities

In General. Code Section 72 governs taxation of annuities in general. We believe that an owner who is an individual will not be taxed on increases in the value of a policy until such amounts are surrendered or distributed. For this purpose, the assignment, pledge, or agreement to assign or pledge any portion of the policy value, and in the case of a qualified policy, any portion of an interest in the plan, generally will be treated as a distribution. The taxable portion of a distribution is taxable as ordinary income.

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Non-Natural Persons. Pursuant to Section 72(u) of the Code, a nonqualified policy held by a taxpayer other than a natural person generally will not be treated as an annuity policy under the Code; accordingly, an owner who is not a natural person will recognize as ordinary income for a taxable year the excess, if any, of the policy value over the “investment in the contract”. There are some exceptions to this rule and a prospective purchaser of the policy that is not a natural person should discuss these with a competent tax adviser.

Withholding. The portion of any distribution under a policy that is includable in gross income will be subject to federal income tax withholding unless the recipient of such distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or made. For certain qualified policies, the withholding rate varies according to the type of distribution and the owner’s tax status. For qualified policies taxable, “eligible rollover distributions” from Section 401(a) plans, Section 403(a) annuities, Section 403(b) tax-sheltered annuities, and governmental 457 plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution from such a plan, other than specified distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, to nontaxable distributions or if (i) the employee (or employee’s spouse or former spouse as beneficiary or alternate payee) chooses a “direct rollover” from the plan to a tax-qualified plan, IRA, Roth IRA or tax sheltered annuity or to a governmental 457 plan that agrees to separately account for rollover contributions; or (ii) a non-spouse beneficiary chooses a “direct rollover” from the plan to an IRA established by the direct rollover.

Incidental Death Benefits. The policy may include optional death benefit features, the value of which may exceed the value of the policy or premium payments made under the policy. Federal tax laws limit the value of such incidental death benefit in tax-qualified pension, profit-sharing and 403(b) plans. Further, the Internal Revenue Service has not reviewed this policy for qualification as an IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the policy comport with qualification requirements. The actuarial present value of death benefit options and riders elected may need to be considered in calculating minimum required distributions. Consult a qualified tax adviser before purchasing an optional death benefit.

Qualified Policies. The qualified policy is designed for use with several types of tax-qualified retirement plans. The tax rules applicable to participants and beneficiaries in tax-qualified retirement plans vary according to the type of plan and the terms and conditions of the plan. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from contributions in excess of specified limits, distributions prior to age 59 ¹/2 (subject to certain exceptions), distributions that do not conform to specified commencement and minimum distribution rules, and in other specified circumstances. Some retirement plans are subject to distribution and other requirements that are not incorporated into the policies or our policy administration procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions, and other transactions with respect to the policies comply with applicable law.

For qualified plans under Section 401(a), 403(a), 403(b), and 457, the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the owner (or plan participant) (i) reaches age 70 ¹/2 or (ii) retires, and must be made in a specified form or manner. If a participant in a Section 401(a) plan is a “5 percent owner” (as defined in the Code), or in the case of an IRA (other than a Roth IRA), distributions generally must begin no later than April 1 of the calendar year in which the owner (or plan participant) reaches age 70 ¹/2. Each owner is responsible for requesting distributions under the policy that satisfy applicable tax rules.

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We do not attempt to provide more than general information about use of the policy with the various types of retirement plans. Purchasers of policies for use with any retirement plan should consult their legal counsel and tax adviser regarding the suitability of the policy.

Traditional Individual Retirement Annuities. In order to qualify as a traditional individual retirement annuity under Section 408(b) of the Code, a policy must satisfy certain conditions: (i) the owner must be the annuitant; (ii) the policy generally is not transferable by the owner, e.g., the owner may not designate a new owner, designate a contingent owner or assign the policy as collateral security; (iii) subject to special rules, the total premium payments for any calendar year may not exceed the amount specified in the Code for the year, except in the case of a rollover amount or contribution under Section 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) or 457(e)(16) of the Code; (iv) annuity payments or partial surrenders must begin no later than April 1 of the calendar year following the calendar year in which the annuitant attains age 70 ¹/2; (v) an annuity payment option with a period certain that will guarantee annuity payments beyond the life expectancy of the annuitant and the beneficiary may not be selected; (vi) certain payments of death benefits must be made in the event the annuitant dies prior to the distribution of the policy value; (vii) the entire interest of the owner is non-forfeitable; and (viii) the premiums must not be fixed. Policies intended to qualify as traditional individual retirement annuities under Section 408(b) of the Code contain such provisions. Amounts in the IRA (other than nondeductible contributions) are taxed when distributed from the IRA. Distributions prior to age 59 ¹/2 (unless certain exceptions apply) are subject to a 10% penalty tax.

Roth Individual Retirement Annuities (Roth IRA). The Roth IRA, under Section 408A of the Code, contains many of the same provisions as a traditional IRA. However, there are some differences. First, the contributions are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax. The Roth IRA is available to individuals with earned income and whose modified adjusted gross income is under a specified dollar amount for the year. Subject to special rules, the amount per individual that may be contributed to all IRAs (Roth and traditional) is the deductible amount specified in the Code for the year. Secondly, the distributions are taxed differently. The Roth IRA offers tax-free distributions when made 5 tax years after the first contribution to any Roth IRA of the individual and made after attaining age 59 ¹/2, to pay for qualified first time homebuyer expenses (lifetime maximum of $10,000), or due to death or disability. All other distributions are subject to income tax when made from earnings and may be subject to a penalty tax unless an exception applies. Unlike the traditional IRA, there are no minimum required distributions during the owner’s lifetime; however, required distributions at death are generally the same as for traditional IRAs.

Section 403(b) Plans. Under Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase policies for their employees are generally excludable from the gross income of the employee, subject to certain limitations. However, such payments may be subject to FICA (Social Security) taxes. The policy includes a death benefit that in some cases may exceed the greater of the premium payments or the policy value. The death benefit could be characterized as an incidental benefit, the amount of which is limited in any tax-sheltered annuity under Section 403(b). Therefore, employers using the policy in connection with such plans should consult their tax adviser. Additionally, in accordance with the requirements of the Code, Section 403(b) annuities generally may not permit distribution of (i) elective contributions made in years beginning after December 31, 1988, and (ii) earnings on those contributions, and (iii) earnings on amounts attributed to elective contributions held as of the end of the last year beginning before January 1, 1989. Distributions of such amounts will be allowed only upon the death of the employee, on or after attainment of age 59 ¹/2, severance from employment, disability, or financial hardship, except that income attributable to elective contributions may not be distributed in the case of hardship. These rules may prevent the payment of guaranteed withdrawals under a guaranteed lifetime withdrawal benefit prior to age 59 ¹/2.

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For policies issued after 2008, amounts attributable to nonelective contributions may be subject to distribution restrictions specified in the employer’s section 403(b) plan.

Pursuant to new tax regulations, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders you request from a 403(b) policy comply with applicable tax requirements before we process your request. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) policies or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Corporate Pension and Profit-Sharing Plans and H.R. 10 Plans. Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of retirement plans for employees and self-employed individuals to establish qualified plans for themselves and their employees. Such retirement plans may permit the purchase of the policies to accumulate retirement savings. Adverse tax consequences to the plan, the participant or both may result if the policy is assigned or transferred to any individual as a means to provide benefit payments.

Deferred Compensation Plans. Section 457 of the Code, while not actually providing for a qualified plan as that term is normally used, provides for certain deferred compensation plans with respect to service for state governments, local governments, political subdivisions, agencies, instrumentalities, and certain affiliates of such entities, and tax exempt organizations. The policies can be used with such plans. Under such plans a participant may specify the form of investment in which his or her participation will be made. For non-governmental Section 457 plans, all such investments, however, are owned by, and are subject to, the claims of the general creditors of the sponsoring employer. Depending on the terms of the particular plan, a non-government employer may be entitled to draw on deferred amounts for purposes unrelated to its Section 457 plan obligations. In general, all amounts received under a nongovernmental Section 457 plan are taxable and are subject to federal income tax withholding as wages.

Taxation of the Company

The Company at present is taxed as a life insurance company under part I of Subchapter L of the Code. The separate account is treated as part of the Company and, accordingly, will not be taxed separately as a “regulated investment company” under Subchapter M of the Code. We do not expect to incur any federal income tax liability with respect to investment income and net capital gains arising from the activities of the separate account retained as part of the reserves under the policy. Based on this expectation, it is anticipated that no charges will be made against the separate account for federal income taxes. If, in future years, any federal income taxes are incurred by us with respect to the separate account, we may make a charge to that account.

INVESTMENT EXPERIENCE

A “net investment factor” is used to determine the value of accumulation units and annuity units, and to determine annuity payment rates.

Accumulation Units

Allocations of a premium payment directed to a subaccount are credited in the form of accumulation units. Each subaccount has a distinct accumulation unit value. The number of units credited is determined by dividing the premium

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payment or amount transferred to the subaccount by the accumulation unit value of the subaccount as of the end of the valuation period during which the allocation is made. For each subaccount, the accumulation unit value for a given business day is based on the net asset value of a share of the corresponding portfolio of the underlying fund portfolios less any applicable charges or fees. The investment performance of the portfolio, expenses, and deductions of certain charges affect the value of an accumulation unit.

Upon allocation to the selected subaccount, premium payments are converted into accumulation units of the subaccount. The number of accumulation units to be credited is determined by dividing the dollar amount allocated to each subaccount by the value of an accumulation unit for that subaccount as next determined after the premium payment is received at the administrative and service office or, in the case of the initial premium payment, when the enrollment form is completed, whichever is later. The value of an accumulation unit for each subaccount was arbitrarily established at $1 at the inception of each subaccount. Thereafter, the value of an accumulation unit is determined as of the close of trading on each day the New York Stock Exchange is open for regular trading.

An index (the “net investment factor”) which measures the investment performance of a subaccount during a valuation period, is used to determine the value of an accumulation unit for the next subsequent valuation period. The net investment factor may be greater or less than or equal to one; therefore, the value of an accumulation unit may increase, decrease, or remain the same from one valuation period to the next. You bear this investment risk. The net investment performance of a subaccount and deduction of certain charges affect the accumulation unit value.

The net investment factor for any subaccount for any valuation period is determined by dividing (a) by (b) and subtracting (c) from the result, where:

(a) is the net result of:

(1) the net asset value per share of the shares held in the subaccount determined at the end of the current valuation period, plus

(2) the per share amount of any dividend or capital gain distribution made with respect to the shares held in the subaccount if the ex-dividend date occurs during the current valuation period, plus or minus

(3) a per share credit or charge for any taxes determined by the Company to have resulted during the valuation period from the investment operations of the subaccount;

(b) is the net asset value per share of the shares held in the subaccount determined as of the end of the immediately preceding valuation period; and

(c) is an amount representing the separate account charge and any optional benefit fees, if applicable.

Illustration of Separate Account Accumulation Unit Value Calculations

Formula and Illustration for Determining the Net Investment Factor

Net Investment Factor = (A + B-C)-E

D

Where:

A = The net asset value of an underlying fund portfolio share as of the end of the current valuation period. Assume

A = $11.57

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B =	The per share amount of any dividend or capital gains distribution since the end of the immediately preceding valuation period.
	Assume	B = 0

C =	The per share charge or credit for any taxes reserved for at the end of the current valuation period.
	Assume	C = 0

D =	The net asset value of an underlying fund portfolio share at the end of the immediately preceding valuation period.
	Assume	D = $11.40

        E =     The daily deduction for the mortality and expense risk fee and the administrative charge, and any optional benefit fees, if applicable. Assume E totals 1.65% on an annual basis; On a daily basis, this equals 0.000044838.

Then, the net investment factor =	(11.57 + 0 – 0)-0.000044838 = Z = 1.014867443
	(11.40)

Formula and Illustration for Determining Accumulation Unit Value

Accumulation Unit Value = A * B

Where:

        A = The accumulation unit value for the immediately preceding valuation period.

Assume = $X

        B = The net investment factor for the current valuation period.

Assume = Y

Then, the accumulation unit value = $X * Y = $Z

Annuity Unit Value and Annuity Payment Rates

The amount of variable annuity payments will vary with annuity unit values. Annuity unit values rise if the net investment performance of the subaccount exceeds the assumed investment return of 5% annually. Conversely, annuity unit values fall if the net investment performance of the subaccount is less than the annual assumed investment return. The value of a variable annuity unit in each subaccount was established at $1 on the date operations began for that subaccount. The value of a variable annuity unit on any subsequent business day is equal to (a) multiplied by (b) multiplied by (c), where:

(a) is the variable annuity unit value for the subaccount on the immediately preceding business day;

(b) is the net investment factor for that subaccount for the valuation period; and

(c) is the assumed investment return adjustment factor for the valuation period.

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The assumed investment return adjustment factor for the valuation period is the product of discount factors of .99986634 per day to recognize the 5% effective annual assumed investment return. The valuation period is the period from the close of the immediately preceding business day to the close of the current business day.

The net investment factor for the policy used to calculate the value of a variable annuity unit in each subaccount for the valuation period is determined by dividing (i) by (ii) and subtracting (iii) from the result, where:

(i) is the result of:

(1) the net asset value of a fund share held in that subaccount determined at the end of the current valuation period; plus

(2) the per share amount of any dividend or capital gain distributions made by the fund for shares held in that subaccount if the ex-dividend date occurs during the valuation period; plus or minus

(3) a per share charge or credit for any taxes reserved for, which the Company determines to have resulted from the investment operations of the subaccount.

(ii) is the net asset value of a fund share held in that subaccount determined as of the end of the immediately preceding valuation period.

(iii) is a factor representing the mortality and expense risk fee and administrative charge. This factor is equal, on an annual basis, to 1.25% of the daily net asset value of shares held in that subaccount. (For calculating Initial Payment Guarantee annuity payments, the factor is higher at a rate of 2.50%).

The dollar amount of subsequent variable annuity payments will depend upon changes in applicable annuity unit values.

The annuity payment rates generally vary according to the annuity option elected and the gender and adjusted age of the annuitant at the annuity commencement date. The policy contains a table for determining the adjusted age of the annuitant.

Illustration of Calculations for Annuity Unit

Value and Variable Annuity Payments

Formula and Illustration for Determining Annuity Unit Value

Annuity Unit Value = A * B * C

Where:
	A =	annuity unit value for the immediately preceding valuation period.
		Assume = $X
	B =	Net investment factor for the valuation period for which the annuity unit value is being calculated.
		Assume = Y
	C =	A factor to neutralize the annual assumed investment return of 5% built into the Annuity Tables used.
		Assume = Z

Then, the annuity unit value is:

$X * Y * Z = $Q

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Formula and Illustration for Determining Amount of

First Monthly Variable Annuity Payment

First monthly variable annuity payment = A * B

                                                                      $1,000

Where:
A =	The adjusted policy value as of the annuity commencement date.
	Assume = $X
B =	The annuity purchase rate per $1,000 of adjusted policy value based upon the option selected, the sex and adjusted age of the annuitant according to the tables contained in the policy.
	Assume = $Y

Then, the first monthly variable annuity payment = $X * $Y = $Z

                                                                                      1,000

Formula and Illustration for Determining the Number of Annuity Units

Represented by Each Monthly Variable Annuity Payment

Number of annuity units = A

                                             B

Where:
A =	The dollar amount of the first monthly variable annuity payment.
	Assume = $X
B =	The annuity unit value for the valuation date on which the first monthly payment is due.
	Assume = $Y

Then, the number of annuity units = $X = Z

                                                            $Y

HISTORICAL PERFORMANCE DATA

Money Market Yields

The Company may from time to time disclose the current annualized yield of the money market subaccount, which invests in the corresponding money market portfolio, for a 7-day period in a manner which does not take into

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consideration any realized or unrealized gains or losses on shares of the corresponding money market portfolio or on its portfolio securities. This current annualized yield is computed by determining the net change (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) at the end of the 7-day period in the value of a hypothetical account having a balance of 1 unit of the money market subaccount at the beginning of the 7-day period, dividing such net change in account value by the value of the account at the beginning of the period to determine the base period return, and annualizing this quotient on a 365-day basis. The net change in account value reflects (i) net income from the portfolio attributable to the hypothetical account; and (ii) charges and deductions imposed under a policy that are attributable to the hypothetical account. The charges and deductions include the per unit charges for the hypothetical account for (i) the administrative charges and (ii) the mortality and expense risk fee. Current yield will be calculated according to the following formula:

Current Yield = ((NCS * ES)/UV) * (365/7)

Where:

NCS    = The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 subaccount unit.

ES      = Per unit expenses of the subaccount for the 7-day period.

UV    = The unit value on the first day of the 7-day period.

Because of the charges and deductions imposed under a policy, the yield for the money market subaccount will be lower than the yield for the corresponding money market portfolio. The yield calculations do not reflect the effect of any premium taxes. The yield calculations also do not reflect surrender charges that may be applicable to a particular policy. Surrender charges range from 8.5% to 0% of the amount of premium payments surrendered based on the number of years since the premium payment was made. Surrender charges are based on the number of years since the date the premium payment was made, not the policy issue date.

The Company may also disclose the effective yield of the money market subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the base period return according to the following formula:

Effective Yield = (1 + ((NCS—ES)/UV))^365/7 – 1

Where:

NCS    = The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 subaccount unit.

ES        = Per unit expenses of the subaccount for the 7-day period.

UV       = The unit value on the first day of the 7-day period.

The yield on amounts held in the money market subaccount normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The money market subaccount’s actual yield is affected by changes in interest rates on money market securities, average portfolio maturity of the corresponding money market portfolio, the types and quality of portfolio securities held by the corresponding money market portfolio and its operating expenses.

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Total Returns

The Company may from time to time also advertise or disclose total returns for one or more of the subaccounts for various periods of time. One of the periods of time will include the period measured from the date the subaccount commenced operations. When a subaccount has been in operation for 1, 5 and 10 years, respectively, the total return for these periods will be provided. Total returns for other periods of time may from time to time also be disclosed. Total returns represent the average annual compounded rates of return that would equate an initial investment of $1,000 to the redemption value of that investment as of the last day of each of the periods. The ending date for each period for which total return quotations are provided will be for the most recent month end practicable, considering the type and media of the communication and will be stated in the communication.

Total returns will be calculated using subaccount unit values which the Company calculates on each business day based on the performance of the separate account’s underlying fund portfolio and the deductions for the mortality and expense risk fee and the administrative charges. Total return calculations will reflect the effect of surrender charges that may be applicable to a particular period. The total return will then be calculated according to the following formula:

P (1 + T)^N = ERV

Where:

T       = The average annual total return net of subaccount recurring charges.

ERV = The ending redeemable value of the hypothetical account at the end of the period.

P       = A hypothetical initial payment of $1,000.

N      = The number of years in the period.

Other Performance Data

The Company may from time to time also disclose average annual total returns in a non-standard format in conjunction with the standard format described above. The non-standard format will be identical to the standard format except that the surrender charge percentage will be assumed to be 0%.

The Company may from time to time also disclose cumulative total returns in conjunction with the standard format described above. The cumulative returns will be calculated using the following formula except that the surrender charge percentage will be assumed to be 0%:

CTR = (ERV / P)-1

Where:

CTR  = The cumulative total return net of subaccount recurring charges for the period.

ERV = The ending redeemable value of the hypothetical investment at the end of the period.

P       = A hypothetical initial payment of $1,000.

All non-standard performance data will only be advertised if the standard performance data is also disclosed.

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Adjusted Historical Performance Data

From time to time, sales literature or advertisements may quote average annual total returns for periods prior to the date a particular subaccount commenced operations. Such performance information for the subaccounts will be calculated based on the performance of the various portfolios and the assumption that the subaccounts were in existence for the same periods as those indicated for the portfolios, with the level of policy charges that are currently in effect.

PUBLISHED RATINGS

The Company may from time to time publish in advertisements, sales literature and reports to owners, the ratings and other information assigned to it by one or more independent rating organizations such as A.M. Best Company, Standard & Poor’s Insurance Ratings Services, Moody’s Investors Service and Fitch Financial Ratings. The purpose of the ratings is to reflect the financial strength of the Company. The ratings should not be considered as bearing on the investment performance of assets held in the separate account or of the safety or riskiness of an investment in the separate account. 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. In addition, these ratings may be referred to in advertisements or sales literature or in reports to owners. These ratings are opinions of an operating insurance company’s financial capacity to meet the obligations of its insurance policies in accordance with their terms.

STATE REGULATION OF WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

The Company is subject to the laws of Ohio governing insurance companies and to regulation by the Ohio Department of Insurance. An annual statement in a prescribed form is filed with the Department of Insurance each year covering the operation of the Company for the preceding year and its financial condition as of the end of such year. Regulation by the Department of Insurance includes periodic examination to determine the Company’s contract liabilities and reserves so that the Department may determine the items are correct. The Company’s books and accounts are subject to review by the Department of Insurance at all times, and a full examination of its operations is conducted periodically by the National Association of Insurance Commissioners. In addition, the Company is subject to regulation under the insurance laws of other jurisdictions in which it may operate.

ADMINISTRATION

The Company performs administrative services for the policies. These services include issuance of the policies, maintenance of records concerning the policies, and certain valuation services.

RECORDS AND REPORTS

All records and accounts relating to the separate account will be maintained by the Company. As presently required by the 1940 Act, as amended, and regulations promulgated thereunder, the Company will mail to all owners at their last known address of record, at least annually, reports containing such information as may be required under that Act or by any other applicable law or regulation. Owners will also receive confirmation of each financial transaction and any other

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reports required by law or regulation. However, for certain routine transactions (for example, regular monthly premiums deducted from your checking account, or regular annuity payments the Company sends to you) you may only receive quarterly confirmations.

DISTRIBUTION OF THE POLICIES

We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (“TCI”), for the distribution and sale of the policies. We may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies (e.g., commissions payable to selling firms selling the Policies, as described below.)

TCI’s home office is located at 4600 S Syracuse St. Suite 1100 Denver, Colorado 80237-2719. TCI is an indirect, wholly owned subsidiary of AEGON USA. TCI is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and is a member of Financial Industry Regulatory Authority (“FINRA”). TCI is not a member of the Securities Investor Protection Corporation.

We currently offer the policies on a continuous basis. We anticipate continuing to offer the policies, but reserve the right to discontinue the offering. The policies are offered to the public through sales representatives of broker-dealers (“selling firms”) that have entered into selling agreements with us and with TCI. TCI compensates these selling firms for their services. Sales representatives with these selling firms are appointed as our insurance agents.

We and our affiliates provide paid-in capital to TCI and pay for TCI’s operating and other expenses, including overhead, legal and accounting fees. We also pay TCI an “override” payment based on the pricing of the product which becomes part of TCI’s assets. In addition, we pay commission to TCI for policy sales; these commissions are passed through to the selling firms with TCI not retaining any portion of the commissions. During fiscal year 2011, 2010 and 2009 the amounts paid to TCI in connection with all policies sold through the separate account were $2,148,806, $2,272,561 and $3,804,680, respectively.

We and/or TCI or another affiliate may pay certain selling firms additional cash amounts for: (1) “preferred product” treatment of the policies in their marketing programs, which may include marketing services and increased access to their sales representatives; (2) sales promotions relating to the policies; (3) costs associated with sales conferences and educational seminars for their sales representatives; and (4) other sales expenses of the selling firms. We and/or TCI may make bonus payments to certain selling firms based on aggregate sales or persistency standards. These additional payments are not offered to all selling firms, and the terms of any particular agreement governing the payments may vary among selling firms.

VOTING RIGHTS

To the extent required by law, the Company will vote the underlying fund portfolios’ shares held by the separate account at regular and special shareholder meetings of the underlying fund portfolios in accordance with instructions received from persons having voting interests in the portfolios, although none of the underlying fund portfolios hold regular annual shareholder meetings. If, however, the 1940 Act or any regulation thereunder should be amended or if the present interpretation thereof should change, and as a result the Company determines that it is permitted to vote the underlying fund portfolios shares in its own right, it may elect to do so.

23

Before the annuity commencement date, you hold the voting interest in the selected portfolios. The number of votes that you have the right to instruct will be calculated separately for each subaccount. The number of votes that you have the right to instruct for a particular subaccount will be determined by dividing your policy value in the subaccount by the net asset value per share of the corresponding portfolio in which the subaccount invests. Fractional shares will be counted.

After the annuity commencement date, the person receiving annuity payments has the voting interest, and the number of votes decreases as annuity payments are made and as the reserves for the policy decrease. The person’s number of votes will be determined by dividing the reserve for the policy allocated to the applicable subaccount by the net asset value per share of the corresponding portfolio. Fractional shares will be counted.

The number of votes that you or the person receiving income payments has the right to instruct will be determined as of the date established by the underlying fund portfolio for determining shareholders eligible to vote at the meeting of the underlying fund portfolio. The Company will solicit voting instructions by sending you, or other persons entitled to vote, requests for instructions prior to that meeting in accordance with procedures established by the underlying fund portfolio. Portfolio shares as to which no timely instructions are received, and shares held by the Company in which you, or other persons entitled to vote have no beneficial interest, will be voted in proportion to the voting instructions that are received with respect to all policies participating in the same subaccount.

Each person having a voting interest in a subaccount will receive proxy material, reports, and other materials relating to the appropriate portfolio.

OTHER PRODUCTS

The Company makes other variable annuity policies available that may also be funded through the separate account. These variable annuity policies may have different features, such as different investment choices or charges.

CUSTODY OF ASSETS

The Company holds assets of each of the subaccounts. The assets of each of the subaccounts are segregated and held separate and apart from the assets of the other subaccounts and from the Company’s general account assets. The Company maintains records of all purchases and redemptions of shares of the underlying fund portfolios held by each of the subaccounts. Additional protection for the assets of the separate account is afforded by the Company’s fidelity bond, presently in the amount of $5,000,000, covering the acts of officers and employees of the Company.

LEGAL MATTERS

Sutherland Asbill & Brennan LLP, of Washington D.C. has provided legal advice to the Company regarding to certain matters under the federal securities laws that relate to the policies.

24

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The financial statements of the Separate Account VA U, at December 31, 2011 and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Western Reserve Life Assurance Co. of Ohio at December 31, 2011 and 2010, and for each of the three years in the period ended December 31, 2011, appearing herein, have been audited by Ernst & Young LLP, Suite 3000, 801 Grand Avenue, Des Moines, Iowa 50309, Independent Registered Public Accounting Firm, as set forth in their respective reports thereon appearing elsewhere herein, and are included in reliance upon their reports given on their authority as experts in accounting and auditing.

OTHER INFORMATION

A registration statement has been filed with the SEC, under the Securities Act of 1933 as amended, with respect to the policies discussed in this SAI. Not all of the information set forth in the registration statement and the amendments and exhibits thereto has been included in the prospectus or this SAI. Statements contained in the prospectus and this SAI concerning the content of the policies 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.

FINANCIAL STATEMENTS

The values of your interest in the separate account will be affected solely by the investment results of the selected subaccount(s). Financial statements of certain subaccounts of Separate Account VA U, which are available for investment by WRL Freedom Premier^® III Variable Annuity policy owners, are contained herein. The statutory-basis financial statements and schedules of Western Reserve Life Assurance Co. of Ohio, which are included in this SAI, should be considered only as bearing on the ability of the Company to meet its obligations under the policies. They should not be considered as bearing on the investment performance of the assets held in the separate account.

25

APPENDIX

CONDENSED FINANCIAL INFORMATION

The following tables list the accumulation unit values and the number of accumulation units outstanding for the total separate account expenses listed therein (excluding any applicable fund facilitation fees) for each subaccount.

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.197129	$	1.199616		0
Subaccount Inception Date January 12, 2004		2010	$	1.124923	$	1.197129		0
		2009	$	0.919985	$	1.124923		0
		2008	$	1.195769	$	0.919985		221,256
		2007	$	1.150874	$	1.195769		222,480
		2006	$	1.077074	$	1.150874		223,710
		2005	$	1.047686	$	1.077074		224,948
		2004	$	1.000000	$	1.047686		0
TA Asset Allocation - Growth - Service Class		2011	$	1.188966	$	1.097686		0
Subaccount Inception Date January 12, 2004		2010	$	1.059340	$	1.188966		0
		2009	$	0.835330	$	1.059340		0
		2008	$	1.416539	$	0.835330		1,170
		2007	$	1.345767	$	1.416539		221,881
		2006	$	1.192441	$	1.345767		231,567
		2005	$	1.088240	$	1.192441		230,921
		2004	$	1.000000	$	1.088240		189,843
TA Asset Allocation - Moderate - Service Class		2011	$	1.234505	$	1.212106		3,358
Subaccount Inception Date January 12, 2004		2010	$	1.144970	$	1.234505		3,390
		2009	$	0.926794	$	1.144970		42,481
		2008	$	1.282832	$	0.926794		45,169
		2007	$	1.216483	$	1.282832		97,938
		2006	$	1.117290	$	1.216483		98,197
		2005	$	1.065294	$	1.117290		54,973
		2004	$	1.000000	$	1.065294		52,510
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.231734	$	1.178414		11,196
Subaccount Inception Date January 12, 2004		2010	$	1.119357	$	1.231734		11,303
		2009	$	0.894203	$	1.119357		73,862
		2008	$	1.361874	$	0.894203		74,620
		2007	$	1.293548	$	1.361874		69,211
		2006	$	1.163732	$	1.293548		69,288
		2005	$	1.083498	$	1.163732		69,370
		2004	$	1.000000	$	1.083498		142,308
TA International Moderate Growth - Service Class		2011	$	0.928429	$	0.840438		9,893
Subaccount Inception Date May1, 2006		2010	$	0.860268	$	0.928429		9,987
		2009	$	0.679492	$	0.860268		10,081
		2008	$	1.090028	$	0.679492		4,879
		2007	$	1.026410	$	1.090028		0
		2006	$	1.000000	$	1.026410		0
TA BlackRock Large Cap Value - Service Class		2011	$	1.166224	$	1.169776		0
Subaccount Inception Date January 12, 2004		2010	$	1.081516	$	1.166224		0
		2009	$	0.971541	$	1.081516		0
		2008	$	1.505275	$	0.971541		0
		2007	$	1.473739	$	1.505275		13,724
		2006	$	1.290803	$	1.473739		31,283
		2005	$	1.139257	$	1.290803		28,941
		2004	$	1.000000	$	1.139257		1,608

26

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.518102	$	1.396891		0
Subaccount Inception Date January 12, 2004		2010	$	1.344944	$	1.518102		0
		2009	$	1.032939	$	1.344944		0
		2008	$	1.835126	$	1.032939		0
		2007	$	2.013912	$	1.835126		11,143
		2006	$	1.449514	$	2.013912		52,020
		2005	$	1.308141	$	1.449514		24,961
		2004	$	1.000000	$	1.308141		59
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.967770	$	0.980096		0
Subaccount Inception Date January 12, 2004		2010	$	0.992719	$	0.967770		0
		2009	$	0.975597	$	0.992719		0
		2008	$	1.045224	$	0.975597		0
		2007	$	1.075322	$	1.045224		11,497
		2006	$	1.071874	$	1.075322		11,562
		2005	$	1.045464	$	1.071874		13,099
		2004	$	1.000000	$	1.045464		3,101
TA Janus Balanced - Service Class		2011	$	0.994274	$	0.868145		0
Subaccount Inception Date November 19, 2009		2010	$	0.985097	$	0.994274		0
		2009	$	0.986557	$	0.985097		0
TA Hanlon Balanced - Service Class		2011	$	0.963867	$	0.911464		0
Subaccount Inception Date November 19, 2009		2010	$	1.019905	$	0.963867		0
		2009	$	0.998145	$	1.019905		0
TA Hanlon Growth - Service Class		2011	$	0.992054	$	0.858399		0
Subaccount Inception Date November 19, 2009		2010	$	1.020574	$	0.992054		0
		2009	$	0.996383	$	1.020574		0
TA Hanlon Growth and Income - Service Class		2011	$	0.978988	$	0.886923		0
Subaccount Inception Date November 19, 2009		2010	$	1.021652	$	0.978988		0
		2009	$	0.997251	$	1.021652		0
TA Hanlon Income - Service Class		2011	$	0.982979	$	0.990534		0
Subaccount Inception Date November 19, 2009		2010	$	1.002928	$	0.982979		0
		2009	$	0.999942	$	1.002928		0
TA Jennison Growth - Initial Class		2011	$	1.045494	$	1.015629		0
Subaccount Inception Date April 29, 2010		2010	$	0.000000	$	1.045494		0
TA JPMorgan Core Bond - Service Class		2011	$	1.248565	$	1.310863		0
Subaccount Inception Date January 12, 2004		2010	$	1.181000	$	1.248565		0
		2009	$	1.102912	$	1.181000		0
		2008	$	1.070470	$	1.102912		0
		2007	$	1.025765	$	1.070470		0
		2006	$	1.011061	$	1.025765		0
		2005	$	1.011824	$	1.011061		0
		2004	$	1.000000	$	1.011824		0
TA JPMorgan Enhanced Index - Service Class		2011	$	1.079957	$	1.062286		0
Subaccount Inception Date January 12, 2004		2010	$	0.960504	$	1.079957		0
		2009	$	0.758725	$	0.960504		0
		2008	$	1.240601	$	0.758725		0
		2007	$	1.215139	$	1.240601		1,459
		2006	$	1.079630	$	1.215139		1,469
		2005	$	1.068598	$	1.079630		6,462
		2004	$	1.000000	$	1.068598		1,455

27

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.612569	$	1.433116		0
Subaccount Inception Date January 12, 2004		2010	$	1.217584	$	1.612569		0
		2009	$	0.911061	$	1.217584		0
		2008	$	1.579276	$	0.911061		0
		2007	$	1.314524	$	1.579276		8,298
		2006	$	1.280021	$	1.314524		11,162
		2005	$	1.127803	$	1.280021		9,359
		2004	$	1.000000	$	1.127803		4,280
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.147722	$	1.056328		0
Subaccount Inception Date January 12, 2004		2010	$	0.922505	$	1.147722		0
		2009	$	0.738706	$	0.922505		0
		2008	$	1.189197	$	0.738706		0
		2007	$	1.205695	$	1.189197		1,227
		2006	$	1.041089	$	1.205695		1,235
		2005	$	1.024427	$	1.041089		9,637
		2004	$	1.000000	$	1.024427		4,850
TA AEGON High Yield Bond - Service Class		2011	$	1.302643	$	1.333148		0
Subaccount Inception Date January 12, 2004		2010	$	1.186292	$	1.302643		0
		2009	$	0.825140	$	1.186292		0
		2008	$	1.130922	$	0.825140		0
		2007	$	1.135744	$	1.130922		0
		2006	$	1.048749	$	1.135744		0
		2005	$	1.055385	$	1.048749		0
		2004	$	1.000000	$	1.055385		0
TA MFS International Equity - Service Class		2011	$	0.882929	$	0.776043		0
Subaccount Inception Date May 1, 2007		2010	$	0.817640	$	0.882929		0
		2009	$	0.631608	$	0.817640		0
		2008	$	1.001011	$	0.631608		0
		2007	$	1.000000	$	1.001011		0
TA PIMCO Total Return - Service Class		2011	$	1.231056	$	1.276905		8,043
Subaccount Inception Date January 12, 2004		2010	$	1.175967	$	1.231056		8,119
		2009	$	1.037788	$	1.175967		8,196
		2008	$	1.093790	$	1.037788		4,656
		2007	$	1.027020	$	1.093790		0
		2006	$	1.009682	$	1.027020		0
		2005	$	1.010797	$	1.009682		0
		2004	$	1.000000	$	1.010797		0
TA T. Rowe Price Small Cap - Service Class		2011	$	1.345227	$	1.336899		0
Subaccount Inception Date January 12, 2004		2010	$	1.025008	$	1.345227		0
		2009	$	0.756911	$	1.025008		0
		2008	$	1.215900	$	0.756911		0
		2007	$	1.136762	$	1.215900		9,507
		2006	$	1.123612	$	1.136762		9,559
		2005	$	1.039589	$	1.123612		24,628
		2004	$	1.000000	$	1.039589		3,788
TA Third Avenue Value - Service Class		2011	$	1.297670	$	1.086268		0
Subaccount Inception Date January 12, 2004		2010	$	1.150983	$	1.297670		0
		2009	$	0.874026	$	1.150983		33,907
		2008	$	1.520744	$	0.874026		85,848
		2007	$	1.539093	$	1.520744		119,875
		2006	$	1.357762	$	1.539093		64,604
		2005	$	1.170655	$	1.357762		40,633
		2004	$	1.000000	$	1.170655		6,604

28

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Efficient Markets - Service Class		2011	$	1.314939	$	1.259112		0
Subaccount Inception Date November 10, 2008		2010	$	1.195259	$	1.314939		0
		2009	$	1.035918	$	1.195259		0
		2008	$	1.000000	$	1.035918		0
TA Multi-Managed Balanced - Service Class		2011	$	1.317954	$	1.338683		0
Subaccount Inception Date January 12, 2004		2010	$	1.086724	$	1.317954		0
		2009	$	0.881468	$	1.086724		0
		2008	$	1.335547	$	0.881468		0
		2007	$	1.203448	$	1.335547		2,490
		2006	$	1.130448	$	1.203448		2,413
		2005	$	1.071240	$	1.130448		1,928
		2004	$	1.000000	$	1.071240		1,932
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.147895	$	1.142493		0
Subaccount Inception Date January 12, 2004		2010	$	1.074255	$	1.147895		0
		2009	$	0.836617	$	1.074255		0
		2008	$	1.356590	$	0.836617		0
		2007	$	1.171638	$	1.356590		2,203
		2006	$	1.081561	$	1.171638		2,218
		2005	$	1.066963	$	1.081561		2,253
		2004	$	1.000000	$	1.066963		2,195
TA WMC Diversified Growth - Service Class		2011	$	1.178999	$	1.108874		0
Subaccount Inception Date January 12, 2004		2010	$	1.025127	$	1.178999		0
		2009	$	0.812400	$	1.025127		0
		2008	$	1.541951	$	0.812400		0
		2007	$	1.357490	$	1.541951		965
		2006	$	1.279356	$	1.357490		49,064
		2005	$	1.123845	$	1.279356		5,704
		2004	$	1.000000	$	1.123845		989
TA WMC Diversified Equity - Service Class		2011	$	1.108038	$	1.006626		0
Subaccount Inception Date January 12, 2004		2010	$	0.971153	$	1.108038		0
		2009	$	0.775966	$	0.971153		12,743
		2008	$	1.410905	$	0.775966		19,142
		2007	$	1.253606	$	1.410905		33,128
		2006	$	1.081037	$	1.253606		14,660
		2005	$	1.029760	$	1.081037		14,741
		2004	$	1.000000	$	1.029760		0
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.004866		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988136		0
TA AEGON Money Market - Service Class		2011	$	0.996872	$	0.975988		40,265
Subaccount Inception Date January 12, 2004		2010	$	1.018251	$	0.996872		40,647
		2009	$	1.040021	$	1.018251		60,825
		2008	$	1.039945	$	1.040021		76,717
		2007	$	1.014082	$	1.039945		0
		2006	$	0.991496	$	1.014082		1,458
		2005	$	0.986822	$	0.991496		1,377
		2004	$	1.000000	$	0.986822		0

29

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.790725	$	1.702992		0
Subaccount Inception Date May 1, 2004		2010	$	1.406519	$	1.790725		0
		2009	$	1.005424	$	1.406519		35,471
		2008	$	1.742427	$	1.005424		94,944
		2007	$	1.431040	$	1.742427		115,558
		2006	$	1.240690	$	1.431040		54,834
		2005	$	1.118916	$	1.240690		27,593
		2004	$	1.000000	$	1.118916		0
TA AEGON U.S. Government Securities - Service Class		2011	$	1.139760	$	1.197133		4,661
Subaccount Inception Date January 12, 2004		2010	$	1.117090	$	1.139760		4,705
		2009	$	1.095137	$	1.117090		4,750
		2008	$	1.041517	$	1.095137		4,793
		2007	$	1.005871	$	1.041517		0
		2006	$	0.996944	$	1.005871		0
		2005	$	0.998533	$	0.996944		0
		2004	$	1.000000	$	0.998533		0
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.068541	$	1.079305		3,843
Subaccount Inception Date November 19, 2009		2010	$	0.997500	$	1.068541		3,879
		2009	$	0.999942	$	0.997500		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.006651	$	0.999957		0
Subaccount Inception Date May 1, 2008		2010	$	0.928956	$	1.006651		0
		2009	$	0.814316	$	0.928956		0
		2008	$	1.000000	$	0.814316		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.958745	$	0.927966		9,488
Subaccount Inception Date May 1, 2008		2010	$	0.866647	$	0.958745		9,578
		2009	$	0.718684	$	0.866647		5,169
		2008	$	1.000000	$	0.718684		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.146248	$	1.078183		0
Subaccount Inception Date November 19, 2009		2010	$	1.023437	$	1.146248		0
		2009	$	0.999942	$	1.023437		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.476301	$	1.345307		0
Subaccount Inception Date January 12, 2004		2010	$	1.128928	$	1.476301		0
		2009	$	0.720204	$	1.128928		0
		2008	$	1.373698	$	0.720204		0
		2007	$	1.148073	$	1.373698		1,953
		2006	$	1.070067	$	1.148073		1,897
		2005	$	1.018533	$	1.070067		1,514
		2004	$	1.000000	$	1.018533		1,519
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.139760	$	1.197133		0
Subaccount Inception Date January 12, 2004		2010	$	1.117090	$	1.139760		0
		2009	$	1.095137	$	1.117090		29,895
		2008	$	1.041517	$	1.095137		36,715
		2007	$	1.005871	$	1.041517		0
		2006	$	0.996944	$	1.005871		0
		2005	$	1.000000	$	0.996944		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.326218	$	1.256225		0
Subaccount Inception Date November 10, 2008		2010	$	1.230654	$	1.326218		0
		2009	$	1.012092	$	1.230654		0
		2008	$	1.000000	$	1.012092		0

30

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Fidelity® VIP Index 500 Portfolio – Service Class 2		2011	$	1.084376	$	1.080544		0
Subaccount Inception Date January 12, 2004		2010	$	0.965473	$	1.084376		0
		2009	$	0.780861	$	0.965473		0
		2008	$	1.269439	$	0.780861		0
		2007	$	1.232995	$	1.269439		1,163
		2006	$	1.091009	$	1.232995		0
		2005	$	1.065846	$	1.091009		0
		2004	$	1.000000	$	1.065846		9,207
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.355619	$	1.303046		3,090
Subaccount Inception Date November 10, 2008		2010	$	1.257960	$	1.355619		3,119
		2009	$	0.989426	$	1.257960		0
		2008	$	1.000000	$	0.989426		0
ProFund VP Asia 30		2011	$	0.944944	$	0.675328		0
Subaccount Inception Date September 6, 2007		2010	$	0.847396	$	0.944944		0
		2009	$	0.561360	$	0.847396		0
		2008	$	1.166180	$	0.561360		8,028
		2007	$	1.000000	$	1.166180		0
ProFund VP Basic Materials		2011	$	1.064896	$	0.874124		0
Subaccount Inception Date September 6, 2007		2010	$	0.838715	$	1.064896		0
		2009	$	0.527647	$	0.838715		0
		2008	$	1.109701	$	0.527647		0
		2007	$	1.000000	$	1.109701		0
ProFund VP Bull		2011	$	0.780583	$	0.764191		0
Subaccount Inception Date June 21, 2007		2010	$	0.708272	$	0.780583		0
		2009	$	0.581850	$	0.708272		0
		2008	$	0.953648	$	0.581850		0
		2007	$	1.000000	$	0.953648		0
ProFund VP Consumer Services		2011	$	0.933413	$	0.964042		0
Subaccount Inception Date September 6, 2007		2010	$	0.785465	$	0.933413		0
		2009	$	0.613396	$	0.785465		0
		2008	$	0.913248	$	0.613396		0
		2007	$	1.000000	$	0.913248		0
ProFund VP Emerging Markets		2011	$	0.955070	$	0.750756		0
Subaccount Inception Date September 6, 2007		2010	$	0.888770	$	0.955070		0
		2009	$	0.559189	$	0.888770		0
		2008	$	1.144697	$	0.559189		0
		2007	$	1.000000	$	1.144697		0
ProFund VP Europe 30		2011	$	0.732383	$	0.653280		0
Subaccount Inception Date September 6, 2007		2010	$	0.728925	$	0.732383		0
		2009	$	0.562841	$	0.728925		0
		2008	$	1.026865	$	0.562841		0
		2007	$	1.000000	$	1.026865		0
ProFund VP Falling US Dollar		2011	$	0.945525	$	0.900461		0
Subaccount Inception Date September 6, 2007		2010	$	0.991504	$	0.945525		0
		2009	$	0.980322	$	0.991504		0
		2008	$	1.055447	$	0.980322		0
		2007	$	1.000000	$	1.055447		0
ProFund VP Financials		2011	$	0.510236	$	0.430411		0
Subaccount Inception Date September 6, 2007		2010	$	0.469849	$	0.510236		0
		2009	$	0.417323	$	0.469849		0
		2008	$	0.862062	$	0.417323		0
		2007	$	1.000000	$	0.862062		0

31

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP International		2011	$	0.706370	$	0.592352		0
Subaccount Inception Date September 6, 2007		2010	$	0.669316	$	0.706370		0
		2009	$	0.548531	$	0.669316		0
		2008	$	1.007921	$	0.548531		0
		2007	$	1.000000	$	1.007921		0
ProFund VP Japan		2011	$	0.521017	$	0.415501		0
Subaccount Inception Date September 6, 2007		2010	$	0.569417	$	0.521017		0
		2009	$	0.527204	$	0.569417		0
		2008	$	0.910459	$	0.527204		0
		2007	$	1.000000	$	0.910459		0
ProFund VP Mid-Cap		2011	$	0.927392	$	0.869927		0
Subaccount Inception Date September 6, 2007		2010	$	0.763677	$	0.927392		0
		2009	$	0.587088	$	0.763677		0
		2008	$	0.973154	$	0.587088		0
		2007	$	1.000000	$	0.973154		0
ProFund VP Money Market		2011	$	0.953466	$	0.933636		0
Subaccount Inception Date June 21, 2007		2010	$	0.973768	$	0.953466		0
		2009	$	0.994394	$	0.973768		0
		2008	$	1.007387	$	0.994394		0
		2007	$	1.000000	$	1.007387		0
ProFund VP Oil & Gas		2011	$	0.875668	$	0.876529		0
Subaccount Inception Date September 6, 2007		2010	$	0.759572	$	0.875668		0
		2009	$	0.671793	$	0.759572		0
		2008	$	1.088496	$	0.671793		0
		2007	$	1.000000	$	1.088496		0
ProFund VP NASDAQ-100		2011	$	1.026815	$	1.019881		0
Subaccount Inception Date June 21, 2007		2010	$	0.887035	$	1.026815		0
		2009	$	0.596082	$	0.887035		0
		2008	$	1.058754	$	0.596082		0
		2007	$	1.000000	$	1.058754		0
ProFund VP Pharmaceuticals		2011	$	0.884437	$	1.005543		0
Subaccount Inception Date September 6, 2007		2010	$	0.899171	$	0.884437		0
		2009	$	0.785740	$	0.899171		0
		2008	$	0.997231	$	0.785740		0
		2007	$	1.000000	$	0.997231		0
ProFund VP Precious Metals		2011	$	1.373066	$	1.085918		0
Subaccount Inception Date September 6, 2007		2010	$	1.055125	$	1.373066		0
		2009	$	0.796458	$	1.055125		0
		2008	$	1.175140	$	0.796458		0
		2007	$	1.000000	$	1.175140		0
ProFund VP Short Emerging Markets		2011	$	0.426711	$	0.462286		0
Subaccount Inception Date September 6, 2007		2010	$	0.534313	$	0.426711		0
		2009	$	1.064291	$	0.534313		0
		2008	$	0.822242	$	1.064291		0
		2007	$	1.000000	$	0.822242		0
ProFund VP Short International		2011	$	0.756382	$	0.753851		0
Subaccount Inception Date September 6, 2007		2010	$	0.905776	$	0.756382		0
		2009	$	1.327147	$	0.905776		0
		2008	$	0.980805	$	1.327147		0
		2007	$	1.000000	$	0.980805		0

32

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.15%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Short NASDAQ-100		2011	$	0.631102	$	0.553120		0
Subaccount Inception Date September 6, 2007		2010	$	0.817971	$	0.631102		0
		2009	$	1.408137	$	0.817971		0
		2008	$	0.970869	$	1.408137		0
		2007	$	1.000000	$	0.970869		0
ProFund VP Short Small-Cap		2011	$	0.603410	$	0.537044		0
Subaccount Inception Date June 21, 2007		2010	$	0.867489	$	0.603410		0
		2009	$	1.310365	$	0.867489		0
		2008	$	1.078809	$	1.310365		0
		2007	$	1.000000	$	1.078809		0
ProFund VP Small-Cap		2011	$	0.860555	$	0.794826		0
Subaccount Inception Date June 21, 2007		2010	$	0.704425	$	0.860555		0
		2009	$	0.570771	$	0.704425		0
		2008	$	0.902669	$	0.570771		0
		2007	$	1.000000	$	0.902669		0
ProFund VP Small-Cap Value		2011	$	0.873672	$	0.820218		0
Subaccount Inception Date September 6, 2007		2010	$	0.730891	$	0.873672		0
		2009	$	0.620102	$	0.730891		0
		2008	$	0.913929	$	0.620102		0
		2007	$	1.000000	$	0.913929		0
ProFund VP Telecommunications		2011	$	0.726988	$	0.725007		0
Subaccount Inception Date September 6, 2007		2010	$	0.641912	$	0.726988		0
		2009	$	0.610986	$	0.641912		0
		2008	$	0.951773	$	0.610986		0
		2007	$	1.000000	$	0.951773		0
ProFund VP UltraSmall-Cap		2011	$	0.583749	$	0.463844		0
Subaccount Inception Date September 6, 2007		2010	$	0.401692	$	0.583749		0
		2009	$	0.292726	$	0.401692		0
		2008	$	0.884450	$	0.292726		0
		2007	$	1.000000	$	0.884450		0
ProFund VP U.S. Government Plus		2011	$	1.125166	$	1.580941		0
Subaccount Inception Date September 6, 2007		2010	$	1.043758	$	1.125166		0
		2009	$	1.582372	$	1.043758		0
		2008	$	1.079358	$	1.582372		0
		2007	$	1.000000	$	1.079358		0
ProFund VP Utilities		2011	$	0.817614	$	0.940586		0
Subaccount Inception Date September 6, 2007		2010	$	0.788283	$	0.817614		0
		2009	$	0.727172	$	0.788283		0
		2008	$	1.071923	$	0.727172		0
		2007	$	1.000000	$	1.071923		0
Access VP High Yield FundSM		2011	$	1.251501	$	1.258849		0
Subaccount Inception Date September 6, 2007		2010	$	1.098521	$	1.251501		0
		2009	$	0.959798	$	1.098521		0
		2008	$	1.028245	$	0.959798		0
		2007	$	1.000000	$	1.028245		0

33

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.05%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.205351	$	1.209043		0
Subaccount Inception Date January 12, 2004		2010	$	1.131540	$	1.205351		0
		2009	$	0.924489	$	1.131540		0
		2008	$	1.200429	$	0.924489		54,326
		2007	$	1.154214	$	1.200429		112,801
		2006	$	1.079149	$	1.154214		121,477
		2005	$	1.048678	$	1.079149		147,027
		2004	$	1.000000	$	1.048678		71,030
TA Asset Allocation - Growth - Service Class		2011	$	1.197122	$	1.106300		0
Subaccount Inception Date January 12, 2004		2010	$	1.065562	$	1.197122		0
		2009	$	0.839419	$	1.065562		0
		2008	$	1.422063	$	0.839419		0
		2007	$	1.349685	$	1.422063		0
		2006	$	1.194739	$	1.349685		0
		2005	$	1.089276	$	1.194739		0
		2004	$	1.000000	$	1.089276		0
TA Asset Allocation - Moderate - Service Class		2011	$	1.242969	$	1.221615		0
Subaccount Inception Date January 12, 2004		2010	$	1.151689	$	1.242969		0
		2009	$	0.931312	$	1.151689		0
		2008	$	1.287820	$	0.931312		0
		2007	$	1.220004	$	1.287820		5,327
		2006	$	1.119423	$	1.220004		25,862
		2005	$	1.066293	$	1.119423		24,824
		2004	$	1.000000	$	1.066293		8,737
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.240171	$	1.187651		0
Subaccount Inception Date January 12, 2004		2010	$	1.125926	$	1.240171		0
		2009	$	0.898567	$	1.125926		0
		2008	$	1.367178	$	0.898567		0
		2007	$	1.297300	$	1.367178		0
		2006	$	1.165965	$	1.297300		0
		2005	$	1.084524	$	1.165965		0
		2004	$	1.000000	$	1.084524		0
TA International Moderate Growth - Service Class		2011	$	0.932693	$	0.845113		0
Subaccount Inception Date May 1, 2006		2010	$	0.863371	$	0.932693		0
		2009	$	0.681270	$	0.863371		0
		2008	$	1.091801	$	0.681270		0
		2007	$	1.027079	$	1.091801		0
		2006	$	1.000000	$	1.027079		0
TA BlackRock Large Cap Value - Service Class		2011	$	1.174226	$	1.178959		0
Subaccount Inception Date January 12, 2004		2010	$	1.087864	$	1.174226		0
		2009	$	0.976283	$	1.087864		2,718
		2008	$	1.511143	$	0.976283		1,893
		2007	$	1.478017	$	1.511143		1,168
		2006	$	1.293290	$	1.478017		513
		2005	$	1.140335	$	1.293290		0
		2004	$	1.000000	$	1.140335		0
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.528478	$	1.407820		0
Subaccount Inception Date January 12, 2004		2010	$	1.352815	$	1.528478		126
		2009	$	1.037975	$	1.352815		126
		2008	$	1.842244	$	1.037975		187
		2007	$	2.019738	$	1.842244		685
		2006	$	1.452288	$	2.019738		693
		2005	$	1.309380	$	1.452288		0
		2004	$	1.000000	$	1.309380		0

34

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.05%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.974380	$	0.987752		0
Subaccount Inception Date January 12, 2004		2010	$	0.998525	$	0.974380		0
		2009	$	0.980341	$	0.998525		0
		2008	$	1.049280	$	0.980341		1,925
		2007	$	1.078434	$	1.049280		11,955
		2006	$	1.073936	$	1.078434		12,627
		2005	$	1.046457	$	1.073936		10,579
		2004	$	1.000000	$	1.046457		0
TA Janus Balanced - Service Class		2011	$	0.995378	$	0.869964		0
Subaccount Inception Date November 19, 2009		2010	$	0.985214	$	0.995378		0
		2009	$	0.986560	$	0.985214		0
TA Hanlon Balanced - Service Class		2011	$	0.964928	$	0.913367		0
Subaccount Inception Date November 19, 2009		2010	$	1.020020	$	0.964928		0
		2009	$	0.998147	$	1.020020		0
TA Hanlon Growth - Service Class		2011	$	0.993124	$	0.860159		0
Subaccount Inception Date November 19, 2009		2010	$	1.020687	$	0.993124		0
		2009	$	0.996386	$	1.020687		0
TA Hanlon Growth and Income - Service Class		2011	$	0.980047	$	0.888751		0
Subaccount Inception Date November 19, 2009		2010	$	1.021771	$	0.980047		0
		2009	$	0.997254	$	1.021771		0
TA Hanlon Income - Service Class		2011	$	0.984041	$	0.992558		0
Subaccount Inception Date November 19, 2009		2010	$	1.003042	$	0.984041		0
		2009	$	0.999944	$	1.003042		0
TA Jennison Growth - Service Class		2011	$	1.046192	$	1.017306		0
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.046192		2,459
TA JPMorgan Core Bond - Service Class		2011	$	1.257147	$	1.321166		0
Subaccount Inception Date January 12, 2004		2010	$	1.187949	$	1.257147		0
		2009	$	1.108317	$	1.187949		0
		2008	$	1.074666	$	1.108317		0
		2007	$	1.028770	$	1.074666		5,320
		2006	$	1.013025	$	1.028770		5,903
		2005	$	1.012796	$	1.013025		6,027
		2004	$	1.000000	$	1.012796		27,931
TA JPMorgan Enhanced Index - Service Class		2011	$	1.087343	$	1.070596		0
Subaccount Inception Date January 12, 2004		2010	$	0.966115	$	1.087343		1,208
		2009	$	0.762415	$	0.966115		1,211
		2008	$	1.245403	$	0.762415		1,791
		2007	$	1.218647	$	1.245403		1,522
		2006	$	1.081699	$	1.218647		0
		2005	$	1.069610	$	1.081699		0
		2004	$	1.000000	$	1.069610		0
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.155579	$	1.064594		0
Subaccount Inception Date January 12, 2004		2010	$	0.927916	$	1.155579		0
		2009	$	0.742314	$	0.927916		0
		2008	$	1.193815	$	0.742314		0
		2007	$	1.209182	$	1.193815		0
		2006	$	1.043099	$	1.209182		0
		2005	$	1.025396	$	1.043099		0
		2004	$	1.000000	$	1.025396		0

35

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.05%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.623635	$	1.444360		0
Subaccount Inception Date January 12, 2004		2010	$	1.224746	$	1.623635		0
		2009	$	0.915518	$	1.224746		0
		2008	$	1.585400	$	0.915518		0
		2007	$	1.318356	$	1.585440		0
		2006	$	1.282498	$	1.318356		0
		2005	$	1.128869	$	1.282498		0
		2004	$	1.000000	$	1.128869		0
TA AEGON High Yield Bond - Service Class		2011	$	1.311560	$	1.343588		0
Subaccount Inception Date January 12, 2004		2010	$	1.193235	$	1.311560		0
		2009	$	0.829163	$	1.193235		0
		2008	$	1.135311	$	0.829163		0
		2007	$	1.139030	$	1.135311		7,385
		2006	$	1.050770	$	1.139030		13,943
		2005	$	1.056377	$	1.050770		14,120
		2004	$	1.000000	$	1.056377		2,120
TA MFS International Equity - Service Class		2011	$	0.886119	$	0.779618		0
Subaccount Inception Date May 1, 2007		2010	$	0.819790	$	0.886119		3,049
		2009	$	0.632646	$	0.819790		3,056
		2008	$	1.001680	$	0.632646		4,520
		2007	$	1.000000	$	1.001680		3,860
TA PIMCO Total Return - Service Class		2011	$	1.239507	$	1.286932		0
Subaccount Inception Date January 12, 2004		2010	$	1.182878	$	1.239507		2,036
		2009	$	1.042864	$	1.182878		2,040
		2008	$	1.098060	$	1.042864		3,018
		2007	$	1.030016	$	1.098060		1,827
		2006	$	1.011643	$	1.030016		0
		2005	$	1.011757	$	1.011643		0
		2004	$	1.000000	$	1.011757		0
TA T. Rowe Price Small Cap - Service Class		2011	$	1.354376	$	1.347307		0
Subaccount Inception Date January 12, 2004		2010	$	1.030967	$	1.354376		1,240
		2009	$	0.760570	$	1.030967		1,242
		2008	$	1.220582	$	0.760570		1,838
		2007	$	1.140025	$	1.220582		1,558
		2006	$	1.125749	$	1.140025		0
		2005	$	1.040562	$	1.125749		0
		2004	$	1.000000	$	1.040562		0
TA Third Avenue Value - Service Class		2011	$	1.306575	$	1.094783		0
Subaccount Inception Date January 12, 2004		2010	$	1.157743	$	1.306575		973
		2009	$	0.878293	$	1.157743		3,668
		2008	$	1.526673	$	0.878293		4,996
		2007	$	1.543579	$	1.526673		11,993
		2006	$	1.360393	$	1.543579		21,487
		2005	$	1.171772	$	1.360393		19,876
		2004	$	1.000000	$	1.171772		5,211
TA Efficient Markets - Service Class		2011	$	1.317672	$	1.262959		0
Subaccount Inception Date November 10, 2008		2010	$	1.196572	$	1.317672		0
		2009	$	1.036056	$	1.196572		0
		2008	$	1.000000	$	1.036056		0

36

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.05%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Multi-Managed Balanced - Service Class		2011	$	1.327020	$	1.349208		0
Subaccount Inception Date January 12, 2004		2010	$	1.093131	$	1.327020		0
		2009	$	0.885782	$	1.093131		0
		2008	$	1.340760	$	0.885782		1,944
		2007	$	1.206946	$	1.340760		9,134
		2006	$	1.132620	$	1.206946		9,894
		2005	$	1.072252	$	1.132620		10,342
		2004	$	1.000000	$	1.072252		0
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.155729	$	1.151426		0
Subaccount Inception Date January 12, 2004		2010	$	1.080539	$	1.155729		0
		2009	$	0.840699	$	1.080539		0
		2008	$	1.361894	$	0.840699		0
		2007	$	1.175062	$	1.361894		0
		2006	$	1.083661	$	1.175062		0
		2005	$	1.067988	$	1.083661		0
		2004	$	1.000000	$	1.067988		0
TA WMC Diversified Equity - Service Class		2011	$	1.115641	$	1.014526		0
Subaccount Inception Date January 12, 2004		2010	$	0.976856	$	1.115641		193
		2009	$	0.779745	$	0.976856		194
		2008	$	1.416384	$	0.779745		210
		2007	$	1.257235	$	1.416384		0
		2006	$	1.083118	$	1.257235		0
		2005	$	1.030733	$	1.083118		0
		2004	$	1.000000	$	1.030733		0
TA WMC Diversified Growth - Service Class		2011	$	1.187100	$	1.117585		0
Subaccount Inception Date January 12, 2004		2010	$	1.031162	$	1.187100		268
		2009	$	0.816389	$	1.031162		269
		2008	$	1.547984	$	0.816389		292
		2007	$	1.361456	$	1.547984		6,715
		2006	$	1.281830	$	1.361456		19,283
		2005	$	1.124911	$	1.281830		19,702
		2004	$	1.000000	$	1.124911		5,404
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.004924		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988192		0
TA AEGON Money Market - Service Class		2011	$	1.003692	$	0.983628		0
Subaccount Inception Date January 12, 2004		2010	$	1.024222	$	1.003692		0
		2009	$	1.045089	$	1.024222		10,150
		2008	$	1.043986	$	1.045089		10,179
		2007	$	1.017024	$	1.043986		4,080
		2006	$	0.993403	$	1.017024		0
		2005	$	0.987757	$	0.993403		426
		2004	$	1.000000	$	0.987757		0
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.802444	$	1.715815		0
Subaccount Inception Date May 1, 2004		2010	$	1.414341	$	1.802444		0
		2009	$	1.010034	$	1.414341		0
		2008	$	1.748688	$	1.010034		0
		2007	$	1.434761	$	1.748688		0
		2006	$	1.242702	$	1.434761		0
		2005	$	1.119635	$	1.242702		0
		2004	$	1.000000	$	1.119635		0

37

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.05%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA AEGON U.S. Government Securities - Service Class		2011	$	1.147556	$	1.206498		0
Subaccount Inception Date January 12, 2004		2010	$	1.123622	$	1.147556		0
		2009	$	1.100461	$	1.123622		0
		2008	$	1.045558	$	1.100461		0
		2007	$	1.008786	$	1.045558		0
		2006	$	0.998859	$	1.008786		0
		2005	$	0.999483	$	0.998859		0
		2004	$	1.000000	$	0.999483		0
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.069707	$	1.081544		0
Subaccount Inception Date November 19, 2009		2010	$	0.997612	$	1.069707		0
		2009	$	0.999944	$	0.997612		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.009293	$	1.003566		0
Subaccount Inception Date May 1, 2008		2010	$	0.930482	$	1.009293		0
		2009	$	0.814860	$	0.930482		0
		2008	$	1.000000	$	0.814860		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.961242	$	0.931286		0
Subaccount Inception Date May 1, 2008		2010	$	0.868056	$	0.961242		0
		2009	$	0.719152	$	0.868056		0
		2008	$	1.000000	$	0.719152		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.147503	$	1.080415		0
Subaccount Inception Date November 19, 2009		2010	$	1.023555	$	1.147503		0
		2009	$	0.999944	$	1.023555		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.486420	$	1.355848		0
Subaccount Inception Date January 12, 2004		2010	$	1.135553	$	1.486420		1227
		2009	$	0.723723	$	1.135553		1,230
		2008	$	1.379060	$	0.723723		1,779
		2007	$	1.151419	$	1.379060		3,557
		2006	$	1.072137	$	1.151419		2,393
		2005	$	1.019505	$	1.072137		0
		2004	$	1.000000	$	1.019505		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.328998	$	1.260087		0
Subaccount Inception Date November 10, 2008		2010	$	1.232022	$	1.328998		0
		2009	$	1.012228	$	1.232022		0
		2008	$	1.000000	$	1.012228		0
Fidelity® VIP Index 500 Portfolio - Service Class 2		2011	$	1.091833	$	1.089034		0
Subaccount Inception Date January 12, 2004		2010	$	0.971156	$	1.091833		0
		2009	$	0.784686	$	0.971156		0
		2008	$	1.274399	$	0.784686		0
		2007	$	1.236598	$	1.274399		2,314
		2006	$	1.093117	$	1.236598		2,255
		2005	$	1.066866	$	1.093117		0
		2004	$	1.000000	$	1.066866		0
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.358449	$	1.307037		0
Subaccount Inception Date November 10, 2008		2010	$	1.259368	$	1.358449		0
		2009	$	0.989565	$	1.259368		0
		2008	$	1.000000	$	0.989565		0
ProFund VP Asia 30		2011	$	0.948034	$	0.678210		0
Subaccount Inception Date September 6, 2007		2010	$	0.849336	$	0.948034		0
		2009	$	0.562093	$	0.849336		0
		2008	$	1.166547	$	0.562093		0
		2007	$	1.000000	$	1.166547		0

38

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.05%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Basic Materials		2011	$	1.068371	$	0.877837		0
Subaccount Inception Date September 6, 2007		2010	$	0.840623	$	1.068371		0
		2009	$	0.528323	$	0.840623		0
		2008	$	1.110045	$	0.528323		0
		2007	$	1.000000	$	1.110045		0
ProFund VP Bull		2011	$	0.783298	$	0.767599		0
Subaccount Inception Date June 21, 2007		2010	$	0.710038	$	0.783298		0
		2009	$	0.582730	$	0.710038		0
		2008	$	0.954143	$	0.582730		0
		2007	$	1.000000	$	0.954143		0
ProFund VP Consumer Services		2011	$	0.936465	$	0.968142		0
Subaccount Inception Date September 6, 2007		2010	$	0.787258	$	0.936465		0
		2009	$	0.614198	$	0.787258		0
		2008	$	0.913537	$	0.614198		0
		2007	$	1.000000	$	0.913537		0
ProFund VP Emerging Markets		2011	$	0.958226	$	0.753977		0
Subaccount Inception Date September 6, 2007		2010	$	0.890829	$	0.958226		0
		2009	$	0.559922	$	0.890829		0
		2008	$	1.145059	$	0.559922		0
		2007	$	1.000000	$	1.145059		0
ProFund VP Europe 30		2011	$	0.734773	$	0.656048		0
Subaccount Inception Date September 6, 2007		2010	$	0.730594	$	0.734773		0
		2009	$	0.563570	$	0.730594		0
		2008	$	1.027196	$	0.563570		0
		2007	$	1.000000	$	1.027196		0
ProFund VP Falling US Dollar		2011	$	0.948612	$	0.904282		0
Subaccount Inception Date September 6, 2007		2010	$	0.993768	$	0.948612		0
		2009	$	0.981596	$	0.993768		0
		2008	$	1.055784	$	0.981596		0
		2007	$	1.000000	$	1.055784		0
ProFund VP Financials		2011	$	0.511906	$	0.432249		0
Subaccount Inception Date September 6, 2007		2010	$	0.470920	$	0.511906		0
		2009	$	0.417866	$	0.470920		0
		2008	$	0.862340	$	0.417866		0
		2007	$	1.000000	$	0.862340		0
ProFund VP International		2011	$	0.708696	$	0.594892		0
Subaccount Inception Date September 6, 2007		2010	$	0.670861	$	0.708696		55
		2009	$	0.549246	$	0.670861		56
		2008	$	1.008237	$	0.549246		545
		2007	$	1.000000	$	1.008237		903
ProFund VP Japan		2011	$	0.522717	$	0.417263		0
Subaccount Inception Date September 6, 2007		2010	$	0.570723	$	0.522717		0
		2009	$	0.527891	$	0.570723		0
		2008	$	0.910752	$	0.527891		0
		2007	$	1.000000	$	0.910752		0
ProFund VP Mid-Cap		2011	$	0.930398	$	0.873594		0
Subaccount Inception Date September 6, 2007		2010	$	0.765394	$	0.930398		0
		2009	$	0.587839	$	0.765394		0
		2008	$	0.973460	$	0.587839		0
		2007	$	1.000000	$	0.973460		0

39

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.05%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Money Market		2011	$	0.956793	$	0.937806		0
Subaccount Inception Date June 21, 2007		2010	$	0.976214	$	0.956793		0
		2009	$	0.995902	$	0.976214		0
		2008	$	1.007910	$	0.995902		0
		2007	$	1.000000	$	1.007910		0
ProFund VP Oil & Gas		2011	$	0.878539	$	0.880264		0
Subaccount Inception Date September 6, 2007		2010	$	0.761314	$	0.878539		0
		2009	$	0.672670	$	0.761314		0
		2008	$	1.088837	$	0.672670		0
		2007	$	1.000000	$	1.088837		0
ProFund VP NASDAQ-100		2011	$	1.030362	$	1.024392		0
Subaccount Inception Date June 21, 2007		2010	$	0.889228	$	1.030362		0
		2009	$	0.596977	$	0.889228		0
		2008	$	1.059304	$	0.596977		0
		2007	$	1.000000	$	1.059304		0
ProFund VP Pharmaceuticals		2011	$	0.887315	$	1.009806		0
Subaccount Inception Date September 6, 2007		2010	$	0.901216	$	0.887315		36
		2009	$	0.786757	$	0.901216		36
		2008	$	0.997549	$	0.786757		79
		2007	$	1.000000	$	0.997549		0
ProFund VP Precious Metals		2011	$	1.377554	$	1.090543		0
Subaccount Inception Date September 6, 2007		2010	$	1.057536	$	1.377554		0
		2009	$	0.797500	$	1.057536		0
		2008	$	1.175514	$	0.797500		0
		2007	$	1.000000	$	1.175514		0
ProFund VP Short Emerging Markets		2011	$	0.428102	$	0.464248		0
Subaccount Inception Date September 6, 2007		2010	$	0.535530	$	0.428102		0
		2009	$	1.065671	$	0.535530		0
		2008	$	0.822499	$	1.065671		0
		2007	$	1.000000	$	0.822499		0
ProFund VP Short International		2011	$	0.758861	$	0.757070		0
Subaccount Inception Date September 6, 2007		2010	$	0.907848	$	0.758861		0
		2009	$	1.328881	$	0.907848		0
		2008	$	0.981118	$	1.328881		0
		2007	$	1.000000	$	0.981118		0
ProFund VP Short NASDAQ-100		2011	$	0.633151	$	0.555457		0
Subaccount Inception Date September 6, 2007		2010	$	0.819830	$	0.633151		0
		2009	$	1.409954	$	0.819830		0
		2008	$	0.971166	$	1.409954		0
		2007	$	1.000000	$	0.971166		0
ProFund VP Short Small-Cap		2011	$	0.605498	$	0.539432		0
Subaccount Inception Date June 21, 2007		2010	$	0.869638	$	0.605498		0
		2009	$	1.312317	$	0.869638		0
		2008	$	1.079364	$	1.312317		0
		2007	$	1.000000	$	1.079364		0
ProFund VP Small-Cap		2011	$	0.863538	$	0.798362		0
Subaccount Inception Date June 21, 2007		2010	$	0.706177	$	0.863538		666
		2009	$	0.571629	$	0.706177		668
		2008	$	0.903138	$	0.571629		987
		2007	$	1.000000	$	0.903138		989

40

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.05%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Small-Cap Value		2011	$	0.876543	$	0.823730		0
Subaccount Inception Date September 6, 2007		2010	$	0.732579	$	0.876543		132
		2009	$	0.620920	$	0.732579		132
		2008	$	0.914224	$	0.620920		146
		2007	$	1.000000	$	0.914224		0
ProFund VP Telecommunications		2011	$	0.729355	$	0.728081		0
Subaccount Inception Date September 6, 2007		2010	$	0.643376	$	0.729355		0
		2009	$	0.611777	$	0.643376		0
		2008	$	0.952078	$	0.611777		0
		2007	$	1.000000	$	0.952078		0
ProFund VP UltraSmall-Cap		2011	$	0.585642	$	0.465799		0
Subaccount Inception Date September 6, 2007		2010	$	0.402615	$	0.585642		0
		2009	$	0.293108	$	0.402615		0
		2008	$	0.884735	$	0.293108		0
		2007	$	1.000000	$	0.884735		0
ProFund VP U.S. Government Plus		2011	$	1.128814	$	1.587604		0
Subaccount Inception Date September 6, 2007		2010	$	1.046129	$	1.128814		445
		2009	$	1.584413	$	1.046129		445
		2008	$	1.079696	$	1.584413		318
		2007	$	1.000000	$	1.079696		0
ProFund VP Utilities		2011	$	0.820310	$	0.944617		0
Subaccount Inception Date September 6, 2007		2010	$	0.790105	$	0.820310		39
		2009	$	0.728126	$	0.790105		39
		2008	$	1.072266	$	0.728126		76
		2007	$	1.000000	$	1.072266		0
Access VP High Yield FundSM		2011	$	1.255559	$	1.264159		0
Subaccount Inception Date September 6, 2007		2010	$	1.101002	$	1.255559		0
		2009	$	0.961035	$	1.101002		0
		2008	$	1.028571	$	0.961035		0
		2007	$	1.000000	$	1.028571		0
			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.209436	$	1.213728		11,278
Subaccount Inception Date January 12, 2004		2010	$	1.134820	$	1.209436		110,009
		2009	$	0.926717	$	1.134820		117,506
		2008	$	1.202743	$	0.926717		445,570
		2007	$	1.155877	$	1.202743		1,437,096
		2006	$	1.080171	$	1.155877		713,187
		2005	$	1.049174	$	1.080171		726,584
		2004	$	1.000000	$	1.049174		647,802
TA Asset Allocation - Growth - Service Class		2011	$	1.201222	$	1.110635		0
Subaccount Inception Date January 12, 2004		2010	$	1.068687	$	1.201222		727
		2009	$	0.841469	$	1.068687		8,273
		2008	$	1.424830	$	0.841469		37,857
		2007	$	1.351644	$	1.424830		267,531
		2006	$	1.195887	$	1.351644		252,328
		2005	$	1.089791	$	1.195887		619,199
		2004	$	1.000000	$	1.089791		536,798

41

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Moderate - Service Class		2011	$	1.247222	$	1.226391		125,027
Subaccount Inception Date January 12, 2004		2010	$	1.155069	$	1.247222		148,972
		2009	$	0.933589	$	1.155069		330,433
		2008	$	1.290333	$	0.933589		516,228
		2007	$	1.221786	$	1.290333		1,075,960
		2006	$	1.120515	$	1.221786		1,675,265
		2005	$	1.066800	$	1.120515		1,024,971
		2004	$	1.000000	$	1.066800		183,584
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.244410	$	1.192278		224,482
Subaccount Inception Date January 12, 2004		2010	$	1.129221	$	1.244410		244,975
		2009	$	0.900761	$	1.129221		532,340
		2008	$	1.369841	$	0.900761		522,014
		2007	$	1.299188	$	1.369841		551,331
		2006	$	1.167086	$	1.299188		491,269
		2005	$	1.085037	$	1.167086		381,743
		2004	$	1.000000	$	1.085037		298,129
TA International Moderate Growth - Service Class		2011	$	0.934834	$	0.847472		314,078.744
Subaccount Inception Date May 1, 2006		2010	$	0.864938	$	0.934834		411,954
		2009	$	0.682168	$	0.864938		439,087
		2008	$	1.092699	$	0.682168		385,323
		2007	$	1.027415	$	1.092699		18,081
		2006	$	1.000000	$	1.027415		1,182
TA BlackRock Large Cap Value - Service Class		2011	$	1.178259	$	1.183594		0
Subaccount Inception Date January 12, 2004		2010	$	1.091064	$	1.178259		0
		2009	$	0.978674	$	1.091064		4,970
		2008	$	1.514094	$	0.978674		8,963
		2007	$	1.480176	$	1.514094		97,508
		2006	$	1.294543	$	1.480176		73,413
		2005	$	1.140878	$	1.294543		63,836
		2004	$	1.000000	$	1.140878		30,731
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.533726	$	1.413344		0
Subaccount Inception Date January 12, 2004		2010	$	1.356798	$	1.533726		0
		2009	$	1.040513	$	1.356798		5,376
		2008	$	1.845857	$	1.040513		8,475
		2007	$	2.022707	$	1.845857		234,562
		2006	$	1.453710	$	2.022707		146,951
		2005	$	1.310008	$	1.453710		135,130
		2004	$	1.000000	$	1.310008		183,330
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.977747	$	0.991648		0
Subaccount Inception Date January 12, 2004		2010	$	1.001484	$	0.977747		0
		2009	$	0.982755	$	1.001484		0
		2008	$	1.051345	$	0.982755		21,839
		2007	$	1.080015	$	1.051345		221,108
		2006	$	1.074992	$	1.080015		230,203
		2005	$	1.046966	$	1.074992		252,344
		2004	$	1.000000	$	1.046966		194,139
TA Janus Balanced - Service Class		2011	$	0.995916	$	0.870855		0
Subaccount Inception Date November 19, 2009		2010	$	0.985270	$	0.995916		0
		2009	$	0.986561	$	0.985270		0
TA Hanlon Balanced - Service Class		2011	$	0.965451	$	0.914306		0
Subaccount Inception Date November 19, 2009		2010	$	1.020080	$	0.965451		0
		2009	$	0.998149	$	1.020080		0

42

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Hanlon Growth - Service Class		2011	$	0.993687	$	0.861075		0
Subaccount Inception Date November 19, 2009		2010	$	1.020750	$	0.993687		0
		2009	$	0.996387	$	1.020750		0
TA Hanlon Growth and Income - Service Class		2011	$	0.980601	$	0.889689		0
Subaccount Inception Date November 19, 2009		2010	$	1.021832	$	0.980601		0
		2009	$	0.997255	$	1.021832		0
TA Hanlon Income - Service Class		2011	$	0.984590	$	0.993605		0
Subaccount Inception Date November 19, 2009		2010	$	1.003102	$	0.984590		0
		2009	$	0.999946	$	1.003102		0
TA Jennison Growth - Service Class		2011	$	1.046533	$	1.018144		0
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.046533		8,790
TA JPMorgan Core Bond - Service Class		2011	$	1.261466	$	1.326351		0
Subaccount Inception Date January 12, 2004		2010	$	1.191444	$	1.261466		0
		2009	$	1.111024	$	1.191444		154
		2008	$	1.076747	$	1.111024		3,599
		2007	$	1.030261	$	1.076747		284,813
		2006	$	1.013996	$	1.030261		263,905
		2005	$	1.013271	$	1.013996		261,572
		2004	$	1.000000	$	1.013271		57,759
TA JPMorgan Enhanced Index - Service Class		2011	$	1.091080	$	1.074798		0
Subaccount Inception Date January 12, 2004		2010	$	0.968964	$	1.091080		0
		2009	$	0.764289	$	0.968964		0
		2008	$	1.247845	$	0.764289		0
		2007	$	1.220435	$	1.247845		3,027
		2006	$	1.082754	$	1.220435		3,198
		2005	$	1.070117	$	1.082754		3,267
		2004	$	1.000000	$	1.070117		3,376
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.159505	$	1.068742		0
Subaccount Inception Date January 12, 2004		2010	$	0.930625	$	1.159505		0
		2009	$	0.744124	$	0.930625		1,344
		2008	$	1.196145	$	0.744124		1,366
		2007	$	1.210945	$	1.196145		47,500
		2006	$	1.044106	$	1.210945		49,835
		2005	$	1.025892	$	1.044106		66,445
		2004	$	1.000000	$	1.025892		70,034
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.629202	$	1.450028		0
Subaccount Inception Date January 12, 2004		2010	$	1.228341	$	1.629202		0
		2009	$	0.917759	$	1.629202		0
		2008	$	1.588535	$	0.917759		0
		2007	$	1.320279	$	1.588535		45,327
		2006	$	1.283737	$	1.320279		88,927
		2005	$	1.29408	$	1.283737		21,694
		2004	$	1.000000	$	1.29408		49,201
TA AEGON High Yield Bond - Service Class		2011	$	1.316065	$	1.348871		0
Subaccount Inception Date January 12, 2004		2010	$	1.196746	$	1.316065		0
		2009	$	0.831193	$	1.196746		0
		2008	$	1.137541	$	0.831193		0
		2007	$	1.140706	$	1.137541		16,550
		2006	$	1.051782	$	1.140706		31,943
		2005	$	1.056876	$	1.051782		18,236
		2004	$	1.000000	$	1.056876		9,551

43

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA MFS International Equity - Service Class		2011	$	0.887705	$	0.781392		0
Subaccount Inception Date May 1, 2007		2010	$	0.820859	$	0.887705		0
		2009	$	0.633163	$	0.820859		5,359
		2008	$	1.002003	$	0.633163		13,640
		2007	$	1.000000	$	1.002003		12,507
TA PIMCO Total Return - Service Class		2011	$	1.243777	$	1.291983		0
Subaccount Inception Date January 12, 2004		2010	$	1.186374	$	1.243777		0
		2009	$	1.045426	$	1.186374		0
		2008	$	1.100215	$	1.045426		0
		2007	$	1.031527	$	1.100215		47,813
		2006	$	1.012627	$	1.031527		47,531
		2005	$	1.012252	$	1.012627		44,500
		2004	$	1.000000	$	1.012252		14,655
TA T. Rowe Price Small Cap - Service Class		2011	$	1.359087	$	1.352654		4,572
Subaccount Inception Date January 12, 2004		2010	$	1.034039	$	1.359087		0
		2009	$	0.762460	$	1.034039		0
		2008	$	1.222999	$	0.762460		0
		2007	$	1.141716	$	1.222999		10,455
		2006	$	1.126855	$	1.141716		10,854
		2005	$	1.041075	$	1.126855		11,134
		2004	$	1.000000	$	1.041075		60,510
TA Third Avenue Value - Service Class		2011	$	1.311006	$	1.099044		0
Subaccount Inception Date January 12, 2004		2010	$	1.161112	$	1.311006		6,471
		2009	$	0.880422	$	1.161112		57,252
		2008	$	1.529616	$	0.880422		29,528
		2007	$	1.545794	$	1.529616		224,479
		2006	$	1.361680	$	1.545794		219,795
		2005	$	1.172313	$	1.361680		199,632
		2004	$	1.000000	$	1.172313		179,408
TA Efficient Markets - Service Class		2011	$	1.319059	$	1.264908		0
Subaccount Inception Date November 10, 2008		2010	$	1.197245	$	1.319059		0
		2009	$	1.036128	$	1.197245		0
		2008	$	1.000000	$	1.036128		0
TA Multi-Managed Balanced - Service Class		2011	$	1.331575	$	1.354501		0
Subaccount Inception Date January 12, 2004		2010	$	1.096341	$	1.331575		0
		2009	$	0.887955	$	1.096341		0
		2008	$	1.343376	$	0.887955		0
		2007	$	1.208705	$	1.343376		22,822
		2006	$	1.133718	$	1.208705		23,022
		2005	$	1.072767	$	1.133718		0
		2004	$	1.000000	$	1.072767		0
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.159699	$	1.155943		0
Subaccount Inception Date January 12, 2004		2010	$	1.083710	$	1.159699		0
		2009	$	0.842744	$	1.083710		0
		2008	$	1.364516	$	0.842744		0
		2007	$	1.176750	$	1.364516		0
		2006	$	1.084688	$	1.176750		0
		2005	$	1.068486	$	1.084688		0
		2004	$	1.000000	$	1.068486		29,726

44

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA WMC Diversified Equity - Service Class		2011	$	1.119455	$	1.018489		0
Subaccount Inception Date January 12, 2004		2010	$	0.979715	$	1.119455		14,871
		2009	$	0.781654	$	0.979715		5,021
		2008	$	1.419146	$	0.781654		42,396
		2007	$	1.259070	$	1.419146		59,138
		2006	$	1.084163	$	1.259070		30,397
		2005	$	1.031227	$	1.084163		20,276
		2004	$	1.000000	$	1.031227		61,136
TA WMC Diversified Growth - Service Class		2011	$	1.191149	$	1.121957		0
Subaccount Inception Date January 12, 2004		2010	$	1.034171	$	1.191149		0
		2009	$	0.818366	$	1.034171		8,718
		2008	$	1.550975	$	0.818366		38,933
		2007	$	1.363416	$	1.550975		362,500
		2006	$	1.283054	$	1.363416		454,122
		2005	$	1.125436	$	1.283054		300,968
		2004	$	1.000000	$	1.125436		115,965
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.004951		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988220		0
TA AEGON Money Market - Service Class		2011	$	1.007132	$	0.987490		0
Subaccount Inception Date January 12, 2004		2010	$	1.027232	$	1.007132		0
		2009	$	1.047645	$	1.027232		158
		2008	$	1.046024	$	1.047645		119,387
		2007	$	1.018510	$	1.046024		42,709
		2006	$	0.994370	$	1.018510		18,419
		2005	$	0.988233	$	0.994370		23,736
		2004	$	1.000000	$	0.988233		14,013
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.808323	$	1.722258		0
Subaccount Inception Date May 1, 2004		2010	$	1.418265	$	1.808323		20,541
		2009	$	1.012336	$	1.418265		79,474
		2008	$	1.751815	$	1.012336		70,480
		2007	$	1.436637	$	1.751815		100,815
		2006	$	1.243728	$	1.436637		41,744
		2005	$	1.120015	$	1.243728		34,829
		2004	$	1.000000	$	1.120015		0
TA AEGON U.S. Government Securities - Service Class		2011	$	1.151488	$	1.211227		0
Subaccount Inception Date January 12, 2004		2010	$	1.126923	$	1.151488		0
		2009	$	1.103156	$	1.126923		8,535
		2008	$	1.047598	$	1.103156		63,982
		2007	$	1.010253	$	1.047598		0
		2006	$	0.999817	$	1.010253		0
		2005	$	0.999949	$	0.999817		0
		2004	$	1.000000	$	0.999949		59,762
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.070290	$	1.082666		0
Subaccount Inception Date November 19, 2009		2010	$	0.997673	$	1.070290		0
		2009	$	0.999946	$	0.997673		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.010594	$	1.005354		0
Subaccount Inception Date May 1, 2008		2010	$	0.931235	$	1.010594		0
		2009	$	0.815125	$	0.931235		0
		2008	$	1.000000	$	0.815125		0

45

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.962507	$	0.932973		0
Subaccount Inception Date May 1, 2008		2010	$	0.868778	$	0.962507		0
		2009	$	0.719388	$	0.868778		0
		2008	$	1.000000	$	0.719388		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.148129	$	1.081538		0
Subaccount Inception Date November 19, 2009		2010	$	1.023612	$	1.148129		0
		2009	$	0.999946	$	1.023612		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.491515	$	1.361160		4,049
Subaccount Inception Date January 12, 2004		2010	$	1.138883	$	1.491515		0
		2009	$	0.725490	$	1.138883		54,788
		2008	$	1.381740	$	0.725490		37,792
		2007	$	1.153097	$	1.381740		22,775
		2006	$	1.073175	$	1.153097		23,564
		2005	$	1.019987	$	1.073175		5,283
		2004	$	1.000000	$	1.019987		53,097
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.629202	$	1.450028		0
Subaccount Inception Date January 12, 2004		2010	$	1.228341	$	1.629202		0
		2009	$	0.917759	$	1.228341		0
		2008	$	1.588535	$	0.917759		0
		2007	$	1.320279	$	1.588535		45,327
		2006	$	1.283737	$	1.320279		88,927
		2005	$	1.129408	$	1.283737		21,694
		2004	$	1.000000	$	1.129408		49,201
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.151488	$	1.211227		2,134
Subaccount Inception Date January 12, 2004		2010	$	1.126923	$	1.151488		34,959
		2009	$	1.103156	$	1.126923		125,643
		2008	$	1.047598	$	1.103156		550,792
		2007	$	1.010253	$	1.047598		93,802
		2006	$	0.999817	$	1.010253		0
		2005	$	0.999949	$	0.999817		0
		2004	$	1.000000	$	0.999949		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.330376	$	1.262014		0
Subaccount Inception Date November 10, 2008		2010	$	1.232706	$	1.330376		0
		2009	$	1.012300	$	1.232706		0
		2008	$	1.000000	$	1.012300		0
Fidelity® VIP Index 500 Portfolio - Service Class 2		2011	$	1.095549	$	1.093275		0
Subaccount Inception Date January 12, 2004		2010	$	0.973983	$	1.095549		0
		2009	$	0.786585	$	0.973983		5,093
		2008	$	1.276857	$	0.786585		0
		2007	$	1.238373	$	1.276857		0
		2006	$	1.094162	$	1.238373		0
		2005	$	1.067366	$	1.094162		680
		2004	$	1.000000	$	1.067366		331
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4		2011	$	1.359873	$	1.309051		0
Subaccount Inception Date November 10, 2008		2010	$	1.260066	$	1.359873		0
		2009	$	0.989628	$	1.260066		0
		2008	$	1.000000	$	0.989628		0
ProFund VP Asia 30		2011	$	0.949580	$	0.679647		0
Subaccount Inception Date September 6, 2007		2010	$	0.850303	$	0.949580		37,770
		2009	$	0.562460	$	0.850303		168,605
		2008	$	1.166737	$	0.562460		171,889
		2007	$	1.000000	$	1.166737		55,208

46

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Basic Materials		2011	$	1.070141	$	0.879721		27,056
Subaccount Inception Date September 6, 2007		2010	$	0.841597	$	1.070141		47,102
		2009	$	0.528674	$	0.841597		50,943
		2008	$	1.110218	$	0.528674		65,874
		2007	$	1.000000	$	1.110218		16,389
ProFund VP Bull		2011	$	0.784648	$	0.769297		0
Subaccount Inception Date June 21, 2007		2010	$	0.710914	$	0.784648		0
		2009	$	0.583166	$	0.710914		12,618
		2008	$	0.954385	$	0.583166		0
		2007	$	1.000000	$	0.954385		0
ProFund VP Consumer Services		2011	$	0.937986	$	0.970193		0
Subaccount Inception Date September 6, 2007		2010	$	0.788156	$	0.937986		0
		2009	$	0.614592	$	0.788156		0
		2008	$	0.913681	$	0.614592		0
		2007	$	1.000000	$	0.913681		0
ProFund VP Emerging Markets		2011	$	0.959772	$	0.755566		0
Subaccount Inception Date September 6, 2007		2010	$	0.891843	$	0.959772		18,778
		2009	$	0.560291	$	0.891843		21,891
		2008	$	1.145242	$	0.560291		535
		2007	$	1.000000	$	1.145242		0
ProFund VP Europe 30		2011	$	0.735975	$	0.657452		0
Subaccount Inception Date September 6, 2007		2010	$	0.731424	$	0.735975		0
		2009	$	0.563936	$	0.731424		2,406
		2008	$	1.027353	$	0.563936		2,227
		2007	$	1.000000	$	1.027353		16,502
ProFund VP Falling US Dollar		2011	$	0.950140	$	0.906186		0
Subaccount Inception Date September 6, 2007		2010	$	0.994893	$	0.950140		0
		2009	$	0.982228	$	0.994893		0
		2008	$	1.055947	$	0.982228		4,630
		2007	$	1.000000	$	1.055947		0
ProFund VP Financials		2011	$	0.512744	$	0.433164		0
Subaccount Inception Date September 6, 2007		2010	$	0.471462	$	0.512744		0
		2009	$	0.418135	$	0.471462		0
		2008	$	0.862468	$	0.418135		0
		2007	$	1.000000	$	0.862468		0
ProFund VP International		2011	$	0.709834	$	0.596144		0
Subaccount Inception Date September 6, 2007		2010	$	0.671615	$	0.709834		0
		2009	$	0.549604	$	0.671615		7,343
		2008	$	1.008395	$	0.549604		0
		2007	$	1.000000	$	1.008395		0
ProFund VP Japan		2011	$	0.523585	$	0.418161		0
Subaccount Inception Date September 6, 2007		2010	$	0.571391	$	0.523585		0
		2009	$	0.528240	$	0.571391		0
		2008	$	0.910895	$	0.528240		0
		2007	$	1.000000	$	0.910895		0
ProFund VP Mid-Cap		2011	$	0.931957	$	0.875498		0
Subaccount Inception Date September 6, 2007		2010	$	0.766300	$	0.931957		0
		2009	$	0.588234	$	0.766300		0
		2008	$	0.973615	$	0.588234		0
		2007	$	1.000000	$	0.973615		0

47

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Money Market		2011	$	0.958425	$	0.939867		0
Subaccount Inception Date June 21, 2007		2010	$	0.977409	$	0.958425		0
		2009	$	0.996643	$	0.977409		9,916
		2008	$	1.008173	$	0.996643		21,235
		2007	$	1.000000	$	1.008173		10,915
ProFund VP Oil & Gas		2011	$	0.879971	$	0.882129		28,035
Subaccount Inception Date September 6, 2007		2010	$	0.762182	$	0.879971		42,255
		2009	$	0.673103	$	0.762182		43,218
		2008	$	1.089007	$	0.673103		56,790
		2007	$	1.000000	$	1.089007		6,503
ProFund VP NASDAQ-100		2011	$	1.032149	$	1.026676		0
Subaccount Inception Date June 21, 2007		2010	$	0.890338	$	1.032149		0
		2009	$	0.597432	$	0.890338		0
		2008	$	1.059575	$	0.597432		0
		2007	$	1.000000	$	1.059575		0
ProFund VP Pharmaceuticals		2011	$	0.888759	$	1.011940		0
Subaccount Inception Date September 6, 2007		2010	$	0.902241	$	0.888759		0
		2009	$	0.787269	$	0.902241		0
		2008	$	0.997702	$	0.787269		3,277
		2007	$	1.000000	$	0.997702		0
ProFund VP Precious Metals		2011	$	1.379824	$	1.092866		31,672
Subaccount Inception Date September 6, 2007		2010	$	1.058760	$	1.379824		42,355
		2009	$	0.798027	$	1.058760		42,970
		2008	$	1.175702	$	0.798027		74,522
		2007	$	1.000000	$	1.175702		7,347
ProFund VP Short Emerging Markets		2011	$	0.428807	$	0.465248		0
Subaccount Inception Date September 6, 2007		2010	$	0.536152	$	0.428807		0
		2009	$	1.066376	$	0.536152		0
		2008	$	0.822633	$	1.066376		0
		2007	$	1.000000	$	0.822633		0
ProFund VP Short International		2011	$	0.760087	$	0.758661		0
Subaccount Inception Date September 6, 2007		2010	$	0.908875	$	0.760087		0
		2009	$	1.329730	$	0.908875		0
		2008	$	0.981274	$	1.329730		0
		2007	$	1.000000	$	0.981274		0
ProFund VP Short NASDAQ-100		2011	$	0.634194	$	0.556640		0
Subaccount Inception Date September 6, 2007		2010	$	0.820778	$	0.634194		0
		2009	$	1.410886	$	0.820778		0
		2008	$	0.971327	$	1.410886		0
		2007	$	1.000000	$	0.971327		0
ProFund VP Short Small-Cap		2011	$	0.606558	$	0.540638		9,793
Subaccount Inception Date June 21, 2007		2010	$	0.870731	$	0.606558		13,816
		2009	$	1.313313	$	0.870731		13,902
		2008	$	1.079647	$	1.313313		30,774
		2007	$	1.000000	$	1.079647		0
ProFund VP Small-Cap		2011	$	0.865023	$	0.800124		0
Subaccount Inception Date June 21, 2007		2010	$	0.707047	$	0.865023		0
		2009	$	0.572058	$	0.707047		0
		2008	$	0.903369	$	0.572058		0
		2007	$	1.000000	$	0.903369		0

48

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 2.00%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Small-Cap Value		2011	$	0.877970	$	0.825467		0
Subaccount Inception Date September 6, 2007		2010	$	0.733419	$	0.877970		0
		2009	$	0.621319	$	0.733419		0
		2008	$	0.914364	$	0.621319		0
		2007	$	1.000000	$	0.914364		0
ProFund VP Telecommunications		2011	$	0.730533	$	0.729610		0
Subaccount Inception Date September 6, 2007		2010	$	0.644104	$	0.730533		0
		2009	$	0.612179	$	0.644104		0
		2008	$	0.952230	$	0.612179		0
		2007	$	1.000000	$	0.952230		0
ProFund VP UltraSmall-Cap		2011	$	0.586601	$	0.466795		0
Subaccount Inception Date September 6, 2007		2010	$	0.403075	$	0.586601		0
		2009	$	0.293302	$	0.403075		0
		2008	$	0.884874	$	0.293302		0
		2007	$	1.000000	$	0.884874		0
ProFund VP U.S. Government Plus		2011	$	1.130670	$	1.590999		0
Subaccount Inception Date September 6, 2007		2010	$	1.047333	$	1.130670		3,681
		2009	$	1.585445	$	1.047333		3,707
		2008	$	1.079868	$	1.585445		204,955
		2007	$	1.000000	$	1.079868		20,444
ProFund VP Utilities		2011	$	0.821623	$	0.946587		0
Subaccount Inception Date September 6, 2007		2010	$	0.790991	$	0.821623		0
		2009	$	0.728593	$	0.790991		0
		2008	$	1.072437	$	0.728593		0
		2007	$	1.000000	$	1.072437		15,653
Access VP High Yield FundSM		2011	$	1.257606	$	1.266839		0
Subaccount Inception Date September 6, 2007		2010	$	1.102258	$	1.257606		0
		2009	$	0.961662	$	1.102258		0
		2008	$	1.028733	$	0.961662		0
		2007	$	1.000000	$	1.028733		0
			Separate Account Expense 1.95%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class Subaccount Inception		2011	$	1.191369	$	1.196174		0
Date January 12, 2004		2010	$	1.117311	$	1.191369		0
		2009	$	0.911981	$	1.117311		0
		2008	$	1.183033	$	0.911981		0
		2007	$	1.136381	$	1.183033		0
		2006	$	1.061441	$	1.136381		0
		2005	$	1.000000	$	1.061441		0
TA Asset Allocation - Growth - Service Class		2011	$	1.158907	$	1.072037		0
Subaccount Inception Date January 12, 2004		2010	$	1.030533	$	1.158907		26,472
		2009	$	0.811030	$	1.030533		41,699
		2008	$	1.372620	$	0.811030		80,357
		2007	$	1.301467	$	1.372620		136,748
		2006	$	1.150935	$	1.301467		55,380
		2005	$	1.000000	$	1.150935		0

49

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.95%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Moderate - Service Class		2011	$	1.219509	$	1.199735		0
Subaccount Inception Date January 12, 2004		2010	$	1.128850	$	1.219509		0
		2009	$	0.911954	$	1.128850		0
		2008	$	1.259807	$	0.911954		0
		2007	$	1.192293	$	1.259807		41,759
		2006	$	1.092924	$	1.192293		122,696
		2005	$	1.000000	$	1.092924		0
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.202241	$	1.152446		0
Subaccount Inception Date January 12, 2004		2010	$	1.090421	$	1.202241		0
		2009	$	0.869392	$	1.090421		0
		2008	$	1.321480	$	0.869392		0
		2007	$	1.252703	$	1.321480		0
		2006	$	1.124781	$	1.252703		0
		2005	$	1.000000	$	1.124781		0
TA International Moderate Growth - Service Class		2011	$	0.936974	$	0.849823		0
Subaccount Inception Date May 1, 2006		2010	$	0.866493	$	0.936974		0
		2009	$	0.683054	$	0.866493		0
		2008	$	1.093585	$	0.683054		0
		2007	$	1.027743	$	1.093585		0
		2006	$	1.000000	$	1.027743		0
TA BlackRock Large Cap Value - Service Class		2011	$	1.039504	$	1.044704		0
Subaccount Inception Date January 12, 2004		2010	$	0.962103	$	1.039504		0
		2009	$	0.862574	$	0.962103		0
		2008	$	1.333815	$	0.862574		0
		2007	$	1.303298	$	1.333815		0
		2006	$	1.032182	$	1.303298		0
		2005	$	1.000000	$	1.032182		0
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.230352	$	1.134333		0
Subaccount Inception Date January 12, 2004		2010	$	1.087884	$	1.230352		0
		2009	$	0.833881	$	1.087884		0
		2008	$	1.478567	$	0.833881		0
		2007	$	1.619420	$	1.478567		0
		2006	$	1.163307	$	1.619420		0
		2005	$	1.000000	$	1.163307		0
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.946883	$	0.960813		0
Subaccount Inception Date January 12, 2004		2010	$	0.969386	$	0.946883		0
		2009	$	0.950801	$	0.969386		0
		2008	$	1.016671	$	0.950801		0
		2007	$	1.043886	$	1.016671		0
		2006	$	1.038513	$	1.043886		0
		2005	$	1.000000	$	1.038513		0
TA Janus Balanced - Service Class		2011	$	0.996461	$	0.871759		0
Subaccount Inception Date November 19, 2009		2010	$	0.985328	$	0.996461		0
		2009	$	0.986563	$	0.985328		0
TA Hanlon Balanced - Service Class		2011	$	0.966004	$	0.915280		0
Subaccount Inception Date November 19, 2009		2010	$	1.020140	$	0.966004		0
		2009	$	0.998150	$	1.020140		0
TA Hanlon Growth - Service Class		2011	$	0.944228	$	0.861968		0
Subaccount Inception Date November 19, 2009		2010	$	1.020807	$	0.944228		0
		2009	$	0.996388	$	1.020807		0
TA Hanlon Growth and Income - Service Class		2011	$	0.981138	$	0.890613		0
Subaccount Inception Date November 19, 2009		2010	$	1.021887	$	0.981138		0
		2009	$	0.997257	$	1.021887		0

50

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.95%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Hanlon Income - Service Class		2011	$	0.985121	$	0.994626		0
Subaccount Inception Date November 19, 2009		2010	$	1.003159	$	0.985121		0
		2009	$	0.999947	$	1.003159		0
TA Jennison Growth - Service Class		2011	$	1.046882	$	1.018981		0
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.046882		0
TA JPMorgan Core Bond - Service Class		2011	$	1.245018	$	1.309700		0
Subaccount Inception Date January 12, 2004		2010	$	1.175337	$	1.245018		0
		2009	$	1.095474	$	1.175337		0
		2008	$	1.061165	$	1.095474		0
		2007	$	1.014848	$	1.061165		0
		2006	$	0.998337	$	1.014848		0
		2005	$	1.000000	$	0.998337		0
TA JPMorgan Enhanced Index - Service Class		2011	$	1.071048	$	1.055589		0
Subaccount Inception Date January 12, 2004		2010	$	0.950715	$	1.071048		0
		2009	$	0.749520	$	0.950715		0
		2008	$	1.223136	$	0.749520		0
		2007	$	1.195675	$	1.223136		0
		2006	$	1.122710	$	1.195675		0
		2005	$	1.000000	$	1.122710		0
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.213506	$	1.119056		0
Subaccount Inception Date January 12, 2004		2010	$	0.973482	$	1.213506		0
		2009	$	0.778012	$	0.973482		0
		2008	$	1.250013	$	0.778012		0
		2007	$	1.264854	$	1.250013		0
		2006	$	1.050347	$	1.264854		0
		2005	$	1.000000	$	1.050347		0
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.582919	$	1.409530		0
Subaccount Inception Date January 12, 2004		2010	$	1.192858	$	1.582919		0
		2009	$	0.890812	$	1.192858		0
		2008	$	1.541132	$	0.898812		0
		2007	$	1.280247	$	1.541132		0
		2006	$	1.006592	$	1.280247		0
		2005	$	1.000000	$	1.006592		0
TA AEGON High Yield Bond - Service Class		2011	$	1.294696	$	1.327604		0
Subaccount Inception Date January 12, 2004		2010	$	1.176746	$	1.294696		0
		2009	$	0.816898	$	1.176746		0
		2008	$	1.117422	$	0.816898		0
		2007	$	1.119986	$	1.117422		0
		2006	$	1.282243	$	1.119986		0
		2005	$	1.000000	$	1.282243		0
TA MFS International Equity - Service Class		2011	$	0.889318	$	0.783197		0
Subaccount Inception Date May 1, 2007		2010	$	0.821935	$	0.889318		0
		2009	$	0.633683	$	0.821935		0
		2008	$	1.002330	$	0.633683		0
		2007	$	1.000000	$	1.002330		0
TA PIMCO Total Return - Service Class		2011	$	1.230405	$	1.278730		0
Subaccount Inception Date January 12, 2004		2010	$	1.173034	$	1.230405		0
		2009	$	1.033174	$	1.173034		0
		2008	$	1.086781	$	1.033174		0
		2007	$	1.018424	$	1.086781		0
		2006	$	1.090062	$	1.018424		0
		2005	$	1.000000	$	1.090062		0

51

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.95%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA T. Rowe Price Small Cap - Service Class		2011	$	1.413130	$	1.407127		0
Subaccount Inception Date January 12, 2004		2010	$	1.074649	$	1.413130		0
		2009	$	0.792013	$	1.074649		0
		2008	$	1.269775	$	0.792013		0
		2007	$	1.184799	$	1.269775		0
		2006	$	1.103688	$	1.184799		0
		2005	$	1.000000	$	1.103688		0
TA Third Avenue Value - Service Class		2011	$	1.145780	$	0.960992		0
Subaccount Inception Date January 12, 2004		2010	$	1.014271	$	1.145780		0
		2009	$	0.768704	$	1.014271		0
		2008	$	1.334866	$	0.768704		0
		2007	$	1.348317	$	1.334866		0
		2006	$	1.108447	$	1.348317		0
		2005	$	1.000000	$	1.108447		0
TA Efficient Markets - Service Class		2011	$	1.320461	$	1.266873		0
Subaccount Inception Date November 10, 2008		2010	$	1.197925	$	1.320461		0
		2009	$	1.036202	$	1.197925		0
		2008	$	1.000000	$	1.036202		0
TA Multi-Managed Balanced - Service Class		2011	$	1.305076	$	1.328198		0
Subaccount Inception Date January 12, 2004		2010	$	1.074003	$	1.305076		0
		2009	$	0.869429	$	1.074003		0
		2008	$	1.314706	$	0.869429		0
		2007	$	1.182332	$	1.314706		0
		2006	$	1.116178	$	1.182332		0
		2005	$	1.000000	$	1.116178		0
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.196284	$	1.192988		0
Subaccount Inception Date January 12, 2004		2010	$	1.117354	$	1.196284		0
		2009	$	0.868474	$	1.117354		0
		2008	$	1.405494	$	0.868474		0
		2007	$	1.211500	$	1.405494		0
		2006	$	1.232747	$	1.211500		0
		2005	$	1.000000	$	1.232747		0
TA WMC Diversified Equity - Service Class		2011	$	1.142422	$	1.039901		0
Subaccount Inception Date January 12, 2004		2010	$	0.999331	$	1.142422		0
		2009	$	0.796906	$	0.999331		0
		2008	$	1.446126	$	0.796906		0
		2007	$	1.282362	$	1.446126		0
		2006	$	1.187144	$	1.282362		0
		2005	$	1.000000	$	1.187144		0
TA WMC Diversified Growth - Service Class		2011	$	1.147264	$	1.081149		0
Subaccount Inception Date January 12, 2004		2010	$	0.995569	$	1.147264		0
		2009	$	0.787436	$	0.995569		0
		2008	$	1.491625	$	0.787436		0
		2007	$	1.310594	$	1.491625		0
		2006	$	1.244207	$	1.310594		0
		2005	$	1.000000	$	1.244207		0
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.004979		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988249		0

52

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.95%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA AEGON Money Market - Service Class		2011	$	1.022034	$	1.002588		0
Subaccount Inception Date January 12, 2004		2010	$	1.041912	$	1.022034		0
		2009	$	1.062095	$	1.041912		18,173
		2008	$	1.059933	$	1.062095		18,202
		2007	$	1.031536	$	1.059933		70,327
		2006	$	1.155767	$	1.031536		70,356
		2005	$	1.000000	$	1.155767		0
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.684600	$	1.605200		0
Subaccount Inception Date January 12, 2004		2010	$	1.320569	$	1.684600		0
		2009	$	0.942142	$	1.320569		0
		2008	$	1.629539	$	0.942142		0
		2007	$	1.335699	$	1.629539		0
		2006	$	0.999653	$	1.335699		10,945
		2005	$	1.000000	$	0.999653		0
TA AEGON U.S. Government Securities - Service Class		2011	$	1.154124	$	1.214588		0
Subaccount Inception Date January 12, 2004		2010	$	1.128948	$	1.154124		0
		2009	$	1.104600	$	1.128948		0
		2008	$	1.048454	$	1.104600		0
		2007	$	1.010576	$	1.048454		0
		2006	$	1.067848	$	1.010576		0
		2005	$	1.000000	$	1.067848		0
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.070874	$	1.083783		0
Subaccount Inception Date November 19, 2009		2010	$	0.997727	$	1.070874		0
		2009	$	0.999947	$	0.997727		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.011917	$	1.007162		0
Subaccount Inception Date May 1, 2008		2010	$	0.931999	$	1.011917		0
		2009	$	0.815389	$	0.931999		0
		2008	$	1.000000	$	0.815389		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.963772	$	0.934661		0
Subaccount Inception Date May 1, 2008		2010	$	0.869488	$	0.963772		0
		2009	$	0.719630	$	0.869488		0
		2008	$	1.000000	$	0.719630		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.148757	$	1.082664		0
Subaccount Inception Date November 19, 2009		2010	$	1.023670	$	1.148757		0
		2009	$	0.999947	$	1.023670		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.577225	$	1.440085		0
Subaccount Inception Date January 12, 2004		2010	$	1.203745	$	1.577225		0
		2009	$	0.766438	$	1.203745		0
		2008	$	1.459007	$	0.766438		0
		2007	$	1.216976	$	1.459007		0
		2006	$	0.000000	$	1.216976		0
		2005	$	1.000000	$	0.000000		0
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.154124	$	1.214588		0
Subaccount Inception Date January 12, 2004		2010	$	1.128948	$	1.154124		25,300
		2009	$	1.104600	$	1.128948		26,227
		2008	$	1.048454	$	1.104600		25,488
		2007	$	1.010576	$	1.048454		0
		2006	$	0.999653	$	1.010576		0
		2005	$	1.000000	$	0.999653		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.331774	$	1.263956		0
Subaccount Inception Date November 10, 2008		2010	$	1.233390	$	1.331774		0
		2009	$	1.012367	$	1.233390		0
		2008	$	1.000000	$	1.012367		0

53

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.95%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Fidelity® VIP Index 500 Portfolio - Service Class 2		2011	$	1.075781	$	1.074077		0
Subaccount Inception Date January 12, 2004		2010	$	0.955950	$	1.075781		0
		2009	$	0.771636	$	0.955950		0
		2008	$	1.251971	$	0.771636		0
		2007	$	1.213635	$	1.251971		0
		2006	$	0.999653	$	1.213635		0
		2005	$	1.000000	$	0.999653		0
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.361314	$	1.311076		0
Subaccount Inception Date November 10, 2008		2010	$	1.260784	$	1.361314		0
		2009	$	0.989698	$	1.260784		0
		2008	$	1.000000	$	0.989698		0
ProFund VP Asia 30		2011	$	0.951122	$	0.681082		0
Subaccount Inception Date September 6, 2007		2010	$	0.851279	$	0.951122		0
		2009	$	0.562823	$	0.851279		0
		2008	$	1.166916	$	0.562823		0
		2007	$	1.000000	$	1.166916		0
ProFund VP Basic Materials		2011	$	1.071873	$	0.881581		0
Subaccount Inception Date September 6, 2007		2010	$	0.842555	$	1.071873		0
		2009	$	0.529019	$	0.842555		0
		2008	$	1.110399	$	0.529019		0
		2007	$	1.000000	$	1.110399		0
ProFund VP Bull		2011	$	0.786022	$	0.771014		0
Subaccount Inception Date June 21, 2007		2010	$	0.711807	$	0.786022		0
		2009	$	0.583611	$	0.711807		0
		2008	$	0.954639	$	0.583611		0
		2007	$	1.000000	$	0.954639		0
ProFund VP Consumer Services		2011	$	0.939515	$	0.972250		0
Subaccount Inception Date September 6, 2007		2010	$	0.789054	$	0.939515		0
		2009	$	0.614994	$	0.789054		0
		2008	$	0.913830	$	0.614994		0
		2007	$	1.000000	$	0.913830		0
ProFund VP Emerging Markets		2011	$	0.961352	$	0.757182		0
Subaccount Inception Date September 6, 2007		2010	$	0.892860	$	0.961352		0
		2009	$	0.560655	$	0.892860		0
		2008	$	1.145425	$	0.560655		0
		2007	$	1.000000	$	1.145425		0
ProFund VP Europe 30		2011	$	0.737194	$	0.658860		0
Subaccount Inception Date September 6, 2007		2010	$	0.732272	$	0.737194		0
		2009	$	0.564305	$	0.732272		0
		2008	$	1.027515	$	0.564305		0
		2007	$	1.000000	$	1.027515		0
ProFund VP Falling US Dollar		2011	$	0.951712	$	0.908117		0
Subaccount Inception Date September 6, 2007		2010	$	0.996047	$	0.951712		0
		2009	$	0.982877	$	0.996047		0
		2008	$	1.056112	$	0.982877		0
		2007	$	1.000000	$	1.056112		0
ProFund VP Financials		2011	$	0.513580	$	0.434080		0
Subaccount Inception Date September 6, 2007		2010	$	0.471997	$	0.513580		0
		2009	$	0.418409	$	0.471997		0
		2008	$	0.862612	$	0.418409		0
		2007	$	1.000000	$	0.862612		0

54

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.95%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP International		2011	$	0.710994	$	0.597402		0
Subaccount Inception Date September 6, 2007		2010	$	0.672389	$	0.710994		0
		2009	$	0.549956	$	0.672389		0
		2008	$	1.008558	$	0.549956		0
		2007	$	1.000000	$	1.008558		0
ProFund VP Japan		2011	$	0.524412	$	0.419031		0
Subaccount Inception Date September 6, 2007		2010	$	0.572011	$	0.524412		0
		2009	$	0.528582	$	0.572011		0
		2008	$	0.911039	$	0.528582		0
		2007	$	1.000000	$	0.911039		0
ProFund VP Mid-Cap		2011	$	0.933465	$	0.877331		0
Subaccount Inception Date September 6, 2007		2010	$	0.767162	$	0.933465		0
		2009	$	0.588614	$	0.767162		0
		2008	$	0.973772	$	0.588614		0
		2007	$	1.000000	$	0.973772		0
ProFund VP Money Market		2011	$	0.960076	$	0.941943		0
Subaccount Inception Date June 21, 2007		2010	$	0.978602	$	0.960076		0
		2009	$	0.997382	$	0.978602		0
		2008	$	1.008436	$	0.997382		0
		2007	$	1.000000	$	1.008436		0
ProFund VP Oil & Gas		2011	$	0.881398	$	0.883983		0
Subaccount Inception Date September 6, 2007		2010	$	0.763053	$	0.881398		0
		2009	$	0.673539	$	0.763053		0
		2008	$	1.089180	$	0.673539		0
		2007	$	1.000000	$	1.089180		0
ProFund VP NASDAQ-100		2011	$	1.033941	$	1.028964		0
Subaccount Inception Date June 21, 2007		2010	$	0.891452	$	1.033941		0
		2009	$	0.597880	$	0.891452		0
		2008	$	1.059856	$	0.597880		0
		2007	$	1.000000	$	1.059856		0
ProFund VP Pharmaceuticals		2011	$	0.890214	$	1.014095		0
Subaccount Inception Date September 6, 2007		2010	$	0.903268	$	0.890214		0
		2009	$	0.787770	$	0.903268		0
		2008	$	0.997861	$	0.787770		0
		2007	$	1.000000	$	0.997861		0
ProFund VP Precious Metals		2011	$	1.382068	$	1.095190		0
Subaccount Inception Date September 6, 2007		2010	$	1.059963	$	1.382068		0
		2009	$	0.798541	$	1.059963		0
		2008	$	1.175887	$	0.798541		0
		2007	$	1.000000	$	1.175887		0
ProFund VP Short Emerging Markets		2011	$	0.429505	$	0.466224		0
Subaccount Inception Date September 6, 2007		2010	$	0.536755	$	0.429505		0
		2009	$	1.067064	$	0.536755		0
		2008	$	0.822766	$	1.067064		0
		2007	$	1.000000	$	0.822766		0
ProFund VP Short International		2011	$	0.761341	$	0.760274		0
Subaccount Inception Date September 6, 2007		2010	$	0.909926	$	0.761341		0
		2009	$	1.330615	$	0.909926		0
		2008	$	0.981427	$	1.330615		0
		2007	$	1.000000	$	0.981427		0

55

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.95%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Short NASDAQ-100		2011	$	0.635220	$	0.557816		0
Subaccount Inception Date September 6, 2007		2010	$	0.821701	$	0.635220		0
		2009	$	1.411787	$	0.821701		0
		2008	$	0.971478	$	1.411787		0
		2007	$	1.000000	$	0.971478		0
ProFund VP Short Small-Cap		2011	$	0.607613	$	0.541841		0
Subaccount Inception Date June 21, 2007		2010	$	0.871809	$	0.607613		0
		2009	$	1.314292	$	0.871809		0
		2008	$	1.079922	$	1.314292		0
		2007	$	1.000000	$	1.079922		0
ProFund VP Small-Cap		2011	$	0.866523	$	0.801909		0
Subaccount Inception Date June 21, 2007		2010	$	0.707918	$	0.866523		0
		2009	$	0.572493	$	0.707918		0
		2008	$	0.903611	$	0.572493		0
		2007	$	1.000000	$	0.903611		0
ProFund VP Small-Cap Value		2011	$	0.879393	$	0.827207		0
Subaccount Inception Date September 6, 2007		2010	$	0.734246	$	0.879393		0
		2009	$	0.621726	$	0.734246		0
		2008	$	0.914513	$	0.621726		0
		2007	$	1.000000	$	0.914513		0
ProFund VP Telecommunications		2011	$	0.731738	$	0.731177		0
Subaccount Inception Date September 6, 2007		2010	$	0.644842	$	0.731738		0
		2009	$	0.612580	$	0.644842		0
		2008	$	0.952386	$	0.612580		0
		2007	$	1.000000	$	0.952386		0
ProFund VP UltraSmall-Cap		2011	$	0.587576	$	0.467795		0
Subaccount Inception Date September 6, 2007		2010	$	0.403538	$	0.587576		0
		2009	$	0.293495	$	0.403538		0
		2008	$	0.885019	$	0.293495		0
		2007	$	1.000000	$	0.885019		0
ProFund VP U.S. Government Plus		2011	$	1.132495	$	1.594344		0
Subaccount Inception Date September 6, 2007		2010	$	1.048515	$	1.132495		0
		2009	$	1.586480	$	1.048515		0
		2008	$	1.080042	$	1.586480		0
		2007	$	1.000000	$	1.080042		0
ProFund VP Utilities		2011	$	0.822979	$	0.948615		0
Subaccount Inception Date September 6, 2007		2010	$	0.791902	$	0.822979		0
		2009	$	0.729066	$	0.791902		0
		2008	$	1.072604	$	0.729066		0
		2007	$	1.000000	$	1.072604		0
Access VP High Yield FundSM		2011	$	1.259683	$	1.269560		0
Subaccount Inception Date September 6, 2007		2010	$	1.103533	$	1.259683		0
		2009	$	0.962288	$	1.103533		0
		2008	$	1.028899	$	0.962288		0
		2007	$	1.000000	$	1.028899		0

56

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.194709	$	1.200112		0
Subaccount Inception Date January 12, 2004		2010	$	1.119897	$	1.194709		35,633
		2009	$	0.913637	$	1.119897		40,366
		2008	$	1.184590	$	0.913637		40,674
		2007	$	1.137305	$	1.184590		3,994
		2006	$	1.061786	$	1.137305		4,021
		2005	$	1.000000	$	1.061786		0
TA Asset Allocation - Growth - Service Class		2011	$	1.162132	$	1.075544		0
Subaccount Inception Date January 12, 2004		2010	$	1.032897	$	1.162132		0
		2009	$	0.812488	$	1.032897		16,864
		2008	$	1.374407	$	0.812488		16,928
		2007	$	1.302518	$	1.374407		16,974
		2006	$	1.151301	$	1.302518		12,976
		2005	$	1.000000	$	1.151301		0
TA Asset Allocation - Moderate - Service Class		2011	$	1.222902	$	1.203664		0
Subaccount Inception Date January 12, 2004		2010	$	1.131441	$	1.222902		88,366
		2009	$	0.913595	$	1.131441		92,642
		2008	$	1.261454	$	0.913595		97,786
		2007	$	1.193256	$	1.261454		190,922
		2006	$	1.093287	$	1.193256		0
		2005	$	1.000000	$	1.093287		0
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.205583	$	1.156229		0
Subaccount Inception Date January 12, 2004		2010	$	1.092924	$	1.205583		0
		2009	$	0.870956	$	1.092924		0
		2008	$	1.323210	$	0.870956		63,400
		2007	$	1.253726	$	1.323210		165,058
		2006	$	1.125147	$	1.253726		163,207
		2005	$	1.000000	$	1.125147		180,113
TA International Moderate Growth - Service Class		2011	$	0.939130	$	0.852193		0
Subaccount Inception Date May 1, 2006		2010	$	0.868064	$	0.939130		0
		2009	$	0.683958	$	0.868064		0
		2008	$	1.094494	$	0.683958		0
		2007	$	1.028086	$	1.094494		0
		2006	$	1.000000	$	1.028086		0
TA BlackRock Large Cap Value - Service Class		2011	$	1.042413	$	1.048152		0
Subaccount Inception Date January 12, 2004		2010	$	0.964326	$	1.042413		0
		2009	$	0.864146	$	0.964326		0
		2008	$	1.335590	$	0.864146		0
		2007	$	1.304374	$	1.335590		0
		2006	$	1.139673	$	1.304374		0
		2005	$	1.000000	$	1.139673		0
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.233765	$	1.138040		0
Subaccount Inception Date January 12, 2004		2010	$	1.090366	$	1.233765		0
		2009	$	0.835368	$	1.090366		0
		2008	$	1.480471	$	0.835368		0
		2007	$	1.620709	$	1.480471		0
		2006	$	1.163667	$	1.620709		0
		2005	$	1.000000	$	1.163667		0

57

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.949538	$	0.963978		0
Subaccount Inception Date January 12, 2004		2010	$	0.971627	$	0.949538		0
		2009	$	0.952520	$	0.971627		0
		2008	$	1.017997	$	0.952520		0
		2007	$	1.044725	$	1.017997		4,020
		2006	$	1.038840	$	1.044725		4,047
		2005	$	1.000000	$	1.038840		0
TA Janus Balanced - Service Class		2011	$	0.997017	$	0.872677		0
Subaccount Inception Date November 19, 2009		2010	$	0.985386	$	0.997017		0
		2009	$	0.986564	$	0.985386		0
TA Hanlon Balanced - Service Class		2011	$	0.966530	$	0.916220		0
Subaccount Inception Date November 19, 2009		2010	$	1.020195	$	0.966530		0
		2009	$	0.998151	$	1.020195		0
TA Hanlon Growth - Service Class		2011	$	0.994774	$	0.862860		0
Subaccount Inception Date November 19, 2009		2010	$	1.020867	$	0.994774		0
		2009	$	0.996390	$	1.020867		0
TA Hanlon Growth and Income - Service Class		2011	$	0.981666	$	0.891527		0
Subaccount Inception Date November 19, 2009		2010	$	1.021949	$	0.981666		0
		2009	$	0.997258	$	1.021949		0
TA Hanlon Income - Service Class		2011	$	0.985670	$	0.995670		0
Subaccount Inception Date November 19, 2009		2010	$	1.003215	$	0.985670		0
		2009	$	0.999948	$	1.003215		0
TA Jennison Growth - Service Class		2011	$	1.047226	$	1.019807		0
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.047226		0
TA JPMorgan Core Bond - Service Class		2011	$	1.248488	$	1.313988		0
Subaccount Inception Date January 12, 2004		2010	$	1.178032	$	1.248488		0
		2009	$	1.097449	$	1.178032		0
		2008	$	1.062555	$	1.097449		0
		2007	$	1.015675	$	1.062555		0
		2006	$	0.998659	$	1.015675		0
		2005	$	1.000000	$	0.998659		0
TA JPMorgan Enhanced Index - Service Class		2011	$	1.074016	$	1.059022		0
Subaccount Inception Date January 12, 2004		2010	$	0.952879	$	1.074016		0
		2009	$	0.750865	$	0.952879		53,303
		2008	$	1.224733	$	0.750865		50,724
		2007	$	1.196645	$	1.224733		40,575
		2006	$	1.060611	$	1.196645		33,945
		2005	$	1.000000	$	1.060611		0
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.216911	$	1.122755		0
Subaccount Inception Date January 12, 2004		2010	$	0.975727	$	1.216911		0
		2009	$	0.779420	$	0.975727		0
		2008	$	1.251643	$	0.779420		0
		2007	$	1.265886	$	1.251643		0
		2006	$	1.090408	$	1.265886		0
		2005	$	1.000000	$	1.090408		0
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.587309	$	1.414128		0
Subaccount Inception Date January 12, 2004		2010	$	1.195580	$	1.587309		0
		2009	$	0.892404	$	1.195580		0
		2008	$	1.543130	$	0.892404		0
		2007	$	1.281280	$	1.543130		0
		2006	$	1.244610	$	1.281280		0
		2005	$	1.000000	$	1.244610		0

58

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA AEGON High Yield Bond - Service Class		2011	$	1.298310	$	1.331972		0
Subaccount Inception Date January 12, 2004		2010	$	1.179459	$	1.298310		0
		2009	$	0.818387	$	1.179459		0
		2008	$	1.118904	$	0.818387		0
		2007	$	1.120908	$	1.118904		0
		2006	$	1.032522	$	1.120908		0
		2005	$	1.000000	$	1.032522		0
TA MFS International Equity - Service Class		2011	$	0.890925	$	0.784994		0
Subaccount Inception Date May 1, 2007		2010	$	0.823023	$	0.890925		0
		2009	$	0.634210	$	0.823023		0
		2008	$	1.002664	$	0.634210		0
		2007	$	1.000000	$	1.002664		0
TA PIMCO Total Return - Service Class		2011	$	1.233841	$	1.282919		0
Subaccount Inception Date January 12, 2004		2010	$	1.175737	$	1.233841		0
		2009	$	1.035049	$	1.175737		0
		2008	$	1.088214	$	1.035049		0
		2007	$	1.019251	$	1.088214		0
		2006	$	0.999603	$	1.019251		0
		2005	$	1.000000	$	0.999603		0
TA T. Rowe Price Small Cap - Service Class		2011	$	1.417042	$	1.411714		0
Subaccount Inception Date January 12, 2004		2010	$	1.077094	$	1.417042		0
		2009	$	0.793433	$	1.077094		0
		2008	$	1.271438	$	0.793433		0
		2007	$	1.185770	$	1.271438		0
		2006	$	1.169191	$	1.185770		0
		2005	$	1.000000	$	1.169191		0
TA Third Avenue Value - Service Class		2011	$	1.148973	$	0.964148		0
Subaccount Inception Date January 12, 2004		2010	$	1.016599	$	1.148973		0
		2009	$	0.770091	$	1.016599		0
		2008	$	1.336609	$	0.770091		0
		2007	$	1.349412	$	1.336609		0
		2006	$	1.187529	$	1.349412		0
		2005	$	1.000000	$	1.187529		0
TA Efficient Markets - Service Class		2011	$	1.321829	$	1.268810		0
Subaccount Inception Date November 10, 2008		2010	$	1.198589	$	1.321829		0
		2009	$	1.036272	$	1.198589		0
		2008	$	1.000000	$	1.036272		0
TA Multi-Managed Balanced - Service Class		2011	$	1.308730	$	1.332559		0
Subaccount Inception Date January 12, 2004		2010	$	1.076474	$	1.308730		0
		2009	$	0.871000	$	1.076474		0
		2008	$	1.316430	$	0.871000		0
		2007	$	1.183307	$	1.316430		0
		2006	$	1.108816	$	1.183307		0
		2005	$	1.000000	$	1.108816		0
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.199630	$	1.196920		0
Subaccount Inception Date January 12, 2004		2010	$	1.119931	$	1.199630		0
		2009	$	0.870049	$	1.119931		0
		2008	$	1.407349	$	0.870049		0
		2007	$	1.212492	$	1.407349		0
		2006	$	1.116544	$	1.212492		0
		2005	$	1.000000	$	1.116544		0

59

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA WMC Diversified Equity - Service Class		2011	$	1.145597	$	1.043286		0
Subaccount Inception Date January 12, 2004		2010	$	1.001623	$	1.145597		0
		2009	$	0.798339	$	1.001623		0
		2008	$	1.448015	$	0.798339		0
		2007	$	1.283411	$	1.448015		0
		2006	$	1.104046	$	1.283411		0
		2005	$	1.000000	$	1.104046		0
TA WMC Diversified Growth - Service Class		2011	$	1.150431	$	1.084662		0
Subaccount Inception Date January 12, 2004		2010	$	0.997840	$	1.150431		0
		2009	$	0.788848	$	0.997840		26,601
		2008	$	1.493567	$	0.788848		27,556
		2007	$	1.311656	$	1.493567		53,893
		2006	$	1.233143	$	1.311656		56,693
		2005	$	1.000000	$	1.233143		0
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005008		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988276		0
TA AEGON Money Market - Service Class		2011	$	1.024885	$	1.005877		0
Subaccount Inception Date January 12, 2004		2010	$	1.044306	$	1.024885		38,567
		2009	$	1.064009	$	1.044306		43,690
		2008	$	1.061314	$	1.064009		44,023
		2007	$	1.032374	$	1.061314		0
		2006	$	1.006920	$	1.032374		0
		2005	$	1.000000	$	1.006920		0
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.689267	$	1.610439		0
Subaccount Inception Date May 1, 2004		2010	$	1.323586	$	1.689267		0
		2009	$	0.943835	$	1.323586		0
		2008	$	1.631669	$	0.943835		0
		2007	$	1.336781	$	1.631669		0
		2006	$	1.156137	$	1.336781		0
		2005	$	1.000000	$	1.156137		0
TA AEGON U.S. Government Securities - Service Class		2011	$	1.157339	$	1.218574		0
Subaccount Inception Date January 12, 2004		2010	$	1.131545	$	1.157339		0
		2009	$	1.106593	$	1.131545		2,169
		2008	$	1.049832	$	1.106593		2,173
		2007	$	1.011405	$	1.049832		2,177
		2006	$	0.999983	$	1.011405		7,463
		2005	$	1.000000	$	0.999983		0
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.071463	$	1.084909		0
Subaccount Inception Date November 19, 2009		2010	$	0.997783	$	1.071463		0
		2009	$	0.999948	$	0.997783		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.013256	$	1.008991		0
Subaccount Inception Date May 1, 2008		2010	$	0.932770	$	1.013256		0
		2009	$	0.815656	$	0.932770		0
		2008	$	1.000000	$	0.815656		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.965040	$	0.936339		0
Subaccount Inception Date May 1, 2008		2010	$	0.870203	$	0.965040		0
		2009	$	0.719866	$	0.870203		0
		2008	$	1.000000	$	0.719866		0

60

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.149386	$	1.083781		0
Subaccount Inception Date November 19, 2009		2010	$	1.023730	$	1.149386		0
		2009	$	0.999948	$	1.023730		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.581656	$	1.444846		0
Subaccount Inception Date January 12, 2004		2010	$	1.206531	$	1.581656		0
		2009	$	0.767828	$	1.206531		0
		2008	$	1.460928	$	0.767828		0
		2007	$	1.217975	$	1.460928		0
		2006	$	1.132437	$	1.217975		0
		2005	$	1.000000	$	1.132437		0
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.157339	$	1.218574		0
Subaccount Inception Date January 12, 2004		2010	$	1.131545	$	1.157339		48,562
		2009	$	1.106593	$	1.131545		71,184
		2008	$	1.049832	$	1.106593		115,345
		2007	$	1.011405	$	1.049832		0
		2006	$	0.999983	$	1.011405		0
		2005	$	1.000000	$	0.999983		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.333173	$	1.265900		0
Subaccount Inception Date November 10, 2008		2010	$	1.234087	$	1.333173		0
		2009	$	1.012438	$	1.234087		0
		2008	$	1.000000	$	1.012438		0
Fidelity® VIP Index 500 Portfolio - Service Class 2		2011	$	1.078778	$	1.077593		0
Subaccount Inception Date January 12, 2004		2010	$	0.958136	$	1.078778		0
		2009	$	0.773022	$	0.958136		0
		2008	$	1.253594	$	0.773022		0
		2007	$	1.214612	$	1.253594		0
		2006	$	1.072124	$	1.214612		0
		2005	$	1.000000	$	1.072124		0
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.362737	$	1.313086		0
Subaccount Inception Date November 10, 2008		2010	$	1.261486	$	1.362737		0
		2009	$	0.989766	$	1.261486		0
		2008	$	1.000000	$	0.989766		0
ProFund VP Asia 30		2011	$	0.952684	$	0.682536		0
Subaccount Inception Date September 6, 2007		2010	$	0.852252	$	0.952684		0
		2009	$	0.563190	$	0.852252		0
		2008	$	1.167100	$	0.563190		0
		2007	$	1.000000	$	1.167100		0
ProFund VP Basic Materials		2011	$	1.073608	$	0.883429		0
Subaccount Inception Date September 6, 2007		2010	$	0.843507	$	1.073608		0
		2009	$	0.529358	$	0.843507		0
		2008	$	1.110571	$	0.529358		0
		2007	$	1.000000	$	1.110571		0
ProFund VP Bull		2011	$	0.787373	$	0.772720		0
Subaccount Inception Date June 21, 2007		2010	$	0.712684	$	0.787373		0
		2009	$	0.584043	$	0.712684		0
		2008	$	0.954883	$	0.584043		0
		2007	$	1.000000	$	0.954883		0
ProFund VP Consumer Services		2011	$	0.941064	$	0.974335		0
Subaccount Inception Date September 6, 2007		2010	$	0.789969	$	0.941064		0
		2009	$	0.615403	$	0.789969		0
		2008	$	0.913973	$	0.615403		0
		2007	$	1.000000	$	0.913973		0

61

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Emerging Markets		2011	$	0.962925	$	0.758787		0
Subaccount Inception Date September 6, 2007		2010	$	0.893887	$	0.962925		0
		2009	$	0.561019	$	0.893887		0
		2008	$	1.145606	$	0.561019		0
		2007	$	1.000000	$	1.145606		0
ProFund VP Europe 30		2011	$	0.738385	$	0.660252		0
Subaccount Inception Date September 6, 2007		2010	$	0.733101	$	0.738385		0
		2009	$	0.564670	$	0.733101		0
		2008	$	1.027680	$	0.564670		0
		2007	$	1.000000	$	1.027680		0
ProFund VP Falling US Dollar		2011	$	0.953250	$	0.910036		0
Subaccount Inception Date September 6, 2007		2010	$	0.997165	$	0.953250		0
		2009	$	0.983507	$	0.997165		0
		2008	$	1.056286	$	0.983507		0
		2007	$	1.000000	$	1.056286		0
ProFund VP Financials		2011	$	0.514432	$	0.435024		0
Subaccount Inception Date September 6, 2007		2010	$	0.472553	$	0.514432		0
		2009	$	0.418686	$	0.472553		0
		2008	$	0.862748	$	0.418686		0
		2007	$	1.000000	$	0.862748		0
ProFund VP International		2011	$	0.712169	$	0.598682		0
Subaccount Inception Date September 6, 2007		2010	$	0.673163	$	0.712169		0
		2009	$	0.550323	$	0.673163		0
		2008	$	1.008716	$	0.550323		0
		2007	$	1.000000	$	1.008716		0
ProFund VP Japan		2011	$	0.525266	$	0.419912		0
Subaccount Inception Date September 6, 2007		2010	$	0.572666	$	0.525266		0
		2009	$	0.528921	$	0.572666		0
		2008	$	0.911187	$	0.528921		0
		2007	$	1.000000	$	0.911187		0
ProFund VP Mid-Cap		2011	$	0.934983	$	0.879189		0
Subaccount Inception Date September 6, 2007		2010	$	0.768041	$	0.934983		0
		2009	$	0.588998	$	0.768041		0
		2008	$	0.973930	$	0.588998		0
		2007	$	1.000000	$	0.973930		0
ProFund VP Money Market		2011	$	0.961785	$	0.944076		0
Subaccount Inception Date June 21, 2007		2010	$	0.979862	$	0.961785		0
		2009	$	0.998149	$	0.979862		0
		2008	$	1.008694	$	0.998149		0
		2007	$	1.000000	$	1.008694		0
ProFund VP Oil & Gas		2011	$	0.882855	$	0.885883		0
Subaccount Inception Date September 6, 2007		2010	$	0.763933	$	0.882855		0
		2009	$	0.673985	$	0.763933		0
		2008	$	1.089359	$	0.673985		0
		2007	$	1.000000	$	1.089359		0
ProFund VP NASDAQ-100		2011	$	1.035715	$	1.031230		0
Subaccount Inception Date June 21, 2007		2010	$	0.892549	$	1.035715		0
		2009	$	0.598329	$	0.892549		0
		2008	$	1.060124	$	0.598329		0
		2007	$	1.000000	$	1.060124		0

62

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Pharmaceuticals		2011	$	0.891672	$	1.016247		0
Subaccount Inception Date September 6, 2007		2010	$	0.904299	$	0.891672		0
		2009	$	0.788284	$	0.904299		0
		2008	$	0.998017	$	0.788284		0
		2007	$	1.000000	$	0.998017		0
ProFund VP Precious Metals		2011	$	1.384335	$	1.097520		0
Subaccount Inception Date September 6, 2007		2010	$	1.061176	$	1.384335		0
		2009	$	0.799059	$	1.061176		0
		2008	$	1.176076	$	0.799059		0
		2007	$	1.000000	$	1.176076		0
ProFund VP Short Emerging Markets		2011	$	0.430209	$	0.467228		0
Subaccount Inception Date September 6, 2007		2010	$	0.537373	$	0.430209		0
		2009	$	1.067757	$	0.537373		0
		2008	$	0.822895	$	1.067757		0
		2007	$	1.000000	$	0.822895		0
ProFund VP Short International		2011	$	0.762562	$	0.761881		0
Subaccount Inception Date September 6, 2007		2010	$	0.910944	$	0.762562		0
		2009	$	1.331457	$	0.910944		0
		2008	$	0.981581	$	1.331457		0
		2007	$	1.000000	$	0.981581		0
ProFund VP Short NASDAQ-100		2011	$	0.636259	$	0.559007		0
Subaccount Inception Date September 6, 2007		2010	$	0.822646	$	0.636259		0
		2009	$	1.412709	$	0.822646		0
		2008	$	0.971634	$	1.412709		0
		2007	$	1.000000	$	0.971634		0
ProFund VP Short Small-Cap		2011	$	0.608662	$	0.543044		0
Subaccount Inception Date June 21, 2007		2010	$	0.872889	$	0.608662		0
		2009	$	1.315296	$	0.872889		0
		2008	$	1.080207	$	1.315296		0
		2007	$	1.000000	$	1.080207		0
ProFund VP Small-Cap		2011	$	0.868054	$	0.803725		0
Subaccount Inception Date June 21, 2007		2010	$	0.708827	$	0.868054		0
		2009	$	0.572929	$	0.708827		0
		2008	$	0.903841	$	0.572929		0
		2007	$	1.000000	$	0.903841		0
ProFund VP Small-Cap Value		2011	$	0.880831	$	0.828970		0
Subaccount Inception Date September 6, 2007		2010	$	0.735090	$	0.880831		0
		2009	$	0.622126	$	0.735090		0
		2008	$	0.914657	$	0.622126		0
		2007	$	1.000000	$	0.914657		0
ProFund VP Telecommunications		2011	$	0.732933	$	0.732729		0
Subaccount Inception Date September 6, 2007		2010	$	0.645581	$	0.732933		0
		2009	$	0.612972	$	0.645581		0
		2008	$	0.952532	$	0.612972		0
		2007	$	1.000000	$	0.952532		0
ProFund VP UltraSmall-Cap		2011	$	0.588543	$	0.468799		0
Subaccount Inception Date September 6, 2007		2010	$	0.404016	$	0.588543		0
		2009	$	0.293692	$	0.404016		0
		2008	$	0.885159	$	0.293692		0
		2007	$	1.000000	$	0.885159		0

63

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP U.S. Government Plus		2011	$	1.134344	$	1.597727		0
Subaccount Inception Date September 6, 2007		2010	$	1.049714	$	1.134344		0
		2009	$	1.587504	$	1.049714		0
		2008	$	1.080208	$	1.587504		0
		2007	$	1.000000	$	1.080208		0
ProFund VP Utilities		2011	$	0.824321	$	0.950634		0
Subaccount Inception Date September 6, 2007		2010	$	0.792799	$	0.824321		0
		2009	$	0.729543	$	0.792799		0
		2008	$	1.072774	$	0.729543		0
		2007	$	1.000000	$	1.072774		0
Access VP High Yield FundSM		2011	$	1.261722	$	1.272232		0
Subaccount Inception Date September 6, 2007		2010	$	1.104782	$	1.261722		0
		2009	$	0.962911	$	1.104782		0
		2008	$	1.029059	$	0.962911		0
		2007	$	1.000000	$	1.029059		0
			Separate Account Expense 1.80%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.226111	$	1.232876		48,966
Subaccount Inception Date January 12, 2004		2010	$	1.148198	$	1.226111		243,242
		2009	$	0.935815	$	1.148198		294,738
		2008	$	1.212160	$	0.935815		272,303
		2007	$	1.162635	$	1.212160		446,745
		2006	$	1.084366	$	1.162635		123,561
		2005	$	1.051177	$	1.084366		119,614
		2004	$	1.000000	$	1.051177		117,236
TA Asset Allocation - Growth - Service Class		2011	$	1.217780	$	1.128153		0
Subaccount Inception Date January 12, 2004		2010	$	1.081295	$	1.217780		0
		2009	$	0.849721	$	1.081295		15,351
		2008	$	1.435962	$	0.849721		14,406
		2007	$	1.359522	$	1.435962		247,303
		2006	$	1.200505	$	1.359522		203,708
		2005	$	1.091862	$	1.200505		50,507
		2004	$	1.000000	$	1.091862		24,604
TA Asset Allocation - Moderate - Service Class		2011	$	1.264417	$	1.245742		62,715
Subaccount Inception Date January 12, 2004		2010	$	1.168695	$	1.264417		181,705
		2009	$	0.942750	$	1.168695		606,169
		2008	$	1.300433	$	0.942750		676,248
		2007	$	1.228924	$	1.300433		1,090,274
		2006	$	1.124851	$	1.228924		978,078
		2005	$	1.068838	$	1.124851		435,484
		2004	$	1.000000	$	1.068838		407,908
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.261551	$	1.211088		29,505
Subaccount Inception Date January 12, 2004		2010	$	1.142537	$	1.261551		68,036
		2009	$	0.909593	$	1.142537		275,437
		2008	$	1.380547	$	0.909593		292,486
		2007	$	1.306758	$	1.380547		827,847
		2006	$	1.171596	$	1.306758		692,335
		2005	$	1.087101	$	1.171596		386,343
		2004	$	1.000000	$	1.087101		153,509

64

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.80%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA International Moderate Growth - Service Class		2011	$	0.943458	$	0.856962		41,875
Subaccount Inception Date May 1, 2006		2010	$	0.871200	$	0.943458		105,534
		2009	$	0.685764	$	0.871200		82,585
		2008	$	1.096293	$	0.685764		84,690
		2007	$	1.028754	$	1.096293		113,428
		2006	$	1.000000	$	1.028754		0
TA BlackRock Large Cap Value - Service Class		2011	$	1.194495	$	1.202246		0
Subaccount Inception Date January 12, 2004		2010	$	1.103931	$	1.194495		24,646
		2009	$	0.988274	$	1.103931		28,912
		2008	$	1.525927	$	0.988274		29,494
		2007	$	1.488800	$	1.525927		218,844
		2006	$	1.299548	$	1.488800		21,932
		2005	$	1.143055	$	1.299548		8,491
		2004	$	1.000000	$	1.143055		61,859
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.554862	$	1.435633		0
Subaccount Inception Date January 12, 2004		2010	$	1.372801	$	1.554862		547
		2009	$	1.050718	$	1.372801		15,672
		2008	$	1.860268	$	1.050718		19,165
		2007	$	2.034470	$	1.860268		58,183
		2006	$	1.459318	$	2.034470		69,664
		2005	$	1.312492	$	1.459318		22,497
		2004	$	1.000000	$	1.312492		22,275
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.991212	$	1.007272		0
Subaccount Inception Date January 12, 2004		2010	$	1.013286	$	0.991212		9,675
		2009	$	0.992388	$	1.013286		47,724
		2008	$	1.059562	$	0.992388		61,005
		2007	$	1.086312	$	1.059562		249,035
		2006	$	1.079144	$	1.086312		632,342
		2005	$	1.048963	$	1.079144		710,568
		2004	$	1.000000	$	1.048963		739,063
TA Janus Balanced - Service Class		2011	$	0.998105	$	0.874486		0
Subaccount Inception Date November 19, 2009		2010	$	0.985496	$	0.998105		0
		2009	$	0.986567	$	0.985496		0
TA Hanlon Balanced - Service Class		2011	$	0.967578	$	0.918114		0
Subaccount Inception Date November 19, 2009		2010	$	1.020318	$	0.967578		0
		2009	$	0.998154	$	1.020318		0
TA Hanlon Growth - Service Class		2011	$	0.995864	$	0.864655		0
Subaccount Inception Date Novembr 19, 2009		2010	$	1.020987	$	0.995864		0
		2009	$	0.996392	$	1.020987		0
TA Hanlon Growth and Income - Service Class		2011	$	0.982753	$	0.893389		0
Subaccount Inception Date November 19, 2009		2010	$	1.022067	$	0.982753		0
		2009	$	0.997261	$	1.022067		0
TA Hanlon Income - Service Class		2011	$	0.986747	$	0.997741		0
Subaccount Inception Date November 19, 2009		2010	$	1.003336	$	0.986747		0
		2009	$	0.999951	$	1.003336		0
TA Jennison Growth - Service Class		2011	$	1.047919	$	1.021487		0
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.047919		0

65

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.80%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA JPMorgan Core Bond - Service Class		2011	$	1.278831	$	1.347229		0
Subaccount Inception Date January 12, 2004		2010	$	1.205469	$	1.278831		33,551
		2009	$	1.121904	$	1.205469		47,559
		2008	$	1.085168	$	1.121904		46,621
		2007	$	1.036256	$	1.085168		154,768
		2006	$	1.017904	$	1.036256		10,106
		2005	$	1.015194	$	1.017904		25,428
		2004	$	1.000000	$	1.015194		24,714
TA JPMorgan Enhanced Index - Service Class		2011	$	1.106111	$	1.091749		0
Subaccount Inception Date January 12, 2004		2010	$	0.980382	$	1.106111		0
		2009	$	0.771789	$	0.980382		0
		2008	$	1.257615	$	0.771789		1,596
		2007	$	1.227566	$	1.257615		2,809
		2006	$	1.086946	$	1.227566		3,141
		2005	$	1.072162	$	1.086946		3,373
		2004	$	1.000000	$	1.072162		0
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.175510	$	1.085615		0
Subaccount Inception Date January 12, 2004		2010	$	0.941615	$	1.175510		0
		2009	$	0.751423	$	0.941615		0
		2008	$	1.205501	$	0.751423		804
		2007	$	1.218021	$	1.205501		64,242
		2006	$	1.048149	$	1.218021		66,788
		2005	$	1.027843	$	1.048149		60,434
		2004	$	1.000000	$	1.027843		115,638
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.651598	$	1.472845		0
Subaccount Inception Date January 12, 2004		2010	$	1.242784	$	1.651598		0
		2009	$	0.926732	$	0.926732		0
		2008	$	1.600917	$	1.600917		0
		2007	$	1.327949	$	1.327949		73,729
		2006	$	1.288677	$	1.288677		390,305
		2005	$	1.131551	$	1.131551		400,010
		2004	$	1.000000	$	1.000000		406,453
TA AEGON High Yield Bond - Service Class		2011	$	1.334201	$	1.370128		0
Subaccount Inception Date January 12, 2004		2010	$	1.210865	$	1.334201		0
		2009	$	0.839350	$	1.210865		0
		2008	$	1.146436	$	0.839350		0
		2007	$	1.147357	$	1.146436		6,932
		2006	$	1.055853	$	1.147357		2,343
		2005	$	1.058897	$	1.055853		0
		2004	$	1.000000	$	1.058897		0
TA MFS International Equity - Service Class		2011	$	0.894149	$	0.788612		0
Subaccount Inception Date May 1, 2007		2010	$	0.825181	$	0.894149		0
		2009	$	0.635246	$	0.825181		0
		2008	$	1.003320	$	0.635246		0
		2007	$	1.000000	$	1.003320		0
TA PIMCO Total Return - Service Class		2011	$	1.260908	$	1.312340		27,794
Subaccount Inception Date January 12, 2004		2010	$	1.200353	$	1.260908		44,735
		2009	$	1.055679	$	1.200353		15,376
		2008	$	1.108818	$	1.055679		3,172
		2007	$	1.037532	$	1.108818		4,431
		2006	$	1.016537	$	1.037532		4,792
		2005	$	1.014174	$	1.016537		16,807
		2004	$	1.000000	$	1.014174		17,123

66

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.80%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA T. Rowe Price Small Cap - Service Class		2011	$	1.377765	$	1.373928		0
Subaccount Inception Date January 12, 2004		2010	$	1.046212	$	1.377765		0
		2009	$	0.769931	$	1.046212		0
		2008	$	1.232545	$	0.769931		775
		2007	$	1.148359	$	1.232545		7,819
		2006	$	1.131203	$	1.148359		10,307
		2005	$	1.043050	$	1.131203		9,628
		2004	$	1.000000	$	1.043050		7,703
TA Third Avenue Value - Service Class		2011	$	1.329115	$	1.116404		0
Subaccount Inception Date January 12, 2004		2010	$	1.174840	$	1.329115		34,603
		2009	$	0.889090	$	1.174840		55,733
		2008	$	1.541622	$	0.889090		73,045
		2007	$	1.554845	$	1.541622		646,656
		2006	$	1.366974	$	1.554845		509,866
		2005	$	1.174568	$	1.366974		481,739
		2004	$	1.000000	$	1.174568		534,566
TA Efficient Markets - Service Class		2011	$	1.324610	$	1.272722		24,879
Subaccount Inception Date November 10, 2008		2010	$	1.199928	$	1.324610		26,475
		2009	$	1.036413	$	1.199928		0
		2008	$	1.000000	$	1.036413		0
TA Multi-Managed Balanced - Service Class		2011	$	1.349910	$	1.375842		74,968
Subaccount Inception Date January 12, 2004		2010	$	1.109256	$	1.349910		77,126
		2009	$	0.896650	$	1.109256		9,898
		2008	$	1.353859	$	0.896650		13,240
		2007	$	1.215742	$	1.353859		44,701
		2006	$	1.138089	$	1.215742		18,208
		2005	$	1.074797	$	1.138089		13,006
		2004	$	1.000000	$	1.074797		10,107
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.175673	$	1.174163		0
Subaccount Inception Date January 12, 2004		2010	$	1.096490	$	1.175673		2,400
		2009	$	0.851013	$	1.096490		4,638
		2008	$	1.375201	$	0.851013		5,059
		2007	$	1.183625	$	1.375201		17,585
		2006	$	1.088898	$	1.183625		11,156
		2005	$	1.070527	$	1.088898		6,244
		2004	$	1.000000	$	1.070527		4,933
TA WMC Diversified Equity - Service Class		2011	$	1.134882	$	1.034557		0
Subaccount Inception Date January 12, 2004		2010	$	0.991275	$	1.134882		26,118
		2009	$	0.789320	$	0.991275		31,682
		2008	$	1.430240	$	0.789320		37,761
		2007	$	1.266404	$	1.430240		342,450
		2006	$	1.088352	$	1.266404		2,120
		2005	$	1.033186	$	1.088352		0
		2004	$	1.000000	$	1.033186		0
TA WMC Diversified Growth - Service Class		2011	$	1.207586	$	1.139660		0
Subaccount Inception Date January 12, 2004		2010	$	1.046376	$	1.207586		8
		2009	$	0.826397	$	1.046376		10,441
		2008	$	1.563107	$	0.826397		10,922
		2007	$	1.371371	$	1.563107		204,682
		2006	$	1.288028	$	1.371371		570,704
		2005	$	1.127590	$	1.288028		472,170
		2004	$	1.000000	$	1.127590		504,708
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005064		0

67

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.80%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA AEGON Tactical Vanguard ETF -Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988334		0
TA AEGON Money Market - Service Class		2011	$	1.021012	$	1.003061		4,327
Subaccount Inception Date January 12, 2004		2010	$	1.039331	$	1.021012		49,193
		2009	$	1.057911	$	1.039331		464,032
		2008	$	1.054195	$	1.057911		540,857
		2007	$	1.024443	$	1.054195		34,543
		2006	$	0.998211	$	1.024443		155,495
		2005	$	0.990115	$	0.998211		69,449
		2004	$	1.000000	$	0.990115		146,039
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.832171	$	1.748385		0
Subaccount Inception Date May 1, 2004		2010	$	1.434148	$	1.832171		6,854
		2009	$	1.021666	$	1.434148		35,333
		2008	$	1.764466	$	1.021666		39,065
		2007	$	1.444156	$	1.764466		216,278
		2006	$	1.247782	$	1.444156		9,524
		2005	$	1.121464	$	1.247782		0
		2004	$	1.000000	$	1.121464		0
TA AEGON U.S. Government Securities - Service Class		2011	$	1.167350	$	1.230314		11,616
Subaccount Inception Date January 12, 2004		2010	$	1.140205	$	1.167350		52,284
		2009	$	1.113971	$	1.140205		24,201
		2008	$	1.055786	$	1.113971		24,354
		2007	$	1.016141	$	1.055786		17,402
		2006	$	1.003688	$	1.016141		0
		2005	$	1.001856	$	1.003688		0
		2004	$	1.000000	$	1.001856		0
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.072639	$	1.087169		0
Subaccount Inception Date November 19, 2009		2010	$	0.997901	$	1.072639		0
		2009	$	0.999951	$	0.997901		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.015898	$	1.012608		0
Subaccount Inception Date May 1, 2008		2010	$	0.934286	$	1.015898		0
		2009	$	0.816191	$	0.934286		0
		2008	$	1.000000	$	0.816191		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.967555	$	0.939702		0
Subaccount Inception Date May 1, 2008		2010	$	0.871619	$	0.967555		0
		2009	$	0.720336	$	0.871619		0
		2008	$	1.000000	$	0.720336		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.150649	$	1.086040		0
Subaccount Inception Date November 19, 2009		2010	$	1.023848	$	1.150649		0
		2009	$	0.999951	$	1.023848		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.512086	$	1.382643		0
Subaccount Inception Date January 12, 2004		2010	$	1.152331	$	1.512086		0
		2009	$	0.732620	$	1.152331		0
		2008	$	1.392557	$	0.732620		0
		2007	$	1.159827	$	1.392557		7,743
		2006	$	1.077317	$	1.159827		2,612
		2005	$	1.021931	$	1.077317		311
		2004	$	1.000000	$	1.021931		316

68

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.80%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.167350	$	1.230314		0
Subaccount Inception Date January 12, 2004		2010	$	1.140205	$	1.167350		3,127
		2009	$	1.113971	$	1.140205		99,024
		2008	$	1.055786	$	1.113971		176,795
		2007	$	1.016141	$	1.055786		8,022
		2006	$	1.003688	$	1.016141		0
		2005	$	1.001856	$	1.003688		0
		2004	$	1.000000	$	1.001856		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B		2011	$	1.335965	$	1.269795		32,000
Subaccount Inception Date November 10, 2008		2010	$	1.235456	$	1.335965		28,037
		2009	$	1.012578	$	1.235456		680
		2008	$	1.000000	$	1.012578		0
Fidelity® VIP Index 500 Portfolio - Service Class 2		2011	$	1.110646	$	1.110511		0
Subaccount Inception Date January 12, 2004		2010	$	0.985477	$	1.110646		0
		2009	$	0.794307	$	0.985477		2,458
		2008	$	1.286851	$	0.794307		2,816
		2007	$	1.245599	$	1.286851		11,135
		2006	$	1.098396	$	1.245599		8,220
		2005	$	1.069396	$	1.098396		1,277
		2004	$	1.000000	$	1.069396		0
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4		2011	$	1.365595	$	1.317132		0
Subaccount Inception Date November 10, 2008		2010	$	1.262890	$	1.365595		0
		2009	$	0.989903	$	1.262890		0
		2008	$	1.000000	$	0.989903		0
ProFund VP Asia 30		2011	$	0.955791	$	0.685443		0
Subaccount Inception Date September 6, 2007		2010	$	0.854199	$	0.955791		0
		2009	$	0.563929	$	0.854199		0
		2008	$	1.167472	$	0.563929		0
		2007	$	1.000000	$	1.167472		0
ProFund VP Basic Materials		2011	$	1.077156	$	0.887229		0
Subaccount Inception Date September 6, 2007		2010	$	0.845461	$	1.077156		0
		2009	$	0.530060	$	0.845461		0
		2008	$	1.110931	$	0.530060		0
		2007	$	1.000000	$	1.110931		0
ProFund VP Bull		2011	$	0.790103	$	0.776169		0
Subaccount Inception Date June 21, 2007		2010	$	0.714456	$	0.790103		0
		2009	$	0.584927	$	0.714456		0
		2008	$	0.955391	$	0.584927		0
		2007	$	1.000000	$	0.955391		0
ProFund VP Consumer Services		2011	$	0.944142	$	0.978484		0
Subaccount Inception Date September 6, 2007		2010	$	0.791777	$	0.944142		0
		2009	$	0.616206	$	0.791777		0
		2008	$	0.914264	$	0.616206		0
		2007	$	1.000000	$	0.914264		0
ProFund VP Emerging Markets		2011	$	0.966076	$	0.762025		0
Subaccount Inception Date September 6, 2007		2010	$	0.895927	$	0.966076		0
		2009	$	0.561754	$	0.895927		0
		2008	$	1.145969	$	0.561754		0
		2007	$	1.000000	$	1.145969		0

69

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.80%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Europe 30		2011	$	0.740792	$	0.663052		0
Subaccount Inception Date September 6, 2007		2010	$	0.734770	$	0.740792		0
		2009	$	0.565411	$	0.734770		0
		2008	$	1.028008	$	0.565411		0
		2007	$	1.000000	$	1.028008		0
ProFund VP Falling US Dollar		2011	$	0.956370	$	0.913911		0
Subaccount Inception Date September 6, 2007		2010	$	0.999448	$	0.956370		0
		2009	$	0.984789	$	0.999448		0
		2008	$	1.056621	$	0.984789		0
		2007	$	1.000000	$	1.056621		0
ProFund VP Financials		2011	$	0.516114	$	0.436873		0
Subaccount Inception Date September 6, 2007		2010	$	0.473632	$	0.516114		0
		2009	$	0.419232	$	0.473632		0
		2008	$	0.863020	$	0.419232		0
		2007	$	1.000000	$	0.863020		0
ProFund VP International		2011	$	0.714494	$	0.601232		0
Subaccount Inception Date September 6, 2007		2010	$	0.674702	$	0.714494		0
		2009	$	0.551042	$	0.674702		0
		2008	$	1.009042	$	0.551042		0
		2007	$	1.000000	$	1.009042		0
ProFund VP Japan		2011	$	0.526999	$	0.421713		0
Subaccount Inception Date September 6, 2007		2010	$	0.573994	$	0.526999		0
		2009	$	0.529615	$	0.573994		0
		2008	$	0.911470	$	0.529615		0
		2007	$	1.000000	$	0.911470		0
ProFund VP Mid-Cap		2011	$	0.938061	$	0.882957		0
Subaccount Inception Date September 6, 2007		2010	$	0.769815	$	0.938061		0
		2009	$	0.589773	$	0.769815		0
		2008	$	0.974242	$	0.589773		0
		2007	$	1.000000	$	0.974242		0
ProFund VP Money Market		2011	$	0.965068	$	0.948247		0
Subaccount Inception Date June 21, 2007		2010	$	0.982242	$	0.965068		0
		2009	$	0.999623	$	0.982242		0
		2008	$	1.009221	$	0.999623		0
		2007	$	1.000000	$	1.009221		0
ProFund VP Oil & Gas		2011	$	0.885743	$	0.889653		0
Subaccount Inception Date September 6, 2007		2010	$	0.765677	$	0.885743		1,132
		2009	$	0.674860	$	0.765677		4,359
		2008	$	1.089701	$	0.674860		4,978
		2007	$	1.000000	$	1.089701		0
ProFund VP NASDAQ-100		2011	$	1.039348	$	1.035867		0
Subaccount Inception Date June 21, 2007		2010	$	0.894802	$	1.039348		0
		2009	$	0.599242	$	0.894802		0
		2008	$	1.060682	$	0.599242		0
		2007	$	1.000000	$	1.060682		0
ProFund VP Pharmaceuticals		2011	$	0.894595	$	1.020573		0
Subaccount Inception Date September 6, 2007		2010	$	0.906375	$	0.894595		0
		2009	$	0.789324	$	0.906375		0
		2008	$	0.998341	$	0.789324		0
		2007	$	1.000000	$	0.998341		0

70

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.80%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Precious Metals		2011	$	1.388878	$	1.102199		0
Subaccount Inception Date September 6, 2007		2010	$	1.063614	$	1.388878		0
		2009	$	0.800110	$	1.063614		0
		2008	$	1.176452	$	0.800110		0
		2007	$	1.000000	$	1.176452		0
ProFund VP Short Emerging Markets		2011	$	0.431616	$	0.469204		0
Subaccount Inception Date September 6, 2007		2010	$	0.538600	$	0.431616		0
		2009	$	1.069142	$	0.538600		0
		2008	$	0.823154	$	1.069142		0
		2007	$	1.000000	$	0.823154		0
ProFund VP Short International		2011	$	0.765072	$	0.765134		0
Subaccount Inception Date September 6, 2007		2010	$	0.913034	$	0.765072		0
		2009	$	1.333202	$	0.913034		0
		2008	$	0.981898	$	1.333202		0
		2007	$	1.000000	$	0.981898		0
ProFund VP Short NASDAQ-100		2011	$	0.638340	$	0.561383		0
Subaccount Inception Date September 6, 2007		2010	$	0.824525	$	0.638340		0
		2009	$	1.414547	$	0.824525		0
		2008	$	0.971941	$	1.414547		0
		2007	$	1.000000	$	0.971941		0
ProFund VP Short Small-Cap		2011	$	0.610778	$	0.545464		0
Subaccount Inception Date June 21, 2007		2010	$	0.875064	$	0.610778		0
		2009	$	1.317261	$	0.875064		0
		2008	$	1.080762	$	1.317261		0
		2007	$	1.000000	$	1.080762		0
ProFund VP Small-Cap		2011	$	0.871057	$	0.807286		0
Subaccount Inception Date June 21, 2007		2010	$	0.710581	$	0.871057		0
		2009	$	0.573789	$	0.710581		0
		2008	$	0.904319	$	0.573789		0
		2007	$	1.000000	$	0.904319		0
ProFund VP Small-Cap Value		2011	$	0.883705	$	0.832490		0
Subaccount Inception Date September 6, 2007		2010	$	0.736766	$	0.883705		0
		2009	$	0.622942	$	0.736766		0
		2008	$	0.914950	$	0.622942		0
		2007	$	1.000000	$	0.914950		0
ProFund VP Telecommunications		2011	$	0.735321	$	0.735837		0
Subaccount Inception Date September 6, 2007		2010	$	0.647053	$	0.735321		0
		2009	$	0.613770	$	0.647053		0
		2008	$	0.952838	$	0.613770		0
		2007	$	1.000000	$	0.952838		0
ProFund VP UltraSmall-Cap		2011	$	0.590449	$	0.470777		0
Subaccount Inception Date September 6, 2007		2010	$	0.404920	$	0.590449		0
		2009	$	0.294072	$	0.404920		0
		2008	$	0.885444	$	0.294072		0
		2007	$	1.000000	$	0.885444		0
ProFund VP U.S. Government Plus		2011	$	1.138054	$	1.604503		0
Subaccount Inception Date September 6, 2007		2010	$	1.052113	$	1.138054		0
		2009	$	1.589561	$	1.052113		0
		2008	$	1.080550	$	1.589561		0
		2007	$	1.000000	$	1.080550		0

71

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.80%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Utilities		2011	$	0.826984	$	0.954638		0
Subaccount Inception Date September 6, 2007		2010	$	0.794599	$	0.826984		0
		2009	$	0.730488	$	0.794599		0
		2008	$	1.073114	$	0.730488		0
		2007	$	1.000000	$	1.073114		0
Access VP High Yield FundSM		2011	$	1.265850	$	1.277656		0
Subaccount Inception Date September 6, 2007		2010	$	1.107313	$	1.265850		0
		2009	$	0.964171	$	1.107313		0
		2008	$	1.029388	$	0.964171		0
		2007	$	1.000000	$	1.029388		0
	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.230351	$	1.237743		239,504
Subaccount Inception Date January 12, 2004		2010	$	1.151608	$	1.230351		1,532,537
		2009	$	0.938124	$	1.151608		1,861,823
		2008	$	1.214542	$	0.938124		220,025
		2007	$	1.164335	$	1.214542		354,175
		2006	$	1.085416	$	1.164335		459,235
		2005	$	1.051679	$	1.085416		365,544
		2004	$	1.000000	$	1.051679		153,645
TA Asset Allocation - Growth - Service Class		2011	$	1.221935	$	1.132555		118,103
Subaccount Inception Date January 12, 2004		2010	$	1.084459	$	1.221935		91,152
		2009	$	0.851789	$	1.084459		108,380
		2008	$	1.438753	$	0.851789		131,051
		2007	$	1.361483	$	1.438753		1,705,584
		2006	$	1.201655	$	1.361483		494,105
		2005	$	1.092380	$	1.201655		588,842
		2004	$	1.000000	$	1.092380		273,496
TA Asset Allocation - Moderate - Service Class		2011	$	1.268751	$	1.250618		2,615,293
Subaccount Inception Date January 12, 2004		2010	$	1.172122	$	1.268751		2,907,014
		2009	$	0.945057	$	1.172122		3,169,887
		2008	$	1.302964	$	0.945057		3,161,333
		2007	$	1.230706	$	1.302964		2,051,024
		2006	$	1.125930	$	1.230706		1,716,597
		2005	$	1.069339	$	1.125930		1,596,431
		2004	$	1.000000	$	1.069339		370,007
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.265894	$	1.215842		2,534,131
Subaccount Inception Date January 12, 2004		2010	$	1.145900	$	1.265894		2,711,445
		2009	$	0.911831	$	1.145900		2,897,668
		2008	$	1.383254	$	0.911831		3,177,866
		2007	$	1.308673	$	1.383254		3,002,959
		2006	$	1.172733	$	1.308673		2,092,479
		2005	$	1.087623	$	1.172733		1,083,909
		2004	$	1.000000	$	1.087623		322,064
TA International Moderate Growth - Service Class		2011	$	0.945602	$	0.859336		258,880
Subaccount Inception Date May 1, 2006		2010	$	0.872753	$	0.945602		266,380
		2009	$	0.686639	$	0.872753		276,406
		2008	$	1.097167	$	0.686639		271,996
		2007	$	1.029080	$	1.097167		352,778
		2006	$	1.000000	$	1.029080		231,775

72

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
TA BlackRock Large Cap Value - Service Class		2011	$	1.198577	$	1.206948		54,397
Subaccount Inception Date January 12, 2004		2010	$	1.107158	$	1.198577		70,308
		2009	$	0.990686	$	1.107158		28,558
		2008	$	1.528900	$	0.990686		5,072
		2007	$	1.490970	$	1.528900		66,578
		2006	$	1.300801	$	1.490970		70,040
		2005	$	1.143595	$	1.300801		18,461
		2004	$	1.000000	$	1.143595		3,633
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.560224	$	1.441295		24,817
Subaccount Inception Date January 12, 2004		2010	$	1.376860	$	1.560224		38,003
		2009	$	1.053299	$	1.376860		35,676
		2008	$	1.863929	$	1.053299		42,691
		2007	$	2.037464	$	1.863929		65,632
		2006	$	1.460741	$	2.037464		120,825
		2005	$	1.313124	$	1.460741		52,013
		2004	$	1.000000	$	1.313124		4,429
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.994627	$	1.011240		42,484
Subaccount Inception Date January 12, 2004		2010	$	1.016262	$	0.994627		59,223
		2009	$	0.994816	$	1.016262		75,549
		2008	$	1.061631	$	0.994816		90,636
		2007	$	1.087899	$	1.061631		160,602
		2006	$	1.080182	$	1.087899		152,835
		2005	$	1.049446	$	1.080182		239,449
		2004	$	1.000000	$	1.049446		47,292
TA Janus Balanced - Service Class		2011	$	0.998657	$	0.875390		0
Subaccount Inception Date November 19, 2009		2010	$	0.985557	$	0.998657		0
		2009	$	0.986568	$	0.985557		0
TA Hanlon Balanced - Service Class		2011	$	0.968114	$	0.919076		0
Subaccount Inception Date November 19, 2009		2010	$	1.020377	$	0.968114		0
		2009	$	0.998156	$	1.020377		0
TA Hanlon Growth - Service Class		2011	$	0.996415	$	0.865554		1,318
Subaccount Inception Date November 19, 2009		2010	$	1.021045	$	0.996415		1,318
		2009	$	0.996394	$	1.021045		0
TA Hanlon Growth and Income - Service Class		2011	$	0.983287	$	0.894314		0
Subaccount Inception Date November 9, 2009		2010	$	1.022125	$	0.983287		0
		2009	$	0.997262	$	1.022125		0
TA Hanlon Income - Service Class		2011	$	0.987297	$	0.998774		83,087
Subaccount Inception Date November 9, 2009		2010	$	1.003388	$	0.987297		83,867
		2009	$	0.999952	$	1.003388		0
TA Jennison Growth - Service Class		2011	$	1.048271	$	1.022323		2,443
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.048271		2,445
TA JPMorgan Core Bond - Service Class		2011	$	1.283235	$	1.352552		93,665
Subaccount Inception Date January 12, 2004		2010	$	1.209035	$	1.283235		95,884
		2009	$	1.124663	$	1.209035		44,324
		2008	$	1.087295	$	1.124663		45,841
		2007	$	1.037782	$	1.087295		13,632
		2006	$	1.018906	$	1.037782		826
		2005	$	1.015688	$	1.018906		328
		2004	$	1.000000	$	1.015688		318

73

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
TA JPMorgan Enhanced Index - Service Class		2011	$	1.109905	$	1.096024		0
Subaccount Inception Date January 12, 2004		2010	$	0.983274	$	1.109905		0
		2009	$	0.773672	$	0.983274		0
		2008	$	1.260060	$	0.773672		0
		2007	$	1.229336	$	1.260060		0
		2006	$	1.087983	$	1.229336		0
		2005	$	1.072669	$	1.087983		0
		2004	$	1.000000	$	1.072669		0
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.179554	$	1.089882		2,184
Subaccount Inception Date January 12, 2004		2010	$	0.944393	$	1.179554		2,186
		2009	$	0.753269	$	0.944393		4,643
		2008	$	1.207860	$	0.753269		4,647
		2007	$	1.219792	$	1.207860		16,178
		2006	$	1.049153	$	1.219792		12,703
		2005	$	1.028330	$	1.049153		9,871
		2004	$	1.000000	$	1.028330		8,401
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.657304	$	1.478654		0
Subaccount Inception Date January 12, 2004		2010	$	1.246471	$	1.657304		15,558
		2009	$	0.929019	$	1.246471		20,109
		2008	$	1.604064	$	0.929019		33,938
		2007	$	1.329900	$	1.604064		64,444
		2006	$	1.289942	$	1.329900		96,359
		2005	$	1.132100	$	1.289942		39,665
		2004	$	1.000000	$	1.132100		35,590
TA AEGON High Yield Bond - Service Class		2011	$	1.338761	$	1.375486		7,373
Subaccount Inception Date January 12, 2004		2010	$	1.214406	$	1.338761		10,120
		2009	$	0.841391	$	1.214406		57,994
		2008	$	1.148656	$	0.841391		2,473
		2007	$	1.149023	$	1.148656		5,341
		2006	$	1.056876	$	1.149023		5,024
		2005	$	1.059404	$	1.056876		0
		2004	$	1.000000	$	1.059404		0
TA MFS International Equity - Service Class		2011	$	0.895751	$	0.790410		46,827
Subaccount Inception Date May 1, 2007		2010	$	0.826264	$	0.895751		31,077
		2009	$	0.635768	$	0.826264		584
		2008	$	1.003646	$	0.635768		3,808
		2007	$	1.000000	$	1.003646		4,823
TA PIMCO Total Return - Service Class		2011	$	1.265218	$	1.317487		219,943
Subaccount Inception Date January 12, 2004		2010	$	1.203867	$	1.265218		214,535
		2009	$	1.058247	$	1.203867		127,839
		2008	$	1.110967	$	1.058247		80,515
		2007	$	1.039039	$	1.110967		90,033
		2006	$	1.017510	$	1.039039		64,825
		2005	$	1.014644	$	1.017510		22,078
		2004	$	1.000000	$	1.014644		90
TA T. Rowe Price Small Cap - Service Class		2011	$	1.382451	$	1.379275		19,401
Subaccount Inception Date January 12, 2004		2010	$	1.049271	$	1.382451		22,809
		2009	$	0.771794	$	1.049271		7,088
		2008	$	1.234936	$	0.771794		6,680
		2007	$	1.150022	$	1.234936		14,287
		2006	$	1.132292	$	1.150022		1,104
		2005	$	1.043546	$	1.132292		3,291
		2004	$	1.000000	$	1.043546		548

74

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Third Avenue Value - Service Class		2011	$	1.333641	$	1.120751		60,699
Subaccount Inception Date January 12, 2004		2010	$	1.178265	$	1.333641		30,267
		2009	$	0.891235	$	1.178265		31,777
		2008	$	1.544593	$	0.891235		43,190
		2007	$	1.557086	$	1.544593		163,978
		2006	$	1.368276	$	1.557086		203,584
		2005	$	1.175119	$	1.368276		60,242
		2004	$	1.000000	$	1.175119		42,094
TA Efficient Markets - Service Class		2011	$	1.326002	$	1.274690		1,530
Subaccount Inception Date November 10, 2008		2010	$	1.200602	$	1.326002		1,512
		2009	$	1.036485	$	1.200602		1,546
		2008	$	1.000000	$	1.036485		0
TA Multi-Managed Balanced - Service Class		2011	$	1.354553	$	1.388050		91,298
Subaccount Inception Date January 12, 2004		2010	$	1.112525	$	1.354553		91,446
		2009	$	0.898840	$	1.112525		63,925
		2008	$	1.356499	$	0.898840		70,967
		2007	$	1.217511	$	1.356499		105,868
		2006	$	1.139187	$	1.217511		54,912
		2005	$	1.075310	$	1.139187		7,572
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.179694	$	1.178750		2,247
Subaccount Inception Date January 12, 2004		2010	$	1.099702	$	1.179694		2,250
		2009	$	0.853083	$	1.099702		48,260
		2008	$	1.377874	$	0.853083		2,256
		2007	$	1.185346	$	1.377874		3,777
		2006	$	1.089950	$	1.185346		307
		2005	$	1.071037	$	1.089950		208
		2004	$	1.000000	$	1.071037		91
TA WMC Diversified Equity - Service Class		2011	$	1.138780	$	1.038612		0
Subaccount Inception Date January 12, 2004		2010	$	0.994186	$	1.138780		49,329
		2009	$	0.791252	$	0.994186		58,223
		2008	$	1.433038	$	0.791252		59,793
		2007	$	1.268253	$	1.433038		86,373
		2006	$	1.089405	$	1.268253		34,306
		2005	$	1.033675	$	1.089405		7,939
		2004	$	1.000000	$	1.033675		4,453
TA WMC Diversified Growth - Service Class		2011	$	1.211734	$	1.144134		47,964
Subaccount Inception Date January 12, 2004		2010	$	1.049462	$	1.211734		9,414
		2009	$	0.828434	$	1.049462		28,217
		2008	$	1.566183	$	0.828434		32,204
		2007	$	1.373381	$	1.566183		95,973
		2006	$	1.289270	$	1.373381		130,422
		2005	$	1.128132	$	1.289270		60,101
		2004	$	1.000000	$	1.128132		38,733
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005094		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988360		0

75

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
TA AEGON Money Market - Service Class		2011	$	1.024490	$	1.006982		1,780,020
Subaccount Inception Date January 12, 2004		2010	$	1.042372	$	1.024490		419,467
		2009	$	1.060513	$	1.042372		1,058,068
		2008	$	1.056279	$	1.060513		3,250,627
		2007	$	1.025967	$	1.056279		452,032
		2006	$	0.999196	$	1.025967		552,884
		2005	$	0.990590	$	0.999196		7,303
		2004	$	1.000000	$	0.990590		0
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.838141	$	1.754945		10,393
Subaccount Inception Date May 1, 2004		2010	$	1.438119	$	1.838141		7,611
		2009	$	1.023994	$	1.438119		14,765
		2008	$	1.767617	$	1.023994		101,918
		2007	$	1.446022	$	1.767617		133,360
		2006	$	1.248786	$	1.446022		127,006
		2005	$	1.121826	$	1.248786		23,081
		2004	$	1.000000	$	1.121826		6,613
TA AEGON U.S. Government Securities - Service Class		2011	$	1.171350	$	1.235129		90,314
Subaccount Inception Date January 12, 2004		2010	$	1.143552	$	1.171350		82,950
		2009	$	1.116690	$	1.143552		176,455
		2008	$	1.057846	$	1.116690		102,273
		2007	$	1.017623	$	1.057846		105,776
		2006	$	1.004661	$	1.017623		76,812
		2005	$	1.002340	$	1.004661		11,246
		2004	$	1.000000	$	1.002340		0
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.073221	$	1.088293		0
Subaccount Inception Date November 19, 2009		2010	$	0.997954	$	1.073221		0
		2009	$	0.999952	$	0.997954		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.017230	$	1.014433		3,713
Subaccount Inception Date May 1, 2008		2010	$	0.935049	$	1.017230		3,751
		2009	$	0.816459	$	0.935049		3,783
		2008	$	1.000000	$	0.816459		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.968815	$	0.941380		2,592
Subaccount Inception Date May 1, 2008		2010	$	0.872328	$	0.968815		2,589
		2009	$	0.720567	$	0.872328		2,663
		2008	$	1.000000	$	0.720567		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.151278	$	1.087159		0
Subaccount Inception Date November 19, 2009		2010	$	1.023908	$	1.151278		0
		2009	$	0.999952	$	1.023908		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.517254	$	1.381252		23,118
Subaccount Inception Date January 12, 2004		2010	$	1.155700	$	1.517254		33,306
		2009	$	0.734404	$	1.155700		10,082
		2008	$	1.395276	$	0.734404		1,300
		2007	$	1.161519	$	1.395276		67,105
		2006	$	1.078365	$	1.161519		1,968
		2005	$	1.022418	$	1.078365		2,010
		2004	$	1.000000	$	1.022418		364

76

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.171350	$	1.235129		283,465
Subaccount Inception Date January 12, 2004		2010	$	1.143552	$	1.171350		267,266
		2009	$	1.116690	$	1.143552		531,815
		2008	$	1.057846	$	1.116690		914,588
		2007	$	1.017623	$	1.057846		11,085
		2006	$	1.004661	$	1.017623		0
		2005	$	1.002340	$	1.004661		0
		2004	$	1.000000	$	1.002340		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.337375	$	1.271752		5,657
Subaccount Inception Date November 10, 2008		2010	$	1.236150	$	1.337375		5,715
		2009	$	1.012647	$	1.236150		5,765
		2008	$	1.000000	$	1.012647		0
Fidelity® VIP Index 500 Portfolio - Service Class 2		2011	$	1.114472	$	1.114881		10,173
Subaccount Inception Date January 12, 2004		2010	$	0.988381	$	1.114472		10,237
		2009	$	0.796258	$	0.988381		16,209
		2008	$	1.289361	$	0.796258		16,495
		2007	$	1.247419	$	1.289361		40,406
		2006	$	1.099454	$	1.247419		25,717
		2005	$	1.069906	$	1.099454		0
		2004	$	1.000000	$	1.069906		0
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.367020	$	1.319158		7,177
Subaccount Inception Date November 10, 2008		2010	$	1.263591	$	1.367020		24,214
		2009	$	0.989970	$	1.263591		24,278
		2008	$	1.000000	$	0.989970		0
ProFund VP Asia 30		2011	$	0.957367	$	0.686900		518
Subaccount Inception Date September 6, 2007		2010	$	0.855179	$	0.957367		1,316
		2009	$	0.564296	$	0.855179		7,180
		2008	$	1.167661	$	0.564296		24,652
		2007	$	1.000000	$	1.167661		0
ProFund VP Basic Materials		2011	$	1.078912	$	0.889112		498
Subaccount Inception Date September 6, 2007		2010	$	0.846425	$	1.078912		46,618
		2009	$	0.530406	$	0.846425		0
		2008	$	1.111106	$	0.530406		17,989
		2007	$	1.000000	$	1.111106		0
ProFund VP Bull		2011	$	0.791485	$	0.777903		0
Subaccount Inception Date June 21, 2007		2010	$	0.715356	$	0.791485		0
		2009	$	0.585372	$	0.715356		3,497
		2008	$	0.955630	$	0.585372		0
		2007	$	1.000000	$	0.955630		0
ProFund VP Consumer Services		2011	$	0.945672	$	0.980547		2,320
Subaccount Inception Date September 6, 2007		2010	$	0.792660	$	0.945672		0
		2009	$	0.616599	$	0.792660		0
		2008	$	0.914407	$	0.616599		0
		2007	$	1.000000	$	0.914407		0
ProFund VP Emerging Markets		2011	$	0.967667	$	0.763653		0
Subaccount Inception Date September 6, 2007		2010	$	0.896966	$	0.967667		5,190
		2009	$	0.562123	$	0.896966		15,806
		2008	$	1.146154	$	0.562123		645
		2007	$	1.000000	$	1.146154		0

77

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Europe 30		2011	$	0.742025	$	0.664483		0
Subaccount Inception Date September 6, 2007		2010	$	0.735625	$	0.742025		0
		2009	$	0.565783	$	0.735625		0
		2008	$	1.028172	$	0.565783		0
		2007	$	1.000000	$	1.028172		0
ProFund VP Falling US Dollar		2011	$	0.957951	$	0.915860		0
Subaccount Inception Date September 6, 2007		2010	$	1.000602	$	0.957951		0
		2009	$	0.985437	$	1.000602		0
		2008	$	1.056785	$	0.985437		11,724
		2007	$	1.000000	$	1.056785		0
ProFund VP Financials		2011	$	0.516957	$	0.437794		0
Subaccount Inception Date September 6, 2007		2010	$	0.474170	$	0.516957		0
		2009	$	0.419508	$	0.474170		0
		2008	$	0.863162	$	0.419508		65,758
		2007	$	1.000000	$	0.863162		0
ProFund VP International		2011	$	0.715668	$	0.602519		0
Subaccount Inception Date September 6, 2007		2010	$	0.675475	$	0.715668		35,641
		2009	$	0.551396	$	0.675475		0
		2008	$	1.009197	$	0.551396		0
		2007	$	1.000000	$	1.009197		4,690
ProFund VP Japan		2011	$	0.527863	$	0.422612		0
Subaccount Inception Date September 6, 2007		2010	$	0.574643	$	0.527863		0
		2009	$	0.529962	$	0.574643		0
		2008	$	0.911622	$	0.529962		0
		2007	$	1.000000	$	0.911622		0
ProFund VP Mid-Cap		2011	$	0.939583	$	0.884826		22,940
Subaccount Inception Date September 6, 2007		2010	$	0.770689	$	0.939583		2,341
		2009	$	0.590154	$	0.770689		5,634
		2008	$	0.974391	$	0.590154		0
		2007	$	1.000000	$	0.974391		0
ProFund VP Money Market		2011	$	0.966767	$	0.950377		0
Subaccount Inception Date June 21, 2007		2010	$	0.983504	$	0.966767		0
		2009	$	1.000410	$	0.983504		61,663
		2008	$	1.009479	$	1.000410		20,220
		2007	$	1.000000	$	1.009479		20,909
ProFund VP Oil & Gas		2011	$	0.887195	$	0.891555		11,186
Subaccount Inception Date September 6, 2007		2010	$	0.766555	$	0.887195		9,731
		2009	$	0.675308	$	0.766555		42,391
		2008	$	1.089878	$	0.675308		23,257
		2007	$	1.000000	$	1.089878		1,292
ProFund VP NASDAQ-100		2011	$	1.041139	$	1.038169		14,673
Subaccount Inception Date June 21, 2007		2010	$	0.895902	$	1.041139		55,767
		2009	$	0.599690	$	0.895902		14,579
		2008	$	1.060951	$	0.599690		0
		2007	$	1.000000	$	1.060951		0
ProFund VP Pharmaceuticals		2011	$	0.896047	$	1.022740		11,468
Subaccount Inception Date September 6, 2007		2010	$	0.907404	$	0.896047		0
		2009	$	0.789835	$	0.907404		0
		2008	$	0.998501	$	0.789835		0
		2007	$	1.000000	$	0.998501		0

78

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Precious Metals		2011	$	1.391139	$	1.104531		4,070
Subaccount Inception Date September 6, 2007		2010	$	1.064828	$	1.391139		19,300
		2009	$	0.800633	$	1.064828		28,210
		2008	$	1.176643	$	0.800633		36,320
		2007	$	1.000000	$	1.176643		7,106
ProFund VP Short Emerging Markets		2011	$	0.432326	$	0.470208		2,814
Subaccount Inception Date September 6, 2007		2010	$	0.539218	$	0.432326		1,328
		2009	$	1.069837	$	0.539218		1,578
		2008	$	0.823283	$	1.069837		1,754
		2007	$	1.000000	$	0.823283		0
ProFund VP Short International		2011	$	0.766323	$	0.766752		1,596
Subaccount Inception Date September 6, 2007		2010	$	0.914083	$	0.766323		2,601
		2009	$	1.334074	$	0.914083		17,978
		2008	$	0.982053	$	1.334074		3,372
		2007	$	1.000000	$	0.982053		0
ProFund VP Short NASDAQ-100		2011	$	0.639386	$	0.562576		112
Subaccount Inception Date September 6, 2007		2010	$	0.825467	$	0.639386		862
		2009	$	1.415466	$	0.825467		18,101
		2008	$	0.972093	$	1.415466		3,115
		2007	$	1.000000	$	0.972093		0
ProFund VP Short Small-Cap		2011	$	0.611834	$	0.546672		0
Subaccount Inception Date June 21, 2007		2010	$	0.876154	$	0.611834		419
		2009	$	1.318255	$	0.876154		4,540
		2008	$	1.081043	$	1.318255		5,066
		2007	$	1.000000	$	1.081043		9,789
ProFund VP Small-Cap		2011	$	0.872570	$	0.809081		0
Subaccount Inception Date June 21, 2007		2010	$	0.711469	$	0.872570		0
		2009	$	0.574224	$	0.711469		0
		2008	$	0.904546	$	0.574224		0
		2007	$	1.000000	$	0.904546		0
ProFund VP Small-Cap Value		2011	$	0.855159	$	0.834272		0
Subaccount Inception Date September 6, 2007		2010	$	0.737611	$	0.855159		609
		2009	$	0.623348	$	0.737611		600
		2008	$	0.915094	$	0.623348		0
		2007	$	1.000000	$	0.915094		0
ProFund VP Telecommunications		2011	$	0.736527	$	0.737402		0
Subaccount Inception Date September 6, 2007		2010	$	0.647800	$	0.736527		0
		2009	$	0.614172	$	0.647800		0
		2008	$	0.952985	$	0.614172		0
		2007	$	1.000000	$	0.952985		0
ProFund VP UltraSmall-Cap		2011	$	0.591430	$	0.471791		0
Subaccount Inception Date September 6, 2007		2010	$	0.405393	$	0.591430		0
		2009	$	0.294265	$	0.405393		7,536
		2008	$	0.885583	$	0.294265		0
		2007	$	1.000000	$	0.885583		0
ProFund VP U.S. Government Plus		2011	$	1.139937	$	1.607958		1,427
Subaccount Inception Date September 6, 2007		2010	$	1.053329	$	1.139937		9,580
		2009	$	1.590613	$	1.053329		4,718
		2008	$	1.080729	$	1.590613		33,760
		2007	$	1.000000	$	1.080729		0

79

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.75%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Utilities		2011	$	0.828373	$	0.956709		34,209
Subaccount Inception Date September 6, 2007		2010	$	0.795530	$	0.828373		9,952
		2009	$	0.730981	$	0.795530		7,072
		2008	$	1.073289	$	0.730981		4,891
		2007	$	1.000000	$	1.073289		1,300
Access VP High Yield FundSM		2011	$	1.267905	$	1.280353		19,978
Subaccount Inception Date September 6, 2007		2010	$	1.108567	$	1.267905		0
		2009	$	0.964793	$	1.108567		0
		2008	$	1.029549	$	0.964793		0
		2007	$	1.000000	$	1.029549		0
	Year		Separate Account Expense 1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.238799	$	1.247464		321,295
Subaccount Inception Date January 12, 2004		2010	$	1.158375	$	1.238799		338,363
		2009	$	0.942721	$	1.158375		674,313
		2008	$	1.219295	$	0.942721		474,967
		2007	$	1.167736	$	1.219295		260,393
		2006	$	1.087515	$	1.167736		249,637
		2005	$	1.052679	$	1.087515		166,241
		2004	$	1.000000	$	1.052679		145,797
TA Asset Allocation - Growth - Service Class		2011	$	1.230366	$	1.141485		570,808
Subaccount Inception Date January 12, 2004		2010	$	1.090865	$	1.230366		1,300,563
		2009	$	0.855980	$	1.090865		2,597,970
		2008	$	1.444407	$	0.855980		3,420,417
		2007	$	1.365480	$	1.444407		2,931,553
		2006	$	1.203998	$	1.365480		2,678,875
		2005	$	1.093433	$	1.203998		2,292,259
		2004	$	1.000000	$	1.093433		338,120
TA Asset Allocation - Moderate - Service Class		2011	$	1.277474	$	1.260453		2,022,808
Subaccount Inception Date January 12, 2004		2010	$	1.179021	$	1.277474		2,055,451
		2009	$	0.949685	$	1.179021		2,440,262
		2008	$	1.308055	$	0.949685		2,336,942
		2007	$	1.234294	$	1.308055		2,592,746
		2006	$	1.128104	$	1.234294		2,197,667
		2005	$	1.070364	$	1.128104		2,052,670
		2004	$	1.000000	$	1.070364		1,190,495
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.274598	$	1.225410		2,176,942
Subaccount Inception Date January 12, 2004		2010	$	1.152650	$	1.274598		2,763,110
		2009	$	0.916294	$	1.152650		3,218,961
		2008	$	1.388662	$	0.916294		3,333,776
		2007	$	1.312495	$	1.388662		2,971,983
		2006	$	1.175014	$	1.312495		3,638,181
		2005	$	1.088663	$	1.175014		2,398,250
		2004	$	1.000000	$	1.088663		1,592,183
TA International Moderate Growth - Service Class		2011	$	0.949963	$	0.864146		55,500
Subaccount Inception Date May 1, 2006		2010	$	0.875915	$	0.949963		89,469
		2009	$	0.688460	$	0.875915		117,791
		2008	$	1.098976	$	0.688460		94,156
		2007	$	1.029756	$	1.098976		89,215
		2006	$	1.000000	$	1.029756		11,066

80

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
TA BlackRock Large Cap Value - Service Class		2011	$	1.206855	$	1.216481		323,509
Subaccount Inception Date January 12, 2004		2010	$	1.113720	$	1.206855		348,729
		2009	$	0.995557	$	1.113720		284,122
		2008	$	1.534909	$	0.995557		252,592
		2007	$	1.495343	$	1.534909		683,103
		2006	$	1.303330	$	1.495343		734,506
		2005	$	1.144691	$	1.303330		448,675
		2004	$	1.000000	$	1.144691		46,783
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.570927	$	1.452606		188,826
Subaccount Inception Date January 12, 2004		2010	$	1.384944	$	1.570927		205,439
		2009	$	1.058450	$	1.384944		227,309
		2008	$	1.871190	$	1.058450		234,203
		2007	$	2.043388	$	1.871190		225,319
		2006	$	1.463553	$	2.043388		565,358
		2005	$	1.314375	$	1.463553		400,292
		2004	$	1.000000	$	1.314375		147,785
TA JPMorgan Tactical Allocation - Service Class		2011	$	1.001461	$	1.019182		226,600
Subaccount Inception Date January 12, 2004		2010	$	1.022246	$	1.001461		228,591
		2009	$	0.999689	$	1.022246		287,447
		2008	$	1.065780	$	0.999689		287,659
		2007	$	1.091063	$	1.065780		268,279
		2006	$	1.082266	$	1.091063		406,053
		2005	$	1.050447	$	1.082266		521,970
		2004	$	1.000000	$	1.050447		160,487
TA Janus Balanced - Service Class		2011	$	0.999750	$	0.877223		5,712
Subaccount Inception Date November 19, 2009		2010	$	0.985671	$	0.999750		16,142
		2009	$	0.986571	$	0.985671		0
TA Hanlon Balanced - Service Class		2011	$	0.969182	$	0.920990		2,670
Subaccount Inception Date November 19, 2009		2010	$	1.020496	$	0.969182		10,965
		2009	$	0.998158	$	1.020496		0
TA Hanlon Growth - Service Class		2011	$	0.997506	$	0.867357		0
Subaccount Inception Date November 19, 2009		2010	$	1.021163	$	0.997506		0
		2009	$	0.996396	$	1.021163		0
TA Hanlon Growth and Income - Service Class		2011	$	0.984370	$	0.896169		39,957
Subaccount Inception Date November 19, 2009		2010	$	1.022242	$	0.984370		42,409
		2009	$	0.997265	$	1.022242		0
TA Hanlon Income - Service Class		2011	$	0.988365	$	1.000834		127,988
Subaccount Inception Date November 19, 2009		2010	$	1.003508	$	0.988365		131,198
		2009	$	0.999955	$	1.003508		0
TA Jennison Growth - Service Class		2011	$	1.048959	$	1.024005		128,739
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.048959		128,618
TA JPMorgan Core Bond - Service Class		2011	$	1.292036	$	1.363158		188,478
Subaccount Inception Date January 12, 2004		2010	$	1.216130	$	1.292036		288,719
		2009	$	1.130162	$	1.216130		188,666
		2008	$	1.091531	$	1.130162		188,389
		2007	$	1.040794	$	1.091531		200,716
		2006	$	1.020867	$	1.040794		176,820
		2005	$	1.016655	$	1.020867		152,196
		2004	$	1.000000	$	1.016655		118,294

81

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
TA JPMorgan Enhanced Index - Service Class		2011	$	1.117527	$	1.104639		23,824
Subaccount Inception Date January 12, 2004		2010	$	0.989043	$	1.117527		23,824
		2009	$	0.777458	$	0.989043		23,824
		2008	$	1.264980	$	0.777458		25,244
		2007	$	1.232919	$	1.264980		25,140
		2006	$	1.090085	$	1.232919		31,793
		2005	$	1.073690	$	1.090085		41,229
		2004	$	1.000000	$	1.073690		7,399
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.187648	$	1.098438		106,666
Subaccount Inception Date January 12, 2004		2010	$	0.949933	$	1.187648		55,206
		2009	$	0.756949	$	0.949933		55,725
		2008	$	1.212563	$	0.756949		59,101
		2007	$	1.223338	$	1.212563		88,678
		2006	$	1.051176	$	1.223338		89,577
		2005	$	1.029303	$	1.051176		105,302
		2004	$	1.000000	$	1.029303		67,028
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.668709	$	1.490296		0
Subaccount Inception Date January 12, 2004		2010	$	1.253825	$	1.668709		278,258
		2009	$	0.933581	$	1.253825		411,879
		2008	$	1.610347	$	0.933581		279,339
		2007	$	1.333789	$	1.610347		143,915
		2006	$	1.292441	$	1.333789		32,639
		2005	$	1.33182	$	1.292441		27,450
		2004	$	1.000000	$	1.133182		60,957
TA AEGON High Yield Bond - Service Class		2011	$	1.347976	$	1.386305		328,907
Subaccount Inception Date January 12, 2004		2010	$	1.221570	$	1.347976		225,303
		2009	$	0.845516	$	1.221570		55,243
		2008	$	1.153155	$	0.845516		48,656
		2007	$	1.152380	$	1.153155		49,806
		2006	$	1.058924	$	1.152380		51,500
		2005	$	1.060419	$	1.058924		90,978
		2004	$	1.000000	$	1.060419		73,006
TA MFS International Equity - Service Class		2011	$	0.898984	$	0.794037		66,982
Subaccount Inception Date May 1, 2007		2010	$	0.828435	$	0.898984		344,348
		2009	$	0.636818	$	0.828435		372,450
		2008	$	1.004311	$	0.636818		332,464
		2007	$	1.000000	$	1.004311		90,111
TA PIMCO Total Return - Service Class		2011	$	1.273929	$	1.327863		193,499
Subaccount Inception Date January 12, 2004		2010	$	1.210959	$	1.273929		386,365
		2009	$	1.063433	$	1.210959		243,123
		2008	$	1.115323	$	1.063433		342,433
		2007	$	1.042077	$	1.115323		233,007
		2006	$	1.019488	$	1.042077		227,392
		2005	$	1.015619	$	1.019488		267,013
		2004	$	1.000000	$	1.015619		106,402
TA T. Rowe Price Small Cap - Service Class		2011	$	1.392050	$	1.390227		79,362
Subaccount Inception Date January 12, 2004		2010	$	1.055501	$	1.392050		49,837
		2009	$	0.775614	$	1.055501		27,943
		2008	$	1.239803	$	0.775614		26,935
		2007	$	1.153402	$	1.239803		19,134
		2006	$	1.134494	$	1.153402		18,538
		2005	$	1.044549	$	1.134494		36,070
		2004	$	1.000000	$	1.044549		41,623

82

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Third Avenue Value - Service Class		2011	$	1.342821	$	1.129580		276,378
Subaccount Inception Date January 12, 2004		2010	$	1.185211	$	1.342821		260,856
		2009	$	0.895615	$	1.185211		489,844
		2008	$	1.550647	$	0.895615		445,403
		2007	$	1.561642	$	1.550647		833,556
		2006	$	1.370929	$	1.561642		903,626
		2005	$	1.176238	$	1.370929		682,246
		2004	$	1.000000	$	1.176238		346,955
TA Efficient Markets - Service Class		2011	$	1.328803	$	1.278633		0
Subaccount Inception Date November 10, 2008		2010	$	1.201944	$	1.328803		0
		2009	$	1.036627	$	1.201944		0
		2008	$	1.000000	$	1.036627		0
TA Multi-Managed Balanced - Service Class		2011	$	1.363878	$	1.392132		190,414
Subaccount Inception Date January 12, 2004		2010	$	1.119086	$	1.363878		145,787
		2009	$	0.903249	$	1.119086		88,870
		2008	$	1.361803	$	0.903249		64,934
		2007	$	1.221059	$	1.361803		99,287
		2006	$	1.141400	$	1.221059		78,657
		2005	$	1.076344	$	1.141400		60,099
		2004	$	1.000000	$	1.076344		42,751
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.187812	$	1.188033		7,844
Subaccount Inception Date January 12, 2004		2010	$	1.106183	$	1.187812		7,872
		2009	$	0.857264	$	1.106183		4,269
		2008	$	1.383254	$	0.857264		13,482
		2007	$	1.188796	$	1.383254		11,380
		2006	$	1.092051	$	1.188796		11,422
		2005	$	1.072053	$	1.092051		11,464
		2004	$	1.000000	$	1.072053		17,945
TA WMC Diversified Equity - Service Class		2011	$	1.146629	$	1.046798		0
Subaccount Inception Date January 12, 2004		2010	$	1.000061	$	1.146629		252,283
		2009	$	0.795142	$	1.000061		109,035
		2008	$	1.438650	$	0.795142		129,256
		2007	$	1.271960	$	1.438650		416,276
		2006	$	1.091524	$	1.271960		61,745
		2005	$	1.034671	$	1.091524		46,056
		2004	$	1.000000	$	1.034671		19,971
TA WMC Diversified Growth - Service Class		2011	$	1.220066	$	1.153142		493,483
Subaccount Inception Date January 12, 2004		2010	$	1.055641	$	1.220066		312,092
		2009	$	0.832494	$	1.055641		327,668
		2008	$	1.572303	$	0.832494		340,336
		2007	$	1.377399	$	1.572303		408,913
		2006	$	1.291779	$	1.377399		550,643
		2005	$	1.129217	$	1.291779		359,800
		2004	$	1.000000	$	1.129217		292,768
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005148		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988415		190,710

83

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
TA AEGON Money Market - Service Class		2011	$	1.031597	$	1.014932		980,503
Subaccount Inception Date January 12, 2004		2010	$	1.048565	$	1.031597		588,071
		2009	$	1.065711	$	1.048565		278,530
		2008	$	1.060397	$	1.065711		1,342,082
		2007	$	1.028948	$	1.060397		119,128
		2006	$	1.001116	$	1.028948		24,963
		2005	$	0.991537	$	1.001116		91,129
		2004	$	1.000000	$	0.991537		251,348
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.850259	$	1.768251		504,789
Subaccount Inception Date May 1, 2004		2010	$	1.446179	$	1.850259		470,933
		2009	$	1.028719	$	1.446179		614,291
		2008	$	1.774018	$	1.028719		551,103
		2007	$	1.449818	$	1.774018		630,390
		2006	$	1.250833	$	1.449818		172,179
		2005	$	1.122560	$	1.250833		433,295
		2004	$	1.000000	$	1.122560		158,144
TA AEGON U.S. Government Securities - Service Class		2011	$	1.179428	$	1.244878		183,949
Subaccount Inception Date January 12, 2004		2010	$	1.150314	$	1.179428		195,069
		2009	$	1.122189	$	1.150314		184,333
		2008	$	1.062017	$	1.122189		197,266
		2007	$	1.020615	$	1.062017		48,017
		2006	$	1.006608	$	1.020615		201,254
		2005	$	1.003297	$	1.006608		61,911
		2004	$	1.000000	$	1.003297		23,751
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.074408	$	1.090563		0
Subaccount Inception Date November 19, 2009		2010	$	0.998075	$	1.074408		0
		2009	$	0.999955	$	0.998075		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.019934	$	1.018128		0
Subaccount Inception Date May 1, 2008		2010	$	0.936613	$	1.019934		0
		2009	$	0.817007	$	0.936613		0
		2008	$	1.000000	$	0.817007		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.971384	$	0.944813		0
Subaccount Inception Date May 1, 2008		2010	$	0.873783	$	0.971384		0
		2009	$	0.721052	$	0.873783		0
		2008	$	1.000000	$	0.721052		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.152543	$	1.089428		0
Subaccount Inception Date November 19, 2009		2010	$	1.024027	$	1.152543		0
		2009	$	0.999955	$	1.024027		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.527700	$	1.398977		164,974
Subaccount Inception Date January 12, 2004		2010	$	1.162523	$	1.527700		41,897
		2009	$	0.738011	$	1.162523		28,492
		2008	$	1.400726	$	0.738011		25,498
		2007	$	1.164906	$	1.400726		18,166
		2006	$	1.080451	$	1.164906		19,714
		2005	$	1.023390	$	1.080451		18,428
		2004	$	1.000000	$	1.023390		0
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.058523	$	1.117261		0
Subaccount Inception Date September 4, 2007		2010	$	1.032383	$	1.058523		0
		2009	$	1.000000	$	1.032383		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.340179	$	1.275667		2,707
Subaccount Inception Date November 10, 2008		2010	$	1.237531	$	1.340179		2,960
		2009	$	1.012783	$	1.237531		0
		2008	$	1.000000	$	1.012783		0

84

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity® VIP Index 500 Portfolio - Service Class 2		2011	$	1.122151	$	1.123669		187,651
Subaccount Inception Date January 12, 2004		2010	$	0.994212	$	1.122151		47,650
		2009	$	0.800164	$	0.994212		63,154
		2008	$	1.294420	$	0.800164		55,104
		2007	$	1.251066	$	1.294420		125,791
		2006	$	1.101590	$	1.251066		107,807
		2005	$	1.070934	$	1.101590		59,645
		2004	$	1.000000	$	1.070934		58,557
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.369903	$	1.323222		0
Subaccount Inception Date November 10, 2008		2010	$	1.265010	$	1.369903		0
		2009	$	0.990107	$	1.265010		0
		2008	$	1.000000	$	0.990107		0
ProFund VP Asia 30		2011	$	0.960518	$	0.689848		130,725
Subaccount Inception Date September 6, 2007		2010	$	0.857150	$	0.960518		135,068
		2009	$	0.565035	$	0.857150		57,758
		2008	$	1.168030	$	0.565035		9,297
		2007	$	1.000000	$	1.168030		16,270
ProFund VP Basic Materials		2011	$	1.082431	$	0.892888		2,684
Subaccount Inception Date September 6, 2007		2010	$	0.848357	$	1.082431		32,058
		2009	$	0.531097	$	0.848357		2,649
		2008	$	1.111461	$	0.531097		20,991
		2007	$	1.000000	$	1.111461		1,164
ProFund VP Bull		2011	$	0.794226	$	0.781364		0
Subaccount Inception Date June 21, 2007		2010	$	0.717132	$	0.794226		0
		2009	$	0.586250	$	0.717132		0
		2008	$	0.956134	$	0.586250		0
		2007	$	1.000000	$	0.956134		0
ProFund VP Consumer Services		2011	$	0.948780	$	0.984733		0
Subaccount Inception Date September 6, 2007		2010	$	0.794499	$	0.948780		26,100
		2009	$	0.617409	$	0.794499		0
		2008	$	0.914699	$	0.617409		4,984
		2007	$	1.000000	$	0.914699		0
ProFund VP Emerging Markets		2011	$	0.970823	$	0.766886		90,995
Subaccount Inception Date September 6, 2007		2010	$	0.899005	$	0.970823		101,360
		2009	$	0.562852	$	0.899005		249,508
		2008	$	1.146516	$	0.562852		3,285
		2007	$	1.000000	$	1.146516		6,646
ProFund VP Europe 30		2011	$	0.744426	$	0.667289		0
Subaccount Inception Date September 6, 2007		2010	$	0.737286	$	0.744426		0
		2009	$	0.566515	$	0.737286		411
		2008	$	1.028497	$	0.566515		412
		2007	$	1.000000	$	1.028497		0
ProFund VP Falling US Dollar		2011	$	0.961078	$	0.919752		0
Subaccount Inception Date September 6, 2007		2010	$	1.002890	$	0.961078		0
		2009	$	0.986726	$	1.002890		0
		2008	$	1.057126	$	0.986726		0
		2007	$	1.000000	$	1.057126		0
ProFund VP Financials		2011	$	0.518658	$	0.439669		28,373
Subaccount Inception Date September 6, 2007		2010	$	0.475263	$	0.518658		27,878
		2009	$	0.420060	$	0.475263		30,812
		2008	$	0.863440	$	0.420060		479,497
		2007	$	1.000000	$	0.863440		0

85

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP International		2011	$	0.718020	$	0.605089		0
Subaccount Inception Date September 6, 2007		2010	$	0.677025	$	0.718020		640
		2009	$	0.552119	$	0.677025		0
		2008	$	1.009518	$	0.552119		0
		2007	$	1.000000	$	1.009518		0
ProFund VP Japan		2011	$	0.529596	$	0.424419		0
Subaccount Inception Date September 6, 2007		2010	$	0.575966	$	0.529596		6,102
		2009	$	0.530659	$	0.575966		0
		2008	$	0.911913	$	0.530659		0
		2007	$	1.000000	$	0.911913		0
ProFund VP Mid-Cap		2011	$	0.942677	$	0.888608		0
Subaccount Inception Date September 6, 2007		2010	$	0.772462	$	0.942677		0
		2009	$	0.590934	$	0.772462		0
		2008	$	0.974703	$	0.590934		0
		2007	$	1.000000	$	0.974703		0
ProFund VP Money Market		2011	$	0.970145	$	0.954611		99,227
Subaccount Inception Date June 21, 2007		2010	$	0.985935	$	0.970145		638
		2009	$	1.001886	$	0.985935		24,623
		2008	$	1.010007	$	1.001886		14,801
		2007	$	1.000000	$	1.010007		0
ProFund VP Oil & Gas		2011	$	0.890104	$	0.895356		1,141
Subaccount Inception Date September 6, 2007		2010	$	0.768320	$	0.890104		366,043
		2009	$	0.676189	$	0.768320		22,377
		2008	$	1.090225	$	0.676189		14,054
		2007	$	1.000000	$	1.090225		0
ProFund VP NASDAQ-100		2011	$	1.044758	$	1.042789		449
Subaccount Inception Date June 21, 2007		2010	$	0.898128	$	1.044758		24,084
		2009	$	0.600587	$	0.898128		253,723
		2008	$	1.061502	$	0.600587		0
		2007	$	1.000000	$	1.061502		0
ProFund VP Pharmaceuticals		2011	$	0.899003	$	1.027117		20,745
Subaccount Inception Date September 6, 2007		2010	$	0.909499	$	0.899003		20,491
		2009	$	0.790869	$	0.909499		22,754
		2008	$	0.998815	$	0.790869		40,309
		2007	$	1.000000	$	0.998815		0
ProFund VP Precious Metals		2011	$	1.395690	$	1.109231		30,178
Subaccount Inception Date September 6, 2007		2010	$	1.067271	$	1.395690		15,660
		2009	$	0.801679	$	1.067271		37,113
		2008	$	1.177007	$	0.801679		27,513
		2007	$	1.000000	$	1.177007		0
ProFund VP Short Emerging Markets		2011	$	0.433739	$	0.472207		0
Subaccount Inception Date September 6, 2007		2010	$	0.540451	$	0.433739		0
		2009	$	1.071229	$	0.540451		0
		2008	$	0.823540	$	1.071229		0
		2007	$	1.000000	$	0.823540		0
ProFund VP Short International		2011	$	0.768834	$	0.770017		1,577
Subaccount Inception Date September 6, 2007		2010	$	0.916175	$	0.768834		1,584
		2009	$	1.335806	$	0.916175		1,591
		2008	$	0.982361	$	1.335806		1,597
		2007	$	1.000000	$	0.982361		0

86

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Short NASDAQ-100		2011	$	0.641490	$	0.564979		1,498
Subaccount Inception Date September 6, 2007		2010	$	0.827360	$	0.641490		1,505
		2009	$	1.417314	$	0.827360		1,511
		2008	$	0.972408	$	1.417314		1,517
		2007	$	1.000000	$	0.972408		0
ProFund VP Short Small-Cap		2011	$	0.613959	$	0.549104		1,431
Subaccount Inception Date June 21, 2007		2010	$	0.878329	$	0.613959		1,437
		2009	$	1.320233	$	0.878329		1,444
		2008	$	1.081603	$	1.320233		1,450
		2007	$	1.000000	$	1.081603		0
ProFund VP Small-Cap		2011	$	0.875617	$	0.812709		0
Subaccount Inception Date June 21, 2007		2010	$	0.713250	$	0.875617		29,266
		2009	$	0.575092	$	0.713250		0
		2008	$	0.905020	$	0.575092		0
		2007	$	1.000000	$	0.905020		0
ProFund VP Small-Cap Value		2011	$	0.888069	$	0.837822		551
Subaccount Inception Date September 6, 2007		2010	$	0.739310	$	0.888069		553
		2009	$	0.624168	$	0.739310		555
		2008	$	0.915383	$	0.624168		385
		2007	$	1.000000	$	0.915383		0
ProFund VP Telecommunications		2011	$	0.738950	$	0.740559		1,109
Subaccount Inception Date September 6, 2007		2010	$	0.739310	$	0.738950		338,243
		2009	$	0.614978	$	0.649280		0
		2008	$	0.953293	$	0.614978		0
		2007	$	1.000000	$	0.953293		0
ProFund VP UltraSmall-Cap		2011	$	0.593384	$	0.473815		965
Subaccount Inception Date September 6, 2007		2010	$	0.406335	$	0.593384		970
		2009	$	0.294656	$	0.406335		973
		2008	$	0.885867	$	0.294656		5,045,782
		2007	$	1.000000	$	0.885867		0
ProFund VP U.S. Government Plus		2011	$	1.143665	$	1.614789		0
Subaccount Inception Date September 6, 2007		2010	$	1.055739	$	1.143665		0
		2009	$	1.592688	$	1.055739		2,625
		2008	$	1.081070	$	1.592688		0
		2007	$	1.000000	$	1.081070		0
ProFund VP Utilities		2011	$	0.831082	$	0.960775		417,690
Subaccount Inception Date September 6, 2007		2010	$	0.797350	$	0.831085		271,138
		2009	$	0.731932	$	0.797350		795
		2008	$	1.073629	$	0.731932		10,776
		2007	$	1.000000	$	1.073629		0
Access VP High Yield FundSM		2011	$	1.272059	$	1.285809		0
Subaccount Inception Date September 6, 2007		2010	$	1.111100	$	1.272059		0
		2009	$	0.966052	$	1.111100		6,003
		2008	$	1.029880	$	0.966052		15,513
		2007	$	1.000000	$	1.029880		0

87

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.55%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.247340	$	1.257299		997,833
Subaccount Inception Date January 12, 2004		2010	$	1.165217	$	1.247340		1,303,849
		2009	$	0.947349	$	1.165217		1,366,667
		2008	$	1.224074	$	0.947349		1,401,661
		2007	$	1.171155	$	1.224074		1,358,499
		2006	$	1.089628	$	1.171155		1,561,960
		2005	$	1.053690	$	1.089628		1,141,667
		2004	$	1.000000	$	1.053690		483,632
TA Asset Allocation - Growth - Service Class		2011	$	1.238843	$	1.150482		864,771
Subaccount Inception Date January 12, 2004		2010	$	1.097291	$	1.238843		946,667
		2009	$	0.860182	$	1.097291		1,110,790
		2008	$	1.450055	$	0.860182		1,127,698
		2007	$	1.369464	$	1.450055		1,506,693
		2006	$	1.206326	$	1.369464		1,509,452
		2005	$	1.094471	$	1.206326		795,368
		2004	$	1.000000	$	1.094471		499,542
TA Asset Allocation - Moderate - Service Class		2011	$	1.286295	$	1.270401		2,681,903
Subaccount Inception Date January 12, 2004		2010	$	1.185993	$	1.286295		2,734,018
		2009	$	0.954355	$	1.185993		3,259,062
		2008	$	1.313195	$	0.954355		3,849,537
		2007	$	1.237911	$	1.313195		3,892,195
		2006	$	1.130300	$	1.237911		3,810,766
		2005	$	1.071383	$	1.130300		2,257,771
		2004	$	1.000000	$	1.071383		800,045
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.283385	$	1.235071		2,910,759
Subaccount Inception Date January 12, 2004		2010	$	1.159440	$	1.283385		3,147,707
		2009	$	0.920794	$	1.159440		3,691,162
		2008	$	1.394096	$	0.920794		4,043,657
		2007	$	1.316326	$	1.394096		4,807,893
		2006	$	1.177278	$	1.316326		3,739,333
		2005	$	1.089702	$	1.177278		2,093,194
		2004	$	1.000000	$	1.089702		1,065,423
TA International Moderate Growth - Service Class		2011	$	0.954359	$	0.869011		236,301
Subaccount Inception Date May 1, 2006		2010	$	0.879106	$	0.954359		294,369
		2009	$	0.690284	$	0.879106		323,507
		2008	$	1.100802	$	0.690284		341,246
		2007	$	1.030435	$	1.100802		319,197
		2006	$	1.000000	$	1.030435		145,864
TA BlackRock Large Cap Value - Service Class		2011	$	1.215152	$	1.226048		136,258
Subaccount Inception Date January 12, 2004		2010	$	1.120274	$	1.215152		143,832
		2009	$	1.000441	$	1.120274		122,595
		2008	$	1.540905	$	1.000441		100,167
		2007	$	1.499701	$	1.540905		137,000
		2006	$	1.305855	$	1.499701		131,211
		2005	$	1.145782	$	1.305855		111,554
		2004	$	1.000000	$	1.145782		6,683
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.581742	$	1.464035		77,832
Subaccount Inception Date January 12, 2004		2010	$	1.393108	$	1.581742		95,176
		2009	$	1.063653	$	1.393108		88,880
		2008	$	1.878523	$	1.063653		79,162
		2007	$	2.049361	$	1.878523		145,028
		2006	$	1.466397	$	2.049361		203,011
		2005	$	1.315630	$	1.466397		74,599
		2004	$	1.000000	$	1.315630		14,371

88

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.55%
Subaccount			Beginning AUV		Ending AUV		# Units
TA JPMorgan Tactical Allocation - Service Class		2011	$	1.008363	$	1.027226		169,234
Subaccount Inception Date January 12, 2004		2010	$	1.028279	$	1.008363		313,466
		2009	$	1.004587	$	1.028279		350,519
		2008	$	1.069948	$	1.004587		364,803
		2007	$	1.094260	$	1.069948		145,504
		2006	$	1.084373	$	1.094260		174,053
		2005	$	1.051461	$	1.084373		152,514
		2004	$	1.000000	$	1.051461		84,908
TA Janus Balanced - Service Class		2011	$	1.000840	$	0.879039		6,744
Subaccount Inception Date November 19, 2009		2010	$	0.985787	$	1.000840		0
		2009	$	0.986574	$	0.985787		0
TA Hanlon Balanced - Service Class		2011	$	0.970248	$	0.922901		0
Subaccount Inception Date November 19, 2009		2010	$	1.020612	$	0.970248		0
		2009	$	0.998161	$	1.020612		0
TA Hanlon Growth - Service Class		2011	$	0.998612	$	0.869166		0
Subaccount Inception Date November 19, 2009		2010	$	1.021282	$	0.998612		0
		2009	$	0.996399	$	1.021282		4,727
TA Hanlon Growth and Income - Service Class		2011	$	0.985454	$	0.898047		0
Subaccount Inception Date November 19, 2009		2010	$	1.022364	$	0.985454		0
		2009	$	0.997267	$	1.022364		0
TA Hanlon Income - Service Class		2011	$	0.989468	$	1.002936		674,003
Subaccount Inception Date November 19, 2009		2010	$	1.003628	$	0.989468		715,132
		2009	$	0.999958	$	1.003628		0
TA Jennison Growth - Service Class		2011	$	1.049655	$	1.025697		56,983
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.049655		19,766
TA JPMorgan Core Bond - Service Class		2011	$	1.300956	$	1.373916		73,483
Subaccount Inception Date January 12, 2004		2010	$	1.223316	$	1.300956		73,079
		2009	$	1.135722	$	1.223316		90,338
		2008	$	1.095824	$	1.135722		178,293
		2007	$	1.043861	$	1.095824		73,752
		2006	$	1.022863	$	1.043861		71,778
		2005	$	1.017634	$	1.022863		120,799
		2004	$	1.000000	$	1.017634		13,953
TA JPMorgan Enhanced Index - Service Class		2011	$	1.125251	$	1.113361		66,564
Subaccount Inception Date January 12, 2004		2010	$	0.994909	$	1.125251		55,556
		2009	$	0.781287	$	0.994909		89,902
		2008	$	1.269939	$	0.781287		90,636
		2007	$	1.236528	$	1.269939		78,167
		2006	$	1.092210	$	1.236528		64,218
		2005	$	1.074724	$	1.092210		67,929
		2004	$	1.000000	$	1.074724		47,047
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.195837	$	1.107105		104,936
Subaccount Inception Date January 12, 2004		2010	$	0.955548	$	1.195837		104,856
		2009	$	0.760670	$	0.955548		52,374
		2008	$	1.217324	$	0.760670		73,208
		2007	$	1.226920	$	1.217324		114,108
		2006	$	1.053227	$	1.226920		118,439
		2005	$	1.030303	$	1.053227		91,993
		2004	$	1.000000	$	1.030303		85,270

89

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.55%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.680194	$	1.502033		0
Subaccount Inception Date January 12, 2004		2010	$	1.261203	$	1.680194		142,059
		2009	$	0.938147	$	1.261203		60,849
		2008	$	1.616631	$	0.938147		63,224
		2007	$	1.337671	$	1.616631		67,793
		2006	$	1.294934	$	1.337671		67,826
		2005	$	1.134258	$	1.294934		39,836
		2004	$	1.000000	$	1.134258		634
TA AEGON High Yield Bond - Service Class		2011	$	1.357250	$	1.397230		145,588
Subaccount Inception Date January 12, 2004		2010	$	1.228759	$	1.357250		143,204
		2009	$	0.849664	$	1.228759		114,968
		2008	$	1.157671	$	0.849664		67,384
		2007	$	1.155746	$	1.157671		89,456
		2006	$	1.060972	$	1.155746		47,757
		2005	$	1.061423	$	1.060972		32,826
		2004	$	1.000000	$	1.061423		18,845
TA MFS International Equity - Service Class		2011	$	0.902265	$	0.797723		3,472
Subaccount Inception Date May 1, 2007		2010	$	0.830636	$	0.902265		23,219
		2009	$	0.637876	$	0.830636		36,372
		2008	$	1.004971	$	0.637876		40,334
		2007	$	1.000000	$	1.004971		45,796
TA PIMCO Total Return - Service Class		2011	$	1.282702	$	1.338324		197,494
Subaccount Inception Date January 12, 2004		2010	$	1.218101	$	1.282702		418,369
		2009	$	1.068650	$	1.218101		520,462
		2008	$	1.119678	$	1.068650		271,801
		2007	$	1.045123	$	1.119678		53,241
		2006	$	1.021468	$	1.045123		30,355
		2005	$	1.016595	$	1.021468		25,111
		2004	$	1.000000	$	1.016595		6,260
TA T. Rowe Price Small Cap - Service Class		2011	$	1.401596	$	1.401129		38,108
Subaccount Inception Date January 12, 2004		2010	$	1.061704	$	1.401596		65,378
		2009	$	0.779402	$	1.061704		37,128
		2008	$	1.244635	$	0.779402		53,044
		2007	$	1.156758	$	1.244635		42,633
		2006	$	1.136685	$	1.156758		44,325
		2005	$	1.045545	$	1.136685		29,466
		2004	$	1.000000	$	1.045545		7,469
TA Third Avenue Value - Service Class		2011	$	1.352077	$	1.138484		176,587
Subaccount Inception Date January 12, 2004		2010	$	1.192214	$	1.352077		243,252
		2009	$	0.900019	$	1.192214		143,104
		2008	$	1.556726	$	0.900019		122,447
		2007	$	1.566214	$	1.556726		220,589
		2006	$	1.373602	$	1.566214		247,507
		2005	$	1.177373	$	1.373602		185,012
		2004	$	1.000000	$	1.177373		73,880
TA Efficient Markets - Service Class		2011	$	1.331587	$	1.282563		0
Subaccount Inception Date November 10, 2008		2010	$	1.203288	$	1.331587		0
		2009	$	1.036768	$	1.203288		0
		2008	$	1.000000	$	1.036768		0

90

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.55%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Multi-Managed Balanced - Service Class		2011	$	1.373290	$	1.403107		120,344
Subaccount Inception Date January 12, 2004		2010	$	1.125692	$	1.373290		375,506
		2009	$	0.907698	$	1.125692		371,700
		2008	$	1.367159	$	0.907698		170,777
		2007	$	1.224650	$	1.367159		252,522
		2006	$	1.143621	$	1.224650		127,345
		2005	$	1.077376	$	1.143621		4,549
		2004	$	1.000000	$	1.077376		999
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.195995	$	1.197389		39,496
Subaccount Inception Date January 12, 2004		2010	$	1.112710	$	1.195995		64,307
		2009	$	0.861486	$	1.112710		53,620
		2008	$	1.388684	$	0.861486		33,587
		2007	$	1.192282	$	1.388684		61,356
		2006	$	1.094172	$	1.192282		19,390
		2005	$	1.073087	$	1.094172		12,936
		2004	$	1.000000	$	1.073087		7,134
TA WMC Diversified Equity - Service Class		2011	$	1.154513	$	1.055032		0
Subaccount Inception Date January 12, 2004		2010	$	1.005950	$	1.154513		189,150
		2009	$	0.799035	$	1.005950		128,182
		2008	$	1.444268	$	0.799035		120,095
		2007	$	1.275667	$	1.444268		123,967
		2006	$	1.093624	$	1.275667		66,294
		2005	$	1.035653	$	1.093624		31,195
		2004	$	1.000000	$	1.035653		8,794
TA WMC Diversified Growth - Service Class		2011	$	1.228444	$	1.162197		214,815
Subaccount Inception Date January 12, 2004		2010	$	1.061849	$	1.228444		103,340
		2009	$	0.836563	$	1.061849		157,570
		2008	$	1.578432	$	0.836563		140,732
		2007	$	1.381405	$	1.578432		170,049
		2006	$	1.294267	$	1.381405		129,285
		2005	$	1.130276	$	1.294267		76,142
		2004	$	1.000000	$	1.130276		25,615
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005208		0
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988472		108,741
TA AEGON Money Market - Service Class		2011	$	1.038652	$	1.022916		812,569
Subaccount Inception Date January 12, 2004		2010	$	1.054707	$	1.038652		770,223
		2009	$	1.070934	$	1.054707		1,377,745
		2008	$	1.064545	$	1.070934		1,770,269
		2007	$	1.031943	$	1.064545		571,469
		2006	$	1.003046	$	1.031943		238,387
		2005	$	0.992483	$	1.003046		365,225
		2004	$	1.000000	$	0.992483		89,823
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.862452	$	1.781655		123,388
Subaccount Inception Date May 1, 2004		2010	$	1.454271	$	1.862452		155,480
		2009	$	1.033459	$	1.454271		145,075
		2008	$	1.780437	$	1.033459		156,456
		2007	$	1.453626	$	1.780437		219,739
		2006	$	1.252891	$	1.453626		176,274
		2005	$	1.123299	$	1.252891		102,789
		2004	$	1.000000	$	1.123299		23,802

91

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.55%
Subaccount			Beginning AUV		Ending AUV		# Units
TA AEGON U.S. Government Securities - Service Class		2011	$	1.187556	$	1.254686		150,709
Subaccount Inception Date January 12, 2004		2010	$	1.157091	$	1.187556		251,792
		2009	$	1.127696	$	1.157091		228,798
		2008	$	1.066157	$	1.127696		567,040
		2007	$	1.023585	$	1.066157		62,969
		2006	$	1.008562	$	1.023585		49,761
		2005	$	1.004258	$	1.008562		65,185
		2004	$	1.000000	$	1.004258		9,993
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.075590	$	1.092843		0
Subaccount Inception Date November 19, 2009		2010	$	0.998190	$	1.075590		0
		2009	$	0.999958	$	0.998190		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.022598	$	1.021799		0
Subaccount Inception Date May 1, 2008		2010	$	0.938137	$	1.022598		0
		2009	$	0.817541	$	0.938137		0
		2008	$	1.000000	$	0.817541		0
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.973918	$	0.948214		0
Subaccount Inception Date May 1, 2008		2010	$	0.875203	$	0.973918		0
		2009	$	0.721522	$	0.875203		0
		2008	$	1.000000	$	0.721522		0
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.153818	$	1.091708		0
Subaccount Inception Date November 19, 2009		2010	$	1.024147	$	1.153818		0
		2009	$	0.999958	$	1.024147		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.538210	$	1.409990		129,141
Subaccount Inception Date January 12, 2004		2010	$	1.169370	$	1.538210		74,751
		2009	$	0.741626	$	1.169370		46,639
		2008	$	1.406198	$	0.741626		58,664
		2007	$	1.168303	$	1.406198		45,472
		2006	$	1.082544	$	1.168303		9,119
		2005	$	1.024370	$	1.082544		10,296
		2004	$	1.000000	$	1.024370		6,073
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.187556	$	1.254686		227,822
Subaccount Inception Date January 12, 2004		2010	$	1.157091	$	1.187556		252,567
		2009	$	1.127696	$	1.157091		440,571
		2008	$	1.066157	$	1.127696		758,500
		2007	$	1.023585	$	1.066157		0.00
		2006	$	1.008562	$	1.023585		0
		2005	$	1.000000	$	1.008562		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.342988	$	1.279599		5,154
Subaccount Inception Date November 10, 2008		2010	$	1.342988	$	1.342988		14,505
		2009	$	1.012924	$	1.238923		14,691
		2008	$	1.000000	$	1.012924		0
Fidelity® VIP Index 500 Portfolio - Service Class 2		2011	$	1.129891	$	1.132530		76,244
Subaccount Inception Date January 12, 2004		2010	$	1.000089	$	1.129891		92,689
		2009	$	0.804106	$	1.000089		98,324
		2008	$	1.299503	$	0.804106		110,071
		2007	$	1.254734	$	1.299503		220,796
		2006	$	1.103733	$	1.254734		227,177
		2005	$	1.071957	$	1.103733		131,800
		2004	$	1.000000	$	1.071957		108,358
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.372792	$	1.327324		5,130
Subaccount Inception Date November 10, 2008		2010	$	1.266432	$	1.372792		11,383
		2009	$	0.990241	$	1.266432		11,521
		2008	$	1.000000	$	0.990241		0

92

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.55%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Asia 30		2011	$	0.963670	$	0.692784		104,754
Subaccount Inception Date September 6, 2007		2010	$	0.859118	$	0.963670		144,056
		2009	$	0.565781	$	0.859118		141,948
		2008	$	1.168404	$	0.565781		67,855
		2007	$	1.000000	$	1.168404		14,832
ProFund VP Basic Materials		2011	$	1.086001	$	0.896711		58,447
Subaccount Inception Date September 6, 2007		2010	$	0.850314	$	1.086001		41,449
		2009	$	0.531797	$	0.850314		54,893
		2008	$	1.111817	$	0.531797		40,532
		2007	$	1.000000	$	1.111817		79,980
ProFund VP Bull		2011	$	0.797007	$	0.784874		0
Subaccount Inception Date June 21, 2007		2010	$	0.718930	$	0.797007		56,164
		2009	$	0.587141	$	0.718930		93,018
		2008	$	0.956628	$	0.587141		0
		2007	$	1.000000	$	0.956628		0
ProFund VP Consumer Services		2011	$	0.951879	$	0.988918		0
Subaccount Inception Date September 6, 2007		2010	$	0.796306	$	0.951879		0
		2009	$	0.618215	$	0.796306		0
		2008	$	0.914987	$	0.618215		0
		2007	$	1.000000	$	0.914987		0
ProFund VP Emerging Markets		2011	$	0.974022	$	0.770182		2,320
Subaccount Inception Date September 6, 2007		2010	$	0.901084	$	0.974022		124,139
		2009	$	0.563595	$	0.901084		105,076
		2008	$	1.146880	$	0.563595		3,580
		2007	$	1.000000	$	1.146880		0
ProFund VP Europe 30		2011	$	0.746897	$	0.670156		0
Subaccount Inception Date September 6, 2007		2010	$	0.739000	$	0.746897		0
		2009	$	0.567261	$	0.739000		0
		2008	$	1.028829	$	0.567261		0
		2007	$	1.000000	$	1.028829		124,004
ProFund VP Falling US Dollar		2011	$	0.964220	$	0.923679		2,629
Subaccount Inception Date September 6, 2007		2010	$	1.005178	$	0.964220		0
		2009	$	0.988011	$	1.005178		76,730
		2008	$	1.057457	$	0.988011		71,128
		2007	$	1.000000	$	1.057457		45,703
ProFund VP Financials		2011	$	0.520345	$	0.441535		124
Subaccount Inception Date September 6, 2007		2010	$	0.476352	$	0.520345		22,413
		2009	$	0.420606	$	0.476352		48,316
		2008	$	0.863708	$	0.420606		24,489
		2007	$	1.000000	$	0.863708		0
ProFund VP International		2011	$	0.720380	$	0.607678		1,694
Subaccount Inception Date September 6, 2007		2010	$	0.678587	$	0.720380		35,256
		2009	$	0.552848	$	0.678587		55,278
		2008	$	1.009844	$	0.552848		660
		2007	$	1.000000	$	1.009844		0
ProFund VP Japan		2011	$	0.531340	$	0.426236		17,512
Subaccount Inception Date September 6, 2007		2010	$	0.577291	$	0.531340		0
		2009	$	0.531344	$	0.577291		0
		2008	$	0.912200	$	0.531344		4,548
		2007	$	1.000000	$	0.912200		0

93

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.55%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Mid-Cap		2011	$	0.945774	$	0.892411		0
Subaccount Inception Date September 6, 2007		2010	$	0.774243	$	0.945774		20,034
		2009	$	0.591705	$	0.774243		68,506
		2008	$	0.975007	$	0.591705		14,966
		2007	$	1.000000	$	0.975007		0
ProFund VP Money Market		2011	$	0.973508	$	0.958912		45,113
Subaccount Inception Date June 21, 2007		2010	$	0.988432	$	0.973508		207,517
		2009	$	1.003417	$	0.988432		283,688
		2008	$	1.010533	$	1.003417		220,744
		2007	$	1.000000	$	1.010533		85,993
ProFund VP Oil & Gas		2011	$	0.893013	$	0.899159		398,544
Subaccount Inception Date September 6, 2007		2010	$	0.770074	$	0.893013		292,482
		2009	$	0.677072	$	0.770074		259,883
		2008	$	1.090572	$	0.677072		159,115
		2007	$	1.000000	$	1.090572		46,033
ProFund VP NASDAQ-100		2011	$	1.048405	$	1.047459		33,893
Subaccount Inception Date June 21, 2007		2010	$	0.900379	$	1.048405		3,248
		2009	$	0.601503	$	0.900379		43,012
		2008	$	1.062057	$	0.601503		10,391
		2007	$	1.000000	$	1.062057		0
ProFund VP Pharmaceuticals		2011	$	0.901937	$	1.031470		93
Subaccount Inception Date September 6, 2007		2010	$	0.911572	$	0.901937		58,034
		2009	$	0.791896	$	0.911572		43,113
		2008	$	0.999134	$	0.791896		1,884
		2007	$	1.000000	$	0.999134		0
ProFund VP Precious Metals		2011	$	1.400281	$	1.113985		314,005
Subaccount Inception Date September 6, 2007		2010	$	1.069717	$	1.400281		312,378
		2009	$	0.802727	$	1.069717		262,215
		2008	$	1.177386	$	0.802727		169,591
		2007	$	1.000000	$	1.177386		65,069
ProFund VP Short Emerging Markets		2011	$	0.435176	$	0.474231		0
Subaccount Inception Date September 6, 2007		2010	$	0.541704	$	0.435176		11,573
		2009	$	1.072650	$	0.541704		23,551
		2008	$	0.823808	$	1.072650		70,567
		2007	$	1.000000	$	0.823808		11,573
ProFund VP Short International		2011	$	0.771350	$	0.773288		0
Subaccount Inception Date September 6, 2007		2010	$	0.918268	$	0.771350		0
		2009	$	1.337541	$	0.918268		39,114
		2008	$	0.982671	$	1.337541		52,275
		2007	$	1.000000	$	0.982671		23
ProFund VP Short NASDAQ-100		2011	$	0.643589	$	0.567391		32,166
Subaccount Inception Date September 6, 2007		2010	$	0.829257	$	0.643589		29,969
		2009	$	1.419162	$	0.829257		65,316
		2008	$	0.972714	$	1.419162		42,932
		2007	$	1.000000	$	0.972714		11,071
ProFund VP Short Small-Cap		2011	$	0.616101	$	0.551564		11,221
Subaccount Inception Date June 21, 2007		2010	$	0.880526	$	0.616101		18,442
		2009	$	1.322235	$	0.880526		29,823
		2008	$	1.082175	$	1.322235		17,999
		2007	$	1.000000	$	1.082175		18,112

94

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.55%
Subaccount			Beginning AUV		Ending AUV		# Units
ProFund VP Small-Cap		2011	$	0.878662	$	0.816340		58
Subaccount Inception Date June 21, 2007		2010	$	0.715032	$	0.878662		31
		2009	$	0.575963	$	0.715032		326
		2008	$	0.905495	$	0.575963		135
		2007	$	1.000000	$	0.905495		25
ProFund VP Small-Cap Value		2011	$	0.890980	$	0.841404		0
Subaccount Inception Date September 6, 2007		2010	$	0.741008	$	0.890980		0
		2009	$	0.624984	$	0.741008		17,658
		2008	$	0.915680	$	0.624984		14.506
		2007	$	1.000000	$	0.915680		0
ProFund VP Telecommunications		2011	$	0.741377	$	0.743715		0
Subaccount Inception Date September 6, 2007		2010	$	0.650773	$	0.741377		19,546
		2009	$	0.615779	$	0.650773		0
		2008	$	0.953593	$	0.615779		0
		2007	$	1.000000	$	0.953593		0
ProFund VP UltraSmall-Cap		2011	$	0.595319	$	0.475835		226,491
Subaccount Inception Date September 6, 2007		2010	$	0.407258	$	0.595319		723,834
		2009	$	0.295037	$	0.407258		269,411
		2008	$	0.886151	$	0.295037		251
		2007	$	1.000000	$	0.886151		25
ProFund VP U.S. Government Plus		2011	$	1.147398	$	1.621663		4,402
Subaccount Inception Date September 6, 2007		2010	$	1.058149	$	1.147398		1,140
		2009	$	1.594749	$	1.058149		51,364
		2008	$	1.081409	$	1.594749		2,968
		2007	$	1.000000	$	1.081409		58,073
ProFund VP Utilities		2011	$	0.833820	$	0.964891		13,099
Subaccount Inception Date September 6, 2007		2010	$	0.799179	$	0.833820		15,698
		2009	$	0.732885	$	0.799179		15,033
		2008	$	1.073971	$	0.732885		5,067
		2007	$	1.000000	$	1.073971		121,856
Access VP High Yield FundSM		2011	$	1.276228	$	1.291291		59,080
Subaccount Inception Date September 6, 2007		2010	$	1.113652	$	1.276228		25,145
		2009	$	0.967317	$	1.113652		7,542
		2008	$	1.030204	$	0.967317		18,869
		2007	$	1.000000	$	1.030204		0
	Year		Separate Account Expense 1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.251623	$	1.262232		25,079,419
Subaccount Inception Date January 12, 2004		2010	$	1.168640	$	1.251623		27,712,543
		2009	$	0.949666	$	1.168640		30,084,967
		2008	$	1.226456	$	0.949666		24,847,589
		2007	$	1.172863	$	1.226456		21,950,893
		2006	$	1.090692	$	1.172863		17,780,460
		2005	$	1.054196	$	1.090692		13,057,143
		2004	$	1.000000	$	1.054196		6,701,588

95

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Growth - Service Class		2011	$	1.243101	$	1.155010		26,672,882
Subaccount Inception Date January 12, 2004		2010	$	1.100521	$	1.243101		34,348,040
		2009	$	0.862274	$	1.100521		36,414,160
		2008	$	1.452868	$	0.862274		39,045,964
		2007	$	1.371454	$	1.452868		62,598,944
		2006	$	1.207480	$	1.371454		56,059,145
		2005	$	1.094982	$	1.207480		32,683,905
		2004	$	1.000000	$	1.094982		17,684,973
TA Asset Allocation - Moderate - Service Class		2011	$	1.290702	$	1.275400		53,451,867
Subaccount Inception Date January 12, 2004		2010	$	1.189483	$	1.290702		62,168,068
		2009	$	0.956698	$	1.189483		70,185,774
		2008	$	1.315767	$	0.956698		63,844,826
		2007	$	1.239728	$	1.315767		88,466,273
		2006	$	1.131412	$	1.239728		85,301,959
		2005	$	1.071902	$	1.131412		62,676,342
		2004	$	1.000000	$	1.071902		26,223,695
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.287790	$	1.239917		111,789,160
Subaccount Inception Date January 12, 2004		2010	$	1.162860	$	1.287790		135,072,534
		2009	$	0.923050	$	1.162860		138,346,800
		2008	$	1.396825	$	0.923050		135,127,392
		2007	$	1.318249	$	1.396825		165,419,472
		2006	$	1.178429	$	1.318249		150,092,330
		2005	$	1.090230	$	1.178429		78,339,723
		2004	$	1.000000	$	1.090230		28,100,111
TA International Moderate Growth - Service Class		2011	$	0.956557	$	0.871423		8,045,933
Subaccount Inception Date May 1, 2006		2010	$	0.880687	$	0.956557		9,187,088
		2009	$	0.691190	$	0.880687		10,105,795
		2008	$	1.101698	$	0.691190		10,055,121
		2007	$	1.030768	$	1.101698		8,528,289
		2006	$	1.000000	$	1.030768		3,388,543
TA BlackRock Large Cap Value - Service Class		2011	$	1.219304	$	1.230848		3,402,092
Subaccount Inception Date January 12, 2004		2010	$	1.123538	$	1.219304		3,675,388
		2009	$	1.002877	$	1.123538		2,295,840
		2008	$	1.543893	$	1.002877		1,592,102
		2007	$	1.501867	$	1.543893		3,495,038
		2006	$	1.307095	$	1.501867		4,025,600
		2005	$	1.146312	$	1.307095		2,350,464
		2004	$	1.000000	$	1.146312		113,004
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.587181	$	1.469797		1,842,180
Subaccount Inception Date January 12, 2004		2010	$	1.397210	$	1.587181		2,389,432
		2009	$	1.066253	$	1.397210		1,917,463
		2008	$	1.882175	$	1.066253		1,863,659
		2007	$	2.052326	$	1.882175		3,594,492
		2006	$	1.467798	$	2.052326		5,386,808
		2005	$	1.316249	$	1.467798		3,292,076
		2004	$	1.000000	$	1.316249		1,651,781
TA JPMorgan Tactical Allocation - Service Class		2011	$	1.011845	$	1.031274		2,184,400
Subaccount Inception Date January 12, 2004		2010	$	1.031315	$	1.011845		2,524,481
		2009	$	1.007067	$	1.031315		2,711,619
		2008	$	1.072059	$	1.007067		2,552,391
		2007	$	1.095858	$	1.072059		4,593,319
		2006	$	1.085430	$	1.095858		6,814,686
		2005	$	1.051964	$	1.085430		6,514,910
		2004	$	1.000000	$	1.051964		2,536,735

96

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Janus Balanced - Service Class		2011	$	1.001403	$	0.879968		219,351
Subaccount Inception Date November 19, 2009		2010	$	0.985842	$	1.001403		391,671
		2009	$	0.986575	$	0.985842		78,695
TA Hanlon Balanced - Service Class		2011	$	0.970792	$	0.923880		913,834
Subaccount Inception Date November 19, 2009		2010	$	1.020671	$	0.970792		762,095
		2009	$	0.998162	$	1.020671		29,448
TA Hanlon Growth - Service Class		2011	$	0.999152	$	0.870065		173,668
Subaccount Inception Date November 19, 2009		2010	$	1.021338	$	0.999152		147,468
		2009	$	0.996400	$	1.021338		149,896
TA Hanlon Growth and Income - Service Class		2011	$	0.986000	$	0.898985		394,448
Subaccount Inception Date November 19, 2009		2010	$	1.022422	$	0.986000		384,843
		2009	$	0.997269	$	1.022422		41,194
TA Hanlon Income - Service Class		2011	$	0.990002	$	1.003967		3,098,691
Subaccount Inception Date November 19, 2009		2010	$	1.003681	$	0.990002		4,017,857
		2009	$	0.999959	$	1.003681		760,910
TA Jennison Growth - Service Class		2011	$	1.050003	$	1.026534		1,530,999
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.050003		1,205,266
TA JPMorgan Core Bond - Service Class		2011	$	1.305416	$	1.379309		3,385,136
Subaccount Inception Date January 12, 2004		2010	$	1.226908	$	1.305416		2,772,625
		2009	$	1.138484	$	1.226908		3,721,207
		2008	$	1.097942	$	1.138484		2,884,774
		2007	$	1.045357	$	1.097942		3,440,861
		2006	$	1.023833	$	1.045357		3,536,806
		2005	$	1.018111	$	1.023833		2,021,009
		2004	$	1.000000	$	1.018111		516,091
TA JPMorgan Enhanced Index - Service Class		2011	$	1.129096	$	1.117704		494,733
Subaccount Inception Date January 12, 2004		2010	$	0.997814	$	1.129096		271,632
		2009	$	0.783187	$	0.997814		333,608
		2008	$	1.272410	$	0.783187		263,046
		2007	$	1.238329	$	1.272410		383,657
		2006	$	1.093260	$	1.238329		857,799
		2005	$	1.075235	$	1.093260		898,759
		2004	$	1.000000	$	1.075235		853,056
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.199948	$	1.111454		718,555
Subaccount Inception Date January 12, 2004		2010	$	0.958353	$	1.199948		861,820
		2009	$	0.762538	$	0.958353		868,676
		2008	$	1.219714	$	0.762538		962,785
		2007	$	1.228722	$	1.219714		1,639,428
		2006	$	1.054253	$	1.228722		1,864,602
		2005	$	1.030790	$	1.054253		1,459,713
		2004	$	1.000000	$	1.030790		1,199,447
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.685992	$	1.507966		0
Subaccount Inception Date January 12, 2004		2010	$	1.264941	$	1.685992		1,496,434
		2009	$	0.940464	$	1.264941		1,448,899
		2008	$	1.619814	$	0.940464		1,165,576
		2007	$	1.339642	$	1.619814		1,787,119
		2006	$	1.296193	$	1.339642		2,187,569
		2005	$	1.134801	$	1.296193		1,659,773
		2004	$	1.000000	$	1.134801		1,541,201

97

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
TA AEGON High Yield Bond - Service Class		2011	$	1.361949	$	1.402741		2,795,667
Subaccount Inception Date January 12, 2004		2010	$	1.232408	$	1.361949		3,363,687
		2009	$	0.851767	$	1.232408		2,110,726
		2008	$	1.159947	$	0.851767		420,671
		2007	$	1.157439	$	1.159947		734,552
		2006	$	1.062008	$	1.157439		1,370,080
		2005	$	1.061939	$	1.062008		1,082,031
		2004	$	1.000000	$	1.061939		272,650
TA MFS International Equity - Service Class		2011	$	0.903862	$	0.799533		817,520
Subaccount Inception Date May 1, 2007		2010	$	0.831700	$	0.903862		1,395,246
		2009	$	0.638385	$	0.831700		1,145,200
		2008	$	1.005301	$	0.638385		903,506
		2007	$	1.000000	$	1.005301		676,088
TA PIMCO Total Return - Service Class		2011	$	1.287123	$	1.343583		6,329,179
Subaccount Inception Date January 12, 2004		2010	$	1.221698	$	1.287123		6,692,702
		2009	$	1.071283	$	1.221698		5,073,335
		2008	$	1.121880	$	1.071283		3,759,368
		2007	$	1.046662	$	1.121880		1,877,173
		2006	$	1.022468	$	1.046662		1,750,695
		2005	$	1.017090	$	1.022468		1,315,116
		2004	$	1.000000	$	1.017090		545,625
TA T. Rowe Price Small Cap - Service Class		2011	$	1.406447	$	1.406671		900,737
Subaccount Inception Date January 12, 2004		2010	$	1.064842	$	1.406447		1,399,627
		2009	$	0.781328	$	1.064842		907,749
		2008	$	1.247090	$	0.781328		920,090
		2007	$	1.158460	$	1.247090		1,223,144
		2006	$	1.137788	$	1.158460		2,119,133
		2005	$	1.046038	$	1.137788		2,776,673
		2004	$	1.000000	$	1.046038		887,232
TA Third Avenue Value - Service Class		2011	$	1.356739	$	1.142979		2,788,826
Subaccount Inception Date January 12, 2004		2010	$	1.195727	$	1.356739		3,581,978
		2009	$	0.902221	$	1.195727		4,226,005
		2008	$	1.559746	$	0.902221		4,255,929
		2007	$	1.568471	$	1.559746		8,497,888
		2006	$	1.374897	$	1.568471		9,377,195
		2005	$	1.177910	$	1.374897		7,013,399
		2004	$	1.000000	$	1.177910		2,506,585
TA Efficient Markets - Service Class		2011	$	1.333021	$	1.284573		98,465
Subaccount Inception Date November 10, 2008		2010	$	1.203984	$	1.333021		98,499
		2009	$	1.036844	$	1.203984		33,548
		2008	$	1.000000	$	1.036844		4,046
TA Multi-Managed Balanced - Service Class		2011	$	1.377957	$	1.408564		3,656,654
Subaccount Inception Date January 12, 2004		2010	$	1.128982	$	1.377957		3,303,572
		2009	$	0.909903	$	1.128982		2,511,053
		2008	$	1.369808	$	0.909903		1,611,889
		2007	$	1.226427	$	1.369808		2,126,335
		2006	$	1.144720	$	1.226427		1,700,807
		2005	$	1.077883	$	1.144720		576,182
		2004	$	1.000000	$	1.077883		280,106

98

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.200133	$	1.202130		815,630
Subaccount Inception Date January 12, 2004		2010	$	1.116003	$	1.200133		1,059,133
		2009	$	0.863600	$	1.116003		725,021
		2008	$	1.391399	$	0.863600		538,077
		2007	$	1.194028	$	1.391399		768,163
		2006	$	1.095234	$	1.194028		773,660
		2005	$	1.073591	$	1.095234		574,842
		2004	$	1.000000	$	1.073591		315,647
TA WMC Diversified Equity - Service Class		2011	$	1.158478	$	1.059174		0
Subaccount Inception Date January 12, 2004		2010	$	1.008900	$	1.158478		3,276,950
		2009	$	0.800981	$	1.008900		2,398,877
		2008	$	1.447069	$	0.800981		2,357,561
		2007	$	1.277517	$	1.447069		4,564,058
		2006	$	1.094685	$	1.277517		4,328,252
		2005	$	1.036150	$	1.094685		2,180,053
		2004	$	1.000000	$	1.036150		773,955
TA WMC Diversified Growth - Service Class		2011	$	1.232684	$	1.166780		6,218,447
Subaccount Inception Date January 12, 2004		2010	$	1.064988	$	1.232684		5,666,454
		2009	$	0.838623	$	1.064988		6,258,668
		2008	$	1.581529	$	0.838623		5,646,875
		2007	$	1.383426	$	1.581529		10,614,234
		2006	$	1.295525	$	1.383426		11,409,225
		2005	$	1.130826	$	1.295525		5,276,082
		2004	$	1.000000	$	1.130826		1,439,964
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005235		85,110
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988500		342,336
TA AEGON Money Market - Service Class		2011	$	1.042250	$	1.026951		10,139,264
Subbaccount Inception Date January 12, 2004		2010	$	1.057853	$	1.042250		12,273,033
		2009	$	1.073551	$	1.057853		15,172,709
		2008	$	1.066625	$	1.073551		26,254,341
		2007	$	1.033454	$	1.066625		6,542,781
		2006	$	1.004030	$	1.033454		5,214,197
		2005	$	0.992959	$	1.004030		5,467,485
		2004	$	1.000000	$	0.992959		4,555,720
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.868566	$	1.788376		2,329,894
Subaccount Inception Date May 1, 2004		2010	$	1.458329	$	1.868566		2,887,567
		2009	$	1.035826	$	1.458329		3,214,157
		2008	$	1.783618	$	1.035826		3,378,931
		2007	$	1.455505	$	1.783618		5,288,410
		2006	$	1.253895	$	1.455505		3,260,354
		2005	$	1.123655	$	1.253895		2,594,327
		2004	$	1.000000	$	1.123655		251,948
TA AEGON U.S. Government Securities - Service Class		2011	$	1.191621	$	1.259585		3,397,411
Subaccount Inception Date January 12, 2004		2010	$	1.160483	$	1.191621		3,868,350
		2009	$	1.130443	$	1.160483		4,796,583
		2008	$	1.068245	$	1.130443		6,632,759
		2007	$	1.025081	$	1.068245		503,358
		2006	$	1.009539	$	1.025081		491,167
		2005	$	1.004737	$	1.009539		552,723
		2004	$	1.000000	$	1.004737		270,027

99

CONDENSED FINANCIAL INFORMATION—(Continued)

	Year		Separate Account Expense 1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.076184	$	1.093979		183,139
Subaccount Inception Date November 19, 2009		2010	$	0.998250	$	1.076184		184,846
		2009	$	0.999959	$	0.998250		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.023942	$	1.023630		350,587
Subaccount Inception Date May 1, 2008		2010	$	0.938912	$	1.023942		360,522
		2009	$	0.817803	$	0.938912		402,275
		2008	$	1.000000	$	0.817803		93,778
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.975207	$	0.949931		561,741
Subaccount Inception Date May 1, 2008		2010	$	0.875931	$	0.975207		567,834
		2009	$	0.721758	$	0.875931		486,051
		2008	$	1.000000	$	0.721758		617,161
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.154451	$	1.092834		29,918
Subaccount Inception Date November 19, 2009		2010	$	1.024203	$	1.154451		25,622
		2009	$	0.999959	$	1.024203		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.543486	$	1.415524		2,571,234
Subaccount Inception Date January 12, 2004		2010	$	1.172796	$	1.543486		1,923,286
		2009	$	0.743435	$	1.172796		879,704
		2008	$	1.408940	$	0.743435		721,363
		2007	$	1.169999	$	1.408940		1,632,812
		2006	$	1.083581	$	1.169999		757,663
		2005	$	1.024849	$	1.083581		503,955
		2004	$	1.000000	$	1.024849		235,877
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.191621	$	1.259585		49,145,334
Subaccount Inception Date January 12, 2004		2010	$	1.160483	$	1.191621		32,477,224
		2009	$	1.130443	$	1.160483		55,499,845
		2008	$	1.068245	$	1.130443		86,447,326
		2007	$	1.025081	$	1.068245		2,524,107
		2006	$	1.009539	$	1.025081		83,026
		2005	$	1.004737	$	1.009539		18,538
		2004	$	1.000000	$	1.004737		232,276
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B		2011	$	1.344388	$	1.281555		123,547
Subaccount Inception Date November 10, 2008		2010	$	1.239595	$	1.344388		120,154
		2009	$	1.012991	$	1.239595		91,274
		2008	$	1.000000	$	1.012991		4,248
Fidelity® VIP Index 500 Portfolio – Service Class 2		2011	$	1.133764	$	1.136975		595,983
Subaccount Inception Date January 12, 2004		2010	$	1.003023	$	1.133764		816,193
		2009	$	0.806068	$	1.003023		723,849
		2008	$	1.302036	$	0.806068		693,664
		2007	$	1.256568	$	1.302036		1,200,240
		2006	$	1.104801	$	1.256568		822,286
		2005	$	1.072471	$	1.104801		838,388
		2004	$	1.000000	$	1.072471		414,039
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4		2011	$	1.374241	$	1.329378		145,305
Subaccount Inception Date November 10, 2008		2010	$	1.267151	$	1.374241		127,828
		2009	$	0.990309	$	1.267151		116,237
		2008	$	1.000000	$	0.990309		4,660
ProFund VP Asia 30		2011	$	0.965241	$	0.694263		326,913
Subaccount Inception Date September 6, 2007		2010	$	0.860100	$	0.965241		1,097,138
		2009	$	0.566146	$	0.860100		1,519,853
		2008	$	1.168595	$	0.566146		480,885
		2007	$	1.000000	$	1.168595		286,322

100

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.50%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Basic Materials		2011	$	1.087780	$	0.898623		804,291
Subaccount Inception Date September 6, 2007		2010	$	0.851293	$	1.087780		1,094,999
		2009	$	0.532145	$	0.851293		1,245,988
		2008	$	1.111999	$	0.532145		709,133
		2007	$	1.000000	$	1.111999		1,213,353
ProFund VP Bull		2011	$	0.798394	$	0.786626		242,002
Subaccount Inception Date June 21, 2007		2010	$	0.719828	$	0.798394		1,670,416
		2009	$	0.587586	$	0.719828		2,811,841
		2008	$	0.956882	$	0.587586		10,080
		2007	$	1.000000	$	0.956882		0
ProFund VP Consumer Services		2011	$	0.953426	$	0.991018		470,634
Subaccount Inception Date September 6, 2007		2010	$	0.797210	$	0.953426		251,451
		2009	$	0.618614	$	0.797210		52,493
		2008	$	0.915135	$	0.618614		11,281
		2007	$	1.000000	$	0.915135		0
ProFund VP Emerging Markets		2011	$	0.975623	$	0.771827		379,737
Subaccount Inception Date September 6, 2007		2010	$	0.902116	$	0.975623		2,820,053
		2009	$	0.563961	$	0.902116		2,383,553
		2008	$	1.147062	$	0.563961		528,098
		2007	$	1.000000	$	1.147062		103,211
ProFund VP Europe 30		2011	$	0.748109	$	0.671579		42,169
Subaccount Inception Date September 6, 2007		2010	$	0.739847	$	0.748109		39,320
		2009	$	0.567634	$	0.739847		65,668
		2008	$	1.028988	$	0.567634		139,591
		2007	$	1.000000	$	1.028988		1,863,053
ProFund VP Falling US Dollar		2011	$	0.965815	$	0.925649		56,625
Subaccount Inception Date September 6, 2007		2010	$	1.006338	$	0.965815		46,085
		2009	$	0.988656	$	1.006338		125,054
		2008	$	1.057631	$	0.988656		122,340
		2007	$	1.000000	$	1.057631		30,009
ProFund VP Financials		2011	$	0.521232	$	0.442504		137,995
Subaccount Inception Date September 6, 2007		2010	$	0.476920	$	0.521232		840,665
		2009	$	0.420885	$	0.476920		905,785
		2008	$	0.863846	$	0.420885		617,721
		2007	$	1.000000	$	0.863846		10,864
ProFund VP International		2011	$	0.721547	$	0.608963		467,194
Subaccount Inception Date September 6, 2007		2010	$	0.679357	$	0.721547		2,365,967
		2009	$	0.553209	$	0.679357		1,699,885
		2008	$	1.010008	$	0.553209		100,849
		2007	$	1.000000	$	1.010008		46,220
ProFund VP Japan		2011	$	0.532208	$	0.427142		263,283
Subaccount Inception Date September 6, 2007		2010	$	0.577952	$	0.532208		49,622
		2009	$	0.531699	$	0.577952		26,949
		2008	$	0.912345	$	0.531699		14,677
		2007	$	1.000000	$	0.912345		15,624
ProFund VP Mid-Cap		2011	$	0.947322	$	0.894304		366,640
Subaccount Inception Date September 6, 2007		2010	$	0.775131	$	0.947322		277,314
		2009	$	0.592091	$	0.775131		911,810
		2008	$	0.975170	$	0.592091		177,566
		2007	$	1.000000	$	0.975170		0

101

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.50%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Money Market		2011	$	0.975208	$	0.961014		2,931,180
Subaccount Inception Date June 21, 2007		2010	$	0.989638	$	0.975208		940,798
		2009	$	1.004153	$	0.989638		3,370,182
		2008	$	1.010793	$	1.004153		5,748,238
		2007	$	1.000000	$	1.010793		4,732,871
ProFund VP Oil & Gas		2011	$	0.894486	$	0.901092		909,799
Subaccount Inception Date September 6, 2007		2010	$	0.770963	$	0.894486		1,661,066
		2009	$	0.677516	$	0.770963		1,009,331
		2008	$	1.090746	$	0.677516		875,970
		2007	$	1.000000	$	1.090746		326,437
ProFund VP NASDAQ-100		2011	$	1.050226	$	1.049791		1,015,907
Subaccount Inception Date June 21, 2007		2010	$	0.901497	$	1.050226		752,809
		2009	$	0.601949	$	0.901497		544,242
		2008	$	1.062329	$	0.601949		134,963
		2007	$	1.000000	$	1.062329		67,304
ProFund VP Pharmaceuticals		2011	$	0.903420	$	1.033684		405,004
Subaccount Inception Date September 6, 2007		2010	$	0.912621	$	0.903420		87,706
		2009	$	0.792421	$	0.912621		148,447
		2008	$	0.999291	$	0.792421		283,595
		2007	$	1.000000	$	0.999291		4,749
ProFund VP Precious Metals		2011	$	1.402574	$	1.116355		962,861
Subaccount Inception Date September 6, 2007		2010	$	1.079645	$	1.402574		818,582
		2009	$	0.803253	$	1.070945		571,533
		2008	$	1.177574	$	0.803253		709,848
		2007	$	1.000000	$	1.177574		300,004
ProFund VP Short Emerging Markets		2011	$	0.435882	$	0.475238		40,095
Subaccount Inception Date September 6, 2007		2010	$	0.542321	$	0.435882		110,200
		2009	$	1.073337	$	0.542321		160,140
		2008	$	0.823937	$	1.073337		148,784
		2007	$	1.000000	$	0.823937		30,180
ProFund VP Short International		2011	$	0.772607	$	0.774934		24,070
Subaccount Inception Date September 6, 2007		2010	$	0.919315	$	0.772607		30,936
		2009	$	1.338416	$	0.919315		118,922
		2008	$	0.982833	$	1.338416		159,224
		2007	$	1.000000	$	0.982833		0
ProFund VP Short NASDAQ-100		2011	$	0.644640	$	0.568603		74,039
Subaccount Inception Date September 6, 2007		2010	$	0.830203	$	0.644640		81,099
		2009	$	1.420088	$	0.830203		128,047
		2008	$	0.972868	$	1.420088		113,508
		2007	$	1.000000	$	0.972868		6,757
ProFund VP Short Small-Cap		2011	$	0.617176	$	0.552805		53,167
Subaccount Inception Date June 21, 2007		2010	$	0.881623	$	0.617176		131,351
		2009	$	1.323222	$	0.881623		92,521
		2008	$	1.082446	$	1.323222		72,748
		2007	$	1.000000	$	1.082446		32,879
ProFund VP Small-Cap		2011	$	0.880205	$	0.818176		98,363
Subaccount Inception Date June 21, 2007		2010	$	0.715926	$	0.880205		346,026
		2009	$	0.576400	$	0.715926		146,198
		2008	$	0.905727	$	0.576400		95,097
		2007	$	1.000000	$	0.905727		53,675

102

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.50%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Small-Cap Value		2011	$	0.892448	$	0.843207		13,019
Subaccount Inception Date September 6, 2007		2010	$	0.741863	$	0.892448		115,604
		2009	$	0.625401	$	0.741863		372,858
		2008	$	0.915826	$	0.625401		317,475
		2007	$	1.000000	$	0.915826		17,981
ProFund VP Telecommunications		2011	$	0.742578	$	0.745296		30,768
Subaccount Inception Date September 6, 2007		2010	$	0.651519	$	0.742578		499,905
		2009	$	0.616193	$	0.651519		48,681
		2008	$	0.953755	$	0.616193		68
		2007	$	1.000000	$	0.953755		0
ProFund VP UltraSmall-Cap		2011	$	0.596291	$	0.476835		104,016
Subaccount Inception Date September 6, 2007		2010	$	0.407731	$	0.596291		373,964
		2009	$	0.295236	$	0.407731		778,330
		2008	$	0.886293	$	0.295236		67,518
		2007	$	1.000000	$	0.886293		9,778
ProFund VP U.S. Government Plus		2011	$	1.149283	$	1.625116		172,850
Subaccount Inception Date September 6, 2007		2010	$	1.059360	$	1.149283		225,417
		2009	$	1.595787	$	1.059360		360,713
		2008	$	1.081581	$	1.595787		707,081
		2007	$	1.000000	$	1.081581		327,769
ProFund VP Utilities		2011	$	0.835191	$	0.966953		1,165,035
Subaccount Inception Date September 6, 2007		2010	$	0.800103	$	0.835191		616,129
		2009	$	0.733367	$	0.800103		330,569
		2008	$	1.074139	$	0.733367		297,222
		2007	$	1.000000	$	1.074139		1,921,556
Access VP High Yield FundSM		2011	$	1.278324	$	1.294044		341,111
Subaccount Inception Date September 6, 2007		2010	$	1.114909	$	1.278324		483,053
		2009	$	0.967939	$	1.114929		1,239,527
		2008	$	1.030368	$	0.967939		1,183,180
		2007	$	1.000000	$	1.030368		0
			Separate Account Expense 1.45%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.206930	$	1.217763		0
Subaccount Inception Date January 12, 2004		2010	$	1.126367	$	1.206930		0
		2009	$	0.914860	$	1.126367		0
TA Asset Allocation - Growth - Service Class		2011	$	1.155024	$	1.073699		0
Subaccount Inception Date January 12, 2004		2010	$	1.022041	$	1.155024		1,756
		2009	$	0.800403	$	1.022041		0
TA Asset Allocation - Moderate - Service Class		2011	$	1.226047	$	1.212097		0
Subaccount Inception Date January 12, 2004		2010	$	1.129335	$	1.226047		0
		2009	$	0.907877	$	1.129335		0
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.202679	$	1.158539		0
Subaccount Inception Date January 12, 2004		2010	$	1.085472	$	1.202679		0
		2009	$	0.861199	$	1.085472		0
TA International Moderate Growth - Service Class		2011	$	0.958753	$	0.873854		0
Subaccount Inception Date May 1, 2006		2010	$	0.882282	$	0.958753		0
		2009	$	0.692094	$	0.882282		0

103

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.45%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA BlackRock Large Cap Value - Service Class		2011	$	1.034866	$	1.045169		0
Subaccount Inception Date January 12, 2004		2010	$	0.953119	$	1.034866		0
		2009	$	0.850325	$	0.953119		0
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.226067	$	1.135948		0
Subaccount Inception Date January 12, 2004		2010	$	1.078790	$	1.226067		0
		2009	$	0.822846	$	1.078790		0
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.968865	$	0.987954		0
Subaccount Inception Date January 12, 2004		2010	$	0.987022	$	0.968865		0
		2009	$	0.963343	$	0.987022		0
TA Janus Balanced - Service Class		2011	$	1.001949	$	0.880881		0
Subaccount Inception Date November 19, 2009		2010	$	0.985894	$	1.001949		0
		2009	$	0.986576	$	0.985894		0
TA Hanlon Balanced - Service Class		2011	$	0.971311	$	0.924841		0
Subaccount Inception Date November 19, 2009		2010	$	1.020733	$	0.971311		0
		2009	$	0.998164	$	1.020733		0
TA Hanlon Growth - Service Class		2011	$	0.999711	$	0.870991		0
Subaccount Inception Date November 19, 2009		2010	$	1.021402	$	0.999711		0
		2009	$	0.996402	$	1.021402		0
TA Hanlon Growth and Income - Service Class		2011	$	0.986536	$	0.899919		0
Subaccount Inception Date November 19, 2009		2010	$	1.022483	$	0.986536		0
		2009	$	0.997270	$	1.022483		0
TA Hanlon Income - Service Class		2011	$	0.990562	$	1.005034		0
Subaccount Inception Date November 19, 2009		2010	$	1.003739	$	0.990562		0
		2009	$	0.999961	$	1.003739		0
TA Jennison Growth - Service Class		2011	$	1.050358	$	1.027388		0
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.050358		0
TA JPMorgan Core Bond - Service Class		2011	$	1.269868	$	1.342410		0
Subaccount Inception Date January 12, 2004		2010	$	1.192914	$	1.269868		0
		2009	$	1.106407	$	1.192914		0
TA JPMorgan Enhanced Index - Service Class		2011	$	1.073994	$	1.063693		0
Subaccount Inception Date January 12, 2004		2010	$	0.948654	$	1.073994		0
		2009	$	0.744233	$	0.948654		0
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.218281	$	1.128988		0
Subaccount Inception Date January 12, 2004		2010	$	0.972516	$	1.218281		0
		2009	$	0.773416	$	0.972516		0
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.537941	$	1.376212		0
Subaccount Inception Date January 12, 2004		2010	$	1.153291	$	1.537941		0
		2009	$	0.857038	$	1.153291		0
TA AEGON High Yield Bond - Service Class		2011	$	1.313738	$	1.353757		0
Subaccount Inception Date January 12, 2004		2010	$	1.188199	$	1.313738		0
		2009	$	0.820813	$	1.188199		0
TA MFS International Equity - Service Class		2011	$	1.438861	$	1.273399		0
Subaccount Inception Date May 1, 2007		2010	$	1.323341	$	1.438861		0
		2009	$	1.000000	$	1.323341		0
TA PIMCO Total Return - Service Class		2011	$	1.255474	$	1.311188		0
Subaccount Inception Date January 12, 2004		2010	$	1.191068	$	1.255474		0
		2009	$	1.043906	$	1.191068		0

104

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.45%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA T. Rowe Price Small Cap - Service Class		2011	$	1.369933	$	1.370824		0
Subaccount Inception Date January 12, 2004		2010	$	1.036697	$	1.369933		0
		2009	$	0.760301	$	1.036697		0
TA Third Avenue Value - Service Class		2011	$	1.136173	$	0.957636		0
Subaccount Inception Date January 12, 2004		2010	$	1.000847	$	1.136173		0
		2009	$	0.754806	$	1.000847		0
TA Efficient Markets - Service Class		2011	$	1.304516	$	1.257736		0
Subaccount Inception Date November 10, 2008		2010	$	1.177671	$	1.304516		0
		2009	$	1.000000	$	1.177671		0
TA Multi-Managed Balanced - Service Class		2011	$	1.311015	$	1.340790		0
Subaccount Inception Date January 12, 2004		2010	$	1.073605	$	1.311015		0
		2009	$	0.864841	$	1.073605		0
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.196285	$	1.198858		0
Subaccount Inception Date January 12, 2004		2010	$	1.111884	$	1.196285		0
		2009	$	0.859987	$	1.111884		0
TA WMC Diversified Equity - Service Class		2011	$	1.154888	$	1.056418		0
Subaccount Inception Date January 12, 2004		2010	$	1.005288	$	1.154888		0
		2009	$	0.797731	$	1.005288		0
TA WMC Diversified Growth - Service Class		2011	$	1.120304	$	1.060938		0
Subaccount Inception Date January 12, 2004		2010	$	0.967424	$	1.120304		0
		2009	$	0.761428	$	0.967424		0
TA AEGON Tactical Vanguard ETF-Conservative-Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005265		0
TA AEGON Tactical Vanguard ETF-Growth-Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988528		0
TA AEGON Money Market-Service Class		2011	$	1.050132	$	1.035212		17,653
Subaccount Inception Date January 12, 2004		2010	$	1.065312	$	1.050132		17,682
		2009	$	1.080617	$	1.065312		0
TA Systematic Small Mid Cap Value-Service Class		2011	$	1.655327	$	1.585068		0
Subaccount Inception Date May 1, 2004		2010	$	1.291270	$	1.655327		0
		2009	$	0.916721	$	1.291270		0
TA AEGON U.S. Government Securities-Service Class		2011	$	1.177824	$	1.245621		0
Subaccount Inception Date January 12, 2004		2010	$	1.146487	$	1.177824		0
		2009	$	1.116258	$	1.146487		0
TA Vanguard ETF Index-Conservative-Service Class		2011	$	1.076773	$	1.095100		0
Subaccount Inception Date November 19, 2009		2010	$	0.998308	$	1.076773		0
		2009	$	0.999961	$	0.998308		0
TA Vanguard ETF Index-Balanced-Service Class		2011	$	1.247366	$	1.247608		0
Subaccount Inception Date May 1, 2008		2010	$	1.143221	$	1.247366		0
		2009	$	1.000000	$	1.143221		0
TA Vanguard ETF Index-Growth-Service Class		2011	$	1.333522	$	1.299609		0
Subaccount Inception Date May 1, 2008		2010	$	1.197178	$	1.333522		0
		2009	$	1.000000	$	1.197178		0
TA Vanguard ETF Index-Aggressive Growth-Service Class		2011	$	1.155086	$	1.093985		0
Subaccount Inception Date November 19, 2009		2010	$	1.024265	$	1.155086		0
		2009	$	0.999961	$	1.024265		0
TA Morgan Stanley Mid Cap Growth-Service Class		2011	$	1.543882	$	1.416584		0
Subaccount Inception Date January 12, 2004		2010	$	1.172523	$	1.543882		0
		2009	$	0.742888	$	1.172523		0

105

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.45%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.177824	$	1.245621		0
Subaccount Inception Date January 12, 2004		2010	$	1.146487	$	1.177824		0
		2009	$	1.116258	$	1.146487		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.311435	$	1.250761		0
Subaccount Inception Date November 10, 2008		2010	$	1.208620	$	1.311435		0
		2009	$	1.000000	$	1.208620		0
Fidelity® VIP Index 500 Portfolio – Service Class 2		2011	$	1.078396	$	1.081981		0
Subaccount Inception Date January 12, 2004		2010	$	0.953569	$	1.078396		0
		2009	$	0.765955	$	0.953569		0
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.357922	$	1.314237		0
Subaccount Inception Date November 10, 2008		2010	$	1.251483	$	1.357922		0
		2009	$	1.000000	$	1.251483		0
ProFund VP Asia 30		2011	$	1.421355	$	1.022822		0
Subaccount Inception Date September 6, 2007		2010	$	1.265897	$	1.421355		0
		2009	$	1.000000	$	1.265897		0
ProFund VP Basic Materials		2011	$	1.701306	$	1.406156		0
Subaccount Inception Date September 6, 2007		2010	$	1.330779	$	1.701306		0
		2009	$	1.000000	$	1.330779		0
ProFund VP Consumer Services		2011	$	1.446987	$	1.504771		0
Subaccount Inception Date September 6, 2007		2010	$	1.209301	$	1.446987		0
		2009	$	1.000000	$	1.209301		0
ProFund VP Emerging Markets		2011	$	1.410670	$	1.116545		0
Subaccount Inception Date September 6, 2007		2010	$	1.303756	$	1.410670		0
		2009	$	1.000000	$	1.303756		0
ProFund VP Europe 30		2011	$	1.304979	$	1.172059		0
Subaccount Inception Date September 6, 2007		2010	$	1.289918	$	1.304979		0
		2009	$	1.000000	$	1.289918		0
ProFund VP Falling US Dollar		2011	$	1.015386	$	0.973640		0
Subaccount Inception Date September 6, 2007		2010	$	1.057468	$	1.015386		0
		2009	$	1.000000	$	1.057468		0
ProFund VP Financials		2011	$	1.320876	$	1.121928		0
Subaccount Inception Date September 6, 2007		2010	$	1.207996	$	1.320876		0
		2009	$	1.000000	$	1.207996		0
ProFund VP International		2011	$	1.342232	$	1.133353		0
Subaccount Inception Date September 6, 2007		2010	$	1.263119	$	1.342232		0
		2009	$	1.000000	$	1.263119		0
ProFund VP Japan		2011	$	1.004447	$	0.806560		0
Subaccount Inception Date September 6, 2007		2010	$	1.090254	$	1.004447		0
		2009	$	1.000000	$	1.090254		0
ProFund VP Mid-Cap		2011	$	1.502397	$	1.419010		0
Subaccount Inception Date September 6, 2007		2010	$	1.228705	$	1.502397		0
		2009	$	1.000000	$	1.228705		0
ProFund VP Oil & Gas		2011	$	1.309174	$	1.319485		0
Subaccount Inception Date September 6, 2007		2010	$	1.127829	$	1.309174		0
		2009	$	1.000000	$	1.127826		0
ProFund VP Pharmaceuticals		2011	$	1.271652	$	1.455722		0
Subaccount Inception Date September 6, 2007		2010	$	1.283970	$	1.271652		0
		2009	$	1.000000	$	1.283970		0

106

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.45%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Precious Metals		2011	$	1.692592	$	1.347851		0
Subaccount Inception Date September 6, 2007		2010	$	1.291746	$	1.692592		0
		2009	$	1.000000	$	1.291746		0
ProFund VP Short Emerging Markets		2011	$	0.557247	$	0.607859		0
Subaccount Inception Date September 6, 2007		2010	$	0.692979	$	0.557247		0
		2009	$	1.000000	$	0.692979		0
ProFund VP Short International		2011	$	0.616162	$	0.618329		0
Subaccount Inception Date September 6, 2007		2010	$	0.732801	$	0.616162		0
		2009	$	1.000000	$	0.732801		0
ProFund VP Short NASDAQ-100		2011	$	0.567767	$	0.501040		0
Subaccount Inception Date September 6, 2007		2010	$	0.730834	$	0.567767		0
		2009	$	1.000000	$	0.730834		0
ProFund VP Small-Cap Value		2011	$	1.439333	$	1.360581		0
Subaccount Inception Date September 6, 2007		2010	$	1.195885	$	1.439333		0
		2009	$	1.000000	$	1.195885		0
ProFund VP Telecommunications		2011	$	1.210454	$	1.215463		0
Subaccount Inception Date September 6, 2007		2010	$	1.061498	$	1.210454		0
		2009	$	1.000000	$	1.061498		0
ProFund VP UltraSmall-Cap		2011	$	2.147900	$	1.718487		0
Subaccount Inception Date September 6, 2007		2010	$	1.467943	$	2.147900		0
		2009	$	1.000000	$	1.467943		0
ProFund VP U.S. Government Plus		2011	$	0.976213	$	1.381069		0
Subaccount Inception Date September 6, 2007		2010	$	0.899390	$	0.976213		0
		2009	$	1.000000	$	0.899390		0
ProFund VP Utilities		2011	$	1.236687	$	1.432491		0
Subaccount Inception Date September 6, 2007		2010	$	1.184159	$	1.236687		0
		2009	$	1.000000	$	1.184159		0
Access VP High Yield FundSM		2011	$	1.406717	$	1.424715		0
Subaccount Inception Date September 6, 2007		2010	$	1.226307	$	1.406717		0
		2009	$	1.000000	$	1.226307		0
			Separate Account Expense 1.40%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.210263	$	1.221732		34,870
Subaccount Inception Date January 12, 2004		2010	$	1.128913	$	1.210263		0
		2009	$	0.916476	$	1.128913		0
TA Asset Allocation - Growth - Service Class		2011	$	1.158210	$	1.077192		3,342
Subaccount Inception Date January 12, 2004		2010	$	1.024361	$	1.158210		16,911
		2009	$	0.801816	$	1.024361		0
TA Asset Allocation - Moderate - Service Class		2011	$	1.229464	$	1.216073		83,307
Subaccount Inception Date January 12, 2004		2010	$	1.131923	$	1.229464		0
		2009	$	0.909502	$	1.131923		0
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.206013	$	1.162321		52,504
Subaccount Inception Date January 12, 2004		2010	$	1.087945	$	1.206013		68,589
		2009	$	0.862730	$	1.087945		86,345
TA International Moderate Growth - Service Class		2011	$	0.960974	$	0.876311		0
Subaccount Inception Date May 1, 2006		2010	$	0.883896	$	0.960974		0
		2009	$	0.693018	$	0.883896		0

107

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.40%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA BlackRock Large Cap Value - Service Class		2011	$	1.037741	$	1.048593		0
Subaccount Inception Date January 12, 2004		2010	$	0.955293	$	1.037741		0
		2009	$	0.851838	$	0.955293		0
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.229438	$	1.139639		0
Subaccount Inception Date January 12, 2004		2010	$	1.081219	$	1.229438		0
		2009	$	0.824297	$	1.081219		0
TA JPMorgan Tactical Allocation - Service Class		2011	$	0.971523	$	0.991158		0
Subaccount Inception Date January 12, 2004		2010	$	0.989251	$	0.971523		0
		2009	$	0.965040	$	0.989251		0
TA Janus Balanced - Service Class		2011	$	1.002498	$	0.881788		0
Subaccount Inception Date November 19, 2009		2010	$	0.985954	$	1.002498		0
		2009	$	0.986578	$	0.985954		0
TA Hanlon Balanced - Service Class		2011	$	0.971851	$	0.925800		0
Subaccount Inception Date November 19, 2009		2010	$	1.020793	$	0.971851		0
		2009	$	0.998165	$	1.020793		0
TA Hanlon Growth - Service Class		2011	$	1.000262	$	0.871893		0
Subaccount Inception Date November 19, 2009		2010	$	1.021459	$	1.000262		0
		2009	$	0.996403	$	1.021459		0
TA Hanlon Growth and Income - Service Class		2011	$	0.987075	$	0.900846		0
Subaccount Inception Date November 19, 2009		2010	$	1.022540	$	0.987075		0
		2009	$	0.997271	$	1.022540		0
TA Hanlon Income - Service Class		2011	$	0.991106	$	1.006077		0
Subaccount Inception Date November 19, 2009		2010	$	1.003803	$	0.991106		0
		2009	$	0.999962	$	1.003803		0
TA Jennison Growth - Service Class		2011	$	1.050697	$	1.028233		0
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.050697		0
TA JPMorgan Core Bond - Service Class		2011	$	1.273407	$	1.346808		0
Subaccount Inception Date January 12, 2004		2010	$	1.195638	$	1.273407		0
		2009	$	1.108386	$	1.195638		0
TA JPMorgan Enhanced Index - Service Class		2011	$	1.076958	$	1.067163		0
Subaccount Inception Date January 12, 2004		2010	$	0.950807	$	1.076958		53,284
		2009	$	0.745552	$	0.950807		0
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.221632	$	1.132649		0
Subaccount Inception Date January 12, 2004		2010	$	0.974715	$	1.221632		0
		2009	$	0.774778	$	0.974715		0
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.542200	$	1.380709		0
Subaccount Inception Date January 12, 2004		2010	$	1.155922	$	1.542200		0
		2009	$	0.858570	$	1.155922		0
TA AEGON High Yield Bond - Service Class		2011	$	1.317358	$	1.358156		0
Subaccount Inception Date January 12, 2004		2010	$	1.190883	$	1.317358		0
		2009	$	0.822257	$	1.190883		0
TA MFS International Equity - Service Class		2011	$	1.440055	$	1.275088		0
Subaccount Inception Date May 1, 2007		2010	$	1.323784	$	1.440055		0
		2009	$	1.000000	$	1.323784		0
TA PIMCO Total Return - Service Class		2011	$	1.258931	$	1.315442		0
Subaccount Inception Date January 12, 2004		2010	$	1.193763	$	1.258931		0
		2009	$	1.045760	$	1.193763		0

108

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.40%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA T. Rowe Price Small Cap - Service Class		2011	$	1.373689	$	1.375264		0
Subaccount Inception Date January 12, 2004		2010	$	1.039025	$	1.373689		0
		2009	$	0.761632	$	1.039025		0
TA Third Avenue Value - Service Class		2011	$	1.139284	$	0.960723		0
Subaccount Inception Date January 12, 2004		2010	$	1.003095	$	1.139284		0
		2009	$	0.756125	$	1.003095		0
TA Efficient Markets - Service Class		2011	$	1.305599	$	1.259396		0
Subaccount Inception Date November 10, 2008		2010	$	1.178060	$	1.305599		0
		2009	$	1.000000	$	1.178060		0
TA Multi-Managed Balanced - Service Class		2011	$	1.314630	$	1.345159		0
Subaccount Inception Date January 12, 2004		2010	$	1.076038	$	1.314630		0
		2009	$	0.866382	$	1.076038		0
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.199589	$	1.202757		0
Subaccount Inception Date January 12, 2004		2010	$	1.114409	$	1.199589		0
		2009	$	0.861516	$	1.114409		0
TA WMC Diversified Equity - Service Class		2011	$	1.158109	$	1.059873		0
Subaccount Inception Date January 12, 2004		2010	$	1.007592	$	1.158109		0
		2009	$	0.799158	$	1.007592		0
TA WMC Diversified Growth - Service Class		2011	$	1.123397	$	1.064387		21,762
Subaccount Inception Date January 12, 2004		2010	$	0.969620	$	1.123397		23,622
		2009	$	0.762773	$	0.969620		0
TA AEGON Tactical Vanguard ETF-Conservative-Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005293		0
TA AEGON Tactical Vanguard ETF-Growth-Service Class
Subaccount Inception Date December 9, 2001		2011	$	0.000000	$	0.988557		0
TA AEGON Money Market-Service Class		2011	$	1.053048	$	1.038566		37,209
Subaccount Inception Date January 12, 2004		2010	$	1.067696	$	1.053048		0
		2009	$	1.082560	$	1.067696		0
TA Systematic Small Mid Cap Value-Service Class		2011	$	1.659880	$	1.590208		0
Subaccount Inception Date May 1, 2004		2010	$	1.294199	$	1.659880		0
		2009	$	0.918345	$	1.294199		0
TA AEGON U.S. Government Securities-Service Class		2011	$	1.181079	$	1.249682		0
Subaccount Inception Date January 12, 2004		2010	$	1.149079	$	1.181079		2,127
		2009	$	1.118226	$	1.149079		0
TA Vanguard ETF Index-Conservative-Service Class		2011	$	1.077372	$	1.096261		0
Subaccount Inception Date November 19, 2009		2010	$	0.998364	$	1.077372		0
		2009	$	0.999962	$	0.998364		0
TA Vanguard ETF Index-Balanced-Service Class		2011	$	1.248380	$	1.249240		0
Subaccount Inception Date May 1, 2008		2010	$	1.143588	$	1.248380		0
		2009	$	1.000000	$	1.143588		0
TA Vanguard ETF Index-Growth-Service Class		2011	$	1.334613	$	1.301303		0
Subaccount Inception Date May 1, 2008		2010	$	1.197569	$	1.334613		0
		2009	$	1.000000	$	1.197569		0
TA Vanguard ETF Index-Aggressive Growth-Service Class		2011	$	1.155720	$	1.095118		0
Subaccount Inception Date November 19, 2009		2010	$	1.024327	$	1.155720		0
		2009	$	0.999962	$	1.024327		0
TA Morgan Stanley Mid Cap Growth-Service Class		2011	$	1.548119	$	1.421163		0
Subaccount Inception Date January 12, 2004		2010	$	1.175160	$	1.548119		0
		2009	$	0.744199	$	1.175160		0

109

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.40%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.181079	$	1.249682		63,115
Subaccount Inception Date January 12, 2004		2010	$	1.149079	$	1.181079		19,552
		2009	$	1.118226	$	1.149079		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.312517	$	1.252407		0
Subaccount Inception Date November 10, 2008		2010	$	1.209009	$	1.312517		0
		2009	$	1.000000	$	1.209009		0
Fidelity® VIP Index 500 Portfolio-Service Class 2		2011	$	1.081388	$	1.085514		0
Subaccount Inception Date January 12, 2004		2010	$	0.955752	$	1.081388		0
		2009	$	0.767315	$	0.955752		0
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.359011	$	1.315935		0
Subaccount Inception Date November 10, 2008		2010	$	1.251880	$	1.359011		0
		2009	$	1.000000	$	1.251880		0
ProFund VP Asia 30		2011	$	1.422512	$	1.024162		0
Subaccount Inception Date September 6, 2007		2010	$	1.266311	$	1.422512		0
		2009	$	1.000000	$	1.266311		0
ProFund VP Basic Materials		2011	$	1.702705	$	1.408005		0
Subaccount Inception Date September 6, 2007		2010	$	1.331219	$	1.702705		0
		2009	$	1.000000	$	1.331219		0
ProFund VP Consumer Services		2011	$	1.448182	$	1.506760		0
Subaccount Inception Date September 6, 2007		2010	$	1.209790	$	1.448182		0
		2009	$	1.000000	$	1.209709		0
ProFund VP Emerging Markets		2011	$	1.411833	$	1.118014		0
Subaccount Inception Date September 6, 2007		2010	$	1.304178	$	1.411833		0
		2009	$	1.000000	$	1.304178		0
ProFund VP Europe 30		2011	$	1.306032	$	1.173585		0
Subaccount Inception Date September 6, 2007		2010	$	1.290330	$	1.306032		0
		2009	$	1.000000	$	1.290330		0
ProFund VP Falling US Dollar		2011	$	1.016201	$	0.974902		0
Subaccount Inception Date September 6, 2007		2010	$	1.057807	$	1.016201		0
		2009	$	1.000000	$	1.057807		0
ProFund VP Financials		2011	$	1.321954	$	1.123393		0
Subaccount Inception Date September 6, 2007		2010	$	1.208382	$	1.321954		0
		2009	$	1.000000	$	1.208382		0
ProFund VP International		2011	$	1.343341	$	1.134848		0
Subaccount Inception Date September 6, 2007		2010	$	1.263533	$	1.343341		0
		2009	$	1.000000	$	1.263533		0
ProFund VP Japan		2011	$	1.005271	$	0.807608		0
Subaccount Inception Date September 6, 2007		2010	$	1.090598	$	1.005271		0
		2009	$	1.000000	$	1.090598		0
ProFund VP Mid-Cap		2011	$	1.503626	$	1.420865		0
Subaccount Inception Date September 6, 2007		2010	$	1.229101	$	1.503626		0
		2009	$	1.000000	$	1.229101		0
ProFund VP Oil & Gas		2011	$	1.310248	$	1.321227		0
Subaccount Inception Date September 6, 2007		2010	$	1.128199	$	1.310248		0
		2009	$	1.000000	$	1.128199		0
ProFund VP Pharmaceuticals		2011	$	1.272678	$	1.457609		0
Subaccount Inception Date September 6, 2007		2010	$	1.284382	$	1.272678		0
		2009	$	1.000000	$	1.284382		0

110

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.40%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Precious Metals		2011	$	1.693971	$	1.349614		0
Subaccount Inception Date September 6, 2007		2010	$	1.292168	$	1.693971		0
		2009	$	1.000000	$	1.292168		0
ProFund VP Short Emerging Markets		2011	$	0.557708	$	0.608662		0
Subaccount Inception Date September 6, 2007		2010	$	0.693203	$	0.557708		0
		2009	$	1.000000	$	0.693203		0
ProFund VP Short International		2011	$	0.616673	$	0.619131		0
Subaccount Inception Date September 6, 2007		2010	$	0.733046	$	0.616673		0
		2009	$	1.000000	$	0.733046		0
ProFund VP Short NASDAQ-100		2011	$	0.568237	$	0.501693		0
Subaccount Inception Date September 6, 2007		2010	$	0.731079	$	0.568237		0
		2009	$	1.000000	$	0.731079		0
ProFund VP Small-Cap Value		2011	$	1.440504	$	1.362358		0
Subaccount Inception Date September 6, 2007		2010	$	1.196271	$	1.440504		0
		2009	$	1.000000	$	1.196271		0
ProFund VP Telecommunications		2011	$	1.211458	$	1.217074		0
Subaccount Inception Date September 6, 2007		2010	$	1.061843	$	1.211458		0
		2009	$	1.000000	$	1.061843		0
ProFund VP UltraSmall-Cap		2011	$	2.149657	$	1.720742		0
Subaccount Inception Date September 6, 2007		2010	$	1.468414	$	2.149657		0
		2009	$	1.000000	$	1.468414		0
ProFund VP U.S. Government Plus		2011	$	0.977009	$	1.382867		0
Subaccount Inception Date September 6, 2007		2010	$	0.899682	$	0.977009		0
		2009	$	1.000000	$	0.899682		0
ProFund VP Utilities		2011	$	1.237717	$	1.434395		0
Subaccount Inception Date September 6, 2007		2010	$	1.184554	$	1.237717		0
		2009	$	1.000000	$	1.184554		0
Access VP High Yield FundSM		2011	$	1.407869	$	1.426586		0
Subaccount Inception Date September 6, 2007		2010	$	1.226708	$	1.407869		0
		2009	$	1.000000	$	1.226708		0
			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.268936	$	1.282207		26,243,072
Subaccount Inception Date January 12, 2004		2010	$	1.182476	$	1.268936		28,335,562
		2009	$	0.959024	$	1.182476		31,823,074
		2008	$	1.236094	$	0.959024		27,578,990
		2007	$	1.179723	$	1.236094		21,715,887
		2006	$	1.094917	$	1.179723		22,531,688
		2005	$	1.056206	$	1.094917		13,481,138
		2004	$	1.000000	$	1.056206		7,438,702
TA Asset Allocation - Growth - Service Class		2011	$	1.260278	$	1.173279		11,369,194
Subaccount Inception Date January 12, 2004		2010	$	1.113540	$	1.260278		15,046,397
		2009	$	0.870778	$	1.113540		18,105,798
		2008	$	1.464294	$	0.870778		21,576,330
		2007	$	1.137950	$	1.464294		34,944,448
		2006	$	1.212189	$	1.379502		23,839,536
		2005	$	1.097088	$	1.212189		13,224,932
		2004	$	1.000000	$	1.097088		7,770,366

111

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Moderate - Service Class		2011	$	1.308595	$	1.295626		42,001,920
Subaccount Inception Date January 12, 2004		2010	$	1.203595	$	1.308595		47,161,093
		2009	$	0.966133	$	1.203595		53,217,335
		2008	$	1.326110	$	0.966133		50,663,772
		2007	$	1.246994	$	1.326110		61,006,548
		2006	$	1.135804	$	1.246994		49,262,858
		2005	$	1.073956	$	1.135804		30,062,601
		2004	$	1.000000	$	1.073956		12,455,817
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.305635	$	1.259576		56,515,625
Subaccount Inception Date January 12, 2004		2010	$	1.176650	$	1.305635		68,894,543
		2009	$	0.932157	$	1.176650		76,315,193
		2008	$	1.407808	$	0.932157		73,960,727
		2007	$	1.325987	$	1.407808		89,127,125
		2006	$	1.183008	$	1.325987		66,689,795
		2005	$	1.092308	$	1.183008		31,440,134
		2004	$	1.000000	$	1.092308		10,731,921
TA International Moderate Growth - Service Class		2011	$	0.965399	$	0.881220		13,075,231
Subaccount Inception Date May 1, 2006		2010	$	0.887090	$	0.965399		14,707,372
		2009	$	0.694837	$	0.887090		16,677,579
		2008	$	1.105324	$	0.694837		16,641,379
		2007	$	1.032112	$	1.105324		11,929,706
		2006	$	1.000000	$	1.032112		4,122,620
TA BlackRock Large Cap Value - Service Class		2011	$	1.236206	$	1.250371		3,562,330
Subaccount Inception Date January 12, 2004		2010	$	1.136874	$	1.236206		3,794,718
		2009	$	1.012765	$	1.136874		3,289,745
		2008	$	1.556026	$	1.012765		2,442,334
		2007	$	1.510675	$	1.556026		4,030,271
		2006	$	1.312176	$	1.510675		3,813,350
		2005	$	1.148513	$	1.312176		2,063,990
		2004	$	1.000000	$	1.148513		180,955
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.609153	$	1.493077		1,557,673
Subaccount Inception Date January 12, 2004		2010	$	1.413773	$	1.609153		1,873,499
		2009	$	1.076767	$	1.413773		2,050,421
		2008	$	1.896969	$	1.076767		2,510,126
		2007	$	2.064359	$	1.896969		4,606,626
		2006	$	1.473510	$	2.064359		4,592,275
		2005	$	1.318771	$	1.473510		2,567,797
		2004	$	1.000000	$	1.318771		1,113,098
TA JPMorgan Tactical Allocation - Service Class		2011	$	1.025870	$	1.047624		1,987,119
Subaccount Inception Date January 12, 2004		2010	$	1.043553	$	1.025870		2,349,313
		2009	$	1.017007	$	1.043553		3,161,804
		2008	$	1.080495	$	1.017007		2,988,964
		2007	$	1.102296	$	1.080495		6,034,324
		2006	$	1.089647	$	1.102296		7,520,084
		2005	$	1.053978	$	1.089647		6,006,754
		2004	$	1.000000	$	1.053978		2,847,654
TA Janus Balanced - Service Class		2011	$	1.003605	$	0.883639		603,257
Subaccount Inception Date November 19, 2009		2010	$	0.986069	$	1.003605		470,684
		2009	$	0.986580	$	0.986069		209,587
TA Hanlon Balanced - Service Class		2011	$	0.972919	$	0.927731		527,976
Subaccount Inception Date November 19, 2009		2010	$	1.020908	$	0.972919		764,680
		2009	$	0.998168	$	1.020908		315,271

112

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Hanlon Growth-Service Class		2011	$	1.001344	$	0.873700		334,676
Subaccount Inception Date November 19, 2009		2010	$	1.021578	$	1.001344		277,655
		2009	$	0.996406	$	1.021578		71,230
TA Hanlon Growth and Income-Service Class		2011	$	0.988165	$	0.902735		556,759
Subaccount Inception Date November 19, 2009		2010	$	1.022659	$	0.988165		896,021
		2009	$	0.997274	$	1.022659		604,997
TA Hanlon Income-Service Class		2011	$	0.992213	$	1.008203		4,241,023
Subaccount Inception Date November 19, 2009		2010	$	1.003918	$	0.992213		5,668,912
		2009	$	0.999965	$	1.003918		2,217,258
TA Jennison Growth-Service Class		2011	$	1.051396	$	1.029921		1,282,694
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.051396		832,783
TA JPMorgan Core Bond-Service Class		2011	$	1.323490	$	1.401158		4,936,968
Subaccount Inception Date January 12, 2004		2010	$	1.241443	$	1.323490		3,200,335
		2009	$	1.149711	$	1.241443		3,198,952
		2008	$	1.106584	$	1.149711		3,613,509
		2007	$	1.051502	$	1.106584		3,643,131
		2006	$	1.027820	$	1.051502		3,508,252
		2005	$	1.020058	$	1.027820		2,982,337
		2004	$	1.000000	$	1.020058		2,505,827
TA JPMorgan Enhanced Index-Service Class		2011	$	1.144745	$	1.135443		1,439,777
Subaccount Inception Date January 12, 2004		2010	$	1.009652	$	1.144745		1,368,086
		2009	$	0.790918	$	1.009652		110,010
		2008	$	1.282414	$	0.790918		225,784
		2007	$	1.245586	$	1.282414		354,935
		2006	$	1.097511	$	1.245586		344,471
		2005	$	1.077296	$	1.097511		125,645
		2004	$	1.000000	$	1.077296		34,763
TA Morgan Stanley Capital Growth-Service Class		2011	$	1.216581	$	1.129079		554,242
Subaccount Inception Date January 12, 2004		2010	$	0.969730	$	1.216581		738,338
		2009	$	0.770061	$	0.969730		502,724
		2008	$	1.229296	$	0.770061		628,820
		2007	$	1.235917	$	1.229296		2,092,455
		2006	$	1.058344	$	1.235917		2,075,712
		2005	$	1.032766	$	1.058344		1,133,099
		2004	$	1.000000	$	1.032766		951,346
TA Morgan Stanley Growth Opportunities-Service Class		2011	$	1.709305	$	1.531815		3,736
Subaccount Inception Date January 12, 2004		2010	$	1.279903	$	1.709305		1,094,889
		2009	$	0.949725	$	1.279903		975,673
		2008	$	1.632524	$	0.949725		1,083,646
		2007	$	1.347477	$	1.632524		2,104,212
		2006	$	1.301223	$	1.347477		1,551,162
		2005	$	1.136968	$	1.301223		1,187,706
		2004	$	1.000000	$	1.136968		601,677
Transamerica AEGON High Yield Bond VP-Service Class		2011	$	1.380792	$	1.424950		1,571,037
Subaccount Inception Date January 12, 2004		2010	$	1.246996	$	1.380792		1,877,138
		2009	$	0.860156	$	1.246996		1,447,721
		2008	$	1.169068	$	0.860156		273,704
		2007	$	1.164231	$	1.169068		1,135,840
		2006	$	1.066138	$	1.164231		1,207,769
		2005	$	1.063970	$	1.066138		1,336,802
		2004	$	1.000000	$	1.063970		365,297

113

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA MFS International Equity - Service Class		2011	$	0.910443	$	0.806938		678,766
Subaccount Inception Date May 1, 2007		2010	$	0.836106	$	0.910443		873,357
		2009	$	0.640500	$	0.836106		689,451
		2008	$	1.006623	$	0.640500		857,397
		2007	$	1.000000	$	1.006623		1,158,212
TA PIMCO Total Return - Service Class		2011	$	1.304979	$	1.364904		10,092,619
Subaccount Inception Date January 12, 2004		2010	$	1.236202	$	1.304979		9,170,619
		2009	$	1.081866	$	1.236202		8,636,720
		2008	$	1.130727	$	1.081866		5,695,389
		2007	$	1.052809	$	1.130727		3,668,990
		2006	$	1.026438	$	1.052809		3,244,087
		2005	$	1.019031	$	1.026438		3,128,295
		2004	$	1.000000	$	1.019031		1,557,580
TA T. Rowe Price Small Cap - Service Class		2011	$	1.425913	$	1.428961		836,993
Subaccount Inception Date January 12, 2004		2010	$	1.077466	$	1.425913		951,102
		2009	$	0.789033	$	1.077466		1,138,297
		2008	$	1.256895	$	0.789033		917,479
		2007	$	1.165265	$	1.256895		1,582,641
		2006	$	1.142228	$	1.165265		1,212,018
		2005	$	1.048051	$	1.142228		1,494,414
		2004	$	1.000000	$	1.048051		883,026
TA Third Avenue Value - Service Class		2011	$	1.375534	$	1.161090		2,298,242
Subaccount Inception Date January 12, 2004		2010	$	1.209910	$	1.375534		3,154,339
		2009	$	0.911125	$	1.209910		3,854,329
		2008	$	1.572021	$	0.911125		4,696,913
		2007	$	1.577675	$	1.572021		8,632,013
		2006	$	1.380259	$	1.577675		8,186,835
		2005	$	1.180178	$	1.380259		5,480,587
		2004	$	1.000000	$	1.180178		1,738,042
TA Efficient Markets - Service Class		2011	$	1.338654	$	1.292543		215,946
Subaccount Inception Date November 10, 2008		2010	$	1.206694	$	1.338654		85,869
		2009	$	1.037124	$	1.206694		42,717
		2008	$	1.000000	$	1.037124		0
TA Multi-Managed Balanced - Service Class		2011	$	1.397054	$	1.430898		3,332,970
Subaccount Inception Date January 12, 2004		2010	$	1.142370	$	1.397054		3,204,027
		2009	$	0.918880	$	1.142370		2,146,226
		2008	$	1.380569	$	0.918880		1,914,602
		2007	$	1.233614	$	1.380569		1,583,382
		2006	$	1.149166	$	1.233614		760,319
		2005	$	1.079942	$	1.149166		334,405
		2004	$	1.000000	$	1.079942		181,833
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.216774	$	1.221187		793,063
Subaccount Inception Date January 12, 2004		2010	$	1.129257	$	1.216774		658,045
		2009	$	0.872141	$	1.129257		617,199
		2008	$	1.402377	$	0.872141		737,976
		2007	$	1.201056	$	1.402377		1,904,266
		2006	$	1.099509	$	1.201056		1,788,393
		2005	$	1.075663	$	1.099509		1,757,514
		2004	$	1.000000	$	1.075663		566,998

114

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA WMC Diversified Equity - Service Class		2011	$	1.174542	$	1.075980		5,142
Subaccount Inception Date January 12, 2004		2010	$	1.020876	$	1.174542		1,831,991
		2009	$	0.808899	$	1.020876		1,247,228
		2008	$	1.458466	$	0.808899		1,376,764
		2007	$	1.285029	$	1.458466		2,273,632
		2006	$	1.098945	$	1.285029		2,083,649
		2005	$	1.038135	$	1.098945		776,214
		2004	$	1.000000	$	1.038135		326,218
TA WMC Diversified Growth - Service Class		2011	$	1.249768	$	1.185291		3,349,566
Subaccount Inception Date January 12, 2004		2010	$	1.077628	$	1.249768		2,634,770
		2009	$	0.846908	$	1.077628		3,207,310
		2008	$	1.593982	$	0.846908		3,508,848
		2007	$	1.391553	$	1.593982		4,986,942
		2006	$	1.300564	$	1.391553		4,668,529
		2005	$	1.132991	$	1.300564		2,107,846
		2004	$	1.000000	$	1.132991		1,309,387
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	1.005351		988,986
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 9, 2011		2011	$	0.000000	$	0.988614		3,349,511
TA AEGON Money Market - Service Class		2011	$	1.056646	$	1.043175		6,766,445
Subaccount Inception Date January 12, 2004		2010	$	1.070326	$	1.056646		8,064,539
		2009	$	1.084126	$	1.070326		13,164,034
		2008	$	1.075000	$	1.084126		23,668,884
		2007	$	1.039507	$	1.075000		8,460,721
		2006	$	1.007928	$	1.039507		3,306,453
		2005	$	0.994856	$	1.007928		2,316,834
		2004	$	1.000000	$	0.994856		1,604,429
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.893297	$	1.815630		2,579,348
Subaccount Inception Date May 1, 2004		2010	$	1.474729	$	1.893297		3,097,689
		2009	$	1.045417	$	1.474729		3,373,496
		2008	$	1.796565	$	1.045417		3,669,319
		2007	$	1.463168	$	1.796565		5,518,761
		2006	$	1.258018	$	1.463168		3,818,567
		2005	$	1.125134	$	1.258018		2,243,702
		2004	$	1.000000	$	1.125134		287,684
TA AEGON U.S. Government Securities - Service Class		2011	$	1.208125	$	1.279559		3,960,890
Subaccount Inception Date January 12, 2004		2010	$	1.174238	$	1.208125		14,626,780
		2009	$	1.141583	$	1.174238		10,579,416
		2008	$	1.076633	$	1.141583		11,470,969
		2007	$	1.031095	$	1.076633		594,485
		2006	$	1.013462	$	1.031095		911,468
		2005	$	1.006658	$	1.013462		766,510
		2004	$	1.000000	$	1.006658		344,681
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.078552	$	1.098537		131,667
Subaccount Inception Date November 19, 2009		2010	$	0.998480	$	1.078552		27,230
		2009	$	0.999965	$	0.998480		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.029338	$	1.031053		303,773
Subaccount Inception Date May 1, 2008		2010	$	0.942001	$	1.029338		312,236
		2009	$	0.818886	$	0.942001		361,443
		2008	$	1.000000	$	0.818886		310,818

115

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.980374	$	0.956851		724,896
Subaccount Inception Date May 1, 2008		2010	$	0.878829	$	0.980374		648,902
		2009	$	0.722717	$	0.878829		551,347
		2008	$	1.000000	$	0.722717		421,062
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.156985	$	1.097401		12,597
Subaccount Inception Date November 19, 2009		2010	$	1.024441	$	1.156985		2,277
		2009	$	0.999965	$	1.024441		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.564887	$	1.437974		2,378,800
Subaccount Inception Date January 12, 2004		2010	$	1.186730	$	1.564887		1,261,610
		2009	$	0.750786	$	1.186730		847,896
		2008	$	1.420047	$	0.750786		669,749
		2007	$	1.176887	$	1.420047		1,043,065
		2006	$	1.087808	$	1.176887		405,818
		2005	$	1.026824	$	1.087808		260,663
		2004	$	1.000000	$	1.026824		135,312
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.208125	$	1.279559		32,071,674
Subaccount Inception Date January 12, 2004		2010	$	1.174238	$	1.208125		24,656,520
		2009	$	1.141583	$	1.174238		41,410,009
		2008	$	1.076633	$	1.141583		62,862,336
		2007	$	1.031095	$	1.076633		2,244,597
		2006	$	1.013462	$	1.031095		30,086
		2005	$	1.006658	$	1.013462		46,321
		2004	$	1.000000	$	1.006658		2,844
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B(1)		2011	$	1.350083	$	1.289515		263,392
Subaccount Inception Date November 10, 2008		2010	$	1.242394	$	1.350083		211,579
		2009	$	1.013273	$	1.242394		232,383
		2008	$	1.000000	$	1.013273		77,336
Fidelity® VIP Index 500 Portfolio – Service Class 2		2011	$	1.149460	$	1.154978		495,098
Subaccount Inception Date January 12, 2004		2010	$	1.014915	$	1.149460		517,834
		2009	$	0.814015	$	1.014915		787,033
		2008	$	1.312266	$	0.814015		574,153
		2007	$	1.263927	$	1.312266		1,132,105
		2006	$	1.109095	$	1.263927		876,922
		2005	$	1.074523	$	1.109095		364,432
		2004	$	1.000000	$	1.074523		270,086
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.380025	$	1.337593		900,087
Subaccount Inception Date November 10, 2008		2010	$	1.269985	$	1.380025		908,676
		2009	$	0.990582	$	1.269985		701,176
		2008	$	1.000000	$	0.990582		7,896
ProFund VP Asia 30		2011	$	0.971613	$	0.700215		434,703
Subaccount Inception Date September 6, 2007		2010	$	0.864074	$	0.971613		904,453
		2009	$	0.567641	$	0.864074		1,169,932
		2008	$	1.169336	$	0.567641		476,431
		2007	$	1.000000	$	1.169336		491,315
ProFund VP Basic Materials		2011	$	1.094941	$	0.906325		665,327
Subaccount Inception Date September 6, 2007		2010	$	0.855207	$	1.094941		957,592
		2009	$	0.533535	$	0.855207		1,271,782
		2008	$	1.112700	$	0.533535		486,474
		2007	$	1.000000	$	1.112700		856,967

116

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Bull		2011	$	0.803967	$	0.793673		56,629
Subaccount Inception Date June 21, 2007		2010	$	0.723421	$	0.803967		1,082,323
		2009	$	0.589355	$	0.723421		2,306,402
		2008	$	0.957874	$	0.589355		3,992
		2007	$	1.000000	$	0.957874		22,732
ProFund VP Consumer Services		2011	$	0.959718	$	0.999522		128,516
Subaccount Inception Date September 6, 2007		2010	$	0.800882	$	0.959718		109,510
		2009	$	0.620240	$	0.800882		22,598
		2008	$	0.915722	$	0.620240		38,408
		2007	$	1.000000	$	0.915722		0
ProFund VP Emerging Markets		2011	$	0.982047	$	0.778440		758,018
Subaccount Inception Date September 6, 2007		2010	$	0.906276	$	0.982047		2,200,285
		2009	$	0.565446	$	0.906276		2,082,840
		2008	$	1.147797	$	0.565446		174,997
		2007	$	1.000000	$	1.147797		209,777
ProFund VP Europe 30		2011	$	0.753032	$	0677330		5,780
Subaccount Inception Date September 6, 2007		2010	$	0.743248	$	0.753032		48,786
		2009	$	0.569124	$	0.743248		68,744
		2008	$	1.029646	$	0.569124		27,149
		2007	$	1.000000	$	1.029646		695,548
ProFund VP Falling US Dollar		2011	$	0.972159	$	0.933567		58,584
Subaccount Inception Date September 6, 2007		2010	$	1.010960	$	0.972159		97,894
		2009	$	0.991242	$	1.010960		162,756
		2008	$	1.058302	$	0.991242		175,557
		2007	$	1.000000	$	1.058302		49,043
ProFund VP Financials		2011	$	0.524667	$	0.446291		251,133
Subaccount Inception Date September 6, 2007		2010	$	0.479116	$	0.524667		539,025
		2009	$	0.421999	$	0.479116		680,213
		2008	$	0.864405	$	0.421999		384,176
		2007	$	1.000000	$	0.864405		23,762
ProFund VP International		2011	$	0.726300	$	0.614177		187,397
Subaccount Inception Date September 6, 2007		2010	$	0.682484	$	0.726300		1,007,269
		2009	$	0.554657	$	0.682484		1,458,316
		2008	$	1.010646	$	0.554657		11,974
		2007	$	1.000000	$	1.010646		18,956
ProFund VP Japan		2011	$	0.535712	$	0.430798		246,533
Subaccount Inception Date September 6, 2007		2010	$	0.580609	$	0.535712		5,222
		2009	$	0.533087	$	0.580609		5,229
		2008	$	0.912928	$	0.533087		14,432
		2007	$	1.000000	$	0.912928		0
ProFund VP Mid-Cap		2011	$	0.953569	$	0.901971		104,042
Subaccount Inception Date September 6, 2007		2010	$	0.778698	$	0.953569		447,645
		2009	$	0.593652	$	0.778698		838,864
		2008	$	0.975794	$	0.593652		235,212
		2007	$	1.000000	$	0.975794		0
ProFund VP Money Market		2011	$	0.982051	$	0.969668		2,555,777
Subaccount Inception Date June 21, 2007		2010	$	0.994592	$	0.982051		2,053,291
		2009	$	1.007222	$	0.994592		3,690,152
		2008	$	1.011855	$	1.007222		4,565,949
		2007	$	1.000000	$	1.011855		1,966,107

117

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Oil & Gas		2011	$	0.900379	$	0.908815		907,061
Subaccount Inception Date September 6, 2007		2010	$	0.774516	$	0.900379		1,068,799
		2009	$	0.679293	$	0.774516		1,577,975
		2008	$	1.091443	$	0.679293		809,746
		2007	$	1.000000	$	1.091443		401,354
ProFund VP NASDAQ-100		2011	$	1.057580	$	1.059220		745,215
Subaccount Inception Date June 21, 2007		2010	$	0.906025	$	1.057580		527,456
		2009	$	0.603784	$	0.906025		367,261
		2008	$	1.063447	$	0.603784		114,283
		2007	$	1.000000	$	1.063447		66,698
ProFund VP Pharmaceuticals		2011	$	0.909374	$	1.042540		187,738
Subaccount Inception Date September 6, 2007		2010	$	0.916821	$	0.909374		46,857
		2009	$	0.794498	$	0.916821		59,774
		2008	$	0.999931	$	0.794498		82,400
		2007	$	1.000000	$	0.999931		0
ProFund VP Precious Metals		2011	$	1.411864	$	1.125963		951,434
Subaccount Inception Date September 6, 2007		2010	$	1.075912	$	1.411864		1,327,576
		2009	$	0.805369	$	1.075912		1,050,600
		2008	$	1.178332	$	0.805369		903,744
		2007	$	1.000000	$	1.178332		512,678
ProFund VP Short Emerging Markets		2011	$	0.438747	$	0.479308		93,315
Subaccount Inception Date September 6, 2007		2010	$	0.544809	$	0.438747		207,033
		2009	$	1.076147	$	0.544809		91,896
		2008	$	0.824467	$	1.076147		282,527
		2007	$	1.000000	$	0.824467		0
ProFund VP Short International		2011	$	0.777717	$	0.781602		18,512
Subaccount Inception Date September 6, 2007		2010	$	0923560	$	0.777717		21,085
		2009	$	1.341935	$	0.923560		52,916
		2008	$	0.983459	$	1.341935		147,625
		2007	$	1.000000	$	0.983459		0
ProFund VP Short NASDAQ-100		2011	$	0.648885	$	0.573465		128,730
Subaccount Inception Date September 6, 2007		2010	$	0.834016	$	0.648885		60,019
		2009	$	1.423786	$	0.834016		99,546
		2008	$	0.973485	$	1.423786		150,916
		2007	$	1.000000	$	0.973485		13,824
ProFund VP Short Small-Cap		2011	$	0.621493	$	0.557760		35,332
Subaccount Inception Date June 21, 2007		2010	$	0.886036	$	0.621493		16,394
		2009	$	1.327218	$	0.886036		26,879
		2008	$	1.083578	$	1.327218		105,204
		2007	$	1.000000	$	1.083578		30,149
ProFund VP Small-Cap		2011	$	0.886345	$	0.825509		42,053
Subaccount Inception Date June 21, 2007		2010	$	0.719496	$	0.886345		215,189
		2009	$	0.578142	$	0.719496		48,614
		2008	$	0.906677	$	0.578142		8,293
		2007	$	1.000000	$	0.906677		0
ProFund VP Small-Cap Value		2011	$	0.898332	$	0.850439		86,424
Subaccount Inception Date September 6, 2007		2010	$	0.745282	$	0.898332		46,407
		2009	$	0.627040	$	0.745282		208,202
		2008	$	0.916408	$	0.627040		222,563
		2007	$	1.000000	$	0.916408		0

118

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.30%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Telecommunications		2011	$	0.747477	$	0.751676		34,587
Subaccount Inception Date September 6, 2007		2010	$	0.654521	$	0.747477		22,817
		2009	$	0.617806	$	0.654521		33,296
		2008	$	0.954360	$	0.617806		18,117
		2007	$	1.000000	$	0.954360		2,474
ProFund VP UltraSmall-Cap		2011	$	0.600253	$	0.480963		166,972
Subaccount Inception Date September 6, 2007		2010	$	0.409624	$	0.600253		412,907
		2009	$	0.296014	$	0.409624		150,889
		2008	$	0.886857	$	0.296014		16,508
		2007	$	1.000000	$	0.886857		0
ProFund VP U.S. Government Plus		2011	$	1.156841	$	1.639032		316,272
Subaccount Inception Date September 6, 2007		2010	$	1.064222	$	1.156841		269,975
		2009	$	1.599956	$	1.064222		337,636
		2008	$	1.082268	$	1.599956		565,710
		2007	$	1.000000	$	1.082268		217,734
ProFund VP Utilities		2011	$	0.840671	$	0.975202		405,164
Subaccount Inception Date September 6, 2007		2010	$	0.803768	$	0.840671		283,537
		2009	$	0.735283	$	0.803768		877,599
		2008	$	1.074825	$	0.735283		348,603
		2007	$	1.000000	$	1.074825		759,474
Access VP High Yield FundSM		2011	$	1.286746	$	1.305131		237,481
Subaccount Inception Date September 6, 2007		2010	$	1.120067	$	1.286746		423,567
		2009	$	0.970485	$	1.120067		636,396
		2008	$	1.031031	$	0.970485		473,462
		2007	$	1.000000	$	1.031031		2,972
			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Conservative - Service Class		2011	$	1.273329	$	1.287289		12,285,752
Subaccount Inception Date January 12, 2004		2010	$	1.185987	$	1.273329		14,337,557
		2009	$	0.961384	$	1.185987		15,502,489
		2008	$	1.238522	$	0.961384		14,037,704
		2007	$	1.181464	$	1.238522		14,733,665
		2006	$	1.095988	$	1.181464		14,430,621
		2005	$	1.056719	$	1.095988		12,235,089
		2004	$	1.000000	$	1.056719		7,503,001
TA Asset Allocation - Growth - Service Class		2011	$	1.264654	$	1.177930		11,696,908
Subaccount Inception Date January 12, 2004		2010	$	1.116857	$	1.264654		15,181,274
		2009	$	0.872926	$	1.116857		15,927,880
		2008	$	1.467189	$	0.872926		17,511,200
		2007	$	1.381527	$	1.467189		26,847,935
		2006	$	1.213363	$	1.381527		25,275,163
		2005	$	1.097614	$	1.213363		20,537,855
		2004	$	1.000000	$	1.097614		10,035,215

119

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Asset Allocation - Moderate - Service Class		2011	$	1.313064	$	1.300675		25,710,804
Subaccount Inception Date January 12, 2004		2010	$	1.207111	$	1.313064		30,569,400
		2009	$	0.968489	$	1.207111		33,189,185
		2008	$	1.328693	$	0.968489		31,000,297
		2007	$	1.248802	$	1.328693		44,798,869
		2006	$	1.136894	$	1.248802		44,855,307
		2005	$	1.074467	$	1.136894		38,446,637
		2004	$	1.000000	$	1.074467		22,424,620
TA Asset Allocation - Moderate Growth - Service Class		2011	$	1.310122	$	1.264525		48,152,656
Subaccount Inception Date January 12, 2004		2010	$	1.180114	$	1.310122		57,562,132
		2009	$	0.934434	$	1.180114		61,642,497
		2008	$	1.410558	$	0.934434		55,363,989
		2007	$	1.327918	$	1.410558		74,341,269
		2006	$	1.184151	$	1.327918		66,333,637
		2005	$	1.092831	$	1.184151		45,633,076
		2004	$	1.000000	$	1.092831		18,940,718
TA International Moderate Growth - Service Class		2011	$	0.967652	$	0.883713		5,183,058
Subaccount Inception Date May 1, 2006		2010	$	0.888717	$	0.967652		6,082,627
		2009	$	0.695766	$	0.888717		6,096,936
		2008	$	1.106246	$	0.695766		5,478,470
		2007	$	1.032458	$	1.106246		3,391,652
		2006	$	1.000000	$	1.032458		1,315,507
TA BlackRock Large Cap Value - Service Class		2011	$	1.240502	$	1.255325		2,553,954
Subaccount Inception Date January 12, 2004		2010	$	1.140256	$	1.240502		2,614,543
		2009	$	1.015281	$	1.140256		1,791,254
		2008	$	1.559110	$	1.015281		1,200,379
		2007	$	1.512915	$	1.559110		1,811,798
		2006	$	1.313474	$	1.512915		2,342,337
		2005	$	1.149081	$	1.313474		1,053,249
		2004	$	1.000000	$	1.149081		180,932
TA Clarion Global Real Estate Securities - Service Class		2011	$	1.614717	$	1.498986		974,947
Subaccount Inception Date January 12, 2004		2010	$	1.417950	$	1.614717		1,216,468
		2009	$	1.079416	$	1.417950		1,350,507
		2008	$	1.900683	$	1.079416		1,418,373
		2007	$	2.067380	$	1.900683		2,679,802
		2006	$	1.474943	$	2.067380		3,805,594
		2005	$	1.319407	$	1.474943		2,790,656
		2004	$	1.000000	$	1.319407		1,226,832
TA JPMorgan Tactical Allocation - Service Class		2011	$	1.029388	$	1.051731		1,711,382
Subaccount Inception Date January 12, 2004		2010	$	1.046616	$	1.029388		1,705,440
		2009	$	1.019485	$	1.046616		2,148,782
		2008	$	1.082598	$	1.019485		2,270,517
		2007	$	1.038970	$	1.082598		3,722,063
		2006	$	1.090700	$	1.103897		4,817,706
		2005	$	1.054486	$	1.090700		5,230,056
		2004	$	1.000000	$	1.054486		2,845,832
TA Janus Balanced - Service Class		2011	$	1.004166	$	0.884565		472,186
Subaccount Inception Date November 19, 2009		2010	$	0.986128	$	1.004166		398,239
		2009	$	0.986582	$	0.986128		150,599
TA Hanlon Balanced - Service Class		2011	$	0.973440	$	0.928682		59,974
Subaccount Inception Date November 19, 2009		2010	$	1.020966	$	0.973440		71,396
		2009	$	0.998169	$	1.020966		45,886

120

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Hanlon Growth - Service Class		2011	$	1.001907	$	0.874623		323,711
Subaccount Inception Date November 19, 2009		2010	$	1.021637	$	1.001907		332,226
		2009	$	0.996407	$	1.021637		199,805
TA Hanlon Growth and Income - Service Class		2011	$	0.988719	$	0.903681		223,822
Subaccount Inception Date November 19, 2009		2010	$	1.022718	$	0.988719		214,130
		2009	$	0.997275	$	1.022718		47,837
TA Hanlon Income - Service Class		2011	$	0.992741	$	1.009231		1,682,508
Subaccount Inception Date November 19, 2009		2010	$	0.999966	$	0.992741		1,885,538
		2009	$	0.988719	$	1.003976		868,893
TA JPMorgan Core Bond - Service Class		2011	$	1.328057	$	1.406679		1,849,625
Subaccount Inception Date January 12, 2004		2010	$	1.245121	$	1.328057		1,469,967
		2009	$	1.152552	$	1.245121		2,539,400
		2008	$	1.108765	$	1.152552		1,864,431
		2007	$	1.053040	$	1.108765		960,657
		2006	$	1.028816	$	1.053043		1,134,018
		2005	$	1.020550	$	1.028816		790,305
		2004	$	1.000000	$	1.020550		578,796
TA JPMorgan Enhanced Index - Service Class		2011	$	1.148696	$	1.139915		671,682
Subaccount Inception Date January 12, 2004		2010	$	1.012639	$	1.148696		651,573
		2009	$	0.792868	$	1.012639		666,162
		2008	$	1.284944	$	0.792868		571,446
		2007	$	1.247416	$	1.284944		1,167,784
		2006	$	1.098576	$	1.247416		796,705
		2005	$	1.077814	$	1.098576		1,054,002
		2004	$	1.000000	$	1.077814		1,591,931
TA Morgan Stanley Capital Growth - Service Class		2011	$	1.220767	$	1.133526		666,117
Subaccount Inception Date January 12, 2004		2010	$	0.972590	$	1.220767		735,092
		2009	$	0.771946	$	0.972590		586,987
		2008	$	1.231692	$	0.771946		674,328
		2007	$	1.237717	$	1.231692		1,178,963
		2006	$	1.059368	$	1.237717		1,211,730
		2005	$	1.033259	$	1.059368		1,239,124
		2004	$	1.000000	$	1.033259		1,141,234
TA Morgan Stanley Growth Opportunities - Service Class		2011	$	1.715248	$	1.537904		0
Subaccount Inception Date		2010	$	1.283725	$	1.715248		1,167,241
		2009	$	0.952072	$	1.283725		924,593
		2008	$	1.635742	$	0.952072		869,552
		2007	$	1.349470	$	1.635742		1,161,648
		2006	$	1.302497	$	1.349470		1,128,273
		2005	$	1.137520	$	1.302497		898,940
		2004	$	1.000000	$	1.137520		590,910
TA AEGON High Yield Bond - Service Class		2011	$	1.385541	$	1.430544		1,750,932
Subaccount Inception Date January 12, 2004		2010	$	1.250662	$	1.385541		2,371,251
		2009	$	0.862263	$	1.250662		2,394,617
		2008	$	1.171341	$	0.862263		302,315
		2007	$	1.165918	$	1.171341		494,975
		2006	$	1.067163	$	1.165918		1,546,606
		2005	$	1.064471	$	1.067163		285,552
		2004	$	1.000000	$	1.064471		280,788

121

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA MFS International Equity - Service Class		2011	$	0.912098	$	0.808799		394,834
Subaccount Inception Date May 1, 2007		2010	$	0.837217	$	0.912098		559,169
		2009	$	0.641028	$	0.837217		678,811
		2008	$	1.006958	$	0.641028		529,812
		2007	$	1.000000	$	1.006958		583,903
TA Jennison Growth - Service Class		2011	$	1.051746	$	1.030779		842,570
Subaccount Inception Date April 29, 2010		2010	$	1.000000	$	1.051746		525,851
TA PIMCO Total Return - Service Class		2011	$	1.309459	$	1.370261		3,671,385
Subaccount Inception Date January 12, 2004		2010	$	1.239836	$	1.309459		4,579,432
		2009	$	1.084505	$	1.239836		4,443,066
		2008	$	1.132924	$	1.084505		1,948,494
		2007	$	1.054338	$	1.132924		1,535,592
		2006	$	1.027433	$	1.054338		1,379,971
		2005	$	1.019517	$	1.027433		1,409,730
		2004	$	1.000000	$	1.019517		647,922
TA T. Rowe Price Small Cap - Service Class		2011	$	1.430843	$	1.434603		554,126
Subaccount Inception Date January 12, 2004		2010	$	1.080651	$	1.430843		1,094,480
		2009	$	0.790971	$	1.080651		872,475
		2008	$	1.259355	$	0.790971		790,910
		2007	$	1.166953	$	1.259355		831,582
		2006	$	1.143320	$	1.166953		1,396,740
		2005	$	1.048551	$	1.143320		2,664,103
		2004	$	1.000000	$	1.048551		424,410
TA Third Avenue Value - Service Class		2011	$	1.380269	$	1.165668		2,159,936
Subaccount Inception Date January 12, 2004		2010	$	1.213484	$	1.380269		2,525,214
		2009	$	0.913369	$	1.213484		3,043,854
		2008	$	1.575116	$	0.913369		3,077,286
		2007	$	1.580003	$	1.575116		5,437,812
		2006	$	1.381608	$	1.580003		5,901,527
		2005	$	1.180749	$	1.381608		4,569,962
		2004	$	1.000000	$	1.180749		2,201,142
TA Efficient Markets - Service Class		2011	$	1.340039	$	1.294521		270,318
Subaccount Inception Date November 10, 2008		2010	$	1.207359	$	1.340039		272,402
		2009	$	1.037196	$	1.207359		175,912
		2008	$	1.000000	$	1.037196		197,061
TA Multi-Managed Balanced - Service Class		2011	$	1.401893	$	1.436567		1,651,397
Subaccount Inception Date January 12, 2004		2010	$	1.145766	$	1.401893		1,523,341
		2009	$	0.921155	$	1.145766		978,220
		2008	$	1.383300	$	0.921155		725,686
		2007	$	1.235435	$	1.383300		775,121
		2006	$	1.150301	$	1.235435		643,570
		2005	$	1.080469	$	1.150301		441,236
		2004	$	1.000000	$	1.080469		426,075
TA AllianceBernstein Dynamic Allocation - Service Class		2011	$	1.220941	$	1.225976		349,720
Subaccount Inception Date January 12, 2004		2010	$	1.132561	$	1.220941		545,165
		2009	$	0.874260	$	1.132561		419,572
		2008	$	1.405090	$	0.874260		288,654
		2007	$	1.202787	$	1.405090		530,552
		2006	$	1.100560	$	1.202787		530,249
		2005	$	1.076169	$	1.100560		505,776
		2004	$	1.000000	$	1.076169		213,495

122

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA WMC Diversified Equity - Service Class		2011	$	1.178571	$	1.080206		0
Subaccount Inception Date January 12, 2004		2010	$	1.023878	$	1.178571		1,373,007
		2009	$	0.810875	$	1.023878		1,174,903
		2008	$	1.461312	$	0.810875		1,246,780
		2007	$	1.286892	$	1.461312		1,924,779
		2006	$	1.100008	$	1.286892		1,917,576
		2005	$	1.038628	$	1.100008		968,060
		2004	$	1.000000	$	1.038628		986,140
TA WMC Diversified Growth - Service Class		2011	$	1.254035	$	1.189919		2,808,295
Subaccount Inception Date January 12, 2004		2010	$	1.080773	$	1.254035		2,590,586
		2009	$	0.848962	$	1.080773		2,979,820
		2008	$	1.597073	$	0.848962		2,886,962
		2007	$	1.393568	$	1.597073		4,966,750
		2006	$	1.301820	$	1.393568		5,004,670
		2005	$	1.133532	$	1.301820		3,094,460
		2004	$	1.000000	$	1.133532		2,090,656
TA AEGON Tactical Vanguard ETF - Conservative - Service Class
Subaccout Inception Date December 9, 2011		2011	$	0.000000	$	1.005379		70,841
TA AEGON Tactical Vanguard ETF - Growth - Service Class
Subaccount Inception Date December 12, 2011		2011	$	0.000000	$	0.988642		817,314
TA AEGON Money Market - Service Class		2011	$	1.060336	$	1.047274		5,341,317
Subaccount Inception Date January 12, 2004		2010	$	1.086807	$	1.060336		5,559,088
		2009	$	1.077129	$	1.073504		7,115,831
		2008	$	1.060336	$	1.086807		12,819,367
		2007	$	1.041050	$	1.077129		3,860,358
		2006	$	1.008922	$	1.041050		2,299,227
		2005	$	0.995342	$	1.008922		3,530,333
		2004	$	1.000000	$	0.995342		3,399,298
TA Systematic Small Mid Cap Value - Service Class		2011	$	1.899527	$	1.822494		1,506,730
Subaccount Inception Date May 1, 2004		2010	$	1.478853	$	1.899527		1,852,836
		2009	$	1.047827	$	1.478853		1,964,794
		2008	$	1.799817	$	1.047827		1,674,005
		2007	$	1.465093	$	1.799817		2,852,907
		2006	$	1.259050	$	1.465093		1,606,608
		2005	$	1.125499	$	1.259050		1,612,485
		2004	$	1.000000	$	1.125499		280,786
TA AEGON U.S. Government Securities - Service Class		2011	$	1.212326	$	1.284635		1,523,426
Subaccount Inception Date January 12, 2004		2010	$	1.177734	$	1.212326		2,025,780
		2009	$	1.144422	$	1.177734		3,275,827
		2008	$	1.078770	$	1.144422		3,687,242
		2007	$	1.032619	$	1.078770		574,423
		2006	$	1.014459	$	1.032619		385,218
		2005	$	1.007147	$	1.014459		384,076
		2004	$	1.000000	$	1.007147		525,455
TA Vanguard ETF Index - Conservative - Service Class		2011	$	1.079160	$	1.099705		0
Subaccount Inception Date November 19, 2009		2010	$	0.998540	$	1.079160		0
		2009	$	0.999966	$	0.998540		0
TA Vanguard ETF Index - Balanced - Service Class		2011	$	1.030714	$	1.032943		56,618
Subaccount Inception Date May 1, 2008		2010	$	0.942791	$	1.030714		87,451
		2009	$	0.819159	$	0.942791		99,721
		2008	$	1.000000	$	0.819159		2,879

123

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
TA Vanguard ETF Index - Growth - Service Class		2011	$	0.981646	$	0.958559		937,445
Subaccount Inception Date May 1, 2008		2010	$	0.879543	$	0.981646		989,659
		2009	$	0.722951	$	0.879543		744,138
		2008	$	1.000000	$	0.722951		571,628
TA Vanguard ETF Index - Aggressive Growth - Service Class		2011	$	1.157637	$	1.098560		5,179
Subaccount Inception Date November 19, 2009		2010	$	1.024505	$	1.157637		0
		2009	$	0.999966	$	1.024505		0
TA Morgan Stanley Mid Cap Growth - Service Class		2011	$	1.570290	$	1.443654		1,772,609
Subaccount Inception Date January 12, 2004		2010	$	1.190239	$	1.570290		1,187,442
		2009	$	0.752635	$	1.190239		1,002,759
		2008	$	1.422831	$	0.752635		932,011
		2007	$	1.178603	$	1.422831		1,235,573
		2006	$	1.088865	$	1.178603		1,142,007
		2005	$	1.027325	$	1.088865		914,108
		2004	$	1.000000	$	1.027325		846,034
PAM TA AEGON U.S. Government Securities - Service Class		2011	$	1.212326	$	1.284635		18,293,268
Subaccount Inception Date January 12, 2004		2010	$	1.177734	$	1.212326		11,370,248
		2009	$	1.144422	$	1.177734		22,528,930
		2008	$	1.078770	$	1.144422		39,589,434
		2007	$	1.032619	$	1.078770		1,112,969
		2006	$	1.014459	$	1.032619		28,050
		2005	$	1.007147	$	1.014459		10,986
		2004	$	1.000000	$	1.007147		0
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B<>(1)		2011	$	1.351492	$	1.291502		192,926
Subaccount Inception Date November 10, 2008		2010	$	1.243091	$	1.351492		204,158
		2009	$	1.013344	$	1.243091		244,935
		2008	$	1.000000	$	1.013344		0
Fidelity® VIP Index 500 Portfolio – Service Class 2		2011	$	1.153421	$	1.159538		1,705,668
Subaccount Inception Date January 12, 2004		2010	$	1.071906	$	1.153421		2,008,075
		2009	$	0.816018	$	1.017906		1,965,013
		2008	$	1.314839	$	0.816018		1,464,748
		2007	$	1.265780	$	1.314839		1,171,464
		2006	$	1.110169	$	1.265780		773,524
		2005	$	1.075035	$	1.110169		702,915
		2004	$	1.000000	$	1.075035		382,634
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4(2)		2011	$	1.381473	$	1.339660		367,387
Subaccount Inception Date November 10, 2008		2010	$	1.270689	$	1.381473		397,173
		2009	$	0.990648	$	1.270689		382,637
		2008	$	1.000000	$	0.990648		208,139
ProFund VP Asia 30		2011	$	0.973197	$	0.701708		322,804
Subaccount Inception Date September 6, 2007		2010	$	0.865066	$	0.973197		524,218
		2009	$	0.568013	$	0.865066		1,049,044
		2008	$	1.169526	$	0.568013		212,811
		2007	$	1.000000	$	1.169526		288,851
ProFund VP Basic Materials		2011	$	1.096729	$	0.908253		335,270
Subaccount Inception Date September 6, 2007		2010	$	0.856179	$	1.096729		499,955
		2009	$	0.533888	$	0.856179		857,842
		2008	$	1.112879	$	0.533888		382,888
		2007	$	1.000000	$	1.112879		842,640

124

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Bull		2011	$	0.805386	$	0.795470		287,200
Subaccount Inception Date June 21, 2007		2010	$	0.724345	$	0.805386		1,153,911
		2009	$	0.589809	$	0.724345		2,125,316
		2008	$	0.958122	$	0.589809		211,856
		2007	$	1.000000	$	0.958122		138,272
ProFund VP Consumer Services		2011	$	0.961312	$	1.001669		74,783
Subaccount Inception Date September 6, 2007		2010	$	0.801823	$	0.961312		97,926
		2009	$	0.620653	$	0.801823		7,840
		2008	$	0.915866	$	0.620653		756
		2007	$	1.000000	$	0.915866		0
ProFund VP Emerging Markets		2011	$	0.983661	$	0.780111		549,159
Subaccount Inception Date September 6, 2007		2010	$	0.907315	$	0.983661		1,978,622
		2009	$	0.565820	$	0.907315		1,537,458
		2008	$	1.147982	$	0.565820		239,872
		2007	$	1.000000	$	1.147982		91,400
ProFund VP Europe 30		2011	$	0.754274	$	0.678785		8,020
Subaccount Inception Date September 6, 2007		2010	$	0.744107	$	0.754274		15,590
		2009	$	0.569495	$	0.744107		97,662
		2008	$	1.029815	$	0.569495		10,721
		2007	$	1.000000	$	1.029815		1,187,307
ProFund VP Falling US Dollar		2011	$	0.973759	$	0.935558		91,820
Subaccount Inception Date September 6, 2007		2010	$	1.012123	$	0.973759		88,464
		2009	$	0.991895	$	1.012123		116,465
		2008	$	1.058469	$	0.991895		62,681
		2007	$	1.000000	$	1.058469		18,740
ProFund VP Financials		2011	$	0.525537	$	0.447260		181,411
Subaccount Inception Date September 6, 2007		2010	$	0.479671	$	0.525537		167,793
		2009	$	0.422279	$	0.479671		303,789
		2008	$	0.864541	$	0.422279		344,881
		2007	$	1.000000	$	0.864541		2,573
ProFund VP International		2011	$	0.727485	$	0.615484		259,691
Subaccount Inception Date September 6, 2007		2010	$	0.683262	$	0.727485		1,064,335
		2009	$	0.555013	$	0.683262		1,321,653
		2008	$	1.010814	$	0.555013		102,857
		2007	$	1.000000	$	1.010814		65,581
ProFund VP Japan		2011	$	0.536602	$	0.431731		161,124
Subaccount Inception Date September 6, 2007		2010	$	0.581286	$	0.536602		379,393
		2009	$	0.533450	$	0.581286		683,516
		2008	$	0.913075	$	0.533450		4,825
		2007	$	1.000000	$	0.913075		45,859
ProFund VP Mid-Cap		2011	$	0.955120	$	0.903887		386,421
Subaccount Inception Date September 6, 2007		2010	$	0.779583	$	0.955120		154,247
		2009	$	0.594038	$	0.779583		457,573
		2008	$	0.975945	$	0.594038		179,947
		2007	$	1.000000	$	0.975945		0
ProFund VP Money Market		2011	$	0.983747	$	0.971777		1,485,073
Subaccount Inception Date June 21, 2007		2010	$	0.995824	$	0.983747		2,016,957
		2009	$	1.007962	$	0.995824		3,643,672
		2008	$	1.012111	$	1.007962		9,062,041
		2007	$	1.000000	$	1.012111		7,426,750

125

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Oil & Gas		2011	$	0.901861	$	0.910747		573,061
Subaccount Inception Date September 6, 2007		2010	$	0.775399	$	0.901861		1,257,252
		2009	$	0.679741	$	0.775399		1,176,034
		2008	$	1.091613	$	0.679741		926,455
		2007	$	1.000000	$	1.091613		307,483
ProFund VP NASDAQ-100		2011	$	1.059422	$	1.061595		406,280
Subaccount Inception Date June 21, 2007		2010	$	0.907150	$	1.059422		64,147
		2009	$	0.604236	$	0.907150		39,919
		2008	$	1.063719	$	0.604236		311,304
		2007	$	1.000000	$	1.063719		51,137
ProFund VP Pharmaceuticals		2011	$	0.910845	$	1.044740		81,873
Subaccount Inception Date September 6, 2007		2010	$	0.917860	$	0.910845		11,878
		2009	$	0.795015	$	0.917860		35,954
		2008	$	1.000086	$	0.795015		104,014
		2007	$	1.000000	$	1.000086		0
ProFund VP Precious Metals		2011	$	1.414152	$	1.128344		565,890
Subaccount Inception Date September 6, 2007		2010	$	1.077132	$	1.414152		687,242
		2009	$	0.805899	$	1.077132		623,819
		2008	$	1.178522	$	0.805899		481,357
		2007	$	1.000000	$	1.178522		54,506
ProFund VP Short Emerging Markets		2011	$	0.439474	$	0.480343		42,942.139
Subaccount Inception Date September 6, 2007		2010	$	0.545435	$	0.439474		60,543
		2009	$	1.076853	$	0.545435		57,774
		2008	$	0.824593	$	1.076853		91,631
		2007	$	1.000000	$	0.824593		0
ProFund VP Short International		2011	$	0.778993	$	0.783257		17,340
Subaccount Inception Date September 6, 2007		2010	$	0.924617	$	0.778993		27,122
		2009	$	1.342812	$	0.924617		48,016
		2008	$	0.983612	$	1.342812		151,606
		2007	$	1.000000	$	0.983612		16,120
ProFund VP Short NASDAQ-100		2011	$	0.649954	$	0.574699		41,118
Subaccount Inception Date September 6, 2007		2010	$	0.834974	$	0.649954		40,907
		2009	$	1.424720	$	0.834974		40,870
		2008	$	0.973637	$	1.424720		127,728
		2007	$	1.000000	$	0.973637		14,232
ProFund VP Short Small-Cap		2011	$	0.622574	$	0.559005		34,475
Subaccount Inception Date June 21, 2007		2010	$	0.877140	$	0.622574		39,548
		2009	$	1.328218	$	0.887140		29,070
		2008	$	1.083859	$	1.328218		45,742
		2007	$	1.000000	$	1.083859		13,154
ProFund VP Small-Cap		2011	$	0.887899	$	0.827356		163,979
Subaccount Inception Date June 21, 2007		2010	$	0.720411	$	0.887899		98,804
		2009	$	0.578583	$	0.720411		46,922
		2008	$	0.906913	$	0.578583		5,946
		2007	$	1.000000	$	0.906913		8,258
ProFund VP Small-Cap Value		2011	$	0.899795	$	0.852241		199,763
Subaccount Inception Date September 6, 2007		2010	$	0.746137	$	0.899795		4,933
		2009	$	0.627447	$	0.746137		123,972
		2008	$	0.916559	$	0.627447		192,472
		2007	$	1.000000	$	0.916559		20,893

126

CONDENSED FINANCIAL INFORMATION—(Continued)

			Separate Account Expense 1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
ProFund VP Telecommunications		2011	$	0.748692	$	0.753277		0
Subaccount Inception Date September 6, 2007		2010	$	0.655268	$	0.748692		0
		2009	$	0.618208	$	0.655268		0
		2008	$	0.954517	$	0.618208		1,170
		2007	$	1.000000	$	0.954517		1,170
ProFund VP UltraSmall-Cap		2011	$	0.601225	$	0.481978		533,798
Subaccount Inception Date September 6, 2007		2010	$	0.410092	$	0.601225		523,490
		2009	$	0.296207	$	0.410092		86,391
		2008	$	0.887004	$	0.296207		51,388
		2007	$	1.000000	$	0.887004		0
ProFund VP U.S. Government Plus		2011	$	1.158751	$	1.642527		152,475
Subaccount Inception Date September 6, 2007		2010	$	1.065458	$	1.158751		270,648
		2009	$	1.601015	$	1.065458		217,807
		2008	$	1.082444	$	1.601015		408,948
		2007	$	1.000000	$	1.082444		595,500
ProFund VP Utilities		2011	$	0.842042	$	0.977292		274,258
Subaccount Inception Date September 6, 2007		2010	$	0.804692	$	0.842042		540,184
		2009	$	0.735767	$	0.804692		532,225
		2008	$	1.074995	$	0.735767		430,863
		2007	$	1.000000	$	1.074995		1,362,559
Access VP High Yield FundSM		2011	$	1.288829	$	1.307897		405,894
Subaccount Inception Date September 6, 2007		2010	$	1.121335	$	1.288829		441,633
		2009	$	0.971112	$	1.121335		2,014,855
		2008	$	1.031187	$	0.971112		2,581,435
		2007	$	1.000000	$	1.031187		0

⁽¹⁾  The beginning and ending AUV for this fund also reflects a 0.20% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.

⁽²⁾  The beginning and ending AUV for this fund also reflects a 0.15% Fund Facilitation Fee which is in addition to the Separate Account Expense percentage listed above.

127

FINANCIAL STATEMENTS AND

SCHEDULES – STATUTORY BASIS

Western Reserve Life Assurance Co. of Ohio

Years Ended December 31, 2011, 2010 and 2009

Western Reserve Life Assurance Co. of Ohio

Financial Statements and Schedules – Statutory Basis

Years Ended December 31, 2011, 2010 and 2009

Contents

Report of Independent Registered Public Accounting Firm	1
Audited Financial Statements
Balance Sheets – Statutory Basis	3
Statements of Operations – Statutory Basis	5
Statements of Changes in Capital and Surplus – Statutory Basis	6
Statements of Cash Flow – Statutory Basis	8
Notes to Financial Statements – Statutory Basis	10
Statutory-Basis Financial Statement Schedules
Summary of Investments – Other Than Investments in Related Parties	71
Supplementary Insurance Information	72
Reinsurance	73

Report of Independent Registered Public Accounting Firm

The Board of Directors

Western Reserve Life Assurance Co. of Ohio

We have audited the accompanying statutory-basis balance sheets of Western Reserve Life Assurance Co. of Ohio (the Company) as of December 31, 2011 and 2010, and the related statutory-basis statements of operations, changes in capital and surplus, and cash flow for each of the three years in the period ended December 31, 2011. Our audits also included the statutory-basis financial statement schedules required by Regulation S-X, Article 7. These financial statements and schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.

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

As described in Note 1 to the financial statements, the Company presents its financial statements in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles also are described in Note 1. The effects on the financial statements of these variances are not reasonably determinable but are presumed to be material.

In our opinion, because of the effects of the matter described in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of Western Reserve Life Assurance Co. of Ohio at December 31, 2011 and 2010, or the results of its operations or its cash flow for each of the three years in the period ended December 31, 2011.

A member firm of Ernst & Young Global Limited

1

However, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Western Reserve Life Assurance Co. of Ohio at December 31, 2011 and 2010, and the results of its operations and its cash flow for each of the three years in the period ended December 31, 2011, in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic statutory-basis financial statements taken as a whole, present fairly in all material respects the information set forth therein.

As discussed in Note 1 to the financial statements, in 2010 and 2009 in response to new accounting standards, the Company changed its method of accounting for collateral received related to certain financial transactions, deferred income taxes, and investments in loan-backed and structured securities.

April 3, 2012

2

Western Reserve Life Assurance Co. of Ohio

Balance Sheets – Statutory Basis

(Dollars in Thousands, Except per Share Amounts)

	December 31
	2011		2010
Admitted assets
Cash and invested assets:
Bonds	$	888,551	$	941,187
Common stocks of affiliated entities (cost: 2011 - $22,494 and 2010 - $22,017)		30,479		33,238
Mortgage loans on real estate		49,646		12,416
Home office properties		36,015		37,041
Cash, cash equivalents and short-term investments		170,354		242,139
Policy loans		406,037		391,511
Securities lending reinvested collateral assets		89,624		193,926
Receivable for securities		5,216		—
Other invested assets		3,474		4,120
Total cash and invested assets		1,679,396		1,855,578
Net deferred income tax asset		124,543		121,704
Premiums deferred and uncollected		3,061		3,243
Reinsurance receivable		1,851		5,170
Federal income tax recoverable		1,339		—
Receivable from parent, subsidiaries and affiliates		2,067		12,834
Investment income due and accrued		11,823		12,120
Cash surrender value of life insurance policies		73,446		71,167
Other admitted assets		7,533		14,405
Separate account assets		6,518,084		7,401,665
Total admitted assets	$	8,423,143	$	9,497,886

3

	December 31
	2011			2010
Liabilities and capital and surplus
Liabilities:
Aggregate reserves for policies and contracts:
Life	$	1,206,449		$	1,139,909
Annuity		540,352			521,268
Accident and health		518			560
Life policy and contract claim reserves		29,314			18,577
Liability for deposit-type contracts		13,018			15,179
Other policyholders’ funds		39			55
Interest maintenance reserve		26,504			27,070
Remittances and items not allocated		4,760			2,947
Federal income taxes payable		—			77,810
Transfers from separate accounts due or accrued		(378,460	)		(490,533	)
Asset valuation reserve		8,838			9,217
Reinsurance in unauthorized companies		265			161
Funds held under coinsurance and other reinsurance treaties		33,629			15,224
Payable to parent, subsidiaries and affiliates		26,732			19,957
Unearned investment income		9,858			9,800
Payable for securities lending		89,624			193,926
Other liabilities		18,421			23,830
Separate account liabilities		6,518,084			7,401,665
Total liabilities		8,147,945			8,986,622
Capital and surplus:
Common stock, $1.00 par value, 3,000,000 shares authorized and 2,500,000 shares issued and outstanding		2,500			2,500
Aggregate write-ins for other than special surplus funds		67,503			70,527
Paid-in surplus		149,627			149,627
Unassigned surplus		55,568			288,610
Total capital and surplus		275,198			511,264
Total liabilities and capital and surplus	$	8,423,143		$	9,497,886

See accompanying notes.

4

Western Reserve Life Assurance Co. of Ohio

Statements of Operations – Statutory Basis

(Dollars in Thousands, Except per Share Amounts)

	Year Ended December 31
	2011			2010			2009
Revenues:
Premiums and other considerations, net of reinsurance:
Life	$	456,926		$	484,508		$	503,548
Annuity		22,244			40,279			151,428
Accident and health		1,429			1,222			1,275
Net investment income		80,031			64,487			48,371
Amortization of interest maintenance reserve		1,326			669			(83	)
Commissions and expense allowances on reinsurance ceded		(41,716	)		108,259			43,776
Reserve adjustments on reinsurance ceded		(31,044	)		(33,461	)		(43,546	)
Income from fees associated with investment management, administration and contract guarantees for separate accounts		312,161			319,607			342,329
Income earned on company owned life insurance		2,279			2,368			2,474
Income from administrative service agreement with affiliate		24,411			23,672			21,446
Other		(6,671	)		(7,130	)		5,754
		821,376			1,004,480			1,076,772
Benefits and expenses:
Benefits paid or provided for:
Life		64,792			84,881			82,897
Surrender benefits		614,466			708,030			696,517
Annuity benefits		25,824			25,525			28,748
Other benefits		3,367			2,755			2,487
Increase (decrease) in aggregate reserves for policies and contracts:
Life		66,540			31,958			(5,665	)
Annuity		19,085			(87,376	)		(13,141	)
Accident and health		(42	)		(251	)		772
		794,032			765,522			792,615
Insurance expenses:
Commissions		138,136			124,707			122,960
General insurance expenses		84,132			93,770			98,958
Taxes, licenses and fees		14,478			18,467			18,938
Net transfers from separate accounts		(258,667	)		(247,798	)		(137,966	)
Consideration on reinsurance recapture		29,300			—			—
Other expenses		10,077			12,725			571
		17,456			1,871			103,461
Total benefits and expenses		811,488			767,393			896,076
Gain from operations before dividends to policyholders, federal income tax expense and net realized capital losses on investments		9,888			237,087			180,696
Dividends to policyholders		24			25			26
Gain from operations before federal income tax expense and net realized capital losses on investments		9,864			237,062			180,670
Federal income tax expense		9,379			104,800			40,751
Gain from operations before net realized capital losses on investments		485			132,262			139,919
Net realized capital loss on investments (net of related federal income taxes and amounts tranferred to/from interest maintenance reserve)		(12,431	)		(9,123	)		(24,264	)
Net income (loss)	$	(11,946	)	$	123,139		$	115,655

See accompanying notes.

5

Western Reserve Life Assurance Co. of Ohio

Statements of Changes in Capital and Surplus – Statutory Basis

(Dollars in Thousands)

	Common Stock		Aggregate Write-ins for Other than Special Surplus Funds			Paid-in Surplus			Unassigned Surplus			Total Capital and Surplus
Balance at January 1, 2009	$	2,500	$	45,322		$	149,634		$	82,636		$	280,092
Cumulative effect of changes in accounting principles		—		—			—			(6	)		(6	)
Net income		—		—			—			115,655			115,655
Change in net unrealized capital gains and losses, net of tax		—		—			—			161			161
Change in nonadmitted assets		—		—			—			49,263			49,263
Change in asset valuation reserve		—		—			—			(4,104	)		(4,104	)
Change in liability for reinsurance in unauthorized companies		—		—			—			(14,749	)		(14,749	)
Dividend to stockholder		—		—			—			(65,000	)		(65,000	)
Change in net deferred income tax asset		—		—			—			9,428			9,428
Surplus effect of reinsurance transaction		—		—			—			(8,331	)		(8,331	)
Decrease in admitted deferred tax attributable to expiration of permitted practice		—		(45,322	)		—			—			(45,322	)
Increase in admitted deferred tax asset pursuant to SSAP No. 10R		—		46,066			—			—			46,066
Contributed surplus related to stock appreciation rights plans of indirect parent		—		—			(7	)		—			(7	)
Balance at December 31, 2009		2,500		46,066			149,627			164,953			363,146
Net income		—		—			—			123,139			123,139
Change in net unrealized capital gains and losses, net of tax		—		—			—			783			783
Change in nonadmitted assets		—		—			—			(30,671	)		(30,671	)
Change in asset valuation reserve		—		—			—			(732	)		(732	)
Change in liability for reinsurance in unauthorized companies		—		—			—			15,762			15,762
Dividend to stockholder		—		—			—			(100,000	)		(100,000	)
Change in net deferred income tax asset		—		—			—			(10,050	)		(10,050	)
Surplus effect of reinsurance transaction		—		—			—			125,426			125,426
Increase in admitted deferred tax asset pursuant to SSAP No. 10R		—		24,461			—			—			24,461
Balance at December 31, 2010	$	2,500	$	70,527		$	149,627		$	288,610		$	511,264

See accompanying notes.

6

Western Reserve Life Assurance Co. of Ohio

Statements of Changes in Capital and Surplus – Statutory Basis (continued)

(Dollars in Thousands)

	Common Stock		Aggregate Write-ins for Other than Special Surplus Funds			Paid-in Surplus		Unassigned Surplus			Total Capital and Surplus
Balance at December 31, 2010	$	2,500	$	70,527		$	149,627	$	288,610		$	511,264
Net loss		—		—			—		(11,946	)		(11,946	)
Change in net unrealized capital gains and losses, net of tax		—		—			—		(3,720	)		(3,720	)
Change in nonadmitted assets		—		—			—		(27,616	)		(27,616	)
Change in asset valuation reserve		—		—			—		378			378
Change in liability for reinsurance in unauthorized companies		—		—			—		(104	)		(104	)
Dividend to stockholder		—		—			—		(250,000	)		(250,000	)
Change in net deferred income tax asset		—		—			—		18,337			18,337
Surplus effect of reinsurance transaction		—		—			—		41,629			41,629
Change in admitted deferred tax asset pursuant to SSAP No. 10R		—		(3,024	)		—		—			(3,024	)
Balance at December 31, 2011	$	2,500	$	67,503		$	149,627	$	55,568		$	275,198

See accompanying notes.

7

Western Reserve Life Assurance Co. of Ohio

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2011			2010			2009
Operating activities
Premiums collected, net of reinsurance	$	480,756		$	526,163		$	656,731
Net investment income received		85,361			66,047			50,766
Miscellaneous income received		271,567			539,019			363,740
Benefit and loss related payments		(698,717	)		(824,387	)		(806,244	)
Commissions, expenses paid and aggregate write-ins for deductions		(250,591	)		(255,238	)		(362,277	)
Net transfers from separate accounts		371,180			355,103			224,204
Dividends paid to policyholders		(24	)		(25	)		(26	)
Federal and foreign income taxes (recovered) paid		(88,126	)		(24,921	)		31,637
Net cash provided by operating activities		171,406			381,761			158,531
Investing activities
Proceeds from investments sold, matured or repaid:
Bonds		263,103			355,114			521,007
Common stocks		120			—			—
Mortgage loans on real estate		6,267			99			279
Other invested assets		—			—			790
Securities lending reinvested collateral assets		104,301			—			—
Miscellaneous proceeds		6			232			25,645
Total investment proceeds		373,797			355,445			547,721
Costs of investments acquired:
Bonds		(212,793	)		(514,695	)		(681,228	)
Common stocks		(597	)		—			(594	)
Mortgage loans on real estate		(43,694	)		(8	)		(29	)
Real estate		66			(856	)		(166	)
Other invested assets		(845	)		(603	)		(1,751	)
Securities lending reinvested collateral assets		—			(193,926	)		—
Miscellaneous applications		(18,575	)		(9,000	)		(17,933	)
Total cost of investments acquired		(276,438	)		(719,088	)		(701,701	)
Net (increase) decrease in policy loans		(14,526	)		(12,828	)		32,337
Net cost of investments acquired		(290,964	)		(731,916	)		(669,364	)
Net cash provided by (used in) investing activities		82,833			(376,471	)		(121,643	)

8

Western Reserve Life Assurance Co. of Ohio

Statements of Cash Flow – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2011			2010			2009
Financing and miscellaneous activities
Cash provided (applied):
Net deposits (withdrawals) on deposit-type contracts and other insurance liabilities		(2,510	)		(314	)		74
Borrowed funds		5,229			—			—
Dividends to stockholder		(250,000	)		(100,000	)		(65,000	)
Funds held under reinsurance treaty with unauthorized reinsurers		18,404			10,311			(116,182	)
Receivable from parent, subsidiaries and affiliates		10,767			5,322			63,458
Payable to parent, subsidiaries and affiliates		6,775			(2,560	)		(42,747	)
Payable for securities lending		(104,302	)		193,926			—
Other cash applied		(10,387	)		(18,986	)		(6,847	)
Net cash provided by (used in) financing and miscellaneous activities		(326,024	)		87,699			(167,244	)
Net increase (decrease) in cash, cash equivalents and short-term investments		(71,785	)		92,989			(130,356	)
Cash, cash equivalents and short-term investments:
Beginning of year		242,139			149,150			279,506
End of year	$	170,354		$	242,139		$	149,150

See accompanying notes.

9

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands)

December 31, 2011

1. Organization and Summary of Significant Accounting Policies

Organization

Western Reserve Life Assurance Co. of Ohio (the Company) is a stock life insurance company and is a wholly owned subsidiary of AEGON USA, LLC (AEGON). AEGON is an indirect, wholly owned subsidiary of AEGON N.V., a holding company organized under the laws of The Netherlands.

Nature of Business

The Company operates predominantly in the variable universal life and variable annuity areas of the life insurance business. The Company is licensed in 49 states, District of Columbia, Puerto Rico and Guam. Sales of the Company’s products are through financial planners, independent representatives, financial institutions and stockbrokers. The majority of the Company’s new life insurance, and a portion of new annuities, are written through an affiliated marketing organization.

Basis of Presentation

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

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance, which practices differ from accounting principles generally accepted in the United States (GAAP). The more significant variances from GAAP are:

10

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Investments: Investments in bonds and mandatory redeemable preferred stocks are reported at amortized cost or fair value based on their National Association of Insurance Commissioners (NAIC) rating; for GAAP, such fixed maturity investments would be designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in earnings for those designated as trading and as a separate component of other comprehensive income (OCI) for those designated as available-for-sale. Fair value for GAAP is based on indexes, third party pricing services, brokers, external fund managers and internal models. For statutory reporting, the NAIC allows insurance companies to report the fair value determined by the Securities Valuation Office of the NAIC (SVO) or determine the fair value by using a permitted valuation method.

All single class and multi-class mortgage-backed/asset-backed securities (e.g., CMOs) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective methods. If the fair value of the mortgage-backed/asset-backed security is less than amortized cost, an entity shall assess whether the impairment is other-than-temporary. An other-than-temporary impairment is considered to have occurred if the fair value of the mortgage-backed/asset-backed security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An other-than-temporary impairment is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security.

If it is determined an other-than-temporary impairment has occurred as a result of the cash flow analysis, the security is written down to the discounted estimated future cash flows. If an other-than-temporary impairment has occurred due to intent to sell or lack of intent and ability to hold, the security is written down to fair value.

For GAAP, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used. If it is determined that a decline in fair value is other-than-temporary and the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the other-than-temporary impairment should be recognized in earnings equal to the entire difference between the amortized cost basis and its fair value at the impairment date. If the entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery, the other-than-temporary impairment should be separated into a) the amount

11

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

representing the credit loss, which is recognized in earnings, and b) the amount related to all other factors, which is recognized in OCI, net of applicable taxes.

Derivative instruments used in hedging transactions that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability. Embedded derivatives are not accounted for separately from the host contract. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are accounted for at fair value, and the changes in the fair value are recorded in unassigned surplus as unrealized gains and losses. Under GAAP, the effective and ineffective portions of a single hedge are accounted for separately, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of OCI rather than to income as required for fair value hedges, and an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risk of the host contract is accounted for separately from the host contract and valued and reported at fair value.

Derivative instruments are also used in replication transactions. In these transactions, the derivative is valued in a manner consistent with the cash investment and replicated asset. For GAAP, the derivative is reported at fair value with the changes in the fair value reported in income.

Investments in real estate are reported net of related obligations rather than on a gross basis as for GAAP. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses for statutory reporting include rent for the Company’s occupancy of those properties. Changes between depreciated cost and admitted amounts are credited or charged directly to unassigned surplus rather than to income as would be required under GAAP.

Valuation allowances are established for mortgage loans, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral.

The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus as part of the change in asset valuation reserve (AVR), rather than being included as a component of earnings as would be required under GAAP.

12

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Valuation Reserves: Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. That net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses would be reported in the statement of operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.

The AVR provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.

Subsidiaries: The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP.

Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance and certain long-duration accident and health insurance, to the extent recoverable from future policy revenues, would be deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves; for universal life insurance and investment products, to the extent recoverable from future gross profits, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges and investment, mortality and expense margins.

Nonadmitted Assets: Certain assets designated as “nonadmitted”, primarily net deferred tax assets and agent debit balances, and other assets not specifically identified as an admitted asset within the NAIC Accounting Practices and Procedures Manual (NAIC SAP), are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet to the extent they are not impaired.

Universal Life and Annuity Policies: Revenues for universal life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received. Benefits incurred represent surrenders and death benefits paid and the change in policy reserves. Premiums received and benefits incurred for annuity policies without mortality or morbidity risk and guaranteed interest in group annuity contracts are recorded directly to a policy reserve account using deposit accounting, without recognizing premium income or benefits expense. Interest on these policies is reflected in other benefits. Under GAAP, for universal life policies,

13

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability.

Benefit Reserves: Certain policy reserves are calculated based on statutorily required interest and mortality assumptions rather than on estimated expected experience or actual account balances as would be required under GAAP.

Reinsurance: Any reinsurance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances would be established for unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to the liability are credited or charged directly to unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings.

Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.

Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.

Deferred Income Taxes: The Company computes deferred income taxes in accordance with Statement of Statutory Accounting Principle (SSAP) No. 10R, Income Taxes – Revised, A Temporary Replacement of SSAP No. 10. Under SSAP 10R, deferred income tax assets are limited to 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the lesser of the remaining gross deferred income tax assets expected to be realized within three years of the balance sheet date or 15% of capital and surplus excluding any net deferred income tax assets, electronic data processing equipment and operating software and any net positive goodwill, plus 3) the amount of remaining gross deferred income tax assets that can be offset against existing gross deferred income tax liabilities after considering the character (i.e., ordinary versus capital) of the deferred tax assets and liabilities. The remaining deferred income tax assets are nonadmitted.

Deferred income taxes do not include amounts for state taxes. Under GAAP, state taxes are included in the computation of deferred income taxes, a deferred income tax asset is recorded for the amount of gross deferred income tax assets expected to be realized in

14

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

all future years, and a valuation allowance is established for deferred income tax assets not realizable.

Policyholder Dividends: Policyholder dividends are recognized when declared rather than over the term of the related policies.

Statements of Cash Flow: Cash, cash equivalents and short-term investments in the statements of cash flow represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.

Securities Lending Assets and Liabilities: For securities lending programs, cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the balance sheet (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Collateral received which may not be sold or repledged is not recorded on the Company’s balance sheet. Under GAAP the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

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

Other significant accounting policies are as follows:

Investments

Investments in bonds, except those to which the SVO has ascribed an NAIC designation of 6, are reported at amortized cost using the interest method.

Hybrid securities, as defined by the NAIC, are securities designed with characteristics of both debt and equity and provide protection to the issuer’s senior note holders. These securities meet the definition of a bond, in accordance with SSAP No. 26, Bonds, excluding Loan-backed and Structured Securities and therefore, are reported at amortized cost or fair value based upon their NAIC rating.

Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.

15

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company closely monitors below investment grade holdings and those investment grade issuers where the Company has concerns. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. For structured securities, cash flow trends and underlying levels of collateral are monitored. The Company will record a charge to the statement of operations to the extent that these securities are subsequently determined to be other-than-temporarily impaired.

Investments in both affiliated and unaffiliated preferred stocks in good standing are reported at cost or amortized cost. Investments in preferred stocks not in good standing are reported at the lower of cost or fair value, and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes.

If the Company determines that a decline in the fair value of a common stock or a preferred stock is other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statement of operations. The Company considers the following factors in determining whether a decline in value is other-than-temporary: (a) the financial condition and prospects of the issuer; (b) whether or not the Company has made a decision to sell the investment; and (c) the length of time and extent to which the value has been below cost.

Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in the change in net unrealized capital gains or losses, reported in unassigned surplus along with any adjustment for federal income taxes.

16

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

There are no restrictions on common or preferred stock.

Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost.

Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines that the impairment is other-than-temporary, the mortgage loan is written down to realizable value and a realized loss is recognized.

Real estate occupied by the Company is reported at depreciated cost net of encumbrances. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties.

Investments in Low Income Housing Tax Credit (LIHTC) Properties are valued at amortized cost. Tax credits are recognized in operations in the tax reporting year in which the tax credit is utilized by the Company.

Realized capital gains and losses are determined using the specific identification method and are recorded net of related federal income taxes. Changes in admitted asset carrying amounts of bonds, mortgage loans, preferred and common stocks are credited or charged directly to unassigned surplus.

Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Further, income is not accrued when collection is uncertain. At December 31, 2011 and 2010, the Company did not exclude any investment income due and accrued with respect to such practices.

For dollar repurchase agreements, the Company receives cash collateral in an amount at least equal to the fair value of the securities transferred by the Company in the transaction as of the transaction date. Cash received as collateral will be invested as needed or used for general corporate purposes of the Company.

17

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Derivative Instruments

Overview: The Company may use various derivative instruments (options, caps, floors, swaps, foreign currency forwards and futures) to manage risks related to its ongoing business operations. On the transaction date of the derivative instrument, the Company designates the derivative as either (A) hedging (fair value, foreign currency fair value, cash flow, foreign currency cash flow, forecasted transactions or net investment in a foreign operation), (B) replication, (C) income generation or (D) held for other investment/risk management activities, which do not qualify for hedge accounting under SSAP No. 86, Accounting for Derivative Instruments and Hedging Activities (SSAP No. 86).

Derivative instruments used in hedging relationships are accounted for on a basis that is consistent with the hedged item (amortized cost or fair value). Derivative instruments used in replication relationships are accounted for on a basis that is consistent with the cash instrument and the replicated asset (amortized cost or fair value). Derivative instruments used in income generation relationships are accounted for on a basis that is consistent with the associated covered asset or underlying interest to which the derivative indicates (amortized cost or fair value). Derivative instruments held for other investment/risk management activities receive fair value accounting.

Derivative instruments are subject to market risk, which is the possibility that future changes in market prices may make the instruments less valuable. The Company uses derivatives as hedges, consequently, when the value of the derivative changes, the value of a corresponding hedged asset or liability will move in the opposite direction. Market risk is a consideration when changes in the value of the derivative and the hedged item do not completely offset (correlation or basis risk) which is mitigated by active measuring and monitoring.

The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit rating of ‘A’ or better. The credit exposure of interest rate swaps and currency swaps is represented by the fair value of contracts, aggregated at a counterparty level, with a positive fair value at the reporting date. The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Company’s behalf. The posted amount is equal to the difference between the net positive fair value of the contracts and an agreed upon threshold that is based on the credit rating of the counterparty. Inversely, if the net fair value of all contracts with this counterparty is negative, then the Company is required to post assets.

18

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Instruments: Variance swaps are used in the asset/liability management process to mitigate the risk created when the Company has issued minimum guarantee insurance contracts linked to an index. These variance swaps are similar to volatility options where the underlying index provides for the market value movements. Variance swaps do not accrue interest. Typically, no cash is exchanged at the outset of initiating the variance swap and a single receipt or payment occurs at the maturity or termination of the contract. The variance swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

Futures contracts are used to hedge the liability risk associated when the Company issues products providing the customer a return based on various global market indices. Futures are marked to market on a daily basis whereby a cash payment is made or received by the Company. These payments are recognized as realized gains or losses in the financial statements.

Premiums and Annuity Considerations

Revenues for policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received and are recognized over the premium paying periods of the related policies. Premiums received for annuity policies without mortality or morbidity risk are recorded using deposit accounting, and recorded directly to an appropriate policy reserve account, without recognizing premium income.

Aggregate Reserves for Policies and Contracts

Life, annuity and accident and health benefit reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum required by law.

The Company waives deduction of deferred fractional premiums upon death of the insured and refunds portions of premiums beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves.

Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Additional reserves are established when the results of cash flow testing under various interest rate scenarios

19

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

indicate the need for such reserves or the net premiums exceed the gross premiums on any insurance in force.

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula. Tabular interest on funds not involving life contingencies has also been determined by formula.

The aggregate policy reserves for life insurance policies are based principally upon the 1941, 1958, 1980 and 2001 Commissioner’s Standard Ordinary Mortality Tables. The reserves are calculated using interest rates ranging from 2 to 5.5 percent and are computed principally on the Net Level Premium Valuation and the Commissioner’s Reserve Valuation Methods. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s Reserve Valuation Method.

Deferred annuity reserves are calculated according to the Commissioner’s Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest. Reserves for immediate annuities and supplementary contracts with life contingencies are equal to the present value of future payments assuming interest rates ranging from 4 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.

Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required mid-terminal reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.

The liabilities related to guaranteed investment contracts and policyholder funds left on deposit with the Company generally are equal to fund balances less applicable surrender charges.

Policy and Contract Claim Reserves

Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the statement date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes available.

20

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Liability for Deposit-Type Contracts

Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include supplemental contracts and certain annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance, and are not reflected as premiums, benefits or changes in reserve in the statement of operations.

Reinsurance

Coinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies and the terms of the reinsurance contracts. Gains associated with reinsurance of in force blocks of business are included in unassigned surplus and amortized into income as earnings emerge on the reinsured block of business. Premiums ceded and recoverable losses have been reported as a reduction of premium income and benefits, respectively. Policy liabilities and accruals are reported in the accompanying financial statements net of reinsurance ceded.

Separate Accounts

Separate accounts held by the Company primarily represent funds which are administered for individual variable universal life and variable annuity contracts. Assets held in trust for purchases of variable universal life and variable annuity contracts and the Company’s corresponding obligation to the contract owners are shown separately in the balance sheet. The assets in the accounts, carried at estimated fair value, consist of underlying mutual fund shares, common stocks, long-term bonds and short-term investments. The separate accounts, held for individual policyholders, do not have any minimum guarantees, and the investment risks associated with the fair value changes are borne entirely by the policyholder.

The Company received variable contract premiums of $349,011, $378,162 and $456,377, in 2011, 2010 and 2009, respectively. All variable account contracts are subject to discretionary withdrawal by the policyholder at the fair value of the underlying assets less the current surrender charge. Separate account contract holders have no claim against the assets of the general account.

Income and gains and losses with respect to the assets in the separate accounts accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements. The Company received $312,161, $319,607 and $342,329, in 2011, 2010 and 2009, respectively, related to fees associated with investment management, administration and contractual guarantees for separate accounts.

21

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Stock Option Plan, Long-Term Incentive Compensation and Stock Appreciation Rights Plans

The Company’s employees participate in various stock appreciation rights (SAR) plans issued by AEGON. In accordance with SSAP No. 13, Stock Options and Stock Purchase Plans, the expense related to these plans for the Company’s employees has been charged to the Company, with an offsetting amount credited to paid-in surplus. No benefit or expense relating to these plans was recorded by the Company for the years ended December 31, 2011 and 2010. The Company recorded a benefit of $7 for the year ended December 31, 2009. In addition, the Company records an adjustment to paid in surplus for the income tax benefit related to these plans. The Company did not record an adjustment to paid-in surplus for the income tax effect related to these plans for the years ended December 31, 2011, 2010 or 2009.

Recent Accounting Pronouncements

Effective December 31, 2011, the Company adopted SSAP No. 5R, Liabilities, Contingencies and Impairments of Assets – Revised. The revisions require the Company to recognize a liability equal to the fair value of the guarantee at its inception, even if the likelihood of payment under the guarantee is remote. Additional disclosures are also required for guarantees. Guarantees made to/or on behalf of a wholly-owned subsidiary and related party guarantees that are considered “unlimited” (for example, in response to a rating agency’s requirement to provide a commitment to support) are exempt from the initial liability recognition, but are subject to the new disclosure requirements. The adoption of this new accounting principle had no material impact to the Company’s results of operations or financial position and did not require additional disclosures regarding these guarantees.

Effective December 31, 2011, the Company adopted non-substantive revisions to SSAP No. 100, Fair Value Measurements, to incorporate the provisions of ASU 2010-06, Improving Disclosures about Fair Value Measurements. This revision requires, for annual statutory financial statements only, a new disclosure for assets and liabilities for which fair value is not measured and reported in the statement of financial position but is otherwise disclosed. The adoption of these revisions had no impact to the Company’s results of operations or financial position. See Note 2 for further details.

Effective January 1, 2012, the Company will adopt revisions to SSAP No. 100. These revisions require new disclosures of fair value hierarchy and the method used to obtain the fair value measurement, a new footnote that summarizes hierarchy levels by type of financial instrument and gross presentation of purchases, sales, issues and settlements within the reconciliation for fair value measurements categorized within Level 3 of the hierarchy.

22

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Effective December 31, 2011, the Company adopted non-substantive changes to SSAP No. 32, Investments in Preferred Stock (including investments in preferred stock of subsidiary, controlled, or affiliated entities). The amendment was made to clarify the definition of preferred stock. Under the revised SSAP No. 32, a preferred stock is defined as any class or series of shares the holders of which have any preference, either as to the payment of dividends or distribution of assets on liquidation, over the holder of common stock [as defined in SSAP No. 30, Investments in Common Stock (excluding investments in common stock of subsidiary, controlled, or affiliated entities)] issued by an entity. This revised definition had no impact to the Company.

Effective January 1, 2011, the Company adopted SSAP No. 35R, Guaranty Fund and Other Assessments – Revised. This statement modified the conditions required for recognizing a liability for insurance-related assessments and required additional disclosures to be made in the Notes to the Financial Statements. The adoption of this accounting principle had no financial impact to the Company.

Effective January 1, 2011, the Company adopted revisions to certain paragraphs of SSAP No. 43R – Loan-backed and Structured Securities to clarify the accounting for gains and losses between AVR and IMR. The revisions clarify that an AVR/IMR bifurcation analysis should be performed when SSAP No. 43R securities are sold (not just as a result of impairment). These changes were applied on a prospective basis and had no financial impact to the Company upon adoption.

Effective January 1, 2011, the Company adopted revisions to SSAP No. 43R to clarify the definitions of loan-backed and structured securities. The clarified guidance was applied prospectively and had no financial impact to the Company upon adoption.

Effective December 31, 2009, the Company began computing deferred income taxes in accordance with SSAP No. 10R. This statement establishes statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. This statement temporarily replaces SSAP No. 10, Income Taxes. Under SSAP No. 10R, gross deferred tax assets (DTAs) shall be admitted in an amount equal to the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year and the lesser of the amount of adjusted gross DTAs, expected to be realized within one year of the balance sheet date or 10% of capital and surplus excluding any net deferred income tax assets, electronic data processing equipment and operating system software and any net positive goodwill that can be offset against existing gross deferred income tax liabilities (DTLs) after considering the character. If the Company’s risk-based capital level (RBC) is above 250% where an action level could occur as a result of a trend test, the Company may elect to admit a higher amount of adjusted gross DTAs. When elected, additional DTAs are admitted for taxes paid in prior years that can be recovered through loss carryback provisions for existing temporary differences that

23

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

reverse within three years of the balance sheet date and the lesser of the remaining gross DTAs expected to be realized within three years of the balance sheet date or 15% of capital and surplus excluding any net deferred income tax assets, electronic data processing equipment and operating software and any positive net goodwill plus the amount of remaining gross DTAs that can be offset against DTLs after considering the character (i.e., ordinary versus capital) of the DTAs and DTLs. The effect of the election of this statement is the difference between the calculation of the admitted DTA per SSAP No. 10R and the SSAP No. 10 methodology at December 31, 2011, 2010 and 2009. As a result of this election, surplus increased by $67,503, $70,527 and $46,066 at December 31, 2011, 2010 and 2009, respectively, which has been reflected as an aggregate write-in for other than special surplus funds on the 2011 financial statements.

Effective January 1, 2012, the Company will begin computing current and deferred income taxes in accordance with SSAP No. 101, Income Taxes, a replacement of SSAP No. 10R and SSAP No. 10. This statement establishes statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The effect of this statement is not expected to be material to the financial statements.

Effective December 31, 2010, the Company adopted modifications made to SSAP No. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. As a result of these modifications, for securities lending programs, collateral received by the Company’s agent that can be sold or re-pledged is reported on the balance sheet. Collateral received and reinvestment of that collateral by the Company are reflected as a one-line entry on the balance sheet (securities lending reinvested collateral asset). A separate liability is also established to record the obligation to return the cash collateral (payable for securities lending). This change in accounting principle increased assets and liabilities by $193,926 as of December 31, 2010 with no impact to surplus. See Note 8 for further details.

Effective December 31, 2010, the Company adopted SSAP No. 100, including recent modifications and clarifications made to the standard. This statement defines fair value, establishes a framework for measuring fair value and establishes disclosure requirements about fair value, and it applies under other statutory accounting pronouncements that require or permit fair value measurements. The adoption of this new accounting principle had no impact to the Company’s results of operations or financial position. See Note 2 for further details.

Effective September 30, 2009, the Company adopted SSAP No. 43R. This statement establishes statutory accounting principles for investments in loan-backed and structured securities. The SSAP supersedes SSAP No. 98, Treatment of Cash Flows When Quantifying Changes in Valuation and Impairments and paragraph 13 of SSAP No. 99, Accounting for Certain Securities Subsequent to an Other-Than-Temporary Impairment. SSAP No. 43R changes the accounting for other-than-temporary impairments (OTTI). If

24

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

the Company intends to sell a security or lacks the intent or ability to hold the security until it recovers to its amortized cost basis, the security shall be written down to its fair value. If the Company does not expect to recover the entire amortized cost basis of a security, an OTTI shall be recognized as a realized loss equal to the difference between the security’s amortized cost basis and the present value of cash flows expected to be collected, discounted at the effective interest rate as outlined in the SSAP. Prior to the adoption of SSAP No. 43R, loan-backed and structured securities were accounted for in accordance with SSAP No. 43, which called for those securities to be impaired and written down using undiscounted cash flows. The cumulative effect of the adoption of this standard is the difference between the present value of expected cash flows for securities identified as having an OTTI compared with their amortized cost basis as of July 1, 2009. This change in accounting principle reduced surplus by a net amount of $10 ($6 net of tax), which includes impairments of $4,270 offset by NAIC 6 rated securities that were already reported at lower of cost or market at the time of the implementation of SSAP No. 43R of $4,260, which have been removed from the component of change in net unrealized gains/losses.

Effective December 31, 2009 the Company adopted amendments to SSAP No. 9, Subsequent Events, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. The guidance requires the disclosure of the date through which an entity has evaluated subsequent events and whether that date represents the date the financial statements were issued or were available to be issued. The adoption did not impact the Company’s results of operations or financial position. See Note 13 for further discussion of the Company’s consideration of subsequent events.

In September 2008, the NAIC issued SSAP No. 99. This statement establishes the statutory accounting principles for the treatment of premium or discount applicable to certain securities subsequent to the recognition of an OTTI. Prior to SSAP No. 99, the Company’s previously impaired investments were reported in accordance with SSAP No. 26, Bonds, excluding Loan-backed and Structured Securities, SSAP No. 32 and SSAP No. 43, Loan-backed and Structured Securities. The Company adopted SSAP No. 99 on January 1, 2009. The adoption of this statement was accounted for prospectively and therefore there was no impact to the Company’s financial statements at adoption.

Reclassifications

Certain reclassifications have been made to the 2010 and 2009 financial statements to conform to the 2011 presentation.

25

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

2. Fair Values of Financial Instruments

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash, Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values.

Bonds and Stocks: The NAIC allows insurance companies to report the fair value determined by the SVO or to determine the fair value by using a permitted valuation method. The fair values of bonds and stocks are reported or determined using the following pricing sources: indexes, third party pricing services, brokers, external fund managers and internal models.

For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from independent pricing services, or, in the case of private placements, estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.

Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair value.

Mortgage Loans on Real Estate: The fair values for mortgage loans on real estate are estimated utilizing discounted cash flow analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.

Policy Loans: Carrying value of policy loans approximates their fair value.

Securities Lending Reinvested Collateral: The cash collateral from securities lending is reinvested in various short term and long term debt instruments. The fair values of these investments are determined using the methods described above under Cash, Cash Equivalents and Short-Term Investments and Bonds and Stocks.

Derivative Financial Instruments: The estimated fair values of interest rate swaps, including interest rate and currency swaps, are based on pricing models or formulas using current assumptions.

Investment Contract Liabilities: Fair values for the Company’s liabilities under investment contracts are estimated using discounted cash flow calculations, based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued.

26

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate their fair values.

Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices. The fair value of separate account annuity liabilities approximate the fair value of the separate account assets less a provision for the present value of future profits related to the underlying contracts.

Receivable from/Payable to Parent, Subsidiaries and Affiliates: The carrying amount of receivable from/payable to affiliates approximates their fair value.

Fair values for the Company’s insurance contracts other than investment-type contracts (including separate account universal life liabilities) are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, which minimizes exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts.

The following sets forth a comparison of the estimated fair values and carrying amounts of the Company’s financial instruments:

	December 31
	2011				2010
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Admitted assets
Cash, cash equivalents and short-term investments, other than affiliates	$	170,354	$	170,354	$	242,139	$	242,139
Bonds, other than affiliates		888,551		931,927		941,187		949,065
Mortgage loans on real estate, other than affiliates		49,646		49,912		12,416		12,000
Policy loans		406,037		406,037		391,511		391,511
Securities lending reinvested collateral		89,624		89,423		193,926		193,683
Receivable from parent, subsidiaries and affiliates		2,067		2,067		12,834		12,834
Separate account assets		6,518,084		6,518,084		7,401,665		7,401,665
Liabilities
Investment contract liabilities		550,387		551,456		533,166		534,263
Deposit-type contracts		13,018		13,018		15,179		15,179
Interest rate swaps		511		511		971		971
Payable to parent, subsidiaries and affiliates		26,732		26,732		19,957		19,957
Separate account annuity liabilities		3,422,903		3,422,903		4,004,410		4,004,410

27

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Determination of fair value

The fair values of financial instruments are determined by management after taking into consideration several sources of data. When available, the Company uses quoted market prices in active markets to determine the fair value of its investments. The Company’s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/or estimated cash flows.

To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate that the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.

Each month, the Company performs an analysis of the information obtained from indices, third-party services, and brokers to ensure that the information is reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitative factors as part of this analysis, including but not limited to, recent transactional activity for similar securities, review of pricing statistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices or un-priced securities.

Fair value hierarchy

The Company’s financial assets and liabilities carried at fair value are classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to

28

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:

Level 1 -	Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.
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 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. They reflect the Company’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

The Company accounts for its investments in affiliated common stock using the equity method of accounting; as such, they are not included in the following disclosures as they are not carried at fair value on the balance sheet.

29

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables provide information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2011 and 2010:

	2011
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	3,143	$	559	$	3,702
Total bonds		—		3,143		559		3,702
Cash equivalents and short-term investments
Government		—		3		—		3
Industrial and miscellaneous		—		99,981		—		99,981
Mutual funds		—		70,092		—		70,092
Sweep accounts		—		52		—		52
Total Short-term		—		170,128		—		170,128
Separate account assets		6,518,084		—		—		6,518,084
Total assets at fair value	$	6,518,084	$	173,271	$	559	$	6,691,914
Liabilities:
Derivative liabilities	$	—	$	511	$	—	$	511
Total liabilities at fair value	$	—	$	511	$	—	$	511

	2010
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	1,219	$	562	$	1,781
Total bonds		—		1,219		562		1,781
Cash equivalents and short-term investments
Government		—		7,994		—		7,994
Industrial and miscellaneous		—		233,993		—		233,993
Sweep accounts		—		175		—		175
Total Short-term		—		242,162		—		242,162
Separate account assets		7,401,665		—		—		7,401,665
Total assets at fair value	$	7,401,665	$	243,381	$	562	$	7,645,608
Liabilities:
Derivative liabilities	$	—	$	971	$	—	$	971
Total liabilities at fair value	$	—	$	971	$	—	$	971

Bonds classified in Level 2 are valued using inputs from third party pricing services or broker quotes. Level 3 measurements for bonds are primarily those valued using broker quotes or internal modeling which utilize inputs that are not market observable.

30

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Short-term investments are classified as Level 2 as they are carried at amortized cost, which approximates fair value.

Derivatives classified as Level 2 represent over-the-counter (OTC) contracts valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades or external pricing services.

The following tables summarize the changes in assets and liabilities classified in Level 3 for 2011 and 2010:

	Balance at January 1, 2011		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income		Total Gains and (Losses) Included in Surplus			Purchases, Issuances, Sales and Settlements			Balance at December 31, 2011
Bonds	$	562	$	—	$	—	$	36	$	(23	)	$	(16	)	$	559
Total	$	562	$	—	$	—	$	36	$	(23	)	$	(16	)	$	559

	Balance at January 1, 2010		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income		Total Gains and (Losses) Included in Surplus			Purchases, Issuances, Sales and Settlements			Balance at December 31, 2010
Bonds	$	564	$	—	$	—	$	34	$	(23	)	$	(13	)	$	562
Total	$	564	$	—	$	—	$	34	$	(23	)	$	(13	)	$	562

The Company’s policy is to recognize transfers in and out of Level 3 as of the beginning of the reporting period.

31

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

3. Investments

The carrying amount and estimated fair value of investments in bonds are as follows:

	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses 12 Months or More		Gross Unrealized Losses less Than 12 Months		Estimated Fair Value
December 31, 2011
Unaffiliated bonds:
United States Government and agencies	$	69,648	$	7,320	$	—	$	—	$	76,968
State, municipal and other government		11,100		703		334		135		11,334
Hybrid securities		17,325		—		—		2,100		15,225
Industrial and miscellaneous		546,229		41,668		801		2,660		584,436
Mortgage and other asset-backed securities		244,249		9,746		9,990		41		243,964
	$	888,551	$	59,437	$	11,125	$	4,936	$	931,927

	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses 12 Months or More		Gross Unrealized Losses less Than 12 Months		Estimated Fair Value
December 31, 2010
Unaffiliated bonds:
United States Government and agencies	$	48,002	$	919	$	—	$	1,421	$	47,500
State, municipal and other government		11,266		634		310		—		11,590
Hybrid securities		9,975		618		12		—		10,581
Industrial and miscellaneous		622,221		20,643		171		4,178		638,515
Mortgage and other asset-backed securities		249,723		6,826		15,616		54		240,879
	$	941,187	$	29,640	$	16,109	$	5,653	$	949,065

At December 31, 2011 and 2010, respectively, for bonds that have been in a continuous loss position for greater than or equal to twelve months, the Company held 27 and 31 securities with a carrying amount of $91,707 and $105,753 and an unrealized loss of $11,125 and $16,109 with an average price of 87.9 and 84.8 (fair value/amortized cost). Of this portfolio, 79.8% and 79.3% were investment grade with associated unrealized losses of $6,045 and $9,864, respectively.

At December 31, 2011 and 2010, respectively, for bonds that have been in a continuous loss position for less than twelve months, the Company held 29 and 52 securities with a carrying amount of $67,526 and $147,068 and an unrealized loss of $4,936 and $5,653

32

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

with an average price of 92.7 and 96.2 (fair value/amortized cost). Of this portfolio, 93.5% and 100.0% were investment grade with associated unrealized losses of $4,272 and $5,653, respectively.

The estimated fair value of bonds with gross unrealized losses at December 31, 2011 and 2010 are as follows:

	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2011
Unaffiliated bonds:
State, municipal and other government	$	738	$	962	$	1,700
Hybrid securities		—		15,225		15,225
Industrial and miscellaneous		13,086		41,363		54,449
Mortgage and other asset-backed securities		66,757		5,040		71,797
	$	80,581	$	62,590	$	143,171

	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2010
Unaffiliated bonds:
United States Government and agencies	$	—	$	20,648	$	20,648
State, municipal and other government		764		—		764
Hybrid securities		475		—		475
Industrial and miscellaneous		5,658		116,086		121,744
Mortgage and other asset-backed securities		82,747		4,681		87,428
	$	89,644	$	141,415	$	231,059

The carrying amount and estimated fair value of bonds at December 31, 2011, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepay penalties.

33

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Carrying Amount		Estimated Fair Value
Due in one year or less	$	14,098	$	14,300
Due after one year through five years		229,752		243,981
Due after five years through ten years		294,843		314,266
Due after ten years		105,609		115,416
	$	644,302	$	687,963
Mortgage and other asset-backed securities		244,249		243,964
	$	888,551	$	931,927

For impairment policies related to non-structured and structured securities, refer to Note 1 under Investments. Asset-backed securities (ABS), Commercial mortgage-backed securities (CMBS) and Residential mortgage-backed securities (RMBS) are securitizations of underlying pools of assets. At December 31, 2011, the Company’s ABS, CMBS and RMBS portfolios had fair values less than the carrying amounts of $7,543, $915 and $1,573, respectively.

All ABS, CMBS and RMBS assets are monitored and reviewed at least quarterly. Where ratings have declined to below investment grade on nonhousing related ABS, the individual debt securities have been modeled to determine if cash flow models indicate a credit event will impact future cash flows and resulting impairments have been taken. For non-conduit CMBS, the Company’s internal asset specialist works closely with the Company’s real estate valuation group to determine underlying asset valuation and risk. For housing related ABS, conduit CMBS and RMBS, detailed cash flow models using the current collateral pool and capital structure on the portfolio are updated and reviewed.

Model output is generated under base and several stress-case scenarios. The Company’s internal asset specialists utilize widely recognized industry modeling software to perform a loan-by-loan, bottom-up approach to modeling. Key assumptions used in the models are projected defaults, loss severities and prepayments. Each of these key assumptions varies greatly based on the significantly diverse characteristics of the current collateral pool for each security. Once the entire pool is modeled, results are then closely analyzed by the Company’s internal asset specialist to determine whether or not our particular tranche or holding is at risk for not collecting all contractual cash flows, taking into account the seniority and other terms of the tranches held. If cash flow models indicate a credit event will impact future cash flows and the Company does not have the intent to sell the tranche or holding and does have the intent and ability to hold the security, the security is impaired to discounted cash flows.

As the remaining unrealized losses in the ABS, CMBS and RMBS portfolios relate to holdings where the Company expects to receive full principal and interest, the Company does not consider the underlying investments to be impaired as of December 31, 2011.

34

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Subprime mortgages are loans to homebuyers who have weak or impaired credit histories, are loans that are non-conforming or are loans that are second in priority. The Company does not sell or buy subprime mortgages directly. The Company’s exposure to subprime mortgages is through ABS. These securities are pools of mortgages that have been securitized and offered to investors as asset-backed securities, where the mortgages are collateral. Most of the underlying mortgages within the pool have credit scores below 660 at issuance. Therefore, the ABS has been classified by the Company as a subprime mortgage position. Also included in the Company’s total subprime mortgage position are ABS with second lien mortgages as collateral. The second lien mortgages may not necessarily have subprime credit scores; however, the Company has included these ABS in its subprime position as it is the second priority in terms of repayment. The Company does not have any “direct” residential mortgages to subprime borrowers outside of the ABS structures.

There were no loan-backed securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold during 2011 or 2010. The following table represents aggregate totals for loan-backed securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold, in which the security is written down to fair value at December 31, 2009.

	Amortized  Cost Basis Before OTTI		OTTI Recognized in Loss				Fair Value
			Interest		Non-interest
Year Ended December 31, 2009
OTTI recognized 4th Quarter:
Intent to sell	$	5,539	$	—	$	1,739	$	3,800
Total 4th Quarter OTTI on loan-backed securities		5,539		—		1,739		3,800
Total OTTI on loan-backed securities	$	5,539	$	—	$	1,739	$	3,800

35

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield.

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2011
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	1,000	$	24	$	976	$	529
2nd quarter present value of cash flows expected to be less than the amortized cost basis		2,733		80		2,653		1,548
3rd quarter present value of cash flows expected to be less than the amortized cost basis		2,604		25		2,579		1,377
4th quarter present value of cash flows expected to be less than the amortized cost basis		3,821		108		3,713		2,307
Aggregate total	$	10,158	$	237	$	9,921	$	5,761

36

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2010
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	1,150	$	46	$	1,104	$	1,003
2nd quarter present value of cash flows expected to be less than the amortized cost basis		1,512		67		1,445		1,049
3rd quarter present value of cash flows expected to be less than the amortized cost basis		2,057		185		1,872		1,130
4th quarter present value of cash flows expected to be less than the amortized cost basis		1,496		22		1,474		1,189
Aggregate total	$	6,215	$	320	$	5,895	$	4,371

The following loan-backed and structured securities were held at December 31, 2011, for which an OTTI had been previously recognized:

CUSIP	Amortized Cost Before  Current Period OTTI		Present Value of  Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time of OTTI		Quarter in which Impairment Occurred
35729PPC8	$	8,535	$	4,352	$	4,183	$	4,352	$	145	3Q 2009
74925FAA1		316		301		15		301		279	1Q 2010
52522QAM4		1,409		1,348		61		1,348		961	2Q 2010
65536PAA8		103		97		6		97		88	2Q 2010
65536PAA8		57		52		5		52		49	3Q 2010
75970QAH3		2,000		1,820		180		1,820		1,081	3Q 2010
52522QAM4		1,234		1,222		12		1,222		941	4Q 2010
74925FAA1		262		252		10		252		248	4Q 2010
12668WAC1		1,000		976		24		976		530	1Q 2011
12668WAC1		962		942		20		942		471	2Q 2011
65536PAA8		40		39		1		39		22	2Q 2011
75970QAH3		1,731		1,672		59		1,672		1,055	2Q 2011
12668WAC1		927		922		5		922		418	3Q 2011
65536PAA8		38		37		1		37		18	3Q 2011
75970QAH3		1,639		1,620		19		1,620		941	3Q 2011
12668WAC1		909		889		20		889		394	4Q 2011
52522QAM4		1,070		1,001		69		1,001		794	4Q 2011
65536PAA8		36		36		—		36		15	4Q 2011
74925FAA1		218		211		7		211		202	4Q 2011
75970QAH3		1,588		1,577		11		1,577		903	4Q 2011

37

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The unrealized losses of loan-backed and structured securities where fair value is less than cost or amortized cost for which an OTTI has not been recognized in earnings as of December 31, 2011 and 2010 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months
Year Ended December 31, 2011
The aggregate amount of unrealized losses	$	15,983	$	41
The aggregate related fair value of securities with unrealized losses		69,187		5,040

	Losses 12 Months or More		Losses Less Than 12 Months
Year Ended December 31, 2010
The aggregate amount of unrealized losses	$	20,867		54
The aggregate related fair value of securities with unrealized losses		84,527		4,681

Detail of net investment income is presented below:

	Year Ended December 31
	2011			2010			2009
Income:
Bonds	$	41,739		$	40,618		$	26,167
Common stocks		18,667			9,700			3,850
Mortgage loans on real estate		1,502			720			727
Real estate		4,571			4,562			4,562
Policy loans		21,751			21,439			21,407
Cash, cash equivalents and short-term investments		386			359			1,283
Derivatives		(516	)		(3,299	)		(105	)
Other invested assets		(1,287	)		(2,832	)		(2,750	)
Other		515			625			175
Gross investment income		87,328			71,892			55,316
Less investment expenses		7,297			7,405			6,945
Net investment income	$	80,031		$	64,487		$	48,371

38

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Proceeds from sales and other disposals (excluding maturities) of bonds and preferred stock and related gross realized capital gains and losses were as follows:

	Year Ended December 31
	2011			2010			2009
Proceeds	$	258,853		$	339,989		$	521,007
Gross realized gains	$	3,231		$	5,140		$	11,744
Gross realized losses		(2,031	)		(2,689	)		(2,713	)
Net realized capital gains (losses)	$	1,200		$	2,451		$	9,031

The Company had gross realized losses for the years ended December 31, 2011, 2010, and 2009 of $311, $468 and $8,814, respectively, which relate to losses recognized on other-than-temporary declines in fair values of bonds.

Net realized capital gains (losses) on investments are summarized below:

	Realized
	Year Ended December 31
	2011			2010			2009
Bonds	$	889		$	1,983		$	4,488
Mortgage loans		237			—			—
Cash, cash equivalents and short-term investments		5			—			4
Derivatives		(13,204	)		(9,000	)		(22,205	)
Other		—			2			146
		(12,073	)		(7,015	)		(17,567	)
Federal income tax effect		402			(248	)		(487	)
Transfer to interest maintenance reserve		(760	)		(1,860	)		(6,210	)
Net realized capital gains (losses) on investments	$	(12,431	)	$	(9,123	)	$	(24,264	)

The Company did not have any recorded investments in restructured securities at December 31, 2011 or 2010. At December 31, 2009, the Company had recorded investments in restructured securities of $740. The capital losses taken as a direct result of restructures in 2009 were $782. The Company often has impaired a security prior to the restructure date. These impairments are not included in the calculation of restructure-related losses and are accounted for as a realized loss, reducing the cost basis of the security involved.

39

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The changes in net unrealized capital gains and losses on investments were as follows:

	Change in Unrealized
	Year Ended December 31
	2011			2010			2009
Bonds	$	(999	)	$	(105	)	$	(7,336	)
Common stocks		(3,237	)		1,051			5,500
Derivatives		461			(223	)		(748	)
Other invested assets		(206	)		(85	)		(130	)
Change in unrealized capital gains (losses)	$	(3,981	)	$	638		$	(2,714	)

At December 31, 2011 and 2010, bonds with an aggregate carrying value of $3,605 and $3,973, respectively, were on deposit with certain state regulatory authorities or were restrictively held in bank custodial accounts for benefit of such state regulatory authorities, as required by statute.

During 2011, five loans totaling $40,870 were transferred from two affiliated entities.

During 2011, 2010 and 2009, no mortgage loans were foreclosed and transferred to real estate. At December 31, 2011 and 2010, the Company held a mortgage loan loss reserve in the AVR of $378 and $85, respectively.

The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:

Geographic Distribution							Property Type Distribution
	December 31							December 31
	2011			2010				2011			2010
South Atlantic		44	%		80	%	Retail		59	%		20	%
Pacific		29			0		Office		41			80
Middle Atlantic		12			0
W. North Central		10			0
Mountain		5			20

At December 31, 2011, the Company had ownership interest in five LIHTC investments. The remaining years of unexpired tax credits ranged from four to ten and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from four to fifteen years. The amount of contingent equity commitments expected to be paid during the year 2012 is $384. The Company has no contingent equity commitments related to LIHTC beyond the year 2012. There were no impairment losses, write-downs or reclassifications during 2011 related to these credits.

40

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2010, the Company had ownership interest in five LIHTC investments. The remaining years of unexpired tax credits ranged from one to eleven and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from five to sixteen years. The amount of contingent equity commitments expected to be paid during the years 2011 to 2012 is $1,024. The Company has no contingent equity commitments related to LIHTC beyond the year 2012. There were no impairment losses, write-downs or reclassifications during 2010 related to these credits.

The following tables provide the carrying value of state transferable tax credits gross of any related tax liabilities and total unused transferable tax credits by state and in total as of December 31, 2011 and 2010:

			December 31, 2011
Description of State Transferable Tax Credits	State		Carrying Value		Unused Amount*
Low-Income Housing Tax Credits		MA	$	676	$	1,005
Total			$	676	$	1,005

			December 31, 2010
Description of State Transferable Tax Credits	State		Carrying Value		Unused Amount
Low-Income Housing Tax Credits		MA	$	751	$	1,223
Low-Income Housing Tax Credits		MO		268		302
Total			$	1,019	$	1,525

* The unused amount reflects credits that the Company deems will be realizable in the period from 2012 to 2015.

The Company estimated the utilization of the remaining state transferable tax credits by projecting a future tax liability based on projected premium, tax rates and tax credits and comparing the projected future tax liability to the availability of remaining state transferable tax credits. The Company had no impairment losses related to state transferable tax credits.

The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Company’s behalf. The posted amount is equal to the difference between the net positive fair value of the contracts and an agreed upon threshold that is based on the credit rating of the counterparty. Inversely, if the net fair value of all contracts with this counterparty is negative, the Company is required to post assets instead. At December 31, 2011, the Company does not have any contracts, aggregated at a counterparty level, with a positive fair value. At December 31,

41

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

2011, the fair value of all contracts, aggregated at a counterparty level, with a negative fair value amount to $511.

At December 31, 2011 and 2010, respectively, the Company has recorded $(511) and $(971) for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized loss.

The Company did not recognize any unrealized gains or losses during 2011 or 2010 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

At December 31, 2011 and 2010, respectively, the Company had outstanding receive fixed—pay fixed swaps with a notional amount of $2 and $4.

Under exchange traded futures and options, the Company agrees to purchase a specified number of contracts from other parties and to post a variation margin on a daily basis in an amount equal to the difference in the daily fair values of those contracts. The parties with whom the Company enters into exchange traded futures and options are regulated futures commissions merchants who are members of a trading exchange. The Company recognized net realized losses from futures contracts in the amount of $13,203, $9,000 and $22,205 for the years ended December 31, 2011, 2010 and 2009, respectively.

Open futures contracts at December 31, 2011 and 2010, are as follows:

Long/Short	Number of Contracts			Contract Type	Opening Fair Value			Year-End Fair Value
December 31, 2011
				DJ EURO STOXX
Long		189		March 2012 Futures	$	5,589		$	5,653
				HANG SENG IDX
Long		25		January 2012 Futures		2,992			2,970
				S&P 500
Short		(124	)	March 2012 Futures		(38,343	)		(38,830	)

42

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Long/Short	Number of Contracts	Contract Type	Opening Fair Value			Year-End Fair Value
December 31, 2010
		DJ EURO STOXX
Long	72	March 2011 Futures	$	2,710		$	2,668
		HANG SENG IDX
Long	11	January 2011 Futures		1,625			1,634
		S&P 500
Short	(56)	March 2011 Futures		(17,293	)		(17,542	)

4. Reinsurance

The Company reinsures portions of certain insurance policies which exceed its established limits, thereby providing a greater diversification of the risk and minimizing exposure on larger risks. The Company remains contingently liable with respect to any insurance ceded, and this would become an actual liability in the event that the assuming insurance company became unable to meet its obligations under the reinsurance treaty.

Premiums earned reflect the following reinsurance amounts:

	Year Ended December 31
	2011			2010			2009
Direct premiums	$	670,285		$	653,122		$	769,801
Reinsurance assumed - affiliated		763			3,307			3,557
Reinsurance ceded - affiliated		(143,983	)		(83,664	)		(71,735	)
Reinsurance ceded - non-affiliated		(46,466	)		(46,756	)		(45,372	)
Net premiums earned	$	480,599		$	526,009		$	656,251

The Company received reinsurance recoveries in the amount of $129,708, $76,107 and $69,659 during 2011, 2010 and 2009, respectively. At December 31, 2011 and 2010, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $23,144 and $18,652, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2011 and 2010 of $624,949 and $332,318, respectively. As of December 31, 2011 and 2010, the amount of reserve credits for reinsurance ceded that represented unauthorized affiliated companies were $570,222 and $280,574, respectively.

43

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company would experience no reduction in surplus at December 31, 2011 if all reinsurance agreements were cancelled.

On April 26, 2011, AEGON N.V announced the disposition of its life reinsurance operations, Transamerica Reinsurance to SCOR SE, a Societas Europaea organized under the laws of France (SCOR), which was effective August 9, 2011.

The life reinsurance business conducted by Transamerica Reinsurance was written through several of AEGON N.V.’s U.S. and international affiliates, all of which remain AEGON N.V. affiliates following the closing, except for Transamerica International Reinsurance Ireland, Limited, an Irish reinsurance company (TIRI). In preparation of the divesture of the life reinsurance business to SCOR, during the second quarter of 2011, the Company, as well as other affiliated life insurance companies, recaptured certain business that had been reinsured to TIRI, subsequently ceding the majority of the business recaptured to Transamerica International Re (Bermuda) Ltd. (TIRe), an affiliate. As a result of these transactions, the net impact to the Company was a pre-tax loss of $94,262, which was included in the statement of operations, and a net of tax gain of $63,421 which has been credited directly to unassigned surplus. Additional information surrounding these transactions is outlined below.

Effective April 1, 2011, the Company recaptured the traditional life business that was previously reinsured on a coinsurance funds withheld basis to TIRI, and subsequently reinsured this business to TIRe. The Company paid recapture consideration of $29,300 and released the associated funds withheld liability of $22,729 associated with the recapture, and received an initial ceding commission of $27,400 and established a funds withheld liability of $23,061 on the new cession to TIRe. Life, claim reserves and other assets associated with this block that were exchanged were $86,197, $9,563 and $2,344, respectively. The Company released into income a previously deferred unamortized gain resulting from the original cession of this business to TIRI in the amount of $175 ($120 net of tax) resulting in a pre-tax loss of $99,812 on the recapture which has been included in the statement of operations. The cession to TIRe resulted in a net of tax gain of $63,541, which has been credited directly to unassigned surplus.

Effective April 1, 2011, TIRI, recaptured the BOLI/COLI catastrophic mortality risk that had previously been retro-ceded to the Company. The Company released life and claim reserves of $5,507 and $43, respectively, with no consideration exchanged, resulting in a pre-tax gain of $5,550 which has been included in the statement of operations.

Effective December 31, 2010, the Company entered into a reinsurance agreement with an affiliate to cede on a 100% quota share basis a block of variable universal life business on a modified coinsurance basis. Reserves on the block were $1,013,110, with assets backing the block comprised of $853,669 of separate account assets and $159,441 of general account assets. The Company received consideration of $193,000, resulting in a pre-tax gain of $193,000, which was credited directly to unassigned surplus on a net of

44

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

tax basis in the amount of $125,450. During 2011, the Company amortized $21,792 of this gain into earnings on a net of tax basis.

During 2011, the Company did not amortize any deferred gains from reinsurance transactions occurring prior to 2009. During 2010 and 2009, the Company amortized deferred gains from reinsurance transactions occurring prior to 2009 of $24 and $8,331, for each respective year, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

Letters of credit held for all unauthorized reinsurers as of December 31, 2011 and 2010 were $273,000 and $107,200, respectively.

5. Income Taxes

The net deferred income tax asset at December 31, 2011 and 2010 and the change from the prior year are comprised of the following components:

	December 31, 2011
	Ordinary		Capital		Total
Gross Deferred Tax Assets	$	216,717	$	6,826	$	223,543
Statutory Valuation Allowance Adjustment		—		—		—
Adjusted Gross Deferred Tax Assets		216,717		6,826		223,543
Deferred Tax Liabilities		9,744		1,360		11,104
Subtotal (Net Deferred Tax Assets)		206,973		5,466		212,439
Deferred Tax Assets Nonadmitted		87,096		800		87,896
Net Admitted Deferred Tax Assets	$	119,877	$	4,666	$	124,543

	December 31, 2010
	Ordinary		Capital		Total
Gross Deferred Tax Assets	$	210,291	$	6,740	$	217,031
Statutory Valuation Allowance Adjustment		—		—		—
Adjusted Gross Deferred Tax Assets		210,291		6,740		217,031
Deferred Tax Liabilities		22,478		712		23,190
Subtotal (Net Deferred Tax Assets)		187,813		6,028		193,841
Deferred Tax Assets Nonadmitted		70,717		1,420		72,137
Net Admitted Deferred Tax Assets	$	117,096	$	4,608	$	121,704

45

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

				Change
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	6,426		$	86		$	6,512
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		6,426			86			6,512
Deferred Tax Liabilities		(12,734	)		648			(12,086	)
Subtotal (Net Deferred Tax Assets)		19,160			(562	)		18,598
Deferred Tax Assets Nonadmitted		16,379			(620	)		15,759
Net Admitted Deferred Tax Assets	$	2,781		$	58		$	2,839

The main components of deferred income tax amounts are as follows:

	Year Ended December 31
	2011		2010		Change
Ordinary
Policyholder reserves	$	114,035	$	109,134	$	4,901
Investments		179		349		(170	)
Deferred acquisition costs		89,237		90,529		(1,292	)
Compensation and benefits accrual		1,059		1,039		20
Receivables - nonadmitted		10,608		5,399		5,209
Corporate provision		399		—		399
Other (including items <5% of ordinary tax assets)		1,200		3,841		(2,641	)
Subtotal		216,717		210,291		6,426
Statutory valuation allowance adjustment		—		—		—
Nonadmitted		87,096		70,717		16,379
Admitted ordinary deferred tax assets		129,621		139,574		(9,953	)
Capital:
Investments		6,826		6,740		86
Other (including items <5% of total total capital tax assets)		—		—		—
Subtotal		6,826		6,740		86
Statutory valuation allowance adjustment		—		—		—
Nonadmitted		800		1,420		(620	)
Admitted capital deferred tax assets		6,026		5,320		706
Admitted deferred tax assets	$	135,647	$	144,894	$	(9,247	)

46

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2011		2010		Change
Deferred Tax Liabilities:
Ordinary
Investments	$	275	$	1	$	274
§807(f) adjustment		9,462		22,475		(13,013	)
Other (including items <5% of total ordinary tax liabilities)		7		2		5
Subtotal		9,744		22,478		(12,734	)
Capital
Investments		1,360		712		648
Other (including items <5% of total capital tax liabilities)		—		—		—
Subtotal		1,360		712		648
Deferred tax liabilities		11,104		23,190		(12,086	)
Net deferred tax assets/liabilities	$	124,543	$	121,704	$	2,839

The Company did not record a valuation allowance for deferred tax assets as of December 31, 2011 or 2010.

47

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

As discussed in Note 1, the Company has elected to admit deferred tax assets pursuant to SSAP No. 10R, paragraph 10.e. for the 2011 and 2010 reporting periods. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 10R is as follows:

	December 31, 2011
	Ordinary		Capital		Total
Admission Calculation Components
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.:
SSAP No. 10R, Paragraph 10.a.	$	55,145	$	1,895	$	57,040
SSAP No. 10R, Paragraph 10.b.
(the lesser of paragraph 10.b.i. and 10.b.ii. below)		—		—		—
SSAP No. 10R, Paragraph 10.b.i.		—		—		—
SSAP No. 10R, Paragraph 10.b.ii.		16,354		—		16,354
SSAP No. 10R, Paragraph 10.c.		9,744		1,360		11,104
Total	$	64,889	$	3,255	$	68,144
Admission Calculation Components
SSAP No. 10R, Paragraph 10.e.:
SSAP No. 10R, Paragraph 10.e.i.	$	102,606	$	2,283	$	104,889
SSAP No. 10R, Paragraph 10.e.ii.
(the lesser of paragraph 10.e.ii.a and 10.e.ii.b. below)		17,272		2,382		19,654
SSAP No. 10R, Paragraph 10.e.ii.a.		17,272		2,382		19,654
SSAP No. 10R, Paragraph 10.e.ii.b.		21,558		2,973		24,531
SSAP No. 10R, Paragraph 10.e.iii.		9,744		1,360		11,104
Total	$	129,622	$	6,025	$	135,647

48

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31, 2010
	Ordinary		Capital		Total
Admission Calculation Components
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.:
SSAP No. 10R, Paragraph 10.a.	$	49,166	$	2,011	$	51,177
SSAP No. 10R, Paragraph 10.b.
(the lesser of paragraph 10.b.i. and 10.b.ii. below)		1		—		1
SSAP No. 10R, Paragraph 10.b.i.		1		—		1
SSAP No. 10R, Paragraph 10.b.ii.		32,002		1,309		33,311
SSAP No. 10R, Paragraph 10.c.		22,478		712		23,190
Total	$	71,645	$	2,723	$	74,368
Admission Calculation Components
SSAP No. 10R, Paragraph 10.e.:
SSAP No. 10R, Paragraph 10.e.i.	$	117,096	$	2,406	$	119,502
SSAP No. 10R, Paragraph 10.e.ii.
(the lesser of paragraph 10.e.ii.a and 10.e.ii.b. below)		—		2,202		2,202
SSAP No. 10R, Paragraph 10.e.ii.a.		—		2,202		2,202
SSAP No. 10R, Paragraph 10.e.ii.b.		—		49,967		49,967
SSAP No. 10R, Paragraph 10.e.iii.		22,478		712		23,190
Total	$	139,574	$	5,320	$	144,894

49

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

				Change
	Ordinary			Capital			Total
Admission Calculation Components
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.:
SSAP No. 10R, Paragraph 10.a.	$	5,979		$	(116	)	$	5,863
SSAP No. 10R, Paragraph 10.b.
(the lesser of paragraph 10.b.i. and 10.b.ii. below)		(1	)		—			(1	)
SSAP No. 10R, Paragraph 10.b.i.		(1	)		—			(1	)
SSAP No. 10R, Paragraph 10.b.ii.		(15,648	)		(1,309	)		(16,957	)
SSAP No. 10R, Paragraph 10.c.		(12,734	)		648			(12,086	)
Total	$	(6,756	)	$	532		$	(6,224	)
Admission Calculation Components
SSAP No. 10R, Paragraph 10.e.:
SSAP No. 10R, Paragraph 10.e.i.	$	(14,490	)	$	(123	)	$	(14,613	)
SSAP No. 10R, Paragraph 10.e.ii.
(the lesser of paragraph 10.e.ii.a and 10.e.ii.b. below)		17,272			180			17,452
SSAP No. 10R, Paragraph 10.e.ii.a.		17,272			180			17,452
SSAP No. 10R, Paragraph 10.e.ii.b.		21,558			(46,994	)		(25,436	)
SSAP No. 10R, Paragraph 10.e.iii.		(12,734	)		648			(12,086	)
Total	$	(9,952	)	$	705		$	(9,247	)

• 10.a. – Federal income taxes paid in prior year that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year

• 10.b.i. – Adjusted gross DTAs, after the application of 10.a., expected to be realized within one year

• 10.b.ii. – 10% of adjusted statutory capital and surplus as shown on most recently filed statement

• 10.c. – Adjusted gross DTAs, after the application of 10.a. and 10.b., that can be offset against gross DTLs after considering the character of the DTAs and DTLs

• 10.d. – If the reporting entity’s financial statements and risk-based capital (RBC) calculated using an admitted adjusted gross DTA as the sum of 10.a., 10.b. and 10.c. results in the Company’s RBC level being above the maximum RBC level where an action level could occur as a result of the trend test (i.e., 250%); then the Company may elect to admit a higher amount of adjusted gross DTAs as calculated in paragraph 10.e.

• 10.e.i. – Federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a timeframe corresponding with IRS tax loss carryback provisions, not to exceed three years

• 10.e.ii.(a) – Adjusted gross DTAs, after the application of 10.e.i, expected to be realized within three years

• 10.e.ii.(b) – 15% of adjusted statutory capital and surplus as shown on most recently filed statement

• 10.e.iii. – Adjusted gross DTAs, after the application of 10.e.i. and 10.e.ii., that can be offset against DTLs after considering the character of the DTAs and DTLs

50

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Total increased admitted adjusted gross DTAs as the result of the application of paragraph 10.e. SSAP No. 10R:

	December 31, 2011
	Ordinary			Capital		Total
Total increased admitted deferred tax asset	$	64,732		$	2,771	$	67,503
	December 31, 2010
	Ordinary			Capital		Total
Total increased admitted deferred tax asset	$	67,930		$	2,597	$	70,527
	Change
	Ordinary			Capital		Total
Total increased admitted deferred tax asset	$	(3,198	)	$	174	$	(3,024	)

Used in SSAP No. 10R, paragraph 10.d.:

	December 31, 2011
	Ordinary		Capital		Total
Total Adjusted Capital		XXX		XXX	$	216,533
Authorized Control Level		XXX		XXX		37,656
	December 31, 2010
	Ordinary		Capital		Total
Total Adjusted Capital		XXX		XXX	$	449,954
Authorized Control Level		XXX		XXX		43,278
	Change
	Ordinary		Capital		Total
Total Adjusted Capital		XXX		XXX	$	(233,421	)
Authorized Control Level		XXX		XXX		(5,622	)

51

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31, 2011
	Ordinary		Capital		Total
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.:
Admitted Deferred Tax Assets	$	64,889	$	3,255	$	68,144
Admitted Assets		XXX		XXX		8,355,640
Adjusted Statutory Surplus*		XXX		XXX		207,695
Total Adjusted Capital from DTAs		XXX		XXX		216,533
Increases due to SSAP No. 10R, Paragraph 10.e.:
Admitted Deferred Tax Assets	$	64,732	$	2,771	$	67,503
Admitted Assets		64,732		2,771		67,503
Statutory Surplus		64,732		2,771		67,503

	December 31, 2010
	Ordinary		Capital		Total
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.:
Admitted Deferred Tax Assets	$	71,645	$	2,723	$	74,368
Admitted Assets		XXX		XXX		9,427,359
Adjusted Statutory Surplus*		XXX		XXX		440,737
Total Adjusted Capital from DTAs		XXX		XXX		449,954
Increases due to SSAP No. 10R, Paragraph 10.e.:
Admitted Deferred Tax Assets	$	67,930	$	2,597	$	70,527
Admitted Assets		67,930		2,597		70,527
Statutory Surplus		67,930		2,597		70,527

	Change
	Ordinary			Capital		Total
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.:
Admitted Deferred Tax Assets	$	(6,756	)	$	532	$	(6,224	)
Admitted Assets		XXX			XXX		(1,071,719	)
Adjusted Statutory Surplus*		XXX			XXX		(233,042	)
Total Adjusted Capital from DTAs		XXX			XXX		(233,421	)
Increases due to SSAP No. 10R, Paragraph 10.e.:
Admitted Deferred Tax Assets	$	(3,198	)	$	174	$	(3,024	)
Admitted Assets		(3,198	)		174		(3,024	)
Statutory Surplus		(3,198	)		174		(3,024	)

* As reported on the statutory balance sheet for the most recently filed statement with the domiciliary state commissioner adjusted in accordance with SSAP No. 10R, Paragraph 10.b.ii

• XXX denotes breakout between ordinary and capital is not applicable to this information.

52

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The impact of tax planning strategies at December 31, 2011 and 2010 and the change from the prior year was as follows:

	December 31, 2011
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs (% of Total Adjusted Gross DTAs)		0	%		3	%		3	%
Net Admitted Adjusted Gross DTAs (% of Total Net Admitted Adjusted Gross DTAs)		0	%		6	%		6	%

	December 31, 2010
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs (% of Total Adjusted Gross DTAs)		0	%		1	%		1	%
Net Admitted Adjusted Gross DTAs (% of Total Net Admitted Adjusted Gross DTAs)		0	%		2	%		2	%

	Change
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs (% of Total Adjusted Gross DTAs)		0	%		2	%		2	%
Net Admitted Adjusted Gross DTAs (% of Total Net Admitted Adjusted Gross DTAs)		0	%		4	%		4	%

Current year income taxes incurred consist of the following major components:

	Year Ended December 31
	2011			2010		Change
Current Income Tax
Federal	$	9,379		$	104,800	$	(95,421	)
Foreign		—			—		—
Subtotal		9,379			104,800		(95,421	)
Federal income tax on net capital gains		(402	)		248		(650	)
Federal and foreign income taxes incurred	$	8,977		$	105,048	$	(96,071	)

53

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate of 35% to income before tax as follows:

	Year Ended December 31
	2011			2010			2009
Current income taxes incurred	$	8,977		$	105,048		$	41,238
Change in deferred income taxes (without tax on unrealized gains and losses)		(18,337	)		5,233			(4,611	)
Total income tax reported	$	(9,360	)	$	110,281		$	36,627
Income before taxes	$	(2,209	)	$	230,047		$	163,103
		35.00	%		35.00	%		35.00	%
Expected income tax expense (benefit) at 35% statutory rate	$	(773	)	$	80,516		$	57,086
Increase (decrease) in actual tax reported resulting from:
Dividends received deduction		(13,603	)		(10,290	)		(7,455	)
Tax credits		(1,817	)		(3,603	)		(4,157	)
Tax adjustment for IMR		(464	)		(234	)		29
Surplus adjustment for in force ceded		14,570			43,899			(2,916	)
Nondeductible expenses		53			22			40
Deferred tax benefit on other items in surplus		(5,245	)		7,037			(6,504	)
Provision to return		(498	)		(2,806	)		(3,380	)
Life-owned life insurance		(798	)		(829	)		(866	)
Dividends from certain foreign corporations		165			175			349
Statutory valuation allowance		—			—			4,817
Prior period adjustment		(810	)		380			(412	)
Other		(140	)		(3,986	)		(4	)
Total income tax reported	$	(9,360	)	$	110,281		$	36,627

The Company did not record a valuation allowance for deferred tax assets as of December 31, 2011 and 2010. The valuation allowance is primarily related to deferred tax assets of a capital character that in the judgment of management, are not more likely than not to be realized.

For federal income tax purposes, the Company joins in a consolidated income tax return filing with its indirect parent company, Transamerica Corporation, and other affiliated companies. The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not yet been filed for 2011.

54

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

As of December 31, 2011 and 2010, the Company had no operating loss, capital loss or tax credit carryforwards available for tax purposes.

The Company incurred income taxes during 2011, 2010 and 2009 of $10,274 and $112,498 and $39,561 respectively, which will be available for recoupment in the event of future net losses.

The amount of tax contingencies calculated for the Company as of December 31, 2011 and 2010 is $434 and $2,144, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $434. The Company classifies interest and penalties related to income taxes as interest expense and penalty expense, respectively. The Company’s interest expense related to income taxes for the years ending December 31, 2011, 2010 and 2009 is $107, $87 and $61, respectively. The total interest payable balance as of December 31, 2011 and 2010 is $77 and $184, respectively. The Company recorded no liability for penalties. It is not anticipated that the total amounts of unrecognized tax benefits will significantly increase within twelve months of the reporting date.

The Company’s federal income tax returns have been examined by the Internal Revenue Service and closing agreements have been executed through 2004. The examination for the years 2005 through 2006 have been completed and resulted in tax return adjustments that are currently undergoing final calculation at appeal. The examination for the years 2007 through 2008 has been completed and resulted in tax return adjustments that are currently being appealed. An examination is already in progress for the years 2009 and 2010. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.

6. Policy and Contract Attributes

A portion of the Company’s policy reserves and other policyholders’ funds relate to liabilities established on a variety of the Company’s products, primarily separate accounts that are not subject to significant mortality or morbidity risk; however, there may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on these products, by withdrawal characteristics, is summarized as follows:

55

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31,2011
	General Account		Separate Account Non-Guaranteed		Total		Percent
Subject to discretionary withdrawal
With fair value adjustment	$	18,415	$	—	$	18,415		0	%
At book value less surrender charge of 5% or more		37,408		—		37,408		1
At fair value		8,955		3,422,864		3,431,819		78
Total with adjustment or at fair value		64,778		3,422,864		3,487,642		79
At book value without adjustment (minimal or no charge or adjustment)		383,129		—		383,129		9
Not subject to discretionary withdrawal		516,822		10,810		527,632		12
Total annuity reserves and deposit liabilities		964,729		3,433,674		4,398,403		100	%
Less reinsurance ceded		403,846		—		403,846
Net annuity reserves and deposit liabilities	$	560,883	$	3,433,674	$	3,944,557

56

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31, 2010
	Amount		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	21,285		1	%
At book value less surrender charge of 5% or more		60,956		1
At fair value		4,016,490		85
Total with adjustment or at fair value		4,098,731		87
At book value without adjustment (minimal or no charge or adjustment)		407,630		9
Not subject to discretionary withdrawal		212,052		4
Total annuity reserves and deposit liabilities		4,718,413		100	%
Less reinsurance ceded		168,327
Net annuity reserves and deposit liabilities	$	4,550,086

57

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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

	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonindexed Guaranteed More Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2011	$	—	$	—	$	—	$	349,011	$	349,011
Reserves for accounts with assets at fair value at December 31, 2011	$	—	$	—	$	—	$	6,130,295	$	6,130,295
Reserves for separate accounts by withdrawal characteristics at December 31, 2011:
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	—	$	—	$	—	$	—
At book value without fair value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		6,119,486		6,119,486
At book value without fair value adjustment and with current surrender charge of less than 5%		—		—		—		—		—
Subtotal		—		—		—		6,119,486		6,119,486
Not subject to discretionary withdrawal		—		—		—		10,809		10,809
Total separate account liabilities at December 31, 2011	$	—	$	—	$	—	$	6,130,295	$	6,130,295

58

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonindexed Guaranteed More Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2010	$	—	$	—	$	—	$	378,162	$	378,162
Reserves for accounts with assets at fair value at December 31, 2010	$	—	$	—	$	—	$	6,897,592	$	6,897,592
Reserves for separate accounts by withdrawal characteristics at December 31, 2010:
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	—	$	—	$	—	$	—
At book value without fair value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		6,895,152		6,895,152
At book value without fair value adjustment and with current surrender charge of less than 5%		—		—		—		—		—
Subtotal		—		—		—		6,895,152		6,895,152
Not subject to discretionary withdrawal		—		—		—		2,440		2,440
Total separate account liabilities at December 31, 2010	$	—	$	—	$	—	$	6,897,592	$	6,897,592

59

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonindexed Guaranteed More Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2009	$	—	$	—	$	—	$	455,704	$	455,704
Reserves for accounts with assets at fair value at December 31, 2009	$	—	$	—	$	—	$	6,546,186	$	6,546,186
Reserves for separate accounts by withdrawal characteristics at December 31, 2009:
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	—	$	—	$	—	$	—
At book value without fair value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		6,546,186		6,546,186
At book value without fair value adjustment and with current surrender charge of less than 5%		—		—		—		—		—
Subtotal		—		—		—		6,546,186		6,546,186
Not subject to discretionary withdrawal		—		—		—		—		—
Total separate account liabilities at December 31, 2009	$	—	$	—	$	—	$	6,546,186	$	6,546,186

60

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

A reconciliation of the amounts transferred to and from the separate accounts is presented below:

	Year Ended December 31
	2011			2010			2009
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	349,322		$	378,310		$	456,377
Transfers from separate accounts		604,330			619,378			579,406
Net transfers from separate accounts		(255,008	)		(241,068	)		(123,029	)
Miscellaneous reconciling adjustments		(3,659	)		(6,730	)		(14,937	)
Net transfers as reported in the statement of operations of the Company	$	(258,667	)	$	(247,798	)	$	(137,966	)

The legal insulation of separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account. At December 31, 2011 and 2010, the Company’s separate account statement included legally insulated assets of $6,517,738 and $7,401,665, respectively. The assets legally insulated from general account claims at December 31, 2011 are attributed to the following products:

Product	2011		2010
Variable annuities	$	3,459,146	$	4,041,477
Variable universal life		453,301		439,535
WRL asset accumulator		27,187		41,341
Variable life		2,578,104		2,879,312
Total separate account assets	$	6,517,738	$	7,401,665

Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. As of December 31, 2011 and 2010, the general account of the Company had a maximum guarantee for separate account liabilities of $777,659 and $667,392, respectively. To compensate the general account for the risk taken, the separate account paid risk charges of $11,446 and $12,187 to the general account in 2011 and 2010, respectively. As of December 31, 2011 and 2010, the general account of the Company had paid $12,975 and $20,835, respectively toward separate account guarantees.

The Company does not participate in securities lending transactions within the separate account.

61

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Effective December 31, 2009, the Company adopted Actuarial Guideline XLIII (AG 43) which replaces Actuarial Guidelines 34 and 39. AG 43 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The AG 43 reserve calculation includes variable annuity products issued after January 1, 1981. Examples of covered guaranteed benefits include guaranteed minimum accumulation benefits, return of premium death benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The aggregate reserve for contracts falling within the scope of AG 43 is equal to the conditional tail expectation (CTE) Amount, but not less than the standard scenario amount (SSA). The Company reported a decrease in reserves and an increase in net income of $11,412 at December 31, 2009, related to the adoption of AG 43 and changes in the underlying assumptions.

To determine the CTE Amount, the Company used 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) produced in October 2005 and prudent estimate assumptions based on Company experience. The SSA was determined using the assumptions and methodology prescribed in AG 43 for determining the SSA.

At December 31, 2011 and 2010, the Company had variable and separate account annuities with minimum guaranteed benefits as follows:

Benefit and Type of Risk	Subjected Account Value		Amount of Reserve Held		Reinsurance Reserve Credit
December 31, 2011
Minimum guaranteed death benefit	$	2,038,959	$	127,506	$	81,247
Minimum guaranteed income benefit		926,410		361,297		318,890
Minimum guaranteed withdrawal benefit		818,766		10,641		—
December 31, 2010
Minimum guaranteed death benefit	$	2,310,748	$	52,774	$	37,046
Minimum guaranteed income benefit		1,066,021		139,552		126,989
Minimum guaranteed withdrawal benefit		953,975		—		—

62

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Reserves on the Company’s traditional life insurance products are computed using mean reserving methodologies. These methodologies result in the establishment of assets for the amount of the net valuation premiums that are anticipated to be received between the policy’s paid-through date to the policy’s next anniversary date. At December 31, 2011 and 2010, the gross premium and loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:

	Gross		Loading		Net
December 31, 2011
Ordinary direct renewal business	$	2,010	$	1,049	$	3,059
Ordinary new business		2		—		2
	$	2,012	$	1,049	$	3,061
December 31, 2010
Ordinary direct renewal business	$	2,181	$	1,060	$	3,241
Ordinary new business		2		—		2
	$	2,183	$	1,060	$	3,243

At December 31, 2011 and 2010, the Company had insurance in force aggregating $3,678,555 and $4,531,669 respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the Ohio Department of Insurance. The Company established policy reserves of $23,412 and $25,534 to cover these deficiencies at December 31, 2011 and 2010, respectively.

The Company anticipates investment income as a factor in the premium deficiency calculation, in accordance with SSAP No. 54, Individual and Group Accident and Health Contracts.

7. Capital and Surplus

The Company is subject to limitations, imposed by the Ohio Department of Insurance, on the payment of dividends to its parent company, AEGON. Generally, dividends during any twelve month period may not be paid, without prior regulatory approval, in excess of the greater of (a) 10 percent of statutory surplus as of the preceding December 31, or (b) net income for the preceding year. Subject to the availability of unassigned surplus at the time of such dividend, the maximum payment which may be made in 2012, without the prior approval of insurance regulatory authorities, is $27,520.

On May 16, 2011, the Company paid common stock dividends of $250,000 to its parent company, AEGON. The amount consisted of $23,100 ordinary cash dividend and $226,900 extraordinary cash dividend. The Company received dividends of $11,165 and $7,502 from its subsidiaries, Transamerica Asset Management, Inc. and Transamerica Fund Services, Inc., respectively, during 2011. The Company made a capital contribution of $597 to Transamerica Asset Management, Inc. during 2011.

63

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

On December 23, 2010, the Company paid a common stock dividend of $100,000 to its parent company. The entire amount was considered an extraordinary dividend. On December 30, 2009, the Company paid a common stock dividend of $65,000 to its parent company. Of this amount, $23,400 was considered an ordinary dividend and $41,600 was considered an extraordinary dividend. The Company received approval from the Ohio Department of Insurance to make these dividend payments.

Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life or health insurance company is to be determined based on the various risk factors related to it. At December 31, 2011, the Company meets the minimum RBC requirements.

8. Securities Lending

The Company participates in an agent-managed securities lending program. The Company receives collateral equal to 102% of the fair value of the loaned government/other domestic securities as of the transaction date. If the fair value of the collateral is at any time less than 102% of the fair value of the loaned securities, the counterparty is mandated to deliver additional collateral, the fair value of which, together with the collateral already held in connection with the lending transaction, is at least equal to 102% of the fair value of the loaned government/other domestic securities. In the event the Company loans a foreign security and the denomination of the currency of the collateral is other than the denomination of the currency of the loaned foreign security, the Company receives and maintains collateral equal to 105% of the fair value of the loaned security.

At December 31, 2011 and 2010, respectively, securities in the amount of $86,663 and $187,773 were on loan under securities lending agreements. The collateral the Company received from securities lending was in the form of cash and on open terms. This cash collateral is reinvested and is not available for general corporate purposes. The reinvested cash collateral had a fair value of $89,423 and $193,683 at December 31, 2011 and 2010, respectively.

64

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
Open	$	89,589
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Total		89,589
Securities received		—
Total collateral received	$	89,589

The maturity dates of the reinvested securities lending collateral are as follows:

	Amortized Cost		Fair Value
Open	$	6,933	$	6,933
30 days or less		51,877		51,869
31 to 60 days		8,448		8,447
61 to 90 days		16,180		16,147
91 to 120 days		—		—
121 to 180 days		2,000		2,000
181 to 365 days		3,187		3,154
1 to 2 years		999		873
2-3 years		—		—
Greater than 3 years		—		—
Total		89,624		89,423
Securities received		—		—
Total collateral reinvested	$	89,624	$	89,423

For securities lending, the Company’s sources of cash that it uses to return the cash collateral is dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $89,630 (fair value of $89,423) that are currently tradable securities that could be sold and used to pay for the $89,589 in collateral calls that could come due under a worst-case scenario.

65

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

9. Retirement and Compensation Plans

The Company’s employees participate in a qualified defined benefit plan sponsored by AEGON. The Company has no legal obligation for the plan. The Company recognizes pension expense equal to its allocation from AEGON. The pension expense is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits and based upon actuarial participant benefit calculations. The benefits are based on years of service and the employee’s eligible annual compensation during the highest five consecutive years of employment. Pension expenses were $1,255, $1,442 and $1,518 for the years ended December 31, 2011, 2010 and 2009, respectively. The plan is subject to the reporting and disclosure requirements of the Employee Retirement and Income Security Act of 1974.

The Company’s employees also participate in a defined contribution plan sponsored by AEGON which is qualified under Section 401(k) of the Internal Revenue Service Code. Employees of the Company who customarily work at least 1,000 hours during each calendar year and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to twenty-five percent of their salary to the plan. The Company will match an amount up to three percent of the participant’s salary. Participants may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement and Income Security Act of 1974. Expense related to this plan was $532, $702 and $736 for the years ended December 31, 2011, 2010 and 2009, respectively.

AEGON sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The plans are noncontributory and benefits are based on years of service and the employee’s compensation level. The plans are unfunded and nonqualified under the Internal Revenue Code. In addition, AEGON has established incentive deferred compensation plans for certain key employees of the Company. The Company’s allocation of expense for these plans for 2011, 2010 and 2009 was insignificant. AEGON also sponsors an employee stock option plan/stock appreciation rights for employees of the Company and a stock purchase plan for its producers, with the participating affiliated companies establishing their own eligibility criteria, producer contribution limits and company matching formula. These plans have been funded as deemed appropriate by management of AEGON and the Company.

In addition to pension benefits, the Company participates in plans sponsored by AEGON that provide postretirement medical, dental and life insurance benefits to employees meeting certain eligibility requirements. Portions of the medical and dental plans are contributory. The postretirement plan expenses are charged to affiliates in accordance

66

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

with an intercompany cost sharing arrangement. The Company expensed $210, $192 and $201 for the years ended 2011, 2010 and 2009, respectively.

10. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

The Company is party to a Cost Sharing agreement between AEGON companies, providing for needed services. The Company is also party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors, Inc. whereby the Advisor serves as the administrator and advisor for the Company’s mortgage loan operations by administering the day-to-day real estate and mortgage loan operations of the Company. AEGON USA Investment Management, LLC acts as a discretionary investment manager under an Investment Management Agreement with the Company. The Company provides office space, marketing and administrative services to certain affiliates. The net amount received by the Company as a result of being a party to these agreements was $33,717, $18,600 and $13,174 during 2011, 2010 and 2009, respectively. The Company has an administration service agreement with Transamerica Asset Management, Inc. to provide administrative services to the AEGON/Transamerica Series Trust. The Company received $24,411, $23,672 and $21,446 from this agreement during 2011, 2010 and 2009, respectively.

Receivables from and payables to affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. At December 31, 2011, and 2010, the Company reported a net amount of $24,665 and $7,123, respectively, due to affiliates. Terms of settlement require that these amounts are settled within 90 days. During 2011, 2010 and 2009, the Company paid net interest of $39, $38 and $132, respectively, to affiliates.

At December 31, 2009 the Company had a short-term intercompany note receivable of $27,000 from AEGON due by September 29, 2010 at .25% interest. In accordance with SSAP No. 25, Accounting for and Disclosures about Transactions with Affiliates and Other Related Parties, this note was reported on the balance sheet as a short-term investment. The note was repaid prior to its due date.

In prior years, the Company purchased life insurance policies covering the lives of certain employees of the Company from an affiliate. At December 31, 2011 and 2010, the cash surrender value of these policies was $73,446 and $71,167, respectively.

11. Commitments and Contingencies

The Company is a party to legal proceedings involving a variety of issues incidental to its business. Lawsuits may be brought in nearly any federal or state court in the United

67

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are subject to many variables, and given its complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, it is management’s opinion that damages arising from such demands will not be material to the Company’s financial position or results of operations.

The Company is subject to insurance guaranty laws in the states in which it writes business. These laws provide for assessments against insurance companies for the benefit of policyholders and claimants in the event of insolvency of other insurance companies. Assessments are charged to operations when received by the Company except where right of offset against other taxes paid is allowed by law. Amounts available for future offsets are recorded as an asset on the Company’s balance sheet. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Association. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of $1,664 and $3,448 with no offsetting premium tax benefit at December 31, 2011 and 2010, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund expense was $(1,824), $95 and $58 for 2011, 2010 and 2009, respectively.

The Company has contingent commitments for $392 and $1,151 as of December 31, 2011 and 2010, respectively, to provide additional funding for various joint ventures, partnerships and limited liability companies, which includes LIHTC commitments of $384 and $1,024, respectively.

The Company is required by the Commodity Futures Trading Commission (CFTC) to maintain assets on deposit with brokers for futures trading activity done on behalf of the Company. The broker has a secured interest with priority in the pledged assets, however, the Company has the right to recall and substitute the pledged assets. At December 31, 2011 and 2010, respectively, the Company pledged assets in the amount of $17,084 and $16,342 to satisfy the requirements of futures trading accounts.

12. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

As of December 31, 2011, the Company had dollar repurchase agreements outstanding in the amount of $4,977. The Company did not participate in dollar repurchase agreements at December 31, 2010. The collateral the Company received from dollar repurchase agreements was in the form of cash and on open terms.

68

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

13. Subsequent Events

The financial statements are adjusted to reflect events that occurred between the balance sheet date and the date when the financial statements are available to be issued, April 3, 2012, provided they give evidence of conditions that existed at the balance sheet date (Type I). Events that are indicative of conditions that arose after the balance sheet date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). As of April 3, 2012, the Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2011.

69

Statutory-Basis Financial

Statement Schedules

70

Western Reserve Life Assurance Co. of Ohio

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2011

Schedule I

Type of Investment	Cost (1)		Fair Value		Amount at Which Shown in the Balance Sheet
Fixed maturities
Bonds:
United States government and government agencies and authorities	$	99,000	$	107,189	$	99,000
States, municipalities and political subdivisions		27,283		28,840		27,283
Foreign governments		10,299		10,474		10,299
Hybrid securities		17,325		15,225		17,325
All other corporate bonds		734,644		770,199		734,644
Total fixed maturities		888,551		931,927		888,551
Mortgage loans on real estate		49,646				49,646
Real estate		36,015				36,015
Cash, cash equivalents and short-term investments		170,354				170,354
Policy loans		406,037				406,037
Securities lending reinvested collateral assets		89,624				89,624
Receivable for securities		5,216				5,216
Other invested assets		3,474				3,474
Total investments	$	1,648,917			$	1,648,917

(1) Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accruals of discounts.

71

Western Reserve Life Assurance Co. of Ohio

Supplementary Insurance Information

(Dollars in Thousands)

Schedule III

	Future Policy Benefits and Expenses		Policy and Contract Liabilities		Premium Revenue		Net Investment Income*		Benefits, Claims, Losses and Settlement Expenses		Other Operating Expenses*
Year ended December 31, 2011
Individual life	$	1,182,368	$	27,384	$	447,724	$	54,583	$	248,384	$	428,545
Group life and health		24,599		313		10,631		1,016		8,035		7,554
Annuity		540,352		1,617		22,244		24,432		537,613		(418,643	)
	$	1,747,319	$	29,314	$	480,599	$	80,031	$	794,032	$	17,456
Year ended December 31, 2010
Individual life	$	1,121,254	$	17,912	$	480,607	$	42,619	$	298,390	$	410,754
Group life and health		19,215		104		5,123		701		3,173		4,847
Annuity		521,268		561		40,279		21,167		463,959		(413,730	)
	$	1,661,737	$	18,577	$	526,009	$	64,487	$	765,522	$	1,871
Year ended December 31, 2009
Individual life	$	1,091,121	$	18,403	$	502,238	$	30,963	$	282,952	$	430,307
Group life		17,641		513		2,585		474		2,865		3,752
Annuity		608,644		1,082		151,428		16,934		506,798		(316,750	)
	$	1,717,406	$	19,998	$	656,251	$	48,371	$	792,615	$	117,309

* Allocations of net investment income and other operating expenses are based on a number of assumptions and estimates, and the results would change if different methods were applied.

72

Western Reserve Life Assurance Co. of Ohio

Reinsurance

(Dollars in Thousands)

Schedule IV

	Gross Amount		Ceded to Other Companies		Assumed From Other Companies		Net Amount		Percentage of Amount Assumed to Net
Year ended December 31, 2011
Life insurance in force	$	115,294,179	$	64,174,427		—	$	51,119,752		0	%
Premiums:
Individual life	$	612,636	$	165,675	$	763	$	447,724		0	%
Group life and health		23,890		13,259		—		10,631		0	%
Annuity		33,760		11,516		—		22,244		0	%
	$	670,286	$	190,450	$	763	$	480,599		0	%
Year ended December 31, 2010
Life insurance in force	$	108,965,895	$	63,468,227	$	16,201,258	$	61,698,926		26	%
Premiums:
Individual life	$	577,919	$	100,619	$	3,307	$	480,607		1	%
Group life		16,834		11,711		—		5,123		0	%
Annuity		58,368		18,089		—		40,279		0	%
	$	653,121	$	130,419	$	3,307	$	526,009		1	%
Year ended December 31, 2009
Life insurance in force	$	105,354,990	$	54,257,827	$	16,526,779	$	67,623,942		24	%
Premiums:
Individual life	$	586,466	$	87,785	$	3,557	$	502,238		1	%
Group life		14,786		12,201		—		2,585		0	%
Annuity		168,549		17,121		—		151,428		0	%
	$	769,801	$	117,107	$	3,557	$	656,251		1	%

73

FINANCIAL STATEMENTS

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Year Ended December 31, 2011

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Financial Statements

Year Ended December 31, 2011

Contents

Report of Independent Registered Public Accounting Firm	1
Financial Statements
Statements of Assets and Liabilities	2
Statements of Operations and Changes in Net Assets	36
Notes to Financial Statements	53

Report of Independent Registered Public Accounting Firm

The Board of Directors and Contract Owners

Separate Account VA U

Western Reserve Life Assurance Co. of Ohio

We have audited the accompanying statements of assets and liabilities of the subaccounts of Western Reserve Life Assurance Co. of Ohio Separate Account VA U (the Separate Account) (comprised of the TA JPMorgan Core Bond, TA Asset Allocation - Conservative, TA Asset Allocation - Growth, TA Asset Allocation - Moderate, TA Asset Allocation - Moderate Growth, TA International Moderate Growth, TA Clarion Global Real Estate Sec, TA JPMorgan Tactical Allocation, TA JPMorgan Enhanced Index, TA BlackRock Large Cap Value, TA AEGON High Yield Bond, TA MFS International Equity, TA PIMCO Total Return, TA Morgan Stanley Capital Growth, TA T.Rowe Price Small Cap, TA Third Avenue Value, TA Multi-Managed Balanced, TA AllianceBernstein Dynamic Allocation, TA WMC Diversified Growth, TA AEGON Money Market, TA Systematic Small/Mid Cap Value, TA AEGON U.S. Government Securities - PAM Fund, TA AEGON U.S. Government Securities, TA Morgan Stanley Mid-Cap Growth, TA Vanguard ETF Index-Balanced, TA Vanguard ETF Index - Growth, TA Efficient Markets, TA Janus Balanced, TA Hanlon Growth, TA Hanlon Growth and Income, TA Hanlon Balanced, TA Hanlon Income, TA Vanguard ETF Index - Conservative, TA Vanguard ETF Index - Aggressive Growth, TA Jennison Growth, TA AEGON Tactical Vanguard ETF-Growth, TA AEGON Tactical Vanguard ETF-Conservative, Fidelity - VIP Index 500, ProFund VP Bull, ProFund VP Money Market, ProFund VP NASDAQ-100, ProFund VP Short Small-Cap, ProFund VP Small-Cap, ProFund VP Japan, ProFund VP UltraSmall-Cap, ProFund VP Basic Materials, ProFund VP Pharmaceuticals, ProFund VP Telecommunications, ProFund VP Asia 30, ProFund VP Oil & Gas, ProFund VP U.S. Government Plus, ProFund VP Consumer Services, ProFund VP Precious Metals, ProFund VP Europe 30, ProFund VP Short NASDAQ-100, ProFund VP Utilities, ProFund VP Financials, ProFund VP Small-Cap Value, ProFund VP Mid-Cap, ProFund VP Short Emerging Markets, ProFund VP Falling U.S. Dollar, ProFund VP International, ProFund VP Emerging Markets, ProFund VP Short International, Access VP High Yield, AllianceBernstein Balanced Wealth Strategy, and Franklin Templeton VIP Founding Funds Allocation subaccounts), at December 31, 2011, and the related statements of operations and changes in net assets for the periods indicated thereon. These financial statements are the responsibility of the Separate Account’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 Separate Account’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate 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, 2011 by correspondence with the mutual funds’ 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 subaccounts of Western Reserve Life Assurance Co. of Ohio Separate Account VA U at December 31, 2011, and the results of their operations and changes in their net assets for the periods indicated thereon, in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

Des Moines, Iowa

April 13, 2012

1

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA JPMorgan  Core Bond Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Moderate Subaccount
Assets
Investment in securities:
Number of shares		1,064,033.234		8,171,800.250		7,408,017.568		16,282,887.172
Cost	$	14,483,317	$	78,196,886	$	58,826,892	$	168,061,460
Investments in mutual funds, Level 1 quoted prices at net asset value	$	14,673,018	$	83,188,927	$	59,708,622	$	165,596,963
Receivable for units sold		4		—		29		41
Total assets		14,673,022		83,188,927		59,708,651		165,597,004
Liabilities
Payable for units redeemed		—		39		—		—
	$	14,673,022	$	83,188,888	$	59,708,651	$	165,597,004
Net Assets:
Deferred annuity contracts terminable by owners	$	14,673,022	$	83,188,888	$	59,708,651	$	165,597,004
Total net assets	$	14,673,022	$	83,188,888	$	59,708,651	$	165,597,004
Accumulation units outstanding:
M&E - 1.25%		1,849,625		12,285,752		11,696,908		25,710,804
M&E - 1.30%		4,936,968		26,243,071		11,369,194		42,001,920
M&E - 1.40%		—		34,869		3,342		83,307
M&E - 1.45%		—		—		—		—
M&E - 1.50%		3,385,136		25,079,419		26,672,882		53,451,867
M&E - 1.55%		73,483		997,833		864,771		2,681,903
M&E - 1.65%		188,478		321,295		570,808		2,022,808
M&E - 1.75%		93,665		239,504		118,103		2,615,293
M&E - 1.80%		—		48,966		—		62,715
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		11,278		—		125,027
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		3,358

2

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA JPMorgan Core Bond Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Moderate Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.406679	$	1.287289	$	1.177930	$	1.300675
M&E - 1.30%	$	1.401158	$	1.282207	$	1.173279	$	1.295626
M&E - 1.40%	$	1.346808	$	1.221732	$	1.077192	$	1.216073
M&E - 1.45%	$	1.342410	$	1.217763	$	1.073699	$	1.212097
M&E - 1.50%	$	1.379309	$	1.262232	$	1.155010	$	1.275400
M&E - 1.55%	$	1.373916	$	1.257299	$	1.150482	$	1.270401
M&E - 1.65%	$	1.363158	$	1.247464	$	1.141485	$	1.260453
M&E - 1.75%	$	1.352552	$	1.237743	$	1.132555	$	1.250618
M&E - 1.80%	$	1.347229	$	1.232876	$	1.128153	$	1.245742
M&E - 1.90%	$	1.313988	$	1.200112	$	1.075544	$	1.203664
M&E - 1.95%	$	1.309700	$	1.196174	$	1.072037	$	1.199735
M&E - 2.00%	$	1.326351	$	1.213728	$	1.110635	$	1.226391
M&E - 2.05%	$	1.321166	$	1.209043	$	1.106300	$	1.221615
M&E - 2.15%	$	1.310863	$	1.199616	$	1.097686	$	1.212106

See accompanying notes.

3

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Asset Allocation - Moderate Growth Subaccount		TA International Moderate Growth Subaccount		TA Clarion Global Real Estate Sec Subaccount		TA JPMorgan Tactical Allocation Subaccount
Assets
Investment in securities:
Number of shares		27,956,802.472		2,911,088.458		675,662.905		526,992.351
Cost	$	306,828,842	$	26,328,507	$	7,551,284	$	6,646,716
Investments in mutual funds, Level 1 quoted prices at net asset value	$	280,406,729	$	23,900,036	$	6,918,788	$	6,582,134
Receivable for units sold		—		12		6		—
Total assets		280,406,729		23,900,048		6,918,794		6,582,134
Liabilities
Payable for units redeemed		147		—		—		4
	$	280,406,582	$	23,900,048	$	6,918,794	$	6,582,130
Net Assets:
Deferred annuity contracts terminable by owners	$	280,406,582	$	23,900,048	$	6,918,794	$	6,582,130
Total net assets	$	280,406,582	$	23,900,048	$	6,918,794	$	6,582,130
Accumulation units outstanding:
M&E - 1.25%		48,152,656		5,183,058		974,947		1,711,382
M&E - 1.30%		56,515,625		13,075,231		1,557,673		1,987,118
M&E - 1.40%		52,504		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		111,789,160		8,045,933		1,842,180		2,184,400
M&E - 1.55%		2,910,759		236,300		77,832		169,233
M&E - 1.65%		2,176,942		55,500		188,826		226,600
M&E - 1.75%		2,534,130		258,880		24,817		42,484
M&E - 1.80%		29,505		41,875		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		224,482		314,079		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		11,196		9,893		—		—

4

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Asset Allocation - Moderate Growth Subaccount		TA International Moderate Growth Subaccount		TA Clarion Global Real Estate Sec Subaccount		TA JPMorgan Tactical Allocation Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.264525	$	0.883713	$	1.498986	$	1.051731
M&E - 1.30%	$	1.259576	$	0.881220	$	1.493077	$	1.047624
M&E - 1.40%	$	1.162321	$	0.876311	$	1.139639	$	0.991158
M&E - 1.45%	$	1.158539	$	0.873854	$	1.135948	$	0.987954
M&E - 1.50%	$	1.239917	$	0.871423	$	1.469797	$	1.031274
M&E - 1.55%	$	1.235071	$	0.869011	$	1.464035	$	1.027226
M&E - 1.65%	$	1.225410	$	0.864146	$	1.452606	$	1.019182
M&E - 1.75%	$	1.215842	$	0.859336	$	1.441295	$	1.011240
M&E - 1.80%	$	1.211088	$	0.856962	$	1.435633	$	1.007272
M&E - 1.90%	$	1.156229	$	0.852193	$	1.138040	$	0.963978
M&E - 1.95%	$	1.152446	$	0.849823	$	1.134333	$	0.960813
M&E - 2.00%	$	1.192278	$	0.847472	$	1.413344	$	0.991648
M&E - 2.05%	$	1.187651	$	0.845113	$	1.407820	$	0.987752
M&E - 2.15%	$	1.178414	$	0.840438	$	1.396891	$	0.980096

See accompanying notes.

5

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA JPMorgan Enhanced Index Subaccount		TA BlackRock Large Cap Value Subaccount		TA AEGON High Yield Bond Subaccount		TA MFS International Equity Subaccount
Assets
Investment in securities:
Number of shares		260,789.511		905,224.434		1,244,607.946		262,811.507
Cost	$	2,876,191	$	12,214,774	$	9,489,221	$	1,765,901
Investments in mutual funds, Level 1 quoted prices at net asset value	$	3,053,845	$	12,473,993	$	9,334,560	$	1,613,663
Receivable for units sold		—		—		—		2
Total assets		3,053,845		12,473,993		9,334,560		1,613,665
Liabilities
Payable for units redeemed		8		1		2		—
	$	3,053,837	$	12,473,992	$	9,334,558	$	1,613,665
Net Assets:
Deferred annuity contracts terminable by owners	$	3,053,837	$	12,473,992	$	9,334,558	$	1,613,665
Total net assets	$	3,053,837	$	12,473,992	$	9,334,558	$	1,613,665
Accumulation units outstanding:
M&E - 1.25%		671,681		2,553,954		1,750,932		394,834
M&E - 1.30%		1,439,777		3,562,330		1,571,037		678,766
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		494,733		3,402,092		2,795,667		817,520
M&E - 1.55%		66,564		136,258		145,588		3,472
M&E - 1.65%		23,824		323,509		328,907		66,982
M&E - 1.75%		—		54,397		7,373		46,827
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

6

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA JPMorgan Enhanced Index Subaccount		TA BlackRock Large Cap Value Subaccount		TA AEGON High Yield Bond Subaccount		TA MFS International  Equity Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.139915	$	1.255325	$	1.430544	$	0.808799
M&E - 1.30%	$	1.135443	$	1.250371	$	1.424950	$	0.806938
M&E - 1.40%	$	1.067163	$	1.048593	$	1.358156	$	1.275088
M&E - 1.45%	$	1.063693	$	1.045169	$	1.353757	$	1.273399
M&E - 1.50%	$	1.117704	$	1.230848	$	1.402741	$	0.799533
M&E - 1.55%	$	1.113361	$	1.226048	$	1.397230	$	0.797723
M&E - 1.65%	$	1.104639	$	1.216481	$	1.386305	$	0.794037
M&E - 1.75%	$	1.096024	$	1.206948	$	1.375486	$	0.790410
M&E - 1.80%	$	1.091749	$	1.202246	$	1.370128	$	0.788612
M&E - 1.90%	$	1.059022	$	1.048152	$	1.331972	$	0.784994
M&E - 1.95%	$	1.055589	$	1.044704	$	1.327604	$	0.783197
M&E - 2.00%	$	1.074798	$	1.183594	$	1.348871	$	0.781392
M&E - 2.05%	$	1.070596	$	1.178959	$	1.343588	$	0.779618
M&E - 2.15%	$	1.062286	$	1.169776	$	1.333148	$	0.776043

See accompanying notes.

7

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA PIMCO Total Return Subaccount		TA Morgan  Stanley Capital Growth Subaccount		TA T.Rowe Price Small Cap Subaccount		TA Third Avenue Value Subaccount
Assets
Investment in securities:
Number of shares		2,417,832.985		219,764.029		367,911.683		924,155.830
Cost	$	28,464,449	$	2,626,381	$	3,673,554	$	9,982,339
Investments in mutual funds, Level 1 quoted prices at net asset value	$	28,167,754	$	2,415,207	$	3,454,691	$	8,955,070
Receivable for units sold		3		—		—		—
Total assets		28,167,757		2,415,207		3,454,691		8,955,070
Liabilities
Payable for units redeemed		—		1		—		6
	$	28,167,757	$	2,415,206	$	3,454,691	$	8,955,064
Net Assets:
Deferred annuity contracts terminable by owners	$	28,167,757	$	2,415,206	$	3,454,691	$	8,955,064
Total net assets	$	28,167,757	$	2,415,206	$	3,454,691	$	8,955,064
Accumulation units outstanding:
M&E - 1.25%		3,671,385		666,117		554,126		2,159,936
M&E - 1.30%		10,092,619		554,242		836,993		2,298,242
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		6,329,179		718,555		900,737		2,788,826
M&E - 1.55%		197,494		104,936		38,108		176,587
M&E - 1.65%		193,499		106,666		79,362		276,378
M&E - 1.75%		219,943		2,184		19,401		60,699
M&E - 1.80%		27,794		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		4,572		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		8,043		—		—		—

8

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA T.Rowe Price Small Cap Subaccount		TA Third Avenue Value Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.370261	$	1.133526	$	1.434603	$	1.165668
M&E - 1.30%	$	1.364904	$	1.129079	$	1.428961	$	1.161090
M&E - 1.40%	$	1.315442	$	1.132649	$	1.375264	$	0.960723
M&E - 1.45%	$	1.311188	$	1.128988	$	1.370824	$	0.957636
M&E - 1.50%	$	1.343583	$	1.111454	$	1.406671	$	1.142979
M&E - 1.55%	$	1.338324	$	1.107105	$	1.401129	$	1.138484
M&E - 1.65%	$	1.327863	$	1.098438	$	1.390227	$	1.129580
M&E - 1.75%	$	1.317487	$	1.089882	$	1.379275	$	1.120751
M&E - 1.80%	$	1.312340	$	1.085615	$	1.373928	$	1.116404
M&E - 1.90%	$	1.282919	$	1.122755	$	1.411714	$	0.964148
M&E - 1.95%	$	1.278730	$	1.119056	$	1.407127	$	0.960992
M&E - 2.00%	$	1.291983	$	1.068742	$	1.352654	$	1.099044
M&E - 2.05%	$	1.286932	$	1.064594	$	1.347307	$	1.094783
M&E - 2.15%	$	1.276905	$	1.056328	$	1.336899	$	1.086268

See accompanying notes.

9

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Multi-Managed Balanced Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount		TA WMC Diversified Growth Subaccount		TA AEGON  Money Market Subaccount
Assets
Investment in securities:
Number of shares		1,016,899.854		298,648.861		726,959.672		26,784,318.730
Cost	$	12,030,957	$	2,429,968	$	14,272,704	$	26,784,319
Investments in mutual funds, Level 1 quoted prices at net asset value	$	12,955,304	$	2,436,975	$	15,469,702	$	26,784,319
Receivable for units sold		—		4		—		—
Total assets		12,955,304		2,436,979		15,469,702		26,784,319
Liabilities
Payable for units redeemed		5		—		5,535		44
	$	12,955,299	$	2,436,979	$	15,464,167	$	26,784,275
Net Assets:
Deferred annuity contracts terminable by owners	$	12,955,299	$	2,436,979	$	15,464,167	$	26,784,275
Total net assets	$	12,955,299	$	2,436,979	$	15,464,167	$	26,784,275
Accumulation units outstanding:
M&E - 1.25%		1,651,397		349,720		2,808,294		5,341,317
M&E - 1.30%		3,332,970		793,063		3,349,566		6,766,446
M&E - 1.40%		—		—		21,762		37,209
M&E - 1.45%		—		—		—		17,653
M&E - 1.50%		3,656,654		815,630		6,218,447		10,139,264
M&E - 1.55%		120,344		39,496		214,815		812,569
M&E - 1.65%		190,414		7,844		493,483		980,503
M&E - 1.75%		91,298		2,247		47,964		1,780,020
M&E - 1.80%		74,968		—		—		4,327
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		40,265

10

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Multi-Managed Balanced Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount		TA WMC Diversified Growth Subaccount		TA AEGON  Money Market Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.436567	$	1.225976	$	1.189919	$	1.047274
M&E - 1.30%	$	1.430898	$	1.221187	$	1.185291	$	1.043175
M&E - 1.40%	$	1.345159	$	1.202757	$	1.064387	$	1.038566
M&E - 1.45%	$	1.340790	$	1.198858	$	1.060938	$	1.035212
M&E - 1.50%	$	1.408564	$	1.202130	$	1.166780	$	1.026951
M&E - 1.55%	$	1.403107	$	1.197389	$	1.162197	$	1.022916
M&E - 1.65%	$	1.392132	$	1.188033	$	1.153142	$	1.014932
M&E - 1.75%	$	1.381252	$	1.178750	$	1.144134	$	1.006982
M&E - 1.80%	$	1.375842	$	1.174163	$	1.139660	$	1.003061
M&E - 1.90%	$	1.332559	$	1.196920	$	1.084662	$	1.005877
M&E - 1.95%	$	1.328198	$	1.192988	$	1.081149	$	1.002588
M&E - 2.00%	$	1.354501	$	1.155943	$	1.121957	$	0.987490
M&E - 2.05%	$	1.349208	$	1.151426	$	1.117585	$	0.983628
M&E - 2.15%	$	1.338683	$	1.142493	$	1.108874	$	0.975988

See accompanying notes.

11

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Systematic Small/Mid Cap Value Subaccount		TA AEGON U.S. Government Securities - PAM Fund Subaccount		TA AEGON  U.S. Government Securities Subaccount		TA Morgan  Stanley Mid-Cap Growth Subaccount
Assets
Investment in securities:
Number of shares		634,108.674		9,517,811.240		887,281.085		377,502.233
Cost	$	11,823,390	$	127,863,190	$	11,636,026	$	10,665,958
Investments in mutual funds, Level 1 quoted prices at net asset value	$	12,726,561	$	127,157,958	$	11,854,075	$	10,075,535
Receivable for units sold		—		—		—		—
Total assets		12,726,561		127,157,958		11,854,075		10,075,535
Liabilities
Payable for units redeemed		19		42		—		5,722
	$	12,726,542	$	127,157,916	$	11,854,075	$	10,069,813
Net Assets:
Deferred annuity contracts terminable by owners	$	12,726,542	$	127,157,916	$	11,854,075	$	10,069,813
Total net assets	$	12,726,542	$	127,157,916	$	11,854,075	$	10,069,813
Accumulation units outstanding:
M&E - 1.25%		1,506,730		18,293,268		1,523,426		1,772,609
M&E - 1.30%		2,579,348		32,071,674		3,960,890		2,378,800
M&E - 1.40%		—		63,115		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		2,329,894		49,145,334		3,397,411		2,571,234
M&E - 1.55%		123,388		227,822		150,709		129,141
M&E - 1.65%		504,789		—		183,949		164,973
M&E - 1.75%		10,393		283,465		90,314		23,118
M&E - 1.80%		—		—		11,616		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		2,134		—		4,049
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		4,661		—

12

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Systematic Small/Mid  Cap Value Subaccount		TA AEGON  U.S. Government Securities - PAM Fund Subaccount		TA AEGON  U.S. Government Securities Subaccount		TA Morgan  Stanley Mid-Cap Growth Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.822494	$	1.284635	$	1.284635	$	1.443654
M&E - 1.30%	$	1.815630	$	1.279559	$	1.279559	$	1.437974
M&E - 1.40%	$	1.590208	$	1.249682	$	1.249682	$	1.421163
M&E - 1.45%	$	1.585068	$	1.245621	$	1.245621	$	1.416584
M&E - 1.50%	$	1.788376	$	1.259585	$	1.259585	$	1.415524
M&E - 1.55%	$	1.781655	$	1.254686	$	1.254686	$	1.409990
M&E - 1.65%	$	1.768251	$	1.117261	$	1.244878	$	1.398977
M&E - 1.75%	$	1.754945	$	1.235129	$	1.235129	$	1.388050
M&E - 1.80%	$	1.748385	$	1.230314	$	1.230314	$	1.382643
M&E - 1.90%	$	1.610439	$	1.218574	$	1.218574	$	1.444846
M&E - 1.95%	$	1.605200	$	1.214588	$	1.214588	$	1.440085
M&E - 2.00%	$	1.722258	$	1.211227	$	1.211227	$	1.361160
M&E - 2.05%	$	1.715815	$	—	$	1.206498	$	1.355848
M&E - 2.15%	$	1.702992	$	1.197133	$	1.197133	$	1.345307

See accompanying notes.

13

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Vanguard ETF Index - Balanced Subaccount		TA Vanguard ETF Index - Growth Subaccount		TA Efficient Markets Subaccount		TA Janus  Balanced Subaccount
Assets
Investment in securities:
Number of shares		71,224.516		224,481.669		61,508.687		122,319.846
Cost	$	609,779	$	1,883,438	$	836,048	$	1,337,140
Investments in mutual funds, Level 1 quoted prices at net asset value	$	734,325	$	2,137,065	$	789,156	$	1,154,699
Receivable for units sold		2		8		—		3
Total assets		734,327		2,137,073		789,156		1,154,702
Liabilities
Payable for units redeemed		—		—		6		—
	$	734,327	$	2,137,073	$	789,150	$	1,154,702
Net Assets:
Deferred annuity contracts terminable by owners	$	734,327	$	2,137,073	$	789,150	$	1,154,702
Total net assets	$	734,327	$	2,137,073	$	789,150	$	1,154,702
Accumulation units outstanding:
M&E - 1.25%		56,618		937,445		270,318		472,186
M&E - 1.30%		303,773		724,896		215,946		603,257
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		350,587		561,741		98,465		219,351
M&E - 1.55%		—		—		—		6,744
M&E - 1.65%		—		—		—		5,712
M&E - 1.75%		3,713		2,592		1,530		—
M&E - 1.80%		—		—		24,878		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		9,488		—		—

14

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Vanguard ETF Index - Balanced Subaccount		TA Vanguard ETF Index - Growth Subaccount		TA Efficient Markets Subaccount		TA Janus  Balanced Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.032943	$	0.958559	$	1.294521	$	0.884565
M&E - 1.30%	$	1.031053	$	0.956851	$	1.292543	$	0.883639
M&E - 1.40%	$	1.249240	$	1.301303	$	1.259396	$	0.881788
M&E - 1.45%	$	1.247608	$	1.299609	$	1.257736	$	0.880881
M&E - 1.50%	$	1.023630	$	0.949931	$	1.284573	$	0.879968
M&E - 1.55%	$	1.021799	$	0.948214	$	1.282563	$	0.879039
M&E - 1.65%	$	1.018128	$	0.944813	$	1.278633	$	0.877223
M&E - 1.75%	$	1.014433	$	0.941380	$	1.274690	$	0.875390
M&E - 1.80%	$	1.012608	$	0.939702	$	1.272722	$	0.874486
M&E - 1.90%	$	1.008991	$	0.936339	$	1.268810	$	0.872677
M&E - 1.95%	$	1.007162	$	0.934661	$	1.266873	$	0.871759
M&E - 2.00%	$	1.005354	$	0.932973	$	1.264908	$	0.870855
M&E - 2.05%	$	1.003566	$	0.931286	$	1.262959	$	0.869964
M&E - 2.15%	$	0.999957	$	0.927966	$	1.259112	$	0.868145

See accompanying notes.

15

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Hanlon  Growth Subaccount		TA Hanlon Growth and Income Subaccount		TA Hanlon Balanced Subaccount		TA Hanlon  Income Subaccount
Assets
Investment in securities:
Number of shares		74,338.725		108,336.116		133,484.635		895,142.267
Cost	$	825,611	$	1,190,943	$	1,463,007	$	9,986,928
Investments in mutual funds, Level 1 quoted prices at net asset value	$	727,776	$	1,095,278	$	1,392,245	$	9,971,885
Receivable for units sold		—		1		4		13
Total assets		727,776		1,095,279		1,392,249		9,971,898
Liabilities
Payable for units redeemed		2		—		—		—
	$	727,774	$	1,095,279	$	1,392,249	$	9,971,898
Net Assets:
Deferred annuity contracts terminable by owners	$	727,774	$	1,095,279	$	1,392,249	$	9,971,898
Total net assets	$	727,774	$	1,095,279	$	1,392,249	$	9,971,898
Accumulation units outstanding:
M&E - 1.25%		323,710		223,822		59,974		1,682,508
M&E - 1.30%		334,676		556,759		527,976		4,241,023
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		173,668		394,448		913,834		3,098,691
M&E - 1.55%		—		—		—		674,003
M&E - 1.65%		—		39,957		2,670		127,988
M&E - 1.75%		1,318		—		—		83,087
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

16

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Hanlon  Growth Subaccount		TA Hanlon Growth and Income Subaccount		TA Hanlon Balanced Subaccount		TA Hanlon  Income Subaccount
Accumulation unit value:
M&E - 1.25%	$	0.874623	$	0.903681	$	0.928682	$	1.009231
M&E - 1.30%	$	0.873700	$	0.902735	$	0.927731	$	1.008203
M&E - 1.40%	$	0.871893	$	0.900846	$	0.925800	$	1.006077
M&E - 1.45%	$	0.870991	$	0.899919	$	0.924841	$	1.005034
M&E - 1.50%	$	0.870065	$	0.898985	$	0.923880	$	1.003967
M&E - 1.55%	$	0.869166	$	0.898047	$	0.922901	$	1.002936
M&E - 1.65%	$	0.867357	$	0.896169	$	0.920990	$	1.000834
M&E - 1.75%	$	0.865554	$	0.894314	$	0.919076	$	0.998774
M&E - 1.80%	$	0.864655	$	0.893389	$	0.918114	$	0.997741
M&E - 1.90%	$	0.862860	$	0.891527	$	0.916220	$	0.995670
M&E - 1.95%	$	0.861968	$	0.890613	$	0.915280	$	0.994626
M&E - 2.00%	$	0.861075	$	0.889689	$	0.914306	$	0.993605
M&E - 2.05%	$	0.860159	$	0.888751	$	0.913367	$	0.992558
M&E - 2.15%	$	0.858399	$	0.886923	$	0.911464	$	0.990534

See accompanying notes.

17

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Vanguard  ETF Index - Conservative Subaccount		TA Vanguard ETF Index - Aggressive Growth Subaccount		TA Jennison Growth Subaccount		TA AEGON Tactical  Vanguard ETF-Growth Subaccount
Assets
Investment in securities:
Number of shares		31,228.862		4,669.759		512,173.062		512,310
Cost	$	331,568	$	56,790	$	4,130,917	$	4,810,589
Investments in mutual funds, Level 1 quoted prices at net asset value	$	349,139	$	52,208	$	3,953,976	$	4,759,358
Receivable for units sold		—		—		—		—
Total assets		349,139		52,208		3,953,976		4,759,358
Liabilities
Payable for units redeemed		1		—		5		5,567
	$	349,138	$	52,208	$	3,953,971	$	4,753,791
Net Assets:
Deferred annuity contracts terminable by owners	$	349,138	$	52,208	$	3,953,971	$	4,753,791
Total net assets	$	349,138	$	52,208	$	3,953,971	$	4,753,791
Accumulation units outstanding:
M&E - 1.25%		—		5,178		842,570		817,314
M&E - 1.30%		131,667		12,597		1,282,694		3,349,511
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		183,139		29,918		1,530,999		342,336
M&E - 1.55%		—		—		56,983		108,741
M&E - 1.65%		—		—		128,739		190,710
M&E - 1.75%		—		—		2,443		—
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		3,843		—		—		—

18

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA Vanguard  ETF Index - Conservative Subaccount		TA Vanguard ETF Index - Aggressive Growth Subaccount		TA  Jennison Growth Subaccount		TA AEGON Tactical  Vanguard ETF-Growth Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.099705	$	1.098560	$	1.030779	$	0.988642
M&E - 1.30%	$	1.098537	$	1.097401	$	1.029921	$	0.988614
M&E - 1.40%	$	1.096261	$	1.095118	$	1.028233	$	0.988557
M&E - 1.45%	$	1.095100	$	1.093985	$	1.027388	$	0.988528
M&E - 1.50%	$	1.093979	$	1.092834	$	1.026534	$	0.988500
M&E - 1.55%	$	1.092843	$	1.091708	$	1.025697	$	0.988472
M&E - 1.65%	$	1.090563	$	1.089428	$	1.024005	$	0.988415
M&E - 1.75%	$	1.088293	$	1.087159	$	1.022323	$	0.988360
M&E - 1.80%	$	1.087169	$	1.086040	$	1.021487	$	0.988334
M&E - 1.90%	$	1.084909	$	1.083781	$	1.019807	$	0.988276
M&E - 1.95%	$	1.083783	$	1.082664	$	1.018981	$	0.988249
M&E - 2.00%	$	1.082666	$	1.081538	$	1.018144	$	0.988220
M&E - 2.05%	$	1.081544	$	1.080415	$	1.017306	$	0.988192
M&E - 2.15%	$	1.079305	$	1.078183	$	1.015629	$	0.988136

See accompanying notes.

19

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA AEGON Tactical  Vanguard ETF-Conservative Subaccount		Fidelity - VIP  Index 500 Subaccount		ProFund VP  Bull Subaccount		ProFund VP  Money Market Subaccount
Assets
Investment in securities:
Number of shares		116,273		27,571.558		17,892.060		6,876,312.010
Cost	$	1,142,771	$	3,444,909	$	451,365	$	6,876,312
Investments in mutual funds, Level 1 quoted prices at net asset value	$	1,151,104	$	3,535,777	$	463,762	$	6,876,312
Receivable for units sold		—		1		7		—
Total assets		1,151,104		3,535,778		463,769		6,876,312
Liabilities
Payable for units redeemed		48		—		—		9
	$	1,151,056	$	3,535,778	$	463,769	$	6,876,303
Net Assets:
Deferred annuity contracts terminable by owners	$	1,151,056	$	3,535,778	$	463,769	$	6,876,303
Total net assets	$	1,151,056	$	3,535,778	$	463,769	$	6,876,303
Accumulation units outstanding:
M&E - 1.25%		70,841		1,705,668		287,200		1,485,073
M&E - 1.30%		988,986		495,098		56,628		2,555,777
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		85,110		595,983		242,002		2,931,180
M&E - 1.55%		—		76,244		—		45,113
M&E - 1.65%		—		187,651		—		99,227
M&E - 1.75%		—		10,173		—		—
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

20

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	TA AEGON Tactical  Vanguard ETF-Conservative Subaccount		Fidelity - VIP  Index 500 Subaccount		ProFund VP  Bull Subaccount		ProFund VP  Money Market Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.005379	$	1.159538	$	0.795470	$	0.971777
M&E - 1.30%	$	1.005351	$	1.154978	$	0.793673	$	0.969668
M&E - 1.40%	$	1.005293	$	1.085514	$	—	$	—
M&E - 1.45%	$	1.005265	$	1.081981	$	—	$	—
M&E - 1.50%	$	1.005235	$	1.136975	$	0.786626	$	0.961014
M&E - 1.55%	$	1.005208	$	1.132530	$	0.784874	$	0.958912
M&E - 1.65%	$	1.005148	$	1.123669	$	0.781364	$	0.954611
M&E - 1.75%	$	1.005094	$	1.114881	$	0.777903	$	0.950377
M&E - 1.80%	$	1.005064	$	1.110511	$	0.776169	$	0.948247
M&E - 1.90%	$	1.005008	$	1.077593	$	0.772720	$	0.944076
M&E - 1.95%	$	1.004979	$	1.074077	$	0.771014	$	0.941943
M&E - 2.00%	$	1.004951	$	1.093275	$	0.769297	$	0.939867
M&E - 2.05%	$	1.004924	$	1.089034	$	0.767599	$	0.937806
M&E - 2.15%	$	1.004866	$	1.080544	$	0.764191	$	0.933636

See accompanying notes.

21

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP NASDAQ-100 Subaccount		ProFund VP  Short Small-Cap Subaccount		ProFund VP  Small- Cap Subaccount		ProFund VP  Japan Subaccount
Assets
Investment in securities:
Number of shares		119,730.817		10,472.554		9,518.570		28,514.191
Cost	$	2,361,999	$	90,436	$	247,629	$	303,449
Investments in mutual funds, Level 1 quoted prices at net asset value	$	2,338,343	$	80,639	$	250,910	$	295,692
Receivable for units sold		2		—		—		—
Total assets		2,338,345		80,639		250,910		295,692
Liabilities
Payable for units redeemed		—		—		1		1
	$	2,338,345	$	80,639	$	250,909	$	295,691
Net Assets:
Deferred annuity contracts terminable by owners	$	2,338,345	$	80,639	$	250,909	$	295,691
Total net assets	$	2,338,345	$	80,639	$	250,909	$	295,691
Accumulation units outstanding:
M&E - 1.25%		406,280		34,475		163,979		161,124
M&E - 1.30%		745,215		35,332		42,053		246,533
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		1,015,907		53,167		98,363		263,283
M&E - 1.55%		33,893		11,221		58		17,512
M&E - 1.65%		449		1,431		—		—
M&E - 1.75%		14,673		—		—		—
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		9,793		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

22

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP NASDAQ-100 Subaccount		ProFund VP  Short Small-Cap Subaccount		ProFund VP  Small- Cap Subaccount		ProFund VP  Japan Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.061595	$	0.559005	$	0.827356	$	0.431731
M&E - 1.30%	$	1.059220	$	0.557760	$	0.825509	$	0.430798
M&E - 1.40%	$	—	$	—	$	—	$	0.807608
M&E - 1.45%	$	—	$	—	$	—	$	0.806560
M&E - 1.50%	$	1.049791	$	0.552805	$	0.818176	$	0.427142
M&E - 1.55%	$	1.047459	$	0.551564	$	0.816340	$	0.426236
M&E - 1.65%	$	1.042789	$	0.549104	$	0.812709	$	0.424419
M&E - 1.75%	$	1.038169	$	0.546672	$	0.809081	$	0.422612
M&E - 1.80%	$	1.035867	$	0.545464	$	0.807286	$	0.421713
M&E - 1.90%	$	1.031230	$	0.543044	$	0.803725	$	0.419912
M&E - 1.95%	$	1.028964	$	0.541841	$	0.801909	$	0.419031
M&E - 2.00%	$	1.026676	$	0.540638	$	0.800124	$	0.418161
M&E - 2.05%	$	1.024392	$	0.539432	$	0.798362	$	0.417263
M&E - 2.15%	$	1.019881	$	0.537044	$	0.794826	$	0.415501

See accompanying notes.

23

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP UltraSmall-Cap Subaccount		ProFund VP  Basic Materials Subaccount		ProFund VP Pharmaceuticals Subaccount		ProFund VP Telecommunications Subaccount
Assets
Investment in securities:
Number of shares		48,098.798		39,114.801		29,263.040		6,660.255
Cost	$	463,623	$	2,018,076	$	694,989	$	49,626
Investments in mutual funds, Level 1 quoted prices at net asset value	$	495,418	$	1,709,317	$	733,039	$	49,752
Receivable for units sold		—		1		—		—
Total assets		495,418		1,709,318		733,039		49,752
Liabilities
Payable for units redeemed		4		—		1		2
	$	495,414	$	1,709,318	$	733,038	$	49,750
Net Assets:
Deferred annuity contracts terminable by owners	$	495,414	$	1,709,318	$	733,038	$	49,750
Total net assets	$	495,414	$	1,709,318	$	733,038	$	49,750
Accumulation units outstanding:
M&E - 1.25%		533,798		335,270		81,873		—
M&E - 1.30%		166,972		665,327		187,737		34,587
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		104,016		804,291		405,004		30,768
M&E - 1.55%		226,490		58,447		93		—
M&E - 1.65%		965		2,684		20,745		1,109
M&E - 1.75%		—		498		11,467		—
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		27,056		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

24

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP UltraSmall-Cap Subaccount		ProFund VP  Basic Materials Subaccount		ProFund VP Pharmaceuticals Subaccount		ProFund VP Telecommunications Subaccount
Accumulation unit value:
M&E - 1.25%	$	0.481978	$	0.908253	$	1.044740	$	0.753277
M&E - 1.30%	$	0.480963	$	0.906325	$	1.042540	$	0.751676
M&E - 1.40%	$	1.720742	$	1.408005	$	1.457609	$	1.217074
M&E - 1.45%	$	1.718487	$	1.406156	$	1.455722	$	1.215463
M&E - 1.50%	$	0.476835	$	0.898623	$	1.033684	$	0.745296
M&E - 1.55%	$	0.475835	$	0.896711	$	1.031470	$	0.743715
M&E - 1.65%	$	0.473815	$	0.892888	$	1.027117	$	0.740559
M&E - 1.75%	$	0.471791	$	0.889112	$	1.022740	$	0.737402
M&E - 1.80%	$	0.470777	$	0.887229	$	1.020573	$	0.735837
M&E - 1.90%	$	0.468799	$	0.883429	$	1.016247	$	0.732729
M&E - 1.95%	$	0.467795	$	0.881581	$	1.014095	$	0.731177
M&E - 2.00%	$	0.466795	$	0.879721	$	1.011940	$	0.729610
M&E - 2.05%	$	0.465799	$	0.877837	$	1.009806	$	0.728081
M&E - 2.15%	$	0.463844	$	0.874124	$	1.005543	$	0.725007

See accompanying notes.

25

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP Asia 30 Subaccount		ProFund VP Oil  & Gas Subaccount		ProFund VP U.S. Government Plus Subaccount		ProFund VP Consumer Services Subaccount
Assets
Investment in securities:
Number of shares		21,829.161		53,920.355		37,705.934		19,900.570
Cost	$	1,018,780	$	2,746,849	$	874,125	$	658,047
Investments in mutual funds, Level 1 quoted prices at net asset value	$	920,972	$	2,560,138	$	1,059,160	$	672,042
Receivable for units sold		—		19		—		1
Total assets		920,972		2,560,157		1,059,160		672,043
Liabilities
Payable for units redeemed		—		—		1		—
	$	920,972	$	2,560,157	$	1,059,159	$	672,043
Net Assets:
Deferred annuity contracts terminable by owners	$	920,972	$	2,560,157	$	1,059,159	$	672,043
Total net assets	$	920,972	$	2,560,157	$	1,059,159	$	672,043
Accumulation units outstanding:
M&E - 1.25%		322,804		573,061		152,475		74,783
M&E - 1.30%		434,703		907,060		316,272		128,516
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		326,913		909,799		172,850		470,634
M&E - 1.55%		104,754		398,544		4,401		—
M&E - 1.65%		130,725		1,141		—		—
M&E - 1.75%		518		11,186		1,427		2,320
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		28,035		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

26

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP Asia  30 Subaccount		ProFund VP Oil  & Gas Subaccount		ProFund VP  U.S. Government Plus Subaccount		ProFund VP Consumer  Services Subaccount
Accumulation unit value:
M&E - 1.25%	$	0.701708	$	0.910747	$	1.642527	$	1.001669
M&E - 1.30%	$	0.700215	$	0.908815	$	1.639032	$	0.999522
M&E - 1.40%	$	1.024162	$	1.321227	$	1.382867	$	1.506760
M&E - 1.45%	$	1.022822	$	1.319485	$	1.381069	$	1.504771
M&E - 1.50%	$	0.694263	$	0.901092	$	1.625116	$	0.991018
M&E - 1.55%	$	0.692784	$	0.899159	$	1.621663	$	0.988918
M&E - 1.65%	$	0.689848	$	0.895356	$	1.614789	$	0.984733
M&E - 1.75%	$	0.686900	$	0.891555	$	1.607958	$	0.980547
M&E - 1.80%	$	0.685443	$	0.889653	$	1.604503	$	0.978484
M&E - 1.90%	$	0.682536	$	0.885883	$	1.597727	$	0.974335
M&E - 1.95%	$	0.681082	$	0.883983	$	1.594344	$	0.972250
M&E - 2.00%	$	0.679647	$	0.882129	$	1.590999	$	0.970193
M&E - 2.05%	$	0.678210	$	0.880264	$	1.587604	$	0.968142
M&E - 2.15%	$	0.675328	$	0.876529	$	1.580941	$	0.964042

See accompanying notes.

27

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP Precious Metals Subaccount		ProFund VP  Europe 30 Subaccount		ProFund VP  Short NASDAQ-100 Subaccount		ProFund VP Utilities Subaccount
Assets
Investment in securities:
Number of shares		72,214.993		1,961.616		18,760.357		68,874.512
Cost	$	3,730,010	$	38,330	$	168,307	$	2,084,583
Investments in mutual funds, Level 1 quoted prices at net asset value	$	3,207,068	$	37,683	$	158,713	$	2,236,355
Receivable for units sold		3		—		—		—
Total assets		3,207,071		37,683		158,713		2,236,355
Liabilities
Payable for units redeemed		—		5		2		1
	$	3,207,071	$	37,678	$	158,711	$	2,236,354
Net Assets:
Deferred annuity contracts terminable by owners	$	3,207,071	$	37,678	$	158,711	$	2,236,354
Total net assets	$	3,207,071	$	37,678	$	158,711	$	2,236,354
Accumulation units outstanding:
M&E - 1.25%		565,890		8,020		41,118		274,258
M&E - 1.30%		951,434		5,780		128,730		405,164
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		962,860		42,169		74,039		1,165,035
M&E - 1.55%		314,004		—		32,166		13,099
M&E - 1.65%		30,178		—		1,498		417,690
M&E - 1.75%		4,070		—		112		34,209
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		31,672		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

28

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP Precious  Metals Subaccount		ProFund VP  Europe 30 Subaccount		ProFund VP  Short NASDAQ-100 Subaccount		ProFund VP Utilities Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.128344	$	0.678785	$	0.574699	$	0.977292
M&E - 1.30%	$	1.125963	$	0.677330	$	0.573465	$	0.975202
M&E - 1.40%	$	1.349614	$	1.173585	$	0.501693	$	1.434395
M&E - 1.45%	$	1.347851	$	1.172059	$	0.501040	$	1.432491
M&E - 1.50%	$	1.116355	$	0.671579	$	0.568603	$	0.966953
M&E - 1.55%	$	1.113985	$	0.670156	$	0.567391	$	0.964891
M&E - 1.65%	$	1.109231	$	0.667289	$	0.564979	$	0.960775
M&E - 1.75%	$	1.104531	$	0.664483	$	0.562576	$	0.956709
M&E - 1.80%	$	1.102199	$	0.663052	$	0.561383	$	0.954638
M&E - 1.90%	$	1.097520	$	0.660252	$	0.559007	$	0.950634
M&E - 1.95%	$	1.095190	$	0.658860	$	0.557816	$	0.948615
M&E - 2.00%	$	1.092866	$	0.657452	$	0.556640	$	0.946587
M&E - 2.05%	$	1.090543	$	0.656048	$	0.555457	$	0.944617
M&E - 2.15%	$	1.085918	$	0.653280	$	0.553120	$	0.940586

See accompanying notes.

29

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP Financials Subaccount		ProFund VP Small- Cap Value Subaccount		ProFund VP  Mid- Cap Subaccount		ProFund VP Short Emerging Markets Subaccount
Assets
Investment in securities:
Number of shares		15,630.154		9,747.209		33,416.696		5,734.525
Cost	$	295,925	$	246,270	$	776,694	$	92,140
Investments in mutual funds, Level 1 quoted prices at net asset value	$	266,807	$	255,182	$	791,307	$	85,731
Receivable for units sold		2		2		2		—
Total assets		266,809		255,184		791,309		85,731
Liabilities
Payable for units redeemed		—		—		—		—
	$	266,809	$	255,184	$	791,309	$	85,731
Net Assets:
Deferred annuity contracts terminable by owners	$	266,809	$	255,184	$	791,309	$	85,731
Total net assets	$	266,809	$	255,184	$	791,309	$	85,731
Accumulation units outstanding:
M&E - 1.25%		181,411		199,763		386,421		42,942
M&E - 1.30%		251,133		86,424		104,042		93,314
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		137,995		13,019		366,640		40,095
M&E - 1.55%		123		—		—		—
M&E - 1.65%		28,373		551		—		—
M&E - 1.75%		—		—		22,940		2,814
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

30

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP Financials Subaccount		ProFund VP Small- Cap Value Subaccount		ProFund VP  Mid- Cap Subaccount		ProFund VP Short Emerging Markets Subaccount
Accumulation unit value:
M&E - 1.25%	$	0.447260	$	0.852241	$	0.903887	$	0.480343
M&E - 1.30%	$	0.446291	$	0.850439	$	0.901971	$	0.479308
M&E - 1.40%	$	1.123393	$	1.362358	$	1.420865	$	0.608662
M&E - 1.45%	$	1.121928	$	1.360581	$	1.419010	$	0.607859
M&E - 1.50%	$	0.442504	$	0.843207	$	0.894304	$	0.475238
M&E - 1.55%	$	0.441535	$	0.841404	$	0.892411	$	0.474231
M&E - 1.65%	$	0.439669	$	0.837822	$	0.888608	$	0.472207
M&E - 1.75%	$	0.437794	$	0.834272	$	0.884826	$	0.470208
M&E - 1.80%	$	0.436873	$	0.832490	$	0.882957	$	0.469204
M&E - 1.90%	$	0.435024	$	0.828970	$	0.879189	$	0.467228
M&E - 1.95%	$	0.434080	$	0.827207	$	0.877331	$	0.466224
M&E - 2.00%	$	0.433164	$	0.825467	$	0.875498	$	0.465248
M&E - 2.05%	$	0.432249	$	0.823730	$	0.873594	$	0.464248
M&E - 2.15%	$	0.430411	$	0.820218	$	0.869927	$	0.462286

See accompanying notes.

31

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP Falling U.S. Dollar Subaccount		ProFund VP International Subaccount		ProFund VP Emerging Markets Subaccount		ProFund VP Short International Subaccount
Assets
Investment in securities:
Number of shares		6,840.802		30,067.874		56,755.722		2,349.276
Cost	$	211,071	$	599,689	$	1,517,185	$	49,877
Investments in mutual funds, Level 1 quoted prices at net asset value	$	195,442	$	560,465	$	1,383,137	$	49,147
Receivable for units sold		—		—		—		—
Total assets		195,442		560,465		1,383,137		49,147
Liabilities
Payable for units redeemed		5		1		1		7
	$	195,437	$	560,464	$	1,383,136	$	49,140
Net Assets:
Deferred annuity contracts terminable by owners	$	195,437	$	560,464	$	1,383,136	$	49,140
Total net assets	$	195,437	$	560,464	$	1,383,136	$	49,140
Accumulation units outstanding:
M&E - 1.25%		91,820		259,691		549,159		17,340
M&E - 1.30%		58,584		187,397		758,018		18,512
M&E - 1.40%		—		—		—		—
M&E - 1.45%		—		—		—		—
M&E - 1.50%		56,625		467,194		379,737		24,070
M&E - 1.55%		2,629		1,693		2,320		—
M&E - 1.65%		—		—		90,995		1,577
M&E - 1.75%		—		—		—		1,596
M&E - 1.80%		—		—		—		—
M&E - 1.90%		—		—		—		—
M&E - 1.95%		—		—		—		—
M&E - 2.00%		—		—		—		—
M&E - 2.05%		—		—		—		—
M&E - 2.15%		—		—		—		—

32

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	ProFund VP Falling U.S. Dollar Subaccount		ProFund VP International Subaccount		ProFund VP Emerging Markets Subaccount		ProFund VP Short International Subaccount
Accumulation unit value:
M&E - 1.25%	$	0.935558	$	0.615484	$	0.780111	$	0.783257
M&E - 1.30%	$	0.933567	$	0.614177	$	0.778440	$	0.781602
M&E - 1.40%	$	0.974902	$	1.134848	$	1.118014	$	0.619131
M&E - 1.45%	$	0.973640	$	1.133353	$	1.116545	$	0.618329
M&E - 1.50%	$	0.925649	$	0.608963	$	0.771827	$	0.774934
M&E - 1.55%	$	0.923679	$	0.607678	$	0.770182	$	0.773288
M&E - 1.65%	$	0.919752	$	0.605089	$	0.766886	$	0.770017
M&E - 1.75%	$	0.915860	$	0.602519	$	0.763653	$	0.766752
M&E - 1.80%	$	0.913911	$	0.601232	$	0.762025	$	0.765134
M&E - 1.90%	$	0.910036	$	0.598682	$	0.758787	$	0.761881
M&E - 1.95%	$	0.908117	$	0.597402	$	0.757182	$	0.760274
M&E - 2.00%	$	0.906186	$	0.596144	$	0.755566	$	0.758661
M&E - 2.05%	$	0.904282	$	0.594892	$	0.753977	$	0.757070
M&E - 2.15%	$	0.900461	$	0.592352	$	0.750756	$	0.753851

See accompanying notes.

33

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	Access VP High Yield Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount
Assets
Investment in securities:
Number of shares		52,607.122		74,539.141		251,925.649
Cost	$	1,385,676	$	824,665	$	1,916,642
Investments in mutual funds, Level 1 quoted prices at net asset value	$	1,384,093	$	805,023	$	1,909,596
Receivable for units sold		—		—		—
Total assets		1,384,093		805,023		1,909,596
Liabilities
Payable for units redeemed		—		4		4
	$	1,384,093	$	805,019	$	1,909,592
Net Assets:
Deferred annuity contracts terminable by owners	$	1,384,093	$	805,019	$	1,909,592
Total net assets	$	1,384,093	$	805,019	$	1,909,592
Accumulation units outstanding:
M&E - 1.25%		405,894		192,926		367,387
M&E - 1.30%		237,481		263,392		900,087
M&E - 1.40%		—		—		—
M&E - 1.45%		—		—		—
M&E - 1.50%		341,111		123,547		145,305
M&E - 1.55%		59,079		5,154		5,130
M&E - 1.65%		—		2,707		—
M&E - 1.75%		19,978		5,657		7,177
M&E - 1.80%		—		32,000		—
M&E - 1.90%		—		—		—
M&E - 1.95%		—		—		—
M&E - 2.00%		—		—		—
M&E - 2.05%		—		—		—
M&E - 2.15%		—		—		3,090

34

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Assets and Liabilities

December 31, 2011

	Access VP High Yield Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount
Accumulation unit value:
M&E - 1.25%	$	1.307897	$	1.291502	$	1.339660
M&E - 1.30%	$	1.305131	$	1.289515	$	1.337593
M&E - 1.40%	$	1.426586	$	1.252407	$	1.315935
M&E - 1.45%	$	1.424715	$	1.250761	$	1.314237
M&E - 1.50%	$	1.294044	$	1.281555	$	1.329378
M&E - 1.55%	$	1.291291	$	1.279599	$	1.327324
M&E - 1.65%	$	1.285809	$	1.275667	$	1.323222
M&E - 1.75%	$	1.280353	$	1.271752	$	1.319158
M&E - 1.80%	$	1.277656	$	1.269795	$	1.317132
M&E - 1.90%	$	1.272232	$	1.265900	$	1.313086
M&E - 1.95%	$	1.269560	$	1.263956	$	1.311076
M&E - 2.00%	$	1.266839	$	1.262014	$	1.309051
M&E - 2.05%	$	1.264159	$	1.260087	$	1.307037
M&E - 2.15%	$	1.258849	$	1.256225	$	1.303046

See accompanying notes.

35

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA JPMorgan Core Bond Subaccount			TA Asset Allocation - Conservative Subaccount			TA Asset Allocation - Growth Subaccount			TA Asset Allocation - Moderate Subaccount
Net Assets as of January 1, 2010	$	12,149,813		$	96,208,900		$	82,281,502		$	199,301,330
Investment Income:
Dividends		588,608			2,830,998			651,410			5,198,965
Investment Expenses:
Mortality and expense risk and other charges		156,402			1,256,722			1,079,297			2,638,185
Net investment income (loss)		432,206			1,574,276			(427,887	)		2,560,780
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			256,044			—			—
Realized gain (loss) on investments		562,789			(3,505,931	)		(19,600,555	)		(10,778,018	)
Net realized capital gains (losses) on investments		562,789			(3,249,887	)		(19,600,555	)		(10,778,018	)
Net change in unrealized appreciation/depreciation		(272,913	)		8,090,456			28,602,670			23,274,413
Net Gain (Loss) on Investment		289,876			4,840,569			9,002,115			12,496,395
Increase (decrease) in net assets from operations		722,082			6,414,845			8,574,228			15,057,175
Increase (decrease) in net assets from contract transactions		(2,430,597	)		(9,320,722	)		(7,058,456	)		(21,905,090	)
Total increase (decrease) in net assets		(1,708,515	)		(2,905,877	)		1,515,772			(6,847,915	)
Net Assets as of December 31, 2010	$	10,441,298		$	93,303,023		$	83,797,274		$	192,453,415
Investment Income:
Dividends		543,296			2,122,401			678,971			3,848,846
Investment Expenses:
Mortality and expense risk and other charges		170,362			1,183,749			1,072,390			2,538,972
Net investment income (loss)		372,934			938,652			(393,419	)		1,309,874
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		16,944			—			—			—
Realized gain (loss) on investments		236,178			(1,912,113	)		(8,633,467	)		(7,255,830	)
Net realized capital gains (losses) on investments		253,122			(1,912,113	)		(8,633,467	)		(7,255,830	)
Net change in unrealized appreciation/depreciation		100,159			1,940,630			3,040,447			4,029,966
Net Gain (Loss) on Investment		353,281			28,517			(5,593,020	)		(3,225,864	)
Increase (decrease) in net assets from operations		726,215			967,169			(5,986,439	)		(1,915,990	)
Increase (decrease) in net assets from contract transactions		3,505,509			(11,081,304	)		(18,102,184	)		(24,940,421	)
Total increase (decrease) in net assets		4,231,724			(10,114,135	)		(24,088,623	)		(26,856,411	)
Net Assets as of December 31, 2011	$	14,673,022		$	83,188,888		$	59,708,651		$	165,597,004

See accompanying notes.

36

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA Asset Allocation - Moderate Growth Subaccount			TA International Moderate Growth Subaccount			TA Clarion Global Real Estate Sec Subaccount			TA JPMorgan Tactical Allocation Subaccount
Net Assets as of January 1, 2010	$	335,728,365		$	30,202,216		$	8,009,608		$	9,124,402
Investment Income:
Dividends		6,448,460			709,681			460,130			236,798
Investment Expenses:
Mortality and expense risk and other charges		4,540,546			393,844			112,806			106,178
Net investment income (loss)		1,907,914			315,837			347,324			130,620
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(21,940,121	)		(1,808,206	)		(2,187,698	)		(579,194	)
Net realized capital gains (losses) on investments		(21,940,121	)		(1,808,206	)		(2,187,698	)		(579,194	)
Net change in unrealized appreciation/depreciation		52,752,146			3,771,716			2,772,030			330,174
Net Gain (Loss) on Investment		30,812,025			1,963,510			584,332			(249,020	)
Increase (decrease) in net assets from operations		32,719,939			2,279,347			931,656			(118,400	)
Increase (decrease) in net assets from contract transactions		(17,657,405	)		(2,497,477	)		363,805			(1,672,462	)
Total increase (decrease) in net assets		15,062,534			(218,130	)		1,295,461			(1,790,862	)
Net Assets as of December 31, 2010	$	350,790,899		$	29,984,086		$	9,305,069		$	7,333,540
Investment Income:
Dividends		5,898,061			519,652			515,777			92,856
Investment Expenses:
Mortality and expense risk and other charges		4,572,659			380,275			116,207			89,676
Net investment income (loss)		1,325,402			139,377			399,570			3,180
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(19,658,532	)		(1,298,723	)		82,574			(494,298	)
Net realized capital gains (losses) on investments		(19,658,532	)		(1,298,723	)		82,574			(494,298	)
Net change in unrealized appreciation/depreciation		5,672,436			(1,289,168	)		(1,191,482	)		626,474
Net Gain (Loss) on Investment		(13,986,096	)		(2,587,891	)		(1,108,908	)		132,176
Increase (decrease) in net assets from operations		(12,660,694	)		(2,448,514	)		(709,338	)		135,356
Increase (decrease) in net assets from contract transactions		(57,723,623	)		(3,635,524	)		(1,676,937	)		(886,766	)
Total increase (decrease) in net assets		(70,384,317	)		(6,084,038	)		(2,386,275	)		(751,410	)
Net Assets as of December 31, 2011	$	280,406,582		$	23,900,048		$	6,918,794		$	6,582,130

See accompanying notes.

37

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA JPMorgan Enhanced Index Subaccount			TA BlackRock Large Cap Value Subaccount			TA AEGON High Yield Bond Subaccount			TA MFS International Equity Subaccount
Net Assets as of January 1, 2010	$	1,283,501		$	8,887,664		$	7,680,613		$	2,443,378
Investment Income:
Dividends		28,507			84,482			1,458,240			37,838
Investment Expenses:
Mortality and expense risk and other charges		26,080			157,856			127,949			35,737
Net investment income (loss)		2,427			(73,374	)		1,330,291			2,101
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(286,671	)		(1,511,066	)		321,301			50,162
Net realized capital gains (losses) on investments		(286,671	)		(1,511,066	)		321,301			50,162
Net change in unrealized appreciation/depreciation		635,234			2,166,608			(738,620	)		178,743
Net Gain (Loss) on Investment		348,563			655,542			(417,319	)		228,905
Increase (decrease) in net assets from operations		350,990			582,168			912,972			231,006
Increase (decrease) in net assets from contract transactions		1,134,613			3,655,334			2,376,603			252,939
Total increase (decrease) in net assets		1,485,603			4,237,502			3,289,575			483,945
Net Assets as of December 31, 2010	$	2,769,104		$	13,125,166		$	10,970,188		$	2,927,323
Investment Income:
Dividends		36,821			195,724			472,222			21,319
Investment Expenses:
Mortality and expense risk and other charges		38,057			182,408			139,457			31,963
Net investment income (loss)		(1,236	)		13,316			332,765			(10,644	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		77,751			502,751			11,587			207,841
Net realized capital gains (losses) on investments		77,751			502,751			11,587			207,841
Net change in unrealized appreciation/depreciation		(167,603	)		(560,991	)		(61,179	)		(445,000	)
Net Gain (Loss) on Investment		(89,852	)		(58,240	)		(49,592	)		(237,159	)
Increase (decrease) in net assets from operations		(91,088	)		(44,924	)		283,173			(247,803	)
Increase (decrease) in net assets from contract transactions		375,821			(606,250	)		(1,918,803	)		(1,065,855	)
Total increase (decrease) in net assets		284,733			(651,174	)		(1,635,630	)		(1,313,658	)
Net Assets as of December 31, 2011	$	3,053,837		$	12,473,992		$	9,334,558		$	1,613,665

See accompanying notes.

38

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA PIMCO Total Return Subaccount			TA Morgan Stanley Capital Growth Subaccount			TA T.Rowe Price Small Cap Subaccount			TA Third Avenue Value Subaccount
Net Assets as of January 1, 2010	$	23,496,283		$	1,999,520		$	3,213,556		$	14,374,054
Investment Income:
Dividends		1,225,372			14,137			—			346,035
Investment Expenses:
Mortality and expense risk and other charges		413,124			29,886			42,766			181,565
Net investment income (loss)		812,248			(15,749	)		(42,766	)		164,470
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		42,871			—			—			—
Realized gain (loss) on investments		830,792			(286,566	)		465,321			(3,222,688	)
Net realized capital gains (losses) on investments		873,663			(286,566	)		465,321			(3,222,688	)
Net change in unrealized appreciation/depreciation		(153,849	)		832,439			558,616			4,614,985
Net Gain (Loss) on Investment		719,814			545,873			1,023,937			1,392,297
Increase (decrease) in net assets from operations		1,532,062			530,124			981,171			1,556,767
Increase (decrease) in net assets from contract transactions		2,919,233			493,655			890,213			(2,471,347	)
Total increase (decrease) in net assets		4,451,295			1,023,779			1,871,384			(914,580	)
Net Assets as of December 31, 2010	$	27,947,578		$	3,023,299		$	5,084,940		$	13,459,474
Investment Income:
Dividends		656,879			—			—			524,035
Investment Expenses:
Mortality and expense risk and other charges		359,985			42,800			83,679			168,577
Net investment income (loss)		296,894			(42,800	)		(83,679	)		355,458
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		748,422			—			—			—
Realized gain (loss) on investments		348,101			514,392			918,495			(83,406	)
Net realized capital gains (losses) on investments		1,096,523			514,392			918,495			(83,406	)
Net change in unrealized appreciation/depreciation		(335,547	)		(772,016	)		(1,240,608	)		(2,218,556	)
Net Gain (Loss) on Investment		760,976			(257,624	)		(322,113	)		(2,301,962	)
Increase (decrease) in net assets from operations		1,057,870			(300,424	)		(405,792	)		(1,946,504	)
Increase (decrease) in net assets from contract transactions		(837,691	)		(307,669	)		(1,224,457	)		(2,557,906	)
Total increase (decrease) in net assets		220,179			(608,093	)		(1,630,249	)		(4,504,410	)
Net Assets as of December 31, 2011	$	28,167,757		$	2,415,206		$	3,454,691		$	8,955,064

See accompanying notes.

39

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA Multi- Managed Balanced Subaccount			TA AllianceBernstein Dynamic Allocation Subaccount			TA WMC Diversified Growth Subaccount			TA AEGON Money Market Subaccount
Net Assets as of January 1, 2010	$	7,007,499		$	2,103,837		$	13,931,793		$	41,246,588
Investment Income:
Dividends		37,484			125,573			38,401			1,831
Investment Expenses:
Mortality and expense risk and other charges		121,278			34,442			180,987			499,804
Net investment income (loss)		(83,794	)		91,131			(142,586	)		(497,973	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(482,570	)		178,157			(1,837,803	)		—
Net realized capital gains (losses) on investments		(482,570	)		178,157			(1,837,803	)		—
Net change in unrealized appreciation/depreciation		2,347,085			(107,228	)		3,703,607			—
Net Gain (Loss) on Investment		1,864,515			70,929			1,865,804			—
Increase (decrease) in net assets from operations		1,780,721			162,060			1,723,218			(497,973	)
Increase (decrease) in net assets from contract transactions		3,318,215			563,246			(1,582,536	)		(11,555,954	)
Total increase (decrease) in net assets		5,098,936			725,306			140,682			(12,053,927	)
Net Assets as of December 31, 2010	$	12,106,435		$	2,829,143		$	14,072,475		$	29,192,661
Investment Income:
Dividends		295,660			20,180			35,710			1,327
Investment Expenses:
Mortality and expense risk and other charges		193,315			41,187			173,666			366,549
Net investment income (loss)		102,345			(21,007	)		(137,956	)		(365,222	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		1,272,405			105,518			(716,912	)		—
Net realized capital gains (losses) on investments		1,272,405			105,518			(716,912	)		—
Net change in unrealized appreciation/depreciation		(1,257,655	)		(83,901	)		98,799			—
Net Gain (Loss) on Investment		14,750			21,617			(618,113	)		—
Increase (decrease) in net assets from operations		117,095			610			(756,069	)		(365,222	)
Increase (decrease) in net assets from contract transactions		731,769			(392,774	)		2,147,761			(2,043,164	)
Total increase (decrease) in net assets		848,864			(392,164	)		1,391,692			(2,408,386	)
Net Assets as of December 31, 2011	$	12,955,299		$	2,436,979		$	15,464,167		$	26,784,275

See accompanying notes.

40

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA Systematic Small/Mid Cap Value Subaccount			TA AEGON U.S. Government Securities - PAM Fund Subaccount			TA AEGON U.S. Government Securities Subaccount			TA Morgan Stanley Mid-Cap Growth Subaccount
Net Assets as of January 1, 2010	$	13,901,798		$	141,080,909		$	22,570,696		$	3,394,567
Investment Income:
Dividends		76,962			3,838,169			553,367			859
Investment Expenses:
Mortality and expense risk and other charges		188,748			1,710,569			283,473			63,613
Net investment income (loss)		(111,786	)		2,127,600			269,894			(62,754	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			3,002,484			432,882			—
Realized gain (loss) on investments		(2,382,804	)		7,563,146			602,609			716,468
Net realized capital gains (losses) on investments		(2,382,804	)		10,565,630			1,035,491			716,468
Net change in unrealized appreciation/depreciation		5,582,896			(8,298,691	)		(752,231	)		698,498
Net Gain (Loss) on Investment		3,200,092			2,266,939			283,260			1,414,966
Increase (decrease) in net assets from operations		3,088,306			4,394,539			553,154			1,352,212
Increase (decrease) in net assets from contract transactions		(985,520	)		(62,436,900	)		2,307,801			2,292,040
Total increase (decrease) in net assets		2,102,786			(58,042,361	)		2,860,955			3,644,252
Net Assets as of December 31, 2010	$	16,004,584		$	83,038,548		$	25,431,651		$	7,038,819
Investment Income:
Dividends		5,496			2,572,054			313,503			13,203
Investment Expenses:
Mortality and expense risk and other charges		212,199			1,159,515			216,404			91,776
Net investment income (loss)		(206,703	)		1,412,539			97,099			(78,573	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			1,748,166			213,081			—
Realized gain (loss) on investments		1,853,216			225,913			537,116			1,160,194
Net realized capital gains (losses) on investments		1,853,216			1,974,079			750,197			1,160,194
Net change in unrealized appreciation/depreciation		(2,476,767	)		432,543			(17,039	)		(1,850,030	)
Net Gain (Loss) on Investment		(623,551	)		2,406,622			733,158			(689,836	)
Increase (decrease) in net assets from operations		(830,254	)		3,819,161			830,257			(768,409	)
Increase (decrease) in net assets from contract transactions		(2,447,788	)		40,300,207			(14,407,833	)		3,799,403
Total increase (decrease) in net assets		(3,278,042	)		44,119,368			(13,577,576	)		3,030,994
Net Assets as of December 31, 2011	$	12,726,542		$	127,157,916		$	11,854,075		$	10,069,813

See accompanying notes.

41

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA Vanguard ETF Index - Balanced Subaccount			TA Vanguard ETF Index - Growth Subaccount			TA Efficient Markets Subaccount			TA Janus Balanced Subaccount
Net Assets as of January 1, 2010	$	815,734		$	1,571,591		$	306,182		$	432,758
Investment Income:
Dividends		7,947			19,294			2,896			1,470
Investment Expenses:
Mortality and expense risk and other charges		10,619			22,674			5,978			13,846
Net investment income (loss)		(2,672	)		(3,380	)		(3,082	)		(12,376	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		7,276			16,397			7,818			3,512
Realized gain (loss) on investments		25,476			350			22,521			(15,924	)
Net realized capital gains (losses) on investments		32,752			16,747			30,339			(12,412	)
Net change in unrealized appreciation/depreciation		36,155			189,493			24,768			66,264
Net Gain (Loss) on Investment		68,907			206,240			55,107			53,852
Increase (decrease) in net assets from operations		66,235			202,860			52,025			41,476
Increase (decrease) in net assets from contract transactions		(97,467	)		398,658			290,145			806,403
Total increase (decrease) in net assets		(31,232	)		601,518			342,170			847,879
Net Assets as of December 31, 2010	$	784,502		$	2,173,109		$	648,352		$	1,280,637
Investment Income:
Dividends		8,172			33,148			6,823			2,634
Investment Expenses:
Mortality and expense risk and other charges		10,750			29,166			12,163			21,598
Net investment income (loss)		(2,578	)		3,982			(5,340	)		(18,964	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		8,664			23,982			12,700			—
Realized gain (loss) on investments		21,463			83,633			66,598			14,898
Net realized capital gains (losses) on investments		30,127			107,615			79,298			14,898
Net change in unrealized appreciation/depreciation		(28,256	)		(171,894	)		(123,111	)		(248,285	)
Net Gain (Loss) on Investment		1,871			(64,279	)		(43,813	)		(233,387	)
Increase (decrease) in net assets from operations		(707	)		(60,297	)		(49,153	)		(252,351	)
Increase (decrease) in net assets from contract transactions		(49,468	)		24,261			189,951			126,416
Total increase (decrease) in net assets		(50,175	)		(36,036	)		140,798			(125,935	)
Net Assets as of December 31, 2011	$	734,327		$	2,137,073		$	789,150		$	1,154,702

See accompanying notes.

42

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA Hanlon Growth Subaccount			TA Hanlon Growth and Income Subaccount			TA Hanlon Balanced Subaccount			TA Hanlon Income Subaccount
Net Assets as of January 1, 2010	$	434,817		$	709,748		$	398,768		$	3,862,004
Investment Income:
Dividends		8,170			10,262			5,354			21,147
Investment Expenses:
Mortality and expense risk and other charges		11,339			22,243			19,622			143,468
Net investment income (loss)		(3,169	)		(11,981	)		(14,268	)		(122,321	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		5,431			5,935			2,617			35,616
Realized gain (loss) on investments		(36,889	)		(74,491	)		(23,321	)		12,281
Net realized capital gains (losses) on investments		(31,458	)		(68,556	)		(20,704	)		47,897
Net change in unrealized appreciation/depreciation		(2,300	)		8,617			(25,344	)		(57,686	)
Net Gain (Loss) on Investment		(33,758	)		(59,939	)		(46,048	)		(9,789	)
Increase (decrease) in net assets from operations		(36,927	)		(71,920	)		(60,316	)		(132,110	)
Increase (decrease) in net assets from contract transactions		361,653			880,504			1,225,482			8,664,486
Total increase (decrease) in net assets		324,726			808,584			1,165,166			8,532,376
Net Assets as of December 31, 2010	$	759,543		$	1,518,332		$	1,563,934		$	12,394,380
Investment Income:
Dividends		14,611			19,457			18,254			164,849
Investment Expenses:
Mortality and expense risk and other charges		13,256			20,595			21,201			141,951
Net investment income (loss)		1,355			(1,138	)		(2,947	)		22,898
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		71			—			—			54,188
Realized gain (loss) on investments		(45,516	)		(24,333	)		(18,755	)		25,418
Net realized capital gains (losses) on investments		(45,445	)		(24,333	)		(18,755	)		79,606
Net change in unrealized appreciation/depreciation		(105,633	)		(111,953	)		(51,975	)		33,978
Net Gain (Loss) on Investment		(151,078	)		(136,286	)		(70,730	)		113,584
Increase (decrease) in net assets from operations		(149,723	)		(137,424	)		(73,677	)		136,482
Increase (decrease) in net assets from contract transactions		117,954			(285,629	)		(98,008	)		(2,558,964	)
Total increase (decrease) in net assets		(31,769	)		(423,053	)		(171,685	)		(2,422,482	)
Net Assets as of December 31, 2011	$	727,774		$	1,095,279		$	1,392,249		$	9,971,898

See accompanying notes.

43

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA Vanguard ETF Index - Conservative Subaccount			TA Vanguard ETF Index - Aggressive Growth Subaccount			TA Jennison Growth Subaccount (1)			TA AEGON Tactical Vanguard ETF-Growth Subaccount (1)
Net Assets as of January 1, 2010	$	—		$	—		$	—		$	—
Investment Income:
Dividends		29			—			615			—
Investment Expenses:
Mortality and expense risk and other charges		1,385			16			23,902			—
Net investment income (loss)		(1,356	)		(16	)		(23,287	)		—
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		43			1			(65,798	)		—
Net realized capital gains (losses) on investments		43			1			(65,798	)		—
Net change in unrealized appreciation/depreciation		11,090			410			213,820			—
Net Gain (Loss) on Investment		11,133			411			148,022			—
Increase (decrease) in net assets from operations		9,777			395			124,735			—
Increase (decrease) in net assets from contract transactions		222,665			31,818			2,739,442			—
Total increase (decrease) in net assets		232,442			32,213			2,864,177			—
Net Assets as of December 31, 2010	$	232,442		$	32,213		$	2,864,177		$	—
Investment Income:
Dividends		1,944			395			—			—
Investment Expenses:
Mortality and expense risk and other charges		4,419			951			46,095			3,584
Net investment income (loss)		(2,475	)		(556	)		(46,095	)		(3,584	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		864			22			—			—
Realized gain (loss) on investments		690			(1,401	)		133,352			(397	)
Net realized capital gains (losses) on investments		1,554			(1,379	)		133,352			(397	)
Net change in unrealized appreciation/depreciation		6,481			(4,992	)		(390,761	)		(51,231	)
Net Gain (Loss) on Investment		8,035			(6,371	)		(257,409	)		(51,628	)
Increase (decrease) in net assets from operations		5,560			(6,927	)		(303,504	)		(55,212	)
Increase (decrease) in net assets from contract transactions		111,136			26,922			1,393,298			4,809,003
Total increase (decrease) in net assets		116,696			19,995			1,089,794			4,753,791
Net Assets as of December 31, 2011	$	349,138		$	52,208		$	3,953,971		$	4,753,791

See accompanying notes.

44

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	TA AEGON Tactical Vanguard ETF-Conservative Subaccount (1)			Fidelity - VIP Index 500 Subaccount			ProFund VP Bull Subaccount			ProFund VP Money Market Subaccount
Net Assets as of January 1, 2010	$	—		$	3,709,532		$	5,310,349		$	11,008,933
Investment Income:
Dividends		—			64,151			6,902			2,240
Investment Expenses:
Mortality and expense risk and other charges		—			49,987			60,457			147,760
Net investment income (loss)		—			14,164			(53,555	)		(145,520	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			71,742			—			—
Realized gain (loss) on investments		—			(818,722	)		556,285			—
Net realized capital gains (losses) on investments		—			(746,980	)		556,285			—
Net change in unrealized appreciation/depreciation		—			1,038,143			(158,335	)		—
Net Gain (Loss) on Investment		—			291,163			397,950			—
Increase (decrease) in net assets from operations		—			305,327			344,395			(145,520	)
Increase (decrease) in net assets from contract transactions		—			(8,494	)		(2,476,835	)		(5,742,690	)
Total increase (decrease) in net assets		—			296,833			(2,132,440	)		(5,888,210	)
Net Assets as of December 31, 2010	$	—		$	4,006,365		$	3,177,909		$	5,120,723
Investment Income:
Dividends		—			63,921			—			1,575
Investment Expenses:
Mortality and expense risk and other charges		810			51,685			23,653			109,597
Net investment income (loss)		(810	)		12,236			(23,653	)		(108,022	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			93,971			40,232			—
Realized gain (loss) on investments		—			293,354			280,596			—
Net realized capital gains (losses) on investments		—			387,325			320,828			—
Net change in unrealized appreciation/depreciation		8,333			(434,511	)		(367,437	)		—
Net Gain (Loss) on Investment		8,333			(47,186	)		(46,609	)		—
Increase (decrease) in net assets from operations		7,523			(34,950	)		(70,262	)		(108,022	)
Increase (decrease) in net assets from contract transactions		1,143,533			(435,637	)		(2,643,878	)		1,863,602
Total increase (decrease) in net assets		1,151,056			(470,587	)		(2,714,140	)		1,755,580
Net Assets as of December 31, 2011	$	1,151,056		$	3,535,778		$	463,769		$	6,876,303

See accompanying notes.

45

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	ProFund VP NASDAQ-100 Subaccount			ProFund VP Short Small-Cap Subaccount			ProFund VP Small-Cap Subaccount			ProFund VP Japan Subaccount
Net Assets as of January 1, 2010	$	1,139,258		$	174,785		$	174,153		$	415,929
Investment Income:
Dividends		—			—			—			—
Investment Expenses:
Mortality and expense risk and other charges		15,807			2,864			4,308			1,560
Net investment income (loss)		(15,807	)		(2,864	)		(4,308	)		(1,560	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		56,968			(63,346	)		(41,212	)		5,323
Net realized capital gains (losses) on investments		56,968			(63,346	)		(41,212	)		5,323
Net change in unrealized appreciation/depreciation		43,993			2,306			46,300			(20,665	)
Net Gain (Loss) on Investment		100,961			(61,040	)		5,088			(15,342	)
Increase (decrease) in net assets from operations		85,154			(63,904	)		780			(16,902	)
Increase (decrease) in net assets from contract transactions		278,622			25,878			434,330			(163,005	)
Total increase (decrease) in net assets		363,776			(38,026	)		435,110			(179,907	)
Net Assets as of December 31, 2010	$	1,503,034		$	136,759		$	609,263		$	236,022
Investment Income:
Dividends		—			—			—			—
Investment Expenses:
Mortality and expense risk and other charges		23,510			1,681			6,391			1,833
Net investment income (loss)		(23,510	)		(1,681	)		(6,391	)		(1,833	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		72,105			(22,406	)		(61,601	)		(30,008	)
Net realized capital gains (losses) on investments		72,105			(22,406	)		(61,601	)		(30,008	)
Net change in unrealized appreciation/depreciation		(153,861	)		8,825			(51,762	)		(4,505	)
Net Gain (Loss) on Investment		(81,756	)		(13,581	)		(113,363	)		(34,513	)
Increase (decrease) in net assets from operations		(105,266	)		(15,262	)		(119,754	)		(36,346	)
Increase (decrease) in net assets from contract transactions		940,577			(40,858	)		(238,600	)		96,015
Total increase (decrease) in net assets		835,311			(56,120	)		(358,354	)		59,669
Net Assets as of December 31, 2011	$	2,338,345		$	80,639		$	250,909		$	295,691

See accompanying notes.

46

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	ProFund VP UltraSmall-Cap Subaccount			ProFund VP Basic Materials Subaccount			ProFund VP Pharmaceuticals Subaccount			ProFund VP Telecommunications Subaccount
Net Assets as of January 1, 2010	$	527,755		$	2,974,600		$	283,307		$	53,510
Investment Income:
Dividends		—			13,072			27,853			18,015
Investment Expenses:
Mortality and expense risk and other charges		8,484			29,450			4,571			5,185
Net investment income (loss)		(8,484	)		(16,378	)		23,282			12,830
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		46,249			158,037			(51,541	)		21,459
Net realized capital gains (losses) on investments		46,249			158,037			(51,541	)		21,459
Net change in unrealized appreciation/depreciation		84,544			268,817			(12,702	)		102,475
Net Gain (Loss) on Investment		130,793			426,854			(64,243	)		123,934
Increase (decrease) in net assets from operations		122,309			410,476			(40,961	)		136,764
Increase (decrease) in net assets from contract transactions		566,997			(416,719	)		(38,883	)		462,435
Total increase (decrease) in net assets		689,306			(6,243	)		(79,844	)		599,199
Net Assets as of December 31, 2010	$	1,217,061		$	2,968,357		$	203,463		$	652,709
Investment Income:
Dividends		—			3,689			2,705			20,663
Investment Expenses:
Mortality and expense risk and other charges		10,324			37,937			5,214			7,040
Net investment income (loss)		(10,324	)		(34,248	)		(2,509	)		13,623
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		219,368			—			—			—
Realized gain (loss) on investments		(346,235	)		300,817			(15,738	)		103,163
Net realized capital gains (losses) on investments		(126,867	)		300,817			(15,738	)		103,163
Net change in unrealized appreciation/depreciation		(80,820	)		(809,243	)		39,126			(105,072	)
Net Gain (Loss) on Investment		(207,687	)		(508,426	)		23,388			(1,909	)
Increase (decrease) in net assets from operations		(218,011	)		(542,674	)		20,879			11,714
Increase (decrease) in net assets from contract transactions		(503,636	)		(716,365	)		508,696			(614,673	)
Total increase (decrease) in net assets		(721,647	)		(1,259,039	)		529,575			(602,959	)
Net Assets as of December 31, 2011	$	495,414		$	1,709,318		$	733,038		$	49,750

See accompanying notes.

47

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	ProFund VP Asia 30 Subaccount			ProFund VP Oil & Gas Subaccount			ProFund VP U.S. Government Plus Subaccount			ProFund VP Consumer Services Subaccount
Net Assets as of January 1, 2010	$	3,546,588		$	3,198,315		$	1,039,949		$	66,232
Investment Income:
Dividends		2,333			13,025			6,776			—
Investment Expenses:
Mortality and expense risk and other charges		37,246			43,746			19,384			2,926
Net investment income (loss)		(34,913	)		(30,721	)		(12,608	)		(2,926	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		64,316			(269,410	)		(68,045	)		4,690
Net realized capital gains (losses) on investments		64,316			(269,410	)		(68,045	)		4,690
Net change in unrealized appreciation/depreciation		187,744			923,132			185,825			8,133
Net Gain (Loss) on Investment		252,060			653,722			117,780			12,823
Increase (decrease) in net assets from operations		217,147			623,001			105,172			9,897
Increase (decrease) in net assets from contract transactions		(1,010,104	)		367,798			(243,230	)		387,611
Total increase (decrease) in net assets		(792,957	)		990,799			(138,058	)		397,508
Net Assets as of December 31, 2010	$	2,753,631		$	4,189,114		$	901,891		$	463,740
Investment Income:
Dividends		952			6,009			1,484			—
Investment Expenses:
Mortality and expense risk and other charges		31,959			57,360			13,761			5,442
Net investment income (loss)		(31,007	)		(51,351	)		(12,277	)		(5,442	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		160,160			—			—			—
Realized gain (loss) on investments		(576,762	)		745,794			247,146			32,344
Net realized capital gains (losses) on investments		(416,602	)		745,794			247,146			32,344
Net change in unrealized appreciation/depreciation		(358,861	)		(873,862	)		271,880			11
Net Gain (Loss) on Investment		(775,463	)		(128,068	)		519,026			32,355
Increase (decrease) in net assets from operations		(806,470	)		(179,419	)		506,749			26,913
Increase (decrease) in net assets from contract transactions		(1,026,189	)		(1,449,538	)		(349,481	)		181,390
Total increase (decrease) in net assets		(1,832,659	)		(1,628,957	)		157,268			208,303
Net Assets as of December 31, 2011	$	920,972		$	2,560,157		$	1,059,159		$	672,043

See accompanying notes.

48

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	ProFund VP Precious Metals Subaccount			ProFund VP Europe 30 Subaccount			ProFund VP Short NASDAQ-100 Subaccount			ProFund VP Utilities Subaccount
Net Assets as of January 1, 2010	$	2,810,008		$	174,412		$	293,809		$	1,416,457
Investment Income:
Dividends		—			1,285			—			33,709
Investment Expenses:
Mortality and expense risk and other charges		46,757			1,398			3,941			18,425
Net investment income (loss)		(46,757	)		(113	)		(3,941	)		15,284
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		510,303			5,538			(67,654	)		34,325
Net realized capital gains (losses) on investments		510,303			5,538			(67,654	)		34,325
Net change in unrealized appreciation/depreciation		524,406			(4,277	)		2,513			20,211
Net Gain (Loss) on Investment		1,034,709			1,261			(65,141	)		54,536
Increase (decrease) in net assets from operations		987,952			1,148			(69,082	)		69,820
Increase (decrease) in net assets from contract transactions		740,948			(97,647	)		(86,111	)		(31,769	)
Total increase (decrease) in net assets		1,728,900			(96,499	)		(155,193	)		38,051
Net Assets as of December 31, 2010	$	4,538,908		$	77,913		$	138,616		$	1,454,508
Investment Income:
Dividends		—			487			—			36,743
Investment Expenses:
Mortality and expense risk and other charges		56,154			2,592			2,068			22,770
Net investment income (loss)		(56,154	)		(2,105	)		(2,068	)		13,973
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		65,753			—			—			—
Realized gain (loss) on investments		500,643			(103,781	)		(27,316	)		117,380
Net realized capital gains (losses) on investments		566,396			(103,781	)		(27,316	)		117,380
Net change in unrealized appreciation/depreciation		(1,448,066	)		702			4,862			79,434
Net Gain (Loss) on Investment		(881,670	)		(103,079	)		(22,454	)		196,814
Increase (decrease) in net assets from operations		(937,824	)		(105,184	)		(24,522	)		210,787
Increase (decrease) in net assets from contract transactions		(394,013	)		64,949			44,617			571,059
Total increase (decrease) in net assets		(1,331,837	)		(40,235	)		20,095			781,846
Net Assets as of December 31, 2011	$	3,207,071		$	37,678		$	158,711		$	2,236,354

See accompanying notes.

49

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	ProFund VP Financials Subaccount			ProFund VP Small-Cap Value Subaccount			ProFund VP Mid-Cap Subaccount			ProFund VP Short Emerging Markets Subaccount
Net Assets as of January 1, 2010	$	941,266		$	538,314		$	1,774,092		$	182,034
Investment Income:
Dividends		2,407			732			—			—
Investment Expenses:
Mortality and expense risk and other charges		12,087			7,355			20,381			3,558
Net investment income (loss)		(9,680	)		(6,623	)		(20,381	)		(3,558	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			141,859			—
Realized gain (loss) on investments		70,783			90,163			85,852			(22,013	)
Net realized capital gains (losses) on investments		70,783			90,163			227,711			(22,013	)
Net change in unrealized appreciation/depreciation		(22,239	)		(1,865	)		28,119			(7,114	)
Net Gain (Loss) on Investment		48,544			88,298			255,830			(29,127	)
Increase (decrease) in net assets from operations		38,864			81,675			235,449			(32,685	)
Increase (decrease) in net assets from contract transactions		(144,838	)		(469,546	)		(1,151,503	)		21,737
Total increase (decrease) in net assets		(105,974	)		(387,871	)		(916,054	)		(10,948	)
Net Assets as of December 31, 2010	$	835,292		$	150,443		$	858,038		$	171,086
Investment Income:
Dividends		—			—			—			—
Investment Expenses:
Mortality and expense risk and other charges		8,531			7,072			8,323			1,728
Net investment income (loss)		(8,531	)		(7,072	)		(8,323	)		(1,728	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			68,222			—
Realized gain (loss) on investments		(61,027	)		24,303			(3,352	)		17,234
Net realized capital gains (losses) on investments		(61,027	)		24,303			64,870			17,234
Net change in unrealized appreciation/depreciation		(65,707	)		(15,892	)		(103,191	)		2,922
Net Gain (Loss) on Investment		(126,734	)		8,411			(38,321	)		20,156
Increase (decrease) in net assets from operations		(135,265	)		1,339			(46,644	)		18,428
Increase (decrease) in net assets from contract transactions		(433,218	)		103,402			(20,085	)		(103,783	)
Total increase (decrease) in net assets		(568,483	)		104,741			(66,729	)		(85,355	)
Net Assets as of December 31, 2011	$	266,809		$	255,184		$	791,309		$	85,731

See accompanying notes.

50

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	ProFund VP Falling U.S. Dollar Subaccount			ProFund VP International Subaccount			ProFund VP Emerging Markets Subaccount			ProFund VP Short International Subaccount
Net Assets as of January 1, 2010	$	485,391		$	3,095,622		$	5,785,519		$	256,402
Investment Income:
Dividends		—			—			—			—
Investment Expenses:
Mortality and expense risk and other charges		4,855			31,496			64,414			3,087
Net investment income (loss)		(4,855	)		(31,496	)		(64,414	)		(3,087	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			139,614			77,581			—
Realized gain (loss) on investments		(24,571	)		(239,451	)		35,239			(89,454	)
Net realized capital gains (losses) on investments		(24,571	)		(99,837	)		112,820			(89,454	)
Net change in unrealized appreciation/depreciation		(10,480	)		(160,439	)		37,049			57,645
Net Gain (Loss) on Investment		(35,051	)		(260,276	)		149,869			(31,809	)
Increase (decrease) in net assets from operations		(39,906	)		(291,772	)		85,455			(34,896	)
Increase (decrease) in net assets from contract transactions		(219,664	)		460,577			1,229,772			(156,868	)
Total increase (decrease) in net assets		(259,570	)		168,805			1,315,227			(191,764	)
Net Assets as of December 31, 2010	$	225,821		$	3,264,427		$	7,100,746		$	64,638
Investment Income:
Dividends		—			—			—			—
Investment Expenses:
Mortality and expense risk and other charges		3,435			25,495			47,327			1,449
Net investment income (loss)		(3,435	)		(25,495	)		(47,327	)		(1,449	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		9,785			(174,534	)		(147,975	)		7,865
Net realized capital gains (losses) on investments		9,785			(174,534	)		(147,975	)		7,865
Net change in unrealized appreciation/depreciation		(12,262	)		(147,871	)		(732,373	)		623
Net Gain (Loss) on Investment		(2,477	)		(322,405	)		(880,348	)		8,488
Increase (decrease) in net assets from operations		(5,912	)		(347,900	)		(927,675	)		7,039
Increase (decrease) in net assets from contract transactions		(24,472	)		(2,356,063	)		(4,789,935	)		(22,537	)
Total increase (decrease) in net assets		(30,384	)		(2,703,963	)		(5,717,610	)		(15,498	)
Net Assets as of December 31, 2011	$	195,437		$	560,464		$	1,383,136		$	49,140

See accompanying notes.

51

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2010 and 2011, Except as Noted

	Access VP High Yield Subaccount			AllianceBernstein Balanced Wealth Strategy Subaccount			Franklin Templeton VIP Founding Funds Allocation Subaccount
Net Assets as of January 1, 2010	$	4,369,187		$	732,497		$	1,569,254
Investment Income:
Dividends		219,259			18,114			41,595
Investment Expenses:
Mortality and expense risk and other charges		30,053			11,622			27,762
Net investment income (loss)		189,206			6,492			13,833
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			157
Realized gain (loss) on investments		321,312			88,069			240,467
Net realized capital gains (losses) on investments		321,312			88,069			240,624
Net change in unrealized appreciation/depreciation		(337,710	)		(24,406	)		(129,090	)
Net Gain (Loss) on Investment		(16,398	)		63,663			111,534
Increase (decrease) in net assets from operations		172,808			70,155			125,367
Increase (decrease) in net assets from contract transactions		(2,778,194	)		(11,006	)		336,682
Total increase (decrease) in net assets		(2,605,386	)		59,149			462,049
Net Assets as of December 31, 2010	$	1,763,801		$	791,646		$	2,031,303
Investment Income:
Dividends		16,717			22,514			345
Investment Expenses:
Mortality and expense risk and other charges		24,421			14,136			30,747
Net investment income (loss)		(7,704	)		8,378			(30,402	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		49,894			—			—
Realized gain (loss) on investments		103,308			32,592			83,267
Net realized capital gains (losses) on investments		153,202			32,592			83,267
Net change in unrealized appreciation/depreciation		(134,629	)		(97,639	)		(139,724	)
Net Gain (Loss) on Investment		18,573			(65,047	)		(56,457	)
Increase (decrease) in net assets from operations		10,869			(56,669	)		(86,859	)
Increase (decrease) in net assets from contract transactions		(390,577	)		70,042			(34,852	)
Total increase (decrease) in net assets		(379,708	)		13,373			(121,711	)
Net Assets as of December 31, 2011	$	1,384,093		$	805,019		$	1,909,592

See accompanying notes.

52

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

1. Organization and Summary of Significant Accounting Policies

Organization

Separate Account VA U (the Separate Account) is a segregated investment account of Western Reserve Life Assurance Co. of Ohio (WRL), an indirect wholly owned subsidiary of AEGON N.V., a holding company organized under the laws of The Netherlands.

The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust pursuant to provisions of the Investment Company Act of 1940. The Separate Account consists of multiple investment subaccounts. Each subaccount invests exclusively in the corresponding portfolio of a Mutual Fund. Each Mutual Fund is registered as an open-end management investment company under the Investment Company Act of 1940, as amended. Activity in these specified investment subaccounts is available to contract owners of WRL Freedom Premier® III Variable Annuity.

The TA AEGON U.S. Government Securities-PAM Fund was included in the Subaccount Investments by Mutual Fund listing only to facilitate a contract owner purchase option.

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
Transamerica Series Trust - Service Class	Transamerica Series Trust - Service Class
TA JPMorgan Core Bond	Transamerica JPMorgan Core Bond VP
TA Asset Allocation - Conservative	Transamerica Asset Allocation - Conservative VP
TA Asset Allocation - Growth	Transamerica Asset Allocation - Growth VP
TA Asset Allocation - Moderate	Transamerica Asset Allocation - Moderate VP
TA Asset Allocation - Moderate Growth	Transamerica Asset Allocation - Moderate Growth VP
TA International Moderate Growth	Transamerica International Moderate Growth VP
TA Clarion Global Real Estate Sec	Transamerica Clarion Global Real Estate Sec VP
TA JPMorgan Tactical Allocation	Transamerica JPMorgan Tactical Allocation VP
TA JPMorgan Enhanced Index	Transamerica JPMorgan Enhanced Index VP
TA BlackRock Large Cap Value	Transamerica BlackRock Large Cap Value VP
TA AEGON High Yield Bond	Transamerica AEGON High Yield Bond VP
TA MFS International Equity	Transamerica MFS International Equity VP
TA PIMCO Total Return	Transamerica PIMCO Total Return VP
TA Morgan Stanley Capital Growth	Transamerica Morgan Stanley Capital Growth VP
TA T.Rowe Price Small Cap	Transamerica T.Rowe Price Small Cap VP
TA Third Avenue Value	Transamerica Third Avenue Value VP
TA Multi-Managed Balanced	Transamerica Multi-Managed Balanced VP
TA AllianceBernstein Dynamic Allocation	Transamerica AllianceBernstein Dynamic Allocation VP
TA WMC Diversified Growth	Transamerica WMC Diversified Growth VP
TA AEGON Money Market	Transamerica AEGON Money Market VP
TA Systematic Small/Mid Cap Value	Transamerica Systematic Small/Mid Cap Value VP
TA AEGON U.S. Government Securities - PAM Fund	Transamerica AEGON U.S. Government Securities VP
TA AEGON U.S. Government Securities	Transamerica AEGON U.S. Government Securities VP
TA Morgan Stanley Mid-Cap Growth	Transamerica Morgan Stanley Mid-Cap Growth VP
TA Vanguard ETF Index - Balanced	Transamerica Index 50 VP
TA Vanguard ETF Index - Growth	Transamerica Index 75 VP

53

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund (continued)

Subaccount	Mutual Fund
Transamerica Series Trust - Service Class	Transamerica Series Trust - Service Class
TA Efficient Markets	Transamerica Efficient Markets VP
TA Janus Balanced	Transamerica Janus Balanced VP
TA Hanlon Growth	Transamerica Hanlon Growth VP
TA Hanlon Growth and Income	Transamerica Hanlon Growth and Income VP
TA Hanlon Balanced	Transamerica Hanlon Balanced VP
TA Hanlon Income	Transamerica Hanlon Income VP
TA Vanguard ETF Index - Conservative	Transamerica Index 35 VP
TA Vanguard ETF Index - Aggressive Growth	Transamerica Index 100 VP
TA Jennison Growth	Transamerica Jennison Growth VP
TA AEGON Tactical Vanguard ETF-Growth	Transamerica AEGON Active Asset Allocation-Moderate Growth VP
TA AEGON Tactical Vanguard ETF-Conservative	Transamerica AEGON Active Asset Allocation-Conservative VP
Fidelity® Variable Insurance Products Fund-Service Class 2:	Fidelity® Variable Insurance Products Fund-Service Class 2:
Fidelity - VIP Index 500	Fidelity VIP Index 500 Portfolio
ProFunds	ProFunds
ProFund VP Bull	ProFund VP Bull
ProFund VP Money Market	ProFund VP Money Market
ProFund VP NASDAQ-100	ProFund VP NASDAQ-100
ProFund VP Short Small-Cap	ProFund VP Short Small-Cap
ProFund VP Small-Cap	ProFund VP Small-Cap
ProFund VP Japan	ProFund VP Japan
ProFund VP UltraSmall-Cap	ProFund VP UltraSmall-Cap
ProFund VP Basic Materials	ProFund VP Basic Materials
ProFund VP Pharmaceuticals	ProFund VP Pharmaceuticals
ProFund VP Telecommunications	ProFund VP Telecommunications
ProFund VP Asia 30	ProFund VP Asia 30
ProFund VP Oil & Gas	ProFund VP Oil & Gas
ProFund VP U.S. Government Plus	ProFund VP U.S. Government Plus
ProFund VP Consumer Services	ProFund VP Consumer Services
ProFund VP Precious Metals	ProFund VP Precious Metals
ProFund VP Europe 30	ProFund VP Europe 30
ProFund VP Short NASDAQ-100	ProFund VP Short NASDAQ-100
ProFund VP Utilities	ProFund VP Utilities
ProFund VP Financials	ProFund VP Financials
ProFund VP Small-Cap Value	ProFund VP Small-Cap Value
ProFund VP Mid-Cap	ProFund VP Mid-Cap

54

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund (continued)

Subaccount	Mutual Fund
ProFunds	ProFunds
ProFund VP Short Emerging Markets	ProFund VP Short Emerging Markets
ProFund VP Falling U.S. Dollar	ProFund VP Falling U.S. Dollar
ProFund VP International	ProFund VP International
ProFund VP Emerging Markets	ProFund VP Emerging Markets
ProFund VP Short International	ProFund VP Short International
Access One Trust	Access One Trust
Access VP High Yield	Access VP High Yield FundSM
AllianceBernstein Variable Products Series Fund, Inc. - Class B	AllianceBernstein Variable Products Series Fund, Inc. - Class B
AllianceBernstein Balanced Wealth Strategy	AllianceBernstein Balanced Wealth Strategy Portfolio
Franklin Templeton Variable Insurance Products Trust - Class 4	Franklin Templeton Variable Insurance Products Trust - Class 4
Franklin Templeton VIP Founding Funds Allocation	Franklin Templeton VIP Founding Funds Allocation Fund

Each period reported on reflects a full twelve month period except as follows:

Subaccount	Inception Date
TA AEGON Tactical Vanguard ETF-Growth	December 8, 2011
TA AEGON Tactical Vanguard ETF-Conservative	December 8, 2011
TA Jennison Growth	April 29, 2010
TA Janus Balanced	November 19, 2009
TA Hanlon Growth	November 19, 2009
TA Hanlon Growth and Income	November 19, 2009
TA Hanlon Balanced	November 19, 2009
TA Hanlon Income	November 19, 2009
TA Vanguard ETF Index - Conservative	November 19, 2009
TA Vanguard ETF Index - Aggressive Growth	November 19, 2009
TA Efficient Markets	November 10, 2008
AllianceBernstein Balanced Wealth Strategy	November 10, 2008
Franklin Templeton VIP Founding Funds Allocation	November 10, 2008
TA Vanguard ETF Index - Balanced	May 1, 2008
TA Vanguard ETF Index - Growth	May 1, 2008
ProFund VP Japan	September 4, 2007
ProFund VP UltraSmall-Cap	September 4, 2007
ProFund VP Basic Materials	September 4, 2007
ProFund VP Pharmaceuticals	September 4, 2007
ProFund VP Telecommunications	September 4, 2007
ProFund VP Asia 30	September 4, 2007
ProFund VP Oil & Gas	September 4, 2007
ProFund VP U.S. Government Plus	September 4, 2007

55

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

1. Organization and Summary of Significant Accounting Policies (continued)

Each period reported on reflects a full twelve month period except as follows:

Subaccount	Inception Date
ProFund VP Consumer Services	September 4, 2007
ProFund VP Precious Metals	September 4, 2007
ProFund VP Europe 30	September 4, 2007
ProFund VP Short NASDAQ-100	September 4, 2007
ProFund VP Utilities	September 4, 2007
ProFund VP Financials	September 4, 2007
ProFund VP Small-Cap Value	September 4, 2007
ProFund VP Mid-Cap	September 4, 2007
ProFund VP Short Emerging Markets	September 4, 2007
ProFund VP Falling U.S. Dollar	September 4, 2007
ProFund VP International	September 4, 2007
ProFund VP Emerging Markets	September 4, 2007
ProFund VP Short International	September 4, 2007
Access VP High Yield	September 4, 2007
ProFund VP Bull	June 21, 2007
ProFund VP Money Market	June 21, 2007
ProFund VP NASDAQ-100	June 21, 2007
ProFund VP Short Small-Cap	June 21, 2007
ProFund VP Small-Cap	June 21, 2007
TA MFS International Equity	May 1, 2007

Effective December 12, 2011, “Transamerica” has been changed to “TA” and “VP” has been removed from the Subaccount names.

The following Subaccount name changes were made effective during the fiscal year ended December 31, 2011:

Subaccount	Formerly
TA Vanguard ETF Index - Balanced	TA Index 50
TA Vanguard ETF Index - Growth	TA Index 75
TA Vanguard ETF Index - Conservative	TA Index 35
TA Vanguard ETF Index - Aggressive Growth	TA Index 100

56

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

1. Organization and Summary of Significant Accounting Policies (continued)

The following Mutual Fund name changes were made effective during the fiscal year ended December 31, 2011:

Mutual Fund	Formerly
Transamerica JPMorgan Tactical Allocation VP	Transamerica Federated Market Opportunities VP
Transamerica Morgan Stanley Capital Growth VP	Transamerica Focus VP
Transamerica Multi-Managed Balanced VP	Transamerica Balanced VP
Transamerica AEGON Money Market VP	Transamerica Money Market VP
Transamerica Systematic Small/Mid Cap Value VP	Transamerica Small/Mid Cap Value VP
Transamerica AEGON U.S. Government Securities VP	Transamerica U.S. Government Securities VP
Transamerica Janus Balanced VP	Transamerica Foxhall Global Hard Assets VP
Transamerica Hanlon Income VP	Transamerica Hanlon Managed Income VP

The following Mutual Funds merged during the fiscal year ended December 31, 2011.

Mutual Fund	Formerly
Transamerica WMC Diversified Growth VP	Transamerica Diversified Equity VP
Transamerica Morgan Stanley Mid-Cap Growth VP	Transamerica Growth Opportunities VP
Transamerica AEGON Active Asset Allocation-Moderate Growth VP	Transamerica Foxhall Global Growth VP
Transamerica AEGON Active Asset Allocation-Moderate Growth VP	Transamerica Foxhall Emerging Markets/Pacific Rim VP
Transamerica AEGON Active Asset Allocation-Conservative VP	Transamerica Foxhall Global Conservative VP

Investments

Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Funds as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2011.

Realized capital gains and losses from sales of shares in the Separate Account are determined on the first-in, first-out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income is recorded on the ex-dividend date. Unrealized gains or losses from investments in the Mutual Funds are included in the Statements of Operations and Changes in Net Assets.

Dividends

Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.

Accounting Policy

The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.

57

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

2. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2011 were as follows:

Subaccount	Purchases		Sales
TA JPMorgan Core Bond	$	8,587,138	$	4,691,751
TA Asset Allocation - Conservative		14,212,350		24,355,021
TA Asset Allocation - Growth		12,158,845		30,654,450
TA Asset Allocation - Moderate		11,819,331		35,449,947
TA Asset Allocation - Moderate Growth		18,308,481		74,706,297
TA International Moderate Growth		2,150,602		5,646,770
TA Clarion Global Real Estate Sec		3,122,023		4,399,394
TA JPMorgan Tactical Allocation		2,349,706		3,233,287
TA JPMorgan Enhanced Index		1,819,548		1,444,954
TA BlackRock Large Cap Value		4,433,520		5,026,455
TA AEGON High Yield Bond		10,713,743		12,299,779
TA MFS International Equity		951,273		2,027,767
TA PIMCO Total Return		19,024,823		18,817,184
TA Morgan Stanley Capital Growth		2,017,173		2,367,643
TA T.Rowe Price Small Cap		5,808,511		7,116,645
TA Third Avenue Value		3,271,250		5,473,692
TA Multi-Managed Balanced		5,397,269		4,563,163
TA AllianceBernstein Dynamic Allocation		1,321,496		1,735,284
TA WMC Diversified Growth		6,973,252		4,957,912
TA AEGON Money Market		21,371,862		23,780,137
TA Systematic Small/Mid Cap Value		4,934,983		7,589,452
TA AEGON U.S. Government Securities - PAM Fund		91,013,933		47,552,998
TA AEGON U.S. Government Securities		4,863,200		18,960,865
TA Morgan Stanley Mid-Cap Growth		9,586,163		5,859,607
TA Vanguard ETF Index - Balanced		56,406		99,783
TA Vanguard ETF Index - Growth		513,899		461,680
TA Efficient Markets		745,304		547,989
TA Janus Balanced		1,372,830		1,265,380
TA Hanlon Growth		556,553		437,177
TA Hanlon Growth and Income		848,072		1,134,842
TA Hanlon Balanced		650,683		751,640
TA Hanlon Income		4,356,678		6,838,556
TA Vanguard ETF Index - Conservative		118,911		9,385
TA Vanguard ETF Index - Aggressive Growth		63,649		37,261
TA Jennison Growth		3,714,323		2,367,122
TA AEGON Tactical Vanguard ETF-Growth		4,830,224		19,238

58

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

2. Investments (continued)

Subaccount	Purchases		Sales
TA AEGON Tactical Vanguard ETF-Conservative	$	1,143,924	$	1,153
Fidelity - VIP Index 500		947,566		1,277,000
ProFund VP Bull		1,284,987		3,912,286
ProFund VP Money Market		24,859,545		23,103,952
ProFund VP NASDAQ-100		5,480,870		4,563,812
ProFund VP Short Small-Cap		289,335		331,874
ProFund VP Small-Cap		2,084,748		2,329,735
ProFund VP Japan		1,100,187		1,006,003
ProFund VP UltraSmall-Cap		2,363,862		2,658,458
ProFund VP Basic Materials		2,323,184		3,073,804
ProFund VP Pharmaceuticals		1,490,153		983,964
ProFund VP Telecommunications		677,545		1,278,597
ProFund VP Asia 30		2,498,208		3,395,242
ProFund VP Oil & Gas		2,923,702		4,424,607
ProFund VP U.S. Government Plus		1,687,304		2,049,060
ProFund VP Consumer Services		1,496,190		1,320,244
ProFund VP Precious Metals		2,837,465		3,221,884
ProFund VP Europe 30		2,304,836		2,241,991
ProFund VP Short NASDAQ-100		444,091		401,542
ProFund VP Utilities		2,616,896		2,031,861
ProFund VP Financials		328,841		770,587
ProFund VP Small-Cap Value		2,150,123		2,053,794
ProFund VP Mid-Cap		2,702,667		2,662,853
ProFund VP Short Emerging Markets		1,046,903		1,152,415
ProFund VP Falling U.S. Dollar		819,743		847,648
ProFund VP International		2,262,551		4,644,112
ProFund VP Emerging Markets		3,070,474		7,907,739
ProFund VP Short International		2,678,630		2,702,615
Access VP High Yield		1,257,142		1,605,531
AllianceBernstein Balanced Wealth Strategy		375,242		296,821
Franklin Templeton VIP Founding Funds Allocation		691,595		756,845

59

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

3. Change in Units

The changes in units outstanding were as follows:

	Year ended December 31,
	2011								2010
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and  Transferred to/from			Net Increase (Decrease)
TA JPMorgan Core Bond		28,045		2,565,150			2,593,195			34,892		(1,931,332	)		(1,896,440	)
TA Asset Allocation - Conservative		905,524		(9,592,832	)		(8,687,308	)		1,165,686		(8,982,334	)		(7,816,648	)
TA Asset Allocation - Growth		1,318,544		(16,982,495	)		(15,663,951	)		1,162,358		(8,549,564	)		(7,387,206	)
TA Asset Allocation - Moderate		1,327,034		(20,585,509	)		(19,258,475	)		1,626,399		(20,142,152	)		(18,515,753	)
TA Asset Allocation - Moderate Growth		2,958,240		(49,105,654	)		(46,147,414	)		3,656,721		(20,192,613	)		(16,535,892	)
TA International Moderate Growth		323,156		(4,257,187	)		(3,934,031	)		615,064		(3,590,051	)		(2,974,987	)
TA Clarion Global Real Estate Sec		71,300		(1,223,715	)		(1,152,415	)		111,314		15,946			127,260
TA JPMorgan Tactical Allocation		100,918		(969,890	)		(868,972	)		—		(1,593,255	)		(1,593,255	)
TA JPMorgan Enhanced Index		18,151		253,265			271,416			7,989		1,139,154			1,147,143
TA BlackRock Large Cap Value		151,347		(790,971	)		(639,624	)		191,001		2,632,449			2,823,450
TA AEGON High Yield Bond		16,918		(1,408,117	)		(1,391,199	)		32,682		1,776,752			1,809,434
TA MFS International Equity		33,156		(1,254,221	)		(1,221,065	)		31,312		266,872			298,184
TA PIMCO Total Return		142,968		(919,924	)		(776,956	)		659,985		1,786,770			2,446,755
TA Morgan Stanley Capital Growth		71,154		(415,952	)		(344,798	)		36,761		388,264			425,025
TA T.Rowe Price Small Cap		34,137		(1,185,311	)		(1,151,174	)		28,797		563,754			592,551
TA Third Avenue Value		169,642		(2,246,927	)		(2,077,285	)		178,619		(2,280,139	)		(2,101,520	)
TA Multi-Managed Balanced		124,857		272,383			397,240			92,636		2,458,277			2,550,913
TA AllianceBernstein Dynamic Allocation		11,008		(342,180	)		(331,172	)		29,616		436,977			466,593
TA WMC Diversified Growth		96,225		1,717,552			1,813,777			79,521		(1,744,249	)		(1,664,728	)
TA AEGON Money Market		517,561		(2,418,498	)		(1,900,937	)		1,133,079		(12,076,514	)		(10,943,435	)
TA Systematic Small/Mid Cap Value		118,352		(1,563,321	)		(1,444,969	)		203,102		(1,180,447	)		(977,345	)
TA AEGON U.S. Government Securities - PAM Fund		—		30,931,487			30,931,487			—		(51,607,818	)		(51,607,818	)
TA AEGON U.S. Government Securities		276,881		(12,063,744	)		(11,786,863	)		195,071		1,633,701			1,828,772
TA Morgan Stanley Mid-Cap Growth		50,245		2,470,160			2,520,405			43,039		1,608,890			1,651,929
TA Vanguard ETF Index - Balanced		16,138		(65,407	)		(49,269	)		26,177		(129,439	)		(103,262	)

60

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

3. Change in Units (continued)

	Year ended December 31,
	2011								2010
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and  Transferred to/from			Net Increase (Decrease)
TA Vanguard ETF Index - Growth		1,133		16,467			17,600			277,458		151,736			429,194
TA Efficient Markets		12,301		114,079			126,380			105,741		125,293			231,034
TA Janus Balanced		79,984		(49,470	)		30,514			24,941		812,914			837,855
TA Hanlon Growth		5,903		68,801			74,704			7,870		325,140			333,010
TA Hanlon Growth and Income		12,731		(335,148	)		(322,417	)		4,808		838,567			843,375
TA Hanlon Balanced		27,256		(131,938	)		(104,682	)		6,918		1,211,613			1,218,531
TA Hanlon Income		251,617		(2,846,821	)		(2,595,204	)		559,750		8,095,693			8,655,443
TA Vanguard ETF Index - Conservative		46		102,648			102,694			—		215,955			215,955
TA Vanguard ETF Index - Aggressive Growth		411		19,383			19,794			—		27,899			27,899
TA Jennison Growth		25,884		1,092,566			1,118,450			23,596		2,702,382			2,725,978
TA AEGON Tactical Vanguard ETF-Growth		441		4,808,171			4,808,612			—		—			—
TA AEGON Tactical Vanguard ETF-Conservative		27		1,144,910			1,144,937			—		—			—
Fidelity - VIP Index 500		122,632		(544,493	)		(421,861	)		149,140		(317,595	)		(168,455	)
ProFund VP Bull		1,001		(3,377,985	)		(3,376,984	)		11,013		(3,400,891	)		(3,389,878	)
ProFund VP Money Market		45,156		1,852,013			1,897,169			371,731		(6,236,426	)		(5,864,695	)
ProFund VP NASDAQ-100		15,147		773,759			788,906			13,950		150,825			164,775
ProFund VP Short Small-Cap		2,641		(78,629	)		(75,988	)		6,095		17,133			23,228
ProFund VP Small-Cap		3,121		(388,650	)		(385,529	)		3,649		443,605			447,254
ProFund VP Japan		2,923		245,190			248,113			758		(276,113	)		(275,355	)
ProFund VP UltraSmall-Cap		6,971		(1,009,895	)		(1,002,924	)		8,219		733,416			741,635
ProFund VP Basic Materials		11,597		(837,797	)		(826,200	)		11,208		(775,532	)		(764,324	)
ProFund VP Pharmaceuticals		1,419		480,498			481,917			17,789		(102,865	)		(85,076	)
ProFund VP Telecommunications		—		(814,047	)		(814,047	)		584		797,950			798,534
ProFund VP Asia 30		22,198		(1,545,800	)		(1,523,602	)		51,231		(1,321,532	)		(1,270,301	)
ProFund VP Oil & Gas		39,002		(1,878,936	)		(1,839,934	)		132,432		400,760			533,192
ProFund VP U.S. Government Plus		7,205		(140,665	)		(133,460	)		9,634		(207,764	)		(198,130	)
ProFund VP Consumer Services		1,181		190,085			191,266			802		401,254			402,056

61

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

3. Change in Units (continued)

	Year ended December 31,
	2011								2010
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and  Transferred to/from			Net Increase (Decrease)
ProFund VP Precious Metals		37,560		(400,545	)		(362,985	)		104,535		502,098			606,633
ProFund VP Europe 30		598		(48,325	)		(47,727	)		750		(131,945	)		(131,195	)
ProFund VP Short NASDAQ-100		3,131		60,171			63,302			3,551		(142,581	)		(139,030	)
ProFund VP Utilities		9,804		562,974			572,778			123,137		(149,792	)		(26,655	)
ProFund VP Financials		7,645		(1,006,384	)		(998,739	)		112,008		(483,149	)		(371,141	)
ProFund VP Small-Cap Value		4,263		127,256			131,519			6,683		(562,422	)		(555,739	)
ProFund VP Mid-Cap		9,287		(30,825	)		(21,538	)		18,789		(1,399,595	)		(1,380,806	)
ProFund VP Short Emerging Markets		2,182		(213,694	)		(211,512	)		10,145		45,593			55,738
ProFund VP Falling U.S. Dollar		4,068		(26,853	)		(22,785	)		13,171		(261,733	)		(248,562	)
ProFund VP International		3,270		(3,596,458	)		(3,593,188	)		6,547		(39,915	)		(33,368	)
ProFund VP Emerging Markets		33,342		(5,501,540	)		(5,468,198	)		39,449		812,846			852,295
ProFund VP Short International		502		(20,735	)		(20,233	)		4,273		(199,482	)		(195,209	)
Access VP High Yield		3,678		(313,533	)		(309,855	)		16,208		(2,547,133	)		(2,530,925	)
AllianceBernstein Balanced Wealth Strategy		745		37,530			38,275			12,113		(14,733	)		(2,620	)
Franklin Templeton VIP Founding Funds Allocation		939		(45,156	)		(44,217	)		31,549		204,995			236,544

62

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights

The Separate Account offers various death benefit options, which have differing fees that are charged against the contract owner’s account balance. These charges are discussed in more detail in the individual’s policy. Differences in the fee structures for these units result in different unit values, expense ratios, and total returns.

Subaccount	Year Ended		Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
TA JPMorgan Core Bond
		12/31/2011		10,527,355	$	1.41	to	$	1.31	$	14,673,022		4.33	%		1.25	%	to	2.15	%		5.92	%	to	4.99	%
		12/31/2010		7,934,160		1.33	to		1.25		10,441,298		5.13			1.25		to	2.15			6.66		to	5.72
		12/31/2009		9,830,600		1.25	to		1.18		12,149,813		4.34			1.25		to	2.15			8.03		to	7.08
		12/31/2008		8,825,457		1.15	to		1.10		10,110,874		5.07			1.25		to	2.15			3.95		to	3.03
		12/31/2007		8,777,650		1.11	to		1.07		9,669,506		4.68			1.25		to	2.15			5.29		to	4.36
TA Asset Allocation - Conservative
		12/31/2011		65,261,987		1.29	to		1.20		83,188,888		2.44			1.25		to	2.15			1.10		to	0.21
		12/31/2010		73,949,295		1.27	to		1.20		93,303,023		3.09			1.25		to	2.15			7.36		to	6.42
		12/31/2009		81,765,943		1.19	to		1.12		96,208,900		4.29			1.25		to	2.15			23.36		to	22.28
		12/31/2008		69,595,065		0.96	to		0.92		66,482,160		3.11			1.25		to	2.15			(22.38	)	to	(23.06	)
		12/31/2007		62,596,628		1.24	to		1.20		77,099,368		2.87			1.25		to	2.15			4.83		to	3.90
TA Asset Allocation - Growth
		12/31/2011		51,296,008		1.18	to		1.10		59,708,651		0.87			1.25		to	2.15			(6.86	)	to	(7.68	)
		12/31/2010		66,959,959		1.26	to		1.19		83,797,274		0.85			1.25		to	2.15			13.23		to	12.24
		12/31/2009		74,347,165		1.12	to		1.06		82,281,502		2.38			1.25		to	2.15			27.94		to	26.82
		12/31/2008		82,963,378		0.87	to		0.84		71,875,957		2.52			1.25		to	2.15			(40.50	)	to	(41.03	)
		12/31/2007		131,425,594		1.47	to		1.42		191,642,641		2.09			1.25		to	2.15			6.20		to	5.26
TA Asset Allocation - Moderate
		12/31/2011		128,759,002		1.30	to		1.21		165,597,004		2.08			1.25		to	2.15			(0.94	)	to	(1.81	)
		12/31/2010		148,017,477		1.31	to		1.23		192,453,415		2.73			1.25		to	2.15			8.78		to	7.82
		12/31/2009		166,533,230		1.21	to		1.14		199,301,330		4.16			1.25		to	2.15			24.64		to	23.54
		12/31/2008		156,192,138		0.97	to		0.93		150,183,107		3.24			1.25		to	2.15			(27.11	)	to	(27.75	)
		12/31/2007		205,309,835		1.33	to		1.28		271,233,535		2.85			1.25		to	2.15			6.40		to	5.45
TA Asset Allocation - Moderate Growth
		12/31/2011		224,396,959		1.26	to		1.18		280,406,582		1.78			1.25		to	2.15			(3.48	)	to	(4.33	)
		12/31/2010		270,544,373		1.31	to		1.23		350,790,899		1.98			1.25		to	2.15			11.02		to	10.04
		12/31/2009		287,080,265		1.18	to		1.12		335,728,365		3.28			1.25		to	2.15			26.29		to	25.18
		12/31/2008		275,959,927		0.93	to		0.89		255,940,310		2.87			1.25		to	2.15			(33.75	)	to	(34.34	)
		12/31/2007		341,284,148		1.41	to		1.36		478,592,986		2.29			1.25		to	2.15			6.22		to	5.28
TA International Moderate Growth
		12/31/2011		27,220,749		0.88	to		0.84		23,900,048		1.84			1.25		to	2.15			(8.67	)	to	(9.48	)
		12/31/2010		31,154,780		0.97	to		0.93		29,984,086		2.46			1.25		to	2.15			8.88		to	7.92
		12/31/2009		34,129,767		0.89	to		0.86		30,202,216		2.59			1.25		to	2.15			27.73		to	26.60
		12/31/2008		33,357,260		0.70	to		0.68		23,136,168		2.39			1.25		to	2.15			(37.11	)	to	(37.66	)
		12/31/2007		24,742,346		1.11	to		1.09		27,314,371		1.27			1.25		to	2.15			7.15		to	6.20
TA Clarion Global Real Estate Sec
		12/31/2011		4,666,275		1.50	to		1.40		6,918,794		6.00			1.25		to	2.15			(7.17	)	to	(7.98	)
		12/31/2010		5,818,690		1.61	to		1.52		9,305,069		5.64			1.25		to	2.15			13.88		to	12.87
		12/31/2009		5,691,430		1.42	to		1.34		8,009,608		—			1.25		to	2.15			31.36		to	30.21
		12/31/2008		6,176,041		1.08	to		1.03		6,627,176		5.76			1.25		to	2.15			(43.21	)	to	(43.71	)
		12/31/2007		11,621,472		1.90	to		1.84		21,976,845		5.58			1.25		to	2.15			(8.06	)	to	(8.88	)

63

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

Subaccount	Year Ended			Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
TA JPMorgan Tactical Allocation
		12/31/2011			6,321,217	$	1.05	to	$	0.98	$	6,582,130		1.41	%		1.25	%	to	2.15	%		2.17	%	to	1.27	%
		12/31/2010			7,190,189		1.03	to		0.97		7,333,540		3.02			1.25		to	2.15			(1.65	)	to	(2.51	)
		12/31/2009			8,783,444		1.05	to		0.99		9,124,402		2.70			1.25		to	2.15			2.66		to	1.76
		12/31/2008			8,639,739		1.02	to		0.98		8,753,086		4.14			1.25		to	2.15			(5.83	)	to	(6.66	)
		12/31/2007			15,421,706		1.08	to		1.05		16,610,954		3.30			1.25		to	2.15			(1.93	)	to	(2.80	)
TA JPMorgan Enhanced Index
		12/31/2011			2,696,579		1.14	to		1.06		3,053,837		1.26			1.25		to	2.15			(0.76	)	to	(1.64	)
		12/31/2010			2,425,163		1.15	to		1.08		2,769,104		1.44			1.25		to	2.15			13.44		to	12.44
		12/31/2009			1,278,020		1.01	to		0.96		1,283,501		1.66			1.25		to	2.15			27.72		to	26.59
		12/31/2008			1,230,267		0.79	to		0.76		968,795		5.43			1.25		to	2.15			(38.30	)	to	(38.84	)
		12/31/2007			2,059,075		1.28	to		1.24		2,635,659		1.01			1.25		to	2.15			3.01		to	2.10
TA BlackRock Large Cap Value
		12/31/2011			10,032,540		1.26	to		1.17		12,473,992		1.44			1.25		to	2.15			1.19		to	0.30
		12/31/2010			10,672,164		1.24	to		1.17		13,125,166		0.73			1.25		to	2.15			8.79		to	7.83
		12/31/2009			7,848,714		1.14	to		1.08		8,887,664		1.05			1.25		to	2.15			12.31		to	11.32
		12/31/2008			5,632,996		1.02	to		0.97		5,685,388		0.60			1.25		to	2.15			(34.88	)	to	(35.46	)
		12/31/2007			10,555,032		1.56	to		1.51		16,357,358		0.79			1.25		to	2.15			3.05		to	2.14
TA AEGON High Yield Bond
		12/31/2011			6,599,504		1.43	to		1.33		9,334,558		4.60			1.25		to	2.15			3.25		to	2.34
		12/31/2010			7,990,703		1.39	to		1.30		10,970,188		15.71			1.25		to	2.15			10.78		to	9.81
		12/31/2009			6,181,269		1.25	to		1.19		7,680,613		11.91			1.25		to	2.15			45.04		to	43.77
		12/31/2008			1,115,203		0.86	to		0.83		954,891		8.10			1.25		to	2.15			(26.39	)	to	(27.04	)
		12/31/2007			2,540,837		1.17	to		1.13		2,961,987		5.02			1.25		to	2.15			0.47		to	(0.42	)
TA MFS International Equity
		12/31/2011			2,008,401		0.81	to		0.78		1,613,665		0.92			1.25		to	2.15			(11.33	)	to	(12.11	)
		12/31/2010			3,229,466		0.91	to		0.88		2,927,323		1.53			1.25		to	2.15			8.94		to	7.99
		12/31/2009			2,931,282		0.84	to		0.82		2,443,378		2.26			1.25		to	2.15			30.61		to	29.45
		12/31/2008			2,685,482		0.64	to		0.63		1,716,936		5.78			1.25		to	2.15			(36.34	)	to	(36.90	)
		12/31/2007	(1)		2,575,301		1.01	to		1.00		2,591,284		0.82			1.25		to	2.15			0.70		to	0.10
TA PIMCO Total Return
		12/31/2011			20,739,956		1.37	to		1.28		28,167,757		2.46			1.25		to	2.15			4.64		to	3.72
		12/31/2010			21,516,912		1.31	to		1.23		27,947,578		4.04			1.25		to	2.15			5.62		to	4.68
		12/31/2009			19,070,157		1.24	to		1.18		23,496,283		6.87			1.25		to	2.15			14.32		to	13.31
		12/31/2008			12,108,846		1.08	to		1.04		13,053,294		6.24			1.25		to	2.15			(4.27	)	to	(5.12	)
		12/31/2007			7,512,107		1.13	to		1.09		8,473,337		2.44			1.25		to	2.15			7.45		to	6.50
TA Morgan Stanley Capital Growth
		12/31/2011			2,152,700		1.13	to		1.06		2,415,206		—			1.25		to	2.15			(7.15	)	to	(7.96	)
		12/31/2010			2,497,498		1.22	to		1.15		3,023,299		0.64			1.25		to	2.15			25.52		to	24.41
		12/31/2009			2,072,473		0.97	to		0.92		1,999,520		2.09			1.25		to	2.15			25.99		to	24.88
		12/31/2008			2,405,059		0.77	to		0.74		1,844,478		1.66			1.25		to	2.15			(37.33	)	to	(37.88	)
		12/31/2007			5,242,779		1.23	to		1.19		6,425,694		1.15			1.25		to	2.15			(0.49	)	to	(1.37	)

64

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

Subaccount	Year Ended		Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
TA T.Rowe Price Small Cap
		12/31/2011		2,433,299	$	1.43	to	$	1.34	$	3,454,691		—	%		1.25	%	to	2.15	%		0.26	%	to	(0.62	)%
		12/31/2010		3,584,473		1.43	to		1.35		5,084,940		—			1.25		to	2.15			32.41		to	31.24
		12/31/2009		2,991,922		1.08	to		1.03		3,213,556		—			1.25		to	2.15			36.62		to	35.42
		12/31/2008		2,717,751		0.79	to		0.76		2,137,785		1.43			1.25		to	2.15			(37.19	)	to	(37.75	)
		12/31/2007		3,742,760		1.26	to		1.22		4,692,156		—			1.25		to	2.15			7.92		to	6.96
TA Third Avenue Value
		12/31/2011		7,760,668		1.17	to		1.09		8,955,064		4.20			1.25		to	2.15			(15.55	)	to	(16.29	)
		12/31/2010		9,837,953		1.38	to		1.30		13,459,474		2.63			1.25		to	2.15			13.74		to	12.74
		12/31/2009		11,939,473		1.21	to		1.15		14,374,054		—			1.25		to	2.15			32.86		to	31.69
		12/31/2008		12,834,585		0.91	to		0.87		11,647,931		4.45			1.25		to	2.15			(42.01	)	to	(42.53	)
		12/31/2007		24,788,839		1.58	to		1.52		38,819,539		3.64			1.25		to	2.15			(0.31	)	to	(1.19	)
TA Multi-Managed Balanced
		12/31/2011		9,118,045		1.44	to		1.34		12,955,299		2.10			1.25		to	2.15			2.47		to	1.57
		12/31/2010		8,720,805		1.40	to		1.32		12,106,435		0.42			1.25		to	2.15			22.35		to	21.28
		12/31/2009		6,169,892		1.15	to		1.09		7,007,499		1.72			1.25		to	2.15			24.38		to	23.29
		12/31/2008		4,574,039		0.92	to		0.88		4,185,469		1.77			1.25		to	2.15			(33.41	)	to	(34.00	)
		12/31/2007		5,021,662		1.38	to		1.34		6,901,672		1.01			1.25		to	2.15			11.97		to	10.98
TA AllianceBernstein Dynamic Allocation
		12/31/2011		2,008,000		1.23	to		1.14		2,436,979		0.68			1.25		to	2.15			0.41		to	(0.47	)
		12/31/2010		2,339,172		1.22	to		1.15		2,829,143		5.06			1.25		to	2.15			7.80		to	6.85
		12/31/2009		1,872,579		1.13	to		1.07		2,103,837		3.15			1.25		to	2.15			29.55		to	28.40
		12/31/2008		1,619,091		0.87	to		0.84		1,407,384		4.94			1.25		to	2.15			(37.78	)	to	(38.33	)
		12/31/2007		3,299,282		1.41	to		1.36		4,618,114		1.85			1.25		to	2.15			16.82		to	15.79
TA WMC Diversified Growth
		12/31/2011		13,154,331		1.19	to		1.11		15,464,167		0.27			1.25		to	2.15			(5.11	)	to	(5.95	)
		12/31/2010		11,340,554		1.25	to		1.18		14,072,475		0.30			1.25		to	2.15			16.03		to	15.01
		12/31/2009		13,005,282		1.08	to		1.03		13,931,793		0.49			1.25		to	2.15			27.31		to	26.19
		12/31/2008		12,633,660		0.85	to		0.81		10,648,791		—			1.25		to	2.15			(46.84	)	to	(47.31	)
		12/31/2007		21,871,616		1.60	to		1.54		34,704,278		—			1.25		to	2.15			14.60		to	13.59
TA AEGON Money Market
		12/31/2011		25,919,573		1.05	to		0.98		26,784,275		0.01			1.25		to	2.15			(1.23	)	to	(2.09	)
		12/31/2010		27,820,510		1.06	to		1.00		29,192,661		0.01			1.25		to	2.15			(1.23	)	to	(2.10	)
		12/31/2009		38,763,945		1.07	to		1.02		41,246,588		0.04			1.25		to	2.15			(1.22	)	to	(2.09	)
		12/31/2008		69,914,935		1.09	to		1.04		75,404,902		1.96			1.25		to	2.15			0.90		to	0.01
		12/31/2007		20,158,148		1.08	to		1.04		21,604,113		4.74			1.25		to	2.15			3.47		to	2.55
TA Systematic Small/Mid Cap Value
		12/31/2011		7,054,542		1.82	to		1.70		12,726,542		0.04			1.25		to	2.15			(4.06	)	to	(4.90	)
		12/31/2010		8,499,511		1.90	to		1.79		16,004,584		0.57			1.25		to	2.15			28.45		to	27.32
		12/31/2009		9,476,856		1.48	to		1.41		13,901,798		2.90			1.25		to	2.15			41.14		to	39.89
		12/31/2008		9,736,221		1.05	to		1.01		10,129,724		1.73			1.25		to	2.15			(41.78	)	to	(42.30	)
		12/31/2007		15,076,218		1.80	to		1.74		26,986,885		0.82			1.25		to	2.15			22.85		to	21.76

65

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

Subaccount	Year Ended			Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
TA AEGON U.S. Government Securities - PAM Fund
		12/31/2011			100,086,812	$	1.28	to	$	1.20	$	127,157,916		3.06	%		1.25	%	to	2.15	%		5.96	%	to	5.03	%
		12/31/2010			69,155,325		1.21	to		1.14		83,038,548		3.10			1.25		to	2.15			2.94		to	2.03
		12/31/2009			120,763,143		1.18	to		1.12		141,080,909		2.15			1.25		to	2.15			2.91		to	2.00
		12/31/2008			191,477,319		1.14	to		1.10		217,670,592		1.54			1.25		to	2.15			6.09		to	5.15
		12/31/2007			5,994,582		1.08	to		1.05		6,432,073		14.35			1.25		to	2.15			4.47		to	3.54
TA AEGON U.S. Government Securities
		12/31/2011			9,322,976		1.28	to		1.20		11,854,075		1.94			1.25		to	2.15			5.96		to	5.03
		12/31/2010			21,109,839		1.21	to		1.14		25,431,651		2.61			1.25		to	2.15			2.94		to	2.03
		12/31/2009			19,281,067		1.18	to		1.12		22,570,696		2.26			1.25		to	2.15			2.91		to	2.00
		12/31/2008			16,854,551		1.14	to		1.10		25,893,172		2.57			1.25		to	2.15			6.09		to	5.15
		12/31/2007			1,908,607		1.08	to		1.04		2,048,105		4.42			1.25		to	2.15			4.47		to	3.54
TA Morgan Stanley Mid-Cap Growth
		12/31/2011			7,043,924		1.44	to		1.35		10,069,813		0.18			1.25		to	2.15			(8.06	)	to	(8.87	)
		12/31/2010			4,523,519		1.57	to		1.48		7,038,819		0.02			1.25		to	2.15			31.93		to	30.77
		12/31/2009			2,871,590		1.19	to		1.13		3,394,567		—			1.25		to	2.15			58.14		to	56.75
		12/31/2008			2,448,156		0.75	to		0.72		1,832,575		2.05			1.25		to	2.15			(47.10	)	to	(47.57	)
		12/31/2007			4,078,221		1.42	to		1.37		5,772,606		—			1.25		to	2.15			20.72		to	19.65
TA Vanguard ETF Index - Balanced
		12/31/2011			714,691		1.03	to		1.00		734,327		1.05			1.25		to	2.15			0.22		to	(0.66	)
		12/31/2010			763,960		1.03	to		1.01		784,502		1.03			1.25		to	2.15			9.33		to	8.36
		12/31/2009			867,222		0.94	to		0.93		815,734		0.33			1.25		to	2.15			15.09		to	14.08
		12/31/2008	(1)		407,475		0.82	to		0.81		333,575		—			1.25		to	2.15			(18.08	)	to	(18.57	)
TA Vanguard ETF Index - Growth
		12/31/2011			2,236,162		0.96	to		0.93		2,137,073		1.49			1.25		to	2.15			(2.35	)	to	(3.21	)
		12/31/2010			2,218,562		0.98	to		0.96		2,173,109		1.13			1.25		to	2.15			11.61		to	10.63
		12/31/2009			1,789,368		0.88	to		0.87		1,571,591		0.40			1.25		to	2.15			21.66		to	20.59
		12/31/2008	(1)		1,609,851		0.72	to		0.72		1,163,009		—			1.25		to	2.15			(27.70	)	to	(28.13	)
TA Efficient Markets
		12/31/2011			611,137		1.29	to		1.26		789,150		0.74			1.25		to	2.15			(3.40	)	to	(4.25	)
		12/31/2010			484,757		1.34	to		1.31		648,352		0.65			1.25		to	2.15			10.99		to	10.01
		12/31/2009			253,723		1.21	to		1.20		306,182		0.04			1.25		to	2.15			16.41		to	15.38
		12/31/2008	(1)		201,107		1.04	to		1.04		208,586		—			1.25		to	2.15			3.72		to	3.59
TA Janus Balanced
		12/31/2011			1,307,250		0.88	to		0.87		1,154,702		0.16			1.25		to	2.15			(11.91	)	to	(12.69	)
		12/31/2010			1,276,736		1.00	to		0.99		1,280,637		0.14			1.25		to	2.15			1.83		to	0.93
		12/31/2009	(1)		438,881		0.99	to		0.99		432,758		—			1.25		to	2.15			(0.05	)	to	(0.15	)
TA Hanlon Growth
		12/31/2011			833,372		0.87	to		0.86		727,774		1.50			1.25		to	2.15			(12.70	)	to	(13.47	)
		12/31/2010			758,668		1.00	to		0.99		759,543		0.98			1.25		to	2.15			(1.93	)	to	(2.79	)
		12/31/2009	(1)		425,658		1.02	to		1.02		434,817		—			1.25		to	2.15			2.53		to	2.43

66

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

Subaccount	Year Ended			Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
TA Hanlon Growth and Income
		12/31/2011			1,214,986	$	0.90	to	$	0.89	$	1,095,279		1.27	%		1.25	%	to	2.15	%		(8.60	)%	to	(9.40	)%
		12/31/2010			1,537,403		0.99	to		0.98		1,518,332		0.63			1.25		to	2.15			(3.32	)	to	(4.18	)
		12/31/2009	(1)		694,028		1.02	to		1.02		709,748		—			1.25		to	2.15			2.55		to	2.45
TA Hanlon Balanced
		12/31/2011			1,504,454		0.93	to		0.91		1,392,249		1.20			1.25		to	2.15			(4.60	)	to	(5.44	)
		12/31/2010			1,609,136		0.97	to		0.96		1,563,934		0.39			1.25		to	2.15			(4.66	)	to	(5.49	)
		12/31/2009	(1)		390,605		1.02	to		1.02		398,768		—			1.25		to	2.15			2.28		to	2.18
TA Hanlon Income
		12/31/2011			9,907,300		1.01	to		0.99		9,971,898		1.56			1.25		to	2.15			1.66		to	0.77
		12/31/2010			12,502,504		0.99	to		0.98		12,394,380		0.20			1.25		to	2.15			(1.12	)	to	(1.99	)
		12/31/2009	(1)		3,847,061		1.00	to		1.00		3,862,004		—			1.25		to	2.15			0.40		to	0.30
TA Vanguard ETF Index - Conservative
		12/31/2011			318,649		1.10	to		1.08		349,138		0.62			1.25		to	2.15			1.90		to	1.01
		12/31/2010			215,955		1.08	to		1.07		232,442		0.03			1.25		to	2.15			8.07		to	7.12
		12/31/2009	(1)		—		1.00	to		1.00		—		—			1.25		to	2.15			(0.14	)	to	(0.24	)
TA Vanguard ETF Index - Aggressive Growth
		12/31/2011			47,693		1.10	to		1.08		52,208		0.60			1.25		to	2.15			(5.10	)	to	(5.94	)
		12/31/2010			27,899		1.16	to		1.15		32,213		—			1.25		to	2.15			12.99		to	12.00
		12/31/2009	(1)		—		1.02	to		1.02		—		—			1.25		to	2.15			2.45		to	2.35
TA Jennison Growth
		12/31/2011			3,844,428		1.03	to		1.02		3,953,971		—			1.25		to	2.15			(1.99	)	to	(2.86	)
		12/31/2010	(1)		2,725,978		1.05	to		1.05		2,864,177		0.03			1.25		to	2.15			5.17		to	4.55
TA AEGON Tactical Vanguard ETF-Growth
		12/31/2011	(1)		4,808,612		0.99	to		0.99		4,753,791		—			1.25		to	2.15			(1.14	)	to	(1.19	)
TA AEGON Tactical Vanguard ETF-Conservative
		12/31/2011	(1)		1,144,937		1.01	to		1.00		1,151,056		—			1.25		to	2.15			0.54		to	0.49
Fidelity - VIP Index 500
		12/31/2011			3,070,817		1.16	to		1.08		3,535,778		1.62			1.25		to	2.15			0.53		to	(0.35	)
		12/31/2010			3,492,678		1.15	to		1.08		4,006,365		1.71			1.25		to	2.15			13.31		to	12.32
		12/31/2009			3,661,133		1.02	to		0.97		3,709,532		2.57			1.25		to	2.15			24.74		to	23.64
		12/31/2008			2,917,051		0.82	to		0.78		2,369,742		1.78			1.25		to	2.15			(37.94	)	to	(38.49	)
		12/31/2007			3,905,414		1.31	to		1.27		5,109,269		3.19			1.25		to	2.15			3.88		to	2.96
ProFund VP Bull
		12/31/2011			585,830		0.80	to		0.76		463,769		—			1.25		to	2.15			(1.23	)	to	(2.10	)
		12/31/2010			3,962,814		0.81	to		0.78		3,177,909		0.16			1.25		to	2.15			11.19		to	10.21
		12/31/2009			7,352,692		0.72	to		0.71		5,310,349		1.48			1.25		to	2.15			22.81		to	21.73
		12/31/2008			225,928		0.59	to		0.58		133,231		—			1.25		to	2.15			(38.44	)	to	(38.99	)
		12/31/2007	(1)		161,004		0.96	to		0.95		154,255		0.33			1.25		to	2.15			(4.19	)	to	(4.64	)

67

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

Subaccount	Year Ended			Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
ProFund VP Money Market
		12/31/2011			7,116,370	$	0.97	to	$	0.93	$	6,876,303		0.02	%		1.25	%	to	2.15	%		(1.22	)%	to	(2.08	)%
		12/31/2010			5,219,201		0.98	to		0.95		5,120,723		0.02			1.25		to	2.15			(1.21	)	to	(2.08	)
		12/31/2009			11,083,896		1.00	to		0.97		11,008,933		0.04			1.25		to	2.15			(1.20	)	to	(2.07	)
		12/31/2008			19,653,228		1.01	to		1.00		19,782,946		0.79			1.25		to	2.15			(0.41	)	to	(1.29	)
		12/31/2007	(1)		14,243,545		1.01	to		1.01		14,409,073		1.55			1.25		to	2.15			1.21		to	0.74
ProFund VP NASDAQ-100
		12/31/2011			2,216,417		1.06	to		1.02		2,338,345		—			1.25		to	2.15			0.21		to	(0.68	)
		12/31/2010			1,427,511		1.06	to		1.03		1,503,034		—			1.25		to	2.15			16.79		to	15.76
		12/31/2009			1,262,736		0.91	to		0.89		1,139,258		—			1.25		to	2.15			50.13		to	48.81
		12/31/2008			570,941		0.60	to		0.60		344,594		—			1.25		to	2.15			(43.20	)	to	(43.70	)
		12/31/2007	(1)		185,139		1.06	to		1.06		196,824		—			1.25		to	2.15			6.37		to	5.88
ProFund VP Short Small-Cap
		12/31/2011			145,419		0.56	to		0.54		80,639		—			1.25		to	2.15			(10.21	)	to	(11.00	)
		12/31/2010			221,407		0.62	to		0.60		136,759		—			1.25		to	2.15			(29.82	)	to	(30.44	)
		12/31/2009			198,179		0.89	to		0.87		174,785		1.22			1.25		to	2.15			(33.21	)	to	(33.80	)
		12/31/2008			278,983		1.33	to		1.31		369,453		3.45			1.25		to	2.15			22.55		to	21.46
		12/31/2007	(1)		104,083		1.08	to		1.08		112,698		2.88			1.25		to	2.15			8.39		to	7.88
ProFund VP Small-Cap
		12/31/2011			304,453		0.83	to		0.79		250,909		—			1.25		to	2.15			(6.82	)	to	(7.64	)
		12/31/2010			689,982		0.89	to		0.86		609,263		—			1.25		to	2.15			23.25		to	22.16
		12/31/2009			242,728		0.72	to		0.70		174,153		—			1.25		to	2.15			24.51		to	23.42
		12/31/2008			110,458		0.58	to		0.57		63,691		0.08			1.25		to	2.15			(36.20	)	to	(36.77	)
		12/31/2007	(1)		62,947		0.91	to		0.90		57,020		0.14			1.25		to	2.15			(9.31	)	to	(9.73	)
ProFund VP Japan
		12/31/2011			688,452		0.43	to		0.42		295,691		—			1.25		to	2.15			(19.54	)	to	(20.25	)
		12/31/2010			440,339		0.54	to		0.52		236,022		—			1.25		to	2.15			(7.69	)	to	(8.50	)
		12/31/2009			715,694		0.58	to		0.57		415,929		0.36			1.25		to	2.15			8.97		to	8.01
		12/31/2008			38,482		0.53	to		0.53		20,489		8.69			1.25		to	2.15			(41.58	)	to	(42.09	)
		12/31/2007	(1)		61,483		0.91	to		0.91		56,127		0.25			1.25		to	2.15			(8.69	)	to	(8.95	)
ProFund VP UltraSmall-Cap
		12/31/2011			1,032,241		0.48	to		0.46		495,414		—			1.25		to	2.15			(19.83	)	to	(20.54	)
		12/31/2010			2,035,165		0.60	to		0.58		1,217,061		—			1.25		to	2.15			46.61		to	45.32
		12/31/2009			1,293,530		0.41	to		0.40		527,755		0.07			1.25		to	2.15			38.45		to	37.22
		12/31/2008			5,181,447		0.30	to		0.29		1,526,886		0.19			1.25		to	2.15			(66.61	)	to	(66.90	)
		12/31/2007	(1)		9,803		0.89	to		0.88		8,688		1.64			1.25		to	2.15			(11.30	)	to	(11.56	)
ProFund VP Basic Materials
		12/31/2011			1,893,573		0.91	to		0.87		1,709,318		0.13			1.25		to	2.15			(17.19	)	to	(17.91	)
		12/31/2010			2,719,773		1.10	to		1.06		2,968,357		0.60			1.25		to	2.15			28.10		to	26.97
		12/31/2009			3,484,097		0.86	to		0.84		2,974,600		0.79			1.25		to	2.15			60.37		to	58.95
		12/31/2008			1,723,881		0.53	to		0.53		918,402		0.28			1.25		to	2.15			(52.03	)	to	(52.45	)
		12/31/2007	(1)		3,010,493		1.11	to		1.11		3,348,962		0.04			1.25		to	2.15			11.29		to	10.97

68

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

Subaccount	Year Ended			Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
ProFund VP Pharmaceuticals
		12/31/2011			706,919	$	1.04	to	$	1.01	$	733,038		0.74	%		1.25	%	to	2.15	%		14.70	%	to	13.69	%
		12/31/2010			225,002		0.91	to		0.88		203,463		9.62			1.25		to	2.15			(0.76	)	to	(1.64	)
		12/31/2009			310,078		0.92	to		0.90		283,307		1.89			1.25		to	2.15			15.45		to	14.44
		12/31/2008			515,558		0.80	to		0.79		408,900		4.25			1.25		to	2.15			(20.51	)	to	(21.21	)
		12/31/2007	(1)		4,749		1.00	to		1.00		4,746		1.11			1.25		to	2.15			0.01		to	(0.28	)
ProFund VP Telecommunications
		12/31/2011			66,464		0.75	to		0.73		49,750		4.28			1.25		to	2.15			0.61		to	(0.27	)
		12/31/2010			880,511		0.75	to		0.73		652,709		5.20			1.25		to	2.15			14.26		to	13.25
		12/31/2009			81,977		0.66	to		0.64		53,510		9.10			1.25		to	2.15			5.99		to	5.06
		12/31/2008			19,355		0.62	to		0.61		11,958		0.65			1.25		to	2.15			(35.23	)	to	(35.81	)
		12/31/2007	(1)		3,644		0.95	to		0.95		3,478		—			1.25		to	2.15			(4.55	)	to	(4.82	)
ProFund VP Asia 30
		12/31/2011			1,320,417		0.70	to		0.68		920,972		0.04			1.25		to	2.15			(27.90	)	to	(28.53	)
		12/31/2010			2,844,019		0.97	to		0.94		2,753,631		0.09			1.25		to	2.15			12.50		to	11.51
		12/31/2009			4,114,320		0.87	to		0.85		3,546,588		1.05			1.25		to	2.15			52.30		to	50.95
		12/31/2008			1,451,848		0.57	to		0.56		822,315		0.94			1.25		to	2.15			(51.43	)	to	(51.86	)
		12/31/2007	(1)		1,152,798		1.17	to		1.17		1,347,672		0.07			1.25		to	2.15			16.95		to	16.62
ProFund VP Oil & Gas
		12/31/2011			2,828,826		0.91	to		0.88		2,560,157		0.15			1.25		to	2.15			0.99		to	0.10
		12/31/2010			4,668,760		0.90	to		0.88		4,189,114		0.41			1.25		to	2.15			16.31		to	15.28
		12/31/2009			4,135,568		0.78	to		0.76		3,198,315		—			1.25		to	2.15			14.07		to	13.07
		12/31/2008			2,870,365		0.68	to		0.67		1,947,814		—			1.25		to	2.15			(37.73	)	to	(38.28	)
		12/31/2007	(1)		1,089,102		1.09	to		1.09		1,188,459		—			1.25		to	2.15			9.16		to	8.85
ProFund VP U.S. Government Plus
		12/31/2011			647,425		1.64	to		1.58		1,059,159		0.15			1.25		to	2.15			41.75		to	40.51
		12/31/2010			780,885		1.16	to		1.13		901,891		0.46			1.25		to	2.15			8.76		to	7.80
		12/31/2009			979,015		1.07	to		1.04		1,039,949		0.05			1.25		to	2.15			(33.45	)	to	(34.04	)
		12/31/2008			1,923,740		1.60	to		1.59		3,072,075		1.36			1.25		to	2.15			47.91		to	46.60
		12/31/2007	(1)		1,219,520		1.08	to		1.08		1,319,629		1.16			1.25		to	2.15			8.24		to	7.94
ProFund VP Consumer Services
		12/31/2011			676,253		1.00	to		0.96		672,043		—			1.25		to	2.15			4.20		to	3.28
		12/31/2010			484,987		0.96	to		0.93		463,740		—			1.25		to	2.15			19.89		to	18.84
		12/31/2009			82,931		0.80	to		0.79		66,232		—			1.25		to	2.15			29.19		to	28.05
		12/31/2008			55,429		0.62	to		0.61		34,347.00		—			1.25		to	2.15			(32.23	)	to	(32.83	)
		12/31/2007	(1)		—		0.92	to		0.91		—		—			1.25		to	2.15			(8.41	)	to	(8.68	)
ProFund VP Precious Metals
		12/31/2011			2,860,108		1.13	to		1.09		3,207,071		—			1.25		to	2.15			(20.21	)	to	(20.91	)
		12/31/2010			3,223,093		1.41	to		1.37		4,538,908		—			1.25		to	2.15			31.29		to	30.13
		12/31/2009			2,616,460		1.08	to		1.06		2,810,008		0.89			1.25		to	2.15			33.66		to	32.48
		12/31/2008			2,402,895		0.81	to		0.80		1,932,702		3.31			1.25		to	2.15			(31.62	)	to	(32.22	)
		12/31/2007	(1)		946,710		1.18	to		1.18		1,115,229		0.28			1.25		to	2.15			17.85		to	17.51

69

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

Subaccount	Year Ended			Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
ProFund VP Europe 30
		12/31/2011			55,969	$	0.68	to	$	0.65	$	37,678		0.29	%		1.25	%	to	2.15	%		(10.01	)%	to	(10.80	)%
		12/31/2010			103,696		0.75	to		0.73		77,913		1.36			1.25		to	2.15			1.37		to	0.47
		12/31/2009			234,891		0.74	to		0.73		174,412		2.54			1.25		to	2.15			30.66		to	29.51
		12/31/2008			180,100		0.57	to		0.56		102,283		1.95			1.25		to	2.15			(44.70	)	to	(45.19	)
		12/31/2007	(1)		3,886,414		1.03	to		1.03		4,000,466		—			1.25		to	2.15			2.98		to	2.69
ProFund VP Short NASDAQ-100
		12/31/2011			277,663		0.57	to		0.55		158,711		—			1.25		to	2.15			(11.58	)	to	(12.36	)
		12/31/2010			214,361		0.65	to		0.63		138,616		—			1.25		to	2.15			(22.16	)	to	(22.85	)
		12/31/2009			353,391		0.83	to		0.82		293,809		0.95			1.25		to	2.15			(41.39	)	to	(41.91	)
		12/31/2008			439,716		1.42	to		1.41		625,526		3.08			1.25		to	2.15			46.33		to	45.04
		12/31/2007	(1)		45,884		0.97	to		0.97		44,657		0.80			1.25		to	2.15			(2.64	)	to	(2.91	)
ProFund VP Utilities
		12/31/2011			2,309,455		0.98	to		0.94		2,236,354		2.20			1.25		to	2.15			16.06		to	15.04
		12/31/2010			1,736,677		0.84	to		0.82		1,454,508		2.53			1.25		to	2.15			4.64		to	3.72
		12/31/2009			1,763,332		0.80	to		0.79		1,416,457		4.03			1.25		to	2.15			9.37		to	8.40
		12/31/2008			1,097,498		0.74	to		0.73		806,541		2.15			1.25		to	2.15			(31.56	)	to	(32.16	)
		12/31/2007	(1)		4,182,398		1.07	to		1.07		4,494,116		0.03			1.25		to	2.15			7.50		to	7.19
ProFund VP Financials
		12/31/2011			599,035		0.45	to		0.43		266,809		—			1.25		to	2.15			(14.89	)	to	(15.64	)
		12/31/2010			1,597,774		0.53	to		0.51		835,292		0.28			1.25		to	2.15			9.56		to	8.60
		12/31/2009			1,968,915		0.48	to		0.47		941,266		2.29			1.25		to	2.15			13.59		to	12.59
		12/31/2008			1,916,522		0.42	to		0.42		807,052		1.74			1.25		to	2.15			(51.16	)	to	(51.59	)
		12/31/2007	(1)		37,199		0.86	to		0.86		32,149		0.09			1.25		to	2.15			(13.55	)	to	(13.79	)
ProFund VP Small-Cap Value
		12/31/2011			299,757		0.85	to		0.82		255,184		—			1.25		to	2.15			(5.28	)	to	(6.12	)
		12/31/2010			168,238		0.90	to		0.87		150,443		0.14			1.25		to	2.15			20.59		to	19.54
		12/31/2009			723,977		0.75	to		0.73		538,314		0.14			1.25		to	2.15			18.92		to	17.87
		12/31/2008			747,547		0.63	to		0.62		468,268		—			1.25		to	2.15			(31.54	)	to	(32.15	)
		12/31/2007	(1)		38,874		0.92	to		0.91		35,617		—			1.25		to	2.15			(8.34	)	to	(8.61	)
ProFund VP Mid-Cap
		12/31/2011			880,043		0.90	to		0.87		791,309		—			1.25		to	2.15			(5.36	)	to	(6.20	)
		12/31/2010			901,581		0.96	to		0.93		858,038		—			1.25		to	2.15			22.52		to	21.44
		12/31/2009			2,282,387		0.78	to		0.76		1,774,092		—			1.25		to	2.15			31.23		to	30.08
		12/31/2008			607,691.00		0.59	to		0.59		360,519.00		0.55			1.25		to	2.15			(39.13	)	to	(39.67	)
		12/31/2007	(1)		—		0.98	to		0.97		—		—			1.25		to	2.15			(2.41	)	to	(2.68	)
ProFund VP Short Emerging Markets
		12/31/2011			179,165		0.48	to		0.46		85,731		—			1.25		to	2.15			9.30		to	8.34
		12/31/2010			390,677		0.44	to		0.43		171,086		—			1.25		to	2.15			(19.43	)	to	(20.14	)
		12/31/2009			334,939		0.55	to		0.53		182,034		—			1.25		to	2.15			(49.35	)	to	(49.80	)
		12/31/2008			595,263		1.08	to		1.07		639,979		0.06			1.25		to	2.15			30.59		to	29.44
		12/31/2007	(1)		41,753		0.82	to		0.82		34,400		—			1.25		to	2.15			(17.54	)	to	(17.78	)

70

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

Subaccount	Year Ended			Units		Unit FairValue Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
ProFund VP Falling U.S. Dollar
		12/31/2011			209,658	$	0.94	to	$	0.90	$	195,437		—	%		1.25	%	to	2.15	%		(3.92	)%	to	(4.77	)%
		12/31/2010			232,443		0.97	to		0.95		225,821		—			1.25		to	2.15			(3.79	)	to	(4.64	)
		12/31/2009			481,005		1.01	to		0.99		485,391		2.57			1.25		to	2.15			2.04		to	1.14
		12/31/2008			448,060		0.99	to		0.98		443,520		0.05			1.25		to	2.15			(6.29	)	to	(7.12	)
		12/31/2007	(1)		143,495		1.06	to		1.06		151,805		—			1.25		to	2.15			5.85		to	5.54
ProFund VP International
		12/31/2011			915,975		0.62	to		0.59		560,464		—			1.25		to	2.15			(15.40	)	to	(16.14	)
		12/31/2010			4,509,163		0.73	to		0.71		3,264,427		—			1.25		to	2.15			6.47		to	5.54
		12/31/2009			4,542,531		0.68	to		0.67		3,095,622		0.03			1.25		to	2.15			23.11		to	22.02
		12/31/2008			216,885		0.56	to		0.55		120,183		1.54			1.25		to	2.15			(45.09	)	to	(45.58	)
		12/31/2007	(1)		136,350		1.01	to		1.01		137,774		—			1.25		to	2.15			1.08		to	0.79
ProFund VP Emerging Markets
		12/31/2011			1,780,229		0.78	to		0.75		1,383,136		—			1.25		to	2.15			(20.69	)	to	(21.39	)
		12/31/2010			7,248,427		0.98	to		0.96		7,100,746		—			1.25		to	2.15			8.41		to	7.46
		12/31/2009			6,396,132		0.91	to		0.89		5,785,519		0.12			1.25		to	2.15			60.35		to	58.94
		12/31/2008			951,012		0.57	to		0.56		537,032		0.83			1.25		to	2.15			(50.71	)	to	(51.15	)
		12/31/2007	(1)		411,034		1.15	to		1.15		471,716		—			1.25		to	2.15			14.80		to	14.47
ProFund VP Short International
		12/31/2011			63,095		0.78	to		0.75		49,140		—			1.25		to	2.15			0.55		to	(0.33	)
		12/31/2010			83,328		0.78	to		0.76		64,638		—			1.25		to	2.15			(15.75	)	to	(16.49	)
		12/31/2009			278,537		0.92	to		0.91		256,402		—			1.25		to	2.15			(31.14	)	to	(31.75	)
		12/31/2008			515,699		1.34	to		1.33		691,340		0.07			1.25		to	2.15			36.52		to	35.31
		12/31/2007	(1)		16,143		0.98	to		0.98		15,879		—			1.25		to	2.15			(1.64	)	to	(1.92	)
Access VP High Yield
		12/31/2011			1,063,543		1.31	to		1.26		1,384,093		0.94			1.25		to	2.15			1.48		to	0.59
		12/31/2010			1,373,398		1.29	to		1.25		1,763,801		9.35			1.25		to	2.15			14.94		to	13.93
		12/31/2009			3,904,323		1.12	to		1.10		4,369,187		8.55			1.25		to	2.15			15.47		to	14.45
		12/31/2008			4,272,459		0.97	to		0.96		4,144,835		7.04			1.25		to	2.15			(5.83	)	to	(6.66	)
		12/31/2007	(1)		2,972		1.03	to		1.03		3,064		4.51			1.25		to	2.15			3.12		to	2.82
AllianceBernstein Balanced Wealth Strategy
		12/31/2011			625,383		1.29	to		1.26		805,019		2.46			1.45		to	2.35			(4.44	)	to	(5.28	)
		12/31/2010			587,108		1.35	to		1.33		791,646		2.41			1.45		to	2.35			8.72		to	7.77
		12/31/2009			589,728		1.24	to		1.23		732,497		0.97			1.45		to	2.35			22.67		to	21.60
		12/31/2008	(1)		81,584		1.01	to		1.01		82,665		—			1.45		to	2.35			1.33		to	1.21
Franklin Templeton VIP Founding Funds Allocation
		12/31/2011			1,428,176		1.34	to		1.30		1,909,592		0.02			1.40		to	2.30			(3.03	)	to	(3.88	)
		12/31/2010			1,472,393		1.38	to		1.36		2,031,303		2.21			1.40		to	2.30			8.72		to	7.76
		12/31/2009			1,235,849		1.27	to		1.26		1,569,254		4.21			1.40		to	2.30			28.27		to	27.14
		12/31/2008	(1)		220,695		0.99	to		0.99		218,629		0.17			1.40		to	2.30			(0.94	)	to	(1.06	)

71

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

* These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest.

** These amounts represent the annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded.

*** These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period.

72

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

4. Financial Highlights (continued)

There are subaccounts that have total returns outside of the range indicated above. Following is the list of the subaccounts and their corresponding total returns.

Subaccount	2009 Total Return range
TA MFS International Equity		29.45	%	to	32.38	%
TA AEGON U.S. Government Securities - PAM Fund		2.00		to	3.24
TA Vanguard ETF Index - Growth		19.72		to	21.66
TA Efficient Markets		15.38		to	17.81
ProFund VP Japan		8.01		to	9.06
ProFund VP UltraSmall-Cap		37.22		to	46.84
ProFund VP Basic Materials		33.08		to	60.37
ProFund VP Pharmaceuticals		14.44		to	28.44
ProFund VP Telecommunications		5.06		to	6.18
ProFund VP Asia 30		26.59		to	52.30
ProFund VP Oil & Gas		12.78		to	14.07
ProFund VP U.S. Government Plus		(34.04	)	to	(10.03	)
ProFund VP Consumer Services		20.93		to	29.19
ProFund VP Precious Metals		29.17		to	33.66
ProFund VP Europe 30		28.99		to	30.66
ProFund VP Short NASDAQ-100		(41.91	)	to	(26.89	)
ProFund VP Utilities		8.40		to	18.46
ProFund VP Financials		12.59		to	20.84
ProFund VP Small-Cap Value		17.87		to	19.63
ProFund VP Mid-Cap		22.87		to	31.23
ProFund VP Short Emerging Markets		(49.80	)	to	(30.68	)
ProFund VP Falling U.S. Dollar		1.14		to	5.78
ProFund VP International		22.02		to	26.35
ProFund VP Emerging Markets		30.38		to	60.35
ProFund VP Short International		(31.75	)	to	(26.70	)
Access VP High Yield		14.45		to	22.67
AllianceBernstein Balanced Wealth Strategy		20.86		to	22.67
Franklin Templeton VIP Founding Funds Allocation		25.15		to	28.27

73

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

5. Administrative and Mortality and Expense Risk Charges

WRL deducts a daily administrative charge equal to an annual rate of .15% of the contract owner’s account for administrative expenses. WRL also deducts an annual charge, not to exceed $30, proportionately from the subaccounts’ unit values. An annual charge ranging from 1.10% to 2.00% is deducted (based on the death benefit selected) from the unit values of the subaccounts of the Separate Account for WRL’s assumption of certain mortality and expense risks incurred in connection with the contract. The charge is assessed daily based on the net asset value of the Mutual Fund. Charges for administrative and mortality and expense risk are an expense of the Separate Account. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.

In addition to M&E, the following subaccounts are assessed a daily charge for fund facilitation fees:

	Additional Fund
Subaccount	Facilitation Fee Assessed
AllianceBernstein Balanced Wealth Strategy		0.20	%
Franklin Templeton VIP Founding Funds Allocation		0.15	%

6. Income Taxes

Operations of the Separate Account form a part of WRL, which is taxed as a life insurance company under Subchapter L of the Internal Revenue Code of 1986, as amended (the Code). The operations of the Separate Account are accounted for separately from other operations of WRL for purposes of federal income taxation. The Separate Account is not separately taxable as a regulated investment company under Subchapter M of the Code and is not otherwise taxable as an entity separate from WRL. Under existing federal income tax laws, the income of the Separate Account is not taxable to WRL, as long as earnings are credited under the variable annuity contracts.

7. Dividend Distributions

Dividends are not declared by the Separate Account, since the increase in the value of the underlying investment in the Mutual Funds is reflected daily in the accumulation unit price used to calculate the equity value within the Separate Account. Consequently, a dividend distribution by the Mutual Funds does not change either the accumulation unit price or equity values within the Separate Account.

74

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

Notes to Financial Statements

December 31, 2011

8. Fair Value Measurements and Fair Value Hierarchy

The Accounting Standards Codification™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.

The Separate Account has categorized its financial instruments into a three level hierarchy which is 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 Statements of Assets and Liabilities 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

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. They reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon daily unadjusted quoted prices, therefore are considered Level 1.

9. Subsequent Events

The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition or disclosure in the financial statements.

75

PART C OTHER INFORMATION

Item 24. Financial Statements and Exhibits

(a) Financial Statements

All required financial statements are included in Part B of this Registration Statement.

(b) Exhibits:

(1)	(a	)	Resolution of the Board of Directors of Western Reserve Life Assurance Co. of Ohio authorizing establishment of the separate Account. Note 3
(2)			Not Applicable.
(3)	(a	)	Principal Underwriting Agreement by and between Western Reserve Life Assurance Co. of Ohio, on its own behalf and on the behalf of the separate investment accounts, and AFSG Securities Corporation. Note 3
	(a	)(1)	First Amendment to Principal Underwriting Agreement by and between Western Reserve Life Assurance Co. of Ohio, on its own behalf and on the behalf of the separate Account, and AFSG Securities Corporation. Note 3
	(a	)(2)	Second Amendment to Principal Underwriting Agreement by and between Western Reserve Life Assurance Co. of Ohio, on its own behalf and on the behalf of the Mutual Fund Account, and AFSG Securities Corporation. Note 8
	(a	)(3)	Amended and Reinstated Principal Underwriting Agreement between WRL and AFSG. Note 15
	(a	)(4)	First Amendment to Amended and Reinstated Principal Underwriting Agreement. Note 15
	(a	)(5)	Amendment No. 2 to Amended and Reinstated Principal Underwriting Agreement. Note 16
	(a	)(6)	Principal Underwriting Agreement. Note 21
	(a	)(7)	Amendment No. 1 to Principal Underwriting Agreement. Note 21
	(a	)(8)	Amended and Restated Principal Underwriting Agreement. Note 26.
	(b	)	Form of Broker/Dealer Supervision and Sales Agreement by and between AFSG Securities Corporation and the Broker/Dealer. Note 1
	(b	)(1)	Form of Life Insurance Company Product Sales Agreement. Note 18
(4)	(a	)	Form of Policy. Note 3
	(b	)	Form of Enhanced Death Benefit Rider (Return of Premium). Note 3
	(c	)	Form of Enhanced Death Benefit Rider (Annual Step-Up). Note 3
	(d	)	Form of Enhanced Death Benefit Rider (Double Enhanced). Note 3
	(e	)	Form of Enhanced Death Benefit Rider (Roll-Up). Note 3
	(f	)	Form of Surrender Charge Modification Rider (Liquidity Rider). Note 3
	(g	)	Form of Additional Death Benefit Rider (Bee-Extra II). Note 3
	(h	)	Form of Premium Enhancement Rider. Note 12
	(i	)	Form of C-Share Rider. Note 12
	(j	)	Form of 5 For Life Rider. Note 12
	(k	)	Form of Living Benefits Rider (GPS). Note 11
	(l	)	Form of Rider (5 for Life-Growth-without Death Benefit) Note 13
	(m	)	Form of Rider (5 for Life-Growth-with Death Benefit) Note 13
	(n	)	Form of Income select for life. Note 14
	(o	)	Form of Retirement Income Choice Rider. Note 18
	(p	)	Form of Rider (Retirement Income Choice Double Withdrawal Base Benefit) Note 21
	(q	)	Form of Policy Endorsement (Fund Facilitation Fee) Note 21
(5)	(a	)	Form of Application. Note 8
(6)	(a	)	Articles of Incorporation of Western Reserve Life Assurance Co. of Ohio. Note 3
	(b	)	ByLaws of Western Reserve Life Assurance Co. of Ohio. Note 3
(7)	(a	)	Reinsurance Agreement (TIRe). Note 23
	(a	)(2)	Amendment 2 to Reinsurance Agreement (TIRe). Note 26.
	(b	)	Reinsurance Agreement (GPHRe). Note 3
(8)	(a	)	Participation Agreement between WRL Series Fund, Inc. and Western Reserve Life Assurance Co. of Ohio. Note 3
	(a	)(1)	Amendment No. 21 to Participation Agreement Between AEGON/Transamerica Series Fund, Inc. and Western Reserve Life Assurance Co. of Ohio. Note 8
	(a	)(2)	Amendment No. 22 to Participation Agreement Between AEGON/Transamerica Series Fund, Inc. and Western Reserve Life Assurance Co. of Ohio. dated December 1, 2003 Note 9
	(a	)(3)	Amendment No. 24 to Participation Agreement Between AEGON/Transamerica Series Fund, Inc. and Western Reserve Life Assurance Co. of Ohio. Note 12
	(a	)(4)	Amendment No. 25 to Participation Agreement (ATST) Note 12.
(8)	(a	)(5)	Amendment No. 26 to Participation Agreement (ATST) Note 14.
	(a	)(6)	Amendment No. 29 to Participation Agreement (TST). Note 20.
	(a	)(7)	Amendment No. 30 to Participation Agreement (TST). Note 21.
	(a	)(8)	Amendment No. 34 to Participation Agreement (TST). Note 24.
	(a	)(9)	Amendment No. 35 to Participation Agreement (TST). Note 25.
	(a	)(10)	Amendment No. 36 to Participation Agreement (TST). Note 26.
(8)	(b	)	Participation Agreement among Variable Insurance Products Fund II, Fidelity Distributors Corporation and Western Reserve Life Assurance Co. of Ohio dated June 14, 1999. Note 4
	(b	)(1)	Amendment No. 1 dated March 15, 2000 to Participation Agreement—Variable Insurance Products Fund II. Note 5
	(b	)(2)	Amendment No. 2 dated April 12, 2001 to Participation Agreement Variable Insurance Products Fund II. Note 6
	(b	)(3)	Amendment No. 3 dated September 1, 2003 to Participation Agreement Variable Insurance Products Fund II. Note 8
(8)	(b	)(4)	Amendment No. 4 dated December 1, 2003 to Participation Agreement Variable Insurance Products Fund II. Note 9
	(b	)(5)	Amendment No. 8 to Participation Agreement Variable Insurance Products Fund II. Note 27.
(8)	(c	)	Participation Agreement between Access Variable Insurance Trust and Western Reserve Life Assurance Co. of Ohio dated May 1, 2003. Notes 7
(8)	(c	)(1)	Amendment No. 1 to Participation Agreement between Access Variable Insurance Trust and Western Reserve Life Assurance Co. of Ohio dated September 1, 2003. Note 8
(8)	(c	)(2)	Amendment No. 2 to Participation Agreement between Access Variable Insurance Trust and Western Reserve Life Assurance Co. of Ohio dated December 1, 2003. Note 9
(8)	(c	)(3)	Amended and Restated Participation Agreement between Access Variable Insurance Trust and Western Reserve Life Assurance Co. of Ohio dated May 1, 2004. Note 9
(8)	(d	)	Participation Agreement (ProFunds). Note 15
	(d	)(2)	Amendment No. 2 to Participation Agreement (ProFund). Note 19.
(8)	(e	)	Participation Agreement (AllianceBernstein). Note 22
	(e	)(1)	Amendment to Participation Agreement (AllianceBernstein) Note 27.
(8)	(f	)	Participation Agreement (Franklin Templeton). Note 22
	(f	)(2)	Amendment No. 2 to Participation Agreement (Franklin Templeton). Note 26.
	(f	)(3)	Amendment No. 3 to Participation Agreement (Franklin Templeton). Note 27.

(9)	(a)		Opinion and Consent of Counsel. Note 27.
	(b)		Consent of Counsel. Note 27.
(10)	(a	)	Consent of Independent Registered Public Accounting Firm. Note 27.
	(b	)	Opinion and Consent of Actuary. Note 14
(11)			Not applicable.
(12)			Not applicable.
(13)			Performance Data Calculations. Note 14
(14)			Powers of Attorney. (Darryl D. Button, Karen R. Wright, Charles T. Boswell, Brenda K. Clancy, John Hunter, Arthur C. Schneider, Eric J. Martin) Note 26

Note 1.	Incorporated herein by reference to Initial Filing to form N-4 Registration Statement (File No. 333-87792) on May 8, 2002.
Note 2.	Incorporated herein by reference to Post-Effective Amendment No. 5 to Form N-4 (File No. 333-93969) on April 14, 2003.
Note 3.	Filed with Initial Filing to Form N-4 Registration Statement (File No. 333-108525) on September 5, 2003.
Note 4.	Incorporated herein by reference to Initial Registration Statement to Form S-6 (File No. 333-57681) dated September 23, 1999.
Note 5.	Incorporated herein by reference to Pre-Effective Amendment No. 1 to Form N-4 (File No. 333-93169) Filed on April 10, 2000.
Note 6.	Incorporated herein by reference to Post-Effective Amendment No. 16 to Form S-6 (File No. 33-69138) dated April 16, 2001.
Note 7.	Incorporated herein by reference to Post-Effective Amendment No. 1 to Form N-6 Registration Statement (File No. 333-100993) dated April 22, 2003.
Note 8.	Filed with Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-108525) dated December 19, 2003.
Note 9.	Filed with Post-Effective Amendment No.1 Form N-4 (File No. 333-108525) dated April 29, 2004.
Note 10.	Filed with Post-Effective Amendment No.2 to Form N-4 Registration Statement (File No. 333-108525) dated January 7, 2005.
Note 11.	Incorporated herein by reference to Initial Filing to Form N-4 Registration Statement (File No. 333-112089) on January 22, 2004.
Note 12.	Filed with Post-Effective Amendment No. 5 to Form N-4 Registration Statement (File No. 333-108525) dated April 27, 2005.
Note 13.	Filed with Post-Effective Amendment No. 6 to Form N-4 Registration Statement (File No. 333-108525) dated December 13, 2005.
Note 14.	Filed with Post-Effective Amendment No. 7 to Form N-4 Registration Statement (File No. 333-108525) dated April 26, 2006.
Note 15.	Filed with Post-Effective Amendment No. 8 to Form N-4 Registration Statement (File No. 333-108525) dated February 13, 2007.
Note 16.	Filed with Post-Effective Amendment No. 10 to Form N-4 Registration (File No. 333-108525) dated April 30, 2007.
Note 17.	Incorporated herein by reference to Initial Filing to Form N-4 Registration Statement (File No. 333-145461) on August 15, 2007.
Note 18.	Filed with Post-Effective Amendment No. 11 to Form N-4 Registration (File No. 333-108525) dated December 21, 2007.
Note 19.	Incorporated herein by reference to Pre-Effective Amendment No. 1 to Form N-4 Registration (File No. 333-145461) dated October 23, 2007.
Note 20.	Filed with Post-Effective Amendment No. 12 to Form N-4 Registration (File No. 333-108525) dated April 29, 2008.
Note 21.	Filed with Post-Effective Amendment No. 13 to Form N-4 Registration (File No. 333-108525) dated November 6, 2008.
Note 22.	Filed with Post-Effective Amendment No. 14 to Form N-4 Registration (File No. 333-108525) dated February 3, 2009.
Note 23.	Filed with Post-Effective Amendment No. 17 to Form N-4 Registration (File No. 333-108525) dated April 30, 2009.
Note 24.	Filed with Post-Effective Amendment No. 18 to Form N-4 Registration Statement (File No. 333-108525) dated November 19, 2009.
Note 25.	Filed with Post-Effective Amendment No. 19 to Form N-4 Registration Statement (File No. 333-108525) dated April 21, 2010.
Note 26.	Filed with Post-Effective Amendment No. 20 to Form N-4 Registration Statement (File No. 333-108525) dated April 29, 2011.
Note 27.	Filed herewith.

C-2

Item 25. Directors and Officers of the Depositor (Western Reserve Life Assurance Co. of Ohio)

Name and Business Address	Principal Positions and Offices with Depositor
Charles T. Boswell 570 Carillon Parkway St. Petersburg, FL 33716	Director and Chief Executive Officer
Brenda K. Clancy 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Director, Chairman of the Board and President
Arthur Schneider 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Director and Senior Vice President, Chief Tax Officer
Eric Martin 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Corporate Controller, and Senior Vice President
John Hunter 4333 Edgewood Rd NE Cedar Rapids, IA 52499-0001	Director, and Division Chief Operating Officer – Life & Protection
Darryl D. Button 4333 Edgewood Rd NE Cedar Rapids, IA 52499	Director and Executive Vice President
Karen R. Wright 400 West Market St. Louisville, KY 40202	Treasurer and Vice President

C-3

Item 26. Persons Controlled by or under Common Control with the Depositor or Registrant.

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
25 East 38th Street, LLC	Delaware	AEGON USA Realty Advisors, LLC is the non-owner Manager	Real estate investments
239 West 20th Street, LLC	Delaware	Sole Member - AEGON USA Realty Advisors, LLC	Real estate investments
313 East 95th Street, LLC	Delaware	Sole Member - AEGON USA Realty Advisors, LLC	Real estate investments
319 East 95th Street, LLC	Delaware	Sole Member - AEGON USA Realty Advisors, LLC	Real estate investments
AEGON Alliances, Inc.	Virginia	100% Commonwealth General Corporation	Insurance company marketing support
AEGON Asset Management Services, Inc.	Delaware	100% AUSA Holding Co.	Registered investment advisor
AEGON Assignment Corporation	Illinois	100% AEGON Financial Services Group, Inc.	Administrator of structured settlements
AEGON Assignment Corporation of Kentucky	Kentucky	100% AEGON Financial Services Group, Inc.	Administrator of structured settlements
AEGON Canada ULC	Canada	AEGON Canada Holding B.V. owns 168,250,001 shares of Common Stock; 1,500 shares of Series III Preferred stock; 2 shares of Series II Preferred stock. TIHI Canada Holding, LLC owns 1,441,941.26 shares of Class B - Series I Preferred stock.	Holding company
AEGON Capital Management Inc.	Canada	100% AEGON Asset Management (Canada) B.V.	Portfolio management company/investment advisor
AEGON-CMF GP, LLC	Delaware	Transamerica Realty Services, Inc. is sole Member	Investment in commercial mortgage loans
AEGON Core Mortgage Fund, LP	Delaware	General Partner - AEGON-CMF GP, LLC	Investment in mortgages
AEGON Direct & Affinity Marketing Services Limited	Hong Kong	100% AEGON DMS Holding B.V.	Provide consulting services ancillary to the marketing of insurance products overseas.
AEGON Direct Marketing Services, Inc.	Maryland	Monumental Life Insurance Company owns 103,324 shares; Commonwealth General Corporation owns 37,161 shares	Marketing company
AEGON Direct Marketing Services Australia Pty Ltd.	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Marketing/operations company
AEGON Direct Marketing Services Europe Ltd.	United Kingdom	100% Cornerstone International Holdings, Ltd.	Marketing
AEGON Direct Marketing Services Insurance Broker (HK) Limited	Hong Kong	100% AEGON Direct Marketing Services Hong Kong Limited	Brokerage company
AEGON Direct Marketing Services International, Inc.	Maryland	100% AUSA Holding Company	Marketing arm for sale of mass marketed insurance coverage
AEGON Direct Marketing Services Japan K.K.	Japan	100% AEGON DMS Holding B.V.	Marketing company
AEGON Direct Marketing Services Korea Co., Ltd.	Korea	100% AEGON DMS Holding B.V.	Provide consulting services ancillary to the marketing of insurance products overseas.
AEGON Direct Marketing Services Mexico, S.A. de C.V.	Mexico	100% AEGON DMS Holding B.V.	Provide management advisory and technical consultancy services.
AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V.	Mexico	100% AEGON DMS Holding B.V.	Provide marketing, trading, telemarketing and advertising services in favor of any third party, particularly in favor of insurance and reinsurance companies.

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AEGON Direct Marketing Services, Inc.	Taiwan	100% AEGON DMS Holding B.V.	Authorized business: Enterprise management consultancy, credit investigation services, to engage in business not prohibited or restricted under any law of R.O.C., except business requiring special permission of government
AEGON Direct Marketing Services (Thailand) Ltd.	Thailand	97% Transamerica International Direct Marketing Consultants, LLC; remaining 3% held by various AEGON employees	Marketing of insurance products in Thailand
AEGON Financial Services Group, Inc.	Minnesota	100% Transamerica Life Insurance Company	Marketing
AEGON Fund Management Inc.	Canada	100% AEGON Asset Management (Canada) B.V.	Mutual fund manager
AEGON Funding Company, LLC.	Delaware	100% AEGON USA, LLC	Issue debt securities-net proceeds used to make loans to affiliates
AEGON Institutional Markets, Inc.	Delaware	100% Commonwealth General Corporation	Provider of investment, marketing and administrative services to insurance companies
AEGON Life Insurance Agency Inc.	Taiwan	100% AEGON Direct Marketing Services, Inc. (Taiwan Domiciled)	Life insurance
AEGON Managed Enhanced Cash, LLC	Delaware	Members: Transamerica Life Insurance Company (91.4675%) ; Monumental Life Insurance Company (8.5325%)	Investment vehicle for securities lending cash collateral
AEGON Management Company	Indiana	100% AEGON U.S. Holding Corporation	Holding company
AEGON N.V.	Netherlands	22.446% of Vereniging AEGON Netherlands Membership Association	Holding company
AEGON Stable Value Solutions Inc.	Delaware	100% Commonwealth General Corporation	Principle Business: Provides management services to the stable value division of AEGON insurers who issue synthetic GIC contracts.
AEGON Structured Settlements, Inc.	Kentucky	100% Commonwealth General Corporation	Administers structured settlements of plaintiff’s physical injury claims against property and casualty insurance companies
AEGON U.S. Holding Corporation	Delaware	100% Transamerica Corporation	Holding company
AEGON USA Asset Management Holding, LLC	Iowa	100% AUSA Holding Company	Holding company
AEGON USA Investment Management, LLC	Iowa	100% AEGON USA Asset Management Holding, LLC	Investment advisor
AEGON USA Real Estate Services, Inc.	Delaware	100% AEGON USA Realty Advisors, Inc.	Real estate and mortgage holding company
AEGON USA Realty Advisors, LLC	Iowa	Sole Member - AEGON USA Asset Management Holding, LLC	Administrative and investment services
AEGON USA Realty Advisors of California, Inc.	Iowa	100% AEGON USA Realty Advisors, Inc.	Investments
AEGON USA Travel and Conference Services LLC	Iowa	100% Money Services, Inc.	Travel and conference services
AEGON USA, LLC	Iowa	100% AEGON U.S. Holding Corporation	Holding company
AFSG Securities Corporation	Pennsylvania	100% Commonwealth General Corporation	Inactive
ALH Properties Eight LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Eleven LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Four LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Nine LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Seven LLC	Delaware	100% FGH USA LLC	Real estate

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
ALH Properties Seventeen LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Sixteen LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Ten LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Twelve LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Two LLC	Delaware	100% FGH USA LLC	Real estate
American Bond Services LLC	Iowa	100% Transamerica Life Insurance Company (sole member)	Limited liability company
ARC Reinsurance Corporation	Hawaii	100% Transamerica Corporation	Property & Casualty Insurance
ARV Pacific Villas, A California Limited Partnership	California	General Partners - Transamerica Affordable Housing, Inc. (0.5%); Non-Affiliate of AEGON, Jamboree Housing Corp. (0.5%). Limited Partner: Transamerica Life Insurance Company (99%)	Property
Asia Business Consulting Company	China	100% Asia Investments Holdings, Limited	Provide various services upon request from Beijing Dafu Insurance Agency.
Asia Investments Holdings, Limited	Hong Kong	99% Transamerica Life Insurance Company	Holding company
AUSA Holding Company	Maryland	100% AEGON USA, LLC	Holding company
AUSA Properties, Inc.	Iowa	100% AUSA Holding Company	Own, operate and manage real estate
AUSACAN LP	Canada	General Partner - AUSA Holding Co. (1%); Limited Partner - AEGON USA, LLC (99%)	Inter-company lending and general business
AXA Equitable AgriFinance, LLC	Delaware	Members: AEGON USA Realty Advisors, LLC (50%); AXA Equitable Life Insurance Company, a non-affiliate of AEGON (50%)	Agriculturally-based real estate advisory services
Bay Area Community Investments I, LLC	California	70%Transamerica Life Insurance Company; 30% Monumental Life Insurance Company	Investments in low income housing tax credit properties
Bay State Community Investments I, LLC	Delaware	100% Monumental Life Insurance Company	Investments in low income housing tax credit properties
Bay State Community Investments II, LLC	Delaware	100% Monumental Life Insurance Company	Investments in low income housing tax credit properties
Beijing Dafu Insurance Agency Co. Ltd.	Peoples Republic of China	10% owned by WFG China Holdings, Inc.; 90% owned by private individual (non-AEGON associated)	Insurance Agency
Canadian Premier Holdings Ltd.	Canada	100% AEGON DMS Holding B.V.	Holding company
Canadian Premier Life Insurance Company	Canada	100% Canadian Premier Holdings Ltd.	Insurance company
CBC Insurance Revenue Securitization, LLC	Delaware	100% Clark Consulting, LLC	Special purpose
Chicago Community Housing Fund I, LLC	Delaware	100% Transamerica Life Insurance Company	Investments
Clark/Bardes (Bermuda) Ltd.	Bermuda	100% Clark Consulting, LLC	Insurance agency
Clark, LLC	Delaware	Sole Member - Diverisified Investment Advisors, Inc.	Holding company
Clark Consulting, LLC	Delaware	100% Clark, LLC	Financial consulting firm
Clark Investment Strategies, inc.	Delaware	100% Clark Consulting, LLC	Registered investment advisor
Clark Securities, Inc.	California	100% Clark Consulting, LLC	Broker-Dealer
Commonwealth General Corporation	Delaware	100% AEGONUSA, LLC	Holding company
Consumer Membership Services Canada Inc.	Canada	100% Canadian Premier Holdings Ltd.	Marketing of credit card protection membership services in Canada
Cornerstone International Holdings Ltd.	UK	100% AEGON DMS Holding B.V.	Holding company
CRG Insurance Agency, Inc.	California	100% Clark Consulting, Inc.	Insurance agency
Creditor Resources, Inc.	Michigan	100% AUSA Holding Co.	Credit insurance
CRI Canada Inc.	Canada	100% Creditor Resources, Inc.	Holding company
CRI Solutions Inc.	Maryland	100% Creditor Resources, Inc.	Sales of reinsurance and credit insurance
Cupples State LIHTC Investors, LLC	Delaware	100% Garnet LIHTC Fund VIII, LLC	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Diversified Actuarial Services, Inc.	Massachusetts	100% Diversified Investment Advisors, Inc.	Employee benefit and actuarial consulting
Diversified Investors Securities Corp.	Delaware	100% Diversified Investment Advisors, Inc.	Broker-Dealer
Diversified Retirement Corporation	Delaware	100% AUSA Holding Company	Registered investment advisor
Erfahrungsschatz GmbH	Germany	100% Cornerstone International Holdings, Ltd.	Marketing/membership
FD TLIC, LLC	New York	100% Transamerica Life Insurance Company	Broadway production
FD TLIC Ltd.	United Kingdom	100% FD TLIC, LLC	Theatre production
FGH Realty Credit LLC	Delaware	100% FGH USA, LLC	Real estate
FGH USA LLC	Delaware	100% RCC North America LLC	Real estate
FGP 90 West Street LLC	Delaware	100% FGH USA LLC	Real estate
FGP West Mezzanine LLC	Delaware	100% FGH USA LLC	Real estate
FGP West Street LLC	Delaware	100% FGP West Mezzanine LLC	Real estate
FGP West Street Two LLC	Delaware	100% FGH USA LLC	Real estate
Fifth FGP LLC	Delaware	100% FGH USA LLC	Real estate
Financial Planning Services, Inc.	District of Columbia	100% Commonwealth General Corporation	Special-purpose subsidiary
First FGP LLC	Delaware	100% FGH USA LLC	Real estate
Fourth & Market Funding, LLC	Delaware	Commonwealth General Corporation owns 0% participating percentage, but is Managing Member. Ownership: 99% Monumental Life Insurance Company and 1% Garnet Assurance Corporation II	Inactive
Fourth FGP LLC	Delaware	100% FGH USA LLC	Real estate
Garnet Assurance Corporation	Kentucky	100%Transamerica Life Insurance Company	Investments
Garnet Assurance Corporation II	Iowa	100% Commonwealth General Corporation	Business investments
Garnet Assurance Corporation III	Iowa	100% Transamerica Life Insurance Company	Business investments
Garnet Community Investments, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments II, LLC	Delaware	100% Monumental Life Insurance Company	Securities
Garnet Community Investments III, LLC	Delaware	100%Transamerica Life Insurance Company	Business investments
Garnet Community Investments IV, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments V, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments VI, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments VII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments VIII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments IX, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments X, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XI, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XVIII, LLC	Delaware	100% Transamerica Life Insurance Company	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet Community Investments XX, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXIV, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Real estate investments
Garnet Community Investments XXV, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investment XXVI, LLC	Delaware	100% Transamerica Life Insurance Company	Investments
Garnet Community Investments XXVII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investment XXVIII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXIX, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXX, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXI, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet LIHTC Fund II, LLC	Delaware	Members: Garnet Community Investments II, LLC (0.01%); Metropolitan Life Insurance Company, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund III, LLC	Delaware	Members: Garnet Community Investments III, LLC (0.01%); Jefferson-Pilot Life Insurance Company, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund IV, LLC	Delaware	Members: Garnet Community Investments IV, LLC (0.01%); Goldenrod Asset Management, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund V, LLC	Delaware	Members: Garnet Community Investments V, LLC (0.01%); Lease Plan North America, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund VI, LLC	Delaware	Members: Garnet Community Investments VI, LLC (0.01%); Pydna Corporation, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund VII, LLC	Delaware	Members: Garnet Community Investments VII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate(99.99%)	Investments
Garnet LIHTC Fund VIII, LLC	Delaware	Members: Garnet Community Investments VIII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate(99.99%)	Investments
Garnet LIHTC Fund IX, LLC	Delaware	Members: Garnet Community Investments IX, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund X, LLC	Delaware	Members: Garnet Community Investments X, LLC (0.01%); Goldenrod Asset Management, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XI, LLC	Delaware	Members: Garnet Community Investments XI, LLC (0.01%); NorLease, Inc., a non-AEGON affiliate (99.99%)	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XII, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc. (13.30%)	Investments
Garnet LIHTC Fund XII-A, LLC	Delaware	Garnet Community Investments XII, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XII-B, LLC	Delaware	Garnet Community Investments XII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XII-C, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); NorLease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIII, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc. (13.30%)	Investments
Garnet LIHTC Fund XIII-A, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIII-B, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); Norlease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIV, LLC	Delaware	0.01% Garnet Community Investments, LLC; 49.995% Wells Fargo Bank, N.A.; and 49.995% Goldenrod Asset Management, Inc.	Investments
Garnet LIHTC Fund XV, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XVI, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); FNBC Leasing Corporation, a non-AEGON entity (99.99%)	Investments
Garnet LIHTC Fund XVII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); ING USA Annuity and Life Insurance company, a non-affiliate of AEGON (12.999%), and ReliaStar Life Insurance Company, a non-affiliate of AEGON (86.991%).	Investments
Garnet LIHTC Fund XVIII, LLC	Delaware	Members: Garnet Community Investments XVIII, LLC (0.01%); Verizon Capital Corp., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIX, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XX, LLC	Delaware	Sole Member - Garnet Community Investments XX, LLC	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XXI, LLC	Delaware	100% Garnet Community Investments, LLC	Investments
Garnet LIHTC Fund XXII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Norlease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XXIII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Idacorp Financial Services, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XXIV, LLC	Delaware	100% Garnet Community Investments XXVI, LLC	Investments
Garnet LIHTC Fund XXV, LLC	Delaware	Members: Garnet Community Investment XXV, LLC (0.01%); Garnet LIHTC Fund XXVIII LLC (1%); non-affiliates of AEGON: Mt. Hamilton Fund, LLC (97.99%); Google Affordable Housing I LLC (1%)	Investments
Garnet LIHTC Fund XXVI, LLC	Delaware	Members: Garnet Community Investments XXVI, LLC (0.01%); American Income Life Insurance Company, a non-affiliate of AEGON (99.99%)	Investments
Garnet LIHTC Fund XXVII, LLC	Delaware	Members: Garnet Community Investments XXVII, LLC (0.01%); Transamerica Life Insurance Company (16.7045%); non-affiliates of AEGON: Aetna Life Insurance Company (30.2856%); New York Life Insurance Company (22.7142%); ProAssurance Casualty Company (3.6343%); ProAssurance Indemnity Company (8.4800%); State Street Brank and Trust Company (18.1714%)	Investments
Garnet LIHTC Fund XXVIII, LLC	Delaware	Members: Garnet Community Investments XXVIII LLC (0.01%); non-affiliates of AEGON: USAA Casualty Insurance Company (17.998%); USAA General Indemnity Company (19.998%); USAA Life Insurance Company (3.999%); United Services Automobile Association (57.994%)	Real estate investments
Garnet LIHTC Fund XXIX, LLC	Delaware	Members: Garnet Community Investments XXIX, LLC (.01%); non-affiliate of AEGON: Bank of America, N.A. (99.99%)	Investments
Garnet LIHTC Fund XXX, LLC	Delaware	Managing Member - Garnet Community Investments XXX, LLC	Investments
Garnet LIHTC Fund XXXI, LLC	Delaware	Members: Garnet Community Investments XXXI, LLC (0.1%); non-affiliates of AEGON: Thunderbolt Peak Fund, LLC (98.99%); Google Affordable Housing I, LLC (1%)	Investments
Global Preferred Re Limited	Bermuda	100% AEGON USA, LLC	Reinsurance
Horizons Acquisition 5, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company
Horizons St. Lucie Development, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Innergy Lending, LLC	Delaware	50% World Financial Group, Inc.; 50% ComUnity Lending, Inc.(non-AEGON entity)	In the process of being dissolved
Intersecurities Insurance Agency, Inc.	California	100% Western Reserve Life Assurance Co. of Ohio	Insurance agency
Investment Advisors International, Inc.	Delaware	100% AUSA Holding Company	Investments
Investors Warranty of America, Inc.	Iowa	100% AUSA Holding Co.	Leases business equipment
IWA Commercial Venture, LLC	Georgia	Sole Member - Investors Waranty of America, Inc.	Maintain property tax abatement
Legacy General Insurance Company	Canada	100% Canadian Premier Holdings Ltd.	Insurance company
Life Investors Alliance, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Purchase, own, and hold the equity interest of other entities
LIICA Holdings, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	To form and capitalize LIICA Re I, Inc.
LIICA Re I, Inc.	Vermont	100% LIICA Holdings, LLC	Captive insurance company
LIICA Re II, Inc.	Vermont	100%Transamerica Life Insurance Company	Captive insurance company
Massachusetts Fidelity Trust Company	Iowa	100% AUSA Holding Co.	Trust company
MLIC Re I, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
Money Services, Inc.	Delaware	100% AUSA Holding Co.	Provides financial counseling for employees and agents of affiliated companies
Monumental Financial Services, Inc.	Maryland	100% AEGON USA, LLC	DBA in the State of West Viriginia for United Financial Services, Inc.
Monumental General Administrators, Inc.	Maryland	100% AUSA Holding Company	Provides management services to unaffiliated third party administrator
Monumental Life Insurance Company	Iowa	87.72% Commonwealth General Corporation; 12.28% AEGON USA, LLC	Insurance Company
nVISION Financial, Inc.	Iowa	100% AUSA Holding Company	Special-purpose subsidiary
NEF Investment Company	California	100% Transamerica Life Insurance Company	Real estate development
New Markets Community Investment Fund, LLC	Iowa	50% AEGON Institutional Markets, Inc.; 50% AEGON USA Realty Advisors, Inc.	Community development entity
Oncor Insurance Services, LLC	Iowa	Sole Member - Life Investors Financial Group, Inc.	Direct sales of term life insurance
Peoples Benefit Services, LLC	Pennsylvania	Sole Member - Stonebridge Life Insurance Company	Special-purpose subsidiary
Pine Falls Re, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
Primus Guaranty, Ltd.	Bermuda	Partners are: Transamerica Life Insurance Company (13.1%) and non-affiliates of AEGON: XL Capital, Ltd. (34.7%); CalPERS/PCO Corporate Partners Fund, LLC (13.0%); Radian Group (11.1%). The remaining 28.1% of stock is publicly owned.	Provides protection from default risk of investment grade corporate and sovereign issues of financial obligations.
Prisma Holdings, Inc. I	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Prisma Holdings, Inc. II	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
PSL Acquisitions, LLC	Iowa	Sole Member: Investors Warranty of America, Inc.	Aquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed read estate.
PSL Acquisitions Operating, LLC	Iowa	Sole Member: Investors Warranty of America, Inc.	Owner of Core subsidiary entities

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Pyramid Insurance Company, Ltd.	Hawaii	100% Transamerica Corporation	Property & Casualty Insurance
RCC North America LLC	Delaware	100% AEGON USA, LLC	Real estate
Real Estate Alternatives Portfolio 1 LLC	Delaware	Members: Transamerica Life Insurance Company (90.96%); Monumental Life Insurance Company (6.30%); Transamerica Financial Life Insurance Company (2.74%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment
Real Estate Alternatives Portfolio 2 LLC	Delaware	Members are: Transamerica Life Insurance Company (90.25%); Transamerica Financial Life Insurance Company (7.5%); Stonebridge Life Insurance Company (2.25%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment
Real Estate Alternatives Portfolio 3 LLC	Delaware	Members are: Transamerica Life Insurance Company (73.4%); Monumental Life Insurance Company (25.6%); Stonebridge Life Insurance Company (1%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment
Real Estate Alternatives Portfolio 3A, Inc.	Delaware	Members: Monumental Life Insurance Company (37%); Transamerica Financial Life Insurance Company (9.4%); Transamerica Life Insurance Company (52.6%); Stonebridge Life Insurance Company (1%)	Real estate alternatives investment
Real Estate Alternatives Portfolio 4 HR, LLC	Delaware	Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty Advisors, Inc.	Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment
Real Estate Alternatives Portfolio 4 MR, LLC	Delaware	Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty Advisors, Inc.	Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment
Realty Information Systems, Inc.	Iowa	100% Transamerica Realty Services, LLC	Information Systems for real estate investment management
Retirement Project Oakmont	California	General Partner: Transamerica Oakmont Retirement Associates, a CA limited partnership; Transamerica Life Insurance Company (limited partner); and Oakmont Gardens, a CA limited partnership (non-AEGON entity limited partner). General Partner of Transamerica Oakmont Retirement Associates is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors.	Senior living apartment complex
River Ridge Insurance Company	Vermont	100% AEGON Management Company	Captive insurance company
Second FGP LLC	Delaware	100% FGH USA LLC	Real estate

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Selient Inc.	Canada	100% Canadian Premier Holdings Ltd.	Application service provider providing loan origination platforms to Canadian credit unions.
Seventh FGP LLC	Delaware	100% FGH USA LLC	Real estate
Short Hills Management Company	New Jersey	100% AEGON U.S. Holding Corporation	Holding company
Southwest Equity Life Insurance Company	Arizona	Voting common stock is allocated 75% of total cumulative vote - AEGON USA, LLC. Participating Common stock (100% owned by non-AEGON shareholders) is allocated 25% of total cumulative vote.	Insurance
St. Lucie West Development Company, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company
Stonebridge Benefit Services, Inc.	Delaware	100% Commonwealth General Corporation	Health discount plan
Stonebridge Casualty Insurance Company	Ohio	100% AEGON USA, LLC	Insurance company
Stonebridge Group, Inc.	Delaware	100% Commonwealth General Corporation	General purpose corporation
Stonebridge International Insurance Ltd.	UK	100% Cornerstone International Holdings Ltd.	General insurance company
Stonebridge Life Insurance Company	Vermont	100% Commonwealth General Corporation	Insurance company
Stonebridge Reinsurance Company	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
TAH-MCD IV, LLC	Iowa	Sole Member - Transamerica Affordable Housing, Inc.	Serve as the general partner for McDonald Corporate Tax Credit Fund IV Limited Partnership
TAH Pentagon Funds, LLC	Iowa	Sole Member - Transamerica Affordable Housing, Inc.	Serve as a general partner in a lower-tier tax credit entity
TAHP Fund 1, LLC	Delaware	Sole Member - Monumental Life Insurance Company	Real estate investments
TAHP Fund 2, LLC	Delaware	Sole Member - Garnet LIHTC Fund VIII, LLC	Low incoming housing tax credit
TAHP Fund VII, LLC	Delaware	Investor Member: Garnet LIHTC Fund XIX, LLC	Real estatement investments
TCF Asset Management Corporation	Colorado	100% TCFC Asset Holdings, Inc.	A depository for foreclosed real and personal property
TCFC Air Holdings, Inc.	Delaware	100% Transamerica Commercial Finance Corporation, I	Holding company
TCFC Asset Holdings, Inc.	Delaware	100% Transamerica Commercial Finance Corporation, I	Holding company
The AEGON Trust Advisory Board: Mark W. Mullin, Alexander R. Wynaendts, and Craig D. Vermie	Delaware	AEGON International B.V.	Voting Trust
The RCC Group, Inc.	Delaware	100% FGH USA LLC	Real estate
THH Acquisitions, LLC	Iowa	Sole Member - Investors Waranty of America, Inc.	Acquirer of Core South Carolina mortgage loans from Investors Warranty of America, Inc. and holder of foreclosed real estate.
TIHI Canada Holding, LLC	Iowa	Sole Member - Transamerica International Holdings, Inc.	Holding company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
TIHI Mexico, S. de R.L. de C.V.	Mexico	95% Transamerica International Holdings, Inc.; 5% Transamerica Life Insurance Company	To render and receive all kind of administrative, accountant, mercantile and financial counsel and assistance to and from any other Mexican or foreign corporation, whether or not this company is a shareholder of them
TLIC Riverwood Reinsurance, Inc.	Iowa	100% Transamerica Life Insurance Company	Limited purpose subsidiary life insurance company
Tradition Development Company, LLC	Florida	Sole Member – PSL Acquisitions Operating, LLC	Development company
Tradition Irrigation Company, LLC	Florida	Sole Member – PSL Acquisitions Operating, LLC	Irrigation company
Transamerica Accounts Holding Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica Advisors Life Insurance Company	Arkansas	100% AEGON USA, LLC	Insurance company
Transamerica Advisors Life Insurance Company of New York	New York	100% AEGON USA, LLC	Insurance company
Transamerica Affinity Marketing Corretora de Seguros Ltda.	Brazil	749,000 quota shares owned by AEGON DMS Holding B.V.; 1 quota share owned by AEGON International B.V.	Brokerage company
Transamerica Affinity Services, Inc.	Maryland	100% AEGON Direct Marketing Services, Inc.	Marketing company
Transamerica Affordable Housing, Inc.	California	100% Transamerica Realty Services, LLC	General partner LHTC Partnership
Transamerica Agency Network, Inc.	Iowa	100% AUSA Holding Company	Special purpose subsidiary
Transamerica Annuity Service Corporation	New Mexico	100% Transamerica International Holdings, Inc.	Performs services required for structured settlements
Transamerica Asset Management, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 77%; AUSA Holding Co. owns 23%.	Fund advisor
Transamerica Aviation LLC	Delaware	100% TCFC Air Holdings, Inc.	Special purpose corporation
Transamerica Capital, Inc.	California	100% AUSA Holding Co.	Broker/Dealer
Transamerica Commercial Finance Corporation, I	Delaware	100% Transamerica Finance Corporation	Holding company
Transamerica Consultora Y Servicios Limitada	Chile	95% Transamerica Life Insurance Company; 5% Transamerica International Holdings, Inc.	Special purpose limited liability corporation
Transamerica Consumer Finance Holding Company	Delaware	100% TCFC Asset Holdings, Inc.	Consumer finance holding company
Transamerica Corporation	Delaware	100% The AEGON Trust	Major interest in insurance and finance
Transamerica Corporation	Oregon	100% Transamerica Corporation	Holding company
Transamerica Direct Marketing Asia Pacific Pty Ltd.	Australia	100% AEGON DMS Holding B.V.	Holding company
Transamerica Direct Marketing Consultants, LLC	Maryland	51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc.	Provide consulting services ancillary to the marketing of insurance products overseas.
Transamerica Direct Marketing Consultants Private Limited	India	100% AEGON DMS Holding B.V.	Marketing consultant
Transamerica Distribution Finance – Overseas, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Commercial Finance
Transamerica Finance Corporation	Delaware	100% Transamerica Corporation	Commercial & Consumer Lending & equipment leasing

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Financial Advisors, Inc.	Delaware	1,00 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc.	Broker/Dealer
Transamerica Financial Life Insurance Company	New York	87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company	Insurance
Transamerica Fund Services, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 44%; AUSA Holding Company owns 56%	Mutual fund
Transamerica Funding LP	U.K.	99% Transamerica Leasing Holdings, Inc.; 1% Transamerica Commercial Finance Corporation, I	Intermodal leasing
Transamerica Home Loan	California	100% Transamerica Consumer Finance Holding Company	Consumer mortgages
Transamerica Insurance Marketing Asia Pacific Pty Ltd.	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Insurance intermediary
Transamerica International Direct Marketing Consultants, LLC	Maryland	51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc.	Provide consulting services ancillary to the marketing of insurance products overseas.
Transamerica International Holdings, Inc.	Delaware	100% AEGON USA, LLC	Holding company
Transamerica International RE (Bermuda) Ltd.	Bermuda	100% AEGON USA, LLC	Reinsurance
Transamerica International Re Escritório de Representação no Brasil Ltd	Brazil	95% Transamerica International Re(Bermuda) Ltd.; 5% Transamerica International Holdings, Inc.	Insurance and reinsurance consulting
Transamerica Investment Management, LLC	Delaware	Sole Member - AEGON USA Asset Management Holding, LLC	Investment advisor
Transamerica Leasing Holdings, Inc.	Delaware	100% Transamerica Finance Corporation	Holding company
Transamerica Life (Bermuda) Ltd.	Bermuda	100% Transamerica Life Insurance Company	Long-term life insurer in Bermuda - - will primarily write fixed universal life and term insurance
Transamerica Life Canada	Canada	100% AEGON Canada ULC	Life insurance company
Transamerica Life Insurance Company	Iowa	676,190 shares Common Stock owned by Transamerica International Holdings, Inc.; 86,590 shares of Preferred Stock owned by Transamerica Corporation; 30,564 shares of Preferred Stock owned by AEGON USA, LLC	Insurance
Transamerica Minerals Company	California	100% Transamerica Realty Services, LLC	Owner and lessor of oil and gas properties
Transamerica Oakmont Corporation	California	100% Transamerica International Holdings, Inc.	General partner retirement properties

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Oakmont Retirement Associates	California	General Partner is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors.	Senior living apartments
Transamerica Pacific Insurance Company, Ltd.	Hawaii	26,000 shares common stock owned by Commonwealth General Corporation; 1,000 shares of common stock owned by Transamerica International Holdings, Inc.	Life insurance
Transamerica Pyramid Properties LLC	Iowa	100% Monumental Life Insurance Company	Realty limited liability company
Transamerica Realty Investment Properties LLC	Delaware	100% Monumental Life Insurance Company	Realty limited liability company
Transamerica Realty Services, LLC	Delaware	AUSA Holding Company - sole Member	Real estate investments
Transamerica Resources, Inc.	Maryland	100% Monumental General Administrators, Inc.	Provides actuarial consulting services
Transamerica Retirement Management, Inc.	Minnesota	100% AEGON Financial Services Group, Inc.	Life Insurance and underwriting services
Transamerica Retirement Services Corp.	Ohio	100% AUSA Holding Company	Record keeping
Transamerica Small Business Capital, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica Trailer Leasing Sp. Z.O.O.	Poland	100% Transamerica Leasing Holdings, Inc.	Leasing
Transamerica Vendor Financial Services Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Provides commercial leasing
United Financial Services, Inc.	Maryland	100% AEGON USA, LLC	General agency
Universal Benefits, LLC	Iowa	100% AUSA Holding Co.	Third party administrator
Western Reserve Life Assurance Co. of Ohio	Ohio	100% AEGON USA, LLC	Insurance
WFG China Holdings, Inc.	Delaware	100% World Financial Group, Inc.	Hold interest in Insurance Agency located in Peoples Republic of China
WFG Insurance Agency of Puerto Rico, Inc.	Puerto Rico	100% World Financial Group Insurance Agency, Inc.	Insurance agency
WFG Properties Holdings, LLC	Georgia	100% World Financial Group, Inc.	Marketing
WFG Property & Casualty Insurance Agency of Nevada, Inc.	Nevada	100% WFG Property & Casualty Insurance Agency, Inc.	Insurance agency
WFG Property & Casualty Insurance Agency, Inc.	Georgia	100% World Financial Group Insurance Agency, Inc.	Insurance agency
WFG Reinsurance Limited	Bermuda	51% owned by World Financial Group, Inc; remaining 49% is annually offered to independent contractors associated with WFG Reinsurance Ltd.	Reinsurance
WFG Securities of Canada, Inc.	Canada	100% World Financial Group Holding Company of Canada, Inc.	Mutual fund dealer
World Financial Group Holding Company of Canada Inc.	Canada	100% Transamerica International Holdings, Inc.	Holding company
World Financial Group, Inc.	Delaware	100% AEGON Asset Management Services, Inc.	Marketing
World Financial Group Insurance Agency of Canada Inc.	Ontario	50% World Financial Group Holding Co. of Canada Inc.; 50% World Financial Group Subholding Co. of Canada Inc.	Insurance agency
World Financial Group Insurance Agency of Hawaii, Inc.	Hawaii	100% World Financial Group Insurance Agency, Inc.	Insurance agency
World Financial Group Insurance Agency of Massachusetts, Inc.	Massachusetts	100% World Financial Group Insurance Agency, Inc.	Insurance agency
World Financial Group Insurance Agency of Wyoming, Inc.	Wyoming	100% World Financial Group Insurance Agency, Inc.	Insurance agency

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
World Financial Group Insurance Agency, Inc.	California	100% Western Reserve Life Assurance Co. of Ohio	Insurance agency
World Financial Group Subholding Company of Canada Inc.	Canada	100% World Financial Group Holding Company of Canada, Inc.	Holding company
World Group Securities, Inc.	Delaware	100% AEGON Asset Management Services, Inc.	Broker-dealer
Yarra Rapids, LLC	Delaware	Yarra Rapids Management, LLC is the non-owner Manager	Real estate investments
Yarra Rapids Management, LLC	Delaware	AEGON USA Realty Advisors, LLC is non-owner Manager; no ownership interests at this time.	Company organized for the intention of real estate investments but no business at this time
Zahorik Company, Inc.	California	100% AUSA Holding Co.	Inactive
Zero Beta Fund, LLC	Delaware	Members are: Transamerica Life Insurance Company (74.0181%); Monumental Life Insurance Company (23.6720%); Transamerica Financial Life Insurance Company (2.3097%). Manager: AEGON USA Investment Management LLC	Aggregating vehicle formed to hold various fund investments.

Item 27. Number of Contract Owners

As of February 29, 2012 there were 17,455 Contract owners.

Item 28. Indemnification

Provisions exist under the Ohio General Corporation Law (see, e.g., Section 1701.13), the Second Amended Articles of Incorporation of Western Reserve and the Amended Code of Regulations of Western Reserve whereby Western Reserve may indemnify certain persons against certain payments incurred by such persons.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Depositor pursuant to the foregoing provisions, or otherwise, the Depositor has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in connection with the securities being registered), the Depositor will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

ITEM 29. Principal Underwriters

(a) Transamerica Capital, Inc. serves as the principal underwriter for:

Transamerica Capital, Inc. serves as the principal underwriter for the Retirement Builder Variable Annuity Account, Separate Account VA A, Separate Account VA B, Separate Account VA C, Separate Account VA D, Separate Account VA E, Separate Account VA F, Separate Account VA I, Separate Account VA J, Separate Account VA K, Separate Account VA L, Separate Account VA M, Separate Account VA P, Separate Account VA Q, Separate Account VA R, Separate Account VA S, Separate Account VA W, Separate Account VA X, Separate Account VA Y; Separate Account VA EE, Separate Account VA FF, Separate Account VA HH, Separate Account VA-1, Separate Account VA-2L, Separate Account VA-5, Separate Account VA-6, Separate Account VA-7, Separate Account VA-8, Separate Account Fund B, Separate Account Fund C, Transamerica Corporate Separate Account Sixteen, Transamerica Separate Account R3, Separate Account VL, Separate Account VUL-1; Separate Account VUL-2, Separate Account VUL-3, Separate Account VUL-4, Separate Account VUL-5, Separate Account VUL-6, Separate Account VUL A, and Variable Life Account A. These accounts are separate accounts of Transamerica Life Insurance Company.

Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA N, Separate Account VA BNY, Separate Account VA HNY, Separate Account VA PP, Separate Account VA QNY, Separate Account VA QQ, Separate Account VA WNY, Separate Account VA YNY, TFLIC Separate Account VNY, Separate Account VA-2LNY, TFLIC Separate Account C, Separate Account VA-5NLNY, Separate Account VA-6NY, TFLIC Series Annuity Account and TFLIC Series Life Account. These accounts are separate accounts of Transamerica Financial Life Insurance Company.

Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA U, Separate Account VA V, Separate Account VA AA, WRL Series Life Account, WRL Series Life Account G, WRL Series Life Corporate Account, WRL Series Annuity Account and WRL Series Annuity Account B. These accounts are separate accounts of Western Reserve Life Assurance Co. of Ohio.

Transamerica Capital, Inc. also serves as principal underwriter for Separate Account VA BB, Separate Account VA CC and Separate Account VL E. This account is a separate account of Monumental Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for Merrill Lynch Life Variable Annuity Separate Account, Merrill Lynch Life Variable Annuity Separate Account A, Merrill Lynch Life Variable Annuity Separate Account B, Merrill Lynch Life Variable Annuity Separate Account C, Merrill Lynch Life Variable Annuity Separate Account D, Merrill Lynch Variable Life Separate Account, and Merrill Lynch Life Variable Life Separate Account II. These accounts are separate accounts of Transamerica Advisors Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for ML of New York Variable Annuity Separate Account, ML of New York Variable Annuity Separate Account A, ML of New York Variable Annuity Separate Account B, ML of New York Variable Annuity Separate Account C, ML of New York Variable Annuity Separate Account D, ML of New York Variable Life Separate Account, and ML of New York Variable Life Separate Account II. These accounts are separate accounts of Transamerica Advisors Life Insurance Company of New York.

Transamerica Capital, Inc. also serves as principal underwriter for Transamerica Series Trust, Transamerica Funds and Transamerica Investors, Inc.

(b) Directors and Officers of Transamerica Capital, Inc.:

Name	Principal Business Address	Position and Offices with Underwriter
Thomas A. Swank	(1)	Director
Michael W. Brandsma	(2)	Director, President and Chief Financial Officer
David W. Hopewell	(1)	Director
David R. Paulsen	(2)	Director, Chief Executive Officer and Chief Sales Officer
Blake S. Bostwick	(2)	Chief Marketing Officer and Chief Operations Officer
Courtney John	(2)	Chief Compliance Officer and Vice President
Erin K. Burke	(1)	Assistant Secretary
Amy Angle	(3)	Assistant Vice President
Elizabeth Belanger	(4)	Assistant Vice President
Margaret A. Cullem-Fiore	(5)	Assistant Vice President
Dennis P. Gallagher	(5)	Assistant Vice President
Shelley A. Mossman	(1)	Assistant Vice President
Christy Post-Rissin	(5)	Assistant Vice President
Brenda L. Smith	(5)	Assistant Vice President
Darin D. Smith	(1)	Assistant Vice President
Lisa Wachendorf	(1)	Assistant Vice President
Arthur D. Woods	(5)	Assistant Vice President
Carrie N. Powicki	(2)	Secretary
Karen R. Wright	(3)	Treasurer
Karen D. Heburn	(5)	Vice President
Wesley J. Hodgson	(2)	Vice President

(1) 4333 Edgewood Road N.E., Cedar Rapids, IA 52499-0001

(2) 4600 S Syracuse St, Suite 1100, Denver, CO 80237-2719

(3) 100 Light Street, Floor B1, Baltimore, MD 21202

(4) 440 Mamaroneck Avenue, Harrison, NY 10528

(5) 570 Carillon Parkway, St. Petersburg, FL 33716

(c) Compensation to Principal Underwriter:

Name of Principal Underwriter	Net Underwriting Discounts and Commissions(1)		Compensation on Redemption	Brokerage Commissions	Compensation
Transamerica Capital, Inc.	$	2,148,806	0	0	0

⁽¹⁾  Fiscal Year 2011

Item 30.    Location of Accounts and Records

The records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder, are maintained by Manager Regulatory Filing Unit, Western Reserve Life Assurance Co. of Ohio at 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499-0001.

Item 31.    Management Services.

All management Contracts are discussed in Part A or Part B.

Item 32.    Undertakings

(a) Registrant undertakes that it will file a post-effective amendment to this registration statement as frequently as necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as Premiums under the Contract may be accepted.

C-5

(b) Registrant undertakes that it will include either (i) a postcard or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information or (ii) a space in the Policy application that an applicant can check to request a Statement of Additional Information.

(c) Registrant 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 to Western Reserve Life Assurance Co. of Ohio at the address or phone number listed in the Prospectus.

(d) Western Reserve Life Assurance Co. of Ohio hereby represents that the fees and charges deducted under the contracts, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Western Reserve Life Assurance Co. of Ohio.

SECTION 403(B) REPRESENTATIONS

Western Reserve Life Assurance Co. of Ohio represents that it is relying on a no-action letter dated November 28, 1988, to the American Council of Life Insurance (Ref. No. IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment Company Act of 1940, in connection with redeemability restrictions on Section 403(b) Policies, and that paragraphs numbered (1) through (4) of that letter will be complied with.

TEXAS ORP REPRESENTATION

The Registrant intends to offer policies to participants in the Texas Option Retirement Program. In connection with that offering, the Registrant is relying on Rule 6c-7 under the Investment Company Act of 1940 and is complying with, or shall comply with, paragraphs (a) – (d) of that Rule.

C-6

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this Registration Statement to be signed on its behalf, in the City of Cedar Rapids and State of Iowa, on this 13 day of April, 2012.

SEPARATE ACCOUNT VA U WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO Depositor
	*
	Brenda K. Clancy President

As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

Signatures	Title	Date
* Darryl D. Button	Director and Executive Vice President	____________, 2012
* Charles T. Boswell	Director and Chief Executive Officer	____________, 2012
* Brenda K. Clancy	Director, Chairman of the Board and President	____________, 2012
* John R. Hunter	Director and Division Chief Operating Officer – Life & Protection	____________, 2012
* Arthur C. Schneider	Director, Senior Vice President, and Chief Tax Officer	____________, 2012
* Karen R. Wright	Treasurer and Vice President	____________, 2012
* Eric J. Martin	Corporate Controller and Senior Vice President	____________, 2012
/s/ Darin D. Smith *By Darin D. Smith	Assistant Vice President, and Assistant Secretary General Counsel	April 13, 2012

*By: Darin D. Smith—Attorney-in-Fact pursuant to Powers of Attorney filed previously and herewith.

Registration No. 333-108525

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

EXHIBITS

TO

FORM N-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

FOR

SEPARATE ACCOUNT VA U

EXHIBIT INDEX

Exhibit No.	Description of Exhibit	Page No.*
8(b)(5)	Amendment No. 8 to Participation Agreement (Fidelity VIP II)
8(e)(1)	Amendment to Participation Agreement (AllianceBernstein)
8(f)(3)	Amendment No. 3 to Participation Agreement (Franklin Templeton)
9(a)	Opinion and Consent of counsel
9(b)	Consent of counsel
10(a)	Consent of Independent Registered Public Accounting Firm

* Page numbers included only in manually executed original.

EX-8.B.5

EXHIBIT (8)(b)(5)

Amendment No. 8 to Participation Agreement (Fidelity VIP II and VIP V)

EIGHTH AMENDMENT TO PARTICIPATION AGREEMENT

Western Reserve Life Assurance Co. of Ohio, Variable Insurance Products Fund II, Variable Insurance Products Fund V and Fidelity Distributors Corporation hereby amend the Participation Agreement (“Agreement”) dated June 14, 1999, as amended, by doing the following:

1. A new Article XIII. is hereby added to the Agreement as follows:

Article XIII. Confidentiality

13.1. Confidentiality. For purposes of this Agreement, “Proprietary Information” shall be defined as any confidential or proprietary information of you or us (each a “Party” and collectively the “Parties”) or their respective affiliates provided to the other party during the term of this Agreement, including, but not limited to confidential customer lists, information relating to customer accounts, and other proprietary and confidential information related to a Party’s business or customers, or owned by a Party’s customers; provided, however, that nothing in this paragraph or otherwise shall be deemed to prohibit or restrict either Party or their affiliates in any way from soliciting any product or service directed at, without limitation, the general public, any segment thereof or any specific individual provided such solicitation is not based upon any such Proprietary Information. The term “Proprietary Information” shall not include (i) information lawfully in the possession of a Party or its affiliates prior to its receipt from the other Party and without obligation of confidentiality; (ii) information which, without any fault of the other Party, is or becomes available in the public domain; (iii) information subsequently disclosed on a non~confidential basis by a third party not known by the disclosing Party as having a confidential relationship with the Parties and which rightfully acquired such information; (iv) information that is independently developed by a Party; (v) information communicated with the express written consent of the other Party, or (vi) information legally requested or required to be disclosed pursuant to a competent judicial order or other legal, administrative or regulatory process.

Neither Party gains any ownership of the other Party’s Proprietary Information hereunder and each Party agrees that any Proprietary Information provided to it by the other Party shall at all times remain the sole property of the other Party.

Each Party acknowledges that the Proprietary Information of the other Party is valuable and must be kept confidential. Each party shall hold the Proprietary Information of the other Party confidential and shall limit access to such Proprietary Information to its employees and agents whose use of such Proprietary Information is necessary for the conduct of its business. Each Party shall take commercially reasonable steps to prevent unauthorized disclosure or use of the Proprietary Information of the other Party.

1

Each Party acknowledges that either Party delivering confidential customer information may be subject to certain laws and regulations regarding the privacy and protection of consumer information, and that any receipt or use of confidential customer information by either Party may also be subject to compliance with such state and federal laws and regulations, including, if applicable the laws and regulations of the Commonwealth of Massachusetts.

The provisions found in this Article XIII. on Confidential Information will survive any expiration or termination of the Agreement.

2. Schedule A of the Agreement is hereby deleted in its entirety and replaced with the Amended Schedule A attached hereto.

3. This Amendment may be signed in counterparts.

IN WITNESS WHEREOF, the parties have hereto affixed their respective authorized signatures, intending that this Amendment be effective the 1^st day of May, 2011.

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

By:	/s/ Arthur D. Woods
Name:	Arthur D. Woods
Title:	Vice President

VARIABLE INSURANCE PRODUCTS FUND II

By:	/s/ Bryan Merhrmann
Name:	Bryan Merhrmann
Title:	Deputy Treasurer

VARIABLE INSURANCE PRODUCTS FUND V

By:	/s/ Bryan Merhrmann
Name:	Bryan Merhrmann
Title:	Deputy Treasurer

FIDELITY DISTRIBUTORS CORPORATION

By:	/s/ Robert Bachman
Name:	Robert Bachman
Title:	Senior Vice President

2

Schedule A

Separate Accounts and Associated Contracts

Name of Separate Account and

Date Established by Board of Directors

WRL Series Life Account (est. July 16, 1985)

Product:

WRL Freedom Equity Protector^®

WRL Financial Freedom Builder^®

WRL Freedom Elite^®

WRL Freedom SP Plus

WRL Freedom Wealth Protector^SM

WRL Xcelerator^SM, Xcelerator Focus^SM and Xcelerator Exec^SM

WRL Freedom Elite Builder II^SM

WRL ForLife^SM

WRL Freedom Elite Advisor

WRL The Equity Protector

WRL Freedom Elite Builder^®

WRL Series Life Account G (est. January 20, 2002)

Product:

WRL Freedom Asset Advisor^SM

WRL Evolution

WRL Series Annuity Account (est. April 12, 1988)

Product:

WRL Freedom Attainer^®

WRL Freedom Bellwether ^®

WRL Freedom Conqueror^®

WRL Freedom^® Variable Annuity

WRL Freedom Wealth Creator^®

WRL Freedom Enhancer^®

WRL Freedom Premier^®

WRL Freedom Access^®

WRL Series Life Corporate Account (est. December 8, 1997)

Product:

Advantage IV

Separate Account VA U (est. August 4, 2003)

Product:

WRL Freedom Premier^® III Variable Annuity

Separate Account VA V (est. December 17, 2003)

Product:

Flexible Premium Variable Annuity – Under the marketing name “WRL Freedom^® Multiple”

Separate Account VA AA (est. May 30, 2007)

Product:

Flexible Premium Variable Annuity – M

Under the marketing name “WRL Freedom Advisor^SM”

3

EX-8.E.1

EXHIBIT (8)(e)(1)

AMENDMENT TO PARTICIPATION AGREEMENT (ALLIANCEBERNSTEIN)

AMENDMENT

TO

PARTICIPATION AGREEMENT

Amendment dated as of May 1, 2011 to the Participation Agreement (the “Agreement”), dated as of November 1, 2008, between WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO (“Insurer”)); TRANSAMERICA CAPITAL, INC. (“Contracts Distributor”); ALLIANCEBERNSTEIN L.P. (“Adviser”); and ALLIANCEBERNSTEIN INVESTMENTS, INC. (“Distributor”).

WHEREAS, the Insurer, Contracts Distributor, Adviser and Distributor have entered into a Participation Agreement dated as of November 1, 2008 (the “Agreement”) and

WHEREAS, the Insurer, Contracts Distributor, Adviser and Distributor desire to amend the Agreement as follows:

1. A new Section 20 is hereby added to the Agreement.

Section 20. Confidential Information

Each party to this Agreement acknowledges that in order to perform the duties called for in this Agreement, it may be necessary for a party (“owner”) to disclose to the other party(ies) certain “Confidential Information.” Confidential Information means non-public, proprietary information, data or know-how of an owner, including, but not limited to, personal information of an owner’s customers. No party will use another party’s Confidential Information except as required for the performance of this Agreement. Each party will use commercially reasonable efforts in a manner fully consistent with industry standards and applicable federal, state and international laws and regulations to hold in confidence a party’s Confidential Information. Notwithstanding the foregoing, Confidential Information does not include information which is: (i) already in the possession of the receiving party or its subsidiaries and not subject to a confidentiality obligation to the providing party; (ii) independently developed by the receiving party; (iii) publicly disclosed or in the public domain through no fault of the receiving party; (iv) rightfully received by the receiving party or its subsidiaries from a third party that is not under any obligation to keep such information confidential; (v) approved for release by written agreement with the owner; or (vi) disclosed pursuant to the requirements of law, regulation or court order.

Each party to this Agreement represents, warrants and agrees that it has adopted and implemented, and will continue to have in place and follow for the term of this Agreement and thereafter, appropriate policies and procedures designed to detect, prevent and mitigate the risk of identity theft and other breaches of privacy concerning Confidential Information. Each party agrees to take immediate and appropriate measures to respond to any breach of privacy concerning Confidential Information of the owner, and to notify the owner in writing regarding such breach in the most expedient time possible and without unreasonable delay; provided, however, that a party may postpone providing such notice as the party deems consistent with the legitimate needs of law enforcement. Each party further agrees to provide the owner with a copy of its plan, if any, to remediate any such breach and to pay for all costs associated with such remediation and with providing written notice of such breach to the applicable party.

Each party agrees to establish and maintain (i) administrative, technical and physical safeguards against the destruction, loss or alteration of Confidential Information, and (ii) appropriate security measures to protect Confidential Information, which measures are consistent with the laws and regulations of the Commonwealth of Massachusetts relating to personal information security and with all other applicable federal, state and international laws and regulations relating to personal information security.

The provisions found in this Section on Confidential Information will survive any expiration or termination of the Agreement.

2. A new Section 21 is hereby added to the Agreement as follows:

Section 21. Summary Prospectus

Should the Fund and the Insurer desire to distribute the prospectuses of the funds within the Fund pursuant to Rule 498 of the Securities Act of 1933 (“Rule 498), the roles and responsibilities for complying with Rule 498 and other applicable laws are set forth as follows.

21.1 For purposes of this Section 21, the terms Summary Prospectus and Statutory Prospectus shall have the same meaning as set forth in Rule 498.

21.2 The Fund and/or the Adviser/Distributor shall provide the Insurer with copies of the Summary Prospectuses in the same manner and at the same times as the Agreement requires that the Fund provide the Insurer with Statutory Prospectuses. If the Fund makes any changes to the Summary Prospectus by way of a filing pursuant to Rule 497 under the Securities Act of 1933, the Fund shall, instead of providing the Insurer with a revised Summary Prospectus, provide the Insurer with a supplement setting forth the changes in the Rule 497 filing.

21.3 The Fund and/or the Adviser/Distributor shall be responsible for compliance with Rule 498(e).

21.4 The Fund and Adviser/Distributor each represent and warrant that the Summary Prospectuses and the web site hosting of such Summary Prospectuses will comply with the requirements of Rule 498 applicable to the Fund and its series. The Fund further represents and warrants that it has appropriate policies and procedures in place to ensure that such web site continuously complies with Rule 498.

21.5 The Fund and Adviser/Distributor each agree that the URL indicated on each Summary Prospectus will lead contract owners directly to the web page used for hosting Summary Prospectuses and that such web page will host the current Fund and series’ documents required to be posted in compliance with Rule 498. The Fund shall immediately notify the Insurer’s senior counsel of any material interruptions in availability of this web page. Such Landing Page will contain only insurance product funds.

21.6 The Fund and Adviser/Distributor represent and warrant that they will be responsible for compliance with the provisions of Rule 498(f)(i) involving contract owner requests for additional Fund documents made directly to the Fund, Adviser/Distributor or one of their affiliates. The Fund and Adviser/Distributor further represent and warrant that any information obtained about contract owners pursuant to this provision will be used solely for the purposes of responding to requests for additional Fund documents.

21.7 The Insurer represents and warrants that it will respond to requests for additional fund documents made by contract owners directly to the Insurer or one of its affiliates.

21.8 The Insurer represents and warrants that any binding together of Summary Prospectuses and/or Statutory Prospectuses will be done in compliance with Rule 498.

21.9 If the Fund determines that it will end its use of the Summary Prospectus delivery option, the Fund and Adviser/Distributor will provide the Insurer with at least 60 days’ advance notice of its intent.

21.10 The parties agree that all other provisions of the Agreement, including the Indemnification provisions, will apply to the terms of this Section 21 as applicable.

21.11 The parties agree that the Insurer is not required to distribute Summary Prospectuses to its contract owners, but rather that the use of the Summary Prospectus will be at the discretion of the Insurer. The Insurer agrees that it will give Adviser/Distributor and the Fund sufficient notice of its intended use of the Summary Prospectuses or the Statutory Prospectuses.

3. Schedule A of the Agreement is hereby deleted in its entirety and replaced with the following:

AMENDED SCHEDULE A

SEPARATE ACCOUNTS, CONTRACTS AND PORTFOLIOS

Name of Separate Account and Date Established by the Board of Directors	SEC File Numbers of the Contracts Funded	Portfolios
Separate Account VA U August 4, 2003	33 Act File No. 333-108525 40 Act File No. 811-21427 WRL Freedom Premier® III Variable Annuity	•    AllianceBernstein Balanced Wealth Strategy Portfolio – Class B
Separate Account VA V December 17, 2003	33 Act File No. 333-112089 40 Act File No. 811-21491 Flexible Premium Variable Annuity – F, under the marketing name “WRL Freedom Multiple”	•    AllianceBernstein Balanced Wealth Strategy Portfolio – Class B
Separate Account VA AA May 30, 2007	33 Act File No. 333-145461 40 Act File No. 811-22113 Flexible Premium Variable Annuity – M, under the marketing name “WRL Freedom Advisor”	•    AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

Name of Separate Account and Date Established by the Board of Directors	SEC File Numbers of the Contracts Funded	Portfolios
WRL Series Life Account July 16, 1985	40 Act File No.811-4420 (For all Contracts) 33 Act File No. 333-157211 WRL Associate Freedom Elite Builder 33 Act File No. 333-135005 WRL ForLife 33 Act File No. 333-110315 WRL Freedom Elite Builder II 33 Act File No. 333-58322 WRL Freedom Elite Builder 33 Act File No. 333-107705 WRL Xcelerator 33 Act File No. 333-152446 WRL Xcelerator Focus and Exec 33 Act File No. 33-69138 WRL Freedom Wealth Protector 33 Act File No. 333-23359 WRL Financial Freedom Builder 33 Act File No. 33-31140 WRL Freedom Equity Protector 33 Act File No. 333-62397 WRL Freedom Elite	•    AllianceBernstein Balanced Wealth Strategy Portfolio – Class B
WRL Series Life Account G January 20, 2002	40 Act File No. 811-21929 (For all Contracts) 33 Act File No. 333-149386 WRL Asset Advisor 33 Act File No. 333-149387 WRL Evolution	•    AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

All other terms and provisions of the Agreement not amended herein shall remain in full force and effect.

Effective Date: May 1, 2011

(Signatures on following page)

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO		ALLIANCEBERNSTEIN L.P.
By:	/s/ Arthur D. Woods	By:	/s/ Emilie D. Wrapp
Name:	Arthur D. Woods	Name:	Emilie D. Wrapp
Title:	Vice President	Title:	Assistant Secretary
TRANSAMERICA CAPITAL, INC.		ALLIANCEBERNSTEIN INVESTMENTS, INC,
By:	/s/ Brenda L. Smith	By:	/s/ Daniel A. Notto
Name:	Brenda L. Smith	Name:	Daniel A. Notto
			Assistant Secretary

EX-8.F.3

EXHIBIT (8)(f)(3)

Amendment No. 3 to Participation Agreement (Franklin Templeton)

Amendment No. 3 to Participation Agreement

Franklin Templeton Variable Insurance Products Trust

Franklin/Templeton Distributors, Inc.

Western Reserve Life Assurance Co. of Ohio

Transamerica Capital, Inc.

Franklin Templeton Variable Insurance Products Trust (the “Trust”), Franklin/Templeton Distributors, Inc. (the “Underwriter,” and together with the Trust, “we” or “us”), Western Reserve Life Assurance Co. of Ohio (the “Company” or “you”), and Transamerica Capital, Inc., your distributor, on your behalf and on behalf of certain Accounts, have previously entered into a Participation Agreement dated November 10, 2008, and subsequently amended May 1, 2009 and October 1, 2010 (the “Agreement”). The parties now desire to amend the Agreement by this amendment (the “Amendment”). Unless otherwise indicated, the terms defined in the Agreement shall have the same meaning in this Amendment.

A M E N D M E N T

For good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree to amend the Agreement as follows:

1. A new Section 11 “Confidential Information” is hereby added to the Agreement as set forth in Attachment A to this Amendment;

2. All other terms and provisions of the Agreement not amended herein shall remain in full force and effect.

IN WITNESS WHEREOF, each of the parties has caused its duly authorized officers to execute this Amendment as of October 31, 2011.

The Trust: Only on behalf of each Portfolio listed on Schedule C of the Agreement.	FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
	By:	/s/ Karen L. Skidmore
	Name:	Karen L. Skidmore
	Title:	Vice President

1

The Underwriter:	FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
	By:	/s/ Thomas M. Regner
	Name:	Thomas M. Regner
	Title:	Executive Vice President
The Company:	WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
	By:	/s/ Arthur D. Woods
	Name:	Arthur D. Woods
	Title:	Vice President
The Distributor:	TRANSAMERICA CAPITAL, INC.
	By:	/s/ Brenda L. Smith
	Name:	Brenda L. Smith
	Title:	Assistant Vice President

2

Attachment A

11. Confidential Information

Each party to this Agreement acknowledges that in order to perform the duties called for in this Agreement, it may be necessary for a party (“owner”) to disclose to the other party(ies) certain “Confidential Information.” Confidential Information means non-public, proprietary information, data or know-how of an owner, including, but not limited to, personal information of an owner’s customers. No party will use another party’s Confidential Information except as required for the performance of this Agreement. Each party will use commercially reasonable efforts in a manner fully consistent with industry standards and applicable federal and state laws and regulations to hold in confidence a party’s Confidential Information. Notwithstanding the foregoing, Confidential Information does not include information which is: (i) already in the possession of the receiving party or its subsidiaries and not subject to a confidentiality obligation to the providing party; (ii) independently developed by the receiving party; (iii) publicly disclosed or in the public domain through no fault of the receiving party; (iv) rightfully received by the receiving party or its subsidiaries from a third party that is not under any obligation to keep such information confidential; (v) approved for release by written agreement with the owner; or (vi) disclosed pursuant to the requirements of law, regulation or court order.

Each party to this Agreement represents, warrants and agrees that it has adopted and implemented, and will continue to have in place and follow for the term of this Agreement and thereafter, appropriate policies and procedures designed to detect, prevent and mitigate the risk of breaches of privacy concerning Confidential Information. Each party agrees to take immediate and appropriate measures to respond to any breach of privacy concerning Confidential Information of the owner.

Each party agrees to establish and maintain (i) administrative, technical and physical safeguards against the destruction, loss or alteration of Confidential Information, and (ii) appropriate security measures to protect Confidential Information, which measures are consistent with laws and regulations relating to personal information security and with all other applicable federal, state laws and regulations relating to personal information security.

The provisions found in this Section on Confidential Information will survive any expiration or termination of the Agreement.

3

EX-9.A

EXHIBIT (9)(a)

OPINION AND CONSENT OF COUNSEL

[Western Reserve Life Assurance Co of Ohio]

April 12, 2012

Western Reserve Life Assurance Co. of Ohio

4333 Edgewood Road N.E.

Cedar Rapids, Iowa 52499-0001

Dear Sir/Madam:

With reference to the Registration Statement on Form N-4 by Western Reserve Life Assurance Co. of Ohio and Separate Account VA U with the Securities and Exchange Commission covering individual variable annuity contracts, I have consulted with outside counsel and examined such documents and such law as I considered necessary and appropriate, and on the basis of such examination, and consultation, it is my opinion that:

1. Western Reserve Life Assurance Co. of Ohio is duly organized and validly existing under the laws of the State of Ohio and has been duly authorized to issue individual variable annuity contracts by the Department of Insurance of the State of Ohio.

2. Separate Account VA U is a duly authorized and existing separate account established pursuant to the provisions of Section 3907.15 of the Ohio Revised Code.

3. The Individual Variable Annuity Contracts have been duly authorized by Western Reserve Life Assurance Co. of Ohio and, when sold in jurisdictions authorizing such sales, in accordance with and when issued as contemplated by said Form N-4 Registration Statement, will constitute validly issued and binding obligations of Western Reserve Life Assurance Co. of Ohio in accordance with their terms.

I hereby consent to the filing of this opinion as an exhibit to said N-4 Registration Statement.

Very truly yours,

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

/s/ Darin D. Smith

Darin D. Smith

Division General Counsel

EX-9.B

Exhibit 9(b)

Consent of Counsel

[Sutherland Asbill & Brennan Letterhead]

April 12, 2012

Board of Directors

Western Reserve Life Assurance Co. of Ohio

Separate Account VA U

4333 Edgewood Road, NE

Cedar Rapids, IA. 52499-0001

RE: Separate Account VA U

WRL Freedom Premier III

File No. 333-108525/811-21427

Gentlemen:

We hereby consent to the use of our name under the caption “Legal Matters” in the Statement of Additional Information contained in Post-Effective Amendment No. 21 to the Registration Statement to Form N-4 (File No. 333-108525) of the Separate Account VA U filed by Western Reserve Life Assurance Co. of Ohio with the Securities and Exchange Commission. In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933.

Very truly yours,
Sutherland Asbill & Brennan LLP
By:	/s/Frederick R. Bellamy
	Frederick R. Bellamy, Esq.

EX-10.A

Exhibit 10(a)

Consent of Independent Registered Public Accounting Firm

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the caption “Independent Registered Public Accounting Firm” in the Statement of Additional Information, and to the use of our reports: (1) dated April 3, 2012, with respect to the statutory-basis financial statements and schedules of Western Reserve Life Assurance Co. of Ohio, and (2) dated April 13, 2012, with respect to the financial statements of the subaccounts of Separate Account VA U, included in Post-Effective Amendment No. 21 to the Registration Statement (Form N-4 No. 333-108525) under the Securities Act of 1933 and related Prospectus of WRL Freedom Premier III Variable Annuity.

/s/ Ernst & Young LLP

Des Moines, Iowa

April 13, 2012