485BPOS 1 wrlfep.htm wrlfep.htm
 
 
 

As filed with the Securities and Exchange Commission on April 23, 2012
Registration No. 33-31140/811-4420

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM N-6
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT NO.                          (  )
POST-EFFECTIVE AMENDMENT NO.    32                     (X)
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940
Amendment No.                   118                    (X)
(Check appropriate box or boxes)

WRL SERIES LIFE ACCOUNT
(Exact Name of Registrant)

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
(Name of Depositor)
570 Carillon Parkway
St. Petersburg, FL  33716
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code:
(727) 299-1800
 
 
Arthur D. Woods, Esq.
Vice President and Senior Counsel
Western Reserve Life Assurance Co. of Ohio
570 Carillon Parkway
St. Petersburg, FL  33716
(Name and Address of Agent for Service)

Copy to:

Mary Jane Wilson-Bilik, Esq.
Sutherland Asbill & Brennan LLP
1275 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2415
 
 
It is proposed that this filing will become effective (check appropriate box):

     immediately upon filing pursuant to paragraph (b)
 X on   May 1, 2 012    , pursuant to paragraph (b)
      60 days after filing pursuant to paragraph (a)(1)
      on     (date)     , pursuant to paragraph (a)(1)

If appropriate, check the following box:

     This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

 
 
 

PART A

INFORMATION REQUIRED IN A PROSPECTUS

 
 
 
P R O S P E C T U S
May 1, 201 2                                                                                                                                            

WRL FREEDOM EQUITY PROTECTORâ
issued through
WRL Series Life Account
by
Western Reserve Life Assurance Co. of Ohio
Administrative Office:
570 Carillon Parkway
St. Petersburg, Florida 33716

Please direct transactions, claim forms, payments and other correspondence and notices as follows:
 
Transaction Type
Direct or Send to
Telephonic Transaction
1-727- 299-1800 or 1-800-851-9777 (toll free)
Facsimile Transaction
1-727-299-1648 (subaccount transfers only)
1-727-299-1620 (all other facsimile transactions)
Electronic Transaction
www.westernreserve.com
 
 
 
 
All payments made by check, and all claims, correspondence and notices
Mailing Address:  4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499

AN INDIVIDUAL FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY

This prospectus describes the WRL Freedom Equity Protector , â   a flexible premium variable life insurance policy (the “Policy”). You can allocate your Policy’s cash value to the fixed account (which credits a specified guaranteed interest rate) and/or to the WRL Series Life Account, which invests through its subaccounts in portfolios of the Transamerica Series Trust – Initial Class (“Series Trust”),  the Fidelity Variable Insurance Products Funds – Service Class 2 (the “Fidelity VIP Funds”), the ProFunds, the Access One Trust ("Access Trust"), the AllianceBernstein Variable Products Series Fund, Inc. (“AllianceBernstein”), and the Franklin Templeton Variable Insurance Product Trust (“Franklin Templeton”), (collectively, the “funds”).  Please refer to the next page of this prospectus for the list of portfolios available to you under this Policy. Note: If your Policy was issued in the State of New Jersey, then you may not allocate your Policy’s cash value to the fixed account. We do not currently offer this Policy for sale to new purchasers.

Investing in the Policy involves investment risk and fluctuating interest rates.

If you already own a life insurance policy, it may not be to your advantage to buy additional insurance or to replace your policy with the Policy described in the prospectus. Additionally, it may not be to your advantage to borrow money to purchase this Policy or to take withdrawals from another policy you own to make premium payments under this Policy.

Prospectuses for the portfolios of the funds must accompany the prospectus.  Certain portfolios may not be available in all states. Please read these documents before investing and save them for future reference.

An investment in the Policy is not a bank deposit. The Policy is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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.

 
 
 
Portfolios Available Under Your Policy


 
Transamerica Series Trust:
Transamerica Series Trust (Cont.):
ProFunds (Cont.)
Ø   Transamerica Aegon Active Asset Allocation – Conservative VP
Ø   Transamerica Janus Balanced VP
Ø   ProFund VP Japan
Ø   Transamerica Aegon Active Asset Allocation – Moderate Growth VP
Ø   Transamerica Jennison Growth VP
 
Ø   ProFund VP Mid-Cap
Ø   Transamerica Aegon Active Asset Allocation – Moderate VP
Ø   Transamerica MFS International Equity VP
Ø   ProFund VP Money Market
Ø   Transamerica Aegon High Yield Bond VP
Ø   Transamerica Morgan Stanley Capital Growth VP
Ø   ProFund VP NASDAQ-100
Ø   Transamerica Aegon Money Market VP
Ø   Transamerica Morgan Stanley Mid-Cap Growth VP
Ø   ProFund VP Oil & Gas
Ø   Transamerica Aegon U.S. Government Securities VP
Ø   Transamerica Multi-Managed Balanced VP
Ø   ProFund VP Pharmaceuticals
Ø   Transamerica AllianceBernstein Dynamic Allocation VP
Ø   Transamerica Multi Managed Large Cap Core VP
Ø   ProFund VP Precious Metals
Ø   Transamerica Asset Allocation – Conservative VP
Ø   Transamerica PIMCO Total Return VP
Ø   ProFund VP Short Emerging Markets
Ø   Transamerica Asset Allocation – Growth VP
Ø   Transamerica Systematic Small/Mid Cap Value VP
Ø   ProFund VP Short International
Ø   Transamerica Asset Allocation – Moderate Growth VP
Ø   Transamerica T. Rowe Price Small Cap VP
Ø   ProFund VP Short NASDAQ-100
Ø   Transamerica Asset Allocation – Moderate VP
Ø   Transamerica Third Avenue Value VP
Ø   ProFund VP Short Small-Cap
Ø   Transamerica BlackRock Global Allocation VP
Ø   Transamerica WMC Diversified Growth VP
Ø   ProFund VP Small-Cap
Ø   Transamerica BlackRock Large Cap Value VP
 
Ø   ProFund VP Small- Cap Value
Ø   Transamerica BlackRock Tactical Allocation VP
 
Fidelity Funds:*
Ø   ProFund VP Telecommunications
Ø   Transamerica Clarion Global Real Estate VP
 
Ø   Fidelity VIP Index 500 Portfolio
Ø   ProFund VP UltraNASDAQ-100
Ø   Transamerica Efficient Markets VP
 
Ø   ProFund VP UltraSmall-Cap
 
Ø   Transamerica Hanlon Balanced VP
 
ProFunds:
Ø   ProFund VP U.S. Government Plus
 
Ø   Transamerica Hanlon Growth and Income VP
Ø   ProFund VP Asia 30
Ø   ProFund VP Utilities
 
Ø   Transamerica Hanlon Growth VP
 
Ø   ProFund VP Basic Materials
 
Access Trust:
Ø   Transamerica Hanlon Income VP
 
Ø   ProFund VP Bull
 
Ø   Access VP High Yield Fund
Ø   Transamerica Index 50 VP
Ø   ProFund VP Consumer Services
 
Ø   Transamerica Index 75 VP
Ø   ProFund VP Emerging Markets
AllianceBernstein Variable Products Series Fund, Inc.:
Ø   Transamerica International Moderate Growth VP
Ø   ProFund VP Europe 30
Ø   AllianceBernstein Balanced Wealth Strategy Portfolio
Ø   Transamerica JPMorgan Core Bond VP
Ø   ProFund VP Falling U.S. Dollar
 
Ø   Transamerica JPMorgan Enhanced Index VP
Ø   ProFund VP Financials
Franklin Templeton Variable Products Trust:
Ø   Transamerica JPMorgan Tactical Allocation VP
Ø   ProFund VP International
Ø   Franklin Templeton VIP Founding Funds Allocation Fund
 
 
*Effective May 1, 2003, the Fidelity VIP Contrafund ® Portfolio, Fidelity VIP Equity-Income Portfolio and the Fidelity VIP Growth Opportunities Portfolio were no longer available for sale to new investors.  Prospectuses for those portfolios were mailed under separate cover to policyowners currently invested in the portfolios.
 

.

 
 
 

 
Table of Contents                                   WRL Freedom Equity Protector®  

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ii
 
 
 





ii
 
 
 

Policy Benefits/Risks Summary                                                                                                WRL Freedom Equity Protector® 

This summary describes the WRL Freedom Equity Protector ’s ® (the “Policy”) important benefits and risks.  More detailed information about the Policy appears later in this prospectus and in the Statement of Additional Information (“SAI”).  For your convenience, we have provided a Glossary at the end of this prospectus that defines certain words and phrases used in this prospectus.
 
Policy Benefits
 
The Policy in General
 
·  
The WRL Freedom Equity Protector® is an individual flexible premium variable life insurance policy, which gives you the potential for long-term life insurance coverage with the opportunity for tax-deferred accumulation of cash value.
 
·  
The Policy is designed to be long-term in nature in order to provide significant life insurance benefits for you.  You should only purchase the Policy if you have the financial ability to keep it in force for a substantial period of time.  You should consider this Policy in conjunction with other insurance that you own.
 
·  
There may be adverse consequences should you decide to surrender your Policy early, such as payment of a surrender charge during the first 15 Policy years and for 15 years from the date of any increase in the specified amount of life insurance coverage that you select.
 
·  
You can invest your net premium in, and transfer your cash value to, subaccounts.   Y our cash value will fluctuate with the daily performance of the portfolios in which the subaccounts invest.
 
·  
You may place your money in the fixed account where it earns an interest rate declared in advance for a specific period (at least 4% annual interest) or in any of the subaccounts of the WRL Series Life Account which are described in this prospectus.  The fixed account is not available to you if your Policy was issued in the State of New Jersey.
 
·  
The Policy’s cash value will increase or decrease depending on the investment performance of the subaccounts, the premiums you pay, the fees and charges that we deduct, the interest we credit to the fixed account, and the effects of any Policy transactions (such as transfers, loans and cash withdrawals).  Because returns are not guaranteed, the Policy is not suitable as a short-term investment or savings vehicle.
 
·  
Your Policy offers supplemental riders, and depending on which riders are selected, certain charges may be deducted from the Policy’s cash value as part of the monthly deductions.
 
·  
Your Policy has a no lapse period guarantee which means that as long as requirements are met, your Policy will remain in force and no grace period will begin until the no lapse date shown on your Policy schedule page, or as explained in the section entitled “Extension of No Lapse Guarantee Period” in this prospectus.  This is true even if your net surrender value is too low to pay the monthly deductions as long as, on any Monthiversary, you have paid  premiums (minus any cash withdrawals, minus any outstanding loan amount, minus any accrued loan interest, and minus any decrease charge) that equal or exceed the sum of the minimum monthly guarantee premiums in effect for each month from the Policy date up to and including the current month.  The no lapse period guarantee is discussed in more detail in the section of this prospectus entitled “Policy Lapse and Reinstatement.”
 
·  
You may increase the specified amount once a year on any Monthiversary after one Policy year if the insured is age 75 or younger, and you may decrease the specified amount after your Policy has been in force for three years but you may not increase and decrease the specified amount in the same Policy year.  The amount of your decrease may be limited.  For further details and a description of any charges that you may incur, please see “Death Benefits –Increasing/Decreasing the Specified Amount.”
 
Flexibility
 
The Policy is designed to be flexible to meet your specific circumstances and life insurance needs.  Within certain limits, you can:

            ·
Choose the timing, amount and frequency of premium payments.
            ·
Change the Death Benefit Option.
·
Increase or decrease the amount of life insurance coverage.
·
Change the beneficiary.
·
Transfer cash value among investment options available under the Policy.
·
Take a loan against the Policy.
·
Take cash withdrawals or surrender the Policy.


 
 
 



Death Benefit
 
If the insured dies while the Policy is in force, we will pay a death benefit to the named beneficiary(ies) subject to applicable laws and in accordance with the terms of the Policy. The amount of the death benefit generally depends on the specified amount of insurance that you select, the death benefit option that you choose, your Policy’s cash value, and any additional life insurance provided by riders that you purchase. The death benefit proceeds are reduced by any outstanding loan amount, including accrued loan interest, and any charges that are due and unpaid if the insured dies during the grace period.

You may choose one of two Death Benefit Options:
 
                          ·
Option A is the greatest of:
 
>
The specified amount ;   or
 
>
The minimum death benefit under the guideline premium test ; or
 
>
The amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.
   
                         ·
Option B is the greatest of:
 
>
The specified amount plus the Policy's cash value on the date of the insured's death   or
 
>
The minimum death benefit under the guideline premium test ; or
 
>
The amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

Cash Value
 
Cash value is the sum of your investments in the subaccounts plus the fixed account on any business day.  It is not guaranteed – it depends on the performance of the investment options that you have chosen, the timing and amount of premium payments you have made, Policy charges deducted, and how much you have withdrawn from the Policy.

You can access your cash value in several ways:
 
·  
Withdrawals – You can withdraw part of your Policy’s net surrender value once each year after the first Policy year if your Policy qualifies under certain guidelines. Withdrawals are described in more detail in the section of this prospectus entitled “Surrenders and Cash Withdrawals – Cash Withdrawals.”
 
·  
Loans – After the first Policy year, you can take out a loan from the Policy using your Policy’s net surrender value as security as long as you qualify.  Loans and loan interest rates are described in the section of this prospectus entitled “Loans.”
 
·  
Surrender – You can surrender or cash in your Policy for its net surrender value while the insured is alive.  Surrenders are described in more detail in the section of this prospectus entitled “Surrenders and Cash Withdrawals – Surrenders.” You may pay a substantial surrender charge.
 
Investment Options
 
You can choose to allocate your net premiums and cash value among the subaccounts, each of which invests in a corresponding portfolio of the various underlying funds.  Your Policy also offers a fixed account option, which provides a guaranteed minimum rate of interest.  You can accumulate cash value in the fixed account and the subaccounts without paying any current income tax.

You can transfer your cash value among the fixed account and the subaccounts during the life of your Policy. We may limit the number of transfers out of the fixed account and, in some cases, may limit your transfer activity to deter disruptive trading and market timing.  We may charge a $10 transfer processing fee for each transfer after the first 12 transfers in a Policy year.  For more details, please refer to the section entitled "Transfers" in this prospectus.

 
 
 



Tax Information
 
We intend the Policy to qualify as a life insurance contract under the Internal Revenue Code so that the death benefit generally should not be taxable income to the beneficiary.  If your policy is not a Modified Endowment Contract (“MEC”) you will generally not be taxed on the gain in the Policy unless you take a cash withdrawal in excess of your basis in the Policy or a loan that is not repaid prior to surrender of your Policy.  If your policy is a MEC, cash withdrawals, loans, assignments, and pledges are treated first as taxable income to you to the extent of gain then in the policy and then a s non-taxable recovery of basis.  In addition, such gains may be subject to a 10% penalty tax if received before age 59 ½.  Please refer to the section of this prospectus entitled “Federal Income Tax Considerations” for more details.

 
Risks of Your Policy
 
Long-term Financial Planning
 
The Policy is designed to help meet long-term financial objectives by paying a death benefit to family members and/or other named beneficiaries. It is not suitable as a short-term savings vehicle.  It may not be the right kind of policy if you plan to withdraw money or surrender your Policy for short-term needs. The withdrawals may be assessed a charge. Taking a withdrawal may also incur charges. You may pay a substantial charge if you surrender your Policy.  See the section of this prospectus entitled “ Fee Tables ” and your Policy for charges assessed when withdrawing from or surrendering your Policy.

Please discuss your insurance needs and financial objectives with your registered representative.

Risk of an Increase in Current Fees and Expenses
 
Certain fees and expenses are currently assessed at less than their guaranteed maximum levels.  In the future, these charges may be increased up to the guaranteed (maximum) levels.  If fees and expenses are increased, you may need to increase the amount and/or frequency of premiums to keep your Policy in force.

Investment Risks
 
If you invest your Policy’s cash value in one or more subaccounts, then you will be subject to the risk that investment performance of the subaccounts will be unfavorable and that the cash value in your Policy will decrease.  Also, we deduct Policy fees and charges from your cash value, which can significantly reduce your cash value.  During times of poor investment performance, this deduction will have an even greater impact on your cash value.  You could lose everything you invest and your Policy could lapse without value, unless you pay additional premiums.  If you allocate premiums to the fixed account, then we credit your fixed account value with a declared rate of interest.  You assume the risk that the interest rate on the fixed account may decrease, although it will never be lower than a guaranteed minimum annual effective rate of 4%.

Risks of Managing General Account Assets
 
G eneral account assets of WRL are used to support the payment of the death benefit under the Policies.  To the extent that Western Reserve is required to pay you amounts in addition to your Policy’s cash value under the death benefit, such amounts will come from general account assets.  You should be aware that the general account assets are exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk, and are also subject to the claims of the Company’s general creditors.  The Company’s financial statements contained in the Statement of Additional Information include a further discussion of risks inherent with the general account investments.
 
Premium Payments
 
Federal tax laws limit the premium payments you can make in relation to your Policy’s Death Benefit.  We may refuse all or part of a premium payment that you make, or remove all of part of a premium from your Policy and return it to you with earnings under certain circumstances to maintain qualification of the Policy as a life insurance contract for federal income tax purposes.  Please refer to the section in this prospectus entitled “Premiums” for more details.
 

 
 
 
 
Lapse
 
You Policy will stay i n f orce as long as you have sufficient surrender value to cover your monthly deductions and Policy charges, or as long as the no lapse guarantee is in effect.  Insufficient premium payments, poor investment performance, withdrawals, and unpaid loans or loan interest may cause your Policy to lapse – which means you will no longer have insurance coverage.  A Policy lapse may have adverse tax consequences.  There are costs associated with reinstating a lapsed Policy.  For a detailed discussion of your Policy’s Lapse and Reinstatement p rovisions , please refer to the section in this prospectus entitled “Policy Lapse and Reinstatement.”
 
Withdrawals and Loans
 
Making a withdrawal or taking a loan may:

·
Reduce your Policy’s specified amount.
·
Reduce your Policy’s death benefit.
·
Reduce the death benefit proceeds paid to your beneficiary.
·
Make your Policy more susceptible to lapsing.
·
Trigger federal income taxes and possibly a penalty tax.

Cash withdrawals will reduce your cash value.  Withdrawals, especially those taken during periods of poor investment performance, could considerably reduce or eliminate some benefits or guarantees under the Policy.  Federal income taxes and a penalty tax may apply to loans and cash withdrawals.  Please see the section of this prospectus entitled “Federal Income Tax Considerations.”

Be sure to plan carefully before using these Policy benefits.  For a detailed description of withdrawals and loans, and any associated risks, please refer to the sections of this prospectus entitled “Surrenders and Cash Withdrawals – Cash Withdrawals” and/or “Loans.”

Surrenders

If you surrender your Policy during the first 15 Policy years (or during the 15 year period following an increase in specified amount) you will pay a surrender charge. The surrender charge may be significant. Federal income tax and/or a penalty may apply.  Please see the section of this prospectus entitled “Federal Income Tax Considerations.”

Tax Consequences of Withdrawals, Surrenders and Loans
 
You may be subject to income tax if you take any withdrawals or surrender the Policy, or if your Policy lapses and you have not paid any outstanding policy indebtedness.

 
If your Policy is a MEC, cash withdrawals, surrenders, assignments, pledges, and loans that you receive or make during the life of the Policy may be taxable and subject to a federal tax penalty equal to 10% of the taxable amount if taken prior to age 59½.  Other tax issues to consider when you own a life insurance policy are described in more detail in the section of this prospectus entitled “Federal Income Tax Considerations.”

   Note:  You should consult with your own qualified tax advisor to apply the law to your particular circumstances.

Portfolio Risks
 
A comprehensive discussion of the risks of each portfolio may be found in each portfolio’s prospectus.  Please refer to the prospectuses for the portfolios for more information.

There is no assurance that any portfolio will meet its investment objective.

 
 
 



FEE TABLES                                                                                                                                          

The following tables describe the fees and expenses that you will pay when buying, owning and surrendering your Policy.  If the amount of a charge depends on the personal characteristics of the insured or the owner, then the fee table lists the minimum and maximum charges we assess under the Policy, and the fees and charges of a representative insured with the characteristics set forth below.  These charges may not be representative of the charges you will pay.

The first table describes the fees and expenses that you will pay when buying or owning the Policy, paying premiums, making cash withdrawals from the Policy, surrendering the Policy, or transferring Policy cash value among the subaccounts and the fixed account.

Transaction Fees
Charge
When Charge is Deducted
Amount Deducted
Guaranteed Charge
Current Charge1
Premium Charges
Upon payment of each premium
    
Premium Expense Charge
  
First 10 Policy years = 6.0% of each
premium payment; and 2.5% of premiums in Policy years 11+
First 10 Policy years = 6.0% of each premium payment; and 2.5% of premiums in Policy years 11+
Premium Collection Charge
  
$2.00 per premium payment
$2.00 per premium payment
Cash Withdrawal Charge2
Upon withdrawal
2.0% of the amount withdrawn, not to
exceed $25
2.0% of the amount withdrawn, not to exceed $25





1The Company reserves the right at any time to change the current charge but never to a level that exceeds the guaranteed charge.
2When we incur the expense of expedited delivery of your partial withdrawal or complete surrender payment, we currently assess the following additional charges:  $2 5 for overnight delivery ($3 5 for Saturday delivery); and $5 0 for wire service.  You can obtain further information about these charges by contacting our administrative office.


 
 
 


Transaction Fees
   
Amount Deducted
Charge
When Charge is Deducted
Guaranteed Charge
Current Charge1
Surrender Charge3
 
 
Upon full surrender of the Policy
during the first 15 Policy years and
first 15 years after any increase
    
1.  Deferred Issue Charge Component:
  
$5.00 per $1,000 of initial specified amount
$5.00 per $1,000 of initial specified amount
2.  Deferred Sales Charge Component:
  
A percentage of total premiums paid
A percentage of total premiums paid
Maximum Charge
  
26.5% up to the guideline premium plus
4.2% of premium paid in excess of the guideline premium4, 5
26.5% up to the guideline premium plus
4.2% of premium paid in excess of the guideline premium4, 5
Minimum Charge
  
26.5% up to the guideline premium plus
2.0% of premium paid in excess of the guideline premium5, 6
26.5% up to the guideline premium plus
2.0% of premium paid in excess of the guideline premium5, 6
Charge during first 10 Policy years for a male, issue age 3 4 , in ultimate select non-tobacco use class 7
 
26.5% up to the guideline premium plus
4.2% of premium paid in excess of the guideline premium5
26.5% up to the guideline premium plus
4.2% of premium paid in excess of the guideline premium5
Transfer Charge 8
Upon transfer
$10 for each transfer in excess of 12 per
Policy year
$10 for each transfer in excess of 12 per
Policy year
Terminal Illness Accelerated Death Benefit Rider 9
When rider is exercised
Discount Factor
Discount Factor
 

3The surrender charge is equal to the sum of the Deferred Issue Charge and the Deferred Sales Charge multiplied by the Surrender Charge Percentage. The Deferred Issue Charge component of the surrender charge is assessed on the initial specified amount stated in your Policy and any later increase in specified amount in effect at the time of surrender.  The Deferred Sales Charge component of the surrender charge is based upon the issue age and gender of each individual insured, and the total premiums paid up to and in excess of the guideline premium shown in your Policy.  The Surrender Charge Percentage varies with the insured’s issue age, gender, and number of years the Policy has been in force. The Surrender Charge Percentage on a Policy where a male insured’s issue age is less than 66 (and a female insured’s issue age is under 71), is 100% for the first 10 Policy years then decreases at the rate of 20% each Policy year until it reaches zero at the end of the 15th Policy year. For a Policy where a male insured’s issue age is greater than 65 (and a female insured’s issue age is greater than 70), the Surrender Charge Percentage is 100% for the first several Policy years (3 to 9 depending on issue age and gender) and then declines to zero at the end of the 15th Policy year.  The surrender charges shown in the table may not be typical of the charges you will pay.  You can obtain more detailed information about the surrender charges that apply to you by contacting your registered representative and requesting a personalized illustration.
4This maximum charge is based on an insured with the following characteristics: male, age 55 at issue.  This maximum charge may also apply to insureds with other characteristics.
5The guideline premium is a designated premium that varies by issue age, gender, underwriting class, death benefit option, and specified amount.   It is shown on your Policy schedule page.
6This minimum charge is based on an insured with the following characteristics: male, age 75 at issue.  This minimum charge may also apply to insureds with other characteristics
7 Because we no longer offer this version of WRL Freedom Equity Protector, the information regarding the “representative insured” has not been updated since sales terminated in 2003.
8 The first 12 transfers per Policy year are free.
9  We do not assess an administrative charge for this rider, however, if the rider is exercised, we do reduce the single sum benefit by a discount factor to compensate us for   income lost due to early payment of the death benefit. The discount factor is equal to the Applicable Federal Interest Rate ( 2.89 % for 201 2 ) or the Policy loan interest rate expressed in arrears, whichever is greater, (“discount factor”). For a complete description of the Terminal Illness Accelerated Death Benefit Rider, please refer to the section entitled “Terminal Illness Accelerated Death Benefit Rider” in this prospectus.

 
 
 



The table below describes the fees and expenses that you will pay periodically during the time that you own the Policy, not including portfolio fees and expenses.

Periodic Charges Other Than Portfolio Operating Expenses
Charge
When Charge is Deducted
Amount Deducted
Guaranteed Charge
Current Charge1
Monthly Policy Charge
Monthly, on the Policy date and on
each Monthiversary
$5.00 per month
$5.00 per month
Cost of Insurance 10
(without Extra Ratings)1 1
Monthly, on the Policy date and on
each Monthiversary until the insured
reaches age 95
    
Maximum Charge 12
 
$24.85 per $1,000 of net amount at risk per month1 3
$21.12 per $1,000 of net amount at risk per month1 3
Minimum Charge 14
 
$0.06 per $1,000 of net amount at risk per
month1 3
$0.0 5 per $1,000 of net amount at risk per month1 3
Charge for a male insured, issue age 3 4 , in the ultimate select non-tobacco use class, in Policy year 5 7
 
$0. 17 per $1,000 of net amount at risk per month1 3
$0. 14 per $1,000 of net amount at risk per month1 3
Mortality and Expense Risk Charge
Daily
Annual rate of 0.90% of average daily net assets of each subaccount in which
you are invested
Annual rate of 0.90% of average daily net assets of each subaccount in which
you are invested
Loan Interest Spread 16
On Policy Anniversary1 5
1.49% (effective annual rate,
after rounding)
0.74% (effective annual rate,
after rounding)

 
10  Cost of insurance charges are based on a number of factors, including, but not limited to: the insured’s issue age, gender, underwriting class, specified amount, Policy year, and the net amount at risk.  Cost of insurance rates generally will increase each year with the age of the insured.  The cost of insurance rates shown in the table may not be representative of the charges you will pay.  Your Policy’s schedule page will indicate the guaranteed cost of insurance charges applicable to your Policy.  You can obtain more detailed information concerning your cost of insurance charges by contacting your registered representative.
11 We may place insureds in substandard underwriting classes with extra ratings that reflect higher mortality risks and that result in higher cost of insurance rates.  If the insured possesses additional mortality risks, we may add a surcharge to the cost of insurance rates  up to a total charge of $83.33 monthly per $1,000 of net amount at risk.
12  This maximum charge is based on an insured with the following characteristics: male, age 75 at issue, standard tobacco underwriting class and in the 20th Policy year.  This maximum charge may also apply to insureds with other characteristics.
13 The net amount at risk equals the death benefit on a Monthiversary minus the cash value on such Monthiversary.
14 This minimum charge is based on an insured with the following characteristics: female, age 10 at issue and in the first Policy year.  This minimum charge may also apply to insureds with other characteristics.
15 While a Policy loan is outstanding, loan interest is payable in advance on each Policy anniversary.  If before the next Policy anniversary, there is a loan repayment, Policy lapse or surrender, Policy termination, or the insured’s death, we will refund the amount of any loan interest we charged in advance for the period between the date of any such occurrence above and the next Policy anniversary.
16  The Loan Interest Spread is the difference between the amount of interest we charge you for a loan and the amount of interest we credit to your loan reserve account. We charge you an annual interest rate on a Policy loan of 5.2% in advance (5.49% effective annual interest rate) on each Policy anniversary.  We will also currently credit the amount in the loan reserve account with an effective annual interest rate of 4.75% (4.0% minimum guaranteed).

 
 
 

 
 
 


Periodic Charges Other Than Portfolio Operating Expenses
Charge
When Charge is Deducted
Amount Deducted
Guaranteed Charge
Current Charge1
Optional Rider Charges: 1 7
Accidental Death Benefit Rider
Monthly, on the Policy date and on each
Monthiversary until the insured
reaches age 70
    
Maximum Charge1 8
 
$0.18 per $1,000 of rider face amount
per month
$0.18 per $1,000 of rider face amount per month
 Minimum Charge1 9
 
$0.10 per $1,000 of rider face amount
per month
$0.10 per $1,000 of rider face amount per month
Charge for a male insured, issue age 35, Policy year 10 7
 
$0.10 per $1,000 of rider face amount
per month
$0.10 per $1,000 of rider face amount per month
Disability Waiver Rider 20
Monthly, on the Policy date and on each
Monthiversary until the insured
reaches age 60
    
Maximum Charge 1 0
  
$0.39 per $1,000 of the Policy’s net amount at risk per month1 3
$0.39 per $1,000 of the Policy’s net amount at risk per month1 3
Minimum Charge2 2
 
$0.03 per $1,000 of the Policy’s net amount at risk per month1 3
$0.03 per $1,000 of the Policy’s net amount at risk per month1 3
Charge for a male insured, issue age 35, Policy year 10 7
 
$0.05 per $1,000 of the Policy’s net amount at risk per month1 3
$0.05 per $1,000 of the Policy’s net amount at risk per month1 3


1 7  Rider cost of insurance charges are based on a number of factors including but not limited to: each insured’s attained age and rider face amount . The cost of insurance rates shown in the table may not be representative of the charges you will pay.  The rider will indicate the maximum guaranteed rider charges applicable to your Policy.  You can obtain more information about this rider by contacting your registered representative.
1 8 This maximum charge is based on an insured with the following characteristics: male, age 50 at issue and in the 20th Policy year. This maximum charge may also apply to insureds with other characteristics.
1 9 This minimum charge is based on an insured with the following characteristics: male, age 45 at issue and in the first Policy year.
20  Disability Waiver charges are based on the primary insured’s issue age, gender and net amount at risk.  The charges shown are for base Policy only (no riders and benefits).  The addition of other riders and benefits would increase these charges. This charge does not vary once it is added to the Policy.  The cost of insurance rates shown in the table may not be representative of the charges you will pay.  Your Policy’s schedule page will indicate the guaranteed cost of insurance charges applicable to your Policy.  You can obtain more information about these riders by contacting your registered representative.
2 1 This maximum charge is based on an insured with the following characteristics: female, age 55 at issue. This maximum charge may also apply to insureds with other characteristics.
2 2 This minimum charge is based on an insured with the following characteristics: male, age 25 at issue.  This minimum charge may also apply to insureds with other characteristics.


 
 
 


Periodic Charges Other Than Portfolio Operating Expenses
Charge
When Charge is Deducted
Amount Deducted
Guaranteed Charge
Current Charge1
Disability Waiver and Income Rider2 3
Monthly, on the Policy date and
on each Monthiversary until the
insured reaches age 60
    
Maximum Charge2 4
 
$0.86 per $10 monthly rider units
$0.86 per $10 monthly rider units
Minimum Charge2 5
 
$0.20 per $10 monthly rider units
$0.20 per $10 monthly rider units
Charge for a male insured, issue age 3 4 , in Policy year 5 7
 
$0.2 7 per $10 monthly rider units
$0.2 7 per $10 monthly rider units
Children’s Insurance Rider2 6
Monthly, on the Policy date and
on each Monthiversary until the
youngest child reaches age 25
$0.60 per $1,000 of rider face amount
per month
$0.60 per $1,000 of rider face amount
per month
Other Insured Rider2 7
(without Extra Ratings)1 1
Monthly, on the Policy date and
on each Monthiversary until the
other insured reaches age 95
    
Maximum Charge1 2
 
$24.85 per $1,000 of rider face amount
per month
$21.12 per $1,000 of rider face amount
per month
Minimum Charge 14
 
$0.06 per $1,000 of rider face amount
per month
$0.06 per $1,000 of rider face amount
per month
Charge for female insured, issue age 3 4 , in the ultimate select non-tobacco use class in Policy year 5 7
 
$0. 22 per $1,000 of rider face amount
per month
$0.1 9 per $1,000 of rider face amount
per month






2 3 The charge for this rider is based on the base insured’s issue age, gender and number of units of monthly disability income selected.
2 4  This maximum charge is based on an insured with the following characteristics: female, age 55 at issue.  This maximum charge may also apply to insureds with other characteristics.
2 5  This minimum charge is based on an insured with the following characteristics: male, age 27 at issue.  This minimum charge may also apply to insureds with other characteristics.
2 6  The charge for this rider is based on the rider face amount and the cost per $1,000 does not vary.
2 7 Rider charges are cost of insurance charges that are based on each other insured’s issue age, gender, underwriting class, Policy year, and the rider face amount . Cost of insurance rates for this rider generally will increase each year with the age of the other insured.  The cost of insurance rates shown in the table may not be representative of the charges you will pay.  The rider will indicate the maximum guaranteed rider charges applicable to your Policy.  You can obtain more information about this rider by contacting your registered representative.



 
 
 


Periodic Charges Other Than Portfolio Operating Expenses
Charge
When Charge is Deducted
Amount Deducted
Guaranteed Charge
Current Charge1
Primary Insured Rider2 7
(without Extra Ratings)10
Monthly, on the Policy date and on
each Monthiversary until the insured reaches age 90
    
Maximum Charge2 8
 
$18.46 per $1,000 of rider face amount per month
$14.91 per $1,000 of rider face amount per month
Minimum Charg 14
 
$0.06 per $1,000 of rider face amount per
month
$0.05 per $1,000 of rider face amount per month
Charge for a male insured, issue age 3 4 , in the ultimate select non-tobacco use class in Policy year 5 7
 
$0. 17 per $1,000 of rider face amount per
month
$0. 12 per $1,000 of rider face amount per month
Primary Insured Plus Rider2 7
(without Extra Ratings)1 1
Monthly, on the Policy date and on
each Monthiversary until the insured reaches age 85
    
Maximum Charge
  
$13.54 per $1,000 of rider face amount per month2 9
$10.93 per $1,000 of rider face amount per month 30
Minimum Charge
  
$0.08 per $1,000 of rider face amount per month3 1
$0.04 per $1,000 of rider face amount per month3 2
Charge for a male insured, issue age 35, in the ultimate select non-tobacco use class in Policy year 10 7
 
$0. 17 per $1,000 of rider face amount per
month
$0. 07 per $1,000 of rider face amount per month









 
2 8  This maximum charge is based on an insured with the following characteristics: male, age 70 at issue, standard tobacco use class and in the 15th Policy year. This maximum charge may also apply to insureds with other characteristics.
2 9 This maximum charge is based on an insured with the following characteristics: male, age 75 at issue, standard tobacco use class and in the 10th Policy year.  This maximum charge may also apply to insureds with other characteristics.
30 This maximum charge is based on an insured with the following characteristics: male, age 70 at issue standard tobacco underwriting class and in the 15th Policy year. This maximum charge may also apply to insureds with other characteristics.
3 1 This minimum charge is based on an insured with the following characteristics: female, age 18 at issue, non-tobacco use class and in the first Policy year.  This minimum charge may also apply to insureds with other characteristics.
3 2 This minimum charge is based on an insured with the following characteristics: female, age 29 at issue, ultimate select non-tobacco use class and first Policy year.  This minimum charge may also apply to insureds with other characteristics.



 
 
 


For information concerning compensation paid for the sale of the Policy, please see “Sale of the Policies.”
 
Range of Expenses for the Portfolios1, 2
 
The next table shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 201 1 .  Expenses of the portfolios may be higher or lower in the future.  More detail concerning each portfolio’s fees and expenses is contained in the prospectus for each portfolio.

 
Lowest
Highest
Total Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fees, and other expenses)
0.35 %
2.09 %
Net Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fees, and other expenses, after contractual waiver of fees and expenses)3
 
0.35 %
 
1.70 %

1 The portfolio expenses used to prepare this table were provided to Western Reserve by the funds.  Western Reserve has not independently verified such information.  The expenses shown are those incurred for the year ended December 31, 201 1 .  Current or future expenses may be greater or less than those shown.
2The table showing the range of expenses for the portfolios takes into account the expenses of several Transamerica Series Trust asset allocation portfolios and the Franklin Templeton VIP Founding Funds Allocation Fund that are each a “fund of funds.”  A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Fund portfolios and affiliated Fund portfolios (each such portfolio an "Acquired Fund").  Each “fund of funds” has its own set of operating expenses, as does each of the portfolios in which it invests.  In determining the range of portfolio expenses, Western Reserve took into account the information received from the Fund groups on the combined actual expenses for each of the “fund of funds” and for the portfolios in which it invests. The combined expense information includes the Acquired Fund (i.e., the underlying fund’s) fees and expenses for the Transamerica Series Trust asset allocation portfolios and the Franklin Templeton VIP Founding Funds Allocation Fund. See the prospectuses for the Transamerica Series Trust and the Franklin Templeton VIP Founding Funds Allocation Fund for a presentation of the applicable Acquired Fund fees and expenses.
3The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements for 39 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 201 3 .

Western Reserve, the Separate Account, the Fixed Account and the Portfolios 

 
Western Reserve
 
Western Reserve Life Assurance Co. of Ohio, located at 570 Carillon Parkway, St. Petersburg, Florida 33716, is the insurance company issuing the Policy.   We are obligated to pay all benefits under the Policy as long as the Policy is active and in force.

Financial Condition of the Company
 
The benefits under the Policy are paid by Western Reserve from its general account assets and/or your cash value held in the Company’s separate account.  It is important that you understand that payment of benefits is not guaranteed and depends upon certain factors discussed below.

Assets in the Separate Account.  You assume all of the investment risk for your cash value that is allocated to the subaccounts of the separate account.  Your cash 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.   See "The Separate Account."

Assets in the General Account.  You also may be permitted to make allocations to the fixed account, which is supported by the assets in our general account.  See "The Fixed Account."  Any guarantees under the Policy that exceed your cash value, such as those associated with the Policy’s death benefit 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 cash 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 to our policyowners.  We monitor our reserves so that we hold sufficient amounts to cover actual or expected policy and claims payments. In addition, we may hedge our investments in our general account, and may require purchasers of certain of the variable insurance products that we offer to allocate premium payments and cash value in accordance with specified investment requirements. However, it is important to note that there is no guarantee that we will always be able to meet our claims-paying obligations, and 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.  We may also experience liquidity risk if our general account assets cannot be readily converted into cash to meet obligations to our policyowners or to provide the collateral necessary to finance our business operations. 

We are continuing to evaluate our investment portfolio to mitigate market risk and actively manage the investments in the portfolio.

How to Obtain More Information.  We encourage both existing and prospective policyowners 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).  The SAI is available at no charge by writing to our mailing address - Western Reserve Life Assurance Co. of Ohio,  4333 Edgewood Rd., NE, Cedar Rapids, IA 52499 - or by calling us at (800) 851-9777, or by visiting our website www.westernreserve.com.  In addition, the SAI is available on the SEC’s website at http://www.sec.gov.  Our financial strength ratings, which reflect the opinions of leading independent rating agencies of WRL's ability to meet its obligations to its policy owners, are available on our website and the websites of these Nationally Recognized Statistical Ratings Organizations--A.M. Best Company ( www.ambest.com), Moody's Investors Service (www.moodys.com) Standard & Poor's www.standardandpoors.com) and Fitch Ratings (www.fitchratings.com).

 
The Separate Account
 
The separate account is a separate account of Western Reserve, established under Ohio law.  We own the assets in the separate account and we may use assets in the separate account to support other variable life insurance policies we issue.  The separate account is registered with the Securities and Exchange Commission (“SEC”) as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”).

The separate account is divided into subaccounts, each of which invests in shares of a specific portfolio of a fund. These subaccounts buy and sell portfolio shares at net asset value without any sales charge. Any dividends and distributions from a portfolio are reinvested at net asset value in shares of that portfolio.

Income, gains, and losses credited to, or charged against, a subaccount of the separate account reflect the subaccount's own investment experience and not the investment experience of our other assets. The separate account's assets may not be used to pay any of our liabilities other than those arising from the Policies and other variable life insurance policies we issue. If the separate account's assets exceed the required reserves and other liabilities, we may transfer the excess to our general account.

Changes to the Separate Account.  As permitted by applicable law, we reserve the right to make certain changes to the structure and operation of the separate account, including, among others, the right to:

·
Remove, combine, or add subaccounts and make the new or combined subaccounts available to you at our discretion.
·
Combine the separate account or any subaccount(s) with one or more different separate account( s ) or subaccount(s).

 
 
 


·
Close certain subaccounts to allocations of new premiums by current or new policyowners at any time at our discretion.
·
Transfer assets of the separate account or any subaccount, which we determine to be associated with the class of policies to which the Policy belongs, to another separate account or subaccount.
·
Operate the separate account as a management company under the 1940 Act, or as any other form of investment company permitted by law.
·
Establish additional separate accounts or subaccounts to invest in new portfolios of the funds.
·
Manage the separate account at the direction of a committee.
·
Endorse the Policy, as permitted by law, to reflect changes to the separate account and subaccounts as may be required by applicable law.
·
Change the investment objective of a subaccount.
·
Substitute, add, or delete fund portfolios in which subaccounts currently invest net premiums, to include portfolios of newly designated funds. (Fund portfolios will not be added, deleted or substituted without prior approval of the SEC to the extent required by the 1940 Act or other applicable laws.)
·
Fund additional classes of variable life insurance policies through the separate account.
·
Restrict or eliminate any voting privileges of owners or other persons who have voting privileges in connection with the operation of the separate account.

Some, but not all, of these future changes may be the result of changes in applicable laws or interpretation of the law.  We will not make any such changes without receiving any necessary approval of the SEC and applicable state insurance departments.  We will notify you of any changes.  We reserve the right to make other structural and operational changes affecting the separate account.

In addition, the portfolios that sell their shares to the subaccounts may discontinue offering their shares to the subaccounts.
 
The Fixed Account
 
The fixed account is part of Western Reserve's general account. We use general account assets to support our insurance and annuity obligations other than those funded by separate accounts. Subject to applicable law, Western Reserve has sole discretion over the investment of the fixed account's assets. Western Reserve bears the full investment risk for all amounts contributed to the fixed account. Please see the section above entitled “Risks of Managing General Account Assets . ”  Western Reserve guarantees that the amounts allocated to the fixed account will be credited interest daily at an annual net effective interest rate of at least 4.0%. We will determine any interest rate credited in excess of the guaranteed rate at our sole discretion.  We have no formula for determining fixed account interest rates in excess of the guaranteed rate or any duration for such rates.

Money you place in the fixed account will begin earning interest credited daily and compounded annually at the current interest rate in effect at the time of your allocation.  We may declare current interest rates from time to time. We may declare more than one interest rate for different money based upon the date of allocation or transfer to the fixed account. When we declare a current interest rate higher than the guaranteed rate on amounts allocated to the fixed account, we guarantee the higher rate on those amounts for at least one year (“the "guarantee period") unless those amounts are transferred to the loan reserve. At the end of the guarantee period we may declare a new current interest rate on those amounts and any accrued interest thereon. We will guarantee this new current interest rate for another guarantee period. We credit interest greater than 4.0% during any guarantee period at our sole discretion. You bear the risk that interest we credit will not exceed 4.0%.

We allocate amounts from the fixed account for cash withdrawals, transfers to the subaccounts, or monthly deduction charges on a first in, first out basis ("FIFO") for the purpose of crediting interest.

New Jersey: The fixed account is not available to you as an investment option if your Policy was issued in the State of New Jersey.  You may not direct or transfer any premium payments or cash value to the fixed account.  The fixed account is available to you only in connection with Policy loans.

The fixed account has not been registered with the Securities and Exchange Commission and the staff of the Securities and Exchange Commission has not reviewed the disclosure in this prospectus relating to the fixed account. Disclosures regarding the fixed account, however, may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in this prospectus.

 
 
 



 
The Portfolios
 
The separate account invests in shares of the portfolios of a fund. Each portfolio is an investment division of a fund, which is an open-end management investment company registered with the SEC. Such registration does not involve supervision of the management or investment practices or policies of the portfolios by the SEC.

Each portfolio's assets are held separate from the assets of the other portfolios, and each portfolio has investment objectives and policies that are different from those of the other portfolios.  Thus, each portfolio operates as a separate investment fund, and the income or loss of one portfolio has no effect on the investment performance of any other portfolio. Pending any required approval by a state insurance regulatory authority, certain subaccounts and corresponding portfolios may not be available to residents of some states.
 
Each portfolio’s investment objective(s) and policies are summarized below. There is no assurance that a portfolio will achieve its stated objective(s). Certain portfolios may have investment objectives and policies similar to other portfolios that are managed by the same investment adviser or sub-adviser. The investment results of the portfolios, however, may be higher or lower than those of such other portfolios. We do not guarantee or make any representation that the investment results of the portfolios will be comparable to any other portfolio, even those with the same investment adviser or manager.
 
Note: You can find more detailed information about the portfolios, including a description of risks, in the fund prospectuses. You may obtain a free copy of the fund prospectuses, by contacting us at our administrative office at 1-800-851-9777 or visiting our website at www.westernreserve.com. You should read the fund prospectuses carefully
 
 If you received a summary prospectus for the any of the portfolios listed below, please follow the directions on the first page of the summary prospectus to obtain a copy of the full fund prospectus.
 
 


 
 
 
 
 

 
     
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
TRANSAMERICA SERIES TRUST:
Transamerica AEGON Active Asset Allocation – Conservative VP 1
Transamerica Asset Management, Inc.
AEGON USA Investment Management, LLC
Seeks current income and preservation of capital.
Transamerica AEGON Active Asset Allocation – Moderate Growth VP 1
Transamerica Asset Management, Inc.
AEGON USA Investment Management, LLC
Seeks capital appreciation with current income as a secondary objective.
Transamerica AEGON Active Asset Allocation – Moderate VP 1
Transamerica Asset Management, Inc.
AEGON USA Investment Management, LLC
Seeks capital appreciation and current income.
Transamerica AEGON High Yield Bond VP 2
Transamerica Asset Management, Inc.
AEGON USA Investment Management, LLC
Seeks a high level of current income by investing in high yield debt securities.
Transamerica AEGON Money Market VP 3
Transamerica Asset Management, Inc.
AEGON USA Investment Management, LLC
Seeks maximum current income from money market securities consistent with liquidity and preservation of principal.
Transamerica AEGON U.S. Government Securities VP
Transamerica Asset Management, Inc.
AEGON USA Investment Management, LLC
Seeks to provide as high a level of total return as is consistent with prudent investment strategies.
Transamerica AllianceBernstein Dynamic Allocation VP
Transamerica Asset Management, Inc.
AllianceBernstein, LLP
Seeks capital appreciation and current income.
Transamerica Asset Allocation – Conservative VP 4
Transamerica Asset Management, Inc.
 
Seeks current income and preservation of capital.
Transamerica Asset Allocation – Growth VP 4
Transamerica Asset Management, Inc.
 
Seeks long-term capital appreciation.
 
 
1 Each of these asset allocation portfolios is a fund-of-funds and invests in a combination of underlying Exchange Traded Funds (“ETFs”).  Please see the portfolio’s prospectus for a description of the investment strategy and the risks associated with investing in the portfolio.
2 Under normal market conditions, this portfolio invests at least 80% of its net assets in credit default swaps and other financial instruments that in combination have economic characteristics similar to the high yield debt (“junk bonds”) market and/or in high yield debt securities.
3 There can be no assurance that the Transamerica AEGON 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 insurance charges, the yield on the Transamerica AEGON Money Market VP subaccount may become extremely low and possibly negative.
4 Each of these asset allocation portfolios is a fund of funds and invests in a combination of underlying Transamerica Series Trust and Transamerica Funds portfolios. Please see the portfolio’s prospectus for a description of the investment strategy and the risks associated with investing in the portfolio.

 
 
 


 
 
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
Transamerica Asset Allocation – Moderate Growth VP 4
Transamerica Asset Management, Inc.
 
Seeks capital appreciation with current income as a secondary objective.
Transamerica Asset Allocation – Moderate VP 4
Transamerica Asset Management, Inc.
 
Seeks capital appreciation and current income.
 
Transamerica BlackRock Global Allocation VP 5
Transamerica Asset Management, Inc.
BlackRock Investment Management, LLC
Seeks high total investment return.
Transamerica BlackRock Large Cap Value VP
Transamerica Asset Management, Inc.
BlackRock Investment Management, LLC
Seeks long-term capital growth.
Transamerica BlackRock Tactical Allocation VP 6
Transamerica Asset Management, Inc.
BlackRock Investment Management, LLC
Seeks capital appreciation with current income as a secondary objective.
Transamerica Clarion Global Real Estate Securities VP
Transamerica Asset Management, Inc.
CBRE Clarion Real Estate Securities, L.P.
 
Seeks 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.
Transamerica Efficient Markets VP
Transamerica Asset Management, Inc.
AEGON USA Investment Management, Inc.
Seeks capital appreciation while seeking income as a secondary objective.
Transamerica Hanlon Balanced VP 7
Transamerica Asset Management, Inc.
Hanlon Investment Management, Inc.
Seeks current income and capital appreciation.
Transamerica Hanlon Growth and Income VP 7
Transamerica Asset Management, Inc.
Hanlon Investment Management, Inc.
Seeks long-term capital appreciation and some current income.
 
5 This portfolio is a fund of funds and invests its assets in an underlying mutual fund, BlackRock Global Allocation V.I. Fund of the BlackRock Variable Series Fund, Inc.  Please see the portfolio’s prospectus for a description of the investment strategy and the risks associated with investing in the portfolio.
 
6 This portfolio is a fund of funds and invests in a combination of underlying Transamerica Series Trust portfolios and certain funds of Transamerica Funds.   Please see the portfolio’s prospectus for a description of the investment strategy and the risks associated with investing in the portfolio.
 
7 This portfolio utilizes both a tactical asset allocation strategy and a strategic asset allocation strategy to seek to achieve its objective by investing in underlying funds that consist of ETFs and money market mutual funds.   Please see the portfolio’s prospectus for a complete description of the portfolio’s investment strategies and the risks of investing in the portfolio.
 


 
 
 


 
 
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
Transamerica Hanlon Growth VP 7
Transamerica Asset Management, Inc.
Hanlon Investment Management, Inc.
Seeks long-term capital appreciation.
Transamerica Hanlon Income VP 7,8
Transamerica Asset Management, Inc.
Hanlon Investment Management, Inc.
Seeks conservative stability.
Transamerica Index 50 VP
Transamerica Asset Management, Inc.
AEGON USA Investment Management, LLC
Seeks to balance capital appreciation and income.
Transamerica Index 75 VP
Transamerica Asset Management, Inc.
AEGON USA Investment Management, LLC
Seeks capital appreciation as a primary objective and income as a secondary objective.
Transamerica International Moderate Growth VP 4
Transamerica Asset Management, Inc.
 
Seeks capital appreciation with current income as a secondary objective.
 
Transamerica JPMorgan Core Bond VP
Transamerica Asset Management, Inc.
JPMorgan Investment Advisors Inc.
Seeks total return, consisting of income and capital appreciation.
Transamerica JPMorgan Enhanced Index VP
Transamerica Asset Management, Inc.
J. P. Morgan Investment Management Inc.
 
Seeks to earn a total return modestly in excess of the total return performance of the Standard & Poor’s 500 Composite Stock Index (“S&P 500”) (including the reinvestment of dividends) while maintaining a volatility of return similar to the S&P 500.
Transamerica JPMorgan Tactical Allocation VP
Transamerica Asset Management, Inc.
J. P. Morgan Investment Management Inc.
Seeks current income and preservation of capital.
Transamerica Janus Balanced VP 9
Transamerica Asset Management, Inc.
Janus Capital Management LLC
Seeks long-term capital growth, consistent with preservation of capital and balanced by current income.
Transamerica Jennison Growth VP
Transamerica Asset Management, Inc.
Jennison Associates, LLC.
Seeks long-term growth of capital.
 
8 Formerly, Transamerica Hanlon Managed Income VP.
 
9 Formerly, Transamerica Foxhall Global Commodities & Hard Asset VP.

 
 
 


 
 
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
Transamerica MFS International  Equity VP
Transamerica Asset Management, Inc.
MFS ® Investment Management
 
Seeks capital growth.
Transamerica Morgan Stanley  Capital Growth VP
Transamerica Asset Management, Inc.
Morgan Stanley Investment Management Inc.
Seeks to maximize long-term growth.
Transamerica Morgan Stanley Mid-Cap Growth VP
Transamerica Asset Management, Inc.
Morgan Stanley Investment Management Inc.
Seeks capital appreciation.
Transamerica Multi-Managed Balanced VP
Transamerica Asset Management, Inc.
J. P. Morgan Investment Management Inc.
BlackRock Financial Management, Inc.
Seeks to provide a high total investment return through investments in a broadly diversified portfolio of stocks, bonds and money market instruments.
Transamerica Multi Managed Large Cap Core VP
Transamerica Asset Management, Inc.
Morgan Stanley Investment Management, Inc.
Seeks to provide high total return.
Transamerica PIMCO Total Return VP
Transamerica Asset Management, Inc.
Pacific Investment Management Company LLC
 
Seeks maximum total return consistent with preservation of capital and prudent investment management.
Transamerica Systematic Small/Mid Cap Value VP
Transamerica Asset Management, Inc.
Systematic Financial Management L.P.
Seeks to maximize total return.
Transamerica T. Rowe Price Small Cap VP
Transamerica Asset Management, Inc.
T. Rowe Price Associates, Inc.
Seeks long-term growth of capital by investing primarily in common stocks of small growth companies.
Transamerica Third Avenue Value VP
Transamerica Asset Management, Inc.
Third Avenue Management LLC
Seeks long-term capital appreciation.
Transamerica WMC Diversified Growth VP
Transamerica Asset Management, Inc.
Wellington Management Company, LLP
Seeks to maximize long-term growth.

 
 
 


 
 
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
    FIDELITY FUNDS:
 
Fidelity VIP Index 500 Portfolio
 
Fidelity Management & Research Company
 
Seeks investment results that correspond to the total return of common stocks publicly traded in the United States, as represented by the Standard & Poor’s 500 SM Index.
     ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.:
 
AllianceBernstein Balanced Wealth Strategy Portfolio
AllianceBernstein L.P.
Seeks to maximize total return.
 
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST:
Franklin Templeton VIP Founding Funds Allocation Fund 10
See Footnote 11
Seeks capital appreciation with a secondary goal of income.
 
PROFUNDS:
ProFund VP Asia 30 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the ProFunds Asia 30 Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Basic Materials 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Basic Materials Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Bull 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the S&P 500 Index SM . The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Consumer
Services 1
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Consumer Services Index ® . The fund does not seek to achieve its stated objective over a period of time greater than one day.
 
10 This portfolio is a fund of funds and invests in a combination of Class 1 shares of the Franklin Income Securities Fund, Mutual Shares Securities Fund and Templeton Growth Securities Fund. Please see the portfolio’s prospectus for a description of the investment strategy and the risks associated with investing in the portfolio.
 
11 Franklin Templeton Services, LLC is the portfolio’s administrator; the portfolio does not have an investment manager nor does it pay any investment management fees.
 
12 The ProFunds VP and Access Trust portfolios permit frequent transfers.  Frequent transfers may increase portfolio turnover.  A high level of portfolio turnover may negatively impact performance by increasing transaction costs.  In addition, large movements of assets into and out of a ProFunds or Access Trust VP portfolio may negatively impact a fund’s ability to achieve its investment objective or maintain a consistent level of operating expenses.  See “Disruptive Trading and Market Timing.”  Some ProFunds or Access Trust VP portfolios may use investment techniques not associated with most mutual fund portfolios.  Investors in the ProFunds and Access Trust VP portfolios will bear additional investment risks.  See the ProFunds VP or Access Trust prospectus for a description of the investment objectives and risks associated with investing in the ProFunds or Access Trust VP portfolios.

 
 
 


 
 
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
ProFund VP Emerging Markets 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Bank of New York Emerging Markets 50 ADR Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Europe 30 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the   ProFunds Europe 30 Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Falling U.S. Dollar 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the U.S. Dollar Index (USDX) ® . The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Financials 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Financials Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP International 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the   Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Japan 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Nikkei 225 Stock Average. The fund does not seek to achieve its stated objective over a period of time greater than one day.
 
12 The ProFunds VP and Access Trust portfolios permit frequent transfers.  Frequent transfers may increase portfolio turnover.  A high level of portfolio turnover may negatively impact performance by increasing transaction costs.  In addition, large movements of assets into and out of a ProFunds or Access Trust VP portfolio may negatively impact a fund’s ability to achieve its investment objective or maintain a consistent level of operating expenses.  See “Disruptive Trading and Market Timing.”  Some ProFunds or Access Trust VP portfolios may use investment techniques not associated with most mutual fund portfolios.  Investors in the ProFunds and Access Trust VP portfolios will bear additional investment risks.  See the ProFunds VP or Access Trust prospectus for a description of the investment strategies and risks associated with investing in the ProFunds or Access Trust VP portfolios.

 
 
 


 
 
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
ProFund VP Mid-Cap 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the S&P MidCap 400 Index ® . The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Money Market 12,13
ProFund Advisors LLC
Seeks a high level of current income consistent with liquidity and preservation of capital. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP NASDAQ-100 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the NASDAQ-100 Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Oil & Gas 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Oil & Gas Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Pharmaceuticals 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the   Dow Jones U.S. Pharmaceuticals Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Precious Metals 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the   Dow Jones Precious Metals Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
 
12 The ProFunds VP and Access Trust portfolios permit frequent transfers.  Frequent transfers may increase portfolio turnover.  A high level of portfolio turnover may negatively impact performance by increasing transaction costs.  In addition, large movements of assets into and out of a ProFunds or Access Trust VP portfolio may negatively impact a fund’s ability to achieve its investment objective or maintain a consistent level of operating expenses.  See “Disruptive Trading and Market Timing.”  Some ProFunds or Access Trust VP portfolios may use investment techniques not associated with most mutual fund portfolios.  Investors in the ProFunds and Access Trust VP portfolios will bear additional investment risks.  See the ProFunds VP or Access Trust prospectus for a description of the investment strategies and risks associated with investing in the ProFunds or Access Trust VP portfolios.
 
13 There can be no assurance that the ProFund VP Money Market 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 insurance charges, the yield on the ProFund VP Money Market subaccount may become extremely low and possibly negative.
 

 
 
 


 
 

 
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
ProFund VP Short Emerging Markets 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the   Bank of New York Emerging Markets 50 ADR Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Short International 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the   Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Short NASDAQ-100 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the   NASDAQ-100 Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Short Small-Cap 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Russell 2000 Index.
ProFund VP Small-Cap 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Russell 2000 Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP Small-Cap Value 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the   S&P SmallCap 600 ® /Citigroup Value Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
 
12 The ProFunds VP and Access Trust portfolios permit frequent transfers.  Frequent transfers may increase portfolio turnover.  A high level of portfolio turnover may negatively impact performance by increasing transaction costs.  In addition, large movements of assets into and out of a ProFunds or Access Trust VP portfolio may negatively impact a fund’s ability to achieve its investment objective or maintain a consistent level of operating expenses.  See “Disruptive Trading and Market Timing.”  Some ProFunds or Access Trust VP portfolios may use investment techniques not associated with most mutual fund portfolios.  Investors in the ProFunds and Access Trust VP portfolios will bear additional investment risks.  See the ProFunds VP or Access Trust prospectus for a description of the investment strategies and risks associated with investing in the ProFunds or Access Trust VP portfolios.

 
 
 


 
 
Portfolio
Investment Adviser/Sub-Adviser
Investment Objective
ProFund VP Telecommunications 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the   Dow Jones U.S. Telecommunications Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP UltraNASDAQ-100 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the NASDAQ-100 ® Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP UltraSmall-Cap 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the   Russell 2000 Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ProFund VP U.S. Government Plus 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to one and one-quarter times (125%) the daily price movement of the most recently issued 30-year U.S. Treasury Bond. The fund does not seek to achieve its stated objective over a period of time greater than one day.
 
ProFund VP Utilities 12
ProFund Advisors LLC
Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the   Dow Jones U.S. Utilities Index. The fund does not seek to achieve its stated objective over a period of time greater than one day.
ACCESS TRUST:
Access VP High Yield Fund 12, 1 4
ProFund Advisors LLC
Seeks to provide investment results that correspond generally to the total return of the high yield market consistent with maintaining reasonable liquidity.
 
12 The ProFunds VP and Access Trust portfolios permit frequent transfers.  Frequent transfers may increase portfolio turnover.  A high level of portfolio turnover may negatively impact performance by increasing transaction costs.  In addition, large movements of assets into and out of a ProFunds or Access Trust VP portfolio may negatively impact a fund’s ability to achieve its investment objective or maintain a consistent level of operating expenses.  See “Disruptive Trading and Market Timing.”  Some ProFunds or Access Trust VP portfolios may use investment techniques not associated with most mutual fund portfolios.  Investors in the ProFunds and Access Trust VP portfolios will bear additional investment risks.  See the ProFunds VP or Access Trust prospectus for a description of the investment strategies and risks associated with investing in the ProFunds or Access Trust VP portfolios.
 
14 Under normal market conditions, this portfolio invests at least 80% of its net assets in credit default swaps and other financial instruments that in combination have economic characteristics similar to the high yield debt (“junk bonds”) market and/or in high yield debt securities.
 



 
 
 


 

Transamerica Asset Management, Inc. ("Transamerica Asset"), located at 570 Carillon Parkway, St. Petersburg, Florida 33716, is directly owned by Western Reserve (77%) and AUSA Holding Company (23%), and serves as investment adviser to the Transamerica Series Trust (“Series Trust”) and manages the Series Trust in accordance with policies and guidelines established by the  Series Trust’s Board of Trustees. For certain portfolios, Transamerica Asset has engaged investment sub-advisers to provide portfolio management services. Transamerica Asset and each investment sub-adviser are registered investment advisers under the Investment Asset Act of 1940, as amended. See the  Series Trust prospectuses for more information regarding Transamerica Asset and the investment sub-advisers.

 

Fidelity Management & Research Company (“FMR”), located at 82 Devonshire Street, Boston, Massachusetts 02109, serves as investment adviser to the Fidelity VIP Funds and manages the Fidelity VIP Funds in accordance with policies and guidelines established by the Fidelity VIP Funds’ Board of Trustees.  For certain portfolios, FMR has engaged investment sub-advisers to provide portfolio management services with regard to foreign investments.  FMR and each sub-adviser are registered investment advisers under the Investment Advisers Act of 1940, as amended.  See the Fidelity VIP Funds prospectuses for more information regarding FMR and the investment sub-advisers.

ProFund Advisors LLC (“ProFund Advisors”), located at 7501 Wisconsin Avenue, Suite 1000, Bethesda, Maryland 20814, serves as the investment adviser and provides management services to all of the ProFunds and Access Trust portfolios. ProFund Advisors oversees the investment and reinvestment of the assets in each ProFund and Access Trust VP portfolio in accordance with policies and guidelines established by the ProFunds’ or Access Trust’s Board of Trustees.  ProFund Advisors is a registered investment adviser under the Investment Advisers Act of 1940, as amended.  See the respective ProFunds and/or Access Trust prospectuses for more information regarding ProFund Advisors.

AllianceBernstein L.P. (“AllianceBernstein”), located at 1345 Avenue of the Americas, New York, New York 10105 , serves as investment adviser to the Alliance Bernstein Variable Products Series Fund, Inc. and manages the AllianceBernstein Balanced Wealth Strategy Portfolio in accordance with the policies and guidelines established by the AllianceBernstein Board of Directors.  Please see the prospectus for the portfolio for more information regarding AllianceBernstein L.P.

Franklin Advisers, L.P. (“Franklin”), located at One Franklin Parkway, San Mateo, California 94403 , serves as investment adviser to the Franklin Templeton Variable Insurance Products Trust and manages the Franklin Templeton VIP Founding Funds Allocation Fund.  Franklin Templeton Services, LLC (“FT Services”) serves as administrator for the portfolio and provides certain administrative services and facilities for the adviser, and oversees rebalancing of the portfolio’s assets.  FT Services is paid a fee for its services from the portfolio.  Franklin oversees the investment and reinvestment of the portfolio’s assets in accordance with policies and guidelines established by the Trust’s Board of Trustees.  Please see the portfolio’s prospectus for more information regarding Franklin and FT Services.
 
Selection of Underlying Portfolios
 
 
The underlying portfolios offered through this product are selected by Western Reserve.  Western Reserve may consider various factors, including, but not limited to, asset class coverage, the strength 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 portfolio or its service providers (e.g., the investment adviser or sub-advisers) or its affiliates will make payments to us or our affiliates in connection with certain administrative, marketing, and support services that would otherwise be provided by the portfolio or its service providers, or whether affiliates of the portfolio can provide marketing and distribution support for sales of the Policies.  (For additional information on these arrangements, please refer to the section of this prospectus entitled “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 policyowners. We have included the Transamerica Series Trust portfolios at least in part because they are managed by Transamerica Asset, our directly owned subsidiary.

You are responsible for choosing the 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 that is available to you regarding the portfolios, including each fund's prospectus, statement of additional information and annual and semi/annual reports.  Other sources such as newspapers and financial and other magazines provide more current information, including information about any regulatory actions or investigations relating to a fund or portfolio.  After you select 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 surrender value of your Policy resulting from the performance of the portfolios you have chosen.

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

Addition, Deletion, or Substitution of Portfolios
 
We do not guarantee that each portfolio will always be available for investment through the Policy. We reserve the right, subject to compliance with applicable law, 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. New or substitute portfolios may have different fees and expenses and their availability may be limited to certain classes of purchasers. We will not add, delete or substitute any 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 may also decide to purchase securities from other portfolios for the separate account. We reserve the right to transfer separate account assets to another separate account that we determine to be associated with the class of contracts to which the Policy belongs.

Your Right to Vote Portfolio Shares
 
Even though we are the legal owner of the portfolio shares held in the subaccounts, and have the right to vote on all matters submitted to shareholders of the portfolios, we will vote our shares only as policyowners instruct, so long as such action is required by law.

Before a vote of a portfolio's shareholders occurs, you will receive voting materials from us. We will ask you to instruct us on how to vote and to return your voting instructions to us in a timely manner. You will have the right to instruct us on the number of portfolio shares that corresponds to the amount of cash value you have in that portfolio (as of a date set by the portfolio).

If we do not receive voting instructions on time from some policyowners, we will vote those shares in the same proportion as the timely voting instructions we receive. Therefore, because of proportional voting, a small number of policyowners may control the outcome of a vote. Should federal securities laws, regulations and interpretations change, we may elect to vote portfolio shares in our own right. If required by state insurance officials, or if permitted under federal regulation, we may disregard certain owner voting instructions. If we ever disregard voting instructions, we will send you a summary in the next annual report to policyowners advising you of the action and the reasons we took such action.

Charges and Deductions 

This section describes the charges and deductions that we make under the Policy in consideration for: (1) the services and benefits we provide; (2) the costs and expenses we incur;   and (3) the risks we assume.  The fees and charges deducted under the Policy may result in a profit to us.

Services and benefits we provide under the Policy:
                        ·
The death benefit, cash and loan benefits.
                                 ·
Investment options, including premium allocations.
 
                                ·
Administration of elective options.
 
                                 ·
The distribution of reports to owners.

 
 
 


     
Costs and expenses we incur:
·
Costs associated with processing and underwriting applications.
 
·
Expenses of issuing and administering the Policy (including any Policy riders).
 
·
Overhead and other expenses for providing services and benefits and sales and marketing expenses, including compensation paid in connection with the sale of the Policies.
 
·
Other costs of doing business, such as collecting premiums, maintaining records, processing claims, effecting transactions, and paying federal, state and local premium and other taxes and fees.
     
Risks we assume:
·
That the charges we may deduct may be insufficient to meet our actual claims because insureds die sooner than we estimate.
 
·
That the costs of providing the services and benefits under the Policies may exceed the charges we are allowed to deduct.

Some or all the charges we deduct are used to pay aggregate Policy costs and expenses we incur in providing the services and benefits under the Policy and assuming the risks associated with the Policy.
 
Premium Charges
 
Before we allocate the net premium payments you make, we will deduct the following premium expense charge.

The premium expense charge equals:
·
6.0% of premiums during the first ten Policy years; and
 
·
2.5% of premiums thereafter.
 
NOTE:  Certain events (such as increases or decreases in the specified amount, a change in death benefit option, or a cash withdrawal if you choose Option A death benefit) may affect the specified amount in force. Premium expense charges will be based on the specified amount in force on the Base Policy at the time we receive the premium.

Some or all of the premium expense charges we deduct are used to pay the aggregate Policy costs and expenses we incur, including distribution costs and/or state premium taxes.  Although state premium tax rates imposed on us vary from state to state, the premium expense charge deducted will not vary with the state of residence of the policyowner.

The premium collection charge equals:
·
$2.00 per premium payment.
 
·
We will not increase this charge.

 
Monthly Deductions
 
Monthly deductions will be withdrawn from each subaccount and/or any available fixed account in accordance with the current premium allocation instructions.  If the value of any account is insufficient to pay its portion of the monthly deductions, then we will take the monthly deductions on a pro rata basis from all accounts (i.e., in the same proportion that the value in each subaccount and the fixed account bears to the total cash value on the Monthiversary). Because portions of the monthly deductions (such as cost of insurance) can vary monthly, the monthly deductions will also vary.

The monthly deductions are equal to:
●
The monthly Policy charge; plus
●
The monthly cost of insurance charge for the Policy; plus
 
●
The monthly charge for any benefits provided by riders attached to the Policy.

 
 
 


     
 
Monthly Policy Charge:
     
 
●
This charge currently equals $5.00 each Policy month.
 
●
We will not increase this charge.
 
●
This charge is used to cover aggregate Policy expenses.
     
 
Cost of Insurance Charge:
     
 
We deduct this charge each month. It varies each month and is determined as follows:
     
   
1.
Divide the death benefit on the Monthiversary by 1.0032737 (this factor reduces the net amount at risk, for purposes of computing the cost of insurance, by taking into account assumed monthly earnings at an annual rate of 4.0%).
   
2.
Subtract the cash value on the Monthiversary.
   
3.
Multiply the appropriate monthly cost of insurance rate for the Policy.
     
 
Optional Insurance Riders:
     
 
●
The monthly deductions will include charges for any optional insurance benefits you add to your Policy by rider. Please refer to the section below entitled “Rider Charges” for a description of the rider charges.

To determine the monthly cost of insurance rates we refer to a schedule of current cost of insurance rates and consider a number of factors, including, but not limited to: the insured's issue age, attained age at the time of any increase in specified amount, gender, underwriting class, and the length of time from the Policy date or from the date of any increase in specified amount.   The factors that affect the net amount at risk for each segment of specified amount include the investment performance of the portfolios in which you invest, payment of premiums, the fees and charges deducted under the Policy, the death benefit option you choose, as well as any Policy transactions (such as loans, partial withdrawals, transfers, and changes in specified amount).  The actual monthly cost of insurance rates are primarily based on our expectations as to future mortality experience and expenses. Monthly cost of insurance rates may be changed by us from time to time.  The actual rates we charge will never be greater than the Table of Guaranteed Maximum Life Insurance Rates stated in your Policy. These guaranteed rates are based on the Commissioners 1980 Standard Ordinary Tobacco and Non-Tobacco Mortality Tables (“1980 C.S.O. Tables”) and the insured's attained age, gender, and underwriting class. For standard rate classes, these guaranteed rates will never be greater than the rates in the 1980 C.S.O. Tables.

 The underwriting class of the insured will affect the cost of insurance rates. We use a standard method of underwriting in determining underwriting classes, which is based on the health of the insured. We currently place insureds into preferred and standard classes. We also place insureds into substandard classes with extra ratings, which reflect higher mortality risks and will result in higher cost of insurance rates. Examples of reasons an insured may be placed into an extra risk factor underwriting class include, but are not limited to, medical history, avocation, occupation, driving record, or planned future travel (where permitted by law).

We may issue certain Policies on a simplified or expedited basis.  Cost of insurance rates charged for any Policies issued on a simplified , guaranteed or expedited basis may cause healthy individuals to pay higher cost of insurance rates than they would pay under a substantially similar Policy that we offer using different underwriting criteria.

The cost of insurance charge for any optional insurance rider and for any increase in rider face amount are determined in the same manner used to determine the Base Policy’s cost of insurance charges. Generally, the current cost of insurance rates for optional riders are lower than the current cost of insurance on the Base Policy’s net amount at risk.

 
 
 


 
Mortality and Expense Risk Charge
 
We deduct a daily charge from your Policy’s cash value in each subaccount that, together with other fees and charges, compensates us for services rendered, the expenses expected to be incurred and the risks assumed. This charge is a maximum of:

●
Your Policy's cash value in each subaccount. multiplied by
●
The daily pro rata portion of the annual mortality and expense risk charge rate of 0.90% (this annual rate is equal to 0.90% of the average daily net assets of each subaccount).

If this charge, combined with other Policy fees and charges, does not cover our total actual costs for services rendered and expenses incurred, we absorb the loss. Conversely, if these fees and charges more than cover actual costs, the excess is added to our surplus. We expect to profit from these charges.
 
Surrender Charge
 
If you surrender your Policy completely during the first 15 years (or during the 15 year period following an increase in specified amount), we deduct a surrender charge from your cash value and pay the remaining cash value (less any outstanding loan amount) to you.   There is no surrender charge if you wait until the end of the 15th Policy year to surrender your Policy (assuming the specified amount has not been increased). The payment you receive is called the net surrender value. The formula we use reduces the surrender charge at older ages in compliance with state laws.

The surrender charge may be significant. You should evaluate this charge carefully before you consider a surrender. Under some circumstances, the level of surrender charges might result in no net surrender value available if you surrender your Policy in the early Policy years. This will depend on a number of factors, but is more likely if:
 
●
You pay premiums equal to or not much higher than the minimum monthly guarantee premium shown in your Policy. and/or
●
Investment performance is low.

The surrender charge is equal to:
●
The deferred issue charge; plus
●
the deferred sales charge; multiplied by
●
The surrender charge percentage.

The deferred issue charge is $5.00 multiplied by each $1,000 of the initial specified amount stated in your Policy and any later increase in specified amount in effect at the time of surrender. This charge helps us recover the underwriting, processing and start-up expenses that we incur in connection with the Policy and the separate account, as well as other aggregate Policy expenses.
 
The deferred sales charge is equal to:

●
26.5% multiplied by the total premiums paid up to the guideline premium shown in your Policy; plus
●
A percentage, which varies depending on the insured’s issue age and gender (see table below); multiplied by the total premiums paid in excess of the guideline premiums (“excess premium charge”).

Issue Age Range
 
   
Excess Premium
Male and Unisex*
Female
Charge
0-55
0-62
4.2%
56-63
63-69
3.7%
64-68
70-74
3.1%
69-73
75
2.5%
74-75
  
2.0%

 
*  The reference to “unisex” is included for purposes of states which prohibit the use of actuarial tables that distinguish between males and females to determine premiums and policy benefits for policies issued on the lives of their residents.

The deferred sales charge helps us recover distribution expenses that we incur in connection with the Policy, including registered representative sales commissions and printing and advertising costs. The proceeds of this charge may not be sufficient to cover these expenses. To the extent they are not, Western Reserve will cover the shortfall from its general account assets, which may include profits from the mortality and expense risk charge under the Policy.
 

 
 
 


To determine the surrender charge, we apply the surrender charge percentage to the sum of the deferred issue charge and the deferred sales charge. In Policy years 1-10 this percentage is 100% for male insureds at issue ages 0-65 and female insureds at issue ages 0-70 and then declines at the rate of 20% per year until reaching zero at the end of the 15th Policy year. Percentages for the WRL Protector Plus ProgramSM are different than those shown below.


Surrender Charge Percentages
Males Issue Ages 0-65
Females Issue Ages 0-70

   
End of Policy Year*
Percentage
  
At Issue - year 10
100%
  
11
80%
12
60%
13
40%
14
20%
15+
0%
* The percentage on any date other than a Policy anniversary will be determined proportionately using the percentage at the end of the Policy year prior to surrender and the percentage at the end of the Policy year of surrender.

For insureds with older issue ages, the surrender charge percentage is less than 100% at the end of the 10th Policy year and then declines to 0% at the end of the 15th Policy year. Therefore, the surrender charge will be less if you surrender the Policy during the 11th through the 15th Policy year. There is no surrender charge if the Policy is surrendered after the 15th Policy year unless you increase the specified amount. See "Additional Surrender Charge on Increases" below.  A different surrender charge percentage schedule applies to Policies through the WRL Protector Plus ProgramSM.  See "WRL Protector Plus Program . SM"

Surrender Charge Example 1: Assume a male insured purchases the Policy at issue age 35 for $100,000 of specified amount, paying the guideline premium of $1,007, and an additional premium amount of $493 in excess of the guideline premium, for a total premium of $1,500 per year for four years ($6,000 total for four years), and then surrenders the Policy. The surrender charge would be calculated as follows:

(a)
Deferred issue charge : ($5.00/$1,000 of initial specified amount)
  
    
 
(100 x $5.00)
 
=
$      500.00
       
(b)
Deferred sales charge (I + ii):
   
 
( i )26.5% of guideline premium paid ( 26.5% x $1,007 ) , plus
=
$266.86
       
 
( ii )4.2% of premiums paid in excess of guideline premium   ( 4.2% x $4,993 )
=
$209.71
       
(c)
Applicable surrender charge percentage
=
  100%
       
 
Surrender charge = ((a) + (b)) x (c)
 
   
 
=((a) $500.00 + (b) $266.86 + $209.71)) x (c)100%
   
 
=($500.00 + 476.57) x 100%
=
$     976.57

Surrender Charge Example 2: Assume the same facts as in Example 1, including continued premium payments of $1,500 per year except the owner surrenders the Policy on the 14th Policy anniversary:

(a)
Deferred issue charge: ( 100 x  $5.00 )
=
$500.00
       
(b)
Deferred sales charge (I + ii) :
    
 
( i )   ( 26.5% x  $1,007 ) , plus
=
$266.86
       
       
 
( ii ) ( 4.2% x  $19,993 )
=
$839.71

 
 
 


       
(c)
Applicable surrender charge percentage
=
     2 0%
       
 
Surrender charge = ((a) + (b)) x (c)
   
 
=((a) $500.00 + (b) $266.86 + $839.71)) x (c) 20%
   
 
=($500.00 + 1,106.57) x 20%
=
$321.31

Additional Surrender Charge on Increases in Specified Amount. If you increase the specified amount and you surrender your Policy, we will deduct an additional surrender charge for the 15 Policy years following each increase. This charge is equal to:

●
$5.00 multiplied by each $1,000 of the specified amount increase; multiplied by
●
The applicable surrender charge shown in your Policy, with Policy years commencing on the date of each increase.
 

 
 
The surrender charge helps us recover distribution expenses that we incur in connection with the Policy, including registered representative sales commissions and printing and advertising costs.
 
 
Transfer Charge
 
We currently allow you to make 12 transfers each year free from charge. Except as listed below, we may charge $10 for each additional transfer.
●
For purposes of assessing the transfer charge, all transfers made in one day, regardless of the number of subaccounts affected by the transfer, is considered a single transfer.
●
We deduct the transfer charge from the amount being transferred.
●
Transfers resulting from loans or the exercise of conversion rights currently are not treated as transfers for the purpose of assessing this charge.
●
Transfers via the Internet are not treated as transfers for the purpose of assessing this charge.
●
Transfers  among  the ProFunds or Access Trust subaccounts are not treated as transfers for the purpose of assessing this charge.
●
Transfers under dollar cost averaging and asset rebalancing currently are not treated as transfers for the purpose of assessing this charge.
●
We will not increase this charge.
 
Loan Interest Rate Charged
 
We charge you an annual interest rate on a Policy loan of 5.2% in advance (5.49% effective annual interest rate after rounding) on each Policy anniversary.  We also currently credit the amount in the loan reserve account with an effective annual interest rate of 4.75% (4.0% minimum guaranteed).  After offsetting the 4.75% interest we credit, the net cost of loans currently is 0.74% annually after rounding (1.49% maximum guaranteed).  After the 10th Policy year, we apply preferred loan rates on an amount equal to the cash value; minus total premiums paid (less any cash withdrawals); and minus any outstanding loan amount. The current preferred loan interest rate credited is 5.49% effective annually, after rounding, and is not guaranteed.

For Policies issued before May 1, 1994, we charge you an annual interest rate of 7.4%.  For the following states, the annual interest rate on a Policy loan is 7.4% for all Policies issued before, and 5.2% for all Policies issued on or after the dates indicated:  Idaho – May 24, 1994; Montana – May 20, 1994; Rhode Island – May 19, 1994; Oregon – June 27, 1994; Minnesota – December 28, 1994; and Vermont – February 21, 1996; Puerto Rico – April 18, 1997; New Jersey – April 13, 1995; Washington, DC – November 23, 1998; and Guam – February 11, 1998.

 
Cash Withdrawal Charge
 
 
After the first Policy year, you may take one cash withdrawal per Policy year if your surrender value is sufficient to cover the amount of the withdrawal and the associated cash withdrawal charge.  Cash withdrawals from your Policy are subject to the following:
 
   
●
When you take a cash withdrawal, we charge a processing fee of $25 or 2% of the amount you withdraw, whichever is less.
●
We deduct this amount from the withdrawal, and we pay you the balance.
●
We will not increase this charge.
 

 

 
 
 


 
Taxes
 
We currently do not make any deductions for taxes from the separate account. We may do so in the future to the extent that such taxes are imposed by federal or state agencies.
 
Rider Charges
 
 
The following charges apply if you elect any of the riders available under your Policy as noted below (see “Supplemental Benefits (Riders)” ):
 
●
Terminal Illness Accelerated Death Benefit Rider.   W e do not assess an administrative charge for this rider; however, if the rider is exercised, we do reduce the single sum benefit by a discount factor to compensate us for  income lost due to the early payment of the death benefit. The discount rate is equal to the applicable Federal Interest Rate ( 2.89% in 201 2 ) or the policy loan rate expressed in arrears, whichever is greater.
●
Primary Insured Rider (“PIR”) and Primary Insured Rider Plus (“PIR Plus”). We assess a cost of insurance charge based on the insured’s issue age, gender, underwriting class, Policy year and the rider face amount . Cost of insurance charges generally will increase each year with the age of the insured.
●
Other Insured Rider.  We assess a cost of insurance charge based on each other insured’s issue age, gender, underwriting class, Policy year and the rider face amount . Cost of insurance charges generally will increase each year with the age of the insured.
●
Children’s Insurance Rider.  We assess a cost of insurance charge based on the rider face amount regardless of the number of children insured.
●
Accidental Death Benefit Rider.  We assess a cost of insurance charge based on the insured’s attained age and rider face amount .  Cost of insurance charges generally will increase each year with the age of the insured.
●
Disability Waiver Rider. We assess a rider charge based on the primary insured’s issue age, gender and net amount at risk for the Policy, as well as a charge based on those riders that would be eligible to have monthly deductions waived.
●
Disability Waiver and Income Rider. The charge for this rider is based on the primary insured’s issue age, gender and the amount of monthly waiver of premium benefit that would be paid in the event of total disability, as defined in the rider.

Portfolio Expenses

The portfolios deduct management fees and expenses from the amounts you have invested in the portfolios. These fees and expenses reduce the value of your portfolio shares. Some portfolios also deduct 12b-1 fees from portfolio assets. Please see the fund prospectuses for more detailed information about the portfolios.
 
Revenue We Receive
 
 
We (and our affiliates) may directly or indirectly receive payments from the portfolios, their advisers, sub-advisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other services we (and our affiliates) provide and expenses we incur.  We (and/or our affiliates) generally receive three 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 receives some or all of the 12b-1 fees from the funds available as investment choices under our variable insurance policies.   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 0.35% 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 (“Service Fees”).  The investment adviser, sub-adviser, administrators, and/or distributors (or affiliates thereof) of the 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 sub-adviser realizes on the advisory fee deducted from portfolio assets.  The amount of this compensation we or our affiliates receive is generally based on a percentage of the assets of the particular portfolios attributable to the Policy and to certain other variable insurance products that our affiliates and we issue. These percentages differ and may be significant.  Some advisers or sub-advisers (or other affiliates) pay us more than others.



 
 
 


The chart below provides the maximum combined percentages of 12b-1 fees and Service Fees that we anticipate will be paid to us on an annual basis:



Incoming Payments to Western Reserve and TCI
Fund
Maximum Fee
% of assets*
Fund
Maximum Fee
% of assets*
Transamerica Series Trust **
--
Fidelity Variable Insurance Products Funds
 
0. 35 %***
ProFunds
0.50%
Access One Trust
0.50%
Alliance Bernstein
0.25%
Franklin Templeton
0.35%
*Payments are based on a percentage of the average assets of each fund portfolio owned by the subaccounts that are available under this Policy and under certain other variable insurance products offered by our affiliates and us.  We and 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.
**Because the Transamerica Series Trust is managed by an affiliate, there are additional benefits to us and our affiliates for amounts you allocate to the Transamerica Series Trust portfolios, in terms of our and our affiliates’ overall profitability.  During 201 1, we received $ 10.8 million in benefits from Transamerica Asset.
***We receive this percentage once $100 million in fund shares are held by the subaccounts of Western Reserve and its affiliates.

Other payments.  We and our affiliates, including TCI and Transamerica Financial Advisors, Inc. (“TFA ”   also directly or indirectly receive additional amounts or different percentages of assets under management from certain advisers and sub-advisers to the portfolios (or their affiliates) with regard to variable insurance products or mutual funds that are issued or managed by us and our affiliates.  These payments may be derived in whole or in part, from the profits the investment adviser or sub-adviser receives from the advisory fee deducted from portfolio assets.  Policyowners, through their indirect investment in the portfolios, bear the costs of those advisory fees (see the prospectuses for the funds for more information).  Certain advisers and sub-advisers of the underlying portfolios (or their affiliates) (1) may pay TCI amounts up to $75,000 per year to participate in a “preferred sponsor” program that provides such advisers and sub-advisers with access to TCI’s wholesalers at TCI’s national and regional sales conferences that are attended by TCI’s wholesalers; (2) may pay TFA varying amounts to obtain access to TFA’s wholesaling and selling representatives; (3) 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 portfolios and to assist with their promotional efforts; and (4) may reimburse our affiliated selling firms for exhibit booths and other items at national conferences of selling representatives. The amounts may be significant and these arrangements provide the adviser or sub-adviser (or other affiliates) with increased access to us and to our affiliates involved in the distribution of the Policy.

For the calendar year ended December 31, 2011, TCI received total revenue sharing payments in the amount of $3,368,635.55 from the following fund managers and/or sub-advisers to participate in TCI’s events: AEGON USA Investment Management, Inc., AllianceBernstein Investments, Black Rock Investment Management, Fidelity Investments, Franklin Templeton Investments, GE Asset Management, Hanlon Investment Management Inc., ING Clarion Real Estate Securities, Invesco AIM, Janus Capital, Jennison Associates, JP Morgan Investment Management, Logan Circle Investment Partners, Loomis, Sayles & Company, MFS Investment Management, Madison Asset Management, LLC, Morgan Stanley Investment Management, Neuberger Berman Management, OppenheimerFunds, Pacific Investment Management Company, Schroder Investment Management North America, Systematic Financial Management LP, Thompson, Siegel and Walmsley LLC, Vanguard, and Wellington Management Company.

Please Note: Some of the aforementioned managers and/or sub-advisers may not be associated with underlying fund portfolios currently available in this product.
 
Proceeds from certain of these payments by the funds, the advisers, the sub-advisers and/or their affiliates may be profit to us, and may be used for any corporate purpose, including payment of expenses (i) that we and our affiliates incur in promoting, issuing, marketing and administering the Policies; and (ii) that we incur, in our role as intermediary, in promoting, marketing and administering the fund portfolios.

For further details about the compensation payments we make in connection with the sale of the Policies, see "Sale of the Policies" in this prospectus.

 
 
 



The Policy                                                                                                                                          

The Policy is subject to the insurance laws and regulations of each state or jurisdiction in which it is available for distribution.  There may be differences between the Policy issued and the general Policy description contained in this prospectus because of requirements of the state where your Policy is issued.  Some of the state specific differences are included in the prospectus, but this prospectus does not include references to all state specific differences.  All state specific Policy features will be described in your Policy.
 
Ownership Rights
 
The Policy belongs to the owner named in the application. The owner may exercise all of the rights and options described in the Policy. The owner is the insured unless the application specifies a different person as the insured. If the owner dies before the insured and no contingent owner is named, then ownership of the Policy will pass to the owner's estate.

The principal rights an owner may exercise are:
 

 
●
To designate or change beneficiaries before the death of the insured.
●
To receive amounts payable before the death of the insured.
●
To assign the Policy (if you assign the Policy, your rights and the rights of anyone who is to receive payment under the Policy are subject to the terms of that assignment).
●
To change the owner of this Policy.
●
To change the specified amount or death benefit option of this Policy.

No designation or change in designation of an owner will take effect unless we receive (i) a transfer of ownership form or (ii) an Internal Revenue Service Form W-9 along with a written request to designate or change the designation of an owner.   The request will take effect as of the date we receive it, in good order, at our mailing address, or by fax at our administrative office (1-727-299-1620), subject to payment or other action taken by us before it was received.
 
Modifying the Policy
 
Any modifications or waiver of any rights or requirements under the Policy must be in writing, in good order, and signed by our president or secretary.  No registered representative may bind us by making any promise not contained in this Policy.
 

 
Upon notice to you, we may modify the Policy:

●
To make the Policy or the separate account comply with any law or regulation issued by a governmental agency to which we are subject; or
●
To assure continued qualification of the Policy as a life insurance contract under the Internal Revenue Code or to meet applicable requirements of federal or state laws relating to variable life policies; or
●
To reflect a change in the operation of the separate account; or
●
To provide additional subaccounts and/or fixed account options.
 
Purchasing a Policy
  (NOTE: This Policy is no longer available for new sales)
 
To purchase a Policy, you must submit a completed application, in good order, and an initial premium to us through any licensed life insurance agent who is also a registered representative of a broker-dealer having a selling agreement with TCI, the principal underwriter for the Policy, and us.

There may be delays in our receipt and processing of applications and premium payments that are outside of our control – for example, because of the failure of a selling broker-dealer or registered representative to promptly forward the application to us at our mailing address, or because of delays in determining whether the Policy is suitable for you.  Any such delays will affect when your Policy can be issued.

 
 
 



You select the specified amount of insurance coverage for your Policy within the following limits. Our current minimum specified amount for a Policy for issue ages 0-45 is generally $50,000.  It declines to $25,000 for issue ages 46-75.

We will generally only issue a Policy to you if you provide sufficient evidence that the insured meets our insurability standards. Your application is subject to our underwriting rules, and we may reject any application for any reason permitted by law. We will not issue a Policy to you if the insured is over age 75. The insured must be insurable and acceptable to us under our underwriting rules on the later of:

●
The date of your application; or
●
The date the insured completes all of the medical tests and examinations that we require.
 
Tax-Free "Section 1035" Exchanges
 
You can generally exchange one life insurance policy for another policy covering the same insured in a "tax-free exchange" under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both life insurance policies carefully. Remember that if you exchange another life insurance policy for the one described in this prospectus, you might have to pay a surrender charge on your old policy, other charges may be higher (or lower) and the benefits may be different. If the exchange does not qualify for Section 1035 treatment, or if your current policy is subject to a policy loan, you may also have to pay federal income tax on the exchange. You should not exchange another life insurance policy 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 selling you the Policy (that person will generally earn a commission if you buy this Policy through an exchange or otherwise).

 
Group or Sponsored Policies
 
We issue a different Policy for group or sponsored arrangements (“Group/Sponsored Policies”). Under Group/Sponsored Policies, a trustee or employer purchases individual policies covering a group of individuals on a group basis (e.g., section 401 employer-sponsored benefit plans and deferred compensation plans). A sponsored arrangement is where an employer permits a group solicitation of Policies to its employees or an association permits a group solicitation of Policies to its members.

We have certain criteria to issue Group/Sponsored Policies. Generally, a group or sponsored arrangement must be a specific size and must have been in operation for a number of years. We may reduce certain charges, such as premium expense charges, surrender charge, limits on minimum premium and minimum specified amount, or monthly Policy charge, for these Policies. In some cases, we currently waive the monthly Policy charge and reduce the surrender charge. The amount of the reduction and the criteria for Group/Sponsored Policies will reflect the reduced sales effort resulting from these sales. Groups or sponsored arrangements which have been set up solely to purchase Group/Sponsored Policies or which have been in existence for less than six months will not qualify.  Group/Sponsored Policies may not be available in all states. Group/Sponsored Policies may be subject to special tax rules and consequences and other legal restrictions.

Insurance policies where the benefits vary based on gender may not be used to fund certain employer-sponsored benefit plans and fringe benefit programs. Employers should consult tax attorneys before proposing to offer Group/Sponsored Policies.

Associate Policies
 

We offer an Associate Policy to certain employees, field associates, directors and their relatives. An Associate Policy may have reduced or waived premium expense charges, surrender charges, cost of insurance rates, limits on minimum premium and minimum specified amount, or monthly Policy charge. The Associate Policy is available to:
 

 
●
Our current and retired directors, officers, full-time employees and registered representatives, and those of our affiliates; current and retired directors, officers, full-time employees and registered representatives of TCI and any broker-dealer with which they have a sales agreement;
●
Any trust, pension, profit-sharing or other employee benefit plan of the foregoing persons or entities;
●
Current and retired directors, officers, and full-time employees of the Transamerica Series Trust, the Transamerica Funds, and any investment adviser or sub-adviser thereto; and
●
Any immediate family member of the above.


 
 
 



 
 
We may modify or terminate this arrangement. Associate Policies may not be available in all states.
 
 

 
WRL Protector Plus ProgramS M
 

A WRL Protector Plus ProgramSM Policy differs from a standard Policy in the following ways:
 

●
T he initial premium must be at least $10,000, and at least 90% of the maximum allowable premium;
●
O ur administrative and distribution expenses are lower, so we do not assess any premium expense charges;
●
T he underwriting process is shorter and simpler;
●
T he cost of insurance charges may be different;
●
M ost WRL Protector Plus ProgramSM Policies will be treated as modified endowment contracts; and
●
F or Policies issued on and after May 1, 1996, the surrender charge percentage applies for a shorter time (see below).
 
Surrender Charge Percentage

End of Policy Year*
Percentage
At Issue
100%
1-5
100%
6
80%
7
60%
8
40%
9
0
 
* The percentage on any date other than a Policy anniversary will be determined proportionately
   using the percentage at the end of the Policy year prior to surrender and the percentage at the end
   of the Policy year of surrender.

The minimum possible specified amount at issue is the amount that a $10,000 premium will purchase based on the insured’s age, gender and underwriting class, and certain federal tax law guidelines. For a larger premium there will be a larger minimum specified amount. The maximum specified amount depends on the size of the initial premium payment, and is approximately 111% of the lowest possible specified amount for that premium. Due to federal tax laws, the amount of additional premium payments you make may be limited. There are no planned periodic premiums.
 
When Insurance Coverage Takes Effect
 
Insurance coverage under the Policy will take effect only if all of the following conditions have been met: (1) the first full premium must be received by the Company at our mailing address; (2) during the lifetime of every proposed insured, the proposed owner must have personally received and accepted the Policy which was applied for and all answers on the application must be true and correct on the date such Policy is received and accepted; and (3) on the date of the later of either (1) or (2) above, all of the statements and answers given in the application must be true and complete, and there must have been no change in the insurability of any proposed insured.

Conditional Insurance Coverage. If you pay the full initial premium and have met all of the requirements listed in the conditional receipt attached to the application, and we deliver the conditional receipt to you, the insured may have conditional insurance coverage under the terms of the conditional receipt. The conditional insurance coverage may vary by state and/or underwriting standards.  Because we do not accept initial premiums in advance for Policies with a specified amount in excess of $1,000,000, we do not offer conditional insurance coverage for Policies issued with a specified amount in excess of $1,000,000. Conditional insurance coverage is void if the check or draft you gave us to pay the initial premium is not honored when we first present it for payment.

The aggregate amount of conditional insurance coverage, if any, is the lesser of:
●
The amounts applied for under all conditional receipts issued by us; or
 
●
$500,000 of life insurance.
     
Subject to the conditions and limitations of the conditional receipt, conditional insurance under the terms of the Policy applied for may become effective as of the later of:
●
The date of application; or
●
The date of the last medical examination, test, and other screenings required by us, if any (the “Effective Date”).  Such conditional insurance will take effect as of the Effective Date, so long as all of the following requirements are met:


 
 
 



   1.  The person proposed to be insured is found to have been insurable as of the Effective Date, exactly as applied for in accordance with our underwriting rules and standards, without any modifications as to plan, amount, or premium rate.
    2. As of the Effective Date, all statements and answers given in the application must be true.
    3. The payment made with the application must not be less than the full initial premium for the mode of payment chosen in the application and must be received at our mailing address within the lifetime of the proposed insured.
    4. All medical examinations, tests, and other screenings required of the proposed insured by us are completed and the results received at our mailing address within 60 days of the date the application was signed.
    5. All parts of the application, any supplemental application, questionnaires, addendum and/or amendment to the application are signed and received at our mailing address.
     
Any conditional life insurance coverage terminates on the earliest of:
a.
60 days from the date the application was signed.
b.
The date we either mail notice to the applicant of the rejection of the application and/or mail a refund of any amounts paid with the application.
 
c.
When the insurance applied for goes into effect under the terms of the Policy that you applied for ; or
 
d.
The date we offer to provide insurance on terms that differ from the insurance for which you have applied.
     
Special limitations of the conditional receipt:
●
The conditional receipt is not valid unless:
   
>
All blanks in the conditional receipt are completed ; and
   
>
The receipt is signed by your registered representative or authorized Company representative.
     
Other limitations:
●
There is no conditional receipt coverage for riders or any additional benefits, if any, for which you may have applied.
 
●
If one or more of the receipt’s conditions have not been met exactly, or if a proposed insured dies by suicide, we will not be liable except to return any payment made with the application.
 
●
If we do not approve and accept the application within 60 days of the date you signed the application, the application will be deemed to be rejected by us and there will be no conditional insurance coverage.  In that case, Western Reserve’s liability will be limited to returning any payment(s) you have made upon return of this receipt to us.

Full Insurance Coverage and Allocation of Initial Premium. Once we determine that the insured meets our underwriting requirements and you have paid the initial premium, full insurance coverage will begin and we will begin to take the monthly deductions from your net premium. This date is the Policy date (or the record date if Policy is backdated.)  Any premium payments we receive before the Policy date (or record date, if applicable) will be held in a non-interest bearing suspense account.  On the Policy date (or on the record date if your Policy is backdated), the entire amount in the non-interest bearing suspense account will be allocated to the subaccounts and/or the fixed account as you specified in your application.  Please Note: Your premiums are credited on the record date, not the backdated Policy date.

 
 
 




On any day we credit net premiums or transfer cash value to a subaccount, we will convert the dollar amount of the net premium (or transfer) into subaccount units at the unit value for that subaccount, determined at the end of the day on which we receive the premium or transaction request .   We will credit amounts to the subaccounts only on a valuation date, that is, on a date that the New York Stock Exchange ("NYSE") is open for trading.
 
 

 
Transaction Type:
Priced when received at our:
payment by check
mailing address, unless other address appears on your billing coupon
transfer request
administrative office
payment by wire transfer
administrative office
electronic transactions (e.g., payments through direct deposit, debit transfers, and forms of e-commerce payments
administrative office



 
Backdating a Policy
 
If you request, we may backdate a Policy by assigning a Policy date earlier than the date full insurance coverage begins. However, in no event will we backdate a Policy earlier than the earliest date allowed by state law or by our underwriting rules. Your request must be in writing and, if we approve the request, will amend your application. Your premiums, however, will be credited on the date the Policy is issued, not the backdated Policy date.
 
Cost of insurance charges are based in part on the age of the insured on the Policy date or on the date of a requested increase in specified amount. Generally, cost of insurance charges are lower at a younger age. We will deduct the monthly deductions, including cost of insurance charges, for the period that the Policy is backdated. This means that while the monthly deductions may be lower than what would have been charged had we not backdated the Policy, you will be paying for insurance during a period when the Policy was not in force.

PREMIUMS 
 
Allocating Premiums
 
You must instruct us on how to allocate your net premium among the subaccounts and the fixed account. The fixed account may not be available in all states to direct or transfer money into. You must follow these guidelines:

●
Allocation percentages must be in whole numbers.
●
If you select dollar cost averaging, we may require you to have a minimum of $10,000 in each subaccount from which we will make transfers and you may be required to transfer at least a total of $1,000 ($500 for New Jersey residents) monthly.
●
If you select asset rebalancing, the cash value of your Policy, if an existing Policy, or your minimum initial premium, if a new Policy, must be at least $10,000.

Currently, you may change the allocation instructions for additional premium payments without charge at any time by writing us at our mailing address or calling us at our administrative office at 1-800-851-9777, Monday – Friday, between the hours of 8:30 a.m. - 7:00 p.m. Eastern Time . You may also change allocations through our website at www.westernreserve.com.

Please Note: Certain subaccounts have similar names. When providing your allocation instructions, please state or write the full name of the subaccount that you select for your allocation to ensure that those allocation instructions are in good order. The change will be effective as of the valuation date on which we receive the change request, in good order, at our mailing address or our administrative office.  Upon instructions from you, the registered representative or agent of record for your Policy may also change your allocation instructions for you. The minimum amount you can allocate to a particular subaccount is 10% of a net premium payment. We reserve the right to limit the number of premium allocation changes to one per Policy year.

 
 
 



Whenever you direct money into a subaccount, we will credit your Policy with the number of units for that subaccount that can be bought for the dollar payment. Premium payments received at our mailing address or at the address on your billing coupon (for payments made by check) or at our administrative office (for payments made by wire transfer and through electronic credit and debit transactions) before the NYSE closes, are priced using the unit value determined at the closing of the regular business session of the NYSE (usually at 4:00 p.m. Eastern Time ). If we receive a premium payment at our mailing address after the NYSE closes, we will process the order using the subaccount unit value determined at the close of the next regular session of the NYSE. We will credit amounts to the subaccounts only on a valuation date, that is, on a date the NYSE is open for trading.  Your cash value will vary with the investment experience of the subaccounts in which you invest. You bear the investment risk for amounts you allocate to the subaccounts.

You should periodically review how your cash value is allocated among the subaccounts and the fixed account because market conditions and your overall financial objectives may change.
 
Premium Flexibility
 
You generally have flexibility to determine the frequency and the amount of the premiums you pay. Before we issue the Policy to you, we may require you to pay a premium at least equal to a minimum monthly guarantee premium set forth in your Policy. Thereafter (subject to the limitations described below), you may make premium payments at any time and in any amount over $50. Under some circumstances, you may be required to pay extra premiums to prevent a lapse. Your minimum monthly guarantee premium may change if you request a change in your Policy. If this happens, we will notify you of the new minimum monthly guarantee premium.  See "Minimum Monthly Guarantee Premium" below.

Planned Periodic Payments

You will determine a planned periodic payment schedule, which allows you to pay level premiums at fixed intervals over a specified period of time. You are not required to pay premiums according to this schedule. You may change the amount, frequency, and the time period over which you make your planned periodic payments. Please be sure to notify us or your selling firm of any address changes so that we may be able to keep your current address on record.

Even if you make your planned periodic payments on schedule, your Policy still may lapse. The duration of your Policy depends on the Policy's net surrender value. If the net surrender value is not high enough to pay the monthly deductions when due (and your no lapse period has expired) then your Policy will lapse (unless you make the payment we specify during the 61-day grace period).

Minimum Monthly Guarantee Premium

The full initial premium is the only premium you are required to pay under the Policy. However, you greatly increase your risk of lapse if you fail to regularly pay premiums at least as large as the current minimum monthly guarantee premium.

Until the no lapse date shown on your Policy schedule page, or as described in the section entitled   “ Extension of No Lapse Period Guarantee” we guarantee that your Policy will not lapse, so long as on any Monthiversary you have paid total premiums (minus any cash withdrawals and minus any outstanding loan amount) that equal or exceed the minimum monthly guarantee premium in effect times the number of months since the Policy date up to and including the current month. If you take a cash withdrawal, a loan, or if you increase or decrease your specified amount or if you add, increase or decrease a rider, you may need to pay additional premiums in order to keep the no lapse period guarantee in effect.

The initial minimum monthly guarantee premium is shown on your Policy's schedule page, and depends on a number of factors, including the age, gender, underwriting class of the insured, and the specified amount requested. We will adjust the minimum monthly guarantee premium if you change death benefit options, decrease the specified amount, or if any of the riders are added, or if in force riders are increased or decreased. We will notify you of the new minimum monthly guarantee premium. We also reserve the right to require, before we issue a Policy, that the initial premium plus the planned premium payable during the no lapse period is at least equal to the cumulative minimum monthly guarantee premiums during the no lapse period.

 
 
 




No Lapse Period

Until the no lapse date shown on your Policy schedule page, or in the section entitled “Extension of No Lapse Period Guarantee”   your Policy will remain in force and no grace period will begin, even if your net surrender value is too low to pay the monthly deductions, as long as:

●
You have not increased your specified amount.
●
You have not added any riders.
●
The total amount of the premiums you paid (minus any cash withdrawals, minus any outstanding loan amount) equals or exceeds:
 
>
The minimum monthly guarantee premium in effect times the number of months since the Policy date up to and including the current month.

After the no lapse period ends, paying the current minimum monthly guarantee premium each month will not necessarily keep your Policy in force. You may need to pay additional premiums to keep the Policy in force.

Premium Limitations

We may require premium payments to be at least $50 ($1,000 if by wire). We may return premiums less than the minimum.  We will not allow you to make any premium payments that would cause the total amount of the premiums you pay to exceed the current maximum premium limitations, if applicable, by which the Policy qualifies as life insurance under federal tax laws.  (See “Death Benefit” for more information regarding the guideline premium test.)

This maximum is set forth in your Policy. If you make a payment that would cause your total premiums to be greater than the maximum premium limitations, we will return the excess portion of the premium payment, within 6 0 days after the end of the Policy year . In addition, we reserve the right to refund a premium if the premium would increase the death benefit by more than the amount of the premium.  We will not accept a payment that will cause the Policy to become a modified endowment contract without your consent.

Making Premium Payments

We will deduct certain charges from your premium payments.  If you wish to make premium payments by wire transfer, you should contact our administrative office at 1-800-851-9777 for instructions on wiring federal funds to us.

Tax-Free Exchanges ("1035 Exchanges"). W e will accept a part of or all of your initial premium from one or more contracts insuring the same insured that qualify for tax-free exchanges under Section 1035 of the Internal Revenue Code. If you contemplate such an exchange, you should consult a competent tax advisor to learn the potential tax effects of such a transaction.

Subject to our underwriting requirements, we will permit you to make one additional cash payment within three business days of receipt at our administrative office of the proceeds from the 1035 Exchange before we finalize your Policy's specified amount.

Please Note:  We may hold premium payments in a non-interest bearing account for up to 14 days if applying the premium payment would cause the Policy to violate Internal Revenue Code Section 7702 or other provisions of the Internal Revenue Code. Please refer to the section of this prospectus entitled “Federal Income Tax Considerations” for more information regarding tax considerations regarding your Policy or consult a qualified tax advisor.

 
 
 



Transfers 
 
General
 
You or your registered representative of record may make transfers among the subaccounts or from the subaccounts to the fixed account. You will be bound by any transfers made by your authorized registered representative.  We determine the amount you have available for transfers at the end of the valuation period when we receive your transfer request. We may, at any time, discontinue transfer privileges, modify our procedures, or limit the number of transfers we permit.

The following features apply to transfers under the Policy:
 

 
●
Your Policy may be limited to a cumulative transfer from the fixed account each Policy year of the greater of 25% of the amount in the fixed account, or the amount transferred out the previous Policy year.  However, the transfer may not be greater than the unloaned portion of the fixed account on that date.
·
Currently we do not, but reserve the right to, limit the number of transfers out of the fixed account to one per Policy year.  If we modify or stop our current practice, we will notify you at the time of your transfer.
●
You may request transfers in writing to our mailing address (in a form we accept), by fax or by telephone to our administrative office, or electronically through our website (www.westernreserve.com). Please note: Certain subaccounts have similar names. It is important that you state or write the full name of the subaccount when making a transfer request to ensure that any transfer request that you make is in good order.
●
There is no minimum amount that must be transferred.
●
There is no minimum amount that must remain in a subaccount after a transfer.
●
Except as listed below, we may deduct a $10 charge from the amount transferred for each transfer in excess of 12 transfers in a Policy year.
●
We consider all transfers made in any one day to be a single transfer.
●
Transfers resulting from loans or the exercise of conversion rights currently are not treated as transfers for the purpose of the transfer charge.
●
Transfers via the Internet are not treated as transfers for purpose of assessing the transfer charge.
●
Transfers among the ProFunds and/or Access Trust subaccounts are not treated  as transfers for the purpose of assessing the transfer charge.
●
Transfers under dollar cost averaging and asset rebalancing currently are not treated as transfers for the purpose of assessing the transfer charge.
   
We will process any transfer order that is received in good order, and in writing, at our mailing address, or by fax or by telephone at our administrative office, before the NYSE closes (usually 4:00 p.m. Eastern Time ) using the subaccount unit value determined at the end of that session of the NYSE. If we receive the transfer order  after the NYSE closes, we will process the order using the subaccount unit value determined at the close of the next regular business session of the NYSE.
 
Disruptive Trading and Market Timing
 
The market timing policy and the related procedures (discussed below) do not apply to the ProFunds or Access Trust subaccounts because the corresponding portfolios are specifically designed to accommodate frequent transfer activity.  If you invest in the ProFunds or Access Trust 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 Policy was not designed for the use of market timers or frequent or disruptive traders.  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 policyowners (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.
 
(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.
(3)
Increased brokerage and administrative expenses.

           These costs are borne by all policyowners 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 other potentially disruptive or harmful trading. As discussed herein, we cannot detect or deter all market timing or other potentially disruptive trading.  Do not invest with us if you intend to conduct market timing or potentially disruptive trading.

           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 from marketing 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 policyowners (or 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 standard United States Postal Service First Class 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.  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 policyowners 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. Please note: If you engage a third party investment advisor for asset allocation services then you may be subject to the transfer restrictions because of the actions of your investment advisor in providing those services.

In addition, transfers for multiple policies invested in the Transamerica Series Trust underlying fund portfolios which are submitted together may 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 to any one underlying fund portfolio (a smaller amount may apply to smaller portfolios).  Please note that transfers of less than one million dollars may be disruptive in some circumstances and this general amount may change quickly.

 
 
 




           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.
●
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 defensive transfer restriction (e.g., expressly limiting the number of trades within a given period or 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 defensive transfer restriction).  As noted above, we do not impose a defensive 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:  The limits and restrictions described herein are subject to our ability to monitor transfer activity. Our ability to detect market timing or other disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies employed by policyowners (or those acting on their behalf) to avoid detection.  As a result, despite our efforts to prevent harmful trading activity among the variable investment options available under this variable insurance product, there is no assurance that we will be able to detect or deter market timing or disruptive trading frequent or harmful transfers by such policyowners 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 which 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 market timing or other harmful trading that may adversely affect other policyowners, 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 options under the variable insurance product.  In addition, we may not honor transfer requests if any variable investment option 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 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 policies to discourage market timing and disruptive trading.  Policyowners should be aware that we may not have the contractual ability or the operational capacity to monitor policyowners’ transfer requests and apply the frequent trading policies and procedures of the respective underlying funds that would be affected by the transfers.  Accordingly, policyowners 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 and disruptive trading in certain subaccounts.

 
 
 



You should be aware that, as required by SEC regulation, we have entered into a written agreement with each underlying fund or principal underwriter that obligates us to provide the fund, upon written request, with information about you and your trading activities in the fund's portfolios.  In addition, we are obligated to execute instructions from the funds that may require us to restrict or prohibit your investment in a specific portfolio if the fund identifies you as violating the frequent trading policies that the fund has established for that portfolio.

If we receive a premium payment from you that you allocate into a fund that has directed us to restrict or prohibit your trades into the fund, then we will request new allocation instructions from you.  If we receive from you a transfer request into a fund that has directed us to restrict or prohibit your trades, then we will not effect the transfer.

Omnibus Order.  Policyowners 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 options 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 other programmed, large, frequent, or short-term transfers, the underlying fund portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing your request.

ProFunds and Access Trust Subaccounts.  Because the above restrictions do not apply to the ProFunds or Access Trust 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).
 
Telephone, Fax, and Online Privileges
 
Telephone transfer privileges will automatically apply to your Policy unless you provide other instructions. The telephone transfer privileges allow you to give authority to the registered representative or agent of record for your Policy to make telephone transfers and to change the allocation of future payments among the subaccounts and the fixed account on your behalf according to your instructions. To make a telephone transfer, you may call us at our administrative office at 1-800-851-9777, Monday – Friday, between the hour of 8:30 a.m. - 7:00 p.m. Eastern Time , or fax your instructions to our subaccount transfer fax number, 1-727-299-1648, (for all other fax requests, please use 1-727-299-1620).  You may also request transfers electronically through our website, www.westernreserve.com. Please note: Certain subaccounts have similar names. When providing your allocation instructions, please state or write the full name of the subaccount that you have selected for your allocation to ensure that those allocation instructions are in good order.

Please note the following regarding telephone, Internet or fax transfers:

●
We will employ reasonable procedures to confirm that telephone instructions are genuine.
●
If we follow these procedures, we are not liable for any loss, damage, cost or expense from complying with telephone instructions we reasonably believe to be authentic. You bear the risk of any such loss.
●
If we do not employ reasonable confirmation procedures, we may be liable for losses due to unauthorized or fraudulent instructions.
●
Such procedures may include requiring forms of personal identification prior to acting upon telephone instructions, providing written confirmation of transactions to owners, and/or tape recording telephone instructions received from owners.
●
We may also require written confirmation of your order.
●
If you do not want the ability to make telephone transfers, you should notify us in writing at our mailing address or through our fax number (1-727-299-1648).
●
We will not be responsible for same-day processing of transfers if the transfer order is faxed to a number other than 1-727-299-1648 or 1-727-299-1620.
●
We will not be responsible for any transmittal problems when you fax us your order unless you report it to us within five business days and send us proof of your fax transmittal. We may discontinue this option at any time.


 
 
 



We cannot guarantee that telephone, Internet and faxed transactions will always be available. For example, our offices may be closed during severe weather emergencies or there may be interruptions in telephone or fax service beyond our control. If the volume of calls is unusually high, we might not have someone immediately available to receive your order at our administrative office. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances.

Similarly, online transactions processed via the Internet may not always be possible. Telephone and computer systems, whether yours, your Internet service provider's, your registered representative's or Western Reserve's, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may prevent or delay our receipt of your request. If you are experiencing problems, you should make your request or inquiry in writing.
You should protect your personal identification number (PIN) and your user ID and password because self-service options will be available to your agent of record and to anyone who provides your identifying information. We will not be able to verify that the person using your PIN on the automated phone line or providing instructions online is you or one authorized by you.
 
Fixed Account Transfers
 
Currently, we do not, but reserve the right to limit the number of transfers out of the fixed account to one per Policy year.  If we change this, we will notify you at the time of your transfer.

Depending on when your Policy was issued,* we reserve the right to limit the maximum amount you may transfer from the fixed account to the greater of:

●
25% of the amount in the fixed account; or
●
The amount you transferred from the fixed account in the immediately preceding Policy year.

 
* If your Policy was issued before September 1, 1994, there is no limit on the amount that you can transfer from the fixed account.  If your Policy was issued on or after September 1, 1994, (in all states that approved this change), you are subject to the transfer limitations set forth above.

This current restriction does not apply if you have selected dollar cost averaging. However, the transfer may not be greater than the unloaned portion of the fixed account on that date.

We reserve the right to require that you make the transfer request in writing and that we receive the written transfer request, in good order, at our administrative office (for telephonic and facsimile transactions) or at our mailing address (for written correspondence), no later than 30 days after a Policy anniversary. We will make the transfer at the end of the valuation date on which we receive the request.

Except when used to pay premiums, we also may defer payment of any amounts from the fixed account for no longer than six months after we receive written notice.

New Jersey: The fixed account is not available to you as an investment option if your Policy was issued in the State of New Jersey. You may not direct or transfer any money to the fixed account.

In the event of a material change in the investment policy of any portfolio, you may transfer all subaccount values to the fixed account without a transfer charge.  We must receive your request to transfer all subaccount values to the fixed account in good order within 60 days after the effective date of the change of investment policy or the date you receive notification of such change, whichever is later.
 
Conversion Rights
 
If, within 24 months of your Policy date, you transfer all of your subaccount values to the fixed account, then we will not charge you a transfer fee, even if applicable. You must make your request in writing and in good order, to our mailing address.

 
 
 



In the event of a material change in the investment policy of any portfolio, you may transfer all subaccount value in that portfolio to the fixed account without a transfer charge.  We must receive your request to transfer the subaccount value to the fixed account, in good order, within 60 days after the effective date of the change of investment policy or the date you receive notification of such change, whichever is later.
 
Dollar Cost Averaging
 
Dollar cost averaging is an investment strategy designed to reduce the average purchase price per unit. The strategy spreads the allocation of your premium into the subaccounts over a period of time. This potentially allows you to reduce the risk of investing most of your premium into the subaccounts at a time when prices are high. The success of this strategy is not assured and depends on market trends. You should consider carefully your financial ability to continue the program over a long enough period of time to purchase units when their value is low as well as when it is high. We make no guarantee that dollar cost averaging will result in a profit or protect you against loss.

Under dollar cost averaging, we automatically transfer a set dollar amount from the Transamerica AEGON Money Market VP subaccount or the  Transamerica JPMorgan Core Bond VP subaccount, or the fixed account, to a subaccount that you choose.  We will make the transfers monthly as of the end of the valuation date after the first Monthiversary after the record date. We will make the first transfer in the month after we receive your request, in good order, at our mailing address or by facsimile, provided that we receive the form by the 25th day of the month. (Note: As stated on the dollar cost averaging form, the date you select cannot be the 29th, 30th or 31st of any month.)

To start dollar cost averaging:
●
You must submit to us , in good order, in writing to our mailing address (or by facsimile to our administrative office) a completed form, signed by the owner requesting dollar cost averaging.
 
●
You may be required to have at least $10,000 in each subaccount or the fixed account from which we will make transfers.
 
●
Your total transfers each month under dollar cost averaging may be limited to a minimum of $1,000 ($500 for New Jersey residents).
 
●
Each month, you may not transfer more than one-tenth of the amount that was in your fixed account at the beginning of dollar cost averaging.

You may request dollar cost averaging at any time. There is no charge for dollar cost averaging.

Dollar cost averaging will terminate if
any of the following occur:
●
We receive, in good order, at our mailing address, (or by facsimile or telephone to our administrative office), a request to discontinue participation from you, your registered representative, or agent of record.
 
●
The value in the accounts from which we make the transfers is depleted.
 
●
You elect to participate in the asset rebalancing program.
 
●
You elect to participate in any asset allocation services provided by a third party.

If you terminate your participation in the dollar cost averaging program, we will stop making dollar cost averaging transfers without a new completed dollar cost averaging request form signed by the owner. We may modify, suspend, or discontinue dollar cost averaging at any time.
 
Asset Rebalancing Program
 
 
We also offer an asset rebalancing program under which you may transfer amounts periodically to maintain a particular percentage allocation among the subaccounts you have selected.  Asset rebalancing is not available with the fixed account.  Cash value allocated to each subaccount will grow or decline in value at different rates. The asset rebalancing program automatically reallocates the cash value in the subaccounts at the end of each period to match your Policy's currently effective premium allocation schedule. Cash value in the fixed account and the dollar cost averaging program is not available for this program. This program does not guarantee gains. A subaccount may still have losses.

 
 
 



You may elect asset rebalancing to occur on a monthly, quarterly, semi-annual or annual basis. Once we receive the asset rebalancing request form, in good order, at our mailing address (or by facsimile at our administrative office) we will change your premium allocation instructions to match your asset rebalancing instructions, and we will implement the asset rebalancing program on the date you indicated.  If you do not indicate a specific date, we will use the date that we receive the form. We will credit the amounts transferred at the unit value next determined on the dates the transfers are made. If a day on which rebalancing would ordinarily occur falls on a day on which the NYSE is closed, rebalancing will occur on the next day that the NYSE is open.

To start asset rebalancing:
●
You must submit to us, in good order, in writing to our mailing address (or by facsimile to our administrative office) a completed asset rebalancing request form signed by the owner before the maturity date .
 
●
You may be required to have a minimum cash value of $10,000 or make a $10,000 initial premium payment.

There is no charge for the asset rebalancing program. (We reserve the right to count such allocations as part of your free transfers in the future.)

Asset rebalancing will cease if:
●
You elect to participate in the dollar cost averaging program.
 
●
We receive, in good order, at our mailing address (or by facsimile or telephone at our administrative office) a request to discontinue participation from you, your registered representative or your agent of record.
 
●
You make any transfer to or from any subaccount other than under a scheduled rebalancing.
 
●
You elect to participate in any asset allocation services provided by a third party.

You may start and stop participation in the asset rebalancing program at any time, but we may restrict your right to re-enter the program to once each Policy year. If you wish to resume the asset rebalancing program, you must complete a new request form. We may modify, suspend, or discontinue the asset rebalancing program at any time.
 
Third Party Asset Allocation Services
 
 
We do not offer any asset allocation programs or any investment models for use with your life insurance policy.  You may authorize and engage your own investment advisor to manage your account.  These investment advisors may be firms or persons who also are appointed by us, or whose affiliated broker-dealers are appointed by us, as authorized sellers of the Policies.  Even if this is the case, however, please note that the investment advisor you engage to provide advice and/or make transfers for you is not acting on our behalf, but rather is acting on your behalf.  We do not offer advice about how to allocate your cash value under any circumstance.  We are not responsible for any recommendations such investment advisors make, any investment models or asset allocation programs they choose to follow, or any specific transfers they make on your behalf.

Any fee that is charged by your investment advisor is in addition to the fees and expenses that apply under your Policy.  We are not a party to the agreement you have with your investment advisor. You will, however, receive confirmations of transactions that affect your Policy.  Note: If you make withdrawals of cash 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 59½.

If your investment advisor has also acted as your insurance agent with respect to the sale of your Policy, he or she may be receiving compensation for services provided both as an insurance agent and investment advisor.  Alternatively, the investment advisor may compensate the registered representative from whom you purchased your Policy for the referral that led you to enter into your investment advisory relationship with the investment advisor.  If you are interested in the details about the compensation that your investment advisor and/or your registered representative  receive in connection with your Policy, you should ask them for more details.

 
 
 



We, or an affiliate of ours, will process the financial transactions placed by your registered representatives or investment advisors.  We reserve the right to discontinue doing so at any time and for any reason.  We may require registered representatives or investment advisors, who are authorized by multiple policyowners to make financial transactions, to enter into an administrative agreement with Western Reserve as a condition of our accepting transactions on your behalf.  The administrative agreement may impose limitations on the registered representative’s or investment advisor’s ability to request financial transactions on your behalf.  These limitations, which are discussed in the section entitled “Transfers - Disruptive Trading and Market Timing,” are intended to (i) minimize the detrimental impact of an investment professional who is in a position to transfer large amounts of money for multiple clients in a particular portfolio or type of portfolio or (ii) are intended to comply with specific restrictions or limitations imposed by a portfolio(s) of Western Reserve.

Please                       Note:  Limitations that we may impose on your registered representative or investment advisor under the terms of the administrative agreement do not apply to financial transactions requested by an owner on their own behalf, except as otherwise described in this prospectus.   Any third party asset allocation service may be terminated at any time by the owner or by the Third Party Service by sending written instruction to our mailing address.

 

P olicy   Values          
 
Cash Value
 
The cash value in your Policy:
 
●
Is determined on the Policy date and on each valuation date.
 
●
Equals the sum of all values in each subaccount and the fixed account, including any amounts held in the loan reserve account (part of the fixed account) to secure any outstanding Policy loan.
 
·
Serves as the starting point for calculating values under a Policy.
 
●
Varies from day to day, depending on the investment experience of the subaccounts you choose, the interest credited to the fixed account, the charges deducted and any other Policy transactions (such as additional premium payments, transfers, withdrawals and Policy loans).
 
●
Has no guaranteed minimum amount and may be more or less than premiums paid.
 

 
Net Surrender Value
 
The net surrender value is the amount we pay when you surrender your Policy while it is in force. We determine the net surrender value at the end of the valuation period when we receive your written surrender request, in good order, at our mailing address.   You may also fax your request to 1-727-299-1620.

Net surrender value on any valuation date equals:
●
The cash value as of such date; minus
 
●
Any surrender charge as of such date; minus
 
●
Any outstanding Policy loan amount(s); plus
 
●
Any interest you paid in advance on the loan(s) for the period between the date of the surrender and the next Policy anniversary.
 
Subaccount Value
 
The cash value in a subaccount is referred to as “subaccount value.” At the end of any valuation period, the subaccount value is equal to the number of units that the Policy has in the subaccount, multiplied by the unit value of that subaccount.

The number of units in any subaccount on any valuation date equals:
●
The initial units purchased at unit value on the record date; plus
 
●
Units purchased with additional net premium(s); plus
 
●
Units purchased via transfers from another subaccount or the fixed account; minus
 
●
Units redeemed to pay for monthly deductions; minus
 
●
Units redeemed to pay for cash withdrawals; minus
 
●
Units redeemed as part of a transfer to another subaccount or the fixed account; minus
 
●
Units redeemed to pay any cash withdrawal charges and any transfer charges.


 
 
 



Every time you allocate, transfer or withdraw money to or from a subaccount, we convert that dollar amount into units. We determine the number of units we credit to, or subtract from, your Policy by dividing the dollar amount of the allocation, transfer or cash withdrawal by the unit value for that subaccount next determined at the end of the valuation period on which the premium allocation, transfer request or cash withdrawal request is received: (i) at our mailing address (for written requests or payments by check); (ii) at our administrative office (for requests by fax or by telephone, or for payments made through electronic credit and debit transactions); or (iii) electronically through our website.
 
Subaccount Unit Value
 
The value (or price) of each subaccount unit will reflect the investment performance of the portfolio in which the subaccount invests. Unit values will vary among subaccounts. The unit value of each subaccount was originally established at $10 per unit. The unit value may increase or decrease from one valuation period to the next.

The unit value of any subaccount at the end of a valuation period is calculated as:
●
The total value of the portfolio shares held in the subaccount, including the value of any dividends or capital gains distribution declared and reinvested by the portfolio during the valuation period. This value is determined by multiplying the number of portfolio shares owned by the subaccount by the portfolio's net asset value per share determined at the end of the valuation period; minus
 
●
A charge equal to the daily net assets of the subaccount multiplied by the daily equivalent of the mortality and expense risk charge; minus
 
●
The accrued amount of reserve for any taxes or other economic burden resulting from applying tax laws that we determine to be properly attributable to the subaccount; and the result divided by
 
●
The number of outstanding units in the subaccount before the purchase or redemption of any units on that date.

The portfolio in which any subaccount invests will determine its net asset value per share once daily, as of the close of the regular business session of the NYSE (usually 4:00 p.m. Eastern Time ) except on customary national holidays on which the NYSE is closed, which coincides with the end of each valuation period.

Fixed Account Value

On the Policy date, the fixed account value is equal to the cash value allocated to the fixed account, less the first monthly deduction out of the fixed account.

The fixed account value at the end of any valuation period is equal to:
●
The sum of net premium(s) allocated to the fixed account; plus
 
●
Any amounts transferred from a subaccount to the fixed account(including amounts transferred to the loan reserve account); plus
 
●
Total interest credited to the fixed account; minus
 
●
Amounts charged to pay for monthly deductions; minus
 
●
Amounts withdrawn or surrendered from the fixed account to pay for cash withdrawals or transfer charges; minus
 
●
Amounts transferred from the fixed account(including amounts transferred to the loan reserve account) to a subaccount; minus
 
●
Amounts withdrawn from the fixed account to pay any transfer charges and any cash withdrawal charges.


 
 
 


Death Benefit 
 
Death Benefit Proceeds
 
Provided that your Policy is in force, we will determine the amount of and pay the death benefit proceeds on an individual Policy upon receipt in good order at our administrative office of satisfactory proof of the insured's death, plus written direction (from each eligible recipient of death benefit proceeds) regarding distribution of the death benefit payment, and any other documents, forms and information we need. We may require the Policy be returned. We will pay the death benefit proceeds to the primary beneficiary(ies), if living, or to a contingent beneficiary. If each beneficiary dies before the insured and there is no contingent beneficiary, we will pay the death benefit proceeds to the owner or the owner's estate. We will pay the death benefit proceeds in a lump sum or under a payment option.

Death benefit proceeds equal:
●
The amount determined based on the death benefit option you select (described below); minus
 
●
Any monthly deductions due during the grace period (if applicable); minus
 
●
Any outstanding loan amount; plus
 
●
Any additional insurance in force provided by rider; plus
 
●
Any interest you paid in advance on the loan(s) for the period between the date of death and the next Policy anniversary.

We may further adjust the amount of the death benefit proceeds if we contest the Policy or if you misstate the insured's age or gender.

Death Benefit

The Policy provides a death benefit. The death benefit is determined at the end of the valuation period in which the insured dies. You must select one of the two death benefit options we offer in your application   No matter which death benefit option you choose, we guarantee that, so long as the Policy does not lapse, the death benefit will never be less than the specified amount on the date of the insured's death , minus any outstanding loan amount including any accrued interest.

Option A

Death benefit equals the greatest of:
●
The specified amount; or
 
●
A specified percentage called the "limitation percentage," multiplied by the cash value on the insured’s date of death; or
 
·
The amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

Under Option A, your death benefit remains level unless the limitation percentage multiplied by the cash value is greater than the specified amount; then the death benefit will vary as the cash value varies.

The limitation percentage is the minimum percentage of cash value we must pay as the death benefit under federal tax requirements. It is based on the attained age of the insured at the beginning of each Policy year. The following table indicates the limitation percentages for different ages:

Attained Age
Limitation Percentage
   
40 and under
250%
41 to 45
250% minus 7% for each age over age 40
46 to 50
215% minus 6% for each age over age 45
51 to 55
185% minus 7% for each age over age 50
56 to 60
150% minus 4% for each age over age 55
61 to 65
130% minus 2% for each age over age 60
66 to 70
120% minus 1% for each age over age 65
71 to 75
115% minus 2% for each age over age 70
76 to 90
105%
91 to 95
105% minus 1% for each age over age 90
96 and older
100%


 
 
 


If the federal tax code requires us to determine the death benefit by reference to these limitation percentages, the Policy is described as "in the corridor." An increase in the cash value will increase our risk, and we will increase the cost of insurance we deduct from the cash value.

Option A Illustration. Assume that the insured's attained age is under 40 and that there are no outstanding loans. Under Option A, a Policy with a $50,000 specified amount will generally pay $50,000 in death benefits. However, because the death benefit must be equal to or be greater than 250% of cash value, any time the cash value of the Policy exceeds $20,000, the death benefit will exceed the $50,000 specified amount.  (The figure $20,000 is derived by solving for cash value in the following calculation: $50,000 = 250% multiplied by cash value.) Each additional dollar added to the cash value above $20,000 will increase the death benefit by $2.50.

Similarly, so long as the cash value exceeds $20,000, each dollar taken out of the cash value will reduce the death benefit of the Policy, not including the rider, by $2.50. If at any time the cash value multiplied by the limitation percentage is less than the specified amount, the death benefit will equal the specified amount of the Policy reduced by the dollar value of any cash withdrawals.

Option B

Death benefit equals the greatest of:
1.
The specified amount; plus t he cash value on the
   
insured's date of death; or
 
2.
The limitation percentage multiplied by the cas h value on the insured’s date of death.
 
3.
The amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

Under Option B, the death benefit always varies as the cash value varies.

Option B Illustration. Assume that the insured's attained age is under 40 and that there are no outstanding loans. Under Option B, a Policy with a specified amount of $50,000 will generally pay a death benefit of $50,000 plus cash value. Thus, a Policy with a cash value of $10,000 will have a death benefit of $60,000 ($50,000 + $10,000). The death benefit, however, must be at least 250% of cash value. As a result, if the cash value of the Policy exceeds $33,333, the death benefit will be greater than the specified amount plus cash value. (The figure of $33,333 is derived by solving for cash value in the following calculation: 250% multiplied by cash value= $50,000 plus cash value; 250% multiplied by $33,333= $50,000 plus $33,333).  Each additional dollar of cash value above $33,333 will increase the death benefit by $2.50.

Similarly, any time cash value exceeds $33,333, each dollar taken out of cash value will reduce the death benefit by $2.50. If at any time, cash value multiplied by the limitation percentage is less than the specified amount plus the cash value, then the death benefit will be the specified amount plus the cash value of the Policy.

Effect of Cash Withdrawals on the Death Benefit

If you choose Option A, a cash withdrawal will reduce the specified amount by an amount equal to the amount of the cash withdrawal.  Regardless of the death benefit option you choose, a cash withdrawal will reduce the death benefit by at least the amount of the withdrawal. For a description of the effect of cash withdrawals on the death benefit option that you select, please refer to the section entitled “Surrenders and Cash Withdrawals – Cash Withdrawals” in this prospectus.

Choosing Death Benefit Options

You must choose one death benefit option on your application. This is an important decision. The death benefit option you choose will have an impact on the dollar value of the death benefit, on your cash value, and on the amount of cost of insurance charges you pay.

If you do not select a death benefit option on your application, then Option A will become the death benefit option for your Policy by default.

 
 
 


You may find Option A more suitable for you if your goal is to increase your cash value through positive investment experience. You may find Option B more suitable if your goal is to increase your total death benefit.

Changing the Death Benefit Option

After the third Policy year, you may change your death benefit option once each Policy year which may affect the specified amount. We will notify you of the new specified amount.

Changes to the Death Benefit Option are subject to the following conditions:

●
You may send your written request, in good order, to our mailing address or fax it to us at our administrative office at 1-727-299-1620.
●
The effective date of the change will be the Monthiversary on or following the date when we receive your request for a change.
●
You may not make a change that would decrease the specified amount below the minimum specified amount shown on your Policy schedule page.
●
There may be adverse federal tax consequences. You should consult a tax advisor before changing your Policy's death benefit option.

If you change your death benefit option from Option B to Option A, we will make the specified amount after the change equal to the specified amount prior to the change, plus your Policy’s cash value on the effective date of the change.  If you change your death benefit option from Option A to Option B, we will make the specified amount after the change equal to the specified amount prior to the change, minus the cash value on the effective date of the change.  We will notify you of the new specified amount.
 
Increasing/Decreasing the Specified Amount
 
You may increase the specified amount once each Policy year or decrease at any time after the third Policy year.  No more than one change in the specified amount can occur each Policy year.   An increase or decrease in the specified amount will affect your cost of insurance charge, your guideline premium, your Modified Endowment Contract, your minimum monthly guarantee premium, and may affect your ability to maintain the no lapse period guarantee, and may have adverse federal tax consequences

You should consult a tax advisor before changing your Policy’s specified amount.

Conditions for increasing the specified amount:
●
We will accept requests for increases in specified amount on any Monthiversary if your Policy has been in force for one year and the insured is under age 75.
 
●
You may send your written request, in good order, to our mailing address or fax it to us at 1-727-299-1620.
   
A requested increase in specified amount requires our approval and will take effect on the Monthiversary on or after we  approve your request.
 
●
You will require additional evidence of insurability.
 
●
The increase in specified amount must be at least $50,000.
 
●
We reserve the right to decline your request.
 
●
You do not need to send an additional premium but you must have sufficient net surrender value to cover the next monthly deductions after the increase becomes effective.
 
●
If you surrender your Policy, we will charge you an additional surrender charge on any increase in specified amount for 15 years after each increase.
     
If you increase the specified amount but you have not paid sufficient premiums to cover monthly deductions, your Policy will lapse.

 
 
 



Conditions for decreasing the specified amount:
●
You may send your written request, in good order, to our mailing address or fax it to us at our administrative office at 1-727-299-1620.
 
●
Your Policy must be in force for three years.
 
●
You may not decrease your specified amount if it would disqualify your Policy as life insurance under the Internal Revenue Code.
 
●
We may limit the amount of the decrease to no more than 20% of the specified amount
 
●
A decrease in specified amount will take effect on the first Monthiversary on or next following the day we receive your written request.

Payment Options

There are several ways of receiving proceeds under the death benefit and surrender provisions of the Policy, other than in a lump sum. These are described under “Settlement Options” in your Policy and in this prospectus.

Surrenders and Cash Withdrawals 
 
Surrenders
 
You must make a written request to surrender your Policy for its net surrender value as calculated at the end of the valuation date on which we receive your request, in good order, at our mailing address. You also may fax your request to our administrative office at 1-727-299-1620. We may require an original signature with such request.  Written requests to surrender a Policy that are received before the NYSE closes are priced using the subaccount unit value determined at the close of that regular business session of the NYSE (usually 4:00 p.m. Eastern Time ).  If we receive a written request at our mailing address or a fax request at our administrative office after the NYSE closes, or on a day the NYSE is closed for trading, we will process the surrender request using the subaccount unit value determined at the close of the next regular business session of the NYSE. Please Note: All surrender requests must be submitted in good order to avoid a delay in processing your request.

The insured must be alive, the Policy must be in force, and it must be before the maturity date when you make your written request. A surrender is effective as of the date when we receive your written request, in good order, at our mailing address.  You will incur a surrender charge if you surrender the Policy during the first 15 Policy years and an additional surrender charge for 15 years following each increase in specified amount.

Once you surrender your Policy, all coverage and other benefits under it cease and cannot be reinstated. We will normally pay you the net surrender value in a lump sum within seven days   or under a settlement option. A surrender may have tax consequences. For more information regarding tax consequences, please refer to the section entitled “Federal Income Tax Considerations . ”
 
Cash Withdrawals
 
After the first Policy year, you may request a cash withdrawal of a portion of your surrender value subject to certain conditions. (Note: All cash withdrawal requests must be submitted in good order to avoid a delay in processing your request.)

Cash withdrawal conditions:
●
You must send your written cash withdrawal request with an original signature, in good order, to our mailing address.  If your withdrawal request is less than $500,000, then you may fax it to us at 1-727-299-1620.
 
●
We may limit the number of withdrawals to one cash withdrawal per Policy year.


 
 
 



 
●
 During the first 10 Policy years, the amount of the withdrawal may be limited to no more than 10% of the net surrender value.  After the 10th Policy year, the amount of the withdrawal may be limited to no more than 25% of the net surrender value.
 
●
The remaining net surrender value following a withdrawal may not be less than $500.00.
 
●
You may not take a cash withdrawal if it will reduce the specified amount below the minimum specified amount set forth in the Policy.
 
●
You may specify the subaccount(s) and the fixed account from which to make the withdrawal. If you do not specify an account, we will take the withdrawal from each account in accordance with your current premium allocation instructions. If this is not possible, the withdrawal amount will be withdrawn pro-rata from all accounts.
 
●
We generally will pay a cash withdrawal request within seven days following the valuation date we receive the request in good order .
 
●
We will deduct a processing fee equal to $25 or 2% of the amount you withdraw, whichever is less. We deduct this amount from the withdrawal, and we pay you the balance.
 
●
You may not take a cash withdrawal that would disqualify your Policy as life insurance under the Internal Revenue Code.
 
●
A cash withdrawal may have tax consequences.

A cash withdrawal will reduce the cash value by the amount of the cash withdrawal, and in most cases, will reduce the death benefit by at least the amount of the cash withdrawal. When death benefit Option A is in effect, a cash withdrawal will reduce the specified amount by an amount equal to the amount of the cash withdrawal.  You also may have to pay higher minimum monthly guarantee premiums.  We will not impose a pro rata decrease charge when the specified amount is decreased as a result of taking a cash withdrawal.

When we incur extraordinary expenses, such as overnight mail expenses or wire service fees, for expediting delivery of your cash withdrawal or  surrender payment, we will deduct that charge from the payment. We currently charge $2 5 for an overnight delivery ($3 5 for Saturday delivery) and $5 0 for wire service.  You can obtain further information about these charges by contacting our mailing or administrative office.
 
Canceling a Policy
 
 
You may cancel a Policy for a refund during the "free-look period" by returning it, with a written request to cancel the Policy to our  mailing address . You also may fax your request to 1-727-299-1620 along with page 3 of the Policy. The “free-look period” expires 10 days after you receive the Policy. In some states you may have more than 10 days. If you decide to cancel the Policy during the “free-look period,” we will treat the Policy as if it had never been issued. We will pay the refund within seven days after we receive , in good order, the written request and the returned Policy at our mailing address (or a fax request and page 3 of the Policy are received in good order at our administrative office) . The amount of the refund will be:

●
Any charges and taxes we deduct from your premiums; plus
●
Any monthly deductions or other charges we deducted from amounts you allocated to the subaccounts and the fixed account; plus
●
Your cash value in the subaccounts and the fixed account on the date the written request and Policy are received at our  mailing address.

Some states may require us to refund all of the premiums you paid for the Policy.  In addition, some states may require us to allocate premium according to a policyowner’s instructions during the “free-look period.”

 
 
 


California Policyowners Age 60 and Over

For policies issued in the state of California, if the policyowner is age 60 or older as of the Policy effective date, the Policy’s free-look period is 30 days from the date of delivery.  During the 30-day free-look period, we will hold the net premiums in the fixed account, unless you direct us to allocate the net premiums as per your most recent allocation instructions.  On the day following the end of the 30-day free look period, we will automatically transfer the accumulated value to subaccounts that you selected.  This automatic transfer is excluded from the transfer limitations described later in this prospectus.

You can specifically direct the allocation of your net premiums to the subaccounts during the 30-day free-look period:
·
On your application.
·
In writing any time prior to the end of the 30-day free-look period.

Signature Guarantees

Signature guarantees are relied upon as a means of preventing the perpet r ation of fraud in financial transactions, including the disbursement of funds or assets from a victim's account with a financial institution or a provider of financial services.  They provide protection to investors by, for example, making it more difficult for a person to take another person's money by forging a signature on a written request for the disbursement of funds.

As a protection against fraud, we may require that the following transaction requests include a Medallion signature guarantee:
 

 
         ·
All requests for disbursements (i.e., cash withdrawals and surrenders) of $500,000 or more.
·
Any disbursement request made on or within 10 days of our receipt of a request to change the address of record for an owner's policy.
·
Any disbursement request when Western Reserve has been directed to send proceeds to a different address from the address of record for that owner's account.   Please note:  This requirement will not apply to disbursement requests made in connection with exchanges of one life policy for another with the same owner in a "tax-free exchange" under Section 1035 of the Internal Revenue Code.
·
Any transaction where the owner’s signature on a request submitted does not match the signature in our files.

 
An investor can obtain a 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.
       ·
Credit unions.

The best source of a signature guarantee is a bank, savings and loan association, brokerage firm, or credit union with which you do business.  Guarantor firms may, but frequently do not, charge a fee for their services.

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

Loans 
 
General
 
After the first Policy year (as long as the Policy is in force) you may borrow money from the Policy using the Policy’s net surrender value as the only security for the loan. We may permit a loan prior to the first Policy anniversary for Policies issued pursuant to 1035 Exchanges. A loan that is taken from and secured by a Policy may have tax consequences. See “Federal Income Tax Considerations”.

 
 
 



Policy loans are subject to certain conditions:
●
We may require you to borrow at least $500.
 
●
The maximum amount you may borrow is 90% of the cash value, minus any surrender charge and minus any outstanding loan amount.

When you take a loan, we will withdraw an amount equal to the requested loan plus interest in advance until the next Policy anniversary from each of the subaccounts and the fixed account based on your current premium allocation instructions (unless you specify otherwise). If this is not possible, the withdrawal amount will be withdrawn pro-rata from the subaccounts and the fixed account. We will transfer that amount to the loan reserve account. The loan reserve account is the portion of the fixed account to which amounts are transferred as collateral for a Policy loan.

We normally pay the amount of the loan within seven days after we receive a proper loan request at our mailing address or, in the limited circumstances described below, by fax at our administrative office. We may postpone payment of loans under certain conditions.

You may request a loan of up to $50,000 by telephone by calling us at our administrative office at 1-800-851-9777, Monday – Friday, between the hours of 8:30 a.m. – 7.00 p.m. Eastern Time. If you do not want the ability to request a loan by telephone, you should notify us in writing at our mailing address. You will be required to provide certain information for identification purposes when you request a loan by telephone. We may ask you to provide us with written confirmation of your request. We will not be liable for processing a loan request if we believe the request is genuine. (Note: All loan requests must be submitted in good order to avoid a delay in processing your request.)

If your request is less than $500,000, then you may fax your loan request to us at 1-727-299-1620.   If your loan request exceeds $500,000 or if the address of record has been changed within the past 10 days, we may reject your request or require a signature guarantee. We will not be responsible for any transmittal problems when you fax your request unless you report it to us within five business days and send us proof of your fax transmittal.

You can repay a loan at any time while the Policy is in force. Loan repayments must be sent to our mailing address and will be credited as of the date received.

At each Policy anniversary, we will compare the outstanding loan amount to the amount in the loan reserve account. At each such time, if the outstanding loan amount exceeds the amount in the loan reserve account, we will withdraw the difference from the subaccounts and the fixed account and transfer it to the loan reserve account, in the same manner as when a loan is made. If the amount in the loan reserve account exceeds the amount of the outstanding loan, we will withdraw the difference from the loan reserve account and transfer it to the subaccounts and the fixed account in the same manner as current premiums are allocated. No charge will be imposed for these transfers, and these transfers are not treated as transfers in calculating the transfer charge. We reserve the right to require a transfer to the fixed account if the loans were originally transferred from the fixed account.

Interest Interest Spread

The Loan Interest Spread is the difference between the amount of interest we charge you for a loan and the amount of interest we credit to your loan reserve account.

We currently credit the amount in the loan reserve account with an effective annual interest rate of 4.75% (4.0% minimum guaranteed).  After offsetting the 4.75% interest we credit, the net cost of loans currently is 0.74% annually after rounding (1.49% maximum guaranteed).  After the 10 th Policy year, we apply preferred loan rates on an amount equal to the cash value; minus total premiums paid (less any cash withdrawals); and minus any outstanding loan amount. The current preferred loan interest rate credited is 5.49% effective annually, after rounding, and is not guaranteed.


Loan Reserve Account Interest Rate Credited

We will credit the amount in the loan reserve account with an effective annual interest rate of at least 4.0%.  We may credit a higher rate, but we are not obligated to do so.

 
 
 



●
We currently credit interest at an effective annual rate of 4.75% on amounts you borrow during the first ten Policy years.
●
After the tenth Policy year, on all amounts that you have borrowed, we currently credit interest to part of the cash value in excess of the premiums paid less cash withdrawals and any outstanding loan amount including accrued loan interest at an interest rate equal to the interest rate we charge on the total loan.  The remaining portion, equal to the cost basis, is currently credited an effective annual rate of 4.75%*.

*  For Policies issued on or after May 1, 1994.  For Policies issued before that date, we credit interest at the following annual effective rates: 6.0% for Policies issued before May 1, 1988, and 6.75% for Policies issued on or after May 1, 1988, but before May 1, 1994.

Effect of Policy Loans

A Policy loan reduces the death benefit proceeds and net surrender value by the amount of any outstanding loan amount. Repaying the loan causes the death benefit proceeds and net surrender value to increase by the amount of the repayment. As long as a loan is outstanding, we hold an amount equal to the loan plus interest charged in advance until the next Policy anniversary in the loan reserve account. This amount is not affected by the separate account's investment performance, may not be credited with the interest rates accruing on the unloaned portion of the cash value in the fixed account, and, therefore, can affect the Policy’s cash value and death benefit whether or not the loan is repaid. Amounts transferred from the separate account to the loan reserve account will reduce the value in the separate account and we will credit such amounts with an interest rate declared by us rather than a rate of return reflecting the investment results of the separate account.

We also currently charge interest on Policy loans at an annual interest rate of 5.2% in advance.  Because interest is added to the amount of the Policy loan to be repaid, the size of the loan will constantly increase unless the Policy loan is repaid.

There are risks involved in taking a Policy loan, including the potential for a Policy to lapse if projected earnings, taking into account outstanding loans, are not achieved. A Policy loan may also have possible adverse tax consequences. You should consult a tax advisor before taking out a Policy loan.

We will notify you (and any assignee of record) if a loan causes your net surrender value to reach below your monthly deduction.  If you do not submit a sufficient payment within 61 days from the date of the notice, your Policy may lapse.

Policy Lapse and Reinstatement                                                                                                                                          
 
Lapse
 
Your Policy may not necessarily lapse (terminate without value) if you fail to make a planned periodic payment. However, even if you make all your planned periodic payments, there is a possibility that your Policy will lose value and lapse. This Policy provides a no lapse period guarantee as shown below. Once your no lapse period ends, or if the no lapse period guarantee is not in effect, your Policy may lapse if the net surrender value on any Monthiversary is less than the monthly deductions due on that day. Such lapse might occur if unfavorable investment experience, loans and cash withdrawals cause a decrease in the net surrender value, or you have not paid sufficient premiums (as discussed below) to offset the cost of monthly deductions.

If the net surrender value is not enough to pay the monthly deductions, we will mail a notice to your last known address and any assignee of record. The notice will specify the minimum payment you must pay and the final date by which we must receive the payment to prevent a lapse. We generally require that you make the payment within 61 days after the date of the notice. This 61-day period is called the grace period.  We pay the death benefit proceeds if an insured dies during the grace period.  If we do not receive the specified minimum payment by the end of the grace period, all coverage under the Policy will terminate without value.

Your Policy is a flexible premium policy that is subject to certain monthly deductions that are dependent upon among other factors the characteristics of the insured(s), riders associated with your Policy, and your Policy’s specified amount.  If you r Policy does lapse and you choose to reinstate it, you will be required to make additional payments.  The payments needed to reinstate the Policy will depend on whether the no lapse date has passed.  Please refer to the section below entitled “Reinstatement” for a description of the payments that may be required to reinstate your Policy.

 
 
 



No Lapse Period Guarantee

This Policy provides a no lapse guarantee during the no lapse period. Even if your net surrender value is not enough to pay your monthly deductions, the Policy will not lapse and no grace period will begin as long as the no lapse period guarantee is in effect. The no lapse period guarantee will not extend beyond the no lapse date stated in your Policy, except as explained below in “Extension of No Lapse Period Guarantee”   Each month we determine whether the no lapse period guarantee is still in effect.  If the Policy is still in force but the no lapse period guarantee is not in effect, it can be restored by paying sufficient minimum monthly guarantee premiums at any time before the no lapse date.

No lapse date:
●
For a Policy issued to any insured ages 0-60, the no lapse date is the tenth Policy anniversary or anniversary on which the insured’s attained age is 65, whichever is earlier.
 
●
For a Policy issued to an insured ages 61-75, the no lapse date is the fifth Policy anniversary.
 
●
The no lapse date is specified in your Policy, or as explained below in “Extension of No Lapse Period Guarantee.”
     
Keeping the no lapse period guarantee in effect:
●
The No Lapse Period Guarantee will not be effective if you do not pay sufficient minimum monthly guarantee premiums.
 
●
You must pay total premiums (minus withdrawals and outstanding loan amounts) that equal at least the sum of the minimum monthly guarantee premiums in effect for each month from the Policy date up to and including the current month.
 
●
The No Lapse Period Coverage will end immediately if the specified amount is increased or riders are added or increased.

You will lessen the risk of Policy lapse if you keep the no lapse period guarantee in effect. Before you take a cash withdrawal or a loan or increase the specified amount, or add, increase or decrease a rider, you should consider carefully the effect it will have on the no lapse period guarantee.

Policies issued in New Jersey: If the grace period begins prior to the no lapse date, the payment necessary to keep the Policy in force is the lesser of the amount necessary to (1) satisfy the minimum monthly guarantee premium; or (2) increase the net surrender value to cover the monthly deductions due.

Extension of No Lapse Period Guarantee

The no lapse period for all Policies that were in force on May 1, 2009 (and the No Lapse Guarantee was still in effect), with a no lapse date indicated on the Policy schedule page in 2006, 2007, 2008, 2009, 2010 or 2011, has been automatically extended to the Policy anniversary in 2012.  The minimum monthly guarantee premium will not be changed, but if a cash withdrawal or a loan has been taken, or if requested in the future, additional minimum premiums may need to be paid to maintain the No Lapse guarantee. If an affected Policy lapses and is reinstated before January 1, 2012, the extended No Lapse date will remain in effect.
 
Reinstatement

We will reinstate a lapsed Policy within five years after the lapse (and prior to the maturity date). To reinstate the Policy you must:

●
Submit a written application for reinstatement to our mailing address or fax your request to our administrative office at 1-727-299-1620 .
●
Provide evidence of insurability that is satisfactory to us.
●
Make a minimum premium payment sufficient to provide a net premium that is large enough to cover three monthly deductions.
·
Make a payment of an additional amount sufficient to cover any surrender charge as of the date of reinstatement.


 
 
 



We will not reinstate indebtedness (i.e., outstanding loan  at the time your Policy lapsed). The cash value of the loan reserve on the reinstatement date will be zero. Your net surrender value on the reinstatement date will equal the net premiums you pay at reinstatement, minus one monthly deductions and any surrender charge. The reinstatement date for your Policy will be the Monthiversary on or following the day we approve your application for reinstatement. We may decline a request for reinstatement.

Federal Income Tax Considerations 

The following summarizes some of the basic federal income tax considerations associated with a Policy and does not purport to be complete or to cover all situations. This discussion is not intended as tax advice. Please consult counsel or other qualified tax advisors for more complete information. We base this discussion on our understanding of the present federal income tax laws as they are currently interpreted by the Internal Revenue Service (the "IRS"). Federal income tax laws and the current interpretations by the IRS may change.

Tax Status of the Policy

A Policy must satisfy certain requirements set forth in the Internal Revenue Code (the "Code") in order to qualify as a life insurance policy for federal income tax purposes and to receive the tax treatment normally accorded life insurance policies under federal tax law. Guidance as to how these requirements are to be applied is limited. Nevertheless, we believe that this Policy should generally satisfy the applicable Code requirements.

It is also uncertain whether death benefits under policies where the maturity date has been extended will be excludible from the beneficiary’s gross income and whether policy cash value will be deemed to be distributed to you on the original maturity date.  Such a deemed distribution may be taxable.  If it is subsequently determined that a Policy does not satisfy the applicable requirements, we may take appropriate steps to bring the Policy into compliance with such requirements and we reserve the right to restrict Policy transactions in order to do so.

In certain circumstances, owners of variable life insurance policies have been considered for federal income tax purposes to be the owners of the assets of the separate account supporting their policies due to their ability to exercise investment control over those assets. Where this is the case, the policyowners have been currently taxed on income and gains attributable to the separate account assets. There is little guidance in this area, and some features of the Policies, such as your flexibility to allocate premiums and cash values, have not been explicitly addressed in published rulings. We believe that the Policy does not give you investment control over separate account assets.

In addition, the Code requires that the investments of the separate account be "adequately diversified" in order to treat the Policy as a life insurance policy for federal income tax purposes. We intend that the separate account, through the portfolios, will satisfy these diversification requirements.

The following discussion assumes that the Policy will qualify as a life insurance policy for federal income tax purposes.

Tax Treatment of Policy Benefits

In General. We believe that the Policy described in this prospectus is a life insurance policy under Code Section 7702.  Section 7702 defines a life insurance policy for federal income tax purposes and places limits on the relationship of the accumulation value to the death benefit.  As life insurance policies, the death benefits of the policies are generally excludable from the gross income of the beneficiaries.  In the absence of any guidance from the IRS on the issue, we believe that providing an amount at risk after age 99 in the manner provided should be sufficient to maintain the excludability of the death benefit after age 99.   Lack of specific IRS guidance, however, makes the tax treatment of the death benefit after age 99 uncertain.  Also, any increase in accumulation value should generally not be taxable until received by you or your designee.  However, if your Policy is a modified endowment contract as defined in Code Section 7702A you may be taxed to the extent of gain in the Policy when you take a Policy loan, pledge or assign the Policy. Federal, state and local transfer, estate and other tax consequences of ownership or receipt of Policy proceeds depend on your circumstances and the beneficiary's circumstances. A tax advisor should be consulted on these consequences.

 
 
 


Generally, you will not be deemed to be in constructive receipt of the cash value until there is a distribution. When distributions from a Policy occur, or when loans are taken out from or secured by a Policy (e.g., by assignment), the tax consequences depend on whether the Policy is classified as a MEC. Moreover, if a loan from a Policy that is not a MEC is outstanding when the Policy is canceled or lapses, the amount of outstanding indebtedness will be considered an amount distributed and will be taxed accordingly.

Modified Endowment Contracts. Under the Code, certain life insurance policies are classified as MECs and receive less favorable tax treatment than other life insurance policies. The rules are too complex to summarize here, but generally depend on the amount of premiums paid during the first seven Policy years or in the seven Policy years following certain changes in the Policy. Certain changes in the Policy after it is issued could also cause the Policy to be classified as a MEC. Due to the Policy's flexibility, each Policy's circumstances will determine whether the Policy is classified as a MEC. Among other things, a reduction in benefits could cause a Policy to become a MEC. If you do not want your Policy to be classified as a MEC, you should consult a tax advisor to determine the circumstances, if any, under which your Policy would or would not be classified as a MEC.

Upon issue of your Policy, we will notify you as to whether or not your Policy is classified as a MEC based on the initial premium we receive. If your Policy is not a MEC at issue, then you will also be notified of the maximum amount of additional premiums you can pay without causing your Policy to be classified as a MEC. If a payment would cause your Policy to become a MEC, you and your registered representative will be notified. At that time, you will need to notify us if you want to continue your Policy as a MEC. Unless you notify us that you do want to continue your Policy as a MEC, we will refund the dollar amount of the excess premium that would cause the Policy to become a MEC.

Distributions (other than Death Benefits) from MECs. Policies classified as MECs are subject to the following tax rules:

●
All distributions other than death benefits from a MEC, including distributions upon surrender and cash withdrawals, will be treated first as distributions of gain taxable as ordinary income. They will be treated as tax-free recovery of the owner's investment in the Policy only after all gain has been distributed. Your investment in the Policy is generally your total premium payments. When a distribution is taken from the Policy, your investment in the Policy is reduced by the amount of the distribution that is tax-free.
●
Loans taken from or secured by (e.g., by assignment) or pledges of such a Policy and increases in cash value secured by such loan or pledge are treated as distributions and taxed accordingly.  If the Policy is part of a collateral assignment split dollar arrangement, the initial assignment as well as increases in cash value during the assignment may be treated as distributions and considered taxable.
●
A 10% additional federal income tax is imposed on the amount included in income except where the distribution or loan is made when you have attained age 59 ½ or are disabled, or where the distribution is part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and the beneficiary.
●
If a Policy becomes a MEC, distributions that occur during the Policy year will be taxed as distributions from a MEC. In addition, the IRS has the authority, but has not yet done so, to issue regulations providing that distributions from a Policy that are made within two years before the Policy becomes a MEC will also be taxed in this manner.

Distributions (other than Death Benefits) from Policies that are not MECs. Distributions from a Policy that is not a MEC are generally treated first as a recovery of your investment in the Policy, and as taxable income after the recovery of all investment in the Policy. However, certain distributions which must be made in order to enable the Policy to continue to qualify as a life insurance policy for federal income tax purposes if Policy benefits are reduced during the first 15 Policy years may be treated in whole or in part as ordinary income subject to tax.  Distributions from or loans from or secured by a Policy that is not a MEC are not subject to the 10% additional tax applicable to MECs..

Policy Loans.  Loans from or secured by a Policy that is not a MEC are generally not treated as distributions. Instead, such loans are treated as indebtedness. If a loan from a Policy that is not a MEC is outstanding when the Policy is surrendered or lapses, the amount of the outstanding indebtedness will be taxed as if it were a distribution at that time.  The tax consequences associated with Policy loans outstanding after the first 10 Policy years with preferred loan rates are less clear and a tax advisor should be consulted about such loans.

 
 
 


Deductibility of Policy Loan Interest. In general, interest you pay on a loan from a Policy will not be deductible. Before taking out a Policy loan, you should consult a tax advisor as to the tax consequences.

Investment in the Policy.  Your investment in the Policy is generally the sum of the premium payments you made. When a distribution from the Policy occurs, your investment in the Policy is reduced by the amount of the distribution that is tax-free.

Withholding.  To the extent that Policy distributions are taxable, they are generally subject to withholding for the recipient's federal income tax liability.  The federal income tax withholding rate is generally 10% of the taxable amount of the distribution.  Withholding applies only if the taxable amount of all distributions is at least $200 during a taxable year.  Some states also require withholding for state income taxes.  With the exception of amounts that represent eligible rollover distributions from Pension Plans and 403(b) arrangements, which are subject to mandatory withholding of 20% for federal tax, recipients can generally elect, however, not to have tax withheld from distributions.  If the taxable distributions are delivered to foreign countries, U.S. persons may not elect out of withholding.  Taxable distributions to non-resident aliens are generally subject to withholding at a 30% rate unless withholding is eliminated under an international treaty with the United States. The payment of death benefits is generally not subject to withholding.

Business Uses of the Policy. The Policy may be used in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans and business uses of the Policy may vary depending on the particular facts and circumstances of each individual arrangement and business uses of the Policy. Therefore, if you are contemplating using the Policy in any such arrangement, you should be sure to consult a tax advisor as to tax attributes of the arrangement and in its use of life insurance. In recent years, moreover, Congress and the IRS have adopted new rules relating to nonqualified deferred compensation and to life insurance owned by businesses and life insurance used in split dollar arrangements. The IRS has recently issued new guidance regarding concerns in the use of life insurance in employee welfare benefit plans, including, but not limited to, the deduction of employer contributions and the status of such plans as listed transactions.  Any business contemplating the purchase of a new Policy or a change in an existing Policy should consult a tax advisor.  Recent legislation under Section 101(j) of the Internal Revenue Code has imposed notice, consent and other provisions on policies owned by employers and certain of their affiliates, owners and employees, to receive death benefits tax-free and inserted additional tax reporting requirements.

Alternative Minimum Tax. There also may be an indirect tax upon the income in the Policy or the proceeds of a Policy under the federal corporate alternative minimum tax, if the policyowner is subject to that tax.

Terminal Illness Accelerated Death Benefit Rider. We believe that the single-sum payment we make under this rider should be fully excludible from the gross income of the beneficiary, except in certain business contexts. You should consult a tax advisor about the consequences of adding this rider to your Policy, or requesting a single-sum payment.

Continuation of Policy Beyond Age 100.  The tax consequences of continuing the Policy beyond the insured’s attained age 100 are unclear and may include taxation of the gain in the Policy at the original maturity date or the taxation of the death benefit in whole or in part.  You should consult a tax advisor if you intend to keep the Policy in force beyond the insured’s attained age 100.

Other Tax Considerations. The transfer of the Policy or designation of a beneficiary may have federal, state, and/or local transfer and inheritance tax consequences, including the imposition of gift, estate, and generation-skipping transfer taxes. The individual situation of each owner or beneficiary will determine the extent, if any, to which federal, state, and local transfer and inheritance taxes may be imposed and how ownership or receipt of Policy proceeds will be treated for purposes of federal, state and local estate, inheritance, generation-skipping and other taxes. Special Rules for Pension Plans and Section 403(b) Arrangements.  If the Policy is purchased in connection with a section 401(a) qualified pension or profit sharing plan, including a section 401(k) plan, or in connection with a section 403(b) plan or program, federal and state and estate tax consequences could differ from those stated in this prospectus.  The purchase may also affect the qualified status of the plan.  You should consult a qualified tax advisor  in connection with such purchase.  Policies owned under these types of plans may be subject to the Employee Retirement Income Security Act of 1974, or ERISA, which may impose additional requirements on the purchase of policies by such plans.  You should consult a qualified advisor regarding ERISA.

 
 
 


Please Note: In 2001, Congress enacted the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), which modified the estate, gift and generation-skipping transfer taxes through 2009 and eliminated the estate tax (but not the gift tax) and replaced it with a carryover basis income tax regime for estates of decedents dying in 2010, and also eliminated the generation-skipping transfer tax for transfers made in 2010.  Recent legislation has generally extended the EGGTRA provisions existing in 2009 and reunified the estate and gift transfer taxes for 2011 and 2012.  The uncertainty as to future estate, gift and generation-skipping transfer taxes underscores the importance of seeking guidance from a qualified advisor to help ensure that your estate plan adequately addresses your needs and that of your beneficiaries under all possible scenarios.

Other Policy Information 
 
Settlement Options
 
If you surrender the Policy, you may elect to receive the net surrender value in either a lump sum or as a series of regular income payments under one of the three settlement options described below. In either event, life insurance coverage ends. Also, when the surviving insured dies, the beneficiary may apply the lump sum death benefit proceeds to one of the same settlement options. If the regular payment under a settlement option would be less than $20, we will instead pay the proceeds in one lump sum. We may make other settlement options available in the future.

Once we begin making payments under a settlement option, you or the beneficiary will no longer have any value in the subaccounts or the fixed account. Instead, the only entitlement will be the amount of the regular payment for the period selected under the terms of the settlement option chosen. Depending upon the circumstances, the effective date of a settlement option is the surrender date or the surviving insured's date of death.

Under any settlement option, the dollar amount of each payment will depend on four things:
 
●
The interest rate we credit on those amounts (we guarantee a minimum annual interest rate of 4.0%).
●
The mortality tables we use.
●
The specific payment option(s) you choose.

Option 1--Equal Monthly
Installments for a Fixed Period
●
We will pay the proceeds, plus interest, in equal monthly installments for a fixed period of your choice, but not longer than 240 months.
 
●
We will stop making payments once we have made all the payments for the period selected.
     
Option 2--Equal Monthly Installments for Life (Life Income)
At your or the beneficiary's direction, we will make equal monthly installments:
 
●
Only for the life of the payee, at the end of which payments will end; or
 
●
For the longer of the payee's life, or for 10 years if the payee dies before the end of the first 10 years of payments; or
 
●
For the longer of the payee's life, or until the total amount of all payments we have made equals the proceeds that were applied to the settlement option.
     
Option 3--Equal Monthly Installments for the Life of the Payee and then to a Designated Survivor (Joint and Survivor)
●
We will make equal monthly payments during the joint lifetime of two persons, first to a chosen payee, and then to a co-payee, if living, upon the death of the payee.
 
●
Payments to the co-payee, if living, upon the payee's death will equal either:
   
>
The full amount paid to the payee before the payee's death; or
   
>
Two-thirds of the amount paid to the payee before the payee's death.
 
●
All payments will cease upon the death of the co-payee.
 

 

 
 
 


 
Benefits at Maturity
 
If the insured is living and the Policy is in force, the Policy will mature on the Policy anniversary nearest the insured's 95th birthday. This is the maturity date. On the maturity date we will pay you the net surrender value of your Policy.

If your Policy was issued before May 1, 1999, and you send a written request to our mailing address, we may extend the maturity date if your Policy is still in force on the maturity date and there are no adverse tax consequences in doing so.  You must submit a written request to our mailing address for the extension between 90 and 180 days prior to the maturity date.  We must agree to the extension.

If your Policy was issued on or after May 1, 1999, and you send a written request to our mailing address, we will extend the maturity date if your Policy is still in force on the maturity date.  Any riders in force on the scheduled maturity date will terminate on that date and will not be extended. Interest on any outstanding Policy loans will continue to accrue during the period for which the maturity date is extended.  You must submit a written request to our office for the extension between 90 and 180 days prior to the maturity date and elect one of the following:

1.
If you had previously selected death benefit Option B, we will change the death benefit to Option A. On each valuation date, we will adjust the specified amount to equal the cash value, and the limitation percentage will be 100%. We will not permit you to make additional premium payments unless it is required to prevent the Policy from lapsing. We will waive all future monthly deductions; or
2.
We will automatically extend the maturity date until the next Policy anniversary. You must submit a written request to our office, between 90 and 180 days before each subsequent Policy anniversary, stating that you wish to extend the maturity date for another Policy year. All benefits and charges will continue as set forth in your Policy. We will charge the then current cost of insurance rates.

If you choose 2 above, you may change your election to 1 above at any time. However, if you choose 1 above, then you may not change your election to 2 above.

The tax consequences of extending the maturity date beyond the 100th birthday of the insured are uncertain and may include taxation of the gain in the Policy at the original maturity date or taxation of the death benefit in whole or in part.  You should consult a tax advisor as to those consequences.
 
Payments We Make
 
We usually pay the amounts of any surrender, cash withdrawal, death benefit proceeds, or settlement options within seven calendar days after we receive all applicable written notices and/or due proofs of death at our mailing address. However, we can postpone such payments if any of the following occur:

●
The NYSE is closed, other than customary weekend and holiday closing, or trading on the NYSE is restricted as determined by the SEC.
●
The SEC permits, by an order, the postponement for the protection of policyowners.
●
The SEC determines that an emergency exists that would make the disposal of securities held in the separate account or the determination of their value not reasonably practicable.
·
When mandated under applicable law.
   

If, pursuant to SEC rules, either the Transamerica AEGON Money Market VP portfolio or the ProFund VP Money Market portfolio suspends payment of redemption proceeds in connection with a liquidation of such portfolio, we will delay payment of any transfer, partial withdrawal, surrender, loan, or death benefit from the Transamerica AEGON Money Market VP sub-account or the ProFund VP Money Market subaccount until the portfolio is liquidated.

If you have submitted a recent check or draft, we have the right to defer payment of surrenders, cash withdrawals, death benefit proceeds, or payments under a settlement option until such check or draft has been honored. We also reserve the right to defer payment of transfers, cash withdrawals, death benefit proceeds, or surrenders from the fixed account for up to six months.

If mandated under applicable law, we may be required to reject a premium payment and/or block a policyowner's account and thereby refuse to pay any request for transfers, withdrawals, surrenders, loans or death benefits until instructions are received from the appropriate regulators.  We may also be required to provide additional information about you or your account to governmental regulators.

 
 
 


 
Split Dollar Arrangements
 
You may enter into a split dollar arrangement with another owner or another person(s) whereby the payment of premiums and the right to receive the benefits under the Policy (i.e., net surrender value of insurance proceeds) are split between the parties. There are different ways of allocating these rights.

For example, an employer and employee might agree that under a Policy on the life of the employee, the employer will pay the premiums and will have the right to receive the net surrender value. The employee may designate the beneficiary to receive any insurance proceeds in excess of the net surrender value. If the employee dies while such an arrangement is in effect, the employer would receive from the insurance proceeds the amount that he would have been entitled to receive upon surrender of the Policy and the employee's beneficiary would receive the balance of the proceeds.

No transfer of Policy rights pursuant to a split dollar arrangement will be binding on us unless in writing and received by us at our mailing address. Split dollar arrangements may have tax consequences. You should consult a tax advisor before entering into a split dollar arrangement.

On July 30, 2002, President Bush signed into law significant accounting and corporate governance reform legislation, known as the Sarbanes-Oxley Act of 2002 (the “Act”).  The Act prohibits, with limited exceptions, publicly-traded companies, including non-U.S. companies that have securities listed on exchanges in the United States, from extending, directly or through a subsidiary, many types of personal loans to their directors or executive officers.  It is possible that this prohibition may be interpreted as applying to split-dollar life insurance policies for directors and executive officers of such companies, since such insurance arguably can be viewed as involving a loan from the employer for at least some purposes.

Although the prohibition on loans of publicly-traded companies was generally effective as of July 30, 2002, there is an exception for loans outstanding as of the date of enactment, so long as there is no material modification to the loan terms and the loan is not renewed after July 30, 2002.  Any affected business contemplating the payment of a premium on an existing Policy, or the purchase of a new Policy, in connection with a split-dollar life insurance arrangement should consult legal counsel.

In addition, the IRS issued guidance that affects the tax treatment of split-dollar arrangements and the Treasury Department issued final regulations that would significantly affect the tax treatment of such arrangements.  The IRS guidance and the final regulations affect all split dollar arrangements, not just those involving publicly-traded companies.  Consult your qualified tax advisor with respect to the effect of this current and proposed guidance on your split dollar policy.
 
Policy Termination
 
Your Policy will terminate on the earliest of:

●
The maturity date.
●
The end of the grace period.
●
The date the insured dies.
●
The date the Policy is surrendered.

 
Assignment of the Policy
 
You may assign your Policy by giving us written notice.  We reserve the right, except to the extent prohibited by applicable laws, regulations, or actions of the State insurance commissioner, to require that the assignment will be effective only upon acceptance by us, and to refuse assignments or transfers at any time on a non-discriminatory basis.


Supplemental Benefits (Riders) 

The following supplemental benefits (riders) are available and may be added to your Policy. Monthly charges for these riders are deducted from the cash value as part of the monthly deductions. The riders available with the Policies do not build cash value and provide benefits that do not vary with the investment experience of the separate account. For purposes of the riders, the primary insured is the person insured under the Policy. These riders may not be available in all states, certain benefits and features may vary by state and they may be available under a different name in some states. Adding these supplemental benefits to an existing Policy or canceling them may have tax consequences; you should consult a tax advisor before doing so.

 
 
 


Primary Insured Rider ("PIR") and Primary Insured Rider Plus ("PIR Plus")

Under the PIR and the PIR Plus, we provide term insurance coverage on a different basis from the coverage in your Policy.

Features of PIR and PIR Plus:
●
The rider increases the Policy's death benefit by the rider's face amount .
 
●
The PIR may be purchased from issue ages 0-70.
 
●
The PIR Plus may be purchased from issue ages 18-70.
 
●
The PIR terminates when the insured turns 90 or 95 as stated in the rider issued to you (depending on the issue date and state availability), and the PIR Plus terminates when the insured turns 85 or 95.
 
●
The minimum purchase amount for the PIR and PIR Plus is $25,000. There is no maximum purchase amount.
 
●
We do not assess any additional surrender charge for PIR and PIR Plus.
 
●
Generally PIR and PIR Plus coverage costs less than the insurance coverage under the Policy, but has no cash value.
 
●
You may cancel or reduce your rider coverage without decreasing your Policy's specified amount.
 
●
You may generally decrease your specified amount without reducing your rider coverage.

Subject to the following conditions, on any Monthiversary while this rider is in force, you may convert this rider to a new Policy on the primary insured’s life without evidence of insurability.

Conditions to convert the rider:
●
Your request must be in writing and sent to our mailing address, in good order.
 
●
The primary insured has not reached his/her 70th birthday.
 
●
The new policy is any permanent insurance policy that we currently offer for conversion.
 
●
Subject to the minimum specified amount required for the new policy, the amount of the insurance under the new policy will equal the specified amount in force under the rider as long as it meets the minimum specified amount requirements of a Base Policy.
 
●
We will base your premium on the primary insured's underwriting class under the rider.
     
Termination of the rider:
The rider will terminate on the earliest of:
 
●
When the insured turns 90 or 95 as stated in the rider issued to you (depending on the issue date and state availability) for a PIR and when the insured turns 85 or 95 for PIR Plus; or
 
●
The date the Policy terminates for any reason except for the death of the primary insured; or
 
●
The date you fully convert the rider; or
 
●
The Monthiversary on which you terminate the rider by written request in good order, to our mailing address.

It may cost you less to reduce your PIR or PIR Plus coverage than to decrease your Policy’s specified amount, because we do not deduct a surrender charge in connection with your PIR or PIR Plus.  It may cost you more to keep a higher specified amount under the Base Policy, because the specified amount may have a cost of insurance that is higher than the cost of the same amount of coverage under your PIR or PIR Plus. Please refer to the applicable fee tables for your Policy to determine the respective charges for this rider.

 
 
 


You should consult your registered representative to determine if you would benefit from PIR or PIR Plus. We may discontinue offering PIR or PIR Plus at any time. We may also modify the terms of these riders for new policies.

Other Insured Rider

This rider may insure the spouse (or a non-spouse Other Insured where required by state law) and/or dependent children of the primary insured.  Please note that if a non-spouse Other Insured, as required under state law, is the Other Insured, there may be adverse tax consequences.  Subject to the terms of the rider, we will pay the face amount of the rider to the primary insured. Available for other insured issue ages 0-80, our minimum face amount for this rider is $10,000. The maximum face amount is the lesser of $500,000 or the amount of coverage on the primary insured.  The maximum number of Other Insured Riders that is allowed on any one Policy is five (5).  We will pay the rider's face amount when we receive proof, in good order at our mailing address , of the Other Insured's death.  Subject to the following conditions, on any Monthiversary while the rider is in force, you may convert it to a new policy on the Other Insured's life (without evidence of insurability).

Conditions to convert the rider:
●
Your request must be in writing and sent to our mailing address.
 
●
The Other Insured has not reached his/her 70th birthday.
 
●
The new policy is any permanent insurance policy that we currently offer.
 
●
Subject to the minimum specified amount required for the new policy, the amount of the insurance under the new policy will equal the face amount in force under the rider as long as it meets the minimum specified amount requirements of the original Policy.
 
●
We will base your premium on the Other Insured's underwriting class under the rider.
     
Termination of the rider:
The rider will terminate on the earliest of:
 
●
The maturity date of the Policy; or
 
●
The Policy anniversary nearest to the insured's 95th birthday; or
 
●
The date the Policy terminates for any reason except for death of the primary insured; or
 
●
The date of conversion of this rider; or
 
●
The Monthiversary on which the rider is terminated upon written request by the owner.

Children's Insurance Rider

This rider provides insurance on the primary insured’s children who are between the ages of  15 days and 18 years old on the effective date of the rider or when later added to the rider due to birth or legal adoption. The coverage for any insured child will terminate on the Monthiversary following that child’s 25th birthday. Our minimum face amount for this rider is $2,000 and the maximum face amount is $10,000. We will pay a death benefit once we receive proof in good order at our mailing address that the insured child died while the rider was in force for that child. At each child’s age 25 this rider may be converted to a new policy for up to five times the face amount of the rider. If the primary insured dies while the rider is in force, we will terminate the rider 31 days after the death, and we will offer a separate life insurance policy to each insured child for an amount equal to the face amount of the rider.

Accidental Death Benefit Rider

Available for primary insured issue ages 15- 59, our minimum face amount for this rider is $10,000. The maximum face amount available for the rider is the lesser of (i) $150,000 or (ii) 150% of the Policy's specified amount.

 
 
 


Subject to certain limitations, we will pay the specified amount if the death of the primary insured  results solely from accidental bodily injury where:

●
The death is caused by external, violent, and accidental means.
●
The death occurs within 90 days of the accident.
●
The death occurs while the rider is in force.

The rider will terminate on the earliest of:

●
The Policy anniversary nearest the primary insured's 70th birthday; or
●
The date the Policy terminates; or
●
The Monthiversary when th is rider is terminated at the owner's request.


Disability Waiver Rider

Subject to certain conditions, we will waive the Policy's monthly deductions while the insured is disabled. You may  purchase this rider if the primary insured’s  issue age is between 15 and55 years of age at the time the rider is purchased.

Before we waive any monthly deductions, we must receive proof, in good order, at our mailing address that:

●
The primary insured is totally disabled.
●
The rider was in force when the insured became disabled.
●
The primary insured’s total disability began  before the Policy anniversary nearest his/her 60th birthday; and
●
The primary insured’s total disability has existed continuously for at least six months.

We will not waive any deduction that becomes due more than one year before we receive written notice of your claim, after the primary insured’s recovery from disability, or after termination of this rider. While the primary insured is totally disabled and receiving benefits under this rider, no grace period will begin for the Policy provided that the cash value minus loans and accrued loan interest remains positive. It is possible that additional premium payments will be required to keep the Policy in force while the waiver of monthly deductions benefit is being paid.
 
 
Termination of the rider:
The rider will terminate on the earliest of:
 
 
 
· 
The Policy anniversary on or following the primary insured’s 60th birthday, unless the primary insured is totally disabled; or
 
· 
The date of recovery from disability (with respect to benefits accruing during the continuance of an existing total disability after the Policy anniversary on or following the primary insured’s 60th birthday); or
 
· 
The date the Policy terminates; or
 
· 
The Monthiversary on which this rider is terminated upon a written request by the owner.

Disability Waiver and Income Rider

This rider has the same benefits as the Disability Waiver Rider, but adds a monthly income benefit for up to 120 months. This rider may be purchased if the insured’s issue age is 15-55 years of age. The minimum income amount for this rider is $10. The maximum income amount is the lesser of 0.2% of your specified amount or $300 per month.

 
 
 


Terminal Illness Accelerated Death Benefit Rider

This rider allows us to pay all or a portion of the death benefit once we receive satisfactory proof in good order, at our mailing address that the insured is ill and has a life expectancy of one year or less. A doctor must certify the insured's life expectancy.

We will pay a "single-sum benefit" equal to:

●
The death benefit on the date we pay the single-sum benefit; multiplied by
●
The election percentage of the death benefit you elect to receive; divided by
●
1 + i) where "i" equals the interest rate determined under the Internal Revenue Code Section 846(c)(2), also known as the Applicable Federal Interest Rate ( 2.89 % for 201 2 ) or the Policy loan interest rate expressed in arrears, whichever is greater) (“discount factor”); minus
●
Any indebtedness at the time we pay the single-sum benefit, multiplied by the election percentage.

The maximum terminal illness death benefit used to determine the single-sum benefit as defined above is equal to:

●
The death benefit available under the Policy once we receive satisfactory proof that the insured is ill; plus
●
The benefit available under any PIR or PIR Plus in force.
●
A single-sum benefit may not be greater than $500,000.

The election percentage is a percentage that you select. It may not be greater than 100%.

We will not pay a benefit under the rider if the insured's terminal condition results from self-inflicted injuries that occur during the period specified in your Policy's suicide provision.

The rider terminates at the earliest of:

●
The date the Policy terminates.
●
The date a settlement option takes effect.
●
The date we pay a single-sum benefit.
●
The date you terminate the rider.

We do not assess an administrative charge for this rider; however, we do reduce the single sum benefit by a discount factor to compensate us for lost income due to the early payment of the death benefit. This rider may not be available in all states, or its terms may vary depending on a state's insurance law requirements.

For example, suppose before the owner elects the single sum benefit, a Policy has a $400,000 death benefit and a $10,000 loan balance.  The Applicable Federal Interest Rate for 201 2 is 2.89 % and the Policy loan interest rate is 5.2% in advance, or 5.49 %   in arrears (Policies issued before a certain date would use 7.4% in advance; see “Loans” in this prospectus . )  Because the greater of these is 5.49%, that is the interest rate that will be used to discount the single sum benefit.  The owner elects to accelerate 50% of the death benefit, so the single sum benefit equals $184,600, which is ( ($400,000 x 0.50 / 1.0549) - ($10,000 x 0.50) ) . After the acceleration, the remaining death benefit is $200,000, which is 50% of $400,000, and all Policy values will be reduced by 50%.

The tax consequences requesting payment under this rider are uncertain and you should consult a tax advisor before doing so.

 
 
 


Additional Information 

Sending Forms and Transaction Requests in Good Order

We cannot process your instructions to process a transaction relating to the P olicy until we have received your instructions in good order at our mailing address (or our administrative office or website as appropriate).  "Good order" means the actual receipt by us of the instructions relating to a transaction in writing or, when appropriate, by telephone or facsimile, or electronically along with all forms, information and supporting legal documentation (including any required spousal or joint owner's consents) we require in order to effect the transaction.  To be in "good order," instructions must be sufficiently clear so that we do not need to exercise any discretion to follow such instructions.

Sale of the Policies
 
Distribution and Principal Underwriting Agreement. TCI, our affiliate, serves as principal underwriter for the Policie s p ursuant to the terms of a principal underwriting and distribution agreement for the distribution and sale of the Policies .   We reimburse TCI for certain expenses it incurs in order to pay for the distribution of the Policies.

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

The selling firms 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. The sales commission paid to broker-dealers during 201 1 was, on average,   2.75%   of all premiums made during Policy years 2 – 10.  We will pay an additional trail commission of up to 0.75% of the Policy's subaccount value (excluding the fixed account) on the Policy anniversary if the cash value (minus amounts attributable to loans) equals at least $10,000. Additional sales commissions may also be payable on premiums paid as a result of an increase in specified amount.  Some selling firms may be required to return first year commissions (less surrender charge) if the Policy is not continued through the first two Policy years.

To the extent permitted by FINRA rules, Western Reserve, TCI, TFA and other affiliated 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, which may be referred to as “revenue sharing arrangements,” 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 his or her selling firm, depending on the agreement between the selling firm and its sales 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.

 
 
 


Special Compensation for Affiliated Wholesaling and Selling Firms.  Our parent company provides paid-in capital to TCI and pays for TCI’s operating and other expenses, including costs for facilities, legal and accounting services, and other internal administrative functions. Western Reserve’s main distribution channel is TFA , an affiliate, who sell Western Reserve products. (Note: Effective January 6, 2012, our affiliate, World Group Securities (“WGS”) merged with TFA.)

  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 , which 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.

Sales representatives and their managers at TFA 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  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 or loan guaranties to assist a firm or 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 or non-cash benefits, and may provide such persons with special incentive to sell our Policies.  For example, TFA’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 TFA’s representatives may be matched by TFA.  TFA’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.

Additional Compensation that We 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 and seminars, 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 among 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.  For instance, overrides were offered as incentives to our affiliates, TFA and Life Investors Financial Group, in 201 1 .


           No specific charge is assessed directly to policyowners 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 other incentive we pay, however, through fees and charges deducted under the Policy and other corporate revenue.

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.

 
 
 



Legal Proceedings

Western Reserve, like other life insurance companies, is involved in lawsuits, including class action lawsuits. In some lawsuits involving 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, at the present time, it appears that there are no pending or threatened lawsuits that are likely to have a material adverse impact on the separate account, on TCI's ability to perform under its principal underwriting agreement, or on Western Reserve's ability to meet its obligations under the Policy.


Financial Statements

The financial statements of Western Reserve and the separate account are included in the SAI.

Additional information regarding the investment performance of the portfolios appears in the fund prospectuses, which accompany this prospectus.

 
 
 

Glossary 

accounts
The options to which you can allocate your money.  The accounts include the fixed account and the subaccounts in the separate account.
   
administrative office
Our administrative office address is   570 Carillon Parkway, St. Petersburg, Florida, 33716.  Our phone number is 1-800-851-9777; our facsimile numbers are 1-727-299-1648 (for subaccount transfers only); and 1-727-299-1620 (for all other fax requests).  Our administrative office serves as the recipient of all website (www.westernreserve.com), telephonic and facsimile transactions, including, but not limited to transfer requests and premium payments made by wire transfer and through electronic credit and debit transactions (e.g., payments through direct deposit, debit transfers, and forms of e-commerce payments) .     Our hours are Monday – Friday from 8:30 a.m. – 7:00 p.m. Eastern Time .  Please do not send any checks , claims, correspondence or notices to this office; send them to the mailing address.
   
attained age
The issue age of the person insured, plus the number of completed years since the Policy date.
   
base policy
The WRL Freedom Equity Protector variable life insurance policy without any supplemental riders.
   
beneficiary(ies)
The person or persons you select to receive the death benefit from the Policy.  You name the primary beneficiary and contingent beneficiaries.
   
cash value
The sum of your Policy's value in the subaccounts and the fixed account.  If there is a Policy loan outstanding, the cash value includes any amounts held in our fixed account to secure the Policy loan.
   
death benefit proceeds
The amount we will pay to the beneficiary(ies) on the insured's death. The death benefit proceeds are reduced by any outstanding loan amount, including accrued interest, and any charges that are due and payable .    We will increase the death benefit proceeds by any interest you paid in advance on the loan for the period between the date of death and the next Policy anniversary.
   
face amount
The dollar amount of coverage stated in any rider that you may add to your Policy.
   
fixed account
An option to which you may allocate net premiums and cash value.  We guarantee that any amounts you allocate to the fixed account will earn interest at a declared rate.  The fixed account is part of our general account.  The fixed account is not available to you if your Policy was issued in the State of New Jersey.
   
free-look period
The period during which you may return the Policy and receive a refund as described in this prospectus.  The length of the free-look period varies by state.  The free-look period is listed in the Policy.
   
funds
Investment companies which are registered with the U.S. Securities and Exchange Commission.  The Policy allows you to invest in the portfolios of the funds through our subaccounts.  We reserve the right to add other registered investment companies to the Policy in the future.

 
 
 


   
good order
An instruction that is received by the Company, along with all forms, information and supporting legal documentation (including any required spousal or joint owner’s consents), that is sufficiently complete and clear so that the Company does not need to exercise any discretion to follow such instruction.  All orders to process a withdrawal request, a loan request, a request to surrender your Policy, a fund transfer request, or a death benefit claim must be in good order.
   
guideline premium
The level annual premium payment you must pay so that we can provide the benefits you selected through the maturity date.  The amount of the payment is based on particular facts relating to the insured and certain assumptions allowed by law.  The guideline premium is shown on your Policy schedule page.
   
in force
While coverage under the Policy is active and the insured's life remains insured.
   
indebtedness
Outstanding loans plus any accrued interest at the time your Policy lapsed.
   
initial premium
The amount you must pay before insurance coverage begins under the Policy.  The initial premium is shown on the schedule page of your Policy.
   
insured
The person whose life is insured by the Policy.
   
issue age
The insured's age on his or her birthday nearest to the Policy date.
   
lapse
When life insurance coverage ends because you do not have enough cash value in the Policy to pay the monthly deductions, the surrender charge and any outstanding loan amount, and you have not made a sufficient payment by the end of a grace period.
   
loan amount
The total amount of all outstanding Policy loans, including both principal and interest due.
   
loan reserve account
A part of the fixed account to which amounts are transferred as collateral for Policy loans.
   
mailing address
Our mailing address is 4333 Edgewood Road, N.E., Cedar Rapids, Iowa, 52499.  All premium payments and loan repayments made by check, and all claims, correspondence and notices must be sent to this address.
   
maturity date
The Policy anniversary nearest the insured's 95th birthday if the insured is living and the Policy is still in force.  It is the date when life insurance coverage under this Policy ends. You may continue coverage, at your option, under the Policy's extended maturity date benefit provision.
   
minimum monthly guarantee premium
The amount shown on your Policy schedule page that we use during the no lapse period to determine whether a grace period will begin. We make this determination whenever your net surrender value is not enough to meet monthly deductions.  If you pay your minimum monthly guarantee premium each month during the no lapse period, your Policy will not lapse, so long as you do not take a loan, increase the specified amount, or add a rider.
   
Monthiversary
This is the day of each month when we determine Policy charges and deduct them from cash value.  It is the same date each month as the Policy date.  If there is no valuation date in the calendar month that coincides with the Policy date, the Monthiversary is the next valuation date.

 
 
 


   
monthly deductions
The monthly Policy charge, plus the monthly cost of insurance, plus the monthly charge for any riders added to your Policy.
   
mortality and expense risk charge
This charge is a daily deduction from each subaccount that is taken before determining the unit value of that subaccount.
   
net premium
The part of your premium that we allocate to the fixed account or the subaccounts.  The net premium is equal to the premium you paid minus the premium expense charge and the premium collection charge.
   
net surrender value
The amount we will pay you if you surrender the Policy while it is in force.  The net surrender value on the date you surrender is equal to: the cash value minus any surrender charge, minus any outstanding loan amount, plus any interest you paid in advance on the loan for the period between the date of surrender and the next Policy anniversary.
   
no lapse date
Except as described in the section entitled “Extension of No Lapse Period Guarantee” , the no lapse date is defined as follows : For a Policy issued to any insured ages 0-60, the no lapse date is either the anniversary on which the insured's attained age is 65 or the tenth Policy anniversary, whichever is earlier.  For a Policy issued to an insured ages 61-75, the no lapse date is the fifth Policy anniversary.  The no lapse date is specified in your Policy, or as described in the endorsement.
   
no lapse period
The period of time between the Policy date and the no lapse date during which the Policy will not lapse if certain conditions are met.
   
NYSE
The New York Stock Exchange.
   
planned periodic premium
A premium payment you make in a level amount at a fixed interval over a specified period of time.
   
Policy date
The date when our underwriting process is complete, full life insurance coverage goes into effect, we begin to make monthly deductions, and your initial net premium is allocated to the  Transamerica AEGON Money Market VP subaccount.  The Policy date is shown on the schedule page of your Policy.  We measure Policy months, years, and anniversaries from the Policy date.
 
portfolio
One of the separate investment portfolios of a fund.
   
premium expense charge
The charge that is deducted from each premium payment before determining the net premium that will be credited to the cash value.
   
premiums
All payments you make under the Policy other than loan repayments.
   
record date
The date we record your Policy on our books and your Policy is issued, and we allocate your cash value from the  Transamerica AEGON Money Market VP subaccount to the accounts that you selected on your application.
   
separate account
The WRL Series Life Account. It is a separate investment account that is divided into subaccounts. We established the separate account to receive and invest net premiums under the Policy and other variable life insurance policies we issue.
   
specified amount
The minimum death benefit we will pay under the Policy provided the Policy is in force.  The initial specified amount of life insurance that you have selected is shown on the Policy’s schedule page, unless you increase or decrease the specified amount.  The in force specified amount (also referred to as the current specified amount) is the initial specified amount, adjusted for any increases or decreases in the Base policy’s specified amount.  In addition, we will reduce the specified amount by the dollar amount of any cash withdrawal if you choose the Option A (level) death benefit.

 
 
 


   
subaccount
A subdivision of the separate account that invests exclusively in shares of one investment portfolio of a fund.
   
surrender charge
If, during the first 15 Policy years, you fully surrender the Policy, we will deduct a surrender charge from your cash value.  We will deduct an additional surrender charge for 15 years following an increase in the specified amount.
   
termination
When the insured's life is no longer insured under the Policy or any rider, and the Policy and any rider are no longer in force.
   
valuation date
Each day the New York Stock Exchange is open for trading.  Western Reserve is open for business whenever the New York Stock Exchange is open. Please Note: Any day that Western Reserve is open for business, but the New York Stock Exchange is not open for normal trading, is not considered a valuation date.
   
valuation period
The period of time over which we determine the change in the value of the subaccounts.  Each valuation period begins at the close of normal trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time on each valuation date) and ends at the close of normal trading of the New York Stock Exchange on the next valuation date.
   
we, us, our, the  Company (Western Reserve)
Western Reserve Life Assurance Co. of Ohio.
   
written notice
The written notice you must sign and send us to request or exercise your rights as owner under the Policy.  To be complete, it must: (1) be in a form we accept, (2) contain the information and documentation that we determine we need to take the action you request, and (3) be received at our mailing address.
   
you, your (owner or policyowner)
The person entitled to exercise all rights as owner under the Policy.


 
 
 
                                                                                                                     
                                                                                                                     
                                                                                                                 
                                                                                                                    
 

P rospectus Back Cover

Personalized Illustrations of Policy Benefits

In order to help you understand how your Policy values could vary over time under different sets of assumptions, we will provide you, without charge and upon request, with certain personalized hypothetical illustrations showing the death benefit, net surrender value and cash value. These hypothetical illustrations will be based on the age and insurance risk characteristics of the insured persons under your Policy and such factors as the specified amount, death benefit option, premium payment amounts, and hypothetical rates of return (within limits) that you request. The illustrations are not a representation or guarantee of investment returns or cash value.

Inquiries

To learn more about the Policy, you should read the SAI dated the same date as this prospectus.  The SAI has been filed with the SEC and is incorporated herein by reference.

For a free copy of the SAI, for other information about the Policy, and to obtain personalized illustrations, please contact your registered representative or send your request to our mailing address at:

Western Reserve Life
4333 Edgewood Rd., NE
Cedar Rapids, IA 52499
1-800-851-9777
Facsimile: 1-727-299-1648
1-727-299-1620
(Monday - Friday from 8:30 a.m. - 7:00 p.m. Eastern Time )
www.westernreserve.com



More information about the Registrant (including the SAI) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.  For information on the operation of the Public Reference Room, please contact the SEC at 202-551-8090.  You may also obtain copies of reports and other information about the Registrant on the SEC’s website at http://www.sec.gov and copies of this information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC at 100 F Street, NE, Washington, D.C. 20549. The Registrant’s file numbers are listed below.

TCI serves as the principal underwriter for the Policies.  More information about TCI is available at http://www.finra.org or by calling 1-800-289-9999. You also can obtain an investor brochure from The Financial Regulatory Authority ("FINRA") describing its Public Disclosure Program.


SEC File No. 33-31140/811-4420


05/201 2
 

 
 
 

PART B

INFORMATION REQUIRED IN A
STATEMENT OF ADDITIONAL INFORMATION
 

 
 
 

May 1, 201 2




STATEMENT OF ADDITIONAL INFORMATION


WRL FREEDOM EQUITY PROTECTOR®
issued through
WRL Series Life Account
by
Western Reserve Life Assurance Co. of Ohio
Administrative Office:
570 Carillon Parkway
St. Petersburg, Florida 33716
 
Please direct transactions, claim forms, payments and other correspondence and notices as follows:
 
Transaction Type
Direct or Send to
Telephonic Transaction
1-727- 299-1800 or 1-800-851-9777 (toll free)
Facsimile Transaction
1-727-299-1648 (subaccount transfers only)
1-727-299-1620 (all other facsimile transactions)
Electronic Transaction
www.westernreserve.com
   
All payments made by check, and all claims, correspondence and notices
Mailing Address:  4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499

 



This Statement of Additional Information (“SAI”) expands upon subjects discussed in the current prospectus for the WRL Freedom Equity Protector® flexible premium variable life insurance policy offered by Western Reserve Life Assurance Co. of Ohio.  You may obtain a copy of the prospectus dated May 1, 201 2 , by calling our administrative office at 1-800-851-9777 (Monday – Friday from 8:30 a.m. – 7:00 p.m. Eastern time), or by writing to the mailing address at, Western Reserve Life, 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499.  The prospectus sets forth information that a prospective investor should know before investing in a Policy.  Terms used in this SAI have the same meanings as in the prospectus for the Policy.

This SAI is not a prospectus and should be read only in conjunction with the prospectuses for the Policy and the
Transamerica Series Trust – Initial Class, the Fidelity Variable Insurance Products  – Service Class 2 Shares, the ProFunds, the Access One Trust, the AllianceBernstein Variable Products Series Fund, and the Franklin Templeton Variable Insurance Products Trust.







WRL00186-05/201 2

 
 
 

Table of Contents           


 
Legal Matters4
 
5




 
 
 

In order to supplement the description in the prospectus, the following provides additional information about Western Reserve and the Policy, which may be of interest to a prospective purchaser.

The Policy – General Provisions                                                                                                                                                     

Ownership Rights

The Policy belongs to the owner named in the application.  The owner may exercise all of the rights and options described in the Policy.  The owner is the insured unless the application specifies a different person as the insured.  If the owner dies before the insured and no contingent owner is named, then ownership of the Policy will pass to the owner's estate. The owner may exercise certain rights described below.

     
Changing the Owner
·  
Change the owner by providing written notice to us in good order, at our mailing address at any time while the insured is alive and the Policy is in force.
 
· 
Change is effective as of the date that the written notice is accepted by us in good order, at our mailing address.
 
· 
Changing the owner does not automatically change the beneficiary.
 
· 
Changing the owner may have tax consequences. You should consult a tax advisor before changing the owner.
 
· 
We are not liable for payments we made before we received the written notice at our mailing address.

Choosing the Beneficiary
· 
The owner designates the beneficiary (the person to receive the death benefit when the insured dies) in the application.
 
· 
If the owner designates more than one beneficiary, then each beneficiary shares equally in any death benefit proceeds unless the beneficiary designation states otherwise.
 
· 
If the beneficiary dies before the insured, then any contingent beneficiary becomes the beneficiary.
 
· 
If both the beneficiary and contingent beneficiary die before the insured, then the death benefit will be paid to the owner or the owner's estate upon the insured's death.

Changing the Beneficiary
· 
The owner changes the beneficiary by providing written notice to us in good order, at our mailing address.
· 
Change is effective as of the date the owner signs the written notice.
 
· 
We are not liable for any payments we made before we received the written notice at our mailing address.

Assigning the Policy
· 
The owner may assign Policy rights while the insured is alive.
 
· 
The owner retains any ownership rights that are not assigned.
 
· 
Assignee may not change the owner or the beneficiary, and may not elect or change an optional method of payment.  Any amount payable to the assignee will be paid in a lump sum.
 
· 
Claims under any assignment are subject to proof of interest and the extent of the assignment.
 
· 
We are not:
   
>
bound by any assignment unless we receive a written notice of the assignment at our mailing address;
   
>
responsible for the validity of any assignment;
   
>
liable for any payment we made before we received written notice of the assignment at our mailing address; or
   
>
bound by any assignment which results in adverse tax consequences to the owner, insured(s) or beneficiary(ies).
 
· 
Assigning the Policy may have tax consequences. You should consult a tax advisor before assigning the Policy.





Our Right to Contest the Policy

In issuing the Policy, we rely on all statements made by or for the insured in the application or in a supplemental application.  Therefore, if you make any material misrepresentation of a fact in the application (or any supplemental application), then we may contest the Policy's validity or may resist a claim under the Policy for two years from the Policy date. For any portion of the specified amount that is issued as a result of a conversion, the contestability period is measured from the later of the policy date of the policy that was converted or the latest effective date of reinstatement of the converted policy.

A new two year contestability period shall apply to each increase in specified amount that requires evidence of insurability, beginning on the effective date of each increase and will apply only to statements made in the application for the increase.

In the absence of fraud, we cannot bring any legal action to contest the validity of the Policy after the Policy or requested increase that requires evidence of insurability, has been in force during the insured's lifetime for two years from the Policy date, or if reinstated, for two years from the date of reinstatement.

Suicide Exclusion

If the insured commits suicide, while sane or insane, within two years of the Policy date (or two years from the reinstatement date, if the Policy lapses and is reinstated), the Policy will terminate and our liability is limited to an amount equal to the premiums paid, less any outstanding loan amount, and less any cash withdrawals.  We will pay this amount to the beneficiary in one sum. For any portion of the specified amount that is issued as a result of a conversion, the suicide period is measured from the later of the Policy date of the Policy that was converted or the latest effective date of reinstatement of the converted policy.

If the insured commits suicide, while sane or insane, within two years from the effective date of any increase in specified amount that requires evidence of insurability, our liability with respect to such increase will be limited to its cost of insurance charges and any per unit charges and return of premium.

Misstatement of Age or Gender

If the age or gender of the insured was stated incorrectly in the application or any supplemental application, then the death benefit will be adjusted based on what the cost of insurance charge for the most recent monthly deduction would have purchased based on the insured's correct age and gender.

Modifying the Policy

Only our President or Secretary may modify the Policy or waive any of our rights or requirements under the Policy. Any modification or waiver must be in writing.  No agent may bind us by making any promise not contained in the Policy.

If we modify the Policy, we will provide you notice and we will make appropriate endorsements to the Policy.

Mixed and Shared Funding

Shares of the portfolios are sold to other separate accounts that we (or our affiliates) establish to support other variable annuity contracts and variable life insurance policies we (or our affiliates) issue.  Shares of some portfolios are also sold to separate accounts of unaffiliated life insurance companies.  It is possible in the future that you may be disadvantaged when the separate account invests in a portfolio that also (1) invests in separate accounts of unaffiliated life insurance companies, and (2) invests in separate accounts (including those of our affiliates) funding variable annuity contracts.

Neither we nor the funds currently foresee that you would be disadvantaged in this manner.  Each fund’s board of directors/trustees monitors its fund to identify any material conflicts that may arise between the interests of owners of variable annuity contracts and those of owners of variable life insurance policies, as well as between the interests of owners of contracts issued by different unaffiliated life insurance companies (“material conflicts”).  Such boards of directors/trustees are obligated to determine what action, if any, must be taken to resolve any material conflicts that arise.  Such action could include requiring the separate account, or separate accounts of affiliated or unaffiliated insurance companies, to withdraw their investments in a portfolio and such withdrawals could have adverse consequences to owners.  In addition, we have entered into an agreement with each fund on behalf of the separate account governing the separate account’s investment in that fund’s portfolios (the “participation agreement”).  The participation agreement contains provisions designed to protect owners in the event of material conflicts.

Material conflicts affecting owners could result in a number of situations including: (1) differences in state insurance law applicable to different life insurance companies whose separate accounts are invested in a portfolio; (2) changes in tax law or regulations that result in changes to a portfolio that have a disparate effect on different life insurance companies whose separate accounts are invested in the portfolio, or on different types of variable contracts invested in the portfolio; (3) actions or omissions by a fund that operate to the advantage of one group of variable contract owners at the expense of another group or groups; (4) changes to a portfolio approved at a shareholders’ meeting as a result of voting by one group of variable contract owners to the disadvantage of another group or groups;  and (5) disparate provisions in the participation agreements of different unaffiliated insurance companies or the pursuit of remedies under such an agreement by one insurance company to the detriment of one or more other insurance companies.

Notwithstanding our reasonable efforts and those of the funds, there is the risk that actions or omissions of the fund in response to material conflicts may disadvantage our policyowners.  If we believe that a fund’s response to any of these events or conflicts is insufficient to protect our policyowners, we will undertake appropriate actions on our own, which may include withdrawing the separate account’s investments in the fund.

If a fund's Board of Directors/Trustees were to conclude that separate funds should be established for variable life insurance and variable annuity separate accounts, Western Reserve will bear the attendant expenses, but variable life insurance policyowners and variable annuity contract owners would no longer have the economies of scale resulting from a larger combined fund.

Addition, Deletion, or Substitution of Portfolios

We do not guarantee that each portfolio will always be available for investment through the Policy.  We reserve the right, subject to compliance with applicable law, to add new portfolios, close existing portfolios, or substitute portfolio shares that are held by any subaccount for shares of a different portfolio.  New or substitute portfolios may have different fees and expenses and their availability may be limited to certain classes of purchasers.  We will only add, delete or substitute shares of another portfolio of a fund (or of another open-end, registered investment company) if the shares of a portfolio are no longer available for investment, or if in our judgment further investment in any portfolio would become inappropriate in view of the purposes of the separate account.  We will not add, delete or substitute any 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 may also decide to purchase for the separate account securities from other portfolios.  We reserve the right to transfer separate account assets to another separate account that we determine to be associated with the class of contracts to which the Policy belongs.

We also reserve the right to establish additional subaccounts of the separate account, each of which would invest in a new portfolio of a fund, or in shares of another investment company, with specified investment objectives.  We may establish new subaccounts when, in our sole discretion, marketing, tax or investment conditions warrant.  We will make any new subaccounts available to existing owners on a basis we determine. We may also eliminate one or more subaccounts for the same reasons as stated above.

In the event of any such substitution or change, we may make such changes in this and other policies as may be necessary or appropriate to reflect such substitution or change.  If we deem it to be in the best interests of persons having voting rights under the Policies, and when permitted by law, the separate account may be (1) operated as a management company under the 1940 Act, (2) deregistered under the 1940 Act in the event such registration is no longer required, (3) managed under the direction of a committee, or (4) combined with one or more other separate accounts, or subaccounts.

Additional Information                                                                                                                                                     


Additional Information about Western Reserve and the Separate Account

Western Reserve is a stock life insurance 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, a public company under Dutch law.  Western Reserve's administrative office is located at 570 Carillon Parkway, St. Petersburg, Florida 33716-1202 and the mailing address is 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499.

Western Reserve was initially incorporated in 1957 under the laws of Ohio and is subject to regulation by the Insurance Department of the State of Ohio, as well as by the insurance departments of all other states and jurisdictions in which it does business.  Western Reserve is licensed to sell insurance in all states (except New York), Puerto Rico, Guam, and in the District of Columbia.  Western Reserve submits annual statements on its operations and finances to insurance officials in all states and jurisdictions in which it does business.  The Policy described in the prospectus has been filed with, and where required, approved by, insurance officials in those jurisdictions in which it is sold.

Western Reserve established the separate account as a separate investment account under Ohio law in 1985.  We own the assets in the separate account and are obligated to pay all benefits under the Policies.  The separate account is used to support other life insurance policies of Western Reserve, as well as for other purposes permitted by law.  The separate account is registered with the SEC as a unit investment trust under the 1940 Act and qualifies as a "separate account" within the meaning of the federal securities laws.

Western Reserve holds the assets of the separate account physically segregated and apart from the general account. Western Reserve maintains records of all purchases and sales of portfolio shares by each of the subaccounts.  A blanket bond was issued to AEGON USA, Inc. ("AEGON USA") in the aggregate amount of $12 million, covering all of the employees of AEGON USA and its affiliates, including Western Reserve. A Stockbrokers Blanket Bond, issued to AEGON U.S.A. Securities, Inc. providing fidelity coverage, covers the activities of registered representatives of TCI to a limit of $10 million.

Legal Matters

Arthur D. Woods, Vice President and Senior Counsel of Western Reserve, has provided legal advice on certain matters in connection with the issuance of the Policy.

Variations in Policy Provisions

Certain provisions of the Policy may vary from the descriptions in the prospectus, depending on when and where the Policy was issued, in order to comply with different state laws.  These variations may include differences in charges, or Policy features may be unavailable, or known by a different name.  Please refer to your Policy; any variations will be included in your Policy or in riders or endorsements attached to your Policy.

Personalized Illustrations of Policy Benefits

In order to help you understand how your Policy values would vary over time under different sets of assumptions, we will provide you with certain personalized illustrations upon request.  These will be based on the age and insurance risk characteristics of the insured persons under your Policy and such factors as the specified amount, death benefit option, premium payment amounts, and rates of return (within limits) that you request.

The illustrations are not a representation or guarantee of investment returns or cash value.  You may request illustrations that reflect the expenses of the portfolios in which you intend to invest.

Sale of the Policies
 
We no longer offer the Policies to the public.

 TCI, serves as principal underwriter for the Policies.  TCI’s home office is located at 4600 S. Syracuse Street, Suite 1100, Denver, Colorado 80237.  TCI is an affiliate of Western Reserve and, like Western Reserve, 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.
 
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.  Sales representatives are appointed as our insurance agents.

During fiscal year 201 1 , 20 10 and 200 9 , the amounts paid to TCI in connection with all Policies sold through the separate account were $17,156,676, $20,084,068 and $22,399,79 3, respectively. TCI passes through to selling firms commissions it receives to selling firms for their sales and does not retain any portion of any commissions.   Our parent company provides paid-in capital to TCI and pays for TCI's operating and other expenses, including overhead, legal and accounting fees.

We and/or TCI or TFA 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 expenses incurred by them.  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.

Reports to Owners

At least once each year, or more often as required by law, we will mail to policyowners at their last known address a report showing the following information as of the end of the report period:


>
the current cash value
>
any activity since the last report
>
the current net surrender value
>
projected values
>
the current death benefit
>
investment experience of each subaccount
>
outstanding loans
>
any other information required by law

You may request additional copies of reports, but we may charge a fee for such additional copies.  In addition, we will send written confirmations of any premium payments and other financial transactions you request including: changes in specified amount, changes in death benefit option, transfers, partial withdrawals, increases in loan amount, loan interest payments, loan repayments, lapses and reinstatements.  We also will send copies of the annual and semi-annual report to shareholders for each portfolio in which you are indirectly invested.

Records

We will maintain all records relating to the separate account and the fixed account.

Independent Registered Public Accounting Firm

The financial statements of the separate account at December 31, 201 1 , and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Western Reserve at December 31, 201 1 and 20 10 , and for each of the three years in the period ended December 31, 201 1 , appearing herein, have been audited by Ernst & Young LLP, 801 Grand Avenue, Suite 3000, Des Moines, Iowa 50309, independent registered public accounting firm, as set forth in the firm’s respective reports thereon appearing elsewhere herein, and are included in reliance upon such reports given upon the authority of such firm as experts in accounting and auditing.
 
 
Experts

Actuarial matters included in this SAI have been examined by Lorne Schinbein, Vice President and Managing Actuary of Western Reserve, located at 570 Carillon Parkway, St. Petersburg, Florida  33716, as stated in the opinion filed as an exhibit to the registration statement.


Underwriters                                                                                                                                                     

Underwriting Standards

This Policy uses mortality tables that distinguish between men and women.  As a result, the Policy pays different benefits to men and women of the same age.  Montana prohibits our use of actuarial tables that distinguish between males and females to determine premiums and policy benefits for policies issued on the lives of its residents.  Therefore, we will base the premiums and benefits in Policies that we issue in Montana, to insure residents of that state, on actuarial tables that do not differentiate on the basis of gender.

Your cost of insurance charge  is based on a number of factors, including, but not limited to, the insured's gender, issue age on the Policy date, issue age at the time of any increase in specified amount, length of time from the Policy date or from the date of any requested increase in specified amount, and underwriting class. We currently place insureds into the following underwriting classes:


· 
ultimate select, non-tobacco use;
· 
select, non-tobacco use;
· 
ultimate standard, tobacco use;
· 
standard, tobacco use; and
· 
juveniles – under 18.

We also place insureds in various sub-standard underwriting classes, which involve a higher mortality risk and higher charges.  We generally charge higher rates for insureds that use tobacco.

Performance Data                                                                                                                                                     

Other Performance Data in Advertising Sales Literature

We may compare each subaccount's performance to the performance of:
· 
other variable life issuers in general;
· 
variable life insurance policies which invest in mutual funds with similar investment objectives and policies, as reported by Lipper Analytical Services, Inc. ("Lipper") and Morningstar, Inc. ("Morningstar"); and other services, companies, individuals, or industry or financial publications (e.g., Forbes, Money, The Wall Street Journal, Business Week, Barron's, Kiplinger's Personal Finance, and Fortune);
 
>
Lipper and Morningstar rank variable annuity contracts and variable life policies.  Their performance analysis ranks such policies and contracts on the basis of total return, and assumes reinvestment of distributions; but it does not show sales charges, redemption fees or certain expense deductions at the separate account level.
· 
the Standard & Poor's Index of 500 Common Stocks, or other widely recognized indices;
 
>
unmanaged indices may assume the reinvestment of dividends, but usually do not reflect deductions for the expenses of operating or managing an investment portfolio; or
· 
other types of investments, such as:
 
>
certificates of deposit;
 
>
savings accounts and U.S. Treasuries;
 
>
certain interest rate and inflation indices (e.g., the Consumer Price Index); or
 
>
indices measuring the performance of a defined group of securities recognized by investors as representing a particular segment of the securities markets (e.g.,   Nasdaq 100 Index, NYSE Acra Oil Index, Morgan Stanley High-Technology 35 Index, PHLX Gold/Silver Index, or S&P 100 Index).

Western Reserve's Published Ratings

We may publish in advertisements, sales literature, or reports we send to you the ratings and other information that an independent ratings organization assigns to us.  These organizations include: A.M. Best Company, Moody's Investors Service, Inc., Standard & Poor's Insurance Rating Services, and Fitch Ratings.  These ratings are opinions regarding an operating insurance company's financial capacity to meet the obligations of its insurance policies in accordance with their terms.  These ratings do not apply to the separate account, the subaccounts, the funds or their portfolios, or to their performance.

Financial Statements                                                                                                                                                     

Western Reserve's statutory-basis financial statements and schedules, which include the Report of Independent Registered Public Accounting Firm, appear on the following pages.  These statutory-basis financial statements and schedules should be distinguished from the separate account's financial statements and you should consider these statutory-basis financial statements and schedules only as bearing upon Western Reserve's ability to meet our obligations under the Policies.  You should not consider our statutory-basis financial statements and schedules as bearing upon the investment performance of the assets held in the separate account.

Western Reserve's statutory-basis financial statements and schedules at December 31, 201 1 and 20 10 , and for each of the three years in the period ended December 31, 201 1 , have been prepared on the basis of statutory accounting principles rather than U.S. generally accepted accounting principles.

The separate account’s financial statements for the period ended December 31, 201 1 , which include the Report of Independent Registered Public Accounting Firm, also appear on the following pages.


 
 
 


 
 
 

FINANCIAL STATEMENTS
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Years Ended December 31, 2011 and 2010

S-1

 
 
 

 
Report of Independent Registered Public Accounting Firm
 
The Board of Directors and Contract Owners
of the WRL Series Life Account
 
Western Reserve Life Assurance Co. of Ohio
 
We have audited the accompanying statements of assets and liabilities of each of the subaccounts constituting the WRL Series Life Account (the Separate Account) (comprised of the Transamerica JPMorgan Core Bond VP, Transamerica Asset Allocation - Conservative VP, Transamerica Asset Allocation - Growth VP, Transamerica Asset Allocation - Moderate Growth VP, Transamerica Asset Allocation - Moderate VP, Transamerica MFS International Equity VP, Transamerica Clarion Global Real Estate Securities VP, Transamerica JPMorgan Tactical Allocation VP, Transamerica International Moderate Growth VP, Transamerica JPMorgan Mid Cap Value VP, Transamerica JPMorgan Enhanced Index VP, Transamerica BlackRock Large Cap Value VP, Transamerica AEGON High Yield Bond VP, Transamerica PIMCO Total Return VP, Transamerica Morgan Stanley Capital Growth VP, Transamerica T. Rowe Price Small Cap VP, Transamerica Third Avenue Value VP, Transamerica Multi-Managed Balanced VP, Transamerica AllianceBernstein Dynamic Allocation VP, Transamerica WMC Diversified Growth VP, Transamerica AEGON Money Market VP, Transamerica Systematic Small/Mid-Cap Value VP, Transamerica AEGON U.S. Government Securities VP, Transamerica Morgan Stanley Mid-Cap Growth VP, Transamerica Index 50 VP, Transamerica Index 75 VP, Transamerica Efficient Markets VP, Transamerica Hanlon Balanced VP, Transamerica Hanlon Growth & Income VP, Transamerica Hanlon Growth VP, Transamerica Hanlon Income VP, Transamerica Multi Managed Large Cap Core VP, Transamerica Janus Balanced VP, Transamerica Jennison Growth VP, Transamerica AEGON Active Asset Allocation - Conservative VP, Transamerica AEGON Active Asset Allocation - Moderate VP, Transamerica AEGON Active Asset Allocation - Moderate Growth VP, Transamerica BlackRock Global Allocation VP, Transamerica BlackRock Tactical Allocation VP, Fidelity VIP Contrafund®, Fidelity VIP Equity-Income, Fidelity VIP Growth Opportunities, Fidelity VIP Index 500, ProFund VP Bull, ProFund VP NASDAQ-100, ProFund VP Small-Cap, ProFund VP Short Small-Cap, ProFund VP Money Market, ProFund VP Europe 30, ProFund VP Oil & Gas, ProFund VP Ultra Small-Cap, ProFund VP Utilities, ProFund VP Consumer Services, ProFund VP Pharmaceuticals, ProFund VP Small-Cap Value, ProFund VP Falling U.S. Dollar, ProFund VP Emerging Markets, ProFund VP International, ProFund VP Asia 30, ProFund VP Japan, ProFund VP Short NASDAQ-100, ProFund VP U.S. Government Plus, ProFund VP Basic Materials, ProFund VP Financials, ProFund VP Precious Metals, ProFund VP Telecommunications, ProFund VP Mid-Cap, ProFund VP Short Emerging Markets, ProFund VP Short International, Access VP High Yield, Franklin Templeton VIP Founding Funds Allocation, and AllianceBernstein Balanced Wealth Strategy subaccounts) as of December 31, 2011, and the related statements of operations and changes in net assets for the periods indicated thereon.

S-2

 
 
 
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 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 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 constituting the WRL Series Life Account at December 31, 2011, and the results of their operations and changes in net assets for the periods indicated thereon, in conformity with U.S. generally accepted accounting principles.
 
/s/ Ernst & Young LLP
 
Des Moines, Iowa
April 18, 2012
S-3

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011

     
Transamerica JPMorgan Core Bond VP
Transamerica Asset Allocation - Conservative VP
Transamerica Asset Allocation - Growth VP
Transamerica Asset Allocation - Moderate Growth VP
     
Subaccount
Subaccount
Subaccount
Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
        4,302,599.552
        3,907,876.002
      29,327,286.048
      26,773,949.698
   
Cost
 $          53,103,027
 $          36,304,499
 $        293,462,581
 $        298,046,357
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $          55,847,742
 $          40,133,887
 $        238,137,563
 $        271,487,850
 
 Receivable for units sold
                             7
                           21
                             -
                             -
Total assets
             55,847,749
             40,133,908
           238,137,563
           271,487,850
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                         289
                           46
     
 $          55,847,749
 $          40,133,908
 $        238,137,274
 $        271,487,804
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $          55,847,749
 $          40,133,908
 $        238,137,274
 $        271,487,804
Total net assets
 $          55,847,749
 $          40,133,908
 $        238,137,274
 $        271,487,804
             
Accumulation units outstanding
      
 
M&E - 0.90%
               1,178,300
               2,313,709
             12,367,346
             13,419,554
 
M&E - 0.30%
                      2,654
                             -
                             -
                             -
 
M&E - 0.75%
                  291,706
                  314,511
               5,231,663
               5,190,873
 
M&E - 0.00%
                      1,882
                    23,730
                  102,809
                  127,608
 
M&E - 1.50%
                      9,300
                    12,060
                  145,476
                    91,381
             
Accumulation unit value
        
 
M&E - 0.90%
 $           43.482138
 $           15.193424
 $           13.330327
 $           14.483238
 
M&E - 0.30%
 $           10.691260
 $           10.092178
 $             9.170632
 $             9.574654
 
M&E - 0.75%
 $           15.222704
 $           14.509368
 $           13.559765
 $           14.419787
 
M&E - 0.00%
 $           14.500627
 $           11.991002
 $             9.581693
 $           10.625681
 
M&E - 1.50%
 $           12.529330
 $           11.014504
 $             9.288869
 $           10.089827
             
See accompanying notes.
        


S-4

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011




     
Transamerica Asset Allocation - Moderate VP
Transamerica MFS International Equity VP
Transamerica Clarion Global Real Estate Securities VP
Transamerica JPMorgan Tactical Allocation VP
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
        8,049,473.576
        5,742,137.054
        4,019,030.619
        4,925,785.168
   
Cost
 $          84,388,994
 $          45,457,719
 $          55,575,509
 $          68,932,229
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $          82,587,599
 $          35,716,092
 $          39,627,642
 $          58,567,586
 
 Receivable for units sold
                         892
                             -
                             -
                             -
Total assets
             82,588,491
             35,716,092
             39,627,642
             58,567,586
Liabilities
        
 
Payable for units redeemed
                             -
                           95
                         391
                           13
     
 $          82,588,491
 $          35,715,997
 $          39,627,251
 $          58,567,573
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $          82,588,491
 $          35,715,997
 $          39,627,251
 $          58,567,573
Total net assets
 $          82,588,491
 $          35,715,997
 $          39,627,251
 $          58,567,573
             
Accumulation units outstanding
      
 
M&E - 0.90%
               4,280,639
               2,793,322
               1,455,695
               1,633,512
 
M&E - 0.30%
                             -
                         370
                             -
                             -
 
M&E - 0.75%
               1,191,694
                    50,138
                  212,212
                  467,752
 
M&E - 0.00%
                    24,395
                      5,248
                      7,931
                      4,394
 
M&E - 1.50%
                    15,055
                      6,441
                    12,268
                      5,232
             
Accumulation unit value
        
 
M&E - 0.90%
 $           15.095966
 $           12.597949
 $           24.586641
 $           32.292525
 
M&E - 0.30%
 $             9.863013
 $             8.783451
 $             9.238794
 $           10.196995
 
M&E - 0.75%
 $           14.706757
 $             8.368197
 $           17.229612
 $           12.235601
 
M&E - 0.00%
 $           11.553872
 $             8.600732
 $             8.442756
 $           10.390092
 
M&E - 1.50%
 $           10.647176
 $             8.991254
 $             9.236027
 $             9.263324
             
See accompanying notes.
        


S-5

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Transamerica International Moderate Growth VP
Transamerica JPMorgan Mid Cap Value VP
Transamerica JPMorgan Enhanced Index VP
Transamerica BlackRock Large Cap Value VP
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
        1,324,911.722
           514,848.883
           366,732.899
        4,243,410.506
   
Cost
 $          11,477,212
 $            6,847,421
 $            4,110,759
 $          62,083,529
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $          10,957,020
 $            6,976,202
 $            4,287,108
 $          58,346,894
 
 Receivable for units sold
                           12
                             -
                             5
                             -
Total assets
             10,957,032
               6,976,202
               4,287,113
             58,346,894
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                             -
                             6
     
 $          10,957,032
 $            6,976,202
 $            4,287,113
 $          58,346,888
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $          10,957,032
 $            6,976,202
 $            4,287,113
 $          58,346,888
Total net assets
 $          10,957,032
 $            6,976,202
 $            4,287,113
 $          58,346,888
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  702,739
                  382,165
                  248,600
               2,319,317
 
M&E - 0.30%
                         345
                             -
                             -
                             -
 
M&E - 0.75%
                  435,099
                      1,518
                    87,753
                  349,301
 
M&E - 0.00%
                    18,679
                             -
                           26
                    11,623
 
M&E - 1.50%
                    38,495
                             -
                         625
                      9,153
             
Accumulation unit value
        
 
M&E - 0.90%
 $             9.136188
 $           18.193630
 $           12.589277
 $           22.852041
 
M&E - 0.30%
 $             9.109469
 $             9.796688
 $             9.662071
 $             9.673295
 
M&E - 0.75%
 $             9.213557
 $           15.311669
 $           13.112379
 $           14.753900
 
M&E - 0.00%
 $             9.680775
 $                          -
 $           10.190408
 $             9.259188
 
M&E - 1.50%
 $             8.933383
 $                          -
 $           10.405459
 $             9.241037
             
See accompanying notes.
        
             


S-6

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Transamerica AEGON High Yield Bond VP
Transamerica PIMCO Total Return VP
Transamerica Morgan Stanley Capital Growth VP
Transamerica T. Rowe Price Small Cap VP
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
        2,076,527.342
        2,850,715.207
        2,558,302.720
        2,747,305.982
   
Cost
 $          15,492,617
 $          33,158,895
 $          30,532,160
 $          23,435,390
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $          15,387,068
 $          33,381,875
 $          28,218,079
 $          26,401,610
 
 Receivable for units sold
                             -
                             2
                             -
                         218
Total assets
             15,387,068
             33,381,877
             28,218,079
             26,401,828
Liabilities
        
 
Payable for units redeemed
                           11
                             -
                         886
                             -
     
 $          15,387,057
 $          33,381,877
 $          28,217,193
 $          26,401,828
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $          15,387,057
 $          33,381,877
 $          28,217,193
 $          26,401,828
Total net assets
 $          15,387,057
 $          33,381,877
 $          28,217,193
 $          26,401,828
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  751,872
               1,800,455
               1,727,141
               1,491,318
 
M&E - 0.30%
                             -
                             -
                             -
                             -
 
M&E - 0.75%
                  172,244
                  297,177
                    76,014
                  179,699
 
M&E - 0.00%
                      3,400
                    14,698
                      5,547
                      3,153
 
M&E - 1.50%
                      7,169
                      4,743
                      3,027
                    11,768
             
Accumulation unit value
        
 
M&E - 0.90%
 $           16.628200
 $           15.935757
 $           15.699944
 $           15.613670
 
M&E - 0.30%
 $           10.069452
 $           10.572357
 $             9.025306
 $             9.528298
 
M&E - 0.75%
 $           15.956336
 $           14.891012
 $           13.310722
 $           16.298908
 
M&E - 0.00%
 $           13.601577
 $           14.062662
 $           10.349486
 $           13.469755
 
M&E - 1.50%
 $           12.575323
 $           12.292854
 $           10.560835
 $           12.365228
             
See accompanying notes.
        


S-7

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Transamerica Third Avenue Value VP
Transamerica Multi-Managed Balanced VP
Transamerica AllianceBernstein Dynamic Allocation VP
Transamerica WMC Diversified Growth VP
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
        5,938,765.878
        8,499,927.620
           368,239.223
      32,976,498.567
   
Cost
 $          85,081,667
 $          94,583,673
 $            2,919,665
 $        793,151,599
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $          57,606,029
 $        109,394,068
 $            3,015,879
 $        709,984,014
 
 Receivable for units sold
                             1
                             -
                           98
                             -
Total assets
             57,606,030
           109,394,068
               3,015,977
           709,984,014
Liabilities
        
 
Payable for units redeemed
                             -
                           14
                             -
                    38,923
     
 $          57,606,030
 $        109,394,054
 $            3,015,977
 $        709,945,091
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $          57,606,030
 $        109,394,054
 $            3,015,977
 $        709,945,091
Total net assets
 $          57,606,030
 $        109,394,054
 $            3,015,977
 $        709,945,091
             
Accumulation units outstanding
      
 
M&E - 0.90%
               2,378,502
               6,605,462
                  172,623
             50,175,110
 
M&E - 0.30%
                             -
                         607
                             -
                      2,010
 
M&E - 0.75%
                  257,264
                  115,508
                    28,910
                  750,878
 
M&E - 0.00%
                    25,205
                      9,106
                         985
                    37,580
 
M&E - 1.50%
                    14,337
                      3,464
                         338
                    20,325
             
Accumulation unit value
        
 
M&E - 0.90%
 $           22.618953
 $           16.256331
 $           15.076699
 $           13.938751
 
M&E - 0.30%
 $             8.215996
 $             9.953191
 $             9.995169
 $             9.204676
 
M&E - 0.75%
 $           13.515298
 $           16.022906
 $           13.803757
 $           13.333404
 
M&E - 0.00%
 $             8.260693
 $           12.732355
 $           11.240470
 $             9.369730
 
M&E - 1.50%
 $             8.480752
 $           11.752470
 $             9.643778
 $             9.070160
             
See accompanying notes.
        


S-8

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Transamerica AEGON Money Market VP
Transamerica Systematic Small/Mid-Cap Value VP
Transamerica AEGON U.S. Government Securities VP
Transamerica Morgan Stanley Mid-Cap Growth VP
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
      49,515,147.230
        1,754,812.920
           917,748.970
      11,807,031.163
   
Cost
 $          49,515,147
 $          30,659,986
 $          11,942,144
 $        288,508,011
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $          49,515,147
 $          35,587,606
 $          12,040,866
 $        320,324,755
 
 Receivable for units sold
                         333
                             -
                           83
                             -
Total assets
             49,515,480
             35,587,606
             12,040,949
           320,324,755
Liabilities
        
 
Payable for units redeemed
                             -
                             8
                             -
                      5,336
     
 $          49,515,480
 $          35,587,598
 $          12,040,949
 $        320,319,419
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $          49,515,480
 $          35,587,598
 $          12,040,949
 $        320,319,419
Total net assets
 $          49,515,480
 $          35,587,598
 $          12,040,949
 $        320,319,419
             
Accumulation units outstanding
      
 
M&E - 0.90%
               2,153,913
               1,497,292
                  662,393
               6,337,221
 
M&E - 0.30%
                             2
                         191
                             -
                      1,487
 
M&E - 0.75%
                  419,476
                  317,668
                  168,257
                  499,755
 
M&E - 0.00%
                    13,403
                      6,553
                      4,531
                    10,546
 
M&E - 1.50%
                      1,269
                    32,890
                      1,904
                    22,544
             
Accumulation unit value
        
 
M&E - 0.90%
 $           20.765833
 $           19.329659
 $           14.523459
 $           49.225924
 
M&E - 0.30%
 $             9.974890
 $             9.169067
 $           10.724712
 $             9.017843
 
M&E - 0.75%
 $           11.037632
 $           19.550031
 $           13.891984
 $           15.887910
 
M&E - 0.00%
 $           10.852884
 $           13.974672
 $           13.444873
 $           13.741149
 
M&E - 1.50%
 $             9.597684
 $           10.389011
 $           11.750348
 $           11.776505
             
See accompanying notes.
        


S-9

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Transamerica Index 50 VP
Transamerica Index 75 VP
Transamerica Efficient Markets VP
Transamerica Hanlon Balanced VP
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
             37,886.545
           207,921.159
             37,142.018
           942,513.020
   
Cost
 $               398,699
 $            2,009,988
 $               503,973
 $          10,328,049
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $               392,883
 $            1,996,043
 $               479,503
 $            9,877,536
 
 Receivable for units sold
                             -
                             4
                             -
                             -
Total assets
                  392,883
               1,996,047
                  479,503
               9,877,536
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                             -
                             2
     
 $               392,883
 $            1,996,047
 $               479,503
 $            9,877,534
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $               392,883
 $            1,996,047
 $               479,503
 $            9,877,534
Total net assets
 $               392,883
 $            1,996,047
 $               479,503
 $            9,877,534
             
Accumulation units outstanding
      
 
M&E - 0.90%
                    19,830
                  133,372
                    21,414
                  696,871
 
M&E - 0.30%
                             -
                             -
                             -
                             -
 
M&E - 0.75%
                    16,198
                    67,880
                    12,989
                  231,096
 
M&E - 0.00%
                         543
                         209
                         497
                      8,728
 
M&E - 1.50%
                         570
                      1,454
                      1,477
                    10,100
             
Accumulation unit value
        
 
M&E - 0.90%
 $           10.541491
 $             9.814203
 $           13.166522
 $           10.421915
 
M&E - 0.30%
 $             9.959458
 $             9.628055
 $             9.514443
 $             9.525383
 
M&E - 0.75%
 $           10.599129
 $             9.867887
 $           13.218827
 $           10.463348
 
M&E - 0.00%
 $           10.893493
 $           10.142016
 $           13.484627
 $           10.673822
 
M&E - 1.50%
 $           10.954839
 $           10.419737
 $           12.960142
 $           10.258492
             
See accompanying notes.
        


S-10

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Transamerica Hanlon Growth & Income VP
Transamerica Hanlon Growth VP
Transamerica Hanlon Income VP
Transamerica Multi Managed Large Cap Core VP
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
           919,033.508
        1,313,391.831
        2,695,735.477
           221,887.364
   
Cost
 $          10,063,233
 $          14,392,065
 $          29,963,608
 $            3,285,550
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $            9,346,571
 $          12,936,910
 $          30,165,280
 $            3,339,405
 
 Receivable for units sold
                             -
                             -
                           90
                         422
Total assets
               9,346,571
             12,936,910
             30,165,370
               3,339,827
Liabilities
        
 
Payable for units redeemed
                             7
                             -
                             -
                             -
     
 $            9,346,564
 $          12,936,910
 $          30,165,370
 $            3,339,827
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $            9,346,564
 $          12,936,910
 $          30,165,370
 $            3,339,827
Total net assets
 $            9,346,564
 $          12,936,910
 $          30,165,370
 $            3,339,827
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  540,482
                  738,392
               1,618,045
                  185,496
 
M&E - 0.30%
                             -
                             -
                             -
                             -
 
M&E - 0.75%
                  363,924
                  538,718
               1,021,720
                    32,095
 
M&E - 0.00%
                      2,151
                      1,708
                         902
                      1,663
 
M&E - 1.50%
                    11,060
                    22,749
                    45,901
                      1,911
             
Accumulation unit value
        
 
M&E - 0.90%
 $           10.170995
 $             9.925558
 $           11.214189
 $           15.091665
 
M&E - 0.30%
 $             9.089762
 $             8.634089
 $           10.271352
 $             9.310471
 
M&E - 0.75%
 $           10.211431
 $             9.965019
 $           11.258730
 $           15.151653
 
M&E - 0.00%
 $           10.416845
 $           10.165495
 $           11.485207
 $           15.456553
 
M&E - 1.50%
 $           10.011503
 $             9.769908
 $           11.038356
 $           14.854954
             
See accompanying notes.
        


S-11

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Transamerica Janus Balanced VP
Transamerica Jennison Growth VP
Transamerica AEGON Active Asset Allocation - Conservative VP
Transamerica AEGON Active Asset Allocation - Moderate VP
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
           920,507.449
        1,953,263.640
           475,736.228
             87,817.992
   
Cost
 $            9,529,432
 $          15,291,541
 $            4,670,667
 $               841,840
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $            8,735,616
 $          15,313,587
 $            4,719,303
 $               852,713
 
 Receivable for units sold
                             1
                             -
                             1
                             -
Total assets
               8,735,617
             15,313,587
               4,719,304
                  852,713
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                             -
                             -
     
 $            8,735,617
 $          15,313,587
 $            4,719,304
 $               852,713
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $            8,735,617
 $          15,313,587
 $            4,719,304
 $               852,713
Total net assets
 $            8,735,617
 $          15,313,587
 $            4,719,304
 $               852,713
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  483,864
               1,181,190
                  354,307
                    62,292
 
M&E - 0.30%
                             -
                         302
                             -
                             -
 
M&E - 0.75%
                  437,956
                  257,640
                  116,560
                    25,189
 
M&E - 0.00%
                      1,589
                      2,010
                         288
                             -
 
M&E - 1.50%
                      9,778
                      1,267
                      7,325
                         839
             
Accumulation unit value
        
 
M&E - 0.90%
 $             9.345797
 $           10.612051
 $             9.861228
 $             9.652459
 
M&E - 0.30%
 $             8.570635
 $             9.549134
 $             9.900309
 $             9.690721
 
M&E - 0.75%
 $             9.380613
 $           10.638435
 $             9.870964
 $             9.661993
 
M&E - 0.00%
 $             9.557388
 $           10.771923
 $           10.071065
 $                          -
 
M&E - 1.50%
 $             9.208359
 $           10.507551
 $             9.822529
 $             9.614566
             
See accompanying notes.
        


S-12

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Transamerica AEGON Active Asset Allocation - Moderate Growth VP
Transamerica BlackRock Global Allocation VP
Transamerica BlackRock Tactical Allocation VP
Fidelity VIP Contrafund®
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
        3,067,150.348
           202,511.834
           111,033.941
           675,231.926
   
Cost
 $          28,823,301
 $            1,876,639
 $            1,061,831
 $          17,181,965
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $          28,524,498
 $            1,832,732
 $            1,074,809
 $          15,287,251
 
 Receivable for units sold
                             -
                             -
                             -
                         122
Total assets
             28,524,498
               1,832,732
               1,074,809
             15,287,373
Liabilities
        
 
Payable for units redeemed
                      2,461
                             -
                             1
                             -
     
 $          28,522,037
 $            1,832,732
 $            1,074,808
 $          15,287,373
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $          28,522,037
 $            1,832,732
 $            1,074,808
 $          15,287,373
Total net assets
 $          28,522,037
 $            1,832,732
 $            1,074,808
 $          15,287,373
             
Accumulation units outstanding
      
 
M&E - 0.90%
               1,727,344
                    97,837
                    60,317
               1,143,869
 
M&E - 0.30%
                             -
                             -
                             -
                             -
 
M&E - 0.75%
               1,312,695
                    98,989
                    48,732
                             -
 
M&E - 0.00%
                      3,406
                             -
                             -
                             -
 
M&E - 1.50%
                    40,356
                         811
                      1,554
                             -
             
Accumulation unit value
        
 
M&E - 0.90%
 $             9.244860
 $             9.269117
 $             9.714320
 $           13.364620
 
M&E - 0.30%
 $             9.281523
 $             9.303151
 $             9.749957
 $             9.274339
 
M&E - 0.75%
 $             9.253992
 $             9.277589
 $             9.723195
 $                          -
 
M&E - 0.00%
 $             9.893618
 $                          -
 $                          -
 $                          -
 
M&E - 1.50%
 $             9.208543
 $             9.235405
 $             9.679022
 $                          -
             
See accompanying notes.
        


S-13

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
Fidelity VIP Equity-Income
Fidelity VIP Growth Opportunities
Fidelity VIP Index 500
ProFund VP Bull
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
           423,301.374
           216,570.178
             73,067.841
             93,350.049
   
Cost
 $            9,431,486
 $            3,362,396
 $            8,735,859
 $            2,358,962
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $            7,792,978
 $            3,926,417
 $            9,370,220
 $            2,419,633
 
 Receivable for units sold
                         303
                             -
                             -
                             -
Total assets
               7,793,281
               3,926,417
               9,370,220
               2,419,633
Liabilities
        
 
Payable for units redeemed
                             -
                         200
                             5
                         315
     
 $            7,793,281
 $            3,926,217
 $            9,370,215
 $            2,419,318
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $            7,793,281
 $            3,926,217
 $            9,370,215
 $            2,419,318
Total net assets
 $            7,793,281
 $            3,926,217
 $            9,370,215
 $            2,419,318
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  625,319
                  476,272
                  354,239
                  206,421
 
M&E - 0.30%
                         228
                             -
                             -
                             -
 
M&E - 0.75%
                             -
                             -
                  387,476
                    37,706
 
M&E - 0.00%
                             -
                             -
                      3,338
                           25
 
M&E - 1.50%
                             -
                             -
                      1,942
                           83
             
Accumulation unit value
        
 
M&E - 0.90%
 $           12.459406
 $             8.243653
 $           12.128502
 $             9.893182
 
M&E - 0.30%
 $             9.555671
 $             9.706793
 $             9.684193
 $             9.542780
 
M&E - 0.75%
 $                          -
 $                          -
 $           12.957018
 $             9.975202
 
M&E - 0.00%
 $                          -
 $                          -
 $           10.067953
 $             9.314212
 
M&E - 1.50%
 $                          -
 $                          -
 $           10.137028
 $             9.589606
             
See accompanying notes.
        


S-14

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
ProFund VP NASDAQ-100
ProFund VP Small-Cap
ProFund VP Short Small-Cap
ProFund VP Money Market
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
           437,067.045
             65,608.644
           145,364.702
      21,461,622.650
   
Cost
 $            8,703,397
 $            1,669,196
 $            1,157,515
 $          21,461,623
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $            8,535,919
 $            1,729,444
 $            1,119,308
 $          21,461,623
 
 Receivable for units sold
                         100
                             5
                             -
                             8
Total assets
               8,536,019
               1,729,449
               1,119,308
             21,461,631
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                         179
                             -
     
 $            8,536,019
 $            1,729,449
 $            1,119,129
 $          21,461,631
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $            8,536,019
 $            1,729,449
 $            1,119,129
 $          21,461,631
Total net assets
 $            8,536,019
 $            1,729,449
 $            1,119,129
 $          21,461,631
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  482,259
                  131,827
                  211,296
               1,630,372
 
M&E - 0.30%
                             -
                      1,683
                             -
                             -
 
M&E - 0.75%
                  142,147
                    36,558
                    20,386
                  459,834
 
M&E - 0.00%
                      5,094
                         779
                         123
                      4,781
 
M&E - 1.50%
                      3,181
                         601
                      2,584
                      6,931
             
Accumulation unit value
        
 
M&E - 0.90%
 $           13.484647
 $           10.080420
 $             4.772798
 $           10.193497
 
M&E - 0.30%
 $             9.682005
 $             9.091520
 $             9.505419
 $             9.976187
 
M&E - 0.75%
 $           13.596399
 $           10.164004
 $             4.812363
 $           10.277805
 
M&E - 0.00%
 $           12.503199
 $             9.600009
 $             5.563064
 $           10.542657
 
M&E - 1.50%
 $           11.486893
 $           10.367632
 $             4.592112
 $             9.516228
             
See accompanying notes.
        


S-15

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
ProFund VP Europe 30
ProFund VP Oil & Gas
ProFund VP Ultra Small-Cap
ProFund VP Utilities
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
             16,805.526
           138,159.905
           558,999.364
           116,901.650
   
Cost
 $               326,210
 $            6,859,370
 $            5,327,521
 $            3,564,044
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $               322,834
 $            6,559,832
 $            5,757,693
 $            3,795,797
 
 Receivable for units sold
                           10
                         871
                             -
                             9
Total assets
                  322,844
               6,560,703
               5,757,693
               3,795,806
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                           24
                             -
     
 $               322,844
 $            6,560,703
 $            5,757,669
 $            3,795,806
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $               322,844
 $            6,560,703
 $            5,757,669
 $            3,795,806
Total net assets
 $               322,844
 $            6,560,703
 $            5,757,669
 $            3,795,806
             
Accumulation units outstanding
      
 
M&E - 0.90%
                    32,271
                  639,240
                  592,396
                  267,427
 
M&E - 0.30%
                             -
                      1,663
                             -
                             -
 
M&E - 0.75%
                      7,656
                  104,332
                  261,585
                  106,131
 
M&E - 0.00%
                         331
                      2,589
                      2,769
                      1,298
 
M&E - 1.50%
                      4,225
                    15,878
                    12,359
                      2,688
             
Accumulation unit value
        
 
M&E - 0.90%
 $             7.234813
 $             8.598179
 $             6.600297
 $           10.040607
 
M&E - 0.30%
 $             8.527013
 $             9.065566
 $             7.566658
 $           11.462157
 
M&E - 0.75%
 $             7.276301
 $             8.647482
 $             6.638217
 $           10.098096
 
M&E - 0.00%
 $             7.488252
 $             8.899263
 $             6.831873
 $           10.391940
 
M&E - 1.50%
 $             7.379969
 $             7.815063
 $             7.469274
 $             9.474781
             
See accompanying notes.
        


S-16

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
ProFund VP Consumer Services
ProFund VP Pharmaceuticals
ProFund VP Small-Cap Value
ProFund VP Falling U.S. Dollar
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
             55,323.498
           119,860.786
             22,319.477
             21,415.567
   
Cost
 $            1,833,911
 $            2,841,695
 $               587,039
 $               656,958
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $            1,868,275
 $            3,002,513
 $               584,324
 $               611,843
 
 Receivable for units sold
                             -
                             4
                             5
                         236
Total assets
               1,868,275
               3,002,517
                  584,329
                  612,079
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                             -
                             -
     
 $            1,868,275
 $            3,002,517
 $               584,329
 $               612,079
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $            1,868,275
 $            3,002,517
 $               584,329
 $               612,079
Total net assets
 $            1,868,275
 $            3,002,517
 $               584,329
 $               612,079
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  102,913
                  180,788
                    43,222
                    54,231
 
M&E - 0.30%
                             -
                             -
                             -
                             -
 
M&E - 0.75%
                    56,728
                    79,505
                      7,948
                    16,109
 
M&E - 0.00%
                      1,877
                         718
                      5,407
                           44
 
M&E - 1.50%
                         333
                         741
                      2,010
                         254
             
Accumulation unit value
        
 
M&E - 0.90%
 $           11.513046
 $           11.448286
 $             9.909646
 $             8.654571
 
M&E - 0.30%
 $           10.142686
 $           11.630775
 $             9.292941
 $             9.565993
 
M&E - 0.75%
 $           11.579008
 $           11.513873
 $             9.966456
 $             8.704155
 
M&E - 0.00%
 $           11.916030
 $           11.848858
 $           10.256719
 $             8.957498
 
M&E - 1.50%
 $           12.621279
 $           11.995592
 $           10.618373
 $             8.344226
             
See accompanying notes.
        


S-17

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
ProFund VP Emerging Markets
ProFund VP International
ProFund VP Asia 30
ProFund VP Japan
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
           231,324.837
             76,976.438
             93,091.791
           117,932.547
   
Cost
 $            6,465,168
 $            1,617,175
 $            5,041,980
 $            1,270,184
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $            5,637,386
 $            1,434,841
 $            3,927,543
 $            1,222,961
 
 Receivable for units sold
                         270
                           34
                           70
                             2
Total assets
               5,637,656
               1,434,875
               3,927,613
               1,222,963
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                             -
                             -
     
 $            5,637,656
 $            1,434,875
 $            3,927,613
 $            1,222,963
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $            5,637,656
 $            1,434,875
 $            3,927,613
 $            1,222,963
Total net assets
 $            5,637,656
 $            1,434,875
 $            3,927,613
 $            1,222,963
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  712,835
                  175,054
                  482,058
                  155,852
 
M&E - 0.30%
                             -
                             -
                             -
                             -
 
M&E - 0.75%
                    83,727
                    36,882
                    77,385
                    72,508
 
M&E - 0.00%
                      4,456
                         129
                      1,603
                           25
 
M&E - 1.50%
                      2,966
                      1,179
                      7,809
                      1,446
             
Accumulation unit value
        
 
M&E - 0.90%
 $             7.003994
 $             6.719726
 $             6.884188
 $             5.311024
 
M&E - 0.30%
 $             8.387770
 $             8.292760
 $             7.200450
 $             7.907883
 
M&E - 0.75%
 $             7.044130
 $             6.758257
 $             6.923689
 $             5.341471
 
M&E - 0.00%
 $             7.249324
 $             6.955124
 $             7.125325
 $             5.497050
 
M&E - 1.50%
 $             7.712968
 $             7.124621
 $             7.917396
 $             5.388295
             
See accompanying notes.
        


S-18

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
ProFund VP Short NASDAQ-100
ProFund VP U.S. Government Plus
ProFund VP Basic Materials
ProFund VP Financials
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
           114,038.245
           208,587.269
           102,698.238
             95,391.095
   
Cost
 $               986,135
 $            4,814,606
 $            5,098,471
 $            1,802,026
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $               964,764
 $            5,859,216
 $            4,487,913
 $            1,628,326
 
 Receivable for units sold
                           63
                         325
                           45
                           18
Total assets
                  964,827
               5,859,541
               4,487,958
               1,628,344
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                             -
                             -
     
 $               964,827
 $            5,859,541
 $            4,487,958
 $            1,628,344
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $               964,827
 $            5,859,541
 $            4,487,958
 $            1,628,344
Total net assets
 $               964,827
 $            5,859,541
 $            4,487,958
 $            1,628,344
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  157,618
                  313,156
                  483,182
                  241,612
 
M&E - 0.30%
                             -
                             -
                      1,754
                             -
 
M&E - 0.75%
                    28,161
                    62,492
                    58,073
                    43,047
 
M&E - 0.00%
                         234
                         103
                      4,234
                         486
 
M&E - 1.50%
                         560
                         730
                      9,081
                         956
             
Accumulation unit value
        
 
M&E - 0.90%
 $             5.166479
 $           15.549846
 $             8.059663
 $             5.681312
 
M&E - 0.30%
 $             9.417887
 $           15.051718
 $             8.321980
 $             8.261229
 
M&E - 0.75%
 $             5.196080
 $           15.638798
 $             8.105883
 $             5.713927
 
M&E - 0.00%
 $             5.347375
 $           16.093377
 $             8.342032
 $             5.880619
 
M&E - 1.50%
 $             5.215690
 $           15.135095
 $             8.041205
 $             7.160307
             
See accompanying notes.
        


S-19

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
ProFund VP Precious Metals
ProFund VP Telecommunications
ProFund VP Mid-Cap
ProFund VP Short Emerging Markets
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
           188,384.401
             32,573.682
           101,696.177
             39,366.130
   
Cost
 $            9,464,725
 $               249,455
 $            2,464,103
 $               592,790
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $            8,366,151
 $               243,325
 $            2,408,165
 $               588,524
 
 Receivable for units sold
                         278
                           91
                           20
                         123
Total assets
               8,366,429
                  243,416
               2,408,185
                  588,647
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                             -
                             -
     
 $            8,366,429
 $               243,416
 $            2,408,185
 $               588,647
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $            8,366,429
 $               243,416
 $            2,408,185
 $               588,647
Total net assets
 $            8,366,429
 $               243,416
 $            2,408,185
 $               588,647
             
Accumulation units outstanding
      
 
M&E - 0.90%
                  820,901
                    21,431
                  197,439
                    88,498
 
M&E - 0.30%
                             -
                             -
                             -
                             -
 
M&E - 0.75%
                  161,095
                      3,951
                    40,381
                      9,835
 
M&E - 0.00%
                      2,052
                         144
                      2,658
                             -
 
M&E - 1.50%
                    11,390
                           37
                      1,685
                      1,147
             
Accumulation unit value
        
 
M&E - 0.90%
 $             8.390943
 $             9.510904
 $             9.929300
 $             5.919785
 
M&E - 0.30%
 $             8.659755
 $           10.324642
 $             9.051815
 $           10.636177
 
M&E - 0.75%
 $             8.439065
 $             9.565374
 $             9.986211
 $             5.953717
 
M&E - 0.00%
 $             8.685011
 $             9.843703
 $           10.277011
 $             6.127048
 
M&E - 1.50%
 $             8.865832
 $             9.943711
 $           10.197842
 $             5.404661
             
See accompanying notes.
        


S-20

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Assets and Liabilities
December 31, 2011



     
ProFund VP Short International
Access VP High Yield
Franklin Templeton VIP Founding Funds Allocation
AllianceBernstein Balanced Wealth Strategy
     
 Subaccount
 Subaccount
 Subaccount
 Subaccount
Assets
          
 
Investment in securities:
        
   
Number of shares
             31,698.139
             85,850.472
             88,258.728
             59,996.190
   
Cost
 $               677,264
 $            2,262,497
 $               674,720
 $               645,875
 
Investments in mutual funds,
        
   
Level 1 quoted prices
        
   
 at net asset value
 $               663,125
 $            2,258,726
 $               669,001
 $               647,959
 
 Receivable for units sold
                      1,132
                         163
                             -
                             -
Total assets
                  664,257
               2,258,889
                  669,001
                  647,959
Liabilities
        
 
Payable for units redeemed
                             -
                             -
                             -
                             1
     
 $               664,257
 $            2,258,889
 $               669,001
 $               647,958
Net Assets
        
 
Deferred annuity contracts
        
   
terminable by owners
 $               664,257
 $            2,258,889
 $               669,001
 $               647,958
Total net assets
 $               664,257
 $            2,258,889
 $               669,001
 $               647,958
             
Accumulation units outstanding
      
 
M&E - 0.90%
                    76,503
                  133,577
                    33,860
                    33,465
 
M&E - 0.30%
                             -
                             -
                             -
                             -
 
M&E - 0.75%
                    11,249
                    32,040
                      9,884
                    13,418
 
M&E - 0.00%
                         156
                         592
                      1,126
                         613
 
M&E - 1.50%
                         167
                      1,262
                      4,072
                      1,988
             
Accumulation unit value
        
 
M&E - 0.90%
 $             7.537070
 $           13.475090
 $           13.668648
 $           13.084585
 
M&E - 0.30%
 $           10.570796
 $           10.096253
 $             9.393535
 $             9.429369
 
M&E - 0.75%
 $             7.580262
 $           13.552224
 $           13.722936
 $           13.136550
 
M&E - 0.00%
 $             7.800855
 $           13.946322
 $           13.998881
 $           13.400669
 
M&E - 1.50%
 $             6.932668
 $           13.038277
 $           13.454384
 $           12.879492
             
See accompanying notes.
        

S-21

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted



       
 Transamerica JPMorgan Core Bond VP
 Transamerica Asset Allocation - Conservative VP
 Transamerica Asset Allocation - Growth VP
 Transamerica Asset Allocation - Moderate Growth VP
       
 Subaccount
Subaccount
Subaccount
Subaccount
 Net Assets as of January 1, 2010
 $     54,892,177
 $     41,211,153
 $   245,375,296
 $   281,532,459
 Investment Income:
        
 
 Dividends
          3,234,359
          1,422,355
          2,683,966
          6,210,089
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             486,150
             377,351
          2,091,099
          2,414,064
   
 Net investment income (loss)
          2,748,209
          1,045,004
             592,867
          3,796,025
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
             122,121
                       -
                       -
 
 Realized gain (loss) on investments
             839,735
           (997,395)
      (12,126,988)
        (5,043,179)
   
 Net realized capital gains (losses) on investments
             839,735
           (875,274)
      (12,126,988)
        (5,043,179)
   
 Net change in unrealized appreciation/depreciation
             244,161
          3,246,125
        44,525,528
        32,853,200
     
 Net Gain (Loss) on Investment
          1,083,896
          2,370,851
        32,398,540
        27,810,021
 Increase (decrease) in net assets from operations
          3,832,105
          3,415,855
        32,991,407
        31,606,046
 Increase (decrease) in net assets from contract transactions
        (3,733,885)
             (27,134)
      (11,939,425)
      (12,333,844)
 Total increase (decrease) in net assets
               98,220
          3,388,721
        21,051,982
        19,272,202
         
 Net Assets as of December 31, 2010
 $     54,990,397
 $     44,599,874
 $   266,427,278
 $   300,804,661
 Investment Income:
        
 
 Dividends
          2,253,481
          1,180,378
          3,137,935
          5,991,166
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             469,334
             374,267
          2,201,029
          2,479,615
   
 Net investment income (loss)
          1,784,147
             806,111
             936,906
          3,511,551
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
               67,871
                       -
                       -
                       -
 
 Realized gain (loss) on investments
             922,730
           (512,042)
        (8,953,049)
        (2,671,701)
   
 Net realized capital gains (losses) on investments
             990,601
           (512,042)
        (8,953,049)
        (2,671,701)
   
 Net change in unrealized appreciation/depreciation
             556,140
             512,001
        (8,007,907)
        (8,665,407)
     
 Net Gain (Loss) on Investment
          1,546,741
                    (41)
      (16,960,956)
      (11,337,108)
 Increase (decrease) in net assets from operations
          3,330,888
             806,070
      (16,024,050)
        (7,825,557)
 Increase (decrease) in net assets from contract transactions
        (2,473,536)
        (5,272,036)
      (12,265,954)
      (21,491,300)
 Total increase (decrease) in net assets
             857,352
        (4,465,966)
      (28,290,004)
      (29,316,857)
         
 Net Assets as of December 31, 2011
 $     55,847,749
 $     40,133,908
 $   238,137,274
 $   271,487,804
 See accompanying notes.
        


S-22

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted





       
 Transamerica Asset Allocation - Moderate VP
 Transamerica MFS International Equity VP
 Transamerica Clarion Global Real Estate Securities VP
 Transamerica JPMorgan Tactical Allocation VP
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $     86,014,287
 $     44,762,291
 $     42,497,293
 $     69,300,036
 Investment Income:
        
 
 Dividends
          2,553,530
             575,980
          2,602,653
          2,390,884
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             745,444
             376,418
             368,076
             567,466
   
 Net investment income (loss)
          1,808,086
             199,562
          2,234,577
          1,823,418
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
        (1,537,940)
        (2,414,435)
        (3,945,792)
        (2,813,820)
   
 Net realized capital gains (losses) on investments
        (1,537,940)
        (2,414,435)
        (3,945,792)
        (2,813,820)
   
 Net change in unrealized appreciation/depreciation
          7,520,329
          5,763,026
          7,378,322
             417,088
     
 Net Gain (Loss) on Investment
          5,982,389
          3,348,591
          3,432,530
        (2,396,732)
 Increase (decrease) in net assets from operations
          7,790,475
          3,548,153
          5,667,107
           (573,314)
 Increase (decrease) in net assets from contract transactions
        (2,204,337)
        (4,036,569)
        (2,914,736)
        (9,218,231)
 Total increase (decrease) in net assets
          5,586,138
           (488,416)
          2,752,371
        (9,791,545)
         
 Net Assets as of December 31, 2010
 $     91,600,425
 $     44,273,875
 $     45,249,664
 $     59,508,491
 Investment Income:
        
 
 Dividends
          1,980,080
             513,003
          3,130,213
          1,022,945
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             760,526
             367,041
             391,302
             509,097
   
 Net investment income (loss)
          1,219,554
             145,962
          2,738,911
             513,848
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
        (1,133,364)
        (1,570,685)
        (7,060,602)
        (2,184,300)
   
 Net realized capital gains (losses) on investments
        (1,133,364)
        (1,570,685)
        (7,060,602)
        (2,184,300)
   
 Net change in unrealized appreciation/depreciation
           (146,647)
        (3,010,703)
          1,379,935
          3,278,126
     
 Net Gain (Loss) on Investment
        (1,280,011)
        (4,581,388)
        (5,680,667)
          1,093,826
 Increase (decrease) in net assets from operations
             (60,457)
        (4,435,426)
        (2,941,756)
          1,607,674
 Increase (decrease) in net assets from contract transactions
        (8,951,477)
        (4,122,452)
        (2,680,657)
        (2,548,592)
 Total increase (decrease) in net assets
        (9,011,934)
        (8,557,878)
        (5,622,413)
           (940,918)
         
 Net Assets as of December 31, 2011
 $     82,588,491
 $     35,715,997
 $     39,627,251
 $     58,567,573
 See accompanying notes.
        


S-23

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted





       
 Transamerica International Moderate Growth VP
 Transamerica JPMorgan Mid Cap Value VP
 Transamerica JPMorgan Enhanced Index VP
 Transamerica BlackRock Large Cap Value VP
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $       9,885,528
 $       8,022,955
 $       1,631,165
 $     41,943,389
 Investment Income:
        
 
 Dividends
             266,687
             140,445
               24,020
             404,456
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               83,059
               69,624
               15,435
             451,820
   
 Net investment income (loss)
             183,628
               70,821
                 8,585
             (47,364)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
           (447,380)
           (189,628)
           (130,239)
        (1,821,331)
   
 Net realized capital gains (losses) on investments
           (447,380)
           (189,628)
           (130,239)
        (1,821,331)
   
 Net change in unrealized appreciation/depreciation
          1,190,381
          1,659,649
             371,222
          5,553,938
     
 Net Gain (Loss) on Investment
             743,001
          1,470,021
             240,983
          3,732,607
 Increase (decrease) in net assets from operations
             926,629
          1,540,842
             249,568
          3,685,243
 Increase (decrease) in net assets from contract transactions
               29,068
        (1,586,485)
             142,252
        12,540,770
 Total increase (decrease) in net assets
             955,697
             (45,643)
             391,820
        16,226,013
         
 Net Assets as of December 31, 2010
 $     10,841,225
 $       7,977,312
 $       2,022,985
 $     58,169,402
 Investment Income:
        
 
 Dividends
             225,047
               83,716
               53,559
          1,017,277
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               91,650
               66,898
               22,894
             515,818
   
 Net investment income (loss)
             133,397
               16,818
               30,665
             501,459
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
           (321,642)
               23,271
           (149,922)
           (547,590)
   
 Net realized capital gains (losses) on investments
           (321,642)
               23,271
           (149,922)
           (547,590)
   
 Net change in unrealized appreciation/depreciation
           (694,025)
               46,180
             111,783
          1,285,354
     
 Net Gain (Loss) on Investment
        (1,015,667)
               69,451
             (38,139)
             737,764
 Increase (decrease) in net assets from operations
           (882,270)
               86,269
               (7,474)
          1,239,223
 Increase (decrease) in net assets from contract transactions
             998,077
        (1,087,379)
          2,271,602
        (1,061,737)
 Total increase (decrease) in net assets
             115,807
        (1,001,110)
          2,264,128
             177,486
         
 Net Assets as of December 31, 2011
 $     10,957,032
 $       6,976,202
 $       4,287,113
 $     58,346,888
 See accompanying notes.
        


S-24

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 Transamerica AEGON High Yield Bond VP
 Transamerica PIMCO Total Return VP
 Transamerica Morgan Stanley Capital Growth VP
 Transamerica T. Rowe Price Small Cap VP
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $     12,028,440
 $     28,964,781
 $     26,897,044
 $     18,450,816
 Investment Income:
        
 
 Dividends
          2,001,857
          1,290,530
             236,021
                       -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             118,376
             284,709
             240,665
             174,181
   
 Net investment income (loss)
          1,883,481
          1,005,821
               (4,644)
           (174,181)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
               44,170
                       -
                       -
 
 Realized gain (loss) on investments
          1,188,580
             406,844
        (1,224,091)
        (1,684,722)
   
 Net realized capital gains (losses) on investments
          1,188,580
             451,014
        (1,224,091)
        (1,684,722)
   
 Net change in unrealized appreciation/depreciation
        (1,688,919)
             489,256
          7,804,657
          8,079,998
     
 Net Gain (Loss) on Investment
           (500,339)
             940,270
          6,580,566
          6,395,276
 Increase (decrease) in net assets from operations
          1,383,142
          1,946,091
          6,575,922
          6,221,095
 Increase (decrease) in net assets from contract transactions
          5,050,928
           (235,034)
        (1,901,407)
          3,281,763
 Total increase (decrease) in net assets
          6,434,070
          1,711,057
          4,674,515
          9,502,858
         
 Net Assets as of December 31, 2010
 $     18,462,510
 $     30,675,838
 $     31,571,559
 $     27,953,674
 Investment Income:
        
 
 Dividends
             850,391
             729,090
                       -
                       -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             144,906
             258,374
             285,591
             288,209
   
 Net investment income (loss)
             705,485
             470,716
           (285,591)
           (288,209)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
             777,326
                       -
                       -
 
 Realized gain (loss) on investments
           (460,487)
             454,618
           (300,392)
          1,432,977
   
 Net realized capital gains (losses) on investments
           (460,487)
          1,231,944
           (300,392)
          1,432,977
   
 Net change in unrealized appreciation/depreciation
             305,271
           (270,266)
        (1,644,910)
        (1,858,635)
     
 Net Gain (Loss) on Investment
           (155,216)
             961,678
        (1,945,302)
           (425,658)
 Increase (decrease) in net assets from operations
             550,269
          1,432,394
        (2,230,893)
           (713,867)
 Increase (decrease) in net assets from contract transactions
        (3,625,722)
          1,273,645
        (1,123,473)
           (837,979)
 Total increase (decrease) in net assets
        (3,075,453)
          2,706,039
        (3,354,366)
        (1,551,846)
         
 Net Assets as of December 31, 2011
 $     15,387,057
 $     33,381,877
 $     28,217,193
 $     26,401,828
 See accompanying notes.
        


S-25

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted





       
 Transamerica Third Avenue Value VP
 Transamerica Multi-Managed Balanced VP
 Transamerica AllianceBernstein Dynamic Allocation VP
 Transamerica WMC Diversified Growth VP
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $     74,986,432
 $       4,796,603
 $       3,191,995
 $   574,078,382
 Investment Income:
        
 
 Dividends
          1,990,139
             507,932
             170,900
          2,993,270
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             622,549
             636,251
               28,224
          5,031,913
   
 Net investment income (loss)
          1,367,590
           (128,319)
             142,676
        (2,038,643)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
        (8,104,618)
           (107,948)
           (432,774)
      (17,808,460)
   
 Net realized capital gains (losses) on investments
        (8,104,618)
           (107,948)
           (432,774)
      (17,808,460)
   
 Net change in unrealized appreciation/depreciation
        16,330,388
        15,110,177
             536,545
      108,864,178
     
 Net Gain (Loss) on Investment
          8,225,770
        15,002,229
             103,771
        91,055,718
 Increase (decrease) in net assets from operations
          9,593,360
        14,873,910
             246,447
        89,017,075
 Increase (decrease) in net assets from contract transactions
      (10,116,940)
        95,141,926
             (53,355)
      (51,785,955)
 Total increase (decrease) in net assets
           (523,580)
      110,015,836
             193,092
        37,231,120
         
 Net Assets as of December 31, 2010
 $     74,462,852
 $   114,812,439
 $       3,385,087
 $   611,309,502
 Investment Income:
        
 
 Dividends
          3,478,828
          2,620,759
               23,110
          2,208,389
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             614,062
          1,012,562
               26,893
          5,203,452
   
 Net investment income (loss)
          2,864,766
          1,608,197
               (3,783)
        (2,995,063)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
        (5,645,925)
          1,758,430
           (297,079)
        (7,961,591)
   
 Net realized capital gains (losses) on investments
        (5,645,925)
          1,758,430
           (297,079)
        (7,961,591)
   
 Net change in unrealized appreciation/depreciation
        (7,757,280)
               95,028
             338,440
      (14,459,605)
     
 Net Gain (Loss) on Investment
      (13,403,205)
          1,853,458
               41,361
      (22,421,196)
 Increase (decrease) in net assets from operations
      (10,538,439)
          3,461,655
               37,578
      (25,416,259)
 Increase (decrease) in net assets from contract transactions
        (6,318,383)
        (8,880,040)
           (406,688)
      124,051,848
 Total increase (decrease) in net assets
      (16,856,822)
        (5,418,385)
           (369,110)
        98,635,589
         
 Net Assets as of December 31, 2011
 $     57,606,030
 $   109,394,054
 $       3,015,977
 $   709,945,091
 See accompanying notes.
        


S-26

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 Transamerica AEGON Money Market VP
 Transamerica Systematic Small/Mid-Cap Value VP
 Transamerica AEGON U.S. Government Securities VP
 Transamerica Morgan Stanley Mid-Cap Growth VP
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $     66,003,875
 $     23,766,218
 $       9,746,046
 $   256,353,724
 Investment Income:
        
 
 Dividends
                 3,157
             233,942
             335,903
             326,997
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             546,005
             250,922
               92,461
          2,455,057
   
 Net investment income (loss)
           (542,848)
             (16,980)
             243,442
        (2,128,060)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
             240,868
                       -
 
 Realized gain (loss) on investments
                       -
        (2,291,835)
             230,857
             350,015
   
 Net realized capital gains (losses) on investments
                       -
        (2,291,835)
             471,725
             350,015
   
 Net change in unrealized appreciation/depreciation
                       -
        10,109,010
           (396,970)
        81,294,209
     
 Net Gain (Loss) on Investment
                       -
          7,817,175
               74,755
        81,644,224
 Increase (decrease) in net assets from operations
           (542,848)
          7,800,195
             318,197
        79,516,164
 Increase (decrease) in net assets from contract transactions
        (9,757,714)
          4,555,910
          1,932,438
      (19,917,997)
 Total increase (decrease) in net assets
      (10,300,562)
        12,356,105
          2,250,635
        59,598,167
         
 Net Assets as of December 31, 2010
 $     55,703,313
 $     36,122,323
 $     11,996,681
 $   315,951,891
 Investment Income:
        
 
 Dividends
                 2,712
               59,248
             273,855
             990,642
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
             467,746
             332,245
               86,352
          2,787,186
   
 Net investment income (loss)
           (465,034)
           (272,997)
             187,503
        (1,796,544)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
             169,126
                       -
 
 Realized gain (loss) on investments
                       -
             125,269
             188,208
          6,895,010
   
 Net realized capital gains (losses) on investments
                       -
             125,269
             357,334
          6,895,010
   
 Net change in unrealized appreciation/depreciation
                       -
        (1,683,627)
             119,697
      (26,863,346)
     
 Net Gain (Loss) on Investment
                       -
        (1,558,358)
             477,031
      (19,968,336)
 Increase (decrease) in net assets from operations
           (465,034)
        (1,831,355)
             664,534
      (21,764,880)
 Increase (decrease) in net assets from contract transactions
        (5,722,799)
          1,296,630
           (620,266)
        26,132,408
 Total increase (decrease) in net assets
        (6,187,833)
           (534,725)
               44,268
          4,367,528
         
 Net Assets as of December 31, 2011
 $     49,515,480
 $     35,587,598
 $     12,040,949
 $   320,319,419
 See accompanying notes.
        


S-27

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 Transamerica Index 50 VP
 Transamerica Index 75 VP
 Transamerica Efficient Markets VP
 Transamerica Hanlon Balanced VP
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $            95,207
 $          776,576
 $          129,907
 $       4,689,366
 Investment Income:
        
 
 Dividends
                 2,015
               11,401
                 1,885
               31,027
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                 1,293
                 7,822
                 1,848
               72,244
   
 Net investment income (loss)
                    722
                 3,579
                      37
             (41,217)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                 1,709
                 8,886
                 4,572
               15,072
 
 Realized gain (loss) on investments
                 8,790
               15,894
                 5,862
             101,188
   
 Net realized capital gains (losses) on investments
               10,499
               24,780
               10,434
             116,260
   
 Net change in unrealized appreciation/depreciation
                 3,930
               84,225
               21,212
           (291,569)
     
 Net Gain (Loss) on Investment
               14,429
             109,005
               31,646
           (175,309)
 Increase (decrease) in net assets from operations
               15,151
             112,584
               31,683
           (216,526)
 Increase (decrease) in net assets from contract transactions
             126,741
             374,347
             182,955
          6,194,700
 Total increase (decrease) in net assets
             141,892
             486,931
             214,638
          5,978,174
         
 Net Assets as of December 31, 2010
 $          237,099
 $       1,263,507
 $          344,545
 $     10,667,540
 Investment Income:
        
 
 Dividends
                 4,825
               32,489
                 4,810
             128,070
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                 3,110
               15,964
                 4,511
               87,022
   
 Net investment income (loss)
                 1,715
               16,525
                    299
               41,048
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                 4,660
               21,156
                 7,893
                       -
 
 Realized gain (loss) on investments
                 6,753
               64,567
               18,477
               79,605
   
 Net realized capital gains (losses) on investments
               11,413
               85,723
               26,370
               79,605
   
 Net change in unrealized appreciation/depreciation
             (12,982)
           (157,226)
             (48,821)
           (523,515)
     
 Net Gain (Loss) on Investment
               (1,569)
             (71,503)
             (22,451)
           (443,910)
 Increase (decrease) in net assets from operations
                    146
             (54,978)
             (22,152)
           (402,862)
 Increase (decrease) in net assets from contract transactions
             155,638
             787,518
             157,110
           (387,144)
 Total increase (decrease) in net assets
             155,784
             732,540
             134,958
           (790,006)
         
 Net Assets as of December 31, 2011
 $          392,883
 $       1,996,047
 $          479,503
 $       9,877,534
 See accompanying notes.
        


S-28

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 Transamerica Hanlon Growth & Income VP
 Transamerica Hanlon Growth VP
 Transamerica Hanlon Income VP
 Transamerica Multi Managed Large Cap Core VP
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $       6,641,823
 $     10,317,734
 $     17,304,606
 $       2,091,116
 Investment Income:
        
 
 Dividends
               51,896
             118,264
               48,351
               13,734
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               70,559
             107,897
             212,049
               18,895
   
 Net investment income (loss)
             (18,663)
               10,367
           (163,698)
               (5,161)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
               29,883
               78,365
               80,817
                       -
 
 Realized gain (loss) on investments
             145,218
             138,160
             481,219
             259,748
   
 Net realized capital gains (losses) on investments
             175,101
             216,525
             562,036
             259,748
   
 Net change in unrealized appreciation/depreciation
           (288,584)
           (289,323)
           (522,964)
               99,851
     
 Net Gain (Loss) on Investment
           (113,483)
             (72,798)
               39,072
             359,599
 Increase (decrease) in net assets from operations
           (132,146)
             (62,431)
           (124,626)
             354,438
 Increase (decrease) in net assets from contract transactions
          3,085,320
          4,000,184
        11,141,122
             114,932
 Total increase (decrease) in net assets
          2,953,174
          3,937,753
        11,016,496
             469,370
         
 Net Assets as of December 31, 2010
 $       9,594,997
 $     14,255,487
 $     28,321,102
 $       2,560,486
 Investment Income:
        
 
 Dividends
             132,912
             209,579
             477,667
               28,535
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               81,158
             116,961
             240,288
               29,700
   
 Net investment income (loss)
               51,754
               92,618
             237,379
               (1,165)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                    934
             142,730
                       -
 
 Realized gain (loss) on investments
             132,736
             219,600
             435,182
             216,691
   
 Net realized capital gains (losses) on investments
             132,736
             220,534
             577,912
             216,691
   
 Net change in unrealized appreciation/depreciation
           (963,613)
        (2,057,368)
           (197,549)
           (414,629)
     
 Net Gain (Loss) on Investment
           (830,877)
        (1,836,834)
             380,363
           (197,938)
 Increase (decrease) in net assets from operations
           (779,123)
        (1,744,216)
             617,742
           (199,103)
 Increase (decrease) in net assets from contract transactions
             530,690
             425,639
          1,226,526
             978,444
 Total increase (decrease) in net assets
           (248,433)
        (1,318,577)
          1,844,268
             779,341
         
 Net Assets as of December 31, 2011
 $       9,346,564
 $     12,936,910
 $     30,165,370
 $       3,339,827
 See accompanying notes.
        


S-29

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 Transamerica Janus Balanced VP
 Transamerica Jennison Growth VP
 Transamerica AEGON Active Asset Allocation - Conservative VP
 Transamerica AEGON Active Asset Allocation - Moderate VP
       
 Subaccount
 Subaccount
Subaccount(1)
Subaccount(1)
 Net Assets as of January 1, 2010
 $       6,711,223
 $                    -
 $                    -
 $                    -
 Investment Income:
        
 
 Dividends
               11,407
                 3,697
                       -
                       -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               67,275
               59,463
                       -
                       -
   
 Net investment income (loss)
             (55,868)
             (55,766)
                       -
                       -
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
               26,531
                       -
                       -
                       -
 
 Realized gain (loss) on investments
               (3,104)
           (129,979)
                       -
                       -
   
 Net realized capital gains (losses) on investments
               23,427
           (129,979)
                       -
                       -
   
 Net change in unrealized appreciation/depreciation
             366,394
             724,129
                       -
                       -
     
 Net Gain (Loss) on Investment
             389,821
             594,150
                       -
                       -
 Increase (decrease) in net assets from operations
             333,953
             538,384
                       -
                       -
 Increase (decrease) in net assets from contract transactions
          2,574,586
        10,060,467
                       -
                       -
 Total increase (decrease) in net assets
          2,908,539
        10,598,851
                       -
                       -
         
 Net Assets as of December 31, 2010
 $       9,619,762
 $     10,598,851
 $                    -
 $                    -
 Investment Income:
        
 
 Dividends
               23,877
               15,043
                       -
                       -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               85,158
             105,486
               10,636
                 1,691
   
 Net investment income (loss)
             (61,281)
             (90,443)
             (10,636)
               (1,691)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
             109,958
             189,373
               (4,955)
               (1,560)
   
 Net realized capital gains (losses) on investments
             109,958
             189,373
               (4,955)
               (1,560)
   
 Net change in unrealized appreciation/depreciation
        (1,334,231)
           (702,083)
               48,636
               10,873
     
 Net Gain (Loss) on Investment
        (1,224,273)
           (512,710)
               43,681
                 9,313
 Increase (decrease) in net assets from operations
        (1,285,554)
           (603,153)
               33,045
                 7,622
 Increase (decrease) in net assets from contract transactions
             401,409
          5,317,889
          4,686,259
             845,091
 Total increase (decrease) in net assets
           (884,145)
          4,714,736
          4,719,304
             852,713
         
 Net Assets as of December 31, 2011
 $       8,735,617
 $     15,313,587
 $       4,719,304
 $          852,713
 See accompanying notes.
        

S-30

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 Transamerica AEGON Active Asset Allocation - Moderate Growth VP
 Transamerica BlackRock Global Allocation VP
 Transamerica BlackRock Tactical Allocation VP
 Fidelity VIP Contrafund®
       
Subaccount(1)
Subaccount(1)
Subaccount(1)
 Subaccount
 Net Assets as of January 1, 2010
 $                    -
 $                    -
 $                    -
 $     16,581,630
 Investment Income:
        
 
 Dividends
                       -
                       -
                       -
             165,029
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                       -
                       -
                       -
             146,298
   
 Net investment income (loss)
                       -
                       -
                       -
               18,731
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                 7,506
 
 Realized gain (loss) on investments
                       -
                       -
                       -
           (329,049)
   
 Net realized capital gains (losses) on investments
                       -
                       -
                       -
           (321,543)
   
 Net change in unrealized appreciation/depreciation
                       -
                       -
                       -
          2,754,383
     
 Net Gain (Loss) on Investment
                       -
                       -
                       -
          2,432,840
 Increase (decrease) in net assets from operations
                       -
                       -
                       -
          2,451,571
 Increase (decrease) in net assets from contract transactions
                       -
                       -
                       -
        (1,312,355)
 Total increase (decrease) in net assets
                       -
                       -
                       -
          1,139,216
         
 Net Assets as of December 31, 2010
 $                    -
 $                    -
 $                    -
 $     17,720,846
 Investment Income:
        
 
 Dividends
                       -
                       -
                       -
             127,894
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               15,930
                 5,487
                 2,579
             150,371
   
 Net investment income (loss)
             (15,930)
               (5,487)
               (2,579)
             (22,477)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
               (2,203)
               (7,013)
               (3,438)
             (31,777)
   
 Net realized capital gains (losses) on investments
               (2,203)
               (7,013)
               (3,438)
             (31,777)
   
 Net change in unrealized appreciation/depreciation
           (298,803)
             (43,907)
               12,978
           (516,528)
     
 Net Gain (Loss) on Investment
           (301,006)
             (50,920)
                 9,540
           (548,305)
 Increase (decrease) in net assets from operations
           (316,936)
             (56,407)
                 6,961
           (570,782)
 Increase (decrease) in net assets from contract transactions
        28,838,973
          1,889,139
          1,067,847
        (1,862,691)
 Total increase (decrease) in net assets
        28,522,037
          1,832,732
          1,074,808
        (2,433,473)
         
 Net Assets as of December 31, 2011
 $     28,522,037
 $       1,832,732
 $       1,074,808
 $     15,287,373
 See accompanying notes.
        

S-31

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 Fidelity VIP Equity-Income
 Fidelity VIP Growth Opportunities
 Fidelity VIP Index 500
 ProFund VP Bull
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $       7,805,053
 $       3,607,491
 $       7,869,261
 $       9,581,607
 Investment Income:
        
 
 Dividends
             123,544
                       -
             149,387
               12,521
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               68,538
               30,447
               64,737
               77,043
   
 Net investment income (loss)
               55,006
             (30,447)
               84,650
             (64,522)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
             149,359
                       -
 
 Realized gain (loss) on investments
           (268,390)
           (422,270)
           (375,585)
             846,585
   
 Net realized capital gains (losses) on investments
           (268,390)
           (422,270)
           (226,226)
             846,585
   
 Net change in unrealized appreciation/depreciation
          1,226,212
          1,158,222
          1,228,835
             280,744
     
 Net Gain (Loss) on Investment
             957,822
             735,952
          1,002,609
          1,127,329
 Increase (decrease) in net assets from operations
          1,012,828
             705,505
          1,087,259
          1,062,807
 Increase (decrease) in net assets from contract transactions
           (613,249)
           (629,083)
             462,019
        (1,837,228)
 Total increase (decrease) in net assets
             399,579
               76,422
          1,549,278
           (774,421)
         
 Net Assets as of December 31, 2010
 $       8,204,632
 $       3,683,913
 $       9,418,539
 $       8,807,186
 Investment Income:
        
 
 Dividends
             186,300
                       -
             163,036
                       -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               72,343
               35,245
               75,271
               45,883
   
 Net investment income (loss)
             113,957
             (35,245)
               87,765
             (45,883)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
             225,180
             116,633
 
 Realized gain (loss) on investments
           (142,701)
           (164,584)
             149,326
             523,578
   
 Net realized capital gains (losses) on investments
           (142,701)
           (164,584)
             374,506
             640,211
   
 Net change in unrealized appreciation/depreciation
               16,936
             230,847
           (335,569)
        (1,075,796)
     
 Net Gain (Loss) on Investment
           (125,765)
               66,263
               38,937
           (435,585)
 Increase (decrease) in net assets from operations
             (11,808)
               31,018
             126,702
           (481,468)
 Increase (decrease) in net assets from contract transactions
           (399,543)
             211,286
           (175,026)
        (5,906,400)
 Total increase (decrease) in net assets
           (411,351)
             242,304
             (48,324)
        (6,387,868)
         
 Net Assets as of December 31, 2011
 $       7,793,281
 $       3,926,217
 $       9,370,215
 $       2,419,318
 See accompanying notes.
        


S-32

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 ProFund VP NASDAQ-100
 ProFund VP Small-Cap
 ProFund VP Short Small-Cap
 ProFund VP Money Market
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $       3,532,987
 $       1,048,224
 $       3,097,540
 $     17,988,781
 Investment Income:
        
 
 Dividends
                       -
                       -
                       -
                 4,957
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               41,488
               20,845
               14,006
             211,787
   
 Net investment income (loss)
             (41,488)
             (20,845)
             (14,006)
           (206,830)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
             753,799
                 9,357
           (400,664)
                       -
   
 Net realized capital gains (losses) on investments
             753,799
                 9,357
           (400,664)
                       -
   
 Net change in unrealized appreciation/depreciation
             (26,289)
               53,370
             (62,125)
                       -
     
 Net Gain (Loss) on Investment
             727,510
               62,727
           (462,789)
                       -
 Increase (decrease) in net assets from operations
             686,022
               41,882
           (476,795)
           (206,830)
 Increase (decrease) in net assets from contract transactions
           (455,129)
             181,347
        (1,274,887)
        (4,712,228)
 Total increase (decrease) in net assets
             230,893
             223,229
        (1,751,682)
        (4,919,058)
         
 Net Assets as of December 31, 2010
 $       3,763,880
 $       1,271,453
 $       1,345,858
 $     13,069,723
 Investment Income:
        
 
 Dividends
                       -
                       -
                       -
                 4,515
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
               49,878
               18,331
                 9,301
             201,944
   
 Net investment income (loss)
             (49,878)
             (18,331)
               (9,301)
           (197,429)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
             858,574
               19,463
           (232,419)
                       -
   
 Net realized capital gains (losses) on investments
             858,574
               19,463
           (232,419)
                       -
   
 Net change in unrealized appreciation/depreciation
           (545,827)
             (33,345)
             113,130
                       -
     
 Net Gain (Loss) on Investment
             312,747
             (13,882)
           (119,289)
                       -
 Increase (decrease) in net assets from operations
             262,869
             (32,213)
           (128,590)
           (197,429)
 Increase (decrease) in net assets from contract transactions
          4,509,270
             490,209
             (98,139)
          8,589,337
 Total increase (decrease) in net assets
          4,772,139
             457,996
           (226,729)
          8,391,908
         
 Net Assets as of December 31, 2011
 $       8,536,019
 $       1,729,449
 $       1,119,129
 $     21,461,631
 See accompanying notes.
        


S-33

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 ProFund VP Europe 30
 ProFund VP Oil & Gas
 ProFund VP Ultra Small-Cap
 ProFund VP Utilities
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $          431,550
 $       4,371,867
 $       2,876,036
 $       1,838,272
 Investment Income:
        
 
 Dividends
                 4,814
               18,060
                       -
               41,306
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                 2,659
               37,025
               37,128
               12,500
   
 Net investment income (loss)
                 2,155
             (18,965)
             (37,128)
               28,806
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
                       -
                       -
 
 Realized gain (loss) on investments
                  (723)
               94,117
             346,238
               59,710
   
 Net realized capital gains (losses) on investments
                  (723)
               94,117
             346,238
               59,710
   
 Net change in unrealized appreciation/depreciation
                 8,148
             610,350
          1,060,993
             (51,982)
     
 Net Gain (Loss) on Investment
                 7,425
             704,467
          1,407,231
                 7,728
 Increase (decrease) in net assets from operations
                 9,580
             685,502
          1,370,103
               36,534
 Increase (decrease) in net assets from contract transactions
           (157,027)
             274,714
          2,580,508
           (464,766)
 Total increase (decrease) in net assets
           (147,447)
             960,216
          3,950,611
           (428,232)
         
 Net Assets as of December 31, 2010
 $          284,103
 $       5,332,083
 $       6,826,647
 $       1,410,040
 Investment Income:
        
 
 Dividends
                 3,144
               10,290
                       -
               42,769
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                 4,748
               64,599
               62,279
               16,597
   
 Net investment income (loss)
               (1,604)
             (54,309)
             (62,279)
               26,172
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                       -
                       -
          2,215,335
                       -
 
 Realized gain (loss) on investments
           (104,743)
             886,467
        (4,691,245)
               63,875
   
 Net realized capital gains (losses) on investments
           (104,743)
             886,467
        (2,475,910)
               63,875
   
 Net change in unrealized appreciation/depreciation
             (24,603)
        (1,011,140)
           (920,414)
             172,778
     
 Net Gain (Loss) on Investment
           (129,346)
           (124,673)
        (3,396,324)
             236,653
 Increase (decrease) in net assets from operations
           (130,950)
           (178,982)
        (3,458,603)
             262,825
 Increase (decrease) in net assets from contract transactions
             169,691
          1,407,602
          2,389,625
          2,122,941
 Total increase (decrease) in net assets
               38,741
          1,228,620
        (1,068,978)
          2,385,766
         
 Net Assets as of December 31, 2011
 $          322,844
 $       6,560,703
 $       5,757,669
 $       3,795,806
 See accompanying notes.
        


S-34

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 ProFund VP Consumer Services
 ProFund VP Pharmaceuticals
 ProFund VP Small-Cap Value
 ProFund VP Falling U.S. Dollar
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $               170,351
 $               599,768
 $            1,734,523
 $               608,825
 Investment Income:
        
 
 Dividends
                           -
                    29,511
                      2,227
                           -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                      3,448
                      5,444
                    14,577
                      3,896
   
 Net investment income (loss)
                    (3,448)
                    24,067
                  (12,350)
                    (3,896)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                           -
                           -
                           -
                           -
 
 Realized gain (loss) on investments
                  (10,407)
                    31,296
                  285,977
                  (22,695)
   
 Net realized capital gains (losses) on investments
                  (10,407)
                    31,296
                  285,977
                  (22,695)
   
 Net change in unrealized appreciation/depreciation
                    30,060
                  (66,533)
                  (59,150)
                         440
     
 Net Gain (Loss) on Investment
                    19,653
                  (35,237)
                  226,827
                  (22,255)
 Increase (decrease) in net assets from operations
                    16,205
                  (11,170)
                  214,477
                  (26,151)
 Increase (decrease) in net assets from contract transactions
                  629,830
                    35,212
             (1,427,116)
                  (78,444)
 Total increase (decrease) in net assets
                  646,035
                    24,042
             (1,212,639)
                (104,595)
         
 Net Assets as of December 31, 2010
 $               816,386
 $               623,810
 $               521,884
 $               504,230
 Investment Income:
        
 
 Dividends
                           -
                    16,429
                           -
                           -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                      7,267
                    10,963
                      5,889
                      6,378
   
 Net investment income (loss)
                    (7,267)
                      5,466
                    (5,889)
                    (6,378)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                           -
                           -
                           -
                           -
 
 Realized gain (loss) on investments
                    74,149
                      5,543
                    47,634
                      8,984
   
 Net realized capital gains (losses) on investments
                    74,149
                      5,543
                    47,634
                      8,984
   
 Net change in unrealized appreciation/depreciation
                  (13,179)
                  144,840
                  (78,998)
                  (41,298)
     
 Net Gain (Loss) on Investment
                    60,970
                  150,383
                  (31,364)
                  (32,314)
 Increase (decrease) in net assets from operations
                    53,703
                  155,849
                  (37,253)
                  (38,692)
 Increase (decrease) in net assets from contract transactions
                  998,186
               2,222,858
                    99,698
                  146,541
 Total increase (decrease) in net assets
               1,051,889
               2,378,707
                    62,445
                  107,849
         
 Net Assets as of December 31, 2011
 $            1,868,275
 $            3,002,517
 $               584,329
 $               612,079
 See accompanying notes.
        


S-35

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 ProFund VP Emerging Markets
 ProFund VP International
 ProFund VP Asia 30
 ProFund VP Japan
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $          11,111,642
 $            5,526,517
 $            6,866,995
 $               125,805
 Investment Income:
        
 
 Dividends
                           -
                           -
                      4,020
                           -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                    85,858
                    38,135
                    46,363
                      1,207
   
 Net investment income (loss)
                  (85,858)
                  (38,135)
                  (42,343)
                    (1,207)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                  149,781
                  248,805
                           -
                           -
 
 Realized gain (loss) on investments
                  709,800
                (479,732)
                  214,771
                    (2,979)
   
 Net realized capital gains (losses) on investments
                  859,581
                (230,927)
                  214,771
                    (2,979)
   
 Net change in unrealized appreciation/depreciation
                  (85,832)
                (185,789)
                  472,737
                    (1,891)
     
 Net Gain (Loss) on Investment
                  773,749
                (416,716)
                  687,508
                    (4,870)
 Increase (decrease) in net assets from operations
                  687,891
                (454,851)
                  645,165
                    (6,077)
 Increase (decrease) in net assets from contract transactions
               7,213,859
               2,671,028
             (1,351,509)
                  197,755
 Total increase (decrease) in net assets
               7,901,750
               2,216,177
                (706,344)
                  191,678
               
         
 Net Assets as of December 31, 2010
 $          19,013,392
 $            7,742,694
 $            6,160,651
 $               317,483
 Investment Income:
        
 
 Dividends
                           -
                           -
                      1,960
                           -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                    82,897
                    39,624
                    48,590
                      3,779
   
 Net investment income (loss)
                  (82,897)
                  (39,624)
                  (46,630)
                    (3,779)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                           -
                           -
                  329,838
                           -
 
 Realized gain (loss) on investments
                  (71,930)
                (302,877)
                (206,757)
                  (29,214)
   
 Net realized capital gains (losses) on investments
                  (71,930)
                (302,877)
                  123,081
                  (29,214)
   
 Net change in unrealized appreciation/depreciation
             (2,023,304)
                (521,732)
             (1,787,458)
                  (48,552)
     
 Net Gain (Loss) on Investment
             (2,095,234)
                (824,609)
             (1,664,377)
                  (77,766)
 Increase (decrease) in net assets from operations
             (2,178,131)
                (864,233)
             (1,711,007)
                  (81,545)
 Increase (decrease) in net assets from contract transactions
           (11,197,605)
             (5,443,586)
                (522,031)
                  987,025
 Total increase (decrease) in net assets
           (13,375,736)
             (6,307,819)
             (2,233,038)
                  905,480
               
         
 Net Assets as of December 31, 2011
 $            5,637,656
 $            1,434,875
 $            3,927,613
 $            1,222,963
 See accompanying notes.
        

S-36

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 ProFund VP Short NASDAQ-100
 ProFund VP U.S. Government Plus
 ProFund VP Basic Materials
 ProFund VP Financials
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $               732,716
 $            2,287,999
 $            5,600,499
 $            1,788,997
 Investment Income:
        
 
 Dividends
                           -
                    15,855
                    27,850
                      4,770
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                      7,340
                    30,965
                    42,978
                    17,473
   
 Net investment income (loss)
                    (7,340)
                  (15,110)
                  (15,128)
                  (12,703)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                           -
                           -
                           -
                           -
 
 Realized gain (loss) on investments
                (221,982)
                (124,220)
                  532,021
                    88,135
   
 Net realized capital gains (losses) on investments
                (221,982)
                (124,220)
                  532,021
                    88,135
   
 Net change in unrealized appreciation/depreciation
                  (11,148)
                  322,229
                  686,503
                    21,250
     
 Net Gain (Loss) on Investment
                (233,130)
                  198,009
               1,218,524
                  109,385
 Increase (decrease) in net assets from operations
                (240,470)
                  182,899
               1,203,396
                    96,682
 Increase (decrease) in net assets from contract transactions
                    89,108
                  826,153
               1,377,742
                    98,149
 Total increase (decrease) in net assets
                (151,362)
               1,009,052
               2,581,138
                  194,831
               
         
 Net Assets as of December 31, 2010
 $               581,354
 $            3,297,051
 $            8,181,637
 $            1,983,828
 Investment Income:
        
 
 Dividends
                           -
                      6,065
                      9,807
                           -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                      7,233
                    34,855
                    63,038
                    16,487
   
 Net investment income (loss)
                    (7,233)
                  (28,790)
                  (53,231)
                  (16,487)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                           -
                           -
                           -
                           -
 
 Realized gain (loss) on investments
                (247,577)
                  386,161
                  623,395
                    52,163
   
 Net realized capital gains (losses) on investments
                (247,577)
                  386,161
                  623,395
                    52,163
   
 Net change in unrealized appreciation/depreciation
                    67,862
               1,333,104
             (1,923,781)
                (345,929)
     
 Net Gain (Loss) on Investment
                (179,715)
               1,719,265
             (1,300,386)
                (293,766)
 Increase (decrease) in net assets from operations
                (186,948)
               1,690,475
             (1,353,617)
                (310,253)
 Increase (decrease) in net assets from contract transactions
                  570,421
                  872,015
             (2,340,062)
                  (45,231)
 Total increase (decrease) in net assets
                  383,473
               2,562,490
             (3,693,679)
                (355,484)
         
 Net Assets as of December 31, 2011
 $               964,827
 $            5,859,541
 $            4,487,958
 $            1,628,344
 See accompanying notes.
        


S-37

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 ProFund VP Precious Metals
 ProFund VP Telecommunications
 ProFund VP Mid-Cap
 ProFund VP Short Emerging Markets
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $            5,881,222
 $               243,481
 $            5,848,174
 $               484,875
 Investment Income:
        
 
 Dividends
                           -
                    11,304
                           -
                           -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                    63,134
                      2,453
                    39,147
                      7,872
   
 Net investment income (loss)
                  (63,134)
                      8,851
                  (39,147)
                    (7,872)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                           -
                           -
                  474,386
                           -
 
 Realized gain (loss) on investments
                  938,538
                      7,214
                  251,728
                (279,279)
   
 Net realized capital gains (losses) on investments
                  938,538
                      7,214
                  726,114
                (279,279)
   
 Net change in unrealized appreciation/depreciation
               1,379,109
                    30,087
                  (60,601)
                    46,808
     
 Net Gain (Loss) on Investment
               2,317,647
                    37,301
                  665,513
                (232,471)
 Increase (decrease) in net assets from operations
               2,254,513
                    46,152
                  626,366
                (240,343)
 Increase (decrease) in net assets from contract transactions
               3,015,811
                    87,262
             (3,724,453)
                  106,983
 Total increase (decrease) in net assets
               5,270,324
                  133,414
             (3,098,087)
                (133,360)
         
 Net Assets as of December 31, 2010
 $          11,151,546
 $               376,895
 $            2,750,087
 $               351,515
 Investment Income:
        
 
 Dividends
                           -
                    12,213
                           -
                           -
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                    89,539
                      3,689
                    21,190
                      3,710
   
 Net investment income (loss)
                  (89,539)
                      8,524
                  (21,190)
                    (3,710)
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                  175,720
                           -
                  272,304
                           -
 
 Realized gain (loss) on investments
                  908,306
                    24,833
                  (64,594)
                  (28,842)
   
 Net realized capital gains (losses) on investments
               1,084,026
                    24,833
                  207,710
                  (28,842)
   
 Net change in unrealized appreciation/depreciation
             (3,187,275)
                  (40,969)
                (421,222)
                    42,175
     
 Net Gain (Loss) on Investment
             (2,103,249)
                  (16,136)
                (213,512)
                    13,333
 Increase (decrease) in net assets from operations
             (2,192,788)
                    (7,612)
                (234,702)
                      9,623
 Increase (decrease) in net assets from contract transactions
                (592,329)
                (125,867)
                (107,200)
                  227,509
 Total increase (decrease) in net assets
             (2,785,117)
                (133,479)
                (341,902)
                  237,132
         
 Net Assets as of December 31, 2011
 $            8,366,429
 $               243,416
 $            2,408,185
 $               588,647
 See accompanying notes.
        


S-38

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2010 and 2011, Except as Noted




       
 ProFund VP Short International
 Access VP High Yield
 Franklin Templeton VIP Founding Funds Allocation
 AllianceBernstein Balanced Wealth Strategy
       
 Subaccount
 Subaccount
 Subaccount
 Subaccount
 Net Assets as of January 1, 2010
 $               859,623
 $            7,829,265
 $               197,428
 $               272,849
 Investment Income:
        
 
 Dividends
                           -
                  150,319
                      9,333
                      9,445
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                      6,514
                    18,998
                      3,325
                      4,158
   
 Net investment income (loss)
                    (6,514)
                  131,321
                      6,008
                      5,287
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                           -
                           -
                           35
                           -
 
 Realized gain (loss) on investments
                (227,258)
                  846,744
                      2,257
                    13,760
   
 Net realized capital gains (losses) on investments
                (227,258)
                  846,744
                      2,292
                    13,760
   
 Net change in unrealized appreciation/depreciation
                    74,349
                (916,101)
                    11,680
                    35,707
     
 Net Gain (Loss) on Investment
                (152,909)
                  (69,357)
                    13,972
                    49,467
 Increase (decrease) in net assets from operations
                (159,423)
                    61,964
                    19,980
                    54,754
 Increase (decrease) in net assets from contract transactions
                  (89,585)
             (5,863,769)
                  238,828
                  281,444
 Total increase (decrease) in net assets
                (249,008)
             (5,801,805)
                  258,808
                  336,198
         
 Net Assets as of December 31, 2010
 $               610,615
 $            2,027,460
 $               456,236
 $               609,047
 Investment Income:
        
 
 Dividends
                           -
                    25,879
                           96
                    11,657
 Investment Expenses:
        
 
 Mortality and expense risk and other charges
                      5,880
                    21,488
                      5,426
                      5,213
   
 Net investment income (loss)
                    (5,880)
                      4,391
                    (5,330)
                      6,444
 Net realized and unrealized gains (losses) on investments:
      
 
 Capital gain distributions
                           -
                    77,239
                           -
                           -
 
 Realized gain (loss) on investments
                  (64,979)
                    78,529
                      8,407
                    48,779
   
 Net realized capital gains (losses) on investments
                  (64,979)
                  155,768
                      8,407
                    48,779
   
 Net change in unrealized appreciation/depreciation
                  101,793
                (125,673)
                  (25,727)
                  (44,073)
     
 Net Gain (Loss) on Investment
                    36,814
                    30,095
                  (17,320)
                      4,706
 Increase (decrease) in net assets from operations
                    30,934
                    34,486
                  (22,650)
                    11,150
 Increase (decrease) in net assets from contract transactions
                    22,708
                  196,943
                  235,415
                    27,761
 Total increase (decrease) in net assets
                    53,642
                  231,429
                  212,765
                    38,911
         
 Net Assets as of December 31, 2011
 $               664,257
 $            2,258,889
 $               669,001
 $               647,958
 See accompanying notes.
        

S-39

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011



 
1.
Organization and Summary of Significant Accounting Policies Organization
          
   
WRL Series Life Account (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 contact owners of WRL Freedom Builder, WRL Freedom Elite,
WRL Freedom Equity Protector, WRL Freedom Wealth Protector, WRL Freedom Elite Builder, WRL Freedom Elite Advisor, WRL Freedom Excelerator,
and WRL For Life.
Subaccount Investment by Mutual Fund:
            
Subaccount
          
Mutual Fund
  
Transamerica Series Trust - Initial Class
        
Transamerica Series Trust - Initial Class
  
 
Transamerica JPMorgan Core Bond VP
            
Transamerica JPMorgan Core Bond VP
  
 
Transamerica Asset Allocation - Conservative VP
            
Transamerica Asset Allocation - Conservative Portfolio VP
  
 
Transamerica Asset Allocation - Growth VP
            
Transamerica Asset Allocation - Growth Portfolio VP
  
 
Transamerica Asset Allocation - Moderate Growth VP
            
Transamerica Asset Allocation - Moderate Growth Portfolio VP
  
 
Transamerica Asset Allocation - Moderate VP
            
Transamerica Asset Allocation - Moderate Portfolio VP
  
 
Transamerica MFS International Equity VP
            
Transamerica MFS International Equity VP
  
 
Transamerica Clarion Global Real Estate Securities VP
            
Transamerica Clarion Global Real Estate Securities VP
  
 
Transamerica JPMorgan Tactical Allocation VP
            
Transamerica JPMorgan Tactical Allocation VP
  
 
Transamerica International Moderate Growth VP
            
Transamerica International Moderate Growth Fund VP
  
 
Transamerica JPMorgan Mid Cap Value VP
            
Transamerica JPMorgan Mid Cap Value VP
  
 
Transamerica JPMorgan Enhanced Index VP
            
Transamerica JPMorgan Enhanced Index VP
  
 
Transamerica BlackRock Large Cap Value VP
            
Transamerica BlackRock Large Cap Value VP
  
 
Transamerica AEGON High Yield Bond VP
            
Transamerica AEGON High Yield Bond VP
  
 
Transamerica PIMCO Total Return VP
            
Transamerica PIMCO Total Return VP
  
 
Transamerica Morgan Stanley Capital Growth VP
            
Transamerica Morgan Stanley Capital Growth VP
  
 
Transamerica T. Rowe Price Small Cap VP
            
Transamerica T. Rowe Price Small Cap VP
  
 
Transamerica Third Avenue Value VP
            
Transamerica Third Avenue Value VP
  
 
Transamerica Multi-Managed Balanced VP
            
Transamerica Multi-Managed Balanced VP
  
 
Transamerica AllianceBernstein Dynamic Allocation VP
            
Transamerica AllianceBernstein Dynamic Allocation VP
  
 
Transamerica WMC Diversified Growth VP
            
Transamerica WMC Diversified Growth VP
  
 
Transamerica AEGON Money Market VP
            
Transamerica AEGON Money Market VP
  
 
Transamerica Systematic Small/Mid-Cap Value VP
            
Transamerica Systematic Small/Mid-Cap Value VP
  
 
Transamerica AEGON U.S. Government Securities VP
            
Transamerica AEGON U.S. Government Securities VP
  
 
Transamerica Morgan Stanley Mid-Cap Growth VP
            
Transamerica Morgan Stanley Mid-Cap Growth VP
  
 
Transamerica Index 50 VP
            
Transamerica Index 50 VP
  
 
Transamerica Index 75 VP
            
Transamerica Index 75 VP
  
 
Transamerica Efficient Markets VP
            
Transamerica Efficient Markets VP
  
 
Transamerica Hanlon Balanced VP
            
Transamerica Hanlon Balanced VP
  
 
Transamerica Hanlon Growth & Income VP
            
Transamerica Hanlon Growth & Income VP
  
 
Transamerica Hanlon Growth VP
          
Transamerica Hanlon Growth VP
  
 
Transamerica Hanlon Income VP
          
Transamerica Hanlon Income VP
  

S-40

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




1.
Organization and Summary of Significant Accounting Policies (continued)
              
Transamerica Series Trust - Initial Class
    
Transamerica Series Trust - Initial Class
    
 
Transamerica Multi Managed Large Cap Core VP
      
Transamerica Multi Managed Large Cap Core VP
      
 
Transamerica Janus Balanced VP
      
Transamerica Janus Balanced VP
      
 
Transamerica Jennison Growth VP
      
Transamerica Jennison Growth VP
      
 
Transamerica AEGON Active Asset Allocation - Conservative VP
      
Transamerica AEGON Active Asset Allocation - Conservative VP
      
 
Transamerica AEGON Active Asset Allocation - Moderate VP
      
Transamerica AEGON Active Asset Allocation - Moderate VP
      
 
Transamerica AEGON Active Asset Allocation - Moderate Growth VP
      
Transamerica AEGON Active Asset Allocation - Moderate Growth VP
  
 
Transamerica BlackRock Global Allocation VP
      
Transamerica BlackRock Global Allocation VP
        
 
Transamerica BlackRock Tactical Allocation VP
      
Transamerica BlackRock Tactical Allocation VP
        
Fidelity® Variable Insurance Products Fund - Service Class 2
    
Fidelity® Variable Insurance Products Fund - Service Class 2
        
 
Fidelity VIP Contrafund®
      
Fidelity VIP Contrafund® Portfolio
        
 
Fidelity VIP Equity-Income
      
Fidelity VIP Equity-Income Portfolio
        
 
Fidelity VIP Growth Opportunities
      
Fidelity VIP Growth Opportunities Portfolio
        
 
Fidelity VIP Index 500
      
Fidelity VIP Index 500 Portfolio
        
Profunds Trust
    
Profunds Trust
        
 
ProFund VP Bull
      
ProFund VP Bull
        
 
ProFund VP NASDAQ-100
      
ProFund VP NASDAQ-100
        
 
ProFund VP Small-Cap
      
ProFund VP Small-Cap
        
 
ProFund VP Short Small-Cap
      
ProFund VP Short Small-Cap
        
 
ProFund VP Money Market
      
ProFund VP Money Market
        
 
ProFund VP Europe 30
      
ProFund VP Europe 30
        
 
ProFund VP Oil & Gas
      
ProFund VP Oil & Gas
        
 
ProFund VP Ultra Small-Cap
      
ProFund VP Ultra Small-Cap
        
 
ProFund VP Utilities
      
ProFund VP Utilities
        
 
ProFund VP Consumer Services
      
ProFund VP Consumer Services
        
 
ProFund VP Pharmaceuticals
      
ProFund VP Pharmaceuticals
        
 
ProFund VP Small-Cap Value
      
ProFund VP Small-Cap Value
        
 
ProFund VP Falling U.S. Dollar
      
ProFund VP Falling U.S. Dollar
        
 
ProFund VP Emerging Markets
      
ProFund VP Emerging Markets
        
 
ProFund VP International
      
ProFund VP International
        
 
ProFund VP Asia 30
      
ProFund VP Asia 30
        
 
ProFund VP Japan
      
ProFund VP Japan
        
 
ProFund VP Short NASDAQ-100
      
ProFund VP Short NASDAQ-100
        
 
ProFund VP U.S. Government Plus
      
ProFund VP U.S. Government Plus
        
 
ProFund VP Basic Materials
      
ProFund VP Basic Materials
        
 
ProFund VP Financials
      
ProFund VP Financials
        
 
ProFund VP Precious Metals
      
ProFund VP Precious Metals
        
 
ProFund VP Telecommunications
      
ProFund VP Telecommunications
        
 
ProFund VP Mid-Cap
      
ProFund VP Mid-Cap
        
 
ProFund VP Short Emerging Markets
      
ProFund VP Short Emerging Markets
        
 
ProFund VP Short International
      
ProFund VP Short International
        


S-41

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
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
  
Access One Trust
  
Access One Trust
  
Access VP High Yield
  
Access VP High Yield
  
Franklin Templeton Variable Insurance Products Trust
  
Franklin Templeton Variable Insurance Products Trust
  
AllianceBernstein Variable Products Series Fund
  
AllianceBernstein Variable Products Series Fund
  
 
AllianceBernstein Balanced Wealth Strategy
  
 
AllianceBernstein Balanced Wealth Strategy Portfolio
  
Each period reported on reflects a full twelve month period except as follows:
  
 
Subaccount
  
Inception Date
 
Transamerica BlackRock Global Allocation VP
  
May 19, 2011
 
Transamerica BlackRock Tactical Allocation VP
  
May 19, 2011
 
Transamerica AEGON Active Asset Allocation - Conservative VP
  
April 29, 2011
 
Transamerica AEGON Active Asset Allocation - Moderate VP
  
April 29, 2011
 
Transamerica AEGON Active Asset Allocation - Moderate Growth VP
  
April 29, 2011
 
Transamerica Jennison Growth VP
  
April 29, 2010
 
Transamerica Janus Balanced VP
  
July 1, 2009
 
Transamerica Efficient Markets VP
  
May 1, 2009
 
Transamerica Hanlon Balanced VP
  
May 1, 2009
 
Transamerica Hanlon Growth & Income VP
  
May 1, 2009
 
Transamerica Hanlon Growth VP
  
May 1, 2009
 
Transamerica Hanlon Income VP
  
May 1, 2009
 
Transamerica Multi Managed Large Cap Core VP
  
May 1, 2009
 
Franklin Templeton VIP Founding Funds Allocation
  
May 1, 2009
 
AllianceBernstein Balanced Wealth Strategy
  
May 1, 2009
 
Transamerica Index 50 VP
  
May 1, 2008
 
Transamerica Index 75 VP
  
May 1, 2008
 
ProFund VP Europe 30
  
February 28, 2008
 
ProFund VP Oil & Gas
  
February 28, 2008
 
ProFund VP Ultra Small-Cap
  
February 28, 2008
 
ProFund VP Utilities
  
February 28, 2008
 
ProFund VP Consumer Services
  
February 28, 2008
 
ProFund VP Pharmaceuticals
  
February 28, 2008
 
ProFund VP Small-Cap Value
  
February 28, 2008
 
ProFund VP Falling U.S. Dollar
  
February 28, 2008
 
ProFund VP Emerging Markets
  
February 28, 2008
 
ProFund VP International
  
February 28, 2008
 
ProFund VP Asia 30
  
February 28, 2008
 
ProFund VP Japan
  
February 28, 2008
 
ProFund VP Short NASDAQ-100
  
February 28, 2008
 
ProFund VP U.S. Government Plus
  
February 28, 2008
 
ProFund VP Basic Materials
  
February 28, 2008
 
ProFund VP Financials
  
February 28, 2008

S-42

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
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 (continued):
  
 
Subaccount
Inception Date
  
 
ProFund VP Precious Metals
February 28, 2008
  
 
ProFund VP Telecommunications
February 28, 2008
  
 
ProFund VP Mid-Cap
February 28, 2008
  
 
ProFund VP Short Emerging Markets
February 28, 2008
  
 
ProFund VP Short International
February 28, 2008
  
 
Access VP High Yield
February 28, 2008
  
The following Mutual Fund name changes were made effective during the fiscal year ended December 31, 2011:
  
 
Mutual Fund
Formerly
  
 
Transamerica AEGON Money Market VP
Transamerica Money Market VP
  
 
Transamerica AEGON U.S. Government Securities VP
Transamerica U.S. Government Securities VP
  
 
Transamerica JPMorgan Tactical Allocation VP
Transamerica Federated Market Opportunity VP
  
 
Transamerica Morgan Stanley Capital Growth VP
Transamerica Focus VP
  
 
Transamerica Multi-Managed Balanced VP
Transamerica Balanced VP
  
 
Transamerica Systematic Small/Mid-Cap Value VP
Transamerica Small/Mid-Cap Value VP
  
 
Transamerica Hanlon Income VP
Transamerica Hanlon Managed Income VP
  
 
Transamerica Janus Balanced VP
Transamerica Foxhall Global Hard Asset VP
  
   
The following Mutual Fund mergers were made effective 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 Asset Allocation - Moderate Growth VP
Transamerica Foxhall Emerging Markets/Pacific Rim VP
  
 
Transamerica AEGON Asset Allocation - Moderate Growth VP
Transamerica Foxhall Global Growth VP
  
 
Transamerica AEGON 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.
 
Dividend Income
                    
 
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 life
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.

S-43

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
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
Transamerica JPMorgan Core Bond VP
  
 $     12,673,875
 $     13,295,399
Transamerica Asset Allocation - Conservative VP
  
          6,801,759
        11,267,684
Transamerica Asset Allocation - Growth VP
  
        13,790,760
        25,119,862
Transamerica Asset Allocation - Moderate Growth VP
  
        14,060,035
        32,039,739
Transamerica Asset Allocation - Moderate VP
  
          6,629,081
        14,361,042
Transamerica MFS International Equity VP
  
          1,601,700
          5,578,202
Transamerica Clarion Global Real Estate Securities VP
  
          6,526,205
          6,467,970
Transamerica JPMorgan Tactical Allocation VP
  
          5,856,786
          7,891,533
Transamerica International Moderate Growth VP
  
          2,605,102
          1,473,623
Transamerica JPMorgan Mid Cap Value VP
  
               92,933
          1,163,493
Transamerica JPMorgan Enhanced Index VP
  
          5,138,642
          2,836,375
Transamerica BlackRock Large Cap Value VP
  
          6,629,544
          7,189,815
Transamerica AEGON High Yield Bond VP
  
        13,927,647
        16,847,879
Transamerica PIMCO Total Return VP
  
        14,402,970
        11,881,285
Transamerica Morgan Stanley Capital Growth VP
  
          4,831,663
          6,240,776
Transamerica T. Rowe Price Small Cap VP
  
        14,652,166
        15,778,363
Transamerica Third Avenue Value VP
  
          8,057,618
        11,511,263
Transamerica Multi-Managed Balanced VP
  
          4,691,920
        11,963,765
Transamerica AllianceBernstein Dynamic Allocation VP
  
             657,663
          1,068,135
Transamerica WMC Diversified Growth VP
  
      184,229,722
        63,134,037
Transamerica AEGON Money Market VP
  
        19,893,243
        26,081,078
Transamerica Systematic Small/Mid-Cap Value VP
  
          9,640,168
          8,616,531
Transamerica AEGON U.S. Government Securities VP
  
          6,353,267
          6,616,913
Transamerica Morgan Stanley Mid-Cap Growth VP
  
        59,146,150
        34,804,954
Transamerica Index 50 VP
  
             304,602
             142,590
Transamerica Index 75 VP
  
          1,091,673
             266,474
Transamerica Efficient Markets VP
  
             513,967
             348,663
Transamerica Hanlon Balanced VP
  
          2,550,662
          2,896,761
Transamerica Hanlon Growth & Income VP
  
          2,255,475
          1,673,025
Transamerica Hanlon Growth VP
  
          3,388,214
          2,869,022
Transamerica Hanlon Income VP
  
          8,465,640
          6,859,019
Transamerica Multi Managed Large Cap Core VP
  
          1,983,087
          1,005,797
Transamerica Janus Balanced VP
  
          3,589,703
          3,249,575


S-44

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




2.
Investments (continued)

Subaccount
  
Purchases
Sales
Transamerica Jennison Growth VP
  
 $             8,484,206
 $             3,256,765
Transamerica AEGON Active Asset Allocation - Conservative VP
  
                5,144,139
                   468,517
Transamerica AEGON Active Asset Allocation - Moderate VP
  
                   929,047
                     85,647
Transamerica AEGON Active Asset Allocation - Moderate Growth VP
  
              29,502,822
                   677,318
Transamerica BlackRock Global Allocation VP
  
                2,046,590
                   162,938
Transamerica BlackRock Tactical Allocation VP
  
                1,218,699
                   153,430
Fidelity VIP Contrafund®
  
                   749,746
                2,634,912
Fidelity VIP Equity-Income
  
                   610,337
                   895,925
Fidelity VIP Growth Opportunities
  
                   901,147
                   725,100
Fidelity VIP Index 500
  
                2,225,138
                2,087,216
ProFund VP Bull
  
                4,070,981
                9,906,633
ProFund VP NASDAQ-100
  
              26,636,770
              22,177,381
ProFund VP Small-Cap
  
                6,899,722
                6,427,845
ProFund VP Short Small-Cap
  
                8,696,154
                8,803,613
ProFund VP Money Market
  
              74,329,131
              65,937,232
ProFund VP Europe 30
  
                3,543,314
                3,375,227
ProFund VP Oil & Gas
  
                7,601,511
                6,248,237
ProFund VP Ultra Small-Cap
  
              31,975,647
              27,432,968
ProFund VP Utilities
  
                4,577,048
                2,427,935
ProFund VP Consumer Services
  
                2,840,147
                1,849,228
ProFund VP Pharmaceuticals
  
                3,719,582
                1,491,258
ProFund VP Small-Cap Value
  
                1,604,061
                1,510,251
ProFund VP Falling U.S. Dollar
  
                1,779,324
                1,639,153
ProFund VP Emerging Markets
  
                3,962,964
              15,243,406
ProFund VP International
  
                2,022,712
                7,505,912
ProFund VP Asia 30
  
                4,060,353
                4,299,153
ProFund VP Japan
  
                1,585,715
                   602,469
ProFund VP Short NASDAQ-100
  
                7,827,723
                7,264,526
ProFund VP U.S. Government Plus
  
                5,368,758
                4,525,603
ProFund VP Basic Materials
  
                4,143,469
                6,536,758
ProFund VP Financials
  
                1,356,046
                1,417,760
ProFund VP Precious Metals
  
                5,780,957
                6,287,041
ProFund VP Telecommunications
  
                1,050,709
                1,168,055
ProFund VP Mid-Cap
  
                5,829,262
                5,685,348
ProFund VP Short Emerging Markets
  
                1,674,443
                1,450,656
ProFund VP Short International
  
                4,257,154
                4,240,348


S-45

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




2.
  
Investments (continued)
         
 
Subaccount
  
Purchases
Sales
 
Access VP High Yield
  
 $             2,882,816
 $             2,604,247
 
Franklin Templeton VIP Founding Funds Allocation
  
                   387,429
                   157,344
 
AllianceBernstein Balanced Wealth Strategy
  
                1,478,895
                1,444,689

S-46

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011



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)
Transamerica JPMorgan Core Bond VP
       603,910
      (617,966)
        (14,056)
  
         498,331
       (591,350)
         (93,019)
Transamerica Asset Allocation - Conservative VP
       685,013
   (1,025,812)
      (340,799)
  
         929,542
       (921,873)
             7,669
Transamerica Asset Allocation - Growth VP
    3,559,597
   (4,421,771)
      (862,174)
  
      4,237,589
    (5,150,038)
       (912,449)
Transamerica Asset Allocation - Moderate Growth VP
    3,417,911
   (4,840,576)
   (1,422,665)
  
      4,524,291
    (5,434,925)
       (910,634)
Transamerica Asset Allocation - Moderate VP
    1,153,916
   (1,735,078)
      (581,162)
  
      1,761,290
    (1,925,633)
       (164,343)
Transamerica MFS International Equity VP
       428,099
      (724,919)
      (296,820)
  
         758,249
    (1,083,476)
       (325,227)
Transamerica Clarion Global Real Estate Securities VP
       414,234
      (518,875)
      (104,641)
  
         390,938
       (516,686)
       (125,748)
Transamerica JPMorgan Tactical Allocation VP
       497,876
      (529,551)
        (31,675)
  
         359,548
       (672,538)
       (312,990)
Transamerica International Moderate Growth VP
       424,671
      (315,446)
       109,225
  
         373,176
       (372,290)
                886
Transamerica JPMorgan Mid Cap Value VP
           1,312
        (61,251)
        (59,939)
  
             1,782
       (102,012)
       (100,230)
Transamerica JPMorgan Enhanced Index VP
       440,337
      (262,646)
       177,691
  
           44,830
         (32,401)
           12,429
Transamerica BlackRock Large Cap Value VP
       675,393
      (666,771)
           8,622
  
      1,306,326
       (721,827)
         584,499
Transamerica AEGON High Yield Bond VP
    1,049,792
   (1,277,732)
      (227,940)
  
      1,287,398
       (968,210)
         319,188
Transamerica PIMCO Total Return VP
    1,269,992
   (1,197,693)
         72,299
  
      1,480,908
    (1,486,124)
           (5,216)
Transamerica Morgan Stanley Capital Growth VP
       569,765
      (646,801)
        (77,036)
  
         427,967
       (567,238)
       (139,271)
Transamerica T. Rowe Price Small Cap VP
    1,347,271
   (1,456,959)
      (109,688)
  
         941,251
       (726,308)
         214,943
Transamerica Third Avenue Value VP
       559,858
      (810,209)
      (250,351)
  
         504,836
       (934,867)
       (430,031)
Transamerica Multi-Managed Balanced VP
       911,407
   (1,462,853)
      (551,446)
  
      8,063,047
    (1,152,505)
      6,910,542
Transamerica AllianceBernstein Dynamic Allocation VP
         68,949
        (94,497)
        (25,548)
  
           90,861
         (95,699)
           (4,838)
Transamerica WMC Diversified Growth VP
  17,996,924
   (8,882,535)
    9,114,389
  
      6,385,066
  (10,423,201)
    (4,038,135)
Transamerica AEGON Money Market VP
    2,043,363
   (2,335,108)
      (291,745)
  
      2,207,227
    (2,722,911)
       (515,684)
Transamerica Systematic Small/Mid-Cap Value VP
       863,389
      (817,815)
         45,574
  
      1,192,376
       (920,114)
         272,262
Transamerica AEGON U.S. Government Securities VP
       548,063
      (600,051)
        (51,988)
  
         530,962
       (389,632)
         141,330
Transamerica Morgan Stanley Mid-Cap Growth VP
    2,154,279
   (1,394,390)
       759,889
  
      1,065,369
    (1,459,644)
       (394,275)
Transamerica Index 50 VP
         31,494
        (16,933)
         14,561
  
           29,239
         (16,641)
           12,598

S-47

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




3. Change in Units
   
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)
Transamerica Index 75 VP
       113,985
        (37,450)
         76,535
  
           54,682
         (15,475)
           39,207
Transamerica Efficient Markets VP
         41,561
        (30,606)
         10,955
  
           25,585
         (10,868)
           14,717
Transamerica Hanlon Balanced VP
       391,528
      (426,223)
        (34,695)
  
         895,957
       (328,150)
         567,807
Transamerica Hanlon Growth & Income VP
       366,620
      (316,430)
         50,190
  
         611,894
       (328,892)
         283,002
Transamerica Hanlon Growth VP
       553,843
      (512,950)
         40,893
  
         806,976
       (447,065)
         359,911
Transamerica Hanlon Income VP
    1,306,831
   (1,200,414)
       106,417
  
      2,109,605
    (1,098,745)
      1,010,860
Transamerica Multi Managed Large Cap Core VP
       153,431
        (96,551)
         56,880
  
           99,284
         (93,509)
             5,775
Transamerica Janus Balanced VP
       560,190
      (538,161)
         22,029
  
         594,050
       (334,680)
         259,370
Transamerica Jennison Growth VP
       947,050
      (488,207)
       458,843
  
      1,290,452
       (306,886)
         983,566
Transamerica AEGON Active Asset Allocation - Conservative VP
       551,072
        (72,592)
       478,480
  
                   -
                   -
                   -
Transamerica AEGON Active Asset Allocation - Moderate VP
         99,999
        (11,679)
         88,320
  
                   -
                   -
                   -
Transamerica AEGON Active Asset Allocation - Moderate Growth VP
    3,201,078
      (117,277)
    3,083,801
  
                   -
                   -
                   -
Transamerica BlackRock Global Allocation VP
       232,640
        (35,003)
       197,637
  
                   -
                   -
                   -
Transamerica BlackRock Tactical Allocation VP
       131,860
        (21,257)
       110,603
  
                   -
                   -
                   -
Fidelity VIP Contrafund®
       161,784
      (295,477)
      (133,693)
  
         207,847
       (315,602)
       (107,755)
Fidelity VIP Equity-Income
         93,971
      (125,346)
        (31,375)
  
           94,729
       (149,554)
         (54,825)
Fidelity VIP Growth Opportunities
       167,135
      (142,483)
         24,652
  
         137,775
       (227,348)
         (89,573)
Fidelity VIP Index 500
       220,399
      (230,659)
        (10,260)
  
         346,059
       (306,633)
           39,426
ProFund VP Bull
       505,300
   (1,141,559)
      (636,259)
  
         886,959
    (1,075,814)
       (188,855)
ProFund VP NASDAQ-100
    2,168,799
   (1,816,916)
       351,883
  
      1,505,895
    (1,534,732)
         (28,837)
ProFund VP Small-Cap
       781,741
      (728,099)
         53,642
  
      3,286,344
    (3,288,678)
           (2,334)
ProFund VP Short Small-Cap
    2,312,491
   (2,332,056)
        (19,565)
  
      4,757,080
    (4,914,758)
       (157,678)
ProFund VP Money Market
  10,105,417
   (9,272,821)
       832,596
  
      9,166,921
    (9,629,586)
       (462,665)
ProFund VP Europe 30
       457,479
      (448,412)
           9,067
  
           54,344
         (73,661)
         (19,317)
ProFund VP Oil & Gas
    1,169,439
   (1,033,994)
       135,445
  
         500,783
       (473,721)
           27,062
ProFund VP Ultra Small-Cap
    4,630,880
   (4,591,379)
         39,501
  
      4,719,679
    (4,404,814)
         314,865
ProFund VP Utilities
       547,951
      (333,800)
       214,151
  
         174,384
       (234,800)
         (60,416)


S-48

 
 
 
Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





             
     
3. Change in Units
   
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 Consumer Services
       271,151
      (183,347)
         87,804
  
         151,057
         (95,613)
           55,444
ProFund VP Pharmaceuticals
       378,385
      (179,287)
       199,098
  
         107,557
       (104,900)
             2,657
ProFund VP Small-Cap Value
       166,806
      (158,144)
           8,662
  
         447,147
       (598,403)
       (151,256)
ProFund VP Falling U.S. Dollar
       204,475
      (189,950)
         14,525
  
           54,090
         (63,400)
           (9,310)
ProFund VP Emerging Markets
       793,097
   (2,146,406)
   (1,353,309)
  
      2,394,263
    (1,609,483)
         784,780
ProFund VP International
       328,176
   (1,091,962)
      (763,786)
  
      2,020,875
    (1,789,200)
         231,675
ProFund VP Asia 30
       568,291
      (646,030)
        (77,739)
  
         560,632
       (728,080)
       (167,448)
ProFund VP Japan
       307,250
      (125,662)
       181,588
  
           93,550
         (63,009)
           30,541
ProFund VP Short NASDAQ-100
    1,606,787
   (1,520,007)
         86,780
  
         558,410
       (556,875)
             1,535
ProFund VP U.S. Government Plus
       560,676
      (485,657)
         75,019
  
         690,923
       (617,811)
           73,112
ProFund VP Basic Materials
       676,217
      (962,716)
      (286,499)
  
      1,240,020
    (1,139,009)
         101,011
ProFund VP Financials
       290,355
      (302,071)
        (11,716)
  
         569,587
       (567,150)
             2,437
ProFund VP Precious Metals
    1,012,495
   (1,079,517)
        (67,022)
  
      1,056,771
       (733,084)
         323,687
ProFund VP Telecommunications
       110,734
      (125,123)
        (14,389)
  
           96,316
         (85,978)
           10,338
ProFund VP Mid-Cap
       612,026
      (632,578)
        (20,552)
  
         926,642
    (1,351,030)
       (424,388)
ProFund VP Short Emerging Markets
       322,612
      (288,244)
         34,368
  
         574,392
       (581,879)
           (7,487)
ProFund VP Short International
       621,967
      (615,594)
           6,373
  
         298,721
       (314,229)
         (15,508)
Access VP High Yield
       247,808
      (233,468)
         14,340
  
         229,327
       (758,394)
       (529,067)
Franklin Templeton VIP Founding Funds Allocation
         32,834
        (16,419)
         16,415
  
           48,877
         (31,730)
           17,147
AllianceBernstein Balanced Wealth Strategy
       119,667
      (114,892)
           4,775
  
           54,744
         (31,933)
           22,811
       
             
             

S-49

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
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.

                                       
         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica JPMorgan Core Bond VP
                              
   
12/31/2011
1,483,842
$14.50
 to
$12.53
$55,847,749
      4.24
%
0.00
%
to
1.50
%
     7.53
%
to
     5.94
%
   
12/31/2010
1,497,898
13.49
 to
11.83
54,990,397
      5.90
  
0.00
  
to
1.50
  
     8.24
  
to
     6.64
  
   
12/31/2009
1,590,917
12.46
 to
11.09
54,892,177
      4.57
  
0.00
  
to
1.50
  
     9.58
  
to
     7.96
  
   
12/31/2008
1,572,007
11.37
 to
10.27
50,786,352
      4.47
  
0.00
  
to
1.50
  
     5.58
  
to
     2.72
  
   
12/31/2007
1,502,535
10.77
 to
33.47
47,127,749
      5.18
  
0.00
  
to
0.90
  
     6.94
  
to
     5.98
  
Transamerica Asset Allocation - Conservative VP
                          
   
12/31/2011
2,664,010
11.99
 to
11.01
40,133,908
      2.75
  
0.00
  
to
1.50
  
     2.65
  
to
     1.14
  
   
12/31/2010
3,004,809
11.68
 to
10.89
44,599,874
      3.33
  
0.00
  
to
1.50
  
     8.93
  
to
     7.32
  
   
12/31/2009
2,997,140
10.72
 to
10.15
41,211,153
      4.38
  
0.00
  
to
1.50
  
   25.22
  
to
   23.37
  
   
12/31/2008
3,364,944
8.56
 to
8.22
37,299,335
      3.14
  
0.00
  
to
1.50
  
  (21.18)
  
to
 (17.75)
  
   
12/31/2007
2,022,246
10.86
 to
14.27
28,741,879
      3.22
  
0.00
  
to
0.90
  
     6.38
  
to
     5.43
  
Transamerica Asset Allocation - Growth VP
                            
   
12/31/2011
17,847,294
9.58
 to
9.29
238,137,274
      1.20
  
0.00
  
to
1.50
  
    (5.42)
  
to
   (6.81)
  
   
12/31/2010
18,709,468
10.13
 to
9.97
266,427,278
      1.10
  
0.00
  
to
1.50
  
   14.95
  
to
   13.25
  
   
12/31/2009
19,621,917
8.81
 to
8.80
245,375,296
      2.77
  
0.00
  
to
1.50
  
   29.82
  
to
   27.90
  
   
12/31/2008
19,983,377
6.79
 to
6.88
194,363,564
      2.92
  
0.00
  
to
1.50
  
  (39.63)
  
to
 (31.18)
  
   
12/31/2007
20,795,625
11.25
 to
16.22
337,873,349
      2.30
  
0.00
  
to
0.90
  
     7.76
  
to
     6.79
  


S-50

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica Asset Allocation - Moderate Growth VP
                          
   
12/31/2011
18,829,416
10.63
 to
10.09
271,487,804
      2.04
  
0.00
  
to
1.50
  
    (2.01)
  
to
   (3.46)
  
   
12/31/2010
20,252,081
10.84
 to
10.45
300,804,661
      2.21
  
0.00
  
to
1.50
  
   12.73
  
to
   11.06
  
   
12/31/2009
21,162,715
9.62
 to
9.41
281,532,459
      3.37
  
0.00
  
to
1.50
  
   28.16
  
to
   26.26
  
   
12/31/2008
21,947,519
7.51
 to
7.45
229,931,170
      3.02
  
0.00
  
to
1.50
  
  (32.76)
  
to
 (25.47)
  
   
12/31/2007
23,093,759
11.16
 to
15.77
363,338,011
      2.40
  
0.00
  
to
0.90
  
     7.81
  
to
     6.84
  
Transamerica Asset Allocation - Moderate VP
                            
   
12/31/2011
5,511,783
11.55
 to
10.65
82,588,491
      2.23
  
0.00
  
to
1.50
  
     0.59
  
to
   (0.90)
  
   
12/31/2010
6,092,945
11.49
 to
10.74
91,600,425
      2.97
  
0.00
  
to
1.50
  
   10.38
  
to
     8.75
  
   
12/31/2009
6,257,288
10.41
 to
9.88
86,014,287
      4.21
  
0.00
  
to
1.50
  
   26.40
  
to
   24.53
  
   
12/31/2008
6,756,498
8.23
 to
7.93
74,201,260
      3.46
  
0.00
  
to
1.50
  
  (25.96)
  
to
 (20.67)
  
   
12/31/2007
6,903,785
11.12
 to
15.06
103,347,293
      3.01
  
0.00
  
to
0.90
  
     7.96
  
to
     6.99
  
Transamerica MFS International Equity VP
                            
   
12/31/2011
2,855,519
8.60
 to
8.99
35,715,997
      1.23
  
0.00
  
to
1.50
  
  (10.06)
  
to
 (11.38)
  
   
12/31/2010
3,152,339
9.56
 to
10.15
44,273,875
      1.38
  
0.00
  
to
1.50
  
   10.49
  
to
     8.86
  
   
12/31/2009
3,477,566
8.65
 to
9.32
44,762,291
      2.77
  
0.00
  
to
1.50
  
   32.68
  
to
   30.72
  
   
12/31/2008
3,801,070
6.52
 to
7.13
37,280,087
      5.17
  
0.00
  
to
1.50
  
  (34.78)
  
to
 (28.70)
  
   
12/31/2007
4,520,343
15.30
 to
15.30
69,174,582
      0.96
  
0.90
  
to
0.90
  
     8.17
  
to
     8.17
  
Transamerica Clarion Global Real Estate Securities VP
                          
   
12/31/2011
1,688,106
8.44
 to
9.24
39,627,251
      6.97
  
0.00
  
to
1.50
  
    (5.74)
  
to
   (7.13)
  
   
12/31/2010
1,792,747
8.96
 to
9.94
45,249,664
      6.28
  
0.00
  
to
1.50
  
   15.67
  
to
   13.96
  
   
12/31/2009
1,918,495
7.74
 to
8.73
42,497,293
         -
  
0.00
  
to
1.50
  
   33.42
  
to
   31.45
  
   
12/31/2008
2,120,392
5.80
 to
6.64
35,802,121
      6.51
  
0.00
  
to
1.50
  
  (42.38)
  
to
 (33.61)
  
   
12/31/2007
2,640,827
10.07
 to
30.40
78,152,720
      6.51
  
0.00
  
to
0.90
  
    (6.70)
  
to
   (7.54)
  
                                       

S-51

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica JPMorgan Tactical Allocation VP
                          
   
12/31/2011
2,110,890
$10.39
 to
$9.26
$58,567,573
      1.77
%
0.00
%
to
1.50
%
     3.63
%
to
     2.10
%
   
12/31/2010
2,142,565
10.03
 to
9.07
59,508,491
      3.72
  
0.00
  
to
1.50
  
    (0.11)
  
to
   (1.59)
  
   
12/31/2009
2,455,555
10.04
 to
9.22
69,300,036
      3.15
  
0.00
  
to
1.50
  
     4.20
  
to
     2.65
  
   
12/31/2008
2,776,710
9.63
 to
8.98
76,620,436
      4.63
  
0.00
  
to
1.50
  
    (4.53)
  
to
 (10.19)
  
   
12/31/2007
3,025,316
10.09
 to
32.50
90,239,892
      3.71
  
0.00
  
to
0.90
  
    (0.48)
  
to
   (1.37)
  
Transamerica International Moderate Growth VP
                          
   
12/31/2011
1,195,357
9.68
 to
8.93
10,957,032
      2.05
  
0.00
  
to
1.50
  
    (7.37)
  
to
   (8.74)
  
   
12/31/2010
1,086,132
10.45
 to
9.79
10,841,225
      2.70
  
0.00
  
to
1.50
  
   10.50
  
to
     8.87
  
   
12/31/2009
1,085,246
9.46
 to
8.99
9,885,528
      2.72
  
0.00
  
to
1.50
  
   29.69
  
to
   27.78
  
   
12/31/2008
1,054,957
7.29
 to
7.04
7,472,170
      2.39
  
0.00
  
to
1.50
  
  (36.12)
  
to
 (29.63)
  
   
12/31/2007
779,229
11.42
 to
11.17
8,709,877
      1.27
  
0.00
  
to
0.90
  
     8.69
  
to
     7.72
  
Transamerica JPMorgan Mid Cap Value VP
                            
   
12/31/2011
383,683
9.80
 to
18.19
6,976,202
      1.11
  
0.30
  
to
0.90
  
     1.26
  
to
     1.11
  
   
12/31/2010
443,622
15.12
 to
17.99
7,977,312
      1.82
  
0.75
  
to
0.90
  
   22.07
  
to
   21.89
  
   
12/31/2009
543,852
12.39
 to
14.76
8,022,955
      1.78
  
0.75
  
to
0.90
  
   25.47
  
to
   25.28
  
   
12/31/2008
662,629
9.87
 to
11.78
7,801,733
      1.39
  
0.75
  
to
0.90
  
  (33.38)
  
to
 (33.48)
  
   
12/31/2007
853,180
14.82
 to
17.71
15,098,211
      0.97
  
0.75
  
to
0.90
  
     2.06
  
to
     1.91
  
Transamerica JPMorgan Enhanced Index VP
                            
   
12/31/2011
337,004
10.19
 to
10.41
4,287,113
      1.98
  
0.00
  
to
1.50
  
     0.74
  
to
   (0.75)
  
   
12/31/2010
159,313
10.12
 to
10.48
2,022,985
      1.37
  
0.00
  
to
1.50
  
   15.17
  
to
   13.47
  
   
12/31/2009
146,884
8.78
 to
9.24
1,631,165
      2.05
  
0.00
  
to
1.50
  
   29.59
  
to
   27.68
  
   
12/31/2008
143,853
6.78
 to
7.24
1,244,001
      5.56
  
0.00
  
to
1.50
  
  (37.35)
  
to
 (27.64)
  
   
12/31/2007
162,659
10.82
 to
13.85
2,265,492
      1.28
  
0.00
  
to
0.90
  
     4.54
  
to
     3.60
  

S-52

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





                                       
         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica BlackRock Large Cap Value VP
                            
   
12/31/2011
2,689,394
9.26
 to
9.24
58,346,888
      1.73
  
0.00
  
to
1.50
  
     2.74
  
to
     1.22
  
   
12/31/2010
2,680,772
9.01
 to
9.13
58,169,402
      0.80
  
0.00
  
to
1.50
  
   10.44
  
to
     8.81
  
   
12/31/2009
2,096,273
8.16
 to
8.39
41,943,389
      1.48
  
0.00
  
to
1.50
  
   13.99
  
to
   12.31
  
   
12/31/2008
2,180,067
7.16
 to
7.47
38,809,530
      0.93
  
0.00
  
to
1.50
  
  (33.89)
  
to
 (25.29)
  
   
12/31/2007
2,530,736
10.83
 to
27.70
68,941,852
      0.95
  
0.00
  
to
0.90
  
     4.64
  
to
     3.70
  
Transamerica AEGON High Yield Bond VP
                            
   
12/31/2011
934,685
13.60
 to
12.58
15,387,057
      5.02
  
0.00
  
to
1.50
  
     4.77
  
to
     3.22
  
   
12/31/2010
1,162,625
12.98
 to
12.18
18,462,510
    14.76
  
0.00
  
to
1.50
  
   12.44
  
to
   10.78
  
   
12/31/2009
843,437
11.55
 to
11.00
12,028,440
    11.92
  
0.00
  
to
1.50
  
   47.24
  
to
   45.06
  
   
12/31/2008
94,690
7.84
 to
7.58
918,817
    10.45
  
0.00
  
to
1.50
  
  (25.20)
  
to
 (24.19)
  
   
12/31/2007
102,108
10.48
 to
13.28
1,336,203
      5.62
  
0.00
  
to
0.90
  
     1.85
  
to
     0.94
  
Transamerica PIMCO Total Return VP
                              
   
12/31/2011
2,117,073
14.06
 to
12.29
33,381,877
      2.45
  
0.00
  
to
1.50
  
     6.27
  
to
     4.70
  
   
12/31/2010
2,044,774
13.23
 to
11.74
30,675,838
      3.99
  
0.00
  
to
1.50
  
     7.19
  
to
     5.61
  
   
12/31/2009
2,049,990
12.35
 to
11.12
28,964,781
      6.81
  
0.00
  
to
1.50
  
   16.03
  
to
   14.32
  
   
12/31/2008
1,501,811
10.64
 to
9.72
18,475,521
      6.05
  
0.00
  
to
1.50
  
    (2.79)
  
to
   (2.76)
  
   
12/31/2007
1,060,366
10.94
 to
12.85
13,571,965
      2.52
  
0.00
  
to
0.90
  
     8.95
  
to
     7.97
  


S-53

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica Morgan Stanley Capital Growth VP
                          
   
12/31/2011
1,811,729
$10.35
 to
$10.56
$28,217,193
         -
%
0.00
%
to
1.50
%
    (5.81)
%
to
   (7.20)
%
   
12/31/2010
1,888,765
10.99
 to
11.38
31,571,559
      0.88
  
0.00
  
to
1.50
  
   27.44
  
to
   25.55
  
   
12/31/2009
2,028,036
8.62
 to
9.06
26,897,044
      2.57
  
0.00
  
to
1.50
  
   27.91
  
to
   26.02
  
   
12/31/2008
2,303,251
6.74
 to
7.19
24,086,757
      2.08
  
0.00
  
to
1.50
  
  (36.36)
  
to
 (28.08)
  
   
12/31/2007
2,656,984
10.59
 to
16.66
44,097,690
      1.32
  
0.00
  
to
0.90
  
     1.04
  
to
     0.13
  
Transamerica T. Rowe Price Small Cap VP
                              
   
12/31/2011
1,685,938
13.47
 to
12.37
26,401,828
         -
  
0.00
  
to
1.50
  
     1.69
  
to
     0.19
  
   
12/31/2010
1,795,626
13.25
 to
12.34
27,953,674
         -
  
0.00
  
to
1.50
  
   34.42
  
to
   32.44
  
   
12/31/2009
1,580,683
9.85
 to
9.32
18,450,816
         -
  
0.00
  
to
1.50
  
   38.70
  
to
   36.65
  
   
12/31/2008
1,643,169
7.10
 to
6.82
13,944,419
      1.72
  
0.00
  
to
1.50
  
  (36.25)
  
to
 (31.81)
  
   
12/31/2007
1,727,599
11.14
 to
13.39
23,180,179
         -
  
0.00
  
to
0.90
  
     9.61
  
to
     8.63
  
Transamerica Third Avenue Value VP
                              
   
12/31/2011
2,675,308
8.26
 to
8.48
57,606,030
      4.96
  
0.00
  
to
1.50
  
  (14.33)
  
to
 (15.60)
  
   
12/31/2010
2,925,659
9.64
 to
10.05
74,462,852
      2.85
  
0.00
  
to
1.50
  
   15.43
  
to
   13.73
  
   
12/31/2009
3,355,690
8.35
 to
8.83
74,986,432
         -
  
0.00
  
to
1.50
  
   34.88
  
to
   32.89
  
   
12/31/2008
3,678,782
6.19
 to
6.65
61,758,740
      5.00
  
0.00
  
to
1.50
  
  (41.15)
  
to
 (33.52)
  
   
12/31/2007
4,281,762
10.52
 to
29.87
123,946,756
      3.90
  
0.00
  
to
0.90
  
     1.20
  
to
     0.29
  
Transamerica Multi-Managed Balanced VP
                              
   
12/31/2011
6,734,147
12.73
 to
11.75
109,394,054
      2.30
  
0.00
  
to
1.50
  
     4.04
  
to
     2.50
  
   
12/31/2010
7,285,593
12.24
 to
11.47
114,812,439
      0.69
  
0.00
  
to
1.50
  
   24.12
  
to
   22.29
  
   
12/31/2009
375,051
9.86
 to
9.38
4,796,603
      1.77
  
0.00
  
to
1.50
  
   26.30
  
to
   24.43
  
   
12/31/2008
362,719
7.81
 to
7.54
3,708,306
      1.79
  
0.00
  
to
1.50
  
  (32.40)
  
to
 (24.65)
  
   
12/31/2007
440,115
11.55
 to
15.28
6,717,223
      1.12
  
0.00
  
to
0.90
  
   13.61
  
to
   12.59
  
                                       

S-54

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica AllianceBernstein Dynamic Allocation VP
                          
   
12/31/2011
202,856
11.24
 to
9.64
3,015,977
      0.75
  
0.00
  
to
1.50
  
     1.81
  
to
     0.31
  
   
12/31/2010
228,404
11.04
 to
9.61
3,385,087
      5.37
  
0.00
  
to
1.50
  
     9.29
  
to
     7.67
  
   
12/31/2009
233,242
10.10
 to
8.93
3,191,995
      3.68
  
0.00
  
to
1.50
  
   31.30
  
to
   29.36
  
   
12/31/2008
266,164
7.69
 to
6.90
2,793,827
      5.78
  
0.00
  
to
1.50
  
  (36.87)
  
to
 (30.98)
  
   
12/31/2007
279,677
12.19
 to
16.94
4,705,341
      1.85
  
0.00
  
to
0.90
  
   18.63
  
to
   17.57
  
Transamerica WMC Diversified Growth VP
                            
   
12/31/2011
50,985,903
9.37
 to
9.07
709,945,091
      0.37
  
0.00
  
to
1.50
  
    (3.73)
  
to
   (5.15)
  
   
12/31/2010
41,871,514
9.73
 to
9.56
611,309,502
      0.54
  
0.00
  
to
1.50
  
   17.81
  
to
   16.07
  
   
12/31/2009
45,909,649
8.26
 to
8.24
574,078,382
      0.95
  
0.00
  
to
1.50
  
   29.20
  
to
   27.29
  
   
12/31/2008
49,835,316
6.39
 to
6.47
486,736,537
      0.23
  
0.00
  
to
1.50
  
  (46.00)
  
to
 (35.27)
  
   
12/31/2007
54,982,922
11.84
 to
18.26
1,003,665,346
      0.02
  
0.00
  
to
0.90
  
   16.29
  
to
   15.24
  
Transamerica AEGON Money Market VP
                              
   
12/31/2011
2,588,063
10.85
 to
9.60
49,515,480
      0.01
  
0.00
  
to
1.50
  
     0.01
  
to
   (1.47)
  
   
12/31/2010
2,879,808
10.85
 to
9.74
55,703,313
      0.01
  
0.00
  
to
1.50
  
     0.01
  
to
   (1.47)
  
   
12/31/2009
3,395,492
10.85
 to
9.89
66,003,875
      0.15
  
0.00
  
to
1.50
  
     0.13
  
to
   (1.35)
  
   
12/31/2008
5,511,162
10.84
 to
10.02
106,465,305
      2.29
  
0.00
  
to
1.50
  
     2.39
  
to
     0.22
  
   
12/31/2007
3,033,916
10.58
 to
20.99
60,281,924
      4.86
  
0.00
  
to
0.90
  
     5.03
  
to
     4.09
  


S-55

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica Systematic Small/Mid-Cap Value VP
                          
   
12/31/2011
1,854,594
$13.97
 to
$10.39
$35,587,598
         -
%
0.00
%
to
1.50
%
    (2.66)
%
to
   (4.09)
%
   
12/31/2010
1,809,020
14.36
 to
10.83
36,122,323
      0.82
  
0.00
  
to
1.50
  
   30.41
  
to
   28.49
  
   
12/31/2009
1,536,758
11.01
 to
8.43
23,766,218
      3.32
  
0.00
  
to
1.50
  
   43.21
  
to
   41.10
  
   
12/31/2008
1,401,587
7.69
 to
5.98
15,296,736
      1.93
  
0.00
  
to
1.50
  
  (40.87)
  
to
 (40.25)
  
   
12/31/2007
1,276,888
13.00
 to
18.64
23,810,752
      1.00
  
0.00
  
to
0.90
  
   24.74
  
to
   23.62
  
Transamerica AEGON U.S. Government Securities VP
                          
   
12/31/2011
837,085
13.44
 to
11.75
12,040,949
      2.71
  
0.00
  
to
1.50
  
     7.61
  
to
     6.02
  
   
12/31/2010
889,073
12.49
 to
11.08
11,996,681
      3.14
  
0.00
  
to
1.50
  
     4.40
  
to
     2.86
  
   
12/31/2009
747,743
11.97
 to
10.77
9,746,046
      2.39
  
0.00
  
to
1.50
  
     4.47
  
to
     2.92
  
   
12/31/2008
1,695,537
11.46
 to
10.47
21,286,906
      2.86
  
0.00
  
to
1.50
  
     7.66
  
to
     4.69
  
   
12/31/2007
117,328
10.64
 to
11.91
1,376,520
      4.45
  
0.00
  
to
0.90
  
     6.05
  
to
     5.10
  
Transamerica Morgan Stanley Mid-Cap Growth VP
                          
   
12/31/2011
6,871,553
13.74
 to
11.78
320,319,419
      0.31
  
0.00
  
to
1.50
  
    (6.71)
  
to
   (8.09)
  
   
12/31/2010
6,111,664
14.73
 to
12.81
315,951,891
      0.12
  
0.00
  
to
1.50
  
   33.90
  
to
   31.92
  
   
12/31/2009
6,505,939
11.00
 to
9.71
256,353,724
         -
  
0.00
  
to
1.50
  
   60.56
  
to
   58.19
  
   
12/31/2008
6,901,583
6.85
 to
6.14
171,968,478
      2.07
  
0.00
  
to
1.50
  
  (46.29)
  
to
 (38.60)
  
   
12/31/2007
7,648,279
12.76
 to
47.36
358,556,956
         -
  
0.00
  
to
0.90
  
   22.53
  
to
   21.43
  
Transamerica Index 50 VP
                                
   
12/31/2011
37,141
10.89
 to
10.95
392,883
      1.27
  
0.00
  
to
1.50
  
     1.57
  
to
     0.07
  
   
12/31/2010
22,580
10.73
 to
10.95
237,099
      1.34
  
0.00
  
to
1.50
  
   11.07
  
to
     9.43
  
   
12/31/2009
9,982
9.66
 to
10.00
95,207
      0.20
  
0.00
  
to
1.50
  
   16.62
  
to
   14.90
  
   
12/31/2008 (1)
13,078
8.28
 to
8.71
107,640
         -
  
0.00
  
to
1.50
  
  (17.20)
  
to
 (12.93)
  


S-56

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica Index 75 VP
                                
   
12/31/2011
202,915
10.14
 to
10.42
1,996,047
      1.72
  
0.00
  
to
1.50
  
    (0.86)
  
to
   (2.32)
  
   
12/31/2010
126,380
10.23
 to
10.67
1,263,507
      1.27
  
0.00
  
to
1.50
  
   13.15
  
to
   11.48
  
   
12/31/2009
87,173
9.04
 to
9.57
776,576
      0.36
  
0.00
  
to
1.50
  
   23.68
  
to
   21.85
  
   
12/31/2008 (1)
19,265
7.31
 to
7.85
139,984
         -
  
0.00
  
to
1.50
  
  (26.90)
  
to
 (21.47)
  
Transamerica Efficient Markets VP
                              
   
12/31/2011
36,377
13.48
 to
12.96
479,503
      0.91
  
0.00
  
to
1.50
  
    (1.93)
  
to
   (3.37)
  
   
12/31/2010
25,422
13.75
 to
13.41
344,545
      0.86
  
0.00
  
to
1.50
  
   12.67
  
to
   11.01
  
   
12/31/2009 (1)
10,705
12.20
 to
12.08
129,907
      0.02
  
0.00
  
to
1.50
  
   22.03
  
to
   20.82
  
Transamerica Hanlon Balanced VP
                              
   
12/31/2011
946,795
10.67
 to
10.26
9,877,534
      1.26
  
0.00
  
to
1.50
  
    (3.20)
  
to
   (4.62)
  
   
12/31/2010
981,490
11.03
 to
10.76
10,667,540
      0.37
  
0.00
  
to
1.50
  
    (3.28)
  
to
   (4.71)
  
   
12/31/2009 (1)
413,683
11.40
 to
11.29
4,689,366
         -
  
0.00
  
to
1.50
  
   14.00
  
to
   12.87
  
Transamerica Hanlon Growth & Income VP
                            
   
12/31/2011
917,617
10.42
 to
10.01
9,346,564
      1.38
  
0.00
  
to
1.50
  
    (7.15)
  
to
   (8.52)
  
   
12/31/2010
867,427
11.22
 to
10.94
9,594,997
      0.63
  
0.00
  
to
1.50
  
    (1.85)
  
to
   (3.30)
  
   
12/31/2009 (1)
584,425
11.43
 to
11.32
6,641,823
         -
  
0.00
  
to
1.50
  
   14.30
  
to
   13.17
  


S-57

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica Hanlon Growth VP
                              
   
12/31/2011
1,301,567
$10.17
 to
$9.77
$12,936,910
      1.51
%
0.00
%
to
1.50
%
  (11.37)
%
to
 (12.68)
%
   
12/31/2010
1,260,674
11.47
 to
11.19
14,255,487
      0.94
  
0.00
  
to
1.50
  
    (0.44)
  
to
   (1.91)
  
   
12/31/2009 (1)
900,763
11.52
 to
11.41
10,317,734
         -
  
0.00
  
to
1.50
  
   15.20
  
to
   14.06
  
Transamerica Hanlon Income VP
                              
   
12/31/2011
2,686,568
11.49
 to
11.04
30,165,370
      1.68
  
0.00
  
to
1.50
  
     3.16
  
to
     1.64
  
   
12/31/2010
2,580,151
11.13
 to
10.86
28,321,102
      0.20
  
0.00
  
to
1.50
  
     0.39
  
to
   (1.09)
  
   
12/31/2009 (1)
1,569,291
11.09
 to
10.98
17,304,606
         -
  
0.00
  
to
1.50
  
   10.90
  
to
     9.80
  
Transamerica Multi Managed Large Cap Core VP
                          
   
12/31/2011
221,165
15.46
 to
14.85
3,339,827
      0.84
  
0.00
  
to
1.50
  
    (2.27)
  
to
   (3.71)
  
   
12/31/2010
164,285
15.82
 to
15.43
2,560,486
      0.65
  
0.00
  
to
1.50
  
   19.17
  
to
   17.41
  
   
12/31/2009 (1)
158,510
13.27
 to
13.14
2,091,116
      0.77
  
0.00
  
to
1.50
  
   32.71
  
to
   31.39
  
Transamerica Janus Balanced VP
                              
   
12/31/2011
933,187
9.56
 to
9.21
8,735,617
      0.23
  
0.00
  
to
1.50
  
  (10.60)
  
to
 (11.92)
  
   
12/31/2010
911,158
10.69
 to
10.45
9,619,762
      0.14
  
0.00
  
to
1.50
  
     3.39
  
to
     1.87
  
   
12/31/2009 (1)
651,788
10.34
 to
10.26
6,711,223
         -
  
0.00
  
to
1.50
  
     3.40
  
to
     2.63
  
Transamerica Jennison Growth VP
                              
   
12/31/2011
1,442,409
10.77
 to
10.51
15,313,587
      0.13
  
0.00
  
to
1.50
  
    (0.63)
  
to
   (2.09)
  
   
12/31/2010 (1)
983,566
10.84
 to
10.73
10,598,851
      0.05
  
0.00
  
to
1.50
  
     8.40
  
to
     7.32
  
Transamerica AEGON Active Asset Allocation - Conservative VP
                        
   
12/31/2011 (1)
478,480
10.07
 to
9.82
4,719,304
         -
  
0.00
  
to
1.50
  
     0.71
  
to
   (1.77)
  
Transamerica AEGON Active Asset Allocation - Moderate VP
                        
   
12/31/2011 (1)
88,320
9.69
 to
9.61
852,713
         -
  
0.30
  
to
1.50
  
    (3.38)
  
to
   (3.85)
  
Transamerica AEGON Active Asset Allocation - Moderate Growth VP
                        
   
12/31/2011 (1)
3,083,801
9.89
 to
9.21
28,522,037
         -
  
0.00
  
to
1.50
  
    (1.06)
  
to
   (7.91)
  

S-58

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Transamerica BlackRock Global Allocation VP
                            
   
12/31/2011 (1)
197,637
9.30
 to
9.24
1,832,732
         -
  
0.30
  
to
1.50
  
    (7.22)
  
to
   (7.65)
  
Transamerica BlackRock Tactical Allocation VP
                          
   
12/31/2011 (1)
110,603
9.75
 to
9.68
1,074,808
         -
  
0.30
  
to
1.50
  
    (2.77)
  
to
   (3.21)
  
Fidelity VIP Contrafund®
                                
   
12/31/2011
1,143,869
9.27
 to
13.36
15,287,373
      0.75
  
0.30
  
to
0.90
  
    (3.65)
  
to
   (3.65)
  
   
12/31/2010
1,277,562
13.87
 to
13.87
17,720,846
      1.02
  
0.90
  
to
0.90
  
   15.88
  
to
   15.88
  
   
12/31/2009
1,385,317
11.97
 to
11.97
16,581,630
      1.18
  
0.90
  
to
0.90
  
   34.26
  
to
   34.26
  
   
12/31/2008
1,489,388
8.92
 to
8.92
13,278,218
      0.76
  
0.90
  
to
0.90
  
  (43.20)
  
to
 (43.20)
  
   
12/31/2007
1,662,224
15.70
 to
15.70
26,091,850
      0.74
  
0.90
  
to
0.90
  
   16.25
  
to
   16.25
  
Fidelity VIP Equity-Income
                                
   
12/31/2011
625,547
9.56
 to
12.46
7,793,281
      2.28
  
0.30
  
to
0.90
  
    (0.24)
  
to
   (0.24)
  
   
12/31/2010
656,922
12.49
 to
12.49
8,204,632
      1.63
  
0.90
  
to
0.90
  
   13.89
  
to
   13.89
  
   
12/31/2009
711,747
10.97
 to
10.97
7,805,053
      2.09
  
0.90
  
to
0.90
  
   28.73
  
to
   28.73
  
   
12/31/2008
776,801
8.52
 to
8.52
6,617,524
      2.18
  
0.90
  
to
0.90
  
  (43.32)
  
to
 (43.32)
  
   
12/31/2007
892,431
15.03
 to
15.03
13,414,208
      1.52
  
0.90
  
to
0.90
  
     0.36
  
to
     0.36
  


S-59

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Fidelity VIP Growth Opportunities
                              
   
12/31/2011
476,272
$9.71
 to
$8.24
$3,926,217
         -
%
0.30
%
to
0.90
%
     1.06
%
to
     1.06
%
   
12/31/2010
451,620
8.16
 to
8.16
3,683,913
         -
  
0.90
  
to
0.90
  
   22.37
  
to
   22.37
  
   
12/31/2009
541,193
6.67
 to
6.67
3,607,491
      0.26
  
0.90
  
to
0.90
  
   44.16
  
to
   44.16
  
   
12/31/2008
491,716
4.62
 to
4.62
2,273,581
      0.11
  
0.90
  
to
0.90
  
  (55.54)
  
to
 (55.54)
  
   
12/31/2007
661,082
10.40
 to
10.40
6,874,952
         -
  
0.90
  
to
0.90
  
   21.80
  
to
   21.80
  
Fidelity VIP Index 500
                                
   
12/31/2011
746,995
10.07
 to
10.14
9,370,215
      1.73
  
0.00
  
to
1.50
  
     1.78
  
to
     0.28
  
   
12/31/2010
757,255
9.89
 to
10.11
9,418,539
      1.86
  
0.00
  
to
1.50
  
   14.73
  
to
   13.03
  
   
12/31/2009
717,829
8.62
 to
8.94
7,869,261
      2.41
  
0.00
  
to
1.50
  
   26.30
  
to
   24.43
  
   
12/31/2008
631,997
6.83
 to
7.19
5,528,303
      2.38
  
0.00
  
to
1.50
  
  (37.16)
  
to
 (28.13)
  
   
12/31/2007
457,757
10.86
 to
13.56
6,471,158
      3.39
  
0.00
  
to
0.90
  
     5.18
  
to
     4.24
  
ProFund VP Bull
                                  
   
12/31/2011
244,235
9.31
 to
9.59
2,419,318
         -
  
0.00
  
to
1.50
  
     0.00
  
to
   (1.47)
  
   
12/31/2010
880,494
9.31
 to
9.73
8,807,186
      0.14
  
0.00
  
to
1.50
  
   12.58
  
to
   10.91
  
   
12/31/2009
1,069,349
8.27
 to
8.78
9,581,607
      1.38
  
0.00
  
to
1.50
  
   24.34
  
to
   22.51
  
   
12/31/2008
118,938
6.65
 to
7.16
863,897
         -
  
0.00
  
to
1.50
  
  (37.67)
  
to
 (28.37)
  
   
12/31/2007
99,749
10.67
 to
11.75
1,172,564
      0.21
  
0.00
  
to
0.90
  
     3.55
  
to
     2.62
  
ProFund VP NASDAQ-100
                                
   
12/31/2011
632,681
12.50
 to
11.49
8,536,019
         -
  
0.00
  
to
1.50
  
     1.45
  
to
   (0.04)
  
   
12/31/2010
280,798
12.32
 to
11.49
3,763,880
         -
  
0.00
  
to
1.50
  
   18.24
  
to
   16.50
  
   
12/31/2009
309,635
10.42
 to
9.86
3,532,987
         -
  
0.00
  
to
1.50
  
   52.01
  
to
   49.76
  
   
12/31/2008
203,103
6.86
 to
6.59
1,543,465
         -
  
0.00
  
to
1.50
  
  (42.48)
  
to
 (34.13)
  
   
12/31/2007
956,045
11.92
 to
13.33
12,749,323
         -
  
0.00
  
to
0.90
  
   17.62
  
to
   16.57
  

S-60

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
ProFund VP Small-Cap
                                
   
12/31/2011
171,448
9.60
 to
10.37
1,729,449
         -
  
0.00
  
to
1.50
  
    (5.65)
  
to
   (7.05)
  
   
12/31/2010
117,806
10.18
 to
11.15
1,271,453
         -
  
0.00
  
to
1.50
  
   24.79
  
to
   22.95
  
   
12/31/2009
120,140
8.15
 to
9.07
1,048,224
         -
  
0.00
  
to
1.50
  
   26.07
  
to
   24.21
  
   
12/31/2008
199,978
6.47
 to
7.30
1,396,212
         -
  
0.00
  
to
1.50
  
  (35.40)
  
to
 (26.96)
  
   
12/31/2007
160,363
10.01
 to
10.90
1,748,012
      0.23
  
0.00
  
to
0.90
  
    (2.21)
  
to
   (3.09)
  
ProFund VP Short Small-Cap
                                
   
12/31/2011
234,389
5.56
 to
4.59
1,119,129
         -
  
0.00
  
to
1.50
  
    (9.09)
  
to
 (10.43)
  
   
12/31/2010
253,954
6.12
 to
5.13
1,345,858
         -
  
0.00
  
to
1.50
  
  (28.94)
  
to
 (30.00)
  
   
12/31/2009
411,632
8.61
 to
7.32
3,097,540
      0.65
  
0.00
  
to
1.50
  
  (32.37)
  
to
 (33.37)
  
   
12/31/2008
410,993
12.73
 to
10.99
4,620,257
      2.41
  
0.00
  
to
1.50
  
   24.08
  
to
     9.92
  
   
12/31/2007
154,615
10.26
 to
9.13
1,411,173
      6.97
  
0.00
  
to
0.90
  
     4.53
  
to
     3.59
  
ProFund VP Money Market
                                
   
12/31/2011
2,101,918
10.54
 to
9.52
21,461,631
      0.02
  
0.00
  
to
1.50
  
     0.02
  
to
   (1.45)
  
   
12/31/2010
1,269,322
10.54
 to
9.66
13,069,723
      0.02
  
0.00
  
to
1.50
  
     0.02
  
to
   (1.46)
  
   
12/31/2009
1,731,987
10.54
 to
9.80
17,988,781
      0.04
  
0.00
  
to
1.50
  
     0.03
  
to
   (1.45)
  
   
12/31/2008
3,316,146
10.53
 to
9.94
34,730,445
      0.80
  
0.00
  
to
1.50
  
     0.84
  
to
   (0.57)
  
   
12/31/2007
2,531,148
10.45
 to
10.47
26,514,159
      3.20
  
0.00
  
to
0.90
  
     3.77
  
to
     2.84
  


S-61

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
ProFund VP Europe 30
                                
   
12/31/2011
44,483
$7.49
 to
$7.38
$322,844
      0.61
%
0.00
%
to
1.50
%
    (8.88)
%
to
 (10.23)
%
   
12/31/2010
35,416
8.22
 to
8.22
284,103
      1.53
  
0.00
  
to
1.50
  
     2.63
  
to
     1.12
  
   
12/31/2009
54,733
8.01
 to
8.13
431,550
      3.65
  
0.00
  
to
1.50
  
   32.30
  
to
   30.34
  
   
12/31/2008 (1)
36,559
6.05
 to
6.24
219,656
      2.60
  
0.00
  
to
1.50
  
  (39.47)
  
to
 (37.62)
  
ProFund VP Oil & Gas
                                
   
12/31/2011
763,702
8.90
 to
7.82
6,560,703
      0.14
  
0.00
  
to
1.50
  
     2.25
  
to
     0.74
  
   
12/31/2010
628,257
8.70
 to
7.76
5,332,083
      0.43
  
0.00
  
to
1.50
  
   17.76
  
to
   16.02
  
   
12/31/2009
601,195
7.39
 to
6.69
4,371,867
         -
  
0.00
  
to
1.50
  
   15.50
  
to
   13.79
  
   
12/31/2008 (1)
287,574
6.40
 to
5.88
1,826,872
         -
  
0.00
  
to
1.50
  
  (36.01)
  
to
 (41.24)
  
ProFund VP Ultra Small-Cap
                                
   
12/31/2011
869,109
6.83
 to
7.47
5,757,669
         -
  
0.00
  
to
1.50
  
  (18.83)
  
to
 (20.03)
  
   
12/31/2010
829,608
8.42
 to
9.34
6,826,647
         -
  
0.00
  
to
1.50
  
   48.44
  
to
   46.25
  
   
12/31/2009
514,743
5.67
 to
6.39
2,876,036
      0.09
  
0.00
  
to
1.50
  
   40.18
  
to
   38.10
  
   
12/31/2008 (1)
107,616
4.05
 to
4.62
432,263
      0.70
  
0.00
  
to
1.50
  
  (59.55)
  
to
 (53.76)
  
ProFund VP Utilities
                                
   
12/31/2011
377,544
10.39
 to
9.47
3,795,806
      2.13
  
0.00
  
to
1.50
  
   17.51
  
to
   15.78
  
   
12/31/2010
163,393
8.84
 to
8.18
1,410,040
      2.82
  
0.00
  
to
1.50
  
     5.95
  
to
     4.38
  
   
12/31/2009
223,809
8.35
 to
7.84
1,838,272
      4.24
  
0.00
  
to
1.50
  
   10.73
  
to
     9.10
  
   
12/31/2008 (1)
61,007
7.54
 to
7.19
456,532
      1.49
  
0.00
  
to
1.50
  
  (24.62)
  
to
 (28.14)
  
ProFund VP Consumer Services
                                
   
12/31/2011
161,851
11.92
 to
12.62
1,868,275
         -
  
0.00
  
to
1.50
  
     5.50
  
to
     3.94
  
   
12/31/2010
74,047
11.30
 to
12.14
816,386
         -
  
0.00
  
to
1.50
  
   21.39
  
to
   19.60
  
   
12/31/2009
18,603
9.30
 to
10.15
170,351
         -
  
0.00
  
to
1.50
  
   30.80
  
to
   28.87
  
   
12/31/2008 (1)
19,837
7.11
 to
7.88
140,060
         -
  
0.00
  
to
1.50
  
  (28.86)
  
to
 (21.22)
  

S-62

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
ProFund VP Pharmaceuticals
                                
   
12/31/2011
261,752
11.85
 to
12.00
3,002,517
      1.25
  
0.00
  
to
1.50
  
   16.13
  
to
   14.42
  
   
12/31/2010
62,654
10.20
 to
10.48
623,810
      4.80
  
0.00
  
to
1.50
  
     0.48
  
to
   (1.01)
  
   
12/31/2009
59,997
10.15
 to
10.59
599,768
      1.75
  
0.00
  
to
1.50
  
   16.90
  
to
   15.17
  
   
12/31/2008 (1)
51,607
8.69
 to
9.20
445,070
      2.58
  
0.00
  
to
1.50
  
  (13.13)
  
to
   (8.04)
  
ProFund VP Small-Cap Value
                                
   
12/31/2011
58,587
10.26
 to
10.62
584,329
         -
  
0.00
  
to
1.50
  
    (4.10)
  
to
   (5.52)
  
   
12/31/2010
49,925
10.70
 to
11.24
521,884
      0.13
  
0.00
  
to
1.50
  
   22.10
  
to
   20.30
  
   
12/31/2009
201,181
8.76
 to
9.34
1,734,523
      0.18
  
0.00
  
to
1.50
  
   20.40
  
to
   18.62
  
   
12/31/2008 (1)
21,460
7.28
 to
7.88
154,996
         -
  
0.00
  
to
1.50
  
  (27.25)
  
to
 (21.24)
  
ProFund VP Falling U.S. Dollar
                                
   
12/31/2011
70,638
8.96
 to
8.34
612,079
         -
  
0.00
  
to
1.50
  
    (2.72)
  
to
   (4.16)
  
   
12/31/2010
56,113
9.21
 to
8.71
504,230
         -
  
0.00
  
to
1.50
  
    (2.59)
  
to
   (4.03)
  
   
12/31/2009
65,423
9.45
 to
9.07
608,825
      3.24
  
0.00
  
to
1.50
  
     3.32
  
to
     1.79
  
   
12/31/2008 (1)
83,658
9.15
 to
8.91
760,102
         -
  
0.00
  
to
1.50
  
     8.51
  
to
   10.88
  


S-63

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
ProFund VP Emerging Markets
                                
   
12/31/2011
803,984
$7.25
 to
$7.71
$5,637,656
         -
%
0.00
%
to
1.50
%
  (19.70)
%
to
 (20.89)
%
   
12/31/2010
2,157,293
9.03
 to
9.75
19,013,392
         -
  
0.00
  
to
1.50
  
     9.77
  
to
     8.15
  
   
12/31/2009
1,372,513
8.22
 to
9.02
11,111,642
      0.13
  
0.00
  
to
1.50
  
   62.36
  
to
   59.96
  
   
12/31/2008 (1)
144,687
5.07
 to
5.64
727,622
      0.75
  
0.00
  
to
1.50
  
  (49.34)
  
to
 (43.64)
  
ProFund VP International
                                
   
12/31/2011
213,244
6.96
 to
7.12
1,434,875
         -
  
0.00
  
to
1.50
  
  (14.34)
  
to
 (15.60)
  
   
12/31/2010
977,030
8.12
 to
8.44
7,742,694
         -
  
0.00
  
to
1.50
  
     7.80
  
to
     6.21
  
   
12/31/2009
745,355
7.53
 to
7.95
5,526,517
      0.03
  
0.00
  
to
1.50
  
   24.65
  
to
   22.80
  
   
12/31/2008 (1)
64,766
6.04
 to
6.47
388,476
      1.25
  
0.00
  
to
1.50
  
  (39.58)
  
to
 (35.28)
  
ProFund VP Asia 30
                                
   
12/31/2011
568,855
7.13
 to
7.92
3,927,613
      0.04
  
0.00
  
to
1.50
  
  (27.00)
  
to
 (28.07)
  
   
12/31/2010
646,594
9.76
 to
11.01
6,160,651
      0.07
  
0.00
  
to
1.50
  
   13.90
  
to
   12.22
  
   
12/31/2009
814,042
8.57
 to
9.81
6,866,995
      1.14
  
0.00
  
to
1.50
  
   54.20
  
to
   51.92
  
   
12/31/2008 (1)
112,114
5.56
 to
6.46
618,511
      1.21
  
0.00
  
to
1.50
  
  (44.43)
  
to
 (35.44)
  
ProFund VP Japan
                                
   
12/31/2011
229,831
5.50
 to
5.39
1,222,963
         -
  
0.00
  
to
1.50
  
  (18.54)
  
to
 (19.74)
  
   
12/31/2010
48,243
6.75
 to
6.71
317,483
         -
  
0.00
  
to
1.50
  
    (6.53)
  
to
   (7.91)
  
   
12/31/2009
17,702
7.22
 to
7.29
125,805
      0.60
  
0.00
  
to
1.50
  
   10.33
  
to
     8.70
  
   
12/31/2008 (1)
9,022
6.54
 to
6.71
58,614
    18.13
  
0.00
  
to
1.50
  
  (34.56)
  
to
 (32.93)
  
ProFund VP Short NASDAQ-100
                              
   
12/31/2011
186,573
5.35
 to
5.22
964,827
         -
  
0.00
  
to
1.50
  
  (10.48)
  
to
 (11.80)
  
   
12/31/2010
99,793
5.97
 to
5.91
581,354
         -
  
0.00
  
to
1.50
  
  (21.18)
  
to
 (22.35)
  
   
12/31/2009
98,258
7.58
 to
7.62
732,716
      0.31
  
0.00
  
to
1.50
  
  (40.66)
  
to
 (41.54)
  
   
12/31/2008 (1)
98,269
12.77
 to
13.03
1,246,070
      2.44
  
0.00
  
to
1.50
  
   27.72
  
to
   30.26
  

S-64

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
ProFund VP U.S. Government Plus
                              
   
12/31/2011
376,481
16.09
 to
15.14
5,859,541
      0.15
  
0.00
  
to
1.50
  
   43.51
  
to
   41.40
  
   
12/31/2010
301,462
11.21
 to
10.70
3,297,051
      0.45
  
0.00
  
to
1.50
  
   10.11
  
to
     8.49
  
   
12/31/2009
228,350
10.18
 to
9.87
2,287,999
      0.05
  
0.00
  
to
1.50
  
  (32.62)
  
to
 (33.62)
  
   
12/31/2008 (1)
283,538
15.11
 to
14.86
4,253,928
      1.06
  
0.00
  
to
1.50
  
   51.14
  
to
   48.62
  
ProFund VP Basic Materials
                                
   
12/31/2011
556,324
8.34
 to
8.04
4,487,958
      0.13
  
0.00
  
to
1.50
  
  (16.15)
  
to
 (17.39)
  
   
12/31/2010
842,823
9.95
 to
9.73
8,181,637
      0.55
  
0.00
  
to
1.50
  
   29.69
  
to
   27.78
  
   
12/31/2009
741,812
7.67
 to
7.62
5,600,499
      0.90
  
0.00
  
to
1.50
  
   62.37
  
to
   59.97
  
   
12/31/2008 (1)
129,552
4.72
 to
4.76
607,611
      0.21
  
0.00
  
to
1.50
  
  (52.76)
  
to
 (52.38)
  
ProFund VP Financials
                                
   
12/31/2011
286,101
5.88
 to
7.16
1,628,344
         -
  
0.00
  
to
1.50
  
  (13.83)
  
to
 (15.10)
  
   
12/31/2010
297,817
6.82
 to
8.43
1,983,828
      0.24
  
0.00
  
to
1.50
  
   10.93
  
to
     9.29
  
   
12/31/2009
295,380
6.15
 to
7.72
1,788,997
      1.87
  
0.00
  
to
1.50
  
   15.01
  
to
   13.31
  
   
12/31/2008 (1)
104,586
5.35
 to
6.81
555,616
      1.56
  
0.00
  
to
1.50
  
  (46.51)
  
to
 (31.89)
  


S-65

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
ProFund VP Precious Metals
                                
   
12/31/2011
995,438
$8.69
 to
$8.87
$8,366,429
         -
%
0.00
%
to
1.50
%
  (19.21)
%
to
 (20.41)
%
   
12/31/2010
1,062,460
10.75
 to
11.14
11,151,546
         -
  
0.00
  
to
1.50
  
   32.93
  
to
   30.97
  
   
12/31/2009
738,773
8.09
 to
8.51
5,881,222
      0.91
  
0.00
  
to
1.50
  
   35.33
  
to
   33.33
  
   
12/31/2008 (1)
365,031
5.98
 to
6.38
2,165,703
      3.70
  
0.00
  
to
1.50
  
  (40.24)
  
to
 (36.21)
  
ProFund VP Telecommunications
                              
   
12/31/2011
25,563
9.84
 to
9.94
243,416
      2.90
  
0.00
  
to
1.50
  
     1.87
  
to
     0.36
  
   
12/31/2010
39,952
9.66
 to
9.91
376,895
      3.94
  
0.00
  
to
1.50
  
   15.68
  
to
   13.98
  
   
12/31/2009
29,614
8.35
 to
8.69
243,481
      3.96
  
0.00
  
to
1.50
  
     7.32
  
to
     5.73
  
   
12/31/2008 (1)
58,055
7.78
 to
8.22
448,505
      1.66
  
0.00
  
to
1.50
  
  (22.17)
  
to
 (17.79)
  
ProFund VP Mid-Cap
                                
   
12/31/2011
242,163
10.28
 to
10.20
2,408,185
         -
  
0.00
  
to
1.50
  
    (4.18)
  
to
   (5.60)
  
   
12/31/2010
262,715
10.73
 to
10.80
2,750,087
         -
  
0.00
  
to
1.50
  
   24.05
  
to
   22.22
  
   
12/31/2009
687,103
8.65
 to
8.84
5,848,174
         -
  
0.00
  
to
1.50
  
   32.88
  
to
   30.91
  
   
12/31/2008 (1)
121,297
6.51
 to
6.75
783,701
      0.70
  
0.00
  
to
1.50
  
  (34.93)
  
to
 (32.48)
  
ProFund VP Short Emerging Markets
                              
   
12/31/2011
99,480
6.13
 to
5.40
588,647
         -
  
0.00
  
to
1.50
  
   10.66
  
to
     9.03
  
   
12/31/2010
65,112
5.54
 to
4.96
351,515
         -
  
0.00
  
to
1.50
  
  (18.42)
  
to
 (19.63)
  
   
12/31/2009
72,599
6.79
 to
6.17
484,875
         -
  
0.00
  
to
1.50
  
  (48.71)
  
to
 (49.47)
  
   
12/31/2008 (1)
128,412
13.23
 to
12.21
1,686,787
      0.08
  
0.00
  
to
1.50
  
   32.34
  
to
   22.07
  
ProFund VP Short International
                              
   
12/31/2011
88,075
7.80
 to
6.93
664,257
         -
  
0.00
  
to
1.50
  
     1.80
  
to
     0.30
  
   
12/31/2010
81,702
7.66
 to
6.91
610,615
         -
  
0.00
  
to
1.50
  
  (14.69)
  
to
 (15.96)
  
   
12/31/2009
97,210
8.98
 to
8.22
859,623
         -
  
0.00
  
to
1.50
  
  (30.28)
  
to
 (31.31)
  
   
12/31/2008 (1)
143,672
12.88
 to
11.97
1,837,683
      0.05
  
0.00
  
to
1.50
  
   28.85
  
to
   19.73
  

S-66

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011





         
Unit FairValue
        
Expense
  
Total Return
  
         
Corresponding to
    
Investment
Ratio
      
Corresponding to
    
   
Year
    
Lowest to Highest
  
Net
Income
Lowest to
      
Lowest to Highest
    
Subaccount
Ended
Units
  
Expense Ratio
  
Assets
Ratio*
Highest**
      
Expense Ratio***
    
Access VP High Yield
                                
   
12/31/2011
167,471
13.95
 to
13.04
2,258,889
      1.07
  
0.00
  
to
1.50
  
     2.74
  
to
     1.23
  
   
12/31/2010
153,131
13.57
 to
12.88
2,027,460
      6.13
  
0.00
  
to
1.50
  
   16.37
  
to
   14.66
  
   
12/31/2009
682,198
11.66
 to
11.23
7,829,265
      8.96
  
0.00
  
to
1.50
  
   16.91
  
to
   15.19
  
   
12/31/2008 (1)
1,024,119
9.98
 to
9.75
10,141,967
      7.35
  
0.00
  
to
1.50
  
    (0.23)
  
to
   (2.47)
  
Franklin Templeton VIP Founding Funds Allocation
                          
   
12/31/2011
48,942
14.00
 to
13.45
669,001
      0.02
  
0.00
  
to
1.50
  
    (1.67)
  
to
   (3.12)
  
   
12/31/2010
32,527
14.24
 to
13.89
456,236
      2.63
  
0.00
  
to
1.50
  
   10.24
  
to
     8.61
  
   
12/31/2009 (1)
15,380
12.91
 to
12.79
197,428
      4.77
  
0.00
  
to
1.50
  
   29.14
  
to
   27.87
  
AllianceBernstein Balanced Wealth Strategy
                            
   
12/31/2011
49,484
13.40
 to
12.88
647,958
      1.93
  
0.00
  
to
1.50
  
    (3.06)
  
to
   (4.49)
  
   
12/31/2010
44,709
13.82
 to
13.48
609,047
      2.05
  
0.00
  
to
1.50
  
   10.30
  
to
     8.67
  
   
12/31/2009 (1)
21,898
12.53
 to
12.41
272,849
      0.28
  
0.00
  
to
1.50
  
   25.33
  
to
   24.09
  


S-67




 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
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.  Effective for 2011, total return is shown for expense ratios that represent a full year only.  When new expense ratios are added, the total returns shown correspond to the prior year high/low expense ratio.
     
Expense Ratio
      
Inception Date
                
     
0.30%
        
February 22, 2011
                
There are subaccounts that have total return ranges outside of the range indicated above.  The following is a list of the subaccounts and their corresponding lowest and highest total return.
   
Subaccount
          
     2011 Total Return Range
          
   
Transamerica Asset Allocation - Conservative VP
  
     0.92
%
to
  
      2.65
%
        
   
Transamerica Asset Allocation - Growth VP
    
    (8.29)
%
to
  
    (5.42)
%
        
   
Transamerica Asset Allocation - Moderate Growth VP
  
    (4.25)
%
to
  
    (2.01)
%
        
   
Transamerica Asset Allocation - Moderate VP
  
    (1.37)
%
to
  
      0.59
%
        
   
Transamerica MFS International Equity VP
    
  (12.17)
%
to
  
   (10.06)
%
        
   
Transamerica Clarion Global Real Estate Securities VP
  
    (7.61)
%
to
  
    (5.74)
%
        
   
Transamerica JPMorgan Tactical Allocation VP
  
     1.97
%
to
  
      3.63
%
        
   
Transamerica International Moderate Growth VP
  
    (8.91)
%
to
  
    (7.37)
%
        
   
Transamerica JPMorgan Mid Cap Value VP
    
    (2.03)
%
to
  
      1.26
%
        
   
Transamerica JPMorgan Enhanced Index VP
    
    (3.38)
%
to
  
      0.74
%
        
   
Transamerica BlackRock Large Cap Value VP
  
    (3.27)
%
to
  
      2.74
%
        
   
Transamerica AEGON High Yield Bond VP
    
     0.69
%
to
  
      4.77
%
        
   
Transamerica Morgan Stanley Capital Growth VP
  
    (9.75)
%
to
  
    (5.81)
%
        
   
Transamerica T. Rowe Price Small Cap VP
    
    (4.72)
%
to
  
      1.69
%
        
   
Transamerica Third Avenue Value VP
      
  (17.84)
%
to
  
   (14.33)
%
        
   
Transamerica Multi-Managed Balanced VP
    
    (0.47)
%
to
  
      4.04
%
        
   
Transamerica AllianceBernstein Dynamic Allocation VP
    (0.05)
%
to
  
      1.81
%
        
   
Transamerica WMC Diversified Growth VP
    
    (7.95)
%
to
  
    (3.73)
%
        
   
Transamerica Systematic Small/Mid-Cap Value VP
  
    (8.31)
%
to
  
    (2.66)
%
        
   
Transamerica Morgan Stanley Mid-Cap Growth VP
  
    (9.82)
%
to
  
    (6.71)
%
        
   
Transamerica Index 50 VP
        
    (0.41)
%
to
  
      1.57
%
        
   
Transamerica Index 75 VP
        
    (3.72)
%
to
  
    (0.86)
%
        
   
Transamerica Efficient Markets VP
      
    (4.86)
%
to
  
    (1.93)
%
        
   
Transamerica Hanlon Balanced VP
      
    (4.75)
%
to
  
    (3.20)
%
        
   
Transamerica Hanlon Growth & Income VP
    
    (9.10)
%
to
  
    (7.15)
%
        
   
Transamerica Hanlon Growth VP
      
  (13.66)
%
to
  
   (11.37)
%
        
   
Transamerica Multi Managed Large Cap Core VP
  
    (6.90)
%
to
  
    (2.27)
%
        
   
Transamerica Janus Balanced VP
      
  (14.29)
%
to
  
   (10.60)
%
        
   
Transamerica Jennison Growth VP
      
    (4.51)
%
to
  
    (0.63)
%
        


S-68

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011




4.
Financial Highlights (continued)
                    
Subaccount
          
     2011 Total Return Range
Transamerica AEGON Active Asset Allocation - Moderate VP
    (3.85)
%
to
  
    (3.09)
%
Transamerica BlackRock Global Allocation VP
  
    (7.65)
%
to
  
    (6.97)
%
Transamerica BlackRock Tactical Allocation VP
  
    (3.21)
%
to
  
    (2.50)
%
Fidelity VIP Contrafund®
        
    (7.26)
%
to
  
    (3.65)
%
Fidelity VIP Equity-Income
        
    (4.44)
%
to
  
    (0.24)
%
Fidelity VIP Growth Opportunities
      
    (2.93)
%
to
  
      1.06
%
Fidelity VIP Index 500
        
    (3.16)
%
to
  
      1.78
%
ProFund VP Bull
        
    (4.57)
%
to
  
      0.00
%
ProFund VP NASDAQ-100
        
    (3.18)
%
to
  
      1.45
%
ProFund VP Small-Cap
        
    (9.08)
%
to
  
    (5.65)
%
ProFund VP Short Small-Cap
      
  (10.43)
%
to
  
    (4.95)
%
ProFund VP Europe 30
        
  (14.73)
%
to
  
    (8.88)
%
ProFund VP Oil & Gas
        
    (9.34)
%
to
  
      2.25
%
ProFund VP Ultra Small-Cap
        
  (24.33)
%
to
  
   (18.83)
%
ProFund VP Utilities
        
   14.62
%
to
  
    17.51
%
ProFund VP Consumer Services
      
     1.43
%
to
  
      5.50
%
ProFund VP Pharmaceuticals
      
   14.42
%
to
  
    16.31
%
ProFund VP Small-Cap Value
      
    (7.07)
%
to
  
    (4.10)
%
ProFund VP Falling U.S. Dollar
      
    (4.34)
%
to
  
    (2.72)
%
ProFund VP Emerging Markets
      
  (20.89)
%
to
  
   (16.12)
%
ProFund VP International
        
  (17.07)
%
to
  
   (14.34)
%
ProFund VP Japan
        
  (20.92)
%
to
  
   (18.54)
%
ProFund VP Short NASDAQ-100
      
  (11.80)
%
to
  
    (5.82)
%
ProFund VP U.S. Government Plus
      
   41.40
%
to
  
    50.52
%
ProFund VP Financials
        
  (17.39)
%
to
  
   (13.83)
%
ProFund VP Precious Metals
        
  (20.41)
%
to
  
   (13.40)
%
ProFund VP Telecommunications
      
     0.36
%
to
  
      3.25
%
ProFund VP Mid-Cap
        
    (9.48)
%
to
  
    (4.18)
%
ProFund VP Short Emerging Markets
      
     6.36
%
to
  
    10.66
%
ProFund VP Short International
      
     0.30
%
to
  
      5.71
%
Access VP High Yield
        
     0.96
%
to
  
      2.74
%
Franklin Templeton VIP Founding Funds Allocation
  
    (6.06)
%
to
  
    (1.67)
%
AllianceBernstein Balanced Wealth Strategy
    
    (5.71)
%
to
  
    (3.06)
%

S-69

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
Notes to Financial Statements
December 31, 2011



5.
Administrative and Mortality and Expense Risk Charges
          
                     
 
Under some forms of the contracts, a sales charge and premium taxes are deducted by WRL prior to allocation of policy owner payments to the subaccounts.  Contingent surrender charges may also apply.
 
Under all forms of the contracts, monthly charges against policy cash values are made to compensate WRL
for costs of insurance provided.
 
A daily charge equal to an annual rate from 0.00% and 1.50% of average daily net assets is assessed to compensate WRL for assumption of mortality and expense risks in connection with the issuance and administration of the Contracts.  This charge (not assessed at the individual contract level) effectively reduces the value of a unit outstanding during the year.
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.


S-70

 
 
 

Western Reserve Life Assurance Co. of Ohio
WRL Series Life Account
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.
 
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.
 
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.
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.


S-71

 
 
 


 
Financial Statements And Schedules– Statutory Basis

Western Reserve Life Assurance Co. of Ohio
Years Ended December 31, 2011, 2010 and 2009

 
 
 

 
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.

 
WRL 2011 SEC
 
G-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.
 
EY
April 3, 2012


 
WRL 2011 SEC
 
G-2
 

Western Reserve Life Assurance Co. of Ohio

Balance Sheets – Statutory Basis
(Dollars in Thousands, Except per Share Amounts)







 
WRL 2011 SEC

 
G-3
 



 See accompanying notes.

 
WRL 2011 SEC


 
G-4
 


Western Reserve Life Assurance Co. of Ohio

Statements of Operations – Statutory Basis
(Dollars in Thousands, Except per Share Amounts)


 
WRL 2011 SEC 
 
G-5
 

Western Reserve Life Assurance Co. of Ohio

Statements of Changes in Capital and Surplus – Statutory Basis
 (Dollars in Thousands)


See accompanying notes.

 
WRL 2011 SEC
 
G-6
 

Western Reserve Life Assurance Co. of Ohio

Statements of Changes in Capital and Surplus – Statutory Basis (continued)
(Dollars in Thousands)

See accompanying notes.

 
WRL 2011 SEC
 
G-7
 

Western Reserve Life Assurance Co. of Ohio

Statements of Cash Flow – Statutory Basis
 (Dollars in Thousands)



 
WRL 2011 SEC
 
G-8
 

Western Reserve Life Assurance Co. of Ohio

Statements of Cash Flow – Statutory Basis (continued)
(Dollars in Thousands)

See accompanying notes.



















 
WRL 2011 SEC
 
G-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:









 
WRL 2011 SEC
 
G-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 c
ash 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

 
WRL 2011 SEC
 
G-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.



 
WRL 2011 SEC
 
G-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,

 
WRL 2011 SEC
 
G-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


 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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


indicate the need for such reserves or the net premiums exceed the gross premiums on any insurance in force.

 
WRL 2011 SEC
 
G-19
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)


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.

 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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


 
WRL 2011 SEC
 
G-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

 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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:


 
WRL 2011 SEC
 
G-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

 
WRL 2011 SEC
 
G-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 marketsaccessible 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.

 
WRL 2011 SEC
 
G-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:


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.

 
WRL 2011 SEC
 
G-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:

The Company’s policy is to recognize transfers in and out of Level 3 as of the beginning of the reporting period.

 
WRL 2011 SEC
 
G-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:


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


 
WRL 2011 SEC
 
G-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:





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.

 
WRL 2011 SEC
 
G-33
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)



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.

 
WRL 2011 SEC
 
G-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.


 
WRL 2011 SEC
 
G-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.



 
WRL 2011 SEC
 
G-36
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)


The following loan-backed and structured securities were held at December 31, 2011, for which an OTTI had been previously recognized:
 
WRL 2011 SEC
 
G-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:




Detail of net investment income is presented below:


 
WRL 2011 SEC
 
G-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:



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:

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.

 
WRL 2011 SEC
 
G-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:

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:


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.

 
WRL 2011 SEC
 
G-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:


 



*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,



 
WRL 2011 SEC
 
G-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:


 
WRL 2011 SEC
 
G-42
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)



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:

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.


 
WRL 2011 SEC
 
G-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

 
WRL 2011 SEC
 
G-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 c
harge 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:


 
WRL 2011 SEC
 
G-45
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)


The main components of deferred income tax amounts are as follows:








 
WRL 2011 SEC
 
G-46
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)


The Company did not record a valuation allowance for deferred tax assets as of December 31, 2011 or 2010.



 
WRL 2011 SEC
 
G-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:




 
WRL 2011 SEC
 
G-48
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)





 
WRL 2011 SEC
 
G-49
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)



·  
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



 
WRL 2011 SEC
 
G-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:

Used in SSAP No. 10R, paragraph 10.d.:




 
WRL 2011 SEC
 
G-51
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)


*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.


The impact of tax planning strategies at December 31, 2011 and 2010 and the change from the prior year was as follows:

 
WRL 2011 SEC
 
G-52
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)




Current year income taxes incurred consist of the following major components:




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:

 
WRL 2011 SEC
 
G-53
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)



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.

 
WRL 2011 SEC
 
G-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:



 
WRL 2011 SEC
 
G-55
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)





 
WRL 2011 SEC
 
G-56
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)






 
WRL 2011 SEC
 
G-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:




 
WRL 2011 SEC
 
G-58
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)




 
WRL 2011 SEC
 
G-59
 
Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)
 (Dollars in Thousands)






 
WRL 2011 SEC
 
G-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:

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:


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.


 
WRL 2011 SEC
 
G-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:








 
WRL 2011 SEC
 
G-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:

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.

 
WRL 2011 SEC
 
G-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.



 
WRL 2011 SEC
 
G-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:


The maturity dates of the reinvested securities lending collateral are as follows:

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.



 
WRL 2011 SEC
 
G-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


 
WRL 2011 SEC
 
G-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


 
WRL 2011 SEC
 
G-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.

 
WRL 2011 SEC
 
G-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.




 
WRL 2011 SEC
 
G-69
 











Statutory-Basis Financial
Statement Schedules























 
WRL 2011 SEC
 
G-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

 (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.

 
WRL 2011 SEC
 
G-71
 

Western Reserve Life Assurance Co. of Ohio

Supplementary Insurance Information
(Dollars in Thousands)

Schedule III

 
*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.

 
WRL 2011 SEC
 
G-72
 

 Western Reserve Life Assurance Co. of Ohio

Reinsurance
(Dollars in Thousands)

Schedule IV



 
WRL 2011 SEC
 
G-73
 
PART C - OTHER INFORMATION
Item 26.                    Exhibits

(a)
  
Resolution of the Board of Directors of Western Reserve establishing the separate account (1)
(b)
  
Not Applicable
(c)
  
Distribution of Policies
 
(i)
Master Service and Distribution Compliance Agreement (2)
 
(ii)
Amendment to Master Service and Distribution Compliance Agreement (3)
 
(iii)
Form of Broker/Dealer Supervisory and Service Agreement (3)
 
(iv)
Principal Underwriting Agreement (3)
 
(v)
First Amendment to Principal Underwriting Agreement (3)
 
(vi)
Second Amendment to Principal Underwriting Agreement (10)
 
(vii)
Third Amendment to Principal Underwriting Agreement (13)
 
(viii)
Form of Amendment No. 2 And Novation To The Amended And Restated Principal Underwriting Agreement between Transamerica Capital Inc. and Western Reserve (17)
 
(vix)
Amended and Restated Principal Underwriting Agreement between Transamerica Capital Inc. and Western Reserve. (25)
(d)
(i)
Specimen Flexible Premium Variable Life Insurance Policy (1)
 
(ii)
Endorsement (EL101) (3)
 
(iii)
Terminal Illness Accelerated Death Benefit Rider (1)
(e)
  
Application for Flexible Premium Variable Life Insurance Policy (9)
(f)
(i)
Second Amended Articles of Incorporation of Western Reserve (2)
 
(ii)
Certificate of First Amendment to the Second Amended Articles of Incorporation of Western Reserve (4)
 
(iii)
Amended Code of Regulations (By-Laws) of Western Reserve (2)
(g)
  
Reinsurance Contracts
 
(i)
Reinsurance Treaty dated September 30, 2000 and Amendments Thereto (8)
 
(ii)
Reinsurance Treaty dated July 1, 2002 and Amendments Thereto (8)
(h)
  
Participation Agreements
 
(i)
Participation Agreement Among Variable Insurance Products Fund, Fidelity Distributors Corporation and Western Reserve Life Assurance Co. of Ohio dated June 14, 1999 (5)
 
(ii)
Amendment No. 1 dated March 15, 2000 to Participation Agreement -Variable Insurance Products Fund (6)
 
(iii)
Second Amendment dated April 12, 2001 to Participation Agreement – Variable Insurance Products Fund (7)
 
(iv)
Participation Agreement Among Variable Insurance Products Fund II, Fidelity Distributors Corporation and Western Reserve Life Assurance Co. of Ohio dated June 14, 1999 (5)
 
(v)
Amendment No. 1 dated March 15, 2000 to Participation Agreement -Variable Insurance Products Fund II (6)
 
(vi)
Second Amendment dated April 12, 2001 to Participation Agreement – Variable Insurance Products Fund II (7)
 
(vii)
Participation Agreement Among Variable Insurance Products Fund III, Fidelity Distributors Corporation and Western Reserve Life Assurance Co. of Ohio dated June 14, 1999 (5)
 
(viii)
Amendment No. 1 dated March 15, 2000 to Participation Agreement – Variable Insurance Products Fund III (6)
 
(ix)
Second Amendment dated April 12, 2001 to Participation Agreement – Variable Insurance Products Fund III (7)
 
(x)
Third Amendment to Participation Agreement Among Variable Insurance Products Fund II, Fidelity distributors Corporation and Western Reserve dated September 1, 2003 (11)
 
(xi)
Fourth Amendment to Participation Agreement Among Variable Insurance products Fund II, Fidelity Distributors Corporation and Western Reserve dated December 1, 2003 (12)
 
(xii)
Participation Agreement between AEGON/Transamerica Series Fund, Inc. and Western Reserve dated February 21, 2001 and Amendments thereto (12)
 
(xiii)
Amendment No. 21 to Participation Agreement between AEGON/Transamerica Series Fund, Inc. and Western Reserve dated September 1, 2003 (11)
 
(xiv)
Amendment No. 22 to Participation Agreement between AEGON/Transamerica Series Fund, Inc. and Western Reserve dated December 1, 2003 (12)
 
(xv)
Amendment No. 23 to Participation Agreement between AEGON/Transamerica Series Fund, Inc. and Western Reserve dated May 1, 2004 (13)
 
(xvi)
Amended and Restated Fund Participation Agreement Between Access Variable Insurance Trust and Western Reserve dated May 1, 2004 (13)
 
(xvii)
Participation Agreement between AEGON/Transamerica Series Fund, Inc. and Western Reserve dated February 21, 2001 and Amendments thereto (12)


 
 
 


 
(xviii)
Amendment No. 25 to Participation Agreement between AEGON/Transamerica Series Trust and Western Reserve dated March 28, 2005 (16)
 
(xix)
Amendment No. 26 to Participation Agreement between AEGON/Transamerica Series Trust and Western Reserve dated September 1, 2005 (16)
 
(xx)
Amendment No. 1 to Participation Agreement among Western Reserve, ProFunds, Access One Trust and ProFunds Advisors LLC dated June 1, 2007 (21)
 
(xxi)
Amendment No. 2 to Participation Agreement among Western Reserve, ProFunds, Access One Trust and ProFunds Advisors LLC dated August 30, 2007 (21)
 
(xxii)
Participation Agreement Among Western Reserve, ProFunds, Access One Trust and ProFund Advisors LLC dated June 6, 2006 (17)
 
(xxiii)
Amendment No. 3 to Participation Agreement among Western Reserve, ProFunds, Access One Trust and ProFund Advisors LLC dated February 28, 2008. (22)
 
(xxiv)
Amendment No. 3 to Participation Agreement among Western Reserve, ProFunds, Access One Trust and ProFund Advisors LLC dated February 28, 2008. (22)
 
(xxv)
Amendment No. 27 to Participation Agreement between AEGON/Transamerica Series Trust and Western Reserve dated May 1, 2006 (21)
 
(xxvi)
Amendment No. 28 to Participation Agreement between AEGON/Transamerica Series Trust and Western Reserve dated May 1, 2007 (21)
 
(xxvii)
Amendment No. 29 to Participation Agreement between Transamerica Series Trust (formerly, AEGON/Transamerica Series Trust) dated May 1, 2008. (22)
 
(xxviii)
Participation Agreement Among AllianceBernstein Variable Products Series Fund, Inc. and Western Reserve dated November 1, 2009 (23)
 
(xxix)
Participation Agreement Among Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., Western Reserve Life Assurance Co. of Ohio and Transamerica Capital, Inc. dated November 10, 2008 (23)
 
(xxx)
Amendment No. 33 to Participation Agreement between Transamerica Series Trust and Western Reserve dated May 1, 2009 (23)
 
(xxxi)
Amendment to Participation Agreement Among AllianceBernstein Variable Products Series Fund, Inc. and Western Reserve dated May 1, 2009 (23)
 
(xxxii)
Amendment No. 1 to Participation Agreement Among Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., Western Reserve Life Assurance Co. of Ohio and Transamerica Capital, Inc. dated May 1, 2009 (23)
 
 
(xxxiii)
Amendment to Participation Agreement Among Western Reserve Life Assurance Co. of Ohio, Variable Insurance Products Fund II, Variable Insurance Products Fund V, and Fidelity Distributors Corporation dated August 30, 2007(24)
 
(xxxiv)
Amendment No. 34 to Participation Agreement Between Transamerica Series Trust and Western Reserve Life Assurance Co. of Ohio dated November 1, 2009(24)
 
(xxxv)
Amendment No. 35 to Participation Agreement Between Transamerica Series Trust and Western Reserve Life Assurance Co. of Ohio dated November 1, 2009(24)
 
(xxxvi)
Amendment No. 36 to Participation Agreement between Transamerica Series Trust and Western Reserve Life Assurance Co. of Ohio dated May 1, 2011 (25)
 
(xxxvii)
Amendment No. 2 to Participation Agreement between AllianceBernstein Variable Products Series Fund, Inc. and Western Reserve dated May 1, 2011(25)
  
 
(xxxviii)
Amendment No. 5 among Fidelity Variable Insurance Products Funds II, Fidelity Distributors Corporation and Western Reserve dated May 1, 2004(25)
 
(xxxvix)
Amendment No. 6 among Fidelity Variable Insurance Products Funds II, Fidelity Distributors Corporation and Western Reserve dated June 27, 2007(25)
 
(xl)
Amendment No. 7 among Fidelity Variable Insurance Products Funds II, Fidelity Distributors Corporation and Western Reserve dated August 30, 2007(24)
 
(xli)
Amendment No. 8 among Fidelity Variable Insurance Products Funds II, Fidelity Distributors Corporation and Western Reserve dated May 1, 2011(25)
 
(xlii)
Amendment No.5 among Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., Western Reserve Life Assurance Co. of Ohio and Transamerica Capital, Inc. dated May 1, 2011(25)



 
 
 



 
(xliii)
Amendment No. 3 Participation Agreement Among Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., Western Reserve Life Assurance Co. of Ohio and Transamerica Capital, Inc. dated October 31, 2011 (26)
 
(xliv)
Summary Prospectus Agreement between WRL and Fidelity Distributors Corporation dated May 1, 2011(26)
 
(xlv)
Confidentiality Amendment to ProFunds Participation Agreement among Western Reserve, ProFunds, Access One Trust and ProFunds Advisors LLC dated February 22, 2012 (26)
 
(xlvi)
Amendment No. 5 to ProFunds Participation Agreement among Western Reserve, ProFunds, Access One Trust and ProFunds Advisors LLC dated May 1, 2012 (26)
(i)
  
Not Applicable
(j)
  
Not Applicable
(k)
  
Legal Opinion and Consent of Arthur D. Woods, Esq. as to the Legality of the Securities being Registered
(l)
  
Actuarial Opinion and Consent of Lorne Schinbein as to Actuarial Matters Pertaining to the Securities Being Registered
(m)
  
Sample Hypothetical Illustration (14)
(n)
  
Other Opinions:
 
(i)
Written Consent of Ernst & Young LLP
(o)
  
Not Applicable
(p)
  
Not Applicable
(q)
(i)
Memorandum describing issuance, transfer and redemption procedures (1)
(r)
  
Powers of Attorney (23)
   
Eric J. Martin
   
Brenda K. Clancy
   
Arthur C. Schneider
   
Charles T. Boswell
   
John R. Hunter
   
Darryl D. Button (24)
 
 
(1)
This exhibit was previously filed on Post-Effective Amendment No. 16 to Form S-6 Registration Statement dated April 21, 1998 (File No. 33-31140) and is incorporated herein by reference.
(2)
This exhibit was previously filed on Post-Effective Amendment No. 11 to Form N-4 Registration Statement dated April 20, 1998 (File No. 33-49556) and is incorporated herein by reference.
(3)
This exhibit was previously filed on Post-Effective Amendment No. 4 to Form S-6 Registration Statement dated April 21, 1999 (File No. 333-23359) and is incorporated herein by reference.
(4)
This exhibit was previously filed on Post-Effective Amendment No. 5 to Form S-6 Registration Statement dated April 19, 2000 (File No. 333-23359) and is incorporated herein by reference.
(5)
This exhibit was previously filed on the Initial Registration Statement to Form S-6 Registration Statement dated September 23, 1999 (File No. 333-57681) and is incorporated herein by reference.
(6)
This exhibit was previously filed on Pre-Effective Amendment No. 1 to Form N-4 Registration Statement dated April 10, 2000 (File No. 333-93169) and is incorporated herein by reference.
(7)
This exhibit was previously filed on Post-Effective Amendment No. 16 to Form S-6 Registration Statement dated April 16, 2001 (File No. 33-69138) and is incorporated herein by reference.
(8)
This exhibit was previously filed on Pre-Effective Amendment No. 1 to Form N-6 Registration Statement dated January 31, 2003 (File No. 333-100993) and is incorporated herein by reference.
(9)
This exhibit was previously filed on Post-Effective Amendment No. 1 to Form N-6 Registration Statement dated April 22, 2003 (File No. 333-100993) and is incorporated herein by reference.
(10)
This exhibit was previously filed on the Initial Registration Statement to Form N-4 Registration Statement dated September 5, 2003 (File No. 333-108525) and is incorporated herein by reference.
(11)
This exhibit was previously filed on Pre-Effective Amendment No. 1 to Form N-6 Registration Statement dated October 9, 2003 (File No. 333-107705) and is incorporated herein by reference.
(12)
This exhibit was previously filed on the Initial Registration Statement to Form N-6 Registration Statement dated November 7, 2003 (File No. 333-110315) and is incorporated herein by reference.
(13)
This exhibit was previously filed on Post-Effective Amendment No. 1 to Form N-6 Registration Statement dated February 26, 2004 (File No. 333-107705) and is incorporated herein by reference.
(14)
This exhibit was previously filed on Post-Effective Amendment No. 23 to Form N-6 Registration Statement dated April 28, 2004 (File No. 33-31140) and is incorporated herein by reference.
(15)
This exhibit was previously filed on Post-Effective Amendment No. 3 to Form N-6 Registration Statement dated February 28, 2005 (File No. 333-107705) and is incorporated herein by reference.
(16)
This exhibit was previously filed on the Initial Registration Statement to Form N-6 Registration Statement dated September 28, 2005 (File No. 33-128650) and is incorporated herein by reference.
(17)
This exhibit was previously filed on the Initial Registrations Statement to Form N-6 Registration Statement dated June 14, 2006 (File No. 333-135005) and is incorporated herein by reference.
(18)
This exhibit was previously filed on Post-Effective Amendment No. 1 to Form N-6 Registration Statement
dated April 12, 2007 (File No. 333- 135005) and is incorporated herein by reference.
(19)
This exhibit was previously filed on Pre-Effective Amendment No. 2 to Form N-6 Registration Statement dated October 16, 2006 (File No. 333-135005) and is incorporated herein by reference.
(20)
This exhibit was previously filed on the Initial Registration Statement to Form N-6 Registration System dated June 28, 2007 and is incorporated herein by reference.
(21)
This exhibit was previously filed on Pre-Effective Amendment No. 1 to Form N-6 Registration Statement dated October 16, 2007 (File No. 333-144117) and is incorporated herein by reference.
(22)
This exhibit was previously filed on Post-Effective Amendment No. 6 to Form N-6 Registration Statement dated April 11, 2008 (File No. 333-110315) and is incorporated herein by reference.
(23)
This exhibit was previously filed on Post-Effective Amendment No. 6 to Form N-6 Registration Statement dated April 27, 2009 (File No. 333-135005) and is incorporated herein by reference.
(24)
This exhibit was previously filed on Post-Effective Amendment No. 7 to Form N-6 Registration Statement dated (April 14, 2010) (File No. 333-135005) and is incorporated herein by reference.
(25)
This exhibit was previously filed on Post-Effective Amendment No.13 to Form N-6 Registration Statement dated April 18, 2011 (File No. 333-110315) and is incorporated herein by reference.
(26)
(1)   This exhibit previously filed on Post-Effective amendment No. 16 to Form N-6 Registration Statement dated April 18, 2012 (File No. 333-107705) and is incorporated herein by reference.

Item 27.                    Directors and Officers of the Depositor

Name
Principal Business Address
Position and Offices with Depositor
 
Darryl D. Button
(1)
Director and Executive Vice President
Charles T. Boswell
(2)
Director and Chief Executive Officer
Brenda K. Clancy
(1)
Chairman of the Board  and President
Arthur C. Schneider
(1)
Director, Senior Vice President and Chief Tax Officer
Eric J. Martin
(1)
Senior Vice President and Corporate Controller
John R. Hunter
(1)
Director and Division Chief Operating Officer - Life & Protection
 
(1)  
4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499-0001
(2)  
570 Carillon Parkway, St. Petersburg, Florida 33716


 
 
 


Item 28.   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.

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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.
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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%); I NG 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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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 adviser
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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
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

 
 
 


Name
Jurisdiction of Incorporation
Percent of Voting
Securities Owned
Business
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 29.                 Indemnification

Provisions exist under the Ohio General Corporation Law, 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.  The following excerpts contain the substance of these provisions.

Ohio General Corporation Law

Section 1701.13  Authority of corporation.

(E)(1)                  A corporation may indemnify or agree to indemnify any person who was or is a party or is threatened to be made a party, to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys' fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit, or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.  The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendre or its equivalent, shall not, of itself create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, he had reasonable cause to believe that his conduct was unlawful.

(2)          A corporation may indemnify or agree to indemnify any person who was or is a party, or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation, domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any of the following:

 
 
 



(a)          Any claim, issue, or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his duty to the corporation unless, and only to the extent that the court of common pleas, or the court in which such action or suit was brought determines upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court of common pleas or such other court shall deem proper;

(b)          Any action or suit in which the only liability asserted against a director is pursuant to section 1701.95 of the Revised Code.

(3)          To the extent that a director, trustee, officer, employee, or agent has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in divisions (E)(1) and (2) of this section, or in defense of any claim, issue, or matter therein, he shall be indemnified against expenses, including attorneys' fees, actually and reasonably incurred by him in connection therewith.

(4)          Any indemnification under divisions (E)(1) and (2) of this section, unless ordered by a court, shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, trustee, officer, employee, or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in divisions (E)(1) and (2) of this section. Such determination shall be made as follows:

(a)          By a majority vote of a quorum consisting of directors of the indemnifying corporation who were not and are not parties to or threatened with any such action, suit, or proceeding;

(b)          If the quorum described in division (E)(4)(a) of this section is not obtainable or if a majority vote of a quorum of disinterested directors so directs, in a written opinion by independent legal counsel other than an attorney, or a firm having associated with it an attorney, who has been retained by or who has performed services for the corporation, or any person to be indemnified within the past five years;

(c)          By the shareholders;

(d)          By the court of common pleas or the court in which such action, suit, or proceeding was brought.

Any determination made by the disinterested directors under division (E)(4)(a) or by independent legal counsel under division (E)(4)(b) of this section shall be promptly communicated to the person who threatened or brought the action or suit by or in the right of the corporation under division (E)(2) of this section, and within ten days after receipt of such notification, such person shall have the right to petition the court of common pleas or the court in which such action or suit was brought to review the reasonableness of such determination.

(5)(a)  Unless at the time of a director's act or omission that is the subject of an action, suit or proceeding referred to in divisions (E)(1) and (2) of this section, the articles or the regulations of a corporation state by specific reference to this division that the provisions of this division do not apply to the corporation and unless the only liability asserted against a director in an action, suit, or proceeding referred to in divisions (E)(1) and (2) of this section is pursuant to section 1701.95 of the Revised Code, expenses, including attorney's fees, incurred by a director in defending the action, suit, or proceeding shall be paid by the corporation as they are incurred, in advance of the final disposition of the action, suit, or proceeding upon receipt of an undertaking by or on behalf of the director in which he agrees to do both of the following:

(i)  Repay such amount if it is proved by clear and convincing evidence in a court of competent jurisdiction that his action or failure to act involved an act or omission undertaken with deliberate intent to cause injury to the corporation or undertaken with reckless disregard for the best interests of the corporation;

(ii)  Reasonably cooperate with the corporation concerning the action, suit, or proceeding.

(b)          Expenses, including attorneys' fees incurred by a director, trustee, officer, employee, or agent in defending any action, suit, or proceeding referred to in divisions (E)(1) and (2) of this section, may be paid by the corporation as they are incurred, in advance of the final disposition of the action, suit, or proceeding as authorized by the directors in the specific case upon receipt of an undertaking by or on behalf of the director, trustee, officer, employee, or agent to repay such amount, if it ultimately is determined that he is entitled to be indemnified by the corporation.

 
 
 



(6)          The indemnification authorized by this section shall not be exclusive of, and shall be in addition to,  any other rights granted to those seeking indemnification under the articles or the regulations or any agreement, vote of shareholders or disinterested directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, trustee, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of such a person.

(7)          A corporation may purchase and maintain insurance or furnish similar protection, including but not limited to trust funds, letters of credit, or self-insurance on behalf of or for any person who is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation,  domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under this section.  Insurance may be purchased from or maintained with a person in which the corporation has a financial interest.

(8)          The authority of a corporation to indemnify persons pursuant to divisions (E)(1) and (2) of this section does not limit the payment of expenses as they are incurred, indemnification, insurance, or other protection that may be provided pursuant to divisions (E)(5), (6), and (7) of this section.  Divisions (E)(1) and (2) of this section do not create any obligation to repay or return payments made by the corporation pursuant to divisions (E)(5), (6), or (7).

(9)          As used in this division, references to "corporation" include all constituent corporations in a consolidation or merger and the new or surviving corporation, so that any person who is or was a director, officer, employee, or agent of such a constituent corporation, or is or was serving at the request of such constituent corporation as a director, trustee, officer, employee or agent of another corporation,  domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise, shall stand in the same position under this section with respect to the new or surviving corporation as he would if he had served the new or surviving corporation in the same capacity.

Second Amended Articles of Incorporation of Western Reserve

ARTICLE EIGHTH

EIGHTH:  (1)  The corporation may indemnify or agree to indemnify any person who was or is a party or is threatened to be made a party, to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys' fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit, or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.  The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendre or its equivalent, shall not, of itself create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, he had reasonable cause to believe that his conduct was unlawful.

(2)           The corporation may indemnify or agree to indemnify any person who was or is a party, or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his duty to the corporation unless, and only to the extent that the court of common pleas, or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses as the court of common pleas or such other court shall deem proper.

 
 
 


(3)           To the extent that a director, trustee, officer, employee, or agent has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in sections (1) and (2) of this article, or in defense of any claim, issue, or matter therein, he shall be indemnified against expenses, including attorneys' fees, actually and reasonably incurred by him in connection therewith.

(4)          Any indemnification under sections (1) and (2) of this article, unless ordered by a court, shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, trustee, officer, employee, or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in sections (1) and (2) of this article.  Such determination shall be made (a) by a majority vote of a quorum consisting of directors of the indemnifying corporation who were not and are not parties to or threatened with any such action, suit, or proceeding, or (b) if such a quorum is not obtainable or if a majority vote of a quorum of disinterested directors so directs, in a written opinion by independent legal counsel other than an attorney, or a firm having associated with it an attorney, who has been retained by or who has performed services for the corporation, or any person to be indemnified within the past five years, or (c) by the shareholders, or (d) by the court of common pleas or the court in which such action, suit, or proceeding was brought.  Any determination made by the disinterested directors under section (4)(a) or by independent legal counsel under section (4)(b) of this article shall be promptly communicated to the person who threatened or brought the action or suit by or in the right of the corporation under section (2) of this article, and within ten days after receipt of such notification, such person shall have the right to petition the court of common pleas or the court in which such action or suit was brought to review the reasonableness of such determination.

(5)        Expenses, including attorneys' fees incurred in defending any action, suit, or proceeding referred to in sections (1) and (2) of this article, may be paid by the corporation in advance of the final disposition of such action, suit, or proceeding as authorized by the directors in the specific case upon receipt of a written undertaking by or on behalf of the director, trustee, officer, employee, or agent to repay such amount, unless it shall ultimately be determined that he is entitled to be indemnified by the corporation as authorized in this article.  If a majority vote of a quorum of disinterested directors so directs by resolution, said written undertaking need not be submitted to the corporation.  Such a determination that a written undertaking need not be submitted to the corporation shall in no way affect the entitlement of indemnification as authorized by this article.
 
(6)     The indemnification provided by this article shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under the articles or the regulations or any agreement, vote of shareholders or disinterested directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, trustee, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of such a person.

(7)   The Corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, trustee, officer, employee, or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise against any liability asserted against him and incurred by him in any such capacity or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under this section.

(8)      As used in this section, references to "the corporation" include all constituent corporations in a consolidation or merger and the new or surviving corporation, so that any person who is or was a director, officer, employee, or agent of such a constituent corporation, or is or was serving at the request of such constituent corporation as a director, trustee, officer, employee or agent of another corporation (including a subsidiary of this corporation), domestic or foreign, nonprofit or for profit, partnership, joint venture, trust, or other enterprise shall stand in the same position under this article with respect to the new or surviving corporation as he would if he had served the new or surviving corporation in the same capacity.

(9)          The foregoing provisions of this article do not apply to any proceeding against any trustee, investment manager or other fiduciary of an employee benefit plan in such person's capacity as such, even though such person may also be an agent of this corporation.  The corporation may indemnify such named fiduciaries of its employee benefit plans against all costs and expenses, judgments, fines, settlements or other amounts actually and reasonably incurred by or imposed upon said named fiduciary in connection with or arising out of any claim, demand, action, suit or proceeding in which the named fiduciary may be made a party by reason of being or having been a named fiduciary, to the same extent it indemnifies an agent of the corporation.  To the extent that the corporation does not have the direct legal power to indemnify, the corporation may contract with the named fiduciaries of its employee benefit plans to indemnify them to the same extent as noted above.  The corporation may purchase and maintain insurance on behalf of such named fiduciary covering any liability to the same extent that it contracts to indemnify.

 
 
 




Amended Code of Regulations of Western Reserve

ARTICLE V

Indemnification of Directors and Officers

Each Director, officer and member of a committee of this Corporation, and any person who may have served at the request of this Corporation as a Director, officer or member of a committee of any other corporation in which this Corporation owns shares of capital stock or of which this Corporation is a creditor (and his heirs, executors and administrators) shall be indemnified by the Corporation against all expenses, costs, judgments, decrees, fines or penalties as provided by, and to the extent allowed by, Article Eighth of the Corporation's Articles of Incorporation, as amended.

Rule 484 Undertaking

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers, and controlling persons of Western Reserve pursuant to the foregoing provisions or otherwise, Western Reserve 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 Western Reserve of expenses incurred or paid by a director, officer or controlling person of Western Reserve in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, Western Reserve will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Item 30.                                  Principle Underwriter

(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 (1)
 
 
Compensation
Transamerica Capital, Inc.
 
0
$ 17,156,676.15 0
0

(1)
Fiscal Year 2011


* TCI passes through any commissions paid to it to the selling firms and does not retain any portion of such payments.

 
 
 




Item 31.                  Location of Accounts and Records

All accounts, books, or other documents required to be maintained by Section 31(a) of the 1940 Act and the rules promulgated thereunder are maintained by the Registrant through Western Reserve at
570 Carillon Parkway, St. Petersburg, Florida 33716, 4800 140th Avenue North, Clearwater, Florida 33762 or 12855 Starkey Road, Largo, Florida 33773.
 
 
Item 32.                  Management Services

Not Applicable

Item 33.                  Fee Representation

Western Reserve hereby represents that the fees and charges deducted under the WRL Freedom Equity Protector Policies, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Western Reserve.



 
 
 


SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all the requirements for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No.32 to the Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of St. Petersburg, State of Florida, on this 23rd day of April 2012.

WRL SERIES LIFE ACCOUNT
(Registrant)
 
By: /s/ Brenda K. Clancy
Brenda K. Clancy*/, Chairman of the Board and President of Western Reserve Life Assurance Co. of Ohio
 
WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO
(Depositor)
 
By:/s/ Brenda K. Clancy
Brenda K. Clancy */, Chairman of the Board and President

Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 33 to the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated:
Signature
Title
Date
     
/s/ Darryl D. Button
Director and Executive Vice President
April 23, 2012
Darryl D. Button*/
    
     
/s/ Charles T. Boswell
Director and Chief Executive Officer
 April 23, 2012
Charles T. Boswell */
    
     
/s/ Brenda K. Clancy
Chairman of the Board and President
 April 23, 2012
Brenda K. Clancy */
    
     
/s/ Eric J. Martin
Senior Vice President and Corporate Controller
April 23, 2012
Eric J. Martin */
    
     
/s/ John R. Hunter
Director and Division Chief Operating Officer - Life & Protection
 April 23, 2012
John R. Hunter */
    
     
/s/ Arthur C. Schneider
Director, Senior Vice President and
April 23, 2013
Arthur C. Schneider */
Chief Tax Officer
  
     
/s/ Arthur D.Woods
    
*/ Signed by Arthur D. Woods, Esq.
    
  As Attorney in Fact pursuant to the Powers of Attorney




 
 
 



Exhibit Index

Exhibit
No.
Description
of Exhibit
   
26(k)
Opinion and Consent of Arthur D. Woods, Esq. as to the Legality of the Securities being Registered
   
26(l)
Opinion and Consent of Lorne Schinbein as to Actuarial Matters Pertaining to the Securities Being Registered
   
26(n)(i)
Written Consent of Ernst & Young LLP
   
   



 
 
 


 


Exhibit 26(k)

Opinion and Consent of Arthur D. Woods., Esq. as to the Legality of the Securities being Registered


 
 
 
 
INSERT OPINION

 
 
 



 
Exhibit 26(l)

Opinion and Consent of Lorne Schinbein
as to Actuarial Matters Pertaining to the Securities Being Registered

 
 
 


INSERT OPINION


 
 
 





 


Exhibit 26(n)(i)

Consent of Ernst & Young LLP

 
 
 

INSERT CONSENT