N-6

As filed with the Securities and Exchange Commission on October 1, 2014

Registration Nos. 333-            /811-4420

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-6

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 {X}

PRE-EFFECTIVE AMENDMENT NO.             (  )

POST-EFFECTIVE AMENDMENT NO.          (  )

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT

COMPANY ACT OF 1940

Amendment No.  137     {X}

(Check appropriate box or boxes)

WRL SERIES LIFE ACCOUNT

(Exact Name of Registrant)

TRANSAMERICA PREMIER LIFE INSURANCE COMPANY

(Depositor)

(Former Depositor, Western Reserve Life Assurance Co. of Ohio)

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

Transamerica Premier Life Insurance Company

570 Carillon Parkway

St. Petersburg, FL 33716

(Name and Address of Agent for Service)

Approximate Date of Proposed Public Offering:

As soon as practicable after effectiveness of this registration statement.

The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

Title of securities being registered:

Units of interest in a separate account under individual flexible premium variable life policies.

Explanatory Note

Registrant is filing this Registration Statement for the purpose of registering interests under WRL Freedom Elite Advisor universal life insurance policies (“Policies”) on a new Form N-6. Interests under the Policies were previously registered on Form N-6 (File No. 333-100993) and funded by WRL Series Life Account (File No. 811-4420). Upon effectiveness of the merger between Western Reserve Life Assurance Co. of Ohio (“WRL”) with and into Transamerica Premier Life Insurance Company (“TPLIC”); formerly, Monumental Life Insurance Company{“Monumental”}) TPLIC became the obligor of the Policies and WRL Series Life Account was transferred intact to TPLIC.

PART A

INFORMATION REQUIRED IN A PROSPECTUS

WRL FREEDOM ELITE ADVISOR

Flexible Premium Variable Life Insurance Policy

Issued by

TRANSAMERICA PREMIER LIFE INSURANCE COMPANY

(WRL Series Life Account)

Supplement Dated October 1, 2014

to the

Prospectuses dated May 1, 2004

Administrative Office: 570 Carillon Parkway, St. Petersburg, Florida 33716

Mailing Address: 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499

Transamerica Premier Life Insurance Company (“TPLIC,” “Transamerica Premier,” or the “Company”) is amending the prospectus listed above for certain flexible premium variable life insurance policies (each a “Policy”; together the “Policies”) for the purpose of providing information regarding the merger (the “Merger”) of the issuer of your Policy, Western Reserve Life Assurance Co. of Ohio (“WRL” or “Western Reserve”), with and into TPLIC. This supplement should be read and maintained with the prospectus for your Policy.

Currently, WRL Freedom Elite Advisor is not available for new sales.

The Merger. Effective on or about October 1, 2014, WRL merged with and into its affiliate, TPLIC (prior to July 31, 2014, known as Monumental Life Insurance Company). Before the Merger, the Policies were issued by WRL. Upon consummation of the Merger, WRL’s corporate existence ceased by operation of law, and TPLIC assumed legal ownership of all of the assets of WRL, including the separate account funding the Policies, and the assets of the separate account. As a result of the Merger, TPLIC became responsible for all liabilities and obligations of WRL, including those created under the Policies. The Policies have thereby become flexible premium variable life insurance policies funded by a separate account of TPLIC. Accordingly, all references in the prospectus to Western Reserve Life Assurance Co. of Ohio are amended to refer to Transamerica Premier Life Insurance Company.

The Merger did not affect the terms of, or the rights and obligations under your Policy, other than to change the company that provides your Policy benefits from WRL to TPLIC. The Merger also did not result in any adverse tax consequences for any Policy owners, and Policy owners will not be charged additional fees or expenses as a result of the Merger. You will receive a Policy endorsement from TPLIC that reflects the change from WRL to TPLIC.

Please note: Upon receipt of all regulatory approvals, anticipated to be by year-end, the link for all electronic transactions will change from www.westernreserve.com to www.premier.transamerica.com.

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The following investment options are available under the Policies:

TRANSAMERICA SERIES TRUST

TRANSAMERICA AEGON HIGH YIELD BOND VP

TRANSAMERICA AEGON MONEY MARKET VP

TRANSAMERICA AEGON U.S. GOVERNMENT SECURITIES VP

TRANSAMERICA ALLIANCEBERNSTEIN DYNAMIC ALLOCATION VP

TRANSAMERICA ASSET ALLOCATION – CONSERVATIVE VP

TRANSAMERICA ASSET ALLOCATION – GROWTH VP

TRANSAMERICA ASSET ALLOCATION – MODERATE GROWTH VP

TRANSAMERICA ASSET ALLOCATION – MODERATE VP

TRANSAMERICA BARROW HANLEY DIVIDEND FOCUSED VP

TRANSAMERICA CLARION GLOBAL REAL ESTATE SECURITIES VP

TRANSAMERICA INTERNATIONAL MODERATE GROWTH VP

TRANSAMERICA JPMORGAN CORE BOND VP

TRANSAMERICA JPMORGAN ENHANCED INDEX VP

TRANSAMERICA JPMORGAN TACTICAL ALLOCATION VP

TRANSAMERICA JENNISON GROWTH VP

TRANSAMERICA MFS INTERNATIONAL EQUITY VP

TRANSAMERICA MULTI-MANAGED BALANCED VP

TRANSAMERICA MORGAN STANLEY CAPITAL GROWTH VP

TRANSAMERICA MORGAN STANLEY MID-CAP GROWTH VP

TRANSAMERICA WMC DIVERSIFIED GROWTH VP

TRANSAMERICA PIMCO TOTAL RETURN VP

TRANSAMERICA SYSTEMATIC SMALL/MID CAP VALUE VP

TRANSAMERICA T. ROWE PRICE SMALL CAP VP

TRANSAMERICA TORRAY CONCENTRATED GROWTH VP

TRANSAMERICA WMC DIVERSIFIED GROWTH VP

FIDELITY FUNDS

FIDELITY INDEX 500 PORTFOLIO

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The following replaces the heading “Western Reserve, The Separate Account, The Fixed Account and the Portfolios’, and the description of the insurance company depositor of the separate account that funds your Policy, and updates the description of the Separate Account:

TRANSAMERICA PREMIER, THE SEPARATE ACCOUNT, THE FIXED ACCOUNT AND THE PORTFOLIOS

TRANSAMERICA PREMIER LIFE INSURANCE COMPANY

Transamerica Premier Life Insurance Company (formerly, Monumental Life Insurance Company) was incorporated under the laws of the State of Maryland on March 5, 1858. It was re-domesticated to the State of Iowa on April 1, 2007. It is engaged in the sale of life and health insurance and annuity

policies. The Company is a wholly-owned indirect subsidiary of Transamerica Corporation which conducts most of its operations through subsidiary companies engaged in the insurance business or in providing non-insurance financial services. All of the stock of Transamerica Corporation is indirectly owned by Aegon N.V. of The Netherlands, the securities of which are publicly traded. Aegon N.V., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business. The Company is licensed in the District of Columbia, Guam, Puerto Rico and all states except New York.

On July 31, 2014, Monumental Life Insurance Company changed its name to Transamerica Premier Life Insurance Company (“TPLIC”).

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

THE SEPARATE ACCOUNT

WRL Series Life Account was a separate account of Western Reserve, established under Ohio law. Effective on October 1, 2014, WRL Series Life Account was re-domesticated under the laws of the State of Iowa and reestablished under TPLIC. The separate account receives and invests the premium payments that are allocated to it for investment in shares of the underlying fund portfolios. The separate account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 (the “1940 Act”). However, the SEC does not supervise the management, the investment practices, or the policies of the separate account or the Company. Income, gains and losses (whether or not realized), from assets allocated to the separate account are, in accordance with the policies, credited to or charged against the separate account without regard to the Company’s other income gains or losses.

The 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.

The assets of the separate account are held in the Company’s name on behalf of the separate account and belong to the Company. However, the portion of the assets of the separate account equal to the reserves and other policy liabilities with respect to the separate account are not chargeable with liabilities arising out of any other business the Company may conduct. The separate account may include other subaccounts that are not available under these policies.

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The following replaces the second paragraph under the heading “Additional Information—Legal Proceedings” in your prospectus:

We are currently being audited on behalf of multiple states’ treasury and controllers’ offices for compliance with laws and regulations concerning the identification, reporting and escheatment of unclaimed benefits or abandoned funds. The audits focus on insurance company processes and procedures for identifying unreported death claims, and their use of the Social Security Master Death File to identify deceased policy and contract holders. In addition, we are the subject of multiple state Insurance Department inquiries and market conduct examinations with a similar focus on the handling of unreported claims and abandoned property. The audits and related examination activity have resulted in or may result in additional payments to beneficiaries, escheatment of funds deemed abandoned, administrative penalties and changes in our procedures for the identification of unreported claims and handling of escheatable property. We do not believe that any regulatory actions or agreements that have resulted from or will result from these examinations has had or will have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the policy. Although it is possible that the outcome of any such examination could have a material adverse impact on results of Transamerica Premier’s operations in any particular reporting period as the proceedings are resolved, TPLIC believes that it has adequately reserved for the unclaimed matters described here.

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The following herby replaces the first paragraph under the heading “Additional Information-Financial Statements”:

The statutory basis financial statements of Transamerica Premier Life Insurance Company (formerly, Monumental Life Insurance Company) and Western Reserve Life Assurance Co. of Ohio, and the audited financial statements (U.S. GAAP basis) of the WRL Series Life Account are included in the SAI. Unaudited pro forma combined financial statements showing the effects of the merger of Western Reserve Life Assurance Co. of Ohio with and into Transamerica Premier Life Insurance Company as of December 31, 2013, are also included.

SUPPLEMENT DATED MAY 1, 2014

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following information hereby supplements or amends, and to the extent is inconsistent replaces, certain information contained in your prospectus:

Range of Expenses for the Portfolios^{1, 2}

The table below shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2013. 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%	1.83%
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%	1.71%

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, 2013. Current or future expenses may be greater or less than those shown.

² The 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 Founding Funds Allocation VIP 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 those funds on the combined actual expenses for each “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 Founding Funds Allocation VIP Fund. See the prospectuses for the Transamerica Series Trust and the Franklin Founding Funds Allocation VIP Fund for a presentation of all applicable Acquired Fund fees and expenses.

³ The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements for 7 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2015.

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INVESTMENT OPTIONS:

Please note the following changes to your Transamerica Series Trust investment options:

Effective May 1, 2014:

Transamerica BlackRock Global Allocation VP was restructured from a feeder fund to a stand-alone fund. Please see the portfolio’s prospectus for a description of the investment strategies and the risks of investing in the portfolio.

Transamerica Hanlon Income VP merged into Transamerica BlackRock Tactical Allocation VP. Please see the portfolio’s prospectus for a description of the investment strategies and risks of investing in the portfolio.

Transamerica BNP Paribas Large Cap Growth VP was renamed Transamerica Torray Concentrated Growth VP and Torray LLC replaced BNP Paribas Asset Management, Inc. as sub-adviser to the portfolio.

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The following is added to the section of your prospectus replaces the information under the section entitled “When Insurance Coverage Takes Effect”:

For 1035 Exchanges:

Coverage may begin earlier in Section 1035 exchange situations as provided in the “Absolute Assignment to Effect Internal Revenue Code Section 1035 Exchange and Rollover” form. As provided in that form, the insurance coverage shall take effect as of the date the replaced policy is surrendered, and before delivery of the Policy, if the following conditions have been met:

The Policy has been approved for issue – even if approved other than as applied for - and accepted in writing by the proposed owner and either:

1. The replaced policy has been surrendered and the surrender proceeds thereafter received by the Company are themselves sufficient to place the Policy in force; or

2. If, in addition to the surrender of the replaced policy from the existing issuer, premium is paid during the proposed insured’s lifetime (either with the application for the Policy or thereafter if permitted by the Company in writing) and if such premium together with any surrender proceeds thereafter received, are sufficient to place the Policy in force.

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The following replaces the third sentence under “Assignment of the Policy”:

Unless otherwise specified by you, the assignment will then take effect on the date the assignment form is received in good order by the Company and accepted in our administrative office, unless the Policy states otherwise.

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The following replaces the section entitled “Market Timing and Disruptive Trading”:

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 to facilitate frequent or large trading through transfers among the subaccounts or between the subaccounts and the fixed account by market timers or frequent or disruptive traders. (Both frequent and large transfers may be considered disruptive.)

Market timing and disruptive trading can adversely affect you, other policyowners, beneficiaries and underlying fund portfolios. The adverse effects include: (1) dilution of the interests of long-term investors in a subaccount if purchases or transfers into or out of an underlying fund portfolio are made at prices that do not reflect an accurate value for the underlying fund portfolio’s investments (some market timers attempt to do this through methods known as “time-zone arbitrage” and “liquidity arbitrage”); (2) an adverse effect on portfolio management, such as (a) impeding a portfolio manager’s ability to sustain an investment objective; (b) causing the underlying fund portfolio to maintain a higher level of cash than would otherwise be the case; or (c) causing an underlying fund portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the underlying fund portfolio; and (3) increased brokerage and administrative expenses. These costs are borne by all 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 potentially disruptive trading. As discussed herein, we cannot detect or deter all market timing or potentially disruptive trading. Do not invest with us if you intend to conduct market timing or potentially disruptive trading or have concerns about our inability to detect or prevent any such 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 harm from market timing and disruptive trading among subaccounts of variable products issued by these other insurance companies or retirement plans.

Deterrence. If we determine that you or anyone acting on your behalf is 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 others having an interest in the variable insurance products). As described below, restrictions may take various forms, but under our current policies and procedures will include loss of expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be “expedited” transfers. This means that we would accept only written transfer requests with an original signature sent to us only by U.S. mail. We may also restrict the transfer privileges of others acting on your behalf, including your registered representative or an asset allocation or investment advisory service.

We reserve the right to reject any premium payment or transfer request from any person without prior notice, if, in our judgment, (1) the premium payment or transfer, or series of premium payments or 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 policyowner 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 trades or variable insurance products that we believe are connected by policyowners or persons engaged in trading on behalf of policyowners.

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; we may change the maximum dollar amount of permitted transfers quickly and without notice.

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

In addition to our internal policies and procedures, we will administer your variable life policy 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; or

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

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

Redemption fees, transfer limits, and other procedures or restrictions imposed by the underlying funds or our competitors 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.

We do not impose any prophylactic transfer restrictions. In the absence of any such restrictions (e.g., expressly limiting the number of trades within a given period or limiting trades by their size), it is possible that some level of market timing and disruptive trading will occur before we detect it and take steps to deter it.

Please note that the limits and restrictions described herein are subject to our ability to monitor transfer activity. Our ability to detect market timing or disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies employed by 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 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 that we cannot predict.

Furthermore, we may revise our policies and procedures in our sole discretion at any time and without prior notice, as we deem necessary or appropriate (1) to better detect and deter harmful trading that may adversely affect other 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 policyowners 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 less than a certain period of time. The prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading. Policyowners should be aware that we do not monitor transfer requests from policyowners or persons acting on behalf of policyowners for compliance with, nor do we apply, the frequent trading policies and procedures of the respective underlying fund portfolios that would be affected by the transfers.

Policyowners should be aware that we are required to provide to an underlying fund portfolio or its payee, promptly upon request, certain information about the trading activity of individual policyowners, and to restrict or prohibit further purchases or transfers by specific policyowners or persons acting on their behalf, if identified by an underlying fund portfolio as violating the frequent trading policies established for the underlying fund portfolio.

Omnibus Orders. 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 policyowners 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 may affect other policyowners of underlying fund portfolio shares, as well as the policyowners 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 policyowners engaged in market timing or disruptive trading, the underlying fund portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing your request.

ProFunds and Access 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).

* * * * *

The following information replaces the second paragraph under the section entitled “Legal Proceedings”:

We are currently being audited on behalf of multiple states’ treasury and controllers’ offices for compliance with laws and regulations concerning the identification, reporting and escheatment of unclaimed benefits or abandoned funds. The audits focus on insurance company processes and procedures for identifying unreported death claims, and their use of the Social Security Master Death File to identify deceased Policy and contract holders. In addition, we are the subject of multiple state Insurance Department inquiries and market conduct examinations with a similar focus on the handling of unreported claims and abandoned property. The audits and related examination activity have resulted in or may result in additional payments to beneficiaries, escheatment of funds deemed abandoned, administrative penalties and changes in our procedures for the identification of unreported claims and handling of escheatable property. We do not believe that any regulatory actions or agreements that have resulted from or will result from these examinations has had or will have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the Policy.

* * * * *

Illustrations:

The information contained in both the explanation and “Hypothetical Illustrations” is out-of-date and should not be relied upon.

* * * * *

For additional information, you may contact us at our administrative office at 1-800-851-9777, from 8:30a.m. – 7:00p.m., Eastern Time or visit our website at: www.westernreserve.com. 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.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED MAY 1, 2013

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following information hereby supplements or amends, and to the extent is inconsistent replaces, certain information contained in your prospectus:

Range of Expenses for the Portfolios^{1, 2}

The table below shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2012. 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%	2.05%
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%	1.68%

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, 2012. Current or future expenses may be greater or less than those shown.

² The table showing the range of expenses for the portfolios takes into account the expenses of several Transamerica Series Trust asset allocation portfolios 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 those funds on the combined actual expenses for each “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. See the prospectuses for the Transamerica Series Trust for a presentation of all applicable Acquired Fund fees and expenses.

³ The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements for 6 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2014.

* * * * *

INVESTMENT OPTIONS:

Please note the following changes to your Transamerica Series Trust investment options:

Effective May 1, 2013:

Transamerica BlackRock Large Cap Value VP was renamed Transamerica Barrow Hanley Dividend Focused VP and Barrow, Hanley, Mewhinney & Strauss, LLC replaced BlackRock Investment Management, LLC as the portfolio’s sub-adviser.

Transamerica Third Avenue Value VP merged with Transamerica Systematic Small/Mid Cap Value VP. Systematic Financial Management L.P. serves as the portfolio’s sub-adviser.

Please see the Transamerica Series Trust prospectus for any changes regarding the portfolios listed above.

* * * * *

Please note the following:

Fax number 727-299-1529 is a non-working number. Please use the following numbers for fax transmissions:

Facsimile Transaction 1-727-299-1648 (subaccount transfers only) 1-727-299-1620 (all other facsimile transactions)

* * * * *

The following replaces the information under “Please Note” in the section entitled “Federal Income Tax Considerations – Other Tax Considerations”:

Please Note:

• Foreign Account Tax Compliance Act (“FATCA”). The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, such purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser’s country of citizenship or residence. Additional documentation may be required with respect to entity purchasers (including foreign corporations, partnerships, and trusts) that are not U.S. residents, and additional withholding may be imposed if such documentation is not provided. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation with respect to an annuity contract purchase.

• 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. The 2010 Taxpayer Relief Act generally extended the EGGTRA provisions existing in 2009 and reunified the estate and gift transfer taxes for 2011 and 2012. The American Taxpayer Relief Act of 2012 made permanent certain of the changes to the estate, gift and generation-skipping transfer taxes. This recent history of changes in these important tax provisions 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.

* * * * *

The following replaces the information under “Assignment of the Policy”:

You may assign your Policy by filing a written request with us. We will not be bound by any assignment until we record it in our records. Unless otherwise specified by you, the assignment will then take effect on the date the assignment is signed by you, subject to any payments made or actions taken by us prior to our recording of the assignment. We assume no responsibility for the validity or effect of any assignment of the Policy or of any interest in it. Any death benefit which becomes payable to an assignee will be payable in a single sum and will be subject to proof of the assignee’s interest and the extent of the assignment.

* * * * *

The following section is added to the section “Additional Information”:

UNCLAIMED OR ABANDONED PROPERTY

Every state has unclaimed property laws that generally provide for escheatment to the state of unclaimed property (including proceeds of annuity, life and other insurance policies) under various circumstances. In addition to the state unclaimed property laws, we may be required to escheat property pursuant to regulatory demand, finding, agreement or settlement. To help prevent such escheatment, it is important that you keep your contact and other information on file with us up to date, including the names, contact information and identifying information for owners, insureds, annuitants, beneficiaries and other payees. Such updates should be communicated in a form and manner satisfactory to us.

* * * * *

The following information replaces the information under “Legal Proceedings” :

We, like other life insurance companies, are subject to regulatory and legal proceedings, including class action lawsuits, in the ordinary course of our business. Such legal and regulatory matters include proceedings specific to us and other proceedings generally applicable to business practices in the industry in which we operate. In some lawsuits and regulatory proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation or regulatory proceeding cannot be predicted with certainty, at the present time, we believe that there are no pending or threatened proceedings or 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 our ability to meet our obligations under the Policy.

We are currently being audited on behalf of multiple states’ treasury and controllers’ offices for compliance with laws and regulations concerning the identification, reporting and escheatment of unclaimed benefits or abandoned funds. The audits focus on insurance company processes and procedures for identifying unreported death claims, and their use of the Social Security Master Death File to identify deceased Policy and contract holders. In addition, we are the subject of multiple state Insurance Department inquiries and market conduct examinations with a similar focus on the handling of unreported claims and abandoned property. The audits and related examination activity may result in additional payments to beneficiaries, escheatment of funds deemed abandoned, administrative penalties and changes in our procedures for the identification of unreported claims and handling of escheatable property. We do not believe that any regulatory actions or agreements that result from these examinations will have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the Policy.

* * * * *

Illustrations:

The information contained in both the explanation and “Hypothetical Illustrations” is out-of-date and should not be relied upon.

* * * * *

For additional information, you may contact us at our administrative office at 1-800-851-9777, from 8:30a.m. – 7:00p.m., Eastern Time or visit our website at: www.westernreserve.com. 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.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED JULY 13, 2012

TO PROSPECTUS DATED MAY 1, 2012

FOR

WRL FREEDOM ELITE BUILDER^®

WRL FREEDOM ELITE BUIDER II^®

WRL FREEDOM ELITE^®

WRL FINANCIAL FREEDOM BUILDER^®

WRL XCELERATOR^SM

WRL FREEDOM EQUITY PROTECTOR^®

TO PROSPECTUS DATED MAY 1, 2010

FOR

WRL FORLIFE^SM

TO PROSPECTUS DATED MAY 1, 2004

FOR

WRL FREEDOM ELITE ADVISOR^SM

TO PROSPECTUS DATED MAY 1, 1994

FOR

WRL FREEDOM SP+^®

TO PROSPECTUS DATED MAY 1, 1989

FOR

THE EQUITY PROTECTOR^®

Each An Individual Flexible Premium Variable Life Insurance Policy

and

TO PROSPECTUS DATED MAY 1, 2012

FOR

WRL FREEDOM WEALTH PROTECTOR^SM

A Joint Survivor Flexible Premium Variable Life Insurance Policy

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

This Supplement modifies certain information contained in your WRL Freedom Elite Builder^® (and Associates Policy), WRL Freedom Elite Builder II^® ,WRL Freedom Elite^®, WRL Financial Freedom Builder^®, WRL ForLife^SM, WRL Xcelerator^SM (and WRL Xcelerator Exec and WRL Xcelerator Focus), WRL Freedom Equity Protector^®, WRL Freedom Elite Advisor, WRL Freedom SP+^®, The Equity Protector^® and/or WRL Freedom Wealth Protector^SM prospectuses. Please read it carefully and retain it for future reference. All terms that are not defined in this supplement shall have the same meanings as the same terms used in the prospectuses.

The following information replaces the information that is contained in your current product prospectus or supplement to your prospectus:

Effective May 1, 2012, the overnight delivery charge is $30.00.

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

SUPPLEMENT DATED MAY 1, 2012

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following information hereby supplements or amends, and to the extent is inconsistent replaces, certain information contained in your prospectus:

The following is added to the front cover of the prospectus:

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 Communication	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

*  *  *  *  *

Range of Expenses for the Portfolios^{1, 2}

The table below shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2011. 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%	1.69%

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, 2011. Current or future expenses may be greater or less than those shown.

² The table showing the range of expenses for the portfolios takes into account the expenses of several Transamerica Series Trust asset allocation portfolios 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. See the prospectuses for the Transamerica Series Trust for a presentation of the applicable Acquired Fund fees and expenses.

³ The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements for 12 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2013.

*  *  *  *  *

INVESTMENT OPTIONS:

Please note the following changes to your Transamerica Series Trust investment options:

Effective August 16, 2011:

Transamerica Clarion Global Real Estate Securities VP: The portfolio’s sub-adviser, ING Clarion Real Estate Securities, LLC was renamed CBRE Clarion Securities, LLC.

Effective December 9, 2011:

• Transamerica Morgan Stanley Growth Opportunities VP merged with Transamerica Morgan Stanley Mid-Cap Growth VP.

• Transamerica WMC Diversified Equity VP merged with Transamerica WMC Diversified Growth VP.

Effective February 17, 2012:

Transamerica Asset Management, Inc. assumed full responsibility for the day-to-day management of the following portfolios:

Transamerica Asset Allocation - Conservative VP

Transamerica Asset Allocation - Growth VP

Transamerica Asset Allocation - Moderate Growth VP

Transamerica Asset Allocation - Moderate VP

Transamerica International Moderate Growth VP

Todd R. Porter, CFA, was selected as portfolio manager for the portfolios. Mr. Porter was a portfolio construction consultant for each portfolio other than the Transamerica International Moderate Growth VP portfolio from the portfolio’s inception through 2005, and served as portfolio manager for the portfolios in 2005 and 2006. Mr. Porter also served as portfolio manager for Transamerica International Moderate Growth VP in 2006.

The information in your prospectus regarding Morningstar is deleted in its entirety and all references to Morningstar are also deleted.

Please see the Transamerica Series Trust prospectus for any changes regarding the portfolios listed above.

*  *  *  *  *

Effective January 6, 2012:

Our affiliate, World Group Securities, merged with Transamerica Financial Advisors, Inc. (“TFA”). TFA serves as Western Reserve’s main distribution channel.

*  *  *  *  *

The following replaces the respective paragraph under “Revenue We Receive”:

Rule 12b-1 Fees. We, and/or our affiliate, Transamerica Capital, Inc. (“TCI”) who is the principal underwriter for the Policies, indirectly receives 12b-1 fees from the funds available as investment choices under our variable insurance products. Any 12b-1 fees received by TCI that are attributable to our variable insurance products are then credited to us. These fees range from 0.00% to 0.35% 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.

*  *  *  *  *

The following information is added to the section entitled “Ownership Rights”:

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.

*  *  *  *  *

The following paragraph is added to the section entitled “Disruptive Trading and Market Timing” after the second paragraph under “Deterrence”:

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.

*  *  *  *  *

Illustrations:

The information contained in both the explanation and “Hypothetical Illustrations” is out-of-date and should not be relied upon.

*  *  *  *  *

For additional information, you may contact us at our administrative office at 1-800-851-9777, from 8:30a.m. – 7:00p.m., Eastern Time or visit our website at: www.westernreserve.com. 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.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

Supplemented dated November 4, 2011

To Prospectuses listed below

For variable life insurance policies issued by

Western Reserve Life Assurance Co. of Ohio

And

Transamerica Financial Life Insurance Company

This supplement updates and amends certain information contained in the prospectuses listed below. Please read it carefully and keep it with your prospectus for reference:

WRL Freedom Elite Builder^®, WRL Freedom Elite Builder II^®, WRL Freedom Elite^®, WRL Financial Freedom Builder^®, WRL Xcelerator^SM (Xcelerator Focus & Xcelerator Exec), WRL Freedom Equity Protector^®, WRL The Equity Protector^®, WRL Freedom Asset Advisor^SM, WRL Freedom Elite Advisor^SM, WRL Freedom Wealth Protector^SM, WRL ForLife^SM, WRL Evolution^SM, WRL Benefactor^SM, WRL Freedom SP+^®, TFLIC Freedom Elite Builder^®, TFLIC Freedom Elite Builder II^®, TFLIC Financial Freedom Builder^®, and/or TFLIC Freedom Wealth Protector^SM

NOTICE OF UPCOMING VARIABLE INVESTMENT OPTION (“FUND”) MERGERS

The Board of Trustees of Transamerica Series Trust has approved a proposal to merge certain funds. Effective after close of business on or about December 30, 2011 (“Merger Effective Date”), the following Disappearing Funds will merge into and become part of the following Surviving Funds:

Disappearing Funds	Surviving Funds
Transamerica Morgan Stanley Growth Opportunities VP	Transamerica Morgan Stanley Mid-Cap Growth VP
Transamerica WMC Diversified Equity VP	Transamerica WMC Diversified Growth VP

IMPORTANT INFORMATION REGARDING THE

UPCOMING FUND MERGERS

• Prior to the Merger Effective Date, you may transfer amounts allocated to a Disappearing Fund to any other available investment portfolio offered under your Policy. You can make a new election by submitting a new election form or by calling us at the toll-free number for your Policy listed below, provided that the telephone access privilege is in effect on your Policy.

• On the Merger Effective Date, if we have not received instructions from you by December 29, 2011 to transfer your policy value in a Disappearing Fund to another investment option under your Policy, your policy value will automatically be transferred to the respective Surviving Fund listed above.

• If you previously elected to have transfers made to one of the Disappearing Funds under a Dollar Cost Averaging (DCA) Option election or under an Asset Rebalancing Option election, unless you submit a new DCA election or Asset Rebalancing election by December 29, 2011, then any transfers after that date will automatically go into the respective Surviving Fund. New election requests for those options may be submitted by telephone if you have telephone privileges or by submitting a new request form. New elections will become effective with the next scheduled transfer on or after the date we receive your new election in good order. Any request forms received by us after December 29, 2011 that specify transfers into one of the Disappearing Funds will not be considered in good order and will not be processed. We will contact you and will require a new request form before the transfer is processed.

• If your Monthly Deduction Allocation election in effect prior to December 30, 2011 includes one of the Disappearing Funds, you should submit a new election that does not include those funds. If we receive your new election prior to December 30, 2011, monthly deductions taken on or after the date of receipt of your new election will be deducted in accordance with new election. If your Monthly Deduction Allocation election on December 30, 2011 includes one of the Disappearing Funds and we have not received a new election form from you before that date, then beginning with monthly deductions taken on that date, the portion that you had previously requested will be taken from the respective Surviving Fund. Of course, you may submit a new election form at any time for future monthly deduction allocations.

• If your loan or withdrawal request is received in good order and includes specific allocation of amounts to one of the Disappearing Funds, then we will honor the request (subject to all policy provisions) as long as it is received prior to December 30, 2011. After that date, any loan or withdrawal request received that

directs that the amount of the loan or withdrawal be deducted, in whole or in part, from one of the Disappearing Funds will be treated as not in good order. We will contact you and will require a new request before we process the loan or withdrawal.

• Loan repayments are processed in accordance with the current premium allocation election in effect for your Policy on the date of the loan repayment. Please see the information above regarding premium allocation elections.

*  *  *  *  *

Thank you for choosing Western Reserve and Transamerica Financial Life. We appreciate your business. If you have any questions about this notice, or to request copies of prospectuses for any of the investment options available under your Policy, please contact us, toll-free at 1-800-851-9777 (Western Reserve) or 1-800-322-7353 (Transamerica Financial Life), between the hours of 8:30 a.m. and 7:00 p.m. Eastern Time.

SUPPLEMENT DATED SEPTEMBER 8, 2011

TO STATEMENT OF ADDITIONAL INFORMATION (“SAI”)

DATED MAY 1, 2011

FOR

WRL FREEDOM ELITE BUILDER^®

WRL FREEDOM ELITE BUIDER II^®

WRL FREEDOM ELITE^®

WRL FINANCIAL FREEDOM BUILDER^®

WRL XCELERATOR^SM

WRL FREEDOM EQUITY PROTECTOR^®

TO SAI DATED MAY 1, 2010

FOR

WRL FORLIFE^SM

TO SAI DATED MAY 1, 2004

FOR

WRL FREEDOM ELITE ADVISOR^SM

TO SAI DATED MAY 1, 1994

FOR

WRL FREEDOM SP+^®

TO SAI DATED MAY 1, 1989

FOR

THE EQUITY PROTECTOR^®

Each An Individual Flexible Premium Variable Life Insurance Policy

and

TO SAI DATED MAY 1, 2011

FOR

WRL FREEDOM WEALTH PROTECTOR^SM

A Joint Survivor Flexible Premium Variable Life Insurance Policy

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

This Supplement modifies certain information contained in your WRL Freedom Elite Builder^® (and Associates Policy), WRL Freedom Elite Builder II^® ,WRL Freedom Elite^®, WRL Financial Freedom Builder^®, WRL ForLife^SM, WRL Xcelerator^SM (and WRL Xcelerator Exec and WRL Xcelerator Focus), WRL Freedom Equity Protector^®, WRL Freedom Elite Advisor, WRL Freedom SP+^®, The Equity Protector^® and/or WRL Freedom Wealth Protector^SM statements of additional information (“SAIs”). Please read it carefully and retain it for future reference. All terms that are not defined in this supplement shall have the same meanings as the same terms used in the SAIs.

The following information replaces the information that is contained in your product SAI:

Effective September 9, 2011, all Claims and Forms should be sent to:

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

SUPPLEMENT DATED AUGUST 11, 2011

TO PROSPECTUS DATED MAY 1, 2011

FOR

WRL FREEDOM ELITE BUILDER^®

WRL FREEDOM ELITE BUIDER II^®

WRL FREEDOM ELITE^®

WRL FINANCIAL FREEDOM BUILDER^®

WRL XCELERATOR^SM

WRL FREEDOM EQUITY PROTECTOR^®

TO PROSPECTUS DATED MAY 1, 2010

FOR

WRL FORLIFE^SM

TO PROSPECTUS DATED MAY 1, 2004

FOR

WRL FREEDOM ELITE ADVISOR^SM

TO PROSPECTUS DATED MAY 1, 1994

FOR

WRL FREEDOM SP+^®

TO PROSPECTUS DATED MAY 1, 1989

FOR

THE EQUITY PROTECTOR^®

Each An Individual Flexible Premium Variable Life Insurance Policy

and

TO PROSPECTUS DATED MAY 1, 2011

FOR

WRL FREEDOM WEALTH PROTECTOR^SM

A Joint Survivor Flexible Premium Variable Life Insurance Policy

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

This Supplement modifies certain information contained in your WRL Freedom Elite Builder^® (and Associates Policy), WRL Freedom Elite Builder II^® ,WRL Freedom Elite^®, WRL Financial Freedom Builder^®, WRL ForLife^SM, WRL Xcelerator^SM (and WRL Xcelerator Exec and WRL Xcelerator Focus), WRL Freedom Equity Protector^®, WRL Freedom Elite Advisor, WRL Freedom SP+^®, The Equity Protector^® and/or WRL Freedom Wealth Protector^SM prospectuses. Please read it carefully and retain it for future reference. All terms that are not defined in this supplement shall have the same meanings as the same terms used in the prospectuses.

The following information replaces the information regarding loan requests by telephone that is contained in your current product prospectus or supplement to your prospectus under the heading “Loans”:

You may request a loan 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 the loan amount you request by telephone exceeds $50,000 or if the address of record has been changed within the past 10 days, we may reject your request or require a signature guarantee. 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.)

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

SUPPLEMENT DATED AUGUST 9, 2011

TO PROSPECTUS DATED MAY 1, 2011

FOR

WRL FREEDOM ELITE BUILDER^®

WRL FREEDOM ELITE BUIDER II^®

WRL FREEDOM ELITE^®

WRL FINANCIAL FREEDOM BUILDER^®

WRL XCELERATOR^SM

WRL FREEDOM EQUITY PROTECTOR^®

TO PROSPECTUS DATED MAY 1, 2010

FOR

WRL FORLIFE^SM

TO PROSPECTUS DATED MAY 1, 2004

FOR

WRL FREEDOM ELITE ADVISOR^SM

TO PROSPECTUS DATED MAY 1, 1994

FOR

WRL FREEDOM SP+^®

TO PROSPECTUS DATED MAY 1, 1989

FOR

THE EQUITY PROTECTOR^®

Each An Individual Flexible Premium Variable Life Insurance Policy

and

TO PROSPECTUS DATED MAY 1, 2011

FOR

WRL FREEDOM WEALTH PROTECTOR^SM

A Joint Survivor Flexible Premium Variable Life Insurance Policy

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

This Supplement modifies certain information contained in your WRL Freedom Elite Builder^® (and Associates Policy), WRL Freedom Elite Builder II^® ,WRL Freedom Elite^®, WRL Financial Freedom Builder^®, WRL ForLife^SM, WRL Xcelerator^SM (and WRL Xcelerator Exec and WRL Xcelerator Focus), WRL Freedom Equity Protector^®, WRL Freedom Elite Advisor, WRL Freedom SP+^®, The Equity Protector^® and/or WRL Freedom Wealth Protector^SM prospectuses. Please read it carefully and retain it for future reference. All terms that are not defined in this supplement shall have the same meanings as the same terms used in the prospectuses.

The following information replaces the information that is contained in your current product prospectus or supplement to your prospectus:

Effective September 9, 2011, all Claims and Forms should be sent to:

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

SUPPLEMENT DATED MAY 1, 2011

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following information hereby supplements or amends, and to the extent inconsistent replaces, certain information contained in your prospectus:

* * * * *

Range of Expenses for the Portfolios^{1, 2}

The table below shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2010. 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)	0.40%	2.05%
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	0.40%	1.68%

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, 2010. Current or future expenses may be greater or less than those shown.

² The table showing the range of expenses for the portfolios takes into account the expenses of several Transamerica Series Trust asset allocation portfolios that are each a “fund of funds.” A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Transamerica Series Trust portfolios and certain portfolios of the Transamerica Funds (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 Transamerica Series Trust on the combined actual expenses for each “fund of funds” and the portfolios in which it invests. The combined expense information includes the Acquired Fund (i.e., the underlying fund’s) fees and expenses of the underlying funds for the Transamerica Series Trust asset allocation portfolios. See the prospectus for the Transamerica Series Trust for a presentation of the applicable Acquired Fund fees and expenses.

³ The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements for 7 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2012.

* * * * *

INVESTMENT OPTIONS:

Please note the following changes to your investment options:

Effective August 16, 2010:

• Transamerica Convertible Securities VP was renamed Transamerica AllianceBernstein Dynamic Allocation VP and AllianceBernstein L.P. replaced Transamerica Investment Management, Inc. as sub-adviser.

Effective March 22, 2011:

• Transamerica Balanced VP was renamed Transamerica Multi-Managed Balanced VP. BlackRock Financial Management, Inc. became sub-adviser to the fixed income portion of the portfolio and JPMorgan Investment Management Inc. became sub-adviser for the equity portion of the portfolio, each replacing Transamerica Investment Management, Inc.

• Transamerica Diversified Equity VP was renamed Transamerica WMC Diversified Equity VP. Wellington Management Company, LLP will continue to serve as sub-adviser.

• Transamerica Focus VP was renamed Transamerica Morgan Stanley Capital Growth VP. Morgan Stanley Investment Management Inc. replaced Transamerica Investment Management, Inc. as sub-adviser.

• Transamerica Growth Opportunities VP was renamed Transamerica Morgan Stanley Growth Opportunities VP. Morgan Stanley Investment Management Inc. replaced Transamerica Investment Management, Inc. as sub-adviser.

• Transamerica Small/Mid Cap Value VP was renamed Transamerica Systematic Small/Mid Cap Value VP. Systematic Financial Management L.P. replaced Transamerica Investment Management, Inc. as sub-adviser.

• Transamerica Money Market VP was renamed Transamerica AEGON Money Market VP. AEGON USA Investment Management LLC was approved by shareholders to replace Transamerica Investment Management, Inc. as sub-adviser.

Effective May 1, 2011:

• Transamerica Federated Market Opportunity VP was renamed JPMorgan Tactical Allocation VP. JP Morgan Investment Management replaced Federated Equity Management Company of Pennsylvania as sub-adviser.

Please see the Transamerica Series Trust prospectus for any changes regarding the portfolios listed above.

Note: If you are a policyowner invested in the Transamerica JPMorgan Mid Cap Value VP portfolio, you will receive a prospectus for that portfolio under separate cover.

* * * * *

Premium Payments:

The following is added to the section entitled “Payment and Allocation of Premiums”:

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.

* * * * *

Retained Asset Accounts:

The following information replaces the information under the heading “Retained Asset Accounts”:

Effective April 1, 2011, Assurance Plus Accounts are no longer available for payment of claim proceeds. No new accounts will be established, but if you currently have an Assurance Plus Account we will continue to honor that account.

For new claims, unless a settlement option is elected, payments will be made in the form of a lump sum check.

* * * **

Surrenders:

The following sentence is added after the first sentence under the heading “Surrender Privileges” in your prospectus:

We may require an original signature with such written request.

* * * **

Illustrations:

The information contained in both the explanation and “Hypothetical Illustrations” is out-of-date and should not be relied upon. In addition, current hypothetical illustrations for the new portfolios are not included in the Appendix.

* * * **

Federal Tax Matters:

The following information is added at the end of the section entitled “Federal Tax Matters”:

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.

* * * * * * *

For additional information, you may contact us at our administrative office at 1-800-851-9777, from 8:30a.m. – 7:00p.m., Eastern time or visit our website at: www.westernreserve.com. 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.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED JULY 8, 2010

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following information hereby supplements or amends, and to the extent inconsistent replaces, certain information contained in your prospectus.

The following sentence is deleted from the first paragraph on page 28 of your prospectus under the heading “Making Premium Payments”:

We will consider any payments you make to be premium payments, unless you clearly mark them as loan repayments.

The following sentence is deleted from the third paragraph on page 47 of your prospectus under the heading “Loans - General”:

We will consider any payments you make on the Policy to be premium payments unless the payments are clearly specified as loan repayments.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED MAY 1, 2010

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following information hereby supplements or amends, and to the extent inconsistent replaces, certain information contained in your prospectus:

* * * * *

Range of Expenses for the Portfolios^{1, 2}

The table below shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2009. 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)	0.41%	1.83%
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	0.41%	1.68%

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, 2009. Current or future expenses may be greater or less than those shown.

² The table showing the range of expenses for the portfolios takes into account the expenses of several Transamerica Series Trust asset allocation portfolios that are each a “fund of funds.” A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Transamerica Series Trust portfolios and certain portfolios of the Transamerica Funds (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 Transamerica Series Trust on the combined actual expenses for each “fund of funds” and the portfolios in which it invests. The combined expense information includes the Acquired Fund (i.e., the underlying fund’s) fees and expenses of the underlying funds for the Transamerica Series Trust asset allocation portfolios. See the prospectus for the Transamerica Series Trust for a presentation of the applicable Acquired Fund fees and expenses.

³ The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements for 9 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2011.

* * * * *

INVESTMENT OPTIONS

Please note the following changes to your investment options:

• Effective November 20, 2009, Transamerica Capital Guardian Value VP merged into Transamerica BlackRock Large Cap Value VP and BlackRock Investment Management, LLC replaced Capital Guardian Trust Company as sub-adviser to the portfolio.

• Effective November 20, 2009, Transamerica Legg Mason Partners All Cap VP was renamed Transamerica Focus VP and Transamerica Investment Management, LLC replaced ClearBridge Advisors, LLC as sub-adviser to the portfolio.

• Effective April 9, 2010, Transamerica Equity VP was renamed Transamerica WMC Diversified Growth VP and Wellington Management Company, LLP replaced Transamerica Investment Management, LLC as sub-adviser to the portfolio.

• Effective May 1, 2010, Transamerica Science & Technology VP and Transamerica Munder Net 50 VP merged into Transamerica Templeton Global VP. Transamerica Templeton Global VP was then renamed Transamerica Diversified Equity VP and Transamerica Investment Management, LLC serves as sub-adviser to the portfolio.

• Effective May 1, 2010, Transamerica Value Balanced VP merged into Transamerica Balanced VP. Transamerica Investment Management, LLC serves as sub-adviser to the portfolio.

• Effective May 1, 2010, Transamerica Marsico Growth VP merged into Transamerica Jennison Growth VP. Jennison Associates LLC serves as sub-adviser to the portfolio.

• Effective May 1, 2010, Van Kampen Mid Cap Growth VP was renamed Transamerica Morgan Stanley Mid Cap Growth VP. Van Kampen Asset Management serves as sub-adviser to the portfolio.

* * * * *

Financial Condition of the Company

The following paragraph replaces the first paragraph under the heading “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 the benefits is not guaranteed and depends upon certain factors discussed below.

* * * * *

Signature Guarantees

The following sentence replaces the first sentence of the second paragraph under the heading “Signature Guarantees”:

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

* * * * *

The following information replaces the information under the heading “Retained Asset Accounts”:

Retained Asset Accounts

When a death benefit is paid in a lump sum and is $15,000 or greater, your beneficiary may elect to have the death benefit deposited into an interest-bearing account, called the Assurance Plus Account. We will send the beneficiary a “checkbook”, and the beneficiary will have access to the account simply by writing a “draft” for all or part of the amount of the death benefit. We use a bank, the Northern Trust Company, to process your “drafts.”

Upon receipt of the “draft” by the bank, the bank will draw down the amount you requested from our general account. We do not guarantee to credit a minimum interest rate on amounts left in the Assurance Plus Account. Any interest paid on amounts in the Assurance Plus Account is currently taxable.

The Assurance Plus Account is part of our general account. It is not a bank account, and it is not insured by the FDIC or any other government agency. As part of our general account, it is subject to the claims of our creditors. We may make a profit on all amounts left in the Assurance Plus Account. The Assurance Plus account is not available in all states.

* * * **

Illustrations:

The information contained in both the explanation and “Hypothetical Illustrations” is out-of-date and should not be relied upon. In addition, current hypothetical illustrations for the new portfolios are not included in the Appendix.

* * * * * * *

For additional information, you may contact us at our administrative office at 1-800-851-9777, from 8:30a.m. – 7:00p.m., Eastern time or visit our website at: www.westernreserve.com. 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.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED MAY 1, 2009

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following information hereby supplements or amends, and to the extent inconsistent replaces, certain information contained in your prospectus:

Direct electronic, telephonic and facsimile transactions to the

Administrative Office:

(727) 299-1800 or 1-800-851-9777

Facsimile 1-737-299-1620/1-727-299-1648 (interfund transactions only)

www.westernreserve.com

Direct Claims Forms to the Administrative Office at:

P.O. Box 9008

Clearwater, FL 33758-9008

Direct all payments made by check, and all other correspondence

and notices to the Mailing Address:

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499

* * * * *

Range of Expenses for the Portfolios^{1, 2}

The table below shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2008. 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%	2.49%
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%	1.68%

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, 2008. Current or future expenses may be greater or less than those shown.

² The table showing the range of expenses for the portfolios takes into account the expenses of several Transamerica Series Trust asset allocation portfolios that are each a “fund of funds.” A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Transamerica Series Trust portfolios and certain portfolios of the Transamerica Funds (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 Transamerica Series Trust on the combined actual expenses for each “fund of funds” and the portfolios in which it invests. The combined expense information includes the Acquired Fund (i.e., the underlying fund’s) fees and expenses of the underlying funds for the Transamerica Series Trust asset allocation portfolios. See the prospectus for the Transamerica Series Trust for a presentation of the applicable Acquired Fund fees and expenses.

³ The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements for 27 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2010.

* * * * *

Transamerica Money Market VP Portfolio

Please add the following footnote to the portfolio listing contained in your prospectus:

There can be no assurance that the Transamerica 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 WRL Transamerica Money Market VP subaccount may become extremely low and possibly negative.

* * * * *

Transamerica Capital Guardian U.S. Equity Portfolio

Effective May 1, 2009, Transamerica Capital Guardian U.S. Equity VP of the Series Trust merged into Transamerica Van Kampen Large Cap Core VP. All policyowners invested in Transamerica Capital Guardian U.S. Equity VP, as of close of business on April 30, 2009, were allocated units representing equal value in the Transamerica Van Kampen Large Cap Core VP subaccount.

* * * * *

Financial Condition of the Company

Many financial services companies, including insurance companies, have been facing challenges in this unprecedented economic and market environment, and we are not immune to those challenges. It is important for you to understand the impact these events may have, not only on your accumulation value, but also on our ability to meet the guarantees under your Policy.

Assets in the Separate Account. You assume all of the investment risk for your accumulation value that is allocated to the sub-accounts of the separate account. Your accumulation value in those sub-accounts 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.” The general account is not segregated or insulated from the claims of Transamerica’s creditors.

Policy owners look to the financial strength of the insurance company for its insurance guarantees. More specifically, any guarantees under the Policy that exceed your accumulation value 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 accumulation value are subject to (i) our financial strength and claims-paying ability and (ii) the risk that we may not be able to cover, or may default on, our obligations under those guarantees.

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 policy owners. 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 accumulation 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 policy owners 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 administrative office - Western Reserve Life Assurance Co. of Ohio, 570 Carillon Parkway, St. Petersburg, Florida 33716 - 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.

* * * * *

Signature Guarantees

Signature guarantees are relied upon as a means of preventing the perpetuation 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 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 account; and

• 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 annuity policy for another with the same owner in a “tax-free exchange” under Section 1035 of the Internal Revenue Code.

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; and

• 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.

* * * * *

Sending Forms and Written Requests in Good Order

We cannot process your instructions to process a transaction relating to the policy 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 by telephone or facsimile, or electronically, as appropriate), 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.

* * * * *

Retained Asset Accounts

“When a death benefit is paid in a lump sum and is $15,000 or greater, your beneficiary may elect to have the death benefit deposited into an interest-bearing account, called the Assurance Plus Account with the Northern Trust Company. We will send the beneficiary a “checkbook,” and the beneficiary will have access to the account simply by writing a “draft” for all or part of the amount of the death benefit. Upon receipt of the “draft” by the bank, the bank will draw down the amount you requested from our general account. The Assurance Plus Account is part of our general account. It is not a bank account, and it is not insured by the FDIC or any other government agency. As part of our general account, it is subject to the claims of our creditors. We do not guarantee to credit a minimum interest rate on amounts left in the Assurance Plus Account. We may make a profit on all amounts left in the Assurance Plus Account. (The Assurance Plus Account is not available in all states.)

* * * **

Loan Requests:

If your loan request is less than $500,000, then you may fax it to us at 1-727-299-1620

* * * * *

Illustrations:

The information contained in both the explanation and “Hypothetical Illustrations” is out-of-date and should not be relied upon. In addition, current hypothetical illustrations for the new portfolios are not included in the Appendix.

* * * **

The following replaces the entire section under the heading “Experts” in your Prospectus:

Independent Registered Public Accounting Firm

The financial statements of the separate account at December 31, 2008 and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Western Reserve at December 31, 2008 and 2007, and for each of the three years in the period ended December 31, 2008, 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 their respective reports thereon appearing elsewhere herein, and are included in reliance upon such report given upon the authority of such firm as experts in accounting and auditing.

* * * * * * *

For additional information, you may contact us at our administrative office at 1-800-851-9777, from 8:30a.m. – 7:00p.m., Eastern time or visit our website at: www.westernreserve.com. TCI serves as the principal underwriter for the Policies. More information about TCI is available at http://www.finra.com or by calling 1-800-289-9999. You also can obtain an investor brochure from the Financial Regulatory Authority (“FINRA”) (formerly NASD) describing its Public Disclosure Program.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED MAY 1, 2008

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

Change of name for Investment Adviser, Trust and Portfolios

Effective January 1, 2008, Transamerica Fund Advisors, Inc. changed its name to Transamerica Asset Management, Inc. Effective May 1, 2008, the AEGON/Transamerica Series Trust was renamed as Transamerica Series Trust; also effective May 1, 2008, several AEGON/Transamerica Trust portfolios changed their respective names as set forth in the following table:

FORMER NAME	NEW NAME
AEGON/TRANSAMERICA SERIES TRUST	TRANSAMERICA SERIES TRUST
Asset Allocation – Conservative Portfolio	Transamerica Asset Allocation – Conservative VP
Asset Allocation – Growth Portfolio	Transamerica Asset Allocation – Growth VP
Asset Allocation – Moderate Growth Portfolio	Transamerica Asset Allocation – Moderate Growth VP
Asset Allocation – Moderate Portfolio	Transamerica Asset Allocation – Moderate VP
Clarion Global Real Estate Securities	Transamerica Clarion Global Real Estate Securities VP
Federated Market Opportunity	Transamerica Federated Market Opportunity VP
International Moderate Growth Fund	Transamerica International Moderate Growth VP
JPMorgan Core Bond	Transamerica JPMorgan Core Bond VP
JPMorgan Mid Cap Value	Transamerica JPMorgan Mid Cap Value VP
Legg Mason Partners All Cap	Transamerica Legg Mason Partners All Cap VP
Marsico Growth	Transamerica Marsico Growth VP
MFS International Equity	Transamerica MFS International Equity VP
Munder Net50	Transamerica Munder Net50 VP
PIMCO Total Return	Transamerica PIMCO Total Return VP
T. Rowe Price Equity Income	Transamerica T. Rowe Price Equity Income VP
T. Rowe Price Small Cap	Transamerica T. Rowe Price Small Cap VP
Templeton Transamerica Global	Transamerica Templeton Global VP
Third Avenue Value	Transamerica Third Avenue Value VP
Transamerica Balanced	Transamerica Balanced VP
Transamerica Convertible Securities	Transamerica Convertible Securities VP
Transamerica Equity	Transamerica Equity VP
Transamerica Growth Opportunities	Transamerica Growth Opportunities VP
Transamerica Money Market	Transamerica Money Market VP
Transamerica Science & Technology	Transamerica Science & Technology VP
Transamerica Value Balanced	Transamerica Value Balanced VP
Van Kampen Mid-Cap Growth	Transamerica Van Kampen Mid-Cap Growth VP

All references in your prospectus to the previous names should be read as the new names noted above.

The following replaces the entire definition of “Office” on page 2 of your Prospectus:

Office:

Administrative Office: Our administrative office address is P.O. Box 5068, Clearwater, Florida, 33758-5068. Our street 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 interfund transactions); and 1-727-299-1620 for all other 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, correspondence or notices to this office; send them to the mailing address.

Mailing Address: Our mailing address is 4333 Edgewood Road, N.E., Cedar Rapids, Iowa, 52499. All premium payments and loan repayments made by check, correspondence and notices must be sent to this address.

The following information replaces the paragraph on page 33 of the Prospectus under the heading “Charges

against the Series Account – Investment Advisory Fee.”

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. See the fund prospectuses for more information.

The following table shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2007. 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 prospectuses for each portfolio.

Range of Expenses for the Portfolios ^{1, 2}

	Minimum	Maximum
Total Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fee, and other expenses)	0.40%	1.69%
Net Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fee, and other expenses, after contractual waiver of fees and expenses)3	0.40%	1.63%

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, 2007. 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 Series Trust asset allocation portfolios that are a “fund of funds.” A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Transamerica Series Trust portfolios and certain portfolios of the Transamerica Funds (formerly, Transamerica IDEX Mutual Funds (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 Transamerica Series Trust 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 pro rata portion of the fees and expenses incurred indirectly by a Transamerica Series Trust asset allocation portfolio as a result of its investment in shares of one or more Acquired Funds.) See the prospectus for the Transamerica Series Trust prospectus 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 4 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2009.

The following replaces the entire section under the heading “Experts” of the Prospectus:

Independent Registered Public Accounting Firm

The financial statements of the separate account at December 31, 2007 and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Western Reserve at December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, 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 their respective reports thereon appearing elsewhere herein, and are included in reliance upon such report given upon the authority of such firm as experts in accounting and auditing.

The following replaces any previous inserts regarding frequent trading by underlying funds:

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 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.

* * * * * * *

For additional information, you may contact us at our administrative office at 1-800-851-9777, from 8:30a.m. – 7:00p.m., Eastern time or visit our website at: www.westernreserve.com. TCI serves as the principal underwriter for the Policies. More information about TCI is available at http://www.finra.com or by calling 1-800-289-9999. You also can obtain an investor brochure from the Financial Regulatory Authority (“FINRA”) (formerly NASD) describing its Public Disclosure Program.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED MAY 1, 2007

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

Change in Principal Underwriter

Effective May 1, 2007, our affiliate, Transamerica Capital, Inc. (“TCI”) replaced our affiliate, AFSG Securities Corporation as principal underwriter for the Policies.

The following information supplements information provided on pages 13 - 17 of the Prospectus under the heading “The Portfolios”

On May 1, 2007, two portfolios of the AEGON/Transamerica Series Trust changed their names and sub-advisers. These portfolios did not change investment objectives or advisory fees. The AEGON Bond is now JPMorgan Core Bond and sub-advised by JPMorgan Investment Advisors Inc.; and Federated Growth & Income was renamed Federated Market Opportunity and still sub-advised by Federated Equity Management Company of Pennsylvania. All references in your prospectus to the WRL AEGON Bond subaccount should be read as WRL JPMorgan Core Bond subaccount. All references in your prospectus to the WRL Federated Growth & Income subaccount should be read as WRL Federated Market Opportunity subaccount.

The following information replaces the paragraph on page 11 of the Prospectus under the heading “Fee

Tables – Range of Expenses for the Portfolios.”

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. See the fund prospectuses for more information.

The following table shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2006. 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 prospectuses for each portfolio.

Range of Expenses for the Portfolios ^{1, 2}

	Minimum	Maximum
Total Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fee, and other expenses)	0.10%	1.67%
Net Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fee, and other expenses, after contractual waiver of fees and expenses)3	0.10%	1.63%

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, 2006. Current or future expenses may be greater or less than those shown.

2 The table showing the range of expenses for the portfolios takes into account the expenses of several Series Fund asset allocation portfolios that are a “fund of funds.” A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Series Fund portfolios and certain portfolios of the Transamerica IDEX Mutual Funds (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 Series Fund 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 pro rata portion of the fees and expenses incurred indirectly by a Series Fund asset allocation portfolio as a result of its investment in shares of one or more Acquired Funds.) See the prospectus for the Series Fund for a presentation of the applicable Acquired Fund fees and expenses.

3 The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements of 3 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2006.

The following replaces the entire section under the heading “Experts” of the Prospectus:

Independent Registered Public Accounting Firm

The financial statements of the separate account at December 31, 2006 and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Western Reserve at December 31, 2006 and 2005, and for each of the three years in the period ended December 31, 2006, 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 their respective reports thereon appearing elsewhere herein, and are included in reliance upon such report given upon the authority of such firm as experts in accounting and auditing.

For additional information, you may contact us at our administrative office at 1-800-851-9777, extension 6539, from 8:30a.m. – 7:00p.m., Eastern time or visit our website at: www.westernreserve.com. More information about TCI, the principal underwriter for the Policies, is available at http:/www.nasdr.com or by calling 1-800-289-9999.

PLEASE RETAIN THIS WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED OCTOBER 25, 2006 TO

PROSPECTUSES DATED:

WRL FREEDOM ELITE ADVISOR (May 1, 2004)

WRL FREEDOM SP PLUS (May 1, 1994)

THE EQUITY PROTECTOR (May 1, 1989)

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following disclosure supplements the Prospectus:

On November 1, 2006, four portfolios of the AEGON/Transamerica Series Trust will change their names as well as the sub-adviser. These portfolios will not change investment objectives or advisory fees. The Templeton Great Companies Global will be renamed Templeton Transamerica Global, the Great Companies – Technology will be renamed Transamerica Science & Technology, the Salomon All Cap will be renamed Legg Mason Partners All Cap and the Mercury Large Cap Value will be renamed BlackRock Large Cap Value. The sub-adviser for the Templeton Great Companies Global and the Great Companies - Technology portfolios, Great Companies, LLC, will change to Transamerica Investment Counsel, LLC. The sub-adviser for the Salomon All Cap portfolio, Salomon Brothers Asset Management, will change to ClearBridge Advisors, LLC. The sub-adviser for the Mercury Large Cap Value portfolio, Mercury Advisors, will change to BlackRock Investment Management, LLC.

In addition, on November 1, 2006, two portfolios of the AEGON/Transamerica Series Trust will merge into an existing portfolio. The Great Companies – America portfolio and the Janus Growth portfolio will merge into the Transamerica Equity portfolio.

All references in your prospectus to the Templeton Great Companies Global subaccount should be read as Templeton Transamerica Global subaccount. All references in your prospectus to Great Companies – Technology subaccount should be read as Transamerica Science & Technology subaccount. All references in your prospectus to Great Companies – America subaccount and Janus Growth subaccount should be read as Transamerica Equity subaccount. All references in your prospectus to the Salomon All Cap subaccount should be read as Legg Mason Partners All Cap subaccount. All references in your prospectus to Mercury Large Cap Value subaccount should be read as BlackRock Large Cap Value subaccount. All references in your prospectus to Great Companies, LLC as sub-adviser should be read as Transamerica Investment Counsel, LLC. All references in your prospectus to Salomon Brothers Asset Management as sub-adviser should be read as ClearBridge Advisors, LLC. All references in your prospectus to Mercury Advisors as sub-adviser should be read as BlackRock Investment Management, LLC.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR PRODUCT PROSPECTUS

GreatWestedProducts-10/06

SUPPLEMENT DATED JULY 3, 2006

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following information supplements information provided on pages 13 - 17 of the Prospectus under the heading “The Portfolios”

On July 3, 2006, the American Century International portfolio of the AEGON/Transamerica Series Trust was restructured. The portfolio’s name changed from American Century International to MFS International Equity. The investment objective and advisory fees did not change. The sub-adviser for this portfolio changed from American Century Global Investment Management, Inc. to MFS Investment Management. All references in your prospectus to the WRL American Century International subaccount should be read as WRL MFS International Equity subaccount.

For additional information, you may contact us at 1-800-851-9777, extension 6539 from 8:30a.m. – 7:00p.m. Eastern Time. More information about AFSG, the principal underwriter for the Policies, is available at http:/www.nasdr.com or by calling 1-800-289-9999.

PLEASE RETAIN THIS WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED MAY 1, 2006

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

ADVANCE NOTICE:

Effective on or about July 31, 2006, our mailing address will be changed to 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499. The Florida address will become the administrative office. The new Glossary definitions are as follows:

administrative office	Our administrative office address is P.O. Box 5068, Clearwater, Florida 33758-5068. Our street address is 570 Carillon Parkway, St. Petersburg, Florida 33716. Our phone number is 1-800-851-9777. Our hours are Monday – Friday from 8:30 a.m. – 7:00 p.m. Eastern rime. Please do not send any money, correspondence or notices to this office; send them to the mailing address.
mailing address	Our mailing address is 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499. All premium payments, loan repayments, correspondence and notices should be sent to this address.

The following information supplements information provided on pages 13 - 17 of the Prospectus under the heading “The Portfolios”

On November 1, 2005, two portfolios of the AEGON/Transamerica Series Trust changed their names. These portfolios did not change investment objectives, advisory fees or sub-advisers. The Clarion Real Estate Securities was renamed Clarion Global Real Estate Securities, and Van Kampen Emerging Growth was renamed Van Kampen Mid-Cap Growth. All references in your prospectus to the WRL Clarion Global Real Estate Securities subaccount should be read as WRL Clarion Global Real Estate Securities subaccount. All references in your prospectus to the WRL Van Kampen Emerging Growth subaccount should be read as WRL Van Kampen Mid-Cap Growth subaccount

Effective May 1, 2006, a new investment option will be available to you. The WRL International Moderate Growth Fund subaccount is sub-advised by Morningstar Associates, LLC. The Investment objective for this subaccount is to see capital appreciation with current income as a secondary objective.

The following information replaces the paragraph on page 11 of the Prospectus under the heading “Fee

Tables – Range of Expenses for the Portfolios.”

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. See the fund prospectuses for more information.

The following table shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2005. 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 prospectuses for each portfolio.

Range of Expenses for the Portfolios ^{1, 2}

	Minimum	Maximum
Total Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fee, and other expenses)	0.35%	1.09%
Net Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fee, and other expenses, after contractual waiver of fees and expenses)3	0.35%	1.09%

4 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, 2005. Current or future expenses may be greater or less than those shown.

5 The table showing the range of expenses for the portfolios takes into account the expenses of several Series Fund asset allocation portfolios that are a “fund of funds.” A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Series Fund portfolios. 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 combined actual expenses for each of the “fund of funds” and for the portfolios in which it invests, assuming a constant allocation by each “fund of funds” of its assets among the portfolio identical to its actual allocation at December 31, 2005

6 The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements of 3 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2006.

For additional information, you may contact us at 1-800-851-9777, extension 6539 from 8:30a.m. – 7:00p.m. Eastern Time. More information about AFSG, the principal underwriter for the Policies, is available at http:/www.nasdr.com or by calling 1-800-289-9999.

PLEASE RETAIN THIS WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED NOVEMBER 9, 2005 TO

PROSPECTUSES DATED:

WRL FREEDOM ELITE BUILDER (May 1, 2005)

WRL FREEDOM ELITE BUILDER II (May 1, 2005)

WRL FREEDOM ELITE (May 1, 2005)

WRL FREEDOM WEALTH PROTECTOR (May 1, 2005)

WRL FREEDOM EQUITY PROTECTOR (May 1, 2005)

WRL FINANCIAL FREEDOM BUILDER (May 1, 2005)

WRL XCELERATOR (May 1, 2005)

WRL FREEDOM ELITE ADVISOR (May 1, 2004)

WRL FREEDOM SP PLUS (May 1, 1994)

THE EQUITY PROTECTOR (May 1, 1989)

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following disclosure supplements the Prospectus regarding the WRL J.P. Morgan Mid Cap Value subaccount of the Series Fund:

Effective December 12, 2005, the WRL J.P. Morgan Mid Cap Value subaccount is closed to new investment. “Closed to new investment” means no one can allocate additional amounts (either through policy transfer or additional premium) to that subaccount after December 9, 2005.

If you have any amount in the WRL J.P. Morgan Mid Cap Value subaccount on December 12, 2005, you may do the following (subject to the terms and conditions contained in the prospectus):

• transfer amounts out of the WRL J.P. Morgan Mid Cap Value subaccount into other subaccounts;

• withdraw amounts from the WRL J.P. Morgan Mid Cap Value subaccount; and

• maintain your current investment in the WRL J.P. Morgan Mid Cap Value subaccount.

PLEASE NOTE: If you have given us allocation instructions for premium payments or other purposes (for example, dollar cost averaging or asset rebalancing) directing us to invest in the WRL J.P. Morgan Mid Cap Value subaccount, you need to provide us with new instructions for this allocation. Absent new allocation instructions, we will automatically allocate those monies into the WRL Transamerica Money Market subaccount until we receive new allocation instructions.

As always, the availability of any subaccount as an investment option, including the WRL J.P. Morgan Mid Cap Value subaccount, is subject to change. See the prospectus for more information concerning the addition, deletion or substitution of investments.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR PRODUCT PROSPECTUS

SUPPLEMENT DATED NOVEMBER 1, 2005 TO

PROSPECTUSES DATED:

WRL FREEDOM ELITE BUILDER (May 1, 2005)

WRL FREEDOM ELITE BUILDER II (May 1, 2005)

WRL FREEDOM ELITE (May 1, 2005)

WRL FREEDOM WEALTH PROTECTOR (May 1, 2005)

WRL FREEDOM EQUITY PROTECTOR (May 1, 2005)

WRL FINANCIAL FREEDOM BUILDER (May 1, 2005)

WRL XCELERATOR (May 1, 2005)

WRL FREEDOM ELITE ADVISOR (May 1, 2004)

WRL FREEDOM SP PLUS (May 1, 1994)

THE EQUITY PROTECTOR (May 1, 1989)

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following disclosure supplements the Prospectus:

On November 1, 2005, two portfolios of the AEGON/Transamerica Series Trust changed their names. These portfolios did not change sub-advisers, investment objectives or advisory fees. The Clarion Real Estate Securities was renamed Clarion Global Real Estate Securities, and Van Kampen Emerging Growth portfolio was renamed Van Kampen Mid-Cap Growth.

All references in your prospectus to the Clarion Real Estate Securities subaccount should be read as Clarion Global Real Estate Securities subaccount. All references in your prospectus to Van Kampen Emerging Growth subaccount should be read as Van Kampen Mid-Cap Growth subaccount.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR PRODUCT PROSPECTUS

AGO1264-11/05

SUPPLEMENT DATED MAY 25, 2005

TO PROSPECTUS DATED MAY 1, 2004

AS SUPPLEMENTED MAY 5, 2005

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following disclosure supplements the Prospectus:

On or about July 31, 2005, the Potomac Mid Cap Plus Portfolio, the Potomac OTC Plus Portfolio, the Potomac Small Cap Plus Portfolio, the Wells S&P REIT Index Portfolio, the Potomac U.S./Short Portfolio, the Potomac Dow 30 Plus Portfolio, and the Access U.S. Government Money Market Portfolio will be liquidated.

The decision to liquidate the Potomac Mid Cap Plus Portfolio, the Potomac U.S./Short Portfolio, and the Wells S&P REIT Index Portfolio was made by the Access Variable Insurance Trust (“AVIT”) Board of Trustees (“Board”) at a meeting held on April 12, 2005.

The decision to liquidate the Potomac OTC Plus Portfolio, the Potomac Small Cap Plus Portfolio, the Potomac Dow 30 Plus Portfolio, and the Access U.S. Government Money Market Portfolio was made by the AVIT Board at a meeting held May 11, 2005.

Some of the above-referenced Portfolios may not be available through your Policy.

PLEASE RETAIN THIS SUPPLEMENT WITH YOUR MAY 1, 2004 PRODUCT PROSPECTUS

SUPPLEMENT DATED MAY 5, 2005

TO PROSPECTUS DATED MAY 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

Issued through

WRL Series Life Account

By

Western Reserve Life Assurance Co. of Ohio

The following disclosures supplements the Prospectus:

The following subaccounts continue to be closed for investing:

Potomac Mid Cap Plus Subaccount

Wells S&P REIT Index Subaccount

Potomac U.S./Short Subaccount

However, effective May 4, 2005, the subaccounts listed below are available for investing, on a limited basis. The subaccounts are available only to owners currently invested in the one of these subaccounts and who have maintained funds in one of these subaccounts constantly since May 1, 2005. This means that, for those qualified, additional premiums and transfers among the AVIT subaccounts is permitted. Transfers out of any and all AVIT subaccounts to non-AVIT subaccounts is permitted. For transfers out of AVIT subaccounts of 100% can be done via standard United States Postal Service First Class Mail or on an expedited basis. However, transfers to the below listed AVIT subaccounts from non-AVIT subaccounts is not permitted unless there exists an investment in any AVIT subaccount. The AVIT subaccounts available, as described above, are as follows:

Potomac OTC Plus Subaccount

Potomac Small Cap Plus Subaccount

Potomac Dow 30 Plus Subaccount

Access U.S. Government Money Market Subaccount

PLEASE RETAIN THIS WITH YOUR MAY 1, 2005 PRODUCT PROSPECTUS

JANUS ANNUITY

WRL FREEDOM ACCESS®

WRL FREEDOM ACCESS® II

WRL FREEDOM ATTAINER®

WRL FREEDOM BELLWETHER®

WRL FREEDOM CONQUEROR®

WRL FREEDOM ENHANCER®

WRL FREEDOM ENHANCER® II

WRL FREEDOM PREMIER®

WRL FREEDOM PREMIER® II

WRL FREEDOM PREMIER III VARIABLE ANNUITY

WRL FREEDOM SELECT^SM

WRL FREEDOM VARIABLE ANNUITY

WRL FREEDOM WEALTH CREATOR®

FLEXIBLE PREMIUM VARIABLE ANNUITY – F

WRL FREEDOM ELITE BUILDER

WRL FREEDOM ELITE BUILDER II

WRL FREEDOM ELITE

WRL FREEDOM WEALTH PROTECTOR

WRL FREEDOM EQUITY PROTECTOR

WRL FINANCIAL FREEDOM BUILDER

WRL FREEDOM ELITE ADVISOR

WRL XCELERATOR

WRL FREEDOM SP PLUS

THE EQUITY PROTECTOR

ADVANTAGE IV

Issued by

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

Prospectus Supplement dated February 25, 2005

The following information supplements the section in the prospectus under “Legal Proceedings”:

There continues to be significant federal and state regulatory activity relating to financial services companies, including insurance companies that sell variable insurance products, as well as mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, and other compliance issues and matters affecting Western Reserve and certain affiliates of Western Reserve (such as Transamerica Fund Advisors, Inc. (the “Advisor”), the investment adviser for the AEGON/Transamerica Series Fund, Inc. (the “Series Fund”)), the SEC staff has indicated that it is likely to take some action against Western Reserve, the Advisor and certain of their affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against Western Reserve and/or its affiliates is difficult to assess at the present time, we currently believe that the likelihood that it will have a material adverse impact on us or the separate account is remote. Although it is not anticipated that these developments will have an adverse impact on the separate account, there can be no assurance at this time. Western Reserve and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. Western Reserve will take such actions that it deems necessary or appropriate to continue providing the necessary services to the separate account.

Western Reserve and/or its affiliates, and not the separate account or its policyowners or contract owners, will bear the costs regarding these regulatory matters.

AGO1196

P R O S P E C T U S

May 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

issued through

WRL Series Life Account

by

Western Reserve Life Assurance Co. of Ohio

570 Carillon Parkway

St. Petersburg, Florida 33716

1-800-851-9777

(727) 299-1800

AN INDIVIDUAL FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY

This prospectus describes the WRL Freedom Elite Advisor ^SM, 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 AEGON/Transamerica Series Fund, Inc. – Initial Class (the “Series Fund”), Access Variable Insurance Trust (“AVIT”) and the Fidelity Variable Insurance Products Fund – Service Class 2 (“Fidelity VIP Fund”), (collectively, the “funds”).

The portfolios of the Series Fund available to you under this Policy are:

¨	AEGON Bond	¨	MFS High Yield
¨	American Century International	¨	Munder Net50
¨	Asset Allocation – Conservative Portfolio	¨	PIMCO Total Return
¨	Asset Allocation – Growth Portfolio	¨	Salomon All Cap
¨	Asset Allocation – Moderate Growth	¨	Templeton Great Companies Global
¨	Asset Allocation – Moderate Portfolio	¨	Third Avenue Value
¨	Capital Guardian U.S. Equity	¨	Transamerica Balanced (formerly, Janus Balanced)
¨	Capital Guardian Value	¨	Transamerica Convertible Securities
¨	Clarion Real Estate Securities	¨	Transamerica Equity
¨	Federated Growth & Income	¨	Transamerica Growth Opportunities
¨	Great Companies – AmericaSM	¨	Transamerica Money Market
¨	Great Companies – TechnologySM	¨	Transamerica Small/Mid Cap Value
¨	Janus Growth	¨	Transamerica U.S. Government Securities
¨	J.P. Morgan Enhanced Index	¨	Transamerica Value Balanced
¨	J.P. Morgan Mid Cap Value (formerly, Dreyfus Mid Cap)	¨	T. Rowe Price Equity Income
¨	Marsico Growth	¨	T. Rowe Price Small Cap
¨	Mercury Large Cap Value	¨	Van Kampen Emerging Growth
	(formerly PBHG/NWQ Value Select)

The portfolios of the AVIT available to you under this Policy are:

¨	Potomac Dow 30 Plus Portfolio	¨	Potomac Small Cap Plus Portfolio	¨	Wells S&P REIT Index Portfolio
¨	Potomac OTC Plus Portfolio	¨	Potomac Mid Cap Plus Portfolio
¨	Potomac U.S./Short Portfolio	¨	Access U.S. Government Money Market Portfolio

The portfolio of the Fidelity VIP Fund available to you under this Policy is:

¨ Fidelity VIP Index 500 Portfolio

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 this prospectus. And 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 this 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 this 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.

Table of Contents

Policy Benefits/Risks Summary	1
Policy Benefits	1
The Policy in General	1
Flexible Premiums	1
Variable Death Benefit	1
No Lapse Guarantee	2
Cash Value	2
Transfers	2
Loans	3
Cash Withdrawals and Surrenders	3
Tax Benefits	3
Policy Risks	3
Risk of an Increase in Current Fees and Expenses	3
Investment Risks	4
Risk of Lapse	4
Tax Risks (Income Tax and MEC)	4
Loan Risks	5
Portfolio Risks	5
Fee Tables	5
Range of Expenses for the Portfolios	11
Western Reserve, The Separate Account, the Fixed Account and the Portfolios	11
Western Reserve	11
The Separate Account	12
The Fixed Account	12
The Portfolios	13
Addition, Deletion, or Substitution of Investments	18
Your Right to Vote Portfolio Shares	18
Charges and Deductions	18
Premium Charge	19
Monthly Deduction	19
Mortality and Expense Risk Charge	21
Transfer Charge	21
Loan Interest Charge	21
Change in Net Premium Allocation Charge	22
Cash Withdrawal Charge	22
Taxes	22
Rider Charges	22
Portfolio Expenses	22
The Policy	23
Ownership Rights	23
Modifying the Policy	23
Purchasing a Policy	23
Tax-Free “Section 1035” Exchanges	24
When Insurance Coverage Takes Effect	24
Backdating a Policy	26
Policy Features	26
Premiums	26
Allocating Premiums	26
Premium Flexibility	27
Planned Periodic Payments	27
Minimum Monthly Guarantee Premium	27

This Policy is not available in the State of New York.

i

No Lapse Period	28
Premium Limitations	28
Making Premium Payments	28
Transfers	28
General	28
Fixed Account Transfers	31
Conversion Rights	32
Dollar Cost Averaging	32
Asset Rebalancing Program	32
Third Party Asset Allocation Services	33
Policy Values	33
Cash Value	33
Net Surrender Value	34
Subaccount Value	34
Subaccount Unit Value	34
Fixed Account Value	35
Death Benefit	35
Death Benefit Proceeds	35
Death Benefit	36
Effect of Cash Withdrawals on the Death Benefit	38
Choosing Death Benefit Options	38
Changing the Death Benefit Option	38
Decreasing the Specified Amount	38
Payment Options	39
Surrenders and Cash Withdrawals	39
Surrenders	39
Cash Withdrawals	39
Canceling a Policy	40
Loans	40
General	40
Interest Rate Charged	41
Loan Reserve Interest Rate Credited	42
Effect of Policy Loans	42
Policy Lapse and Reinstatement	42
Lapse	42
No Lapse Period	42
Reinstatement	43
Federal Income Tax Considerations	43
Tax Status of the Policy	43
Tax Treatment of Policy Benefits	44
Other Policy Information	46
Benefits at Maturity	46
Payments We Make	47
Split Dollar Arrangements	47
Policy Termination	48
Supplemental Benefits (Riders)	48
Children’s Insurance Rider	48
Accidental Death Benefit Rider	48
Other Insured Rider	49
Disability Waiver Rider	49
Disability Waiver and Income Rider	50
Primary Insured Rider (“PIR”) and Primary Insured Rider Plus (“PIR Plus”)	50
Living Benefit Rider (an Accelerated Death Benefit)	51
Additional Information	52
Sale of the Policies	52

ii

Legal Proceedings	52
Financial Statements	52
Performance Data	52
Rates of Return	52
Table of Contents of the Statement of Additional Information	55
Glossary	57
Appendix A – Premium Expense Level Per Thousand (Based on the gender and rate class of the insured)	60
Appendix B – Illustrations	62
Prospectus Back Cover	65
Personalized Illustrations of Policy Benefits	65
Inquiries	65

iii

Policy Benefits/Risks Summary WRL Freedom Elite Advisor^SM

This summary describes the Policy’s 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 Elite Advisor^SM is an individual flexible premium variable life insurance policy. The Policy gives you the potential for long-term life insurance coverage with the opportunity for tax-deferred cash value accumulation. 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 we deduct, the interest we credit to the fixed account, and the effects of any Policy transactions (such as transfers, loans and partial withdrawals).

• The Policy is designed to be long-term in nature in order to provide significant life insurance benefits for you. However, purchasing this Policy involves certain risks. You should purchase the Policy only if you have the financial ability to keep it in force for a substantial period of time. You should consider the Policy in conjunction with other insurance you own. The Policy is not suitable as a short-term savings vehicle. There may be adverse consequences should you decide to surrender your Policy early, such as possible federal income taxes and tax penalties.

• Fixed Account. You may place money in the fixed account where it earns at least 3% annual interest. We may declare higher rates of interest, but are not obligated to do so. 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.

• Separate Account. You may direct the money in your Policy to any of the subaccounts of the separate account. Each subaccount invests exclusively in one of the portfolios listed on the cover of this prospectus. Money you place in a subaccount is subject to investment risk and its value will vary each day according to the investment performance of the portfolios in which the subaccounts invest.

• Supplemental Benefits (Riders). Supplemental riders are available under the Policy. We deduct charges for these riders from cash value as part of the monthly deduction. These riders may not be available in all states.

Flexible Premiums

• You select a premium payment plan but the plan is flexible – you are not required to pay premiums according to the plan. You can change the frequency and amount, within limits, and can skip premium payments. Unplanned premiums may be made, within limits. Premium payments must be at least $50.

• You increase your risk of lapse if you do not regularly pay premiums at least as large as the current minimum monthly guarantee premium. Under certain circumstances, extra premiums may be required to prevent lapse.

• Once we deliver your Policy, the free-look period begins. You may return the Policy during this period and receive a refund. Depending on the laws of the state governing your Policy (usually the state where you live), we will either allocate your net premium to the accounts you indicated on your application, or we will place your net premium in the reallocation account until the reallocation date as shown on your Policy schedule page.

Variable Death Benefit

• If the insured dies while the Policy is in force, we will pay a death benefit to the beneficiary(ies). The amount of the death benefit depends on the specified amount of insurance you select, the death benefit option you chose, and any additional insurance provided by riders you purchase.

• Choice Among Death Benefit Options. You must choose one of three death benefit options. We offer the following:

• Option A is the greater of:

g the current specified amount, or

g a specified percentage, multiplied by the Policy’s cash value on the date of the insured’s death.

1

• Option B is the greater of:

g the current specified amount, plus the Policy’s cash value on the date of the insured’s death, or

g a specified percentage, multiplied by the Policy’s cash value on the date of the insured’s death.

• Option C is the greater of:

g the amount payable under Option A, or

g the current specified amount, multiplied by an age-based “factor,” plus the Policy’s cash value on the date of the insured’s death.

We will reduce the death benefit proceeds by any outstanding loan amount, including accrued interest, and any due and unpaid charges. We will increase the death benefit proceeds by any additional insurance benefits you add by rider.

• Under current tax law, the death benefit should generally be U.S. federal income tax free to the beneficiary. Other taxes, such as estate taxes, may apply.

• Change in Death Benefit Option and Specified Amount. After the third Policy year and once each Policy year thereafter, you may make one of the following changes: change the death benefit option or decrease the specified amount. We reserve the right to limit any decrease in specified amount to no more than 20% of the specified amount prior to the decrease. The new specified amount cannot be less than the minimum specified amount as shown in your Policy.

No Lapse Guarantee

• We guarantee that your Policy will not lapse until the no lapse date shown on your Policy schedule page, so long as on any Monthiversary you have paid total premiums (minus any cash withdrawals, minus any outstanding loan amount and minus any accrued loan interest) that equal or exceed the sum of the minimum monthly guarantee premiums in effect for each month since the Policy date up to and including the current month. If you take a cash withdrawal or a loan, or if you 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 guarantee in place.

Cash Value

• Cash value is the starting point for calculating important values under the Policy, such as net surrender value and the death benefit. There is no guaranteed minimum cash value. The Policy may lapse if you do not have sufficient cash value in the Policy to pay the monthly deductions and/or any outstanding loan amount(s) and accrued loan interest.

• The Policy will not lapse during the no lapse period so long as you have paid sufficient premiums.

Transfers

• You can transfer cash value among the subaccounts and the fixed account. You may make transfers in writing, by telephone, by fax or electronically through our website.

• We charge a $25 transfer processing fee for each transfer after the first 12 transfers in a Policy year.

• Dollar cost averaging and asset rebalancing programs are available.

• Unless you select dollar cost averaging from the fixed account, the Policy allows transfers from the fixed account only during the 30 days following each Policy anniversary. During this period, the Policy allows transfer of the greater of up to 25% of the amount in the fixed account, or the amount transferred in the previous Policy year. Currently, we allow you to transfer at any one time during a Policy year up to 100% of the fixed account value from the fixed account. If we modify or stop this current practice, we will notify you.

• Transfers between any AVIT subaccount and any Series Fund or Fidelity VIP Fund subaccount will be processed only if you send us a written request through standard United States postal First Class mail delivery, with an original signature authorizing each transfer.

• Unless otherwise required by state law, we may restrict transfers to the fixed account, if the fixed account value following the transfer would exceed $100,000.

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• Transfers resulting from loans or the exercise of conversion rights, or due to reallocation of cash value immediately after the reallocation date are currently not treated as transfers for the purpose of the transfer charge.

• Transfers via the Internet are not treated as transfers for the purpose of the transfer charge.

Loans

• After the first Policy year (as long as your Policy is in force), you may take a loan against the Policy up to 90% of the cash value minus any outstanding loan amount, including accrued interest. We may permit a loan prior to the first anniversary for Policies issued pursuant to 1035 Exchanges. The minimum loan amount is generally $500.

• Prior to the 11^th Policy year, we currently charge 3.75% interest annually, payable in arrears, on any outstanding loan amount. This charge is guaranteed not to exceed 4.0%. Interest not paid when due is added to the amount of the loan to be repaid.

• To secure the loan, we transfer an amount equal to your loan from your cash value to a loan reserve account. The loan reserve account is part of the fixed account. We will credit 3.0% interest annually on amounts in the loan reserve account.

• After the 10^th Policy year, you may borrow at preferred loan rates an amount equal to the cash value minus total premiums paid (reduced by any cash withdrawals), minus any outstanding loan amount and minus any accrued loan interest. We currently charge 3.0% interest on preferred loans. This charge is guaranteed not to exceed 4.0%.

• Federal income taxes and a penalty tax may apply to loans you take against the Policy. The federal tax consequence of loans with preferred rates is uncertain and may have adverse tax consequences.

Cash Withdrawals and Surrenders

• You may take one withdrawal of cash value per Policy year after the first Policy year. The amount of the withdrawal may be limited to:

g at least $500 and the remaining net surrender value following a withdrawal may not be less than $500.

• We will deduct a processing fee equal to $25 or 2% of the amount you withdraw (whichever is less) from the withdrawal, and we will pay you the balance.

• A cash withdrawal will reduce the death benefit by at least the amount of the withdrawal.

• You may fully surrender the Policy at any time before the insured’s death or the maturity date. Life insurance coverage will end. You will receive the net surrender value (cash value minus any outstanding loan amount and accrued loan interest). There are no surrender charges on this Policy.

• A cash withdrawal will reduce the cash value, so it will increase the risk that the Policy will lapse. A cash withdrawal may also increase the risk that the no lapse guarantee will not remain in effect.

• Federal income taxes and a penalty tax may apply to cash withdrawals and surrenders.

Tax Benefits

We intend for the Policy to satisfy the definition of life insurance under the Internal Revenue Code so that the death benefit generally should be excludible from the taxable income of the beneficiary. In addition if the Policy is a Modified Endowment Contract (“MEC”), you should not be deemed to be in receipt of any taxable gains on cash value until you take a withdrawal, surrender the Policy, or we pay the maturity benefit. Moreover, transfers between the subaccounts are not taxable transactions.

Policy Risks

Risk of an Increase in Current Fees and Expenses

Certain fees and expenses currently are assessed at less than their guaranteed maximum levels. In the future, we may increase these current charges up to the guaranteed (that is, maximum) levels. If fees and expenses are increased, you may need to increase the amount and/or frequency of premiums to keep the Policy in force.

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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. In addition, 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 3%.

Risk of Lapse

If your Policy fails to meet certain conditions, we will notify you that the Policy has entered a 61-day grace period and will lapse without value unless you make a sufficient payment during the grace period.

Your Policy contains a no lapse period. Your Policy will not lapse before the no lapse date stated in your Policy, as long as you pay sufficient minimum guarantee premiums. If you do not pay sufficient premiums, you will automatically lose the no lapse guarantee and you will increase the risk that your Policy will lapse.

If you take a cash withdrawal or Policy loan, if you decrease the specified amount, or if you add, increase or decrease a rider, you will increase the risk of losing the no lapse guarantee. We deduct the total amount of your withdrawals and any outstanding loan amount, including accrued loan interest, from your premiums paid when we determine whether your premium payments are high enough to keep the no lapse period in effect.

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

After the no lapse period, your Policy may lapse if loans, cash withdrawals, the monthly deductions, and insufficient investment returns reduce the net surrender value to zero. The Policy will enter a grace period if on any Monthiversary the net surrender value (that is, the cash value minus any outstanding loan amount and accrued loan interest) is not enough to pay the monthly deduction due.

A Policy lapse may have adverse tax consequences.

You may reinstate this Policy within five years after it has lapsed (and prior to the maturity date), if the insured meets the insurability requirements and you pay the amount we require.

Tax Risks (Income Tax and MEC)

We expect that the Policy will generally be deemed a life insurance contract under federal tax law, and that the death benefit paid to the beneficiary will generally not be subject to federal income tax.

Depending on the total amount of premiums you pay, the Policy may be treated as a modified endowment contract (“MEC”) under federal tax laws. If a Policy is treated as a MEC, partial withdrawals, surrenders, pledges and loans will be taxable as ordinary income to the extent there are earnings in the Policy. In addition, a 10% penalty tax may be imposed on the taxable portion of cash withdrawals, surrenders, pledges and loans taken before you reach age 59  ¹⁄₂. If a Policy is not treated as a MEC, partial surrenders and withdrawals will not be subject to tax to the extent of your investment in the Policy. Amounts in excess of your investment in the Policy, while subject to tax as ordinary income, will not be subject to a 10% penalty tax. You should consult a qualified tax advisor for assistance in all tax matters involving your Policy.

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Loan Risks

A Policy loan, whether or not repaid, will affect cash value over time because we subtract the amount of the loan from the subaccounts and the fixed account and place that amount in the loan reserve as collateral. We then credit a fixed interest rate of 3.0% to the loan collateral. As a result, the loan collateral does not participate in the investment results of the subaccounts and may not continue to receive the current interest rates credited to the unloaned portion of the fixed account. The longer the loan is outstanding, the greater the effect is likely to be. Depending on the investment results of the subaccounts and the interest rates credited to the fixed account, the effect could be favorable or unfavorable.

We also currently charge interest on Policy loans at a rate of 3.75%, payable in arrears. This charge will not exceed 4.0%. Interest is added to the amount of the loan to be repaid.

A Policy loan could make it more likely that a Policy would lapse. A Policy loan will increase the risk that the no lapse period will not remain in effect. There is also a risk that if the loan, insurance charges and unfavorable investment experience reduce your net surrender value and the no lapse period is no longer in effect, then the Policy will lapse. Adverse tax consequences may result.

If the Policy lapses or is surrendered while a loan is outstanding, you will realize taxable income equal to the lesser of the gain in the Policy or the sum of the excess of the loan balance (including accrued interest) and any cash received on surrender over your basis in the Policy. If the Policy is a MEC or becomes a MEC within two years of taking a loan, the amount of the outstanding indebtedness will be taxed as if it were a withdrawal from the Policy.

If the Policy lapses or terminates due to volatility in the investment performance of the underlying portfolios or another reason, you may incur tax consequences at an unexpected time.

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 of the portfolios will achieve its stated investment objective.

Fee Tables

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

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

Transaction Fees
		Amount Deducted
Charge	When Charge is	Guaranteed	Current
	Deducted	Charge	Charge
Premium Charge Premium Expense Charge	Upon payment of each premium	Policy years 1-10 – 10.0% of cumulative premiums paid in a Policy year up to the premium expense level;1 and 3.0% of premiums in excess of the premium expense level1	Policy years 1-10 – 10.0% of cumulative premiums paid in a Policy year up to the premium expense level1; and 3.0% of premiums in excess of the premium expense level1
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
Transfer Charge3	Upon transfer	$25 for each transfer in excess of 12 per Policy year	$25 for each transfer in excess of 12 per Policy year
Change in Net Premium Allocation Charge	Upon change of allocation instructions for premium payments	$25	None

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
		Amount Deducted
Charge	When Charge is	Guaranteed	Current
	Deducted	Charge	Charge
Monthly Policy Charge	Monthly, on the Policy date and on each Monthiversary	$10.00 per month	$7.00 per month

¹ The premium expense level is set on the Policy date and is based on an insured’s issue age, gender and underwriting class. In Policy years 11+, the premium expense charge is equal to 3.0% on all premiums paid.

² When we incur the expense of expedited delivery of your partial withdrawal or complete surrender payment, we will assess the following charges: $20 for overnight delivery ($30 for Saturday delivery); and $25 for wire service.

³ The first 12 transfers per Policy year are free.

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Periodic Charges Other Than Portfolio Operating Expenses
		Amount Deducted
Charge	When Charge is Deducted	Guaranteed Charge	Current Charge
Cost of Insurance4 (Without Extra Ratings5)	Monthly, on the Policy date and on each Monthiversary until the insured reaches age 100
¿  Minimum Charge6		$0.06 per $1,000 of net amount at risk per month7	$0.05 per $1,000 of net amount at risk per month7
¿  Maximum Charge8		$83.33 per $1,000 of net amount at risk per month7	$47.45 per $1,000 of net amount at risk per month7
¿  Initial charge for a male insured, issue age 30, in the ultimate select non-tobacco use class		$0.12 per $1,000 of net amount at risk per month7	$0.11 per $1,000 of net amount at risk per month7
Mortality and Expense Risk Charge	Daily	Annual rate of 0.90% of daily net assets of each subaccount in which you are invested	Annual rate of 0.90% for Policy years 1-15, and 0.75% for Policy years 16+ of daily net assets of each subaccount in which you are invested
Loan Interest Spread9	On Policy Anniversary or earlier as applicable10	1.0% (effective annual rate)	0.75% (effective annual rate)
Optional Rider Charges:11

⁴ Cost of insurance charges are based on the insured’s issue age, gender, underwriting class, 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 charge applicable to your Policy. You can obtain more information about your cost of insurance charges by contacting your agent.

⁵ We may place an insured in a sub-standard underwriting class 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 of up to $83.33 monthly per $1,000 of net amount at risk.

⁶ This minimum charge is based on an insured with the following characteristics: Female, age 10 at issue, juvenile class and in the first Policy year. This minimum charge may also apply to insureds with other characteristics.

⁷ The net amount at risk equals the death benefit on a Monthiversary, divided by 1.0024663, minus the cash value on such Monthiversary.

⁸ This maximum charge is based on an insured with the following characteristics: Male, age 85 at issue, standard tobacco underwriting class and in the 15th Policy year. This maximum charge may also apply to insureds with other characteristics.

⁹ The Loan Interest Spread is the difference between the amount of interest we charge you for a loan (currently, an effective annual rate of 3.75%, guaranteed not to exceed 4.0%) and the amount of interest we credit to your loan reserve account (an effective annual rate of 3.0%, guaranteed).

¹⁰ While a Policy loan is outstanding, loan interest is payable in arrears on each Policy anniversary, or, if earlier, on the date of loan repayment, Policy lapse, surrender, Policy termination, or the insured’s death.

¹¹ Optional rider cost of insurance charges are based on the insured’s attained age, gender, and rider’s face amount. The rider charges 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 for these riders applicable to your Policy. You can obtain more information about these rider charges by contacting your agent.

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Periodic Charges Other Than Portfolio Operating Expenses
		Amount Deducted
Charge	When Charge is Deducted	Guaranteed Charge	Current Charge
Accidental Death Benefit Rider	Monthly, on the Policy date and on each Monthiversary until the insured reaches age 70
¿  Minimum Charge12		$0.10 per $1,000 of rider face amount per month	$0.10 per $1,000 of rider face amount per month
¿  Maximum Charge13		$0.18 per $1,000 of rider face amount per month	$0.18 per $1,000 of rider face amount per month
¿  Initial charge for a male insured, issue age 30		$0.10 per $1,000 of rider face amount per month	$0.10 per $1,000 of rider face amount per month
Disability Waiver Rider14	Monthly, on the Policy date and on each Monthiversary until the insured reaches age 60
¿  Minimum Charge15		$0.03 per $1,000 of base Policy specified amount per month	$0.03 per $1,000 of base Policy specified amount per month
¿  Maximum Charge16		$0.39 per $1,000 of base Policy specified amount per month	$0.39 per $1,000 of base Policy specified amount per month
¿  Initial charge for a male insured, issue age 30		$0.04 per $1,000 of base Policy specified amount per month	$0.04 per $1,000 of base policy specified amount per month

¹² This minimum charge is based on an insured with the following characteristics: Male, age 45 at issue and in the first Policy year. This minimum charge may also apply to insureds with other characteristics.

¹³ This maximum charge is based on an insured with the following characteristics: Male, age 50 at issue standard tobacco underwriting class and in the 20^th Policy year. This maximum charge may also apply to insureds with other characteristics.

¹⁴ Disability Waiver charges are based on the base insured’s issue age, gender and face amount. 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 doe 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 detailed information concerning your cost of insurance charges by contacting your agent.

¹⁵ 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.

¹⁶ 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.

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Periodic Charges Other Than Portfolio Operating Expenses
		Amount Deducted
Charge	When Charge is Deducted	Guaranteed Charge	Current Charge
Disability Waiver and Income Rider17	Monthly, on the Policy date and on each Monthiversary until the insured reaches age 60
¿  Minimum Charge18		$0.20 per $1,000 monthly rider units	$0.20 per $1,000 monthly rider units
¿  Maximum Charge19		$0.86 per $1,000 monthly rider units	$0.86 per $1,000 monthly rider units
¿  Initial charge for a male insured, issue age 30		$0.23 per $1,000 monthly rider units	$0.23 per $1,000 monthly rider units
Children’s Insurance Rider20	Monthly, on 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 Rider21 (Without Extra Ratings22)	Monthly on Policy date and on each Monthiversary until the insured reaches age 100
¿  Minimum Charge23		$0.06 per $1,000 of rider face amount per month	$0.06 per $1,000 of rider face amount per month
¿  Maximum Charge24		$83.33 per $1,000 of rider face amount per month	$70.83 per $1,000 of rider face amount per month

¹⁷ The charge for this rider is based on the base insured’s issue age, gender and number of units of monthly disability income selected.

¹⁸ 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.

¹⁹ 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.

²⁰ The charge for this rider is based on the rider face amount and does not vary.

²¹ Rider cost of insurance charges are based on each insured’s issue age, gender, underwriting class, Policy year, and the rider face amount. 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 agent.

²² We may place an insured in a sub-standard underwriting class 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 of up to $83.33 monthly per $1,000 of net amount at risk.

²³ This minimum charge is based on an insured with the following characteristics: Female, age 10 at issue, juvenile class and in the first Policy year. This minimum charge may also apply to insureds with other characteristics.

²⁴ This maximum charge is based on an insured with the following characteristics: Male, age 85 at issue standard tobacco underwriting class and in the 15^th Policy year. This maximum charge may also apply to insureds with other characteristics.

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Periodic Charges Other Than Portfolio Operating Expenses
		Amount Deducted
Charge	When Charge is Deducted	Guaranteed Charge	Current Charge
Other Insured Rider (continued)
¿  Initial charge for a male insured, issue age 30, in the ultimate select non-tobacco use class		$0.12 per $1,000 of rider face amount per month	$0.12 per $1,000 of rider face amount per month
Primary Insured Rider21 (Without Extra Ratings22)	Monthly, on Policy date and on each Monthiversary until the insured reaches age 95
¿  Minimum Charge23		$0.06 per $1,000 of rider face amount per month	$0.05 per $1,000 of rider face amount per month
¿  Maximum Charge25		$24.86 per $1,000 of rider face amount per month	$20.06 per $1,000 of rider face amount per month
¿  Initial charge for a male insured, issue age 30, in the ultimate select non-tobacco use class		$0.12 per $1,000 of rider face amount per month	$0.10 per $1,000 of rider face amount per month
Primary Insured Plus Rider26 (Without Extra Ratings27)	Monthly, on Policy date and on each Monthiversary until the insured reaches age 90
¿  Minimum Charge		$0.08 per $1,000 of rider face amount per month28	$0.03 per $1,000 of rider face amount per month29
¿  Maximum Charge		$18.46 per $1,000 of rider face amount per month30	$14.91 per $1,000 of rider face amount per month31

²⁵ This maximum charge is based on an insured with the following characteristics: Male, age 85 at issue standard tobacco underwriting class and in the 10^th Policy year. This maximum charge may also apply to insureds with other characteristics.

²⁶ Rider cost of insurance charges are based on each insured’s issue age, gender, underwriting class, Policy year, and the rider face amount. 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 agent.

²⁷ We may place an insured in a sub-standard underwriting class 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 of up to $83.33 monthly per $1,000 of net amount at risk.

²⁸ This minimum charge is based on an insured with the following characteristics: Female, age 18 at issue, ultimate select non-tobacco use class and in the first Policy year. This minimum charge may also apply to insureds with other characteristics.

²⁹ This minimum charge is based on an insured with the following characteristics: Female, age 29 at issue, ultimate select non-tobacco use class, first Policy year and a band 2 rider face amount of $1,000,000 or above. This minimum charge may also apply to insureds with other characteristics.

³⁰ This maximum charge is based on an insured with the following characteristics: Male, age 85 at issue, standard tobacco use class and in the 5^th Policy year. This maximum charge may also apply to insureds with other characteristics.

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Periodic Charges Other Than Portfolio Operating Expenses
		Amount Deducted
Charge	When Charge is Deducted	Guaranteed Charge	Current Charge
Primary Insured Plus Rider (continued)
¿  Initial charge for a male insured, issue age 30, in the ultimate select non-tobacco use class, band 1		$0.12 per $1,000 of rider face amount per month	$0.06 per $1,000 of rider face amount per month
Living Benefit Rider	When rider is exercised	Discount factor32	Discount factor32

Range of Expenses for the Portfolios^{1 2}

The next table shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2003. 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.

	Minimum	Maximum
Total Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fees, and other expenses)	0.38%	1.50%
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	0.38%	1.45%

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, 2003. Current or future expenses may be greater or less than those shown.

² The table showing the range of expenses for the portfolios takes into account the expenses of several Series Fund asset allocation portfolios that are “funds of funds.” A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Series Fund portfolios. 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 combined actual expenses for each of the “fund of funds” and for the portfolios in which it invests, assuming a constant allocation by each “fund of funds” of its assets among the portfolios identical to its actual allocation at December 31, 2003.

³ The range of Net Annual Portfolio Operating Expenses take into account contractual arrangements of 8 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April  30, 2005.

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.

³¹ This maximum charge is based on an insured with the following characteristics: Male, age 74 at issue, standard tobacco use class, 16^th Policy year and a band 1 rider face amount of less than $1,000,000. This maximum charge may also apply to insureds with other characteristics.

³² 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.

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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 combined or new subaccounts available to you at our discretion;

• Substitute shares of another registered open-end management company, which may have different fees and expenses, for shares of a subaccount at our discretion;

• Close subaccounts to allocations of new premiums by existing or new Policyowners at any time in our discretion;

• Transfer assets supporting the Policies from one subaccount to another or from the separate account to another separate account;

• Combine the separate account with other separate accounts, and/or create new separate accounts;

• Deregister the separate account under the 1940 Act, or operate the separate account as a management investment company under the 1940 Act, or as any other form permitted by law; and

• Modify the provisions of the Policy to reflect changes to the subaccounts and the separate account and to comply with applicable law.

Some, but not all, of these future changes, may be the result of changes in applicable laws or interpretation of the law.

The portfolios, which sell their shares to the subaccounts, may discontinue offering their shares to the subaccounts. 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.

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. 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 3.0%. 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 nor any duration for such rates.

Money you place in the fixed account will earn interest compounded daily at a current interest rate in effect at the time of your allocation. Unless otherwise required by state law, we may restrict your allocations and transfers to the fixed account if the fixed account value (excluding amounts in the loan reserve account) following the allocation or transfer would exceed $100,000. We may declare current interest rates from time to time. We may

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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 higher current interest 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 3.0% during any guarantee period at our sole discretion. You bear the risk that interest we credit will not exceed 3.0%.

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

New Jersey: If your Policy was issued in the State of New Jersey, the fixed account is not available to you. You may not direct or transfer any premium payments or cash value to the fixed account. The fixed account is used solely for 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.

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 prior 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 any of the portfolios 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.

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 1-800-851-9777 or visiting our website at www.westernreserve.com. You should read the fund prospectuses carefully.

Portfolio	Sub-Adviser or Adviser and Investment Objective
Munder Net50	Munder Capital Management Seeks long-term capital appreciation.
Van Kampen Emerging Growth	Van Kampen Asset Management Inc. Seeks capital appreciation.
T. Rowe Price Small Cap	T. Rowe Price Associates, Inc. Seeks long-term growth of capital by investing primarily in common stocks of small growth companies.

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Portfolio	Sub-Adviser or Adviser and Investment Objective
Third Avenue Value	Third Avenue Management LLC Seeks long-term capital appreciation.
American Century International	American Century Investment Management, Inc. Seeks capital growth.
Templeton Great Companies Global	Templeton Management, Ltd. Great Companies, L.L.C. Seeks long-term growth of capital in a manner consistent with the preservation of capital.
Great Companies—TechnologySM	Great Companies, L.L.C. Seeks long-term growth of capital.
Janus Growth	Janus Capital Management LLC Seeks growth of capital.
Marsico Growth	Banc of America Capital Management, LLC Seeks long-term growth of capital.
Great Companies—AmericaSM	Great Companies, L.L.C. Seeks long-term growth of capital.
Salomon All Cap	Salomon Brothers Asset Management Inc Seeks capital appreciation.
T. Rowe Price Equity Income	T. Rowe Price Associates, Inc. Seeks to provide substantial dividend income, as well as long-term growth of capital by primarily investing in the dividend-paying common stocks of established companies.
Transamerica Value Balanced	Transamerica Investment Management, LLC Seeks preservation of capital and competitive investment returns.
Clarion Real Estate Securities	ING Clarion Real Estate Securities Seeks long-term total return from investments primarily in equity securities of real estate companies.
Federated Growth & Income	Federated Investment Counseling Seeks total return by investing in securities that have defensive characteristics.
AEGON Bond	Banc One Investment Advisors Corp. Seeks the highest possible current income within the confines of the primary goal of insuring the protection of capital.

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Portfolio	Sub-Adviser or Adviser and Investment Objective
Transamerica Money Market	Transamerica Investment Management, LLC Seeks to provide maximum current income consistent with preservation of principal and maintenance of liquidity.
Asset Allocation - Conservative Portfolio*	AEGON/Transamerica Fund Advisers, Inc. Seeks current income and preservation of capital.
Asset Allocation - Moderate Portfolio*	AEGON/Transamerica Fund Advisers, Inc. Seeks capital appreciation.
Asset Allocation - Moderate Growth Portfolio*	AEGON/Transamerica Fund Advisers, Inc. Seeks capital appreciation.
Asset Allocation - Growth Portfolio*	AEGON/Transamerica Fund Advisers, Inc. Seeks capital appreciation and current income.
Transamerica Convertible Securities	Transamerica Investment Management, LLC Seeks maximum total return through a combination of current income and capital appreciation.
PIMCO Total Return	Pacific Investment Management Company, LLC Seeks maximum total return consistent with preservation of capital and prudent investment management.
Transamerica Equity	Transamerica Investment Management, LLC Seeks to maximize long-term growth.
Transamerica Growth Opportunities	Transamerica Investment Management, LLC Seeks to maximize long-term growth.
Transamerica U.S. Government Securities	Transamerica Investment Management, LLC Seeks to provide as high a level of total return as is consistent with prudent investment strategies by investing under normal conditions at least 80% of its assets in U.S. government debt obligations and mortgage-backed securities issued or guaranteed by the U.S. government, its agencies or government-sponsored entities.
J.P. Morgan Enhanced Index	J.P. Morgan Investment Management Inc. Seeks to earn a total return modestly in excess of the total return performance of the S&P 500 Index (including the reinvestment of dividends) while maintaining a volatility of return similar to the S&P 500 Index.
J.P. Morgan Mid Cap Value	J.P. Morgan Investment Management Inc. Seeks growth from capital appreciation.

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Portfolio	Sub-Adviser or Adviser and Investment Objective
Mercury Large Cap Value	Mercury Advisors Seeks to achieve superior long-term performance with below average volatility relative to the Russell 1000 Value Index.
Transamerica Balanced	Transamerica Investment Management, LLC Seeks to achieve long-term capital growth and current income with a secondary objective of capital preservation, by balancing investments among stocks, bonds, and cash or cash equivalents.
Capital Guardian Value	Capital Guardian Trust Company Seeks to provide long-term growth of capital and income through investments in a portfolio comprised primarily of equity securities of U.S. issuers and securities whose principal markets are in the U.S. (including American Depositary Receipts) and other U.S. registered foreign securities.
Capital Guardian U.S. Equity	Capital Guardian Trust Company Seeks to provide long-term growth of capital.
MFS High Yield	Massachusetts Financial Services Company Seeks to provide high current income by investing primarily in a professionally managed diversified portfolio of fixed income securities, some of which may involve equity features.
Transamerica Small/Mid Cap Value	Transamerica Investment Management, LLC Seeks to maximize total return.
Potomac Dow 30 Plus Portfolio**	Rafferty Asset Management, LLC Seeks daily investment results that correspond to 125% of the performance of the Dow Jones Industrial AverageSM.
Potomac OTC Plus Portfolio**	Rafferty Asset Management, LLC Seeks to provide investment returns that correspond to 125% of the performance of the Nasdaq 100 IndexTM.
Access U.S. Government Money Market Portfolio**	Rafferty Asset Management, LLC Seeks to provide security of principal, current income and liquidity.
Wells S&P REIT Index Portfolio**	Wells Asset Management, Inc. Seeks to provide investment results corresponding to the performance of the S&P Real Estate Investment Trust Composite Index.

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Portfolio	Sub-Adviser or Adviser and Investment Objective
Potomac Mid Cap Plus Portfolio**	Rafferty Asset Management, LLC Seeks to provide investment returns that correspond to 125% of the performance of the Standard & Poor’s 400 Mid Cap IndexTM.
Potomac Small Cap Plus Portfolio**	Rafferty Asset Management, LLC Seeks to provide investment returns that correspond to 125% of the performance of the Russell 2000® Index.
Potomac U.S./Short Portfolio**	Rafferty Asset Management, LLC Seeks to provide investment returns that inversely correspond (opposite) to the performance of the Standard & Poor’s 500 Composite Stock Price IndexTM.
Fidelity VIP Index 500 Portfolio – Service Class 2 Shares	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.

* Each asset allocation portfolio invests in a combination of underlying Series Fund portfolios.

** The AVIT portfolios allow market timing / frequent transfers. Market timing may increase portfolio expenses and have other adverse consequences for long-term investors. See “Disruptive Trading and Market Timing”. Some AVIT portfolios may use investment techniques not associated with most mutual fund portfolios. Investors in those AVIT portfolios will bear additional investment risks. See the AVIT fund prospectus for a description of the investment objectives and risks associated with investing in the AVIT portfolios.

AEGON/Transamerica Fund Advisers, Inc. (“AEGON/Transamerica Advisers”), located at 570 Carillon Parkway, St. Petersburg, Florida 33716, is directly owned by Western Reserve (78%) and AUSA Holding Company (22%), serves as investment adviser to the Series Fund and manages the Series Fund in accordance with policies and guidelines established by the Series Fund’s Board of Directors. For certain portfolios, AEGON/Transamerica Advisers has engaged investment sub-advisers to provide portfolio management services. AEGON/Transamerica Advisers and each investment sub-adviser are registered investment advisers under the Investment Advisers Act of 1940, as amended. See the Series Fund prospectuses for more information regarding AEGON/Transamerica Advisers and the investment sub-advisers.

Morningstar Associates, LLC (“Morningstar”), located at 225 West Wacker Drive, Chicago, Illinois 60606, serves as a “consultant” to AEGON/Transamerica Advisers for investment model creation and maintenance to the Asset Allocation – Conservative Portfolio, Asset Allocation – Moderate Portfolio, Asset Allocation – Moderate Growth Portfolio and Asset Allocation – Growth Portfolio of the Series Fund. Morningstar will be paid an annual fee for its services. See the Series Fund prospectuses for more information regarding Morningstar.

Access Fund Management, LLC, located at 28050 US Highway 19 N, Suite 301, Clearwater, Florida 33761, serves as the investment adviser to the AVIT fund and manages the AVIT fund in accordance with policies and guidelines established by the AVIT fund’s Board of Trustees. For certain portfolios, AVIT has engaged investment sub-advisers to provide portfolio management services with regard to foreign investments. AVIT and each sub-adviser are registered investment advisers under the Investment Advisers Act of 1940, as amended. See the AVIT fund prospectus for more information regarding Access and the investment sub-advisers.

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Fidelity Management & Research Company (“FMR”), located at 82 Devonshire Street, Boston, Massachusetts 02109, serves as investment adviser to the Fidelity VIP Fund and manages the Fidelity VIP Fund in accordance with policies and guidelines established by the Fidelity VIP Fund’s 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 Fund prospectus for more information regarding FMR and the investment sub-adviser.

Addition, Deletion, or Substitution of Investments

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 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.

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 proxy 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. 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; and
	•     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; and

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	•     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; and
	•     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 Charge

Before we allocate the net premium payments you make, we will deduct the following charge.

The Premium expense charge is equal to:	®        10.0% of cumulative premiums paid in each Policy year up to the premium expense level and 3.0% of premiums in excess of the premium expense level during the first ten Policy years; and
	®        3.0% on all premiums thereafter.
	The premium expense level is the amount of premium used to determine the charge applied to premium payments. The premium expense level varies depending on the primary insured’s gender, issue age, specified amount, and underwriting class and is listed on your Policy’s schedule page.
	•     Certain events (such as decreases in the specified amount, a change in death benefit option, or a cash withdrawal if you choose the Option A death benefit) may affect the specified amount in force. Premium expense charges will be based on the specified amount at issue for the Base Policy.
	•     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.

Monthly Deduction

We take a monthly deduction from the cash value on the Policy date and on each Monthiversary. We deduct this charge 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 deduction (such as cost of insurance) can vary monthly, the monthly deduction will also vary.

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The monthly deduction is		•     the monthly Policy charge; plus
equal to:		•     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 $7.00 each Policy month. After the first Policy year, we may increase this charge.
		•     We guarantee this charge will never be more than $10.00 per month.
		•     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 1.0024663 (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 3.0%);
		2. reduce the result in 1. by the cash value on the Monthiversary (the resulting amount is the net amount at risk);
		3. multiply the result in 2. (that is, the net amount at risk) by the appropriate monthly cost of insurance rate.
	Optional Insurance Riders:
		•     The monthly deduction will include charges for any optional insurance benefits you add to your Policy by rider.

The factors that affect the net amount at risk 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 chose, as well as any Policy transactions (such as loans, partial withdrawals, transfers, and changes in specified amount). To determine the monthly cost of insurance rates we refer to a schedule of current cost of insurance rates using the insured’s gender, attained age, and underwriting class. 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 rate class. For standard rate classes, these guaranteed rates will never be greater than the rates in the 1980 C.S.O. Tables.

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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 are based on the health of the insured. We currently place insureds into preferred and standard classes. We also place insureds into sub-standard classes with extra ratings, which reflect higher mortality risks, and will result in higher cost of insurance rates.

We may issue certain Policies on a simplified or expedited basis. Cost of insurance rates charged for any Policies issued on a simplified 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 specified amount is calculated in the same manner used to determine the Base Policy’s cost of insurance charges. Generally, the current cost of insurance rates for the optional riders are lower than the current cost of insurance rates on the Base Policy’s net amount at risk. The guaranteed cost of insurance rates under the riders are substantially the same as the guaranteed cost of insurance rates on the 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 equal to:

• your Policy’s cash value in each subaccount multiplied by

• the daily equivalent of the annual mortality and expense risk charge rate of 0.90%.

The annual rate is equal to 0.90% of the average daily net assets of each subaccount. We intend to reduce this charge to 0.75% after the first 15 Policy years, but we do not guarantee that we will do so, and we reserve the right to maintain this charge at the 0.90% level after the 15th Policy year.

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 charges more than cover actual costs, the excess is added to our surplus. We expect to profit from these charges.

Transfer Charge

• We currently allow you to make 12 transfers each year free from charge.

• We charge $25 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 due to loans or the exercise of conversion rights, or due to reallocation of cash value immediately after the reallocation date, currently do not count as transfers for the purpose of assessing this charge.

• Transfers via the Internet do not count as transfers for the purpose of assessing the transfer charge.

• Transfers under dollar cost averaging and asset rebalancing are transfers for purposes of this charge.

• We will not increase this charge.

Loan Interest Charge

We currently charge you an effective annual interest rate on a Policy loan of 3.75% (4.0% maximum guaranteed) on each Policy anniversary. We will also credit the amount in the loan reserve with an effective annual interest rate of 3.00%. After offsetting the 3.00% interest we credit, the net cost of loans currently is 0.75% annually (1.0% maximum guaranteed). After the 10th Policy year, we will apply preferred loan charged rates on an amount equal to the cash value minus total premiums paid (less any cash withdrawals) and minus any outstanding loan amount including accrued loan interest. The current preferred loan interest rate charged is 3.00% effective annually and is not guaranteed.

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Change in Net Premium Allocation Charge

We currently do not charge you if you change your net premium allocation. However, in the future we may decide to charge you $25 if you make more than one change per Policy year quarter. We will notify you if we decide to impose this charge.

Cash Withdrawal Charge

• After the first Policy year, you may take one cash withdrawal per Policy year. The amount of the withdrawal may be limited to at least $500 and the remaining net surrender value following a withdrawal may not be less than $500.

• When you make 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 if such taxes are imposed by federal or state agencies.

Rider Charges

• Living Benefit 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 expected lost income due to the early payment of the death benefit.

• 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.

• 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.

• 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.

• 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.

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.

Our affiliate, AFSG Securities Corporation (“AFSG”), the principal underwriter for the Policies, will receive the 12b-1 fees of 0.25% of average daily assets of Fidelity VIP Fund and the AVIT portfolios for providing

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shareholder support services to the Fidelity VIP Fund and AVIT portfolios. In addition, we and our affiliates, including the principal underwriter for the Policies, may receive compensation related to separate account operations from the investment advisers, administrators, and/or distributors (and an affiliate thereof) of the portfolios in connection with administrative or other services and cost savings experienced by the investment advisers, administrators or distributors. It is anticipated that such compensation may range up to 0.40% of the value of the assets of the particular portfolios attributable to the Policy. Some advisers, administrators, distributors or portfolios may pay us (and our affiliates) more than others.

The 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;

• 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; and

• to change the specified amount of this Policy.

No designation or change in designation of an owner will take effect unless we receive written request thereof. When received, the request will take effect as of the date it was signed, 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 and signed by our president or secretary. No agent 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 under the Internal Revenue Code or other 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

To purchase a Policy, you must submit a completed application 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 AFSG, the principal underwriter for the Policy, and us.

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 – 49 is generally $250,000. It declines to $100,000 for issue ages 50 – 85.

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

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any reason permitted by law. We will not issue a Policy to you if the insured is over age 85. 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 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).

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; (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 listed in the conditional receipt attached to the application, and we deliver the conditional receipt to you, the insured will have conditional insurance coverage under the terms of the conditional receipt. 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; •     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.      Each 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 office within the lifetime of the proposed insured;

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		4.     All medical examinations, tests, and other screenings required of the proposed insured by us are completed and the results received at our office within 60 days of the date the application was completed; and
		5.     All parts of the application, any supplemental application, questionnaires, addendum and/or amendment to the application are signed and received at our office.
Any conditional life insurance coverage terminates	a.     60 days from the date the application was signed;
on the earliest of:	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 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:
		g	all blanks in the conditional receipt are completed; and
		g	the Receipt is signed by an agent 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. On the Policy date (or on the record date if your Policy is backdated), we will allocate your initial net premium, minus monthly deductions, to the fixed account and the subaccounts you selected on your application, provided you live in a state that does not require a refund of full premium during the free-look period. If your state requires us to return the full premium in the event you exercise your free-look right, we will place your net premium in the reallocation account until the reallocation date. While held in the reallocation account, premium(s) will be credited with interest at the current fixed account rate.

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 at our office. We will credit amounts to the subaccounts only on a valuation date, that is, on a date the New York Stock Exchange (“NYSE”) is open for trading.

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Backdating a Policy

If you request, we may backdate a Policy by assigning a Policy date earlier than the date the Policy is issued. 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.

Cost of insurance charges are based in part on the age of the insured on the Policy date. Generally, cost of insurance charges are lower at a younger age. We will deduct the monthly deduction, including cost of insurance charges, for the period that the Policy is backdated. This means that while the monthly deduction 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.

Policy Features

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, you must have at least $5,000 in each subaccount from which we will make transfers and you must transfer at least a total of $100 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 $5,000; and

• unless otherwise required by state law, we may restrict your allocations to the fixed account if the fixed account value following the allocation would exceed $100,000.

Currently, you may change the allocation instructions for additional premium payments without charge at any time by writing us or calling us at 1-800-851-9777 Monday - Friday 8:30 a.m. - 7:00 p.m. Eastern time. The change will be effective at the end of the valuation date on which we receive the change at our office. Upon instructions from you, the registered representative/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 1.0% of a net premium payment. We reserve the right to limit the number of premium allocation changes or to charge $25 for each change in excess of one per Policy year quarter.

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 office before the NYSE closes are priced using the unit value determined at the closing of that regular business session of the NYSE (usually at 4:00 p.m. Eastern time). If we receive a premium payment at our office 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.

Reallocation Account. If your state requires us to return your initial premium in the event you exercise your free-look right, we will allocate the initial net premium on the Policy date (or the record date if your Policy is backdated) to the reallocation account as shown on your Policy schedule page. While held in the reallocation account, net premium(s) will be credited with interest at the current fixed account rate and reduced by any monthly deductions due. The net premiums will remain in the reallocation account until the reallocation date. The

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reallocation date is the Policy date (or the record date if your Policy is backdated), plus the number of days in your state’s free-look period, plus five days. Please contact your agent for details concerning the free-look period for your state.

On the first valuation date on or after the reallocation date, we will reallocate all cash value from the reallocation account to the fixed account and the subaccounts you selected on the application. If you requested dollar cost averaging, on the reallocation date we will reallocate the cash value either to the fixed account, the WRL Transamerica Money Market subaccount or the WRL AEGON Bond subaccount (depending on which account you selected on your application).

For states that do not require a full refund of the initial premium, the reallocation date is the same as the Policy date. On the Policy date, we will allocate your initial net premium, minus monthly deductions, to the fixed account and the subaccounts in accordance with the instructions you gave us on your application.

Premium Flexibility

You generally have flexibility to determine the frequency and the amount of the premiums you pay. Unlike conventional insurance policies, you do not have to pay your premiums according to a rigid and inflexible premium schedule. 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 unscheduled 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.

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 agent/registered representative 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 may still 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 deduction 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 do not 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, 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 and minus any accrued loan interest) that equal or exceed the sum of the minimum monthly guarantee premiums for each month from the Policy date up to and including the current month. If you take a cash withdrawal or a loan, or if you 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 place.

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, and rate 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, increased or decreased. We will notify you of the new minimum monthly guarantee premium.

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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.

No Lapse Period

Until the no lapse date shown on your Policy schedule page, 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 deduction, so long as:

• the total amount of the premiums you paid (minus any cash withdrawals, minus any outstanding loan amount and minus any accrued interest) is equal to or exceeds:

g the sum of the minimum monthly guarantee premium in effect for each month from the Policy date up to and including the current month.

Premium Limitations

Premium payments must be at least $50 ($1,000 if by wire). We may return premiums less than $50. 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, which qualify the Policy as life insurance according to federal tax laws. 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. We will not permit you to make additional premium payments until they are allowed by the maximum premium limitations. 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.

Making Premium Payments

We will consider any payments you make to be premium payments, unless you clearly mark them as loan repayments. We will deduct certain charges from your premium payments. We will accept premium payments by wire transfer.

If you wish to make payments by wire transfer, you should contact our Call Center at 1-800-851-9777 for instructions on wiring federal funds to us.

Tax-Free Exchanges (“1035 Exchanges”). We will accept part 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 office of the proceeds from the 1035 Exchange before we finalize your Policy’s specified amount.

Transfers

General

You or your agent/registered representative of record may make transfers among the subaccounts or from the subaccounts to the fixed account. We determine the amount you have available for transfers at the end of the valuation period when we receive your transfer request at our office. 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:

ü Unless you select dollar cost averaging from the fixed acocunt, the Policy allows transfers from the fixed account only during the 30 days following each Policy anniversary. During this period,

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the Policy allows transfer of the greater of up to 25% of the amount in the fixed account, or the amount transferred in the previous Policy year. Currently, we allow you to transfer at any one time during a Policy year up to 100% of the fixed account value from the fixed account. If we modify or stop this current practice, we will notify you.

ü Unless otherwise required by state law, we may restrict transfers to the fixed account, if the fixed account value (excluding amounts in the loan reserve account) following the transfer would exceed $100,000.

ü You may request transfers in writing (in a form we accept), by fax, by telephone to our office or electronically through our website (www.westernreserve.com).

ü There is no minimum amount that must be transferred.

ü There is no minimum amount that must remain in a subaccount after a transfer.

ü We deduct a $25 charge from the amount transferred for each transfer in excess of 12 transfers in a Policy year.

ü We consider all transfers made in any one day to be a single transfer.

ü Transfers resulting from loans or the exercise of conversion rights, or due to the reallocation of cash value immediately after the reallocation date currently are not treated as transfers for the purpose of the transfer charge.

ü Transfers via the Internet are not treated as transfers for the purpose of the transfer charge.

ü Transfers under dollar cost averaging and asset rebalancing are treated as transfers for purposes of the transfer charge.

ü Transfers between any AVIT subaccount and any Series Fund or Fidelity VIP Fund subaccount will be processed only if you send us a written request through standard United States postal First Class mail delivery, with an original signature authorizing each transfer. Transfer requests received via overnight or priority delivery will be returned to you.

We will process any transfer order we receive at our 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 at our office 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. Statement of Policy. This policy was not designed for the use of programmed, large, frequent, or short-term transfers. Such transfers may be disruptive to the underlying fund portfolios and increase transaction costs.

Programmed, large, frequent, or short-term transfers 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 unit values 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 impeding a portfolio manager’s ability to sustain an investment objective, causing the underlying fund portfolio to maintain a higher level of cash than would otherwise be the case, or causing an underlying fund portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the underlying fund portfolio; and (3) increased brokerage and administrative expenses. These costs are borne by all policyowners invested in those subaccounts, not just those making the transfers.

Do not invest with us except in the Access Variable Insurance Trust (AVIT) subaccounts if you intend to conduct market timing or other disruptive trading.

Detection. We have developed policies and procedures with respect to market timing and other transfers and do not grant exceptions thereto. 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 with different policies and procedures may invest in the underlying fund portfolios, we cannot guarantee all harmful trading will be detected or that an underlying fund portfolio will not suffer harm from programmed, large, frequent, or short-term transfers among subaccounts of variable products issued by these other insurance companies.

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Deterrence. If we determine you are engaged in market timing or other disruptive trading, we may take one or more actions in an attempt to halt such trading. Your ability to make transfers is subject to modification or restriction if we determine, in our sole opinion, that your exercise of the transfer privilege may disadvantage or potentially harm the rights or interests of other policy owners. As described below, restrictions may take various forms, and may include permanent loss of expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be “expedited” transfers. 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, the payment or transfer, or series of transfers, would have a negative impact on an underlying fund portfolio’s operations, if an underlying fund portfolio would reject or has rejected our purchase order, or because of a history of large or frequent transfers. We may impose other restrictions on transfers, such as requiring written transfer requests with an original signature conveyed only via U.S. Mail for all transfers, or even prohibit transfers for any owner who, in our view, has abused, or appears likely to abuse, the transfer privilege. 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. For all of these purposes, we may aggregate two or more policies that we believe are connected.

In addition to our internal policies and procedures, we will administer your policy to comply with 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 we are unable to purchase or redeem shares of any of the underlying fund portfolios.

AVIT Subaccounts. The restrictions above do not apply to AVIT subaccounts. However, you may only transfer between AVIT subaccounts and non-AVIT subaccounts by sending us your written request, with original signature authorizing each transfer, through standard U.S. Mail (no expedited transfers). Transfers that involve only the AVIT subaccounts may generally use expedited transfer privileges.

Because the above restrictions do not apply to the AVIT subaccounts, they may have a greater risk than others of suffering from the harmful effects of programmed, large, frequent or short-term transfers, as discussed above (i.e., dilution, an adverse effect on portfolio management, and increased expenses).

We may, at any time, discontinue transfer privileges, modify our procedures, or limit the number of transfers we permit.

Your Policy, as applied for and issued, will automatically receive telephone transfer privileges 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 1-800-851-9777 Monday - Friday 8:30 a.m. - 7:00 p.m. Eastern time, or fax your instructions to 727-299-1648.

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

g We will employ reasonable procedures to confirm that telephone instructions are genuine.

g 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.

g If we do not employ reasonable confirmation procedures, we may be liable for losses due to unauthorized or fraudulent instructions.

g 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.

g We may also require written confirmation of your order.

g If you do not want the ability to make telephone transfers, you should notify us in writing at our office.

g We will not be responsible for same-day processing of transfers if faxed to a number other than 727-299-1648.

g 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 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. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances.

Online transactions processed via the Internet may not always be possible. Telephone and computer systems, whether yours, your Internet service provider’s, your agent’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) because self-service options will be available to your agent of record and to anyone who provides your PIN. We will not be able to verify that the person using your PIN and providing instructions online is you or one authorized by you.

Fixed Account Transfers

Currently, we allow you once per Policy year to transfer up to 100% of the amount in the fixed account. If we change this, we will notify you. This current restriction does not apply if you have selected dollar cost averaging.

We reserve the right to limit the maximum amount you may transfer from the fixed account to the greater of:

g 25% of the amount in the fixed account; or

g the amount you transferred from the fixed account in the immediately prior Policy year.

We will make the transfer at the end of the valuation date on which we receive the request. We reserve the right to require that you make the transfer request in writing and that we receive the written transfer request no later than 30 days after a Policy anniversary. Unless otherwise required by state law, we may restrict your allocations and transfers to the fixed account if the fixed account value (excluding amounts in the loan reserve account) following the allocation or transfer would exceed $100,000.

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

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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 to our office.

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 WRL Transamerica Money Market subaccount, the WRL AEGON Bond subaccount or the fixed account to a subaccount that you choose (except the AVIT subaccounts). We will make the transfers monthly as of the end of the valuation date after the first Monthiversary after the reallocation date. We will make the first transfer in the month after we receive your request at our office, provided that we receive the form by the 25^th day of the month.

To start dollar cost averaging:	g	you must submit a completed form to us at our office requesting dollar cost averaging;
	g	you must have at least $5,000 in each account from which we will make transfers;
	g	your total transfers each month under dollar cost averaging must be at least $100; and
	g	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. However, each transfer under dollar cost averaging counts towards your 12 free transfers each year.

Dollar cost averaging will terminate if:	g	we receive your request to cancel your participation;
	g	the value in the accounts from which we make the transfers is depleted;
	g	you elect to participate in the asset rebalancing program; or
	g	you elect to participate in any asset allocation services provided by a third party.

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 (except the AVIT subaccounts) you have selected. 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 each quarterly, semi-annual or annual anniversary of the Policy date. Once we receive the asset rebalancing request form at our office, we will effect the initial rebalancing of cash value on the next such anniversary, in accordance with the Policy’s current premium allocation schedule.

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You may modify your allocations quarterly. 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:	g	you must submit a completed asset rebalancing request form to us at our office before the maturity date; and
	g	you must have a minimum cash value of $5,000 or make a $5,000 initial premium payment.

There is no charge for the asset rebalancing program. However, each reallocation we make under the program counts towards your 12 free transfers each year.

Asset rebalancing will cease if:	g	you elect to participate in the dollar cost averaging program;
	g	we receive your request to discontinue participation at our office;
	g	you make any transfer to or from any subaccount other than under a scheduled rebalancing; or
	g	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 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 may provide administrative or other support services to independent third parties you authorize to conduct transfers on your behalf, or who provide recommendations as to how your subaccount values should be allocated. This includes, but is not limited to, transferring subaccount values among subaccounts in accordance with various investment allocation strategies that these third parties employ. These independent third parties may or may not be appointed Western Reserve agents for the sale of Policies. Western Reserve does not engage any third parties to offer investment allocation services of any type, so that persons or firms offering such services do so independent from any agency relationship they may have with Western Reserve for the sale of Policies. Western Reserve therefore takes no responsibility for the investment allocations and transfers transacted on your behalf by such third parties or any investment allocation recommendations made by such parties. Western Reserve does not currently charge you any additional fees for providing these support services. Western Reserve reserves the right to discontinue providing administrative and support services to owners utilizing independent third parties who provide investment allocation and transfer recommendations.

Policy Values

Cash Value

• 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).

• Serves as the starting point for calculating values under a Policy.

• Equals the sum of all values in each subaccount and the fixed account.

• Is determined on the Policy date and on each valuation date.

• Has no guaranteed minimum amount and may be more or less than premiums paid.

• Includes any amounts held in the fixed account to secure any outstanding Policy loan.

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Net Surrender Value

The net surrender value is the amount we pay when you surrender your Policy. We determine the net surrender value at the end of the valuation period when we receive your written surrender request at our office.

Net surrender value on any valuation date equals:	•     the cash value as of such date; minus
	•     any outstanding Policy loan amount; minus
	•     any accrued Policy loan interest.

Subaccount Value

Each subaccount’s value is the cash value in that subaccount. At the end of any valuation period, the subaccount’s 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 Policy date, or reallocation date, if different; 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 (including the loan reserve account).

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 at our office.

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 daily 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

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•     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, or the reallocation date, if different, the fixed account value is equal to the cash value allocated to 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 from the fixed account to pay for cash withdrawals; minus
	•     amounts transferred from the fixed account (including amounts transferred from the loan reserve account) to a subaccount.

New Jersey: If your Policy was issued in the State of New Jersey, the fixed account value at the end of any valuation period is equal to:

• any amounts transferred from a subaccount to the fixed account to establish a loan reserve; plus

• total interest credited to the fixed account.

Death Benefit

Death Benefit Proceeds

As long as the Policy is in force, we will determine the amount of and pay the death benefit proceeds on an individual Policy upon receipt at our office of satisfactory proof of the insured’s death, plus written direction (from each eligible recipient of death benefit proceeds) regarding how to pay the death benefit payment, and any other documents, forms and information we need. We may require return of the Policy. 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 death benefit (described below); minus
	•     any monthly deductions due during the grace period (if applicable); minus
	•     any outstanding loan amount and accrued loan interest; plus
	•     any additional insurance in force provided by rider.

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.

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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 three death benefit options we offer in your application. If you do not choose a death benefit option in the application, the Option A death benefit option will automatically be in effect. 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.

Death benefit Option A	•     the current specified amount; or
equals the greatest of:	•     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 contract 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% of cash value minus 7% for each age over age 40
46 to 50	215% of cash value minus 6% for each age over age 45
51 to 55	185% of cash value minus 7% for each age over age 50
56 to 60	150% of cash value minus 4% for each age over age 55
61 to 65	130% of cash value minus 2% for each age over age 60
66 to 70	120% of cash value minus 1% for each age over age 65
71 to 75	115% of cash value minus 2% for each age over age 70
76 to 90	105%
91 to 95	105% of cash value 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, there have been no withdrawals or decreases in specified amount, and that there are no outstanding loans. Under Option A, a Policy with a $500,000 specified amount will generally pay $500,000 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 $200,000, the death benefit will exceed the $500,000 specified amount. Each additional dollar added to the cash value above $200,000 will increase the death benefit by $2.50.

Similarly, so long as the cash value exceeds $200,000, each dollar taken out of the cash value will reduce the death benefit 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.

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Death benefit Option B	•     the current specified amount; plus
equals the greatest of:	g    the cash value on the insured’s date of death; or
	•     the limitation percentage, multiplied by
	g    the cash value on the insured’s date of death; or
	•     the amount required for the Policy to qualify as a life insurance contract 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 $500,000 will generally pay a death benefit of $500,000 plus cash value. Thus, a Policy with a cash value of $10,000 will have a death benefit of $510,000 ($500,000 + $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 $333,333, the death benefit will be greater than the specified amount plus cash value. (The figure of $333,333 is derived by solving for cash value in the following calculation: $500,000 plus cash value = 250% multiplied by cash value.) Each additional dollar of cash value above $333,333 will increase the death benefit by $2.50.

Similarly, any time cash value exceeds $333,333, 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.

Death benefit Option C	•     death benefit Option A; or
equals the greatest of:	•     the current specified amount, multiplied by
	g    an age-based “factor” equal to the lesser of
	•     1.0 or
	•     0.04 times (95 minus insured’s attained age at death) (the “factor” will never be less than zero); plus
	g    the cash value on the insured’s date of death; or
	•     the amount required for the Policy to qualify as a life insurance contract under Section 7702 of the Internal Revenue Code.

Under Option C, the death benefit varies with the cash value and the insured’s attained age.

Option C—Three Illustrations.

1. Assume that the insured is under age 40 and that there are no outstanding loans. Under Option C, a Policy with a specified amount of $500,000 and with a cash value of $10,000 will have a death benefit of $510,000 ($500,000 times the minimum of (1.0 and (0.04 (95-40))) + $10,000). Until the insured attains age 71, this benefit is the same as the Option B benefit.

2. Assume that the insured is attained age 75 and that there are no outstanding loans. Under Option C, a Policy with a specified amount of $500,000 and with a cash value of $110,000 will have a death benefit of $510,000 ($500,000 times the minimum of (1.0 and (0.04 (95-75))) + $110,000).

3. Assume that the insured is attained age 75 and that there are no outstanding loans. Under Option C, a Policy with a specified amount of $500,000 and with a cash value of $10,000 will have a death benefit equal to the specified amount of $500,000, since the calculation of $500,000 times the minimum of (1.0 and (0.04 (95-75))) plus $10,000 is less than the specified amount.

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The Policy is intended to qualify under Section 7702 of the Internal Revenue Code as a life insurance contract for federal tax purposes. The death benefit under the Policy is intended to qualify for the federal income tax exclusion. The provisions of the Policy (including any rider or endorsement) will be interpreted to ensure tax qualification, regardless of any language to the contrary.

To the extent that the death benefit is increased to maintain qualification as a life insurance policy, appropriate adjustments will be made in any monthly deductions or supplemental benefits as of that time, retroactively or otherwise, that are consistent with such an increase. Retroactive adjustments to the monthly deduction may be deducted from the cash value or may be made by right of setoff against any death benefits payable. Prospective adjustments will be reflected in the monthly deduction.

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.

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, we will assume you selected death benefit Option A and will ask you to confirm the selection of Option A in writing or choose one of the other death benefit options.

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. You may find Option C more suitable if your goal is to increase your total death benefit before you reach attained age 70, and to increase your cash value through positive investment experience thereafter.

Changing the Death Benefit Option

After the third Policy year, you may change your death benefit option once each Policy year if you have not decreased the specified amount that year. We will notify you of the new specified amount.

• You must send your written request to our office.

• 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.

Decreasing the Specified Amount

After the Policy has been in force for three years, you may decrease the specified amount once each Policy year if you have not changed the death benefit option that year. A decrease in the specified amount will affect your cost of insurance charge and your minimum monthly guarantee premium, and may have adverse federal tax consequences. You should consult a tax advisor before decreasing your Policy’s specified amount.

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Conditions for and impact of decreasing the specified amount:	•	you must send your written request to our office;
	•	you may not change your death benefit option in the same Policy year that you decrease your specified amount;
	•	you may not decrease your specified amount lower than the minimum specified amount shown on your Policy schedule page;
	•	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 Monthiversary on or after we receive your written request; and
	•	a decrease in specified amount will cause a new minimum monthly guarantee premium to be calculated. The new minimum monthly guarantee premium is effective on the date of the decrease.

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.

Surrenders and Cash Withdrawals

Surrenders

You must make a written request containing an original signature to surrender your Policy for its net surrender value as calculated at the end of the valuation date on which we receive your request at our office. 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. Written requests to surrender a Policy that are received at our office 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 office after the NYSE closes, we will process the surrender request using the subaccount unit value determined at the close of the next regular business session of the NYSE.

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. See Federal Income Tax Considerations.

Cash Withdrawals

After the first Policy year, you may request a cash withdrawal of a portion of your cash value subject to certain conditions.

Cash withdrawal conditions:	•	You must send your written cash withdrawal request with an original signature to our office. You may also fax your withdrawal request to us if it is less than $50,000 at 727-299-1667.
	•	We only allow one cash withdrawal per Policy year.

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• We may limit the amount you can withdraw to at least $500 and the remaining net surrender value following a withdrawal may not be less than $500.

• 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.

• We generally will pay a cash withdrawal request within seven days following the valuation date we receive the request at our office.

• 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 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 and premium expense charges.

When we incur extraordinary expenses, such as overnight mail expenses or wire service fees, for expediting delivery of your partial withdrawal or complete surrender payment, we will deduct that charge from the payment. We charge $20 for an overnight delivery ($30 for Saturday delivery) and $25 for wire service.

Canceling a Policy

You may cancel a Policy for a refund during the “free-look period” by returning it to our office, to one of our branch offices or to the agent who sold you 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 the returned Policy at our 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 we (or our agent) receive the returned Policy at our office.

Some states may require us to refund all of the premiums you paid for the Policy.

Loans

General

After the first Policy year (as long as the Policy is in force) you may borrow money from us using the Policy as the only security for the loan. We may permit a loan prior to the first anniversary for Policies issued pursuant to 1035 Exchanges. A loan that is taken from, or secured by, a Policy may have tax consequences. See Federal Income Tax Considerations.

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Policy loans are subject to certain conditions:	•	we may require you to borrow at least $500; and
	•	the maximum amount you may borrow is 90% of the cash value, minus any outstanding loan amount, including accrued loan interest.

When you take a loan, we will withdraw an amount equal to the requested loan from each of the subaccounts and the fixed account based on your current premium allocation instructions (unless you specify otherwise). We will transfer that amount to the loan reserve account. The loan reserve account is the portion of the fixed account used 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 office. We may postpone payment of loans under certain conditions.

You may request a loan by telephone by calling us at 1-800-851-9777 Monday - Friday 8:30 a.m. - 7:00 p.m. Eastern time. If the loan amount you request exceeds $50,000 or if the address of record has been changed within the past 10 days, we may reject your request or require a signature guarantee. If you do not want the ability to request a loan by telephone, you should notify us in writing at our office. 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.

You may also fax your loan request to us at 727-299-1667. 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 office and will be credited as of the date received. We will consider any payments you make on the Policy to be premium payments unless the payments are clearly specified as loan repayments. Because we do not apply the premium expense charge to loan repayments, it is very important that you indicate clearly if your payment is intended to repay all or part of a loan.

At each Policy anniversary, we will compare the outstanding loan amount, including accrued loan interest, to the amount in the loan reserve. We will also make this comparison any time you repay all or part of the loan, or make a request to borrow an additional amount. At each such time, if the outstanding loan amount, including accrued loan interest, exceeds the amount in the loan reserve, we will withdraw the difference from the subaccounts and the fixed account and transfer it to the loan reserve, in the same manner as when a loan is made. If the amount in the loan reserve exceeds the amount of the outstanding loan, including accrued loan interest, we will withdraw the difference from the loan reserve 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 Rate Charged

We currently charge you an annual interest rate on a Policy loan that is equal to 3.75% (4.0% maximum guaranteed) and is payable in arrears on each Policy anniversary, or, if earlier, on the date of loan repayment, Policy lapse, surrender, Policy termination, or the insured’s death. We may declare various lower Policy loan interest rates. We also may apply different loan interest rates to different parts of the loan. Loan interest that is unpaid when due will be added to the amount of the loan on each Policy anniversary and will bear interest at the same rate. After the 10th Policy year, on all amounts that you have borrowed, you may receive preferred loan rates on an amount equal to the cash value minus total premiums paid (reduced by any cash withdrawals), minus any outstanding loan amount, and minus any accrued loan interest. This preferred loan rate is currently 3.0% and is not guaranteed. The tax consequences of preferred loans are uncertain.

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Loan Reserve Interest Rate Credited

We will credit the amount in the loan reserve with interest at an effective annual rate of 3.0%.

Effect of Policy Loans

A Policy loan reduces the death benefit proceeds and net surrender value by the amount of any outstanding loan amount, including accrued loan interest. 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 as of the last Policy anniversary plus any accrued interest net of any loan payments. This amount is not affected by the separate account’s investment performance and may not be credited with the interest rates accruing on the unloaned portion of the fixed account. Amounts transferred from the separate account to the loan reserve will affect the value in the separate account because we 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 charge interest on Policy loans at an effective annual rate of 3.75%. 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 the sum of your loan amount is more than the net surrender value. 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 no guarantee that your Policy will not lapse. This Policy provides a no lapse period. See below. Once your no lapse period ends, your Policy may lapse (terminate without value) 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 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. 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.

No Lapse Period

This Policy provides a no lapse period. As long as you keep the no lapse period in effect, your Policy will not lapse and no grace period will begin. Even if your net surrender value is not enough to pay your monthly deduction, the Policy will not lapse so long as the no lapse period is in effect. The no lapse period will not extend beyond the no lapse date stated in your Policy. Each month we determine whether the no lapse period is still in effect.

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No lapse date	•	For a Policy issued to any insured ages 0-60, the no lapse date is determined by either the number of years to attained age 65 or the twentieth Policy anniversary, whichever is earlier.
	•	For a Policy issued to an insured ages 61-85, the no lapse date is the fifth Policy anniversary.
	•	The no lapse date is specified in your Policy.
Early termination of the no lapse period	•	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:
		g      the sum of the minimum monthly guarantee premiums in effect for each month from the Policy date up to and including the current month.

You will lessen the risk of Policy lapse if you keep the no lapse period in effect. Before you take a cash withdrawal or a loan or decrease 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.

In addition, if you change death benefit options, decrease the specified amount, or add, increase or decrease a rider, we will adjust the minimum monthly guarantee premium. Depending upon the change made to the Policy or rider and the resulting impact on the level of the minimum monthly guaranteed premium, you may need to pay additional premiums to keep the Policy in force. See Minimum Monthly Guarantee Premium for a discussion of how the minimum monthly guarantee premium is calculated and can change.

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 office;

• provide evidence of insurability satisfactory to us;

• make a minimum premium payment sufficient to provide a net premium that is large enough to cover three monthly deductions.

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 cash value at the time your Policy lapsed, plus any net premiums you pay at reinstatement, minus one monthly deduction. 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

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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.

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.

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 death benefit under a Policy should be excludible from the beneficiary’s gross income. 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 “Modified Endowment Contract” (“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 the outstanding indebtedness will be added to the 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 agent will be notified immediately. 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

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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) such a Policy 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 distributions and 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  ¹⁄₂ 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, distributions from a Policy within two years before it becomes a MEC will be taxed in this manner. This means that a distribution from a Policy that is not a MEC at the time when the distribution is made could later become taxable as a distribution from a MEC.

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.

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.

Multiple Policies. All MECs that we issue (or that our affiliates issue) to the same owner during any calendar year are treated as one MEC for purposes of determining the amount includible in the owner’s income when a taxable distribution occurs.

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 are 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, withholding will apply unless you certify to us that you are not a U.S. person residing abroad. 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.

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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 arrangement the value of which depends in part on its tax consequences, you should be sure to consult a tax advisor as to tax attributes of the arrangement. In recent years, moreover, Congress has adopted new rules relating to life insurance owned by businesses and the IRS has recently issued new guidelines on split-dollar arrangements. Any business contemplating the purchase of a new Policy or a change in an existing Policy should consult a tax advisor.

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.

Living Benefit Rider (an Accelerated Death Benefit). 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.

Other Policy Information

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 100^th birthday. This is the maturity date. On the maturity date we will pay you the net surrender value of your Policy.

If requested in writing at our office, 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. Policy loans, partial withdrawals, and subaccount transfers may continue during the extension. 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:

46

1. If you had previously selected death benefit Option B or C, 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 office. However, we can postpone such payments if:

• the NYSE is closed, other than customary weekend and holiday closing, or trading on the NYSE is restricted as determined by the SEC; or

• the SEC permits, by an order, the postponement for the protection of policyowners; or

• 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.

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 government 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., cash 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 cash surrender value. The employee may designate the beneficiary to receive any insurance proceeds in excess of the cash 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.

47

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 office. 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 is 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 recently issued guidance that affects the tax treatment of split-dollar arrangements and the Treasury Department recently 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; or
•	the date the insured dies;	•	the date the Policy is surrendered.

Supplemental Benefits (Riders)

The following supplemental benefits (riders) are available and may be added to a Policy. Monthly charges for these riders are deducted from cash value as part of the monthly deduction. 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 and certain benefits and features may vary by state. Adding these supplemental benefits to an existing Policy or canceling them may have tax consequences and you should consult a tax advisor before doing so.

Children’s Insurance Rider

This rider provides a face amount on the primary insured’s children. Our current minimum face amount for this rider for issue ages 15 days-18 years of age is $5,000. The maximum face amount is $20,000. At the age of 25 or upon the death of the primary insured, whichever happens first, this rider may be converted to a new policy with a maximum face amount of up to five times the face amount of the rider. We will pay a death benefit once we receive proof that the insured child died while both the rider and coverage were in force for that child. 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.

Accidental Death Benefit Rider

Our current minimum face amount for this rider for issue ages 15-59 is $10,000. The maximum face amount available for this rider is $150,000 (up to 150% of specified amount).

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Subject to certain limitations, we will pay a face amount if the primary insured’s death 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; and

• 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 70^th birthday;

• the date the Policy terminates; or

• the Monthiversary when the rider terminates at the owner’s request.

Other Insured Rider

This rider insures the spouse and/or dependent children of the primary insured. Subject to the terms of the rider, we will pay the face amount of the rider to the primary insured. Our current minimum face amount for this rider for issue ages 0-85 is $10,000. The maximum face amount is the lesser of $500,000 or the amount of coverage on the primary insured. Any changes in the coverage of this rider may affect your minimum monthly guarantee premium. 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 at our office 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 office;
	•     the rider has not reached the anniversary nearest to the other insured’s 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 face amount in force under the rider as long as it meets the minimum face amount requirements of the original Policy; and
	•     we will base your premium on the other insured’s rate class under the rider.
Termination of the rider:	The rider will terminate on the earliest of:
	•     the maturity date of the Policy;
	•     the anniversary nearest to the other insured’s 100th birthday;
	•     the date the Policy terminates for any reason except for death of the primary insured;
	•     31 days after the death of the primary insured;
	•     the date of conversion of this rider; or
	•     the Monthiversary on which the rider is terminated upon written request by the owner.

Disability Waiver Rider

Subject to certain conditions, we will waive the Policy’s monthly deductions while the primary insured is disabled. This rider may be purchased if the primary insured’s issue age is 15-55 years of age. We must receive proof that:

• the primary insured is totally disabled;

• the rider was in force when the primary insured became disabled;

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• the primary insured became disabled before the anniversary nearest your 60^th birthday; and

• the primary insured is continuously disabled 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.

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 primary 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.

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 0-85;
	•     the PIR Plus may be purchased from issue ages 18-85;
	•     the PIR terminates when the insured turns 95, and the PIR Plus terminates when the insured turns 90;
	•     the minimum purchase amount for the PIR and PIR Plus is $25,000. There is no maximum purchase amount;
	•     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; and
	•     you may generally decrease your specified amount without reducing your rider coverage.
Conditions to convert the rider:	•     your request must be in writing and sent to our office;
	•     the rider has not reached the anniversary nearest to the primary insured’s 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 specified amount in force under the rider as long as it meets the minimum specified amount requirements of a Base Policy; and
	•     we will base your premium on the primary insured’s rate class under the rider.
Termination of the rider:	The rider will terminate on the earliest of:
	•     the PIR terminates when the insured turns 95, and the PIR Plus terminates when the insured turns 90; or
	•     the date the Policy terminates; or
	•     the date you fully convert the rider; or

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•     the Monthiversary on which you terminate the rider by written request.

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. Any changes to the coverage of one of these riders may affect your minimum monthly guarantee premium.

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.

Living Benefit Rider (an Accelerated Death Benefit)

This rider allows us to pay all or a portion of the death benefit once we receive satisfactory proof 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 (“i” equals the current yield on 90-day Treasury bills or the Policy loan interest rate, 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; or

• 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.

The tax consequences of adding this rider to an existing Policy or requesting payment under the rider are uncertain and you should consult a tax advisor before doing so.

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Additional Information

Sale of the Policies

We will pay sales commissions to our life insurance agents who are registered representatives of broker-dealers. Other payments may be made for other services related to sale of the Policies.

We have entered into a distribution agreement with AFSG for the distribution and sale of the Policies. AFSG is affiliated with us. AFSG may sell the Policies by entering into selling agreements with other broker-dealers who in turn may sell the Policies through their sales representatives.

See “Sale of the Policies” in the SAI for more information concerning compensation paid for the sale of 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 AFSG’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.

Performance Data

Rates of Return

The average rates of return in Table 1 reflect each subaccount’s actual historical investment performance. The total return of a subaccount assumes that an investment has been held in the subaccount for various periods of time, including a period measured from the date the first subaccount of the separate account investing in the underlying portfolios began operations. When the first subaccount investing in the underlying portfolios has been in operation for 1, 3, 5 and 10 years, the total return for these periods will be provided, adjusted to reflect the subaccount charges for this Policy. We do not show performance for subaccounts in operation for less than six months. This information does not represent or project future investment performance.

Some portfolios began operation before their corresponding subaccount. For these portfolios, we have included in Table 2 below adjusted portfolio performance from the portfolio’s inception date. The adjusted portfolio performance is designed to show the performance that would have resulted if the subaccount had been in operation during the time the portfolio was in operation.

The numbers reflect the annual mortality and expense risk charge, investment management fees and direct fund expenses.

These rates of return do not reflect other charges that are deducted under the Policy or from the separate account (such as the premium expense charge or the monthly deduction). If these charges were deducted, performance would be significantly lower. These rates of return are not estimates, projections or guarantees of future performance.

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We also show below comparable figures for the unmanaged Standard & Poor’s Index of 500 Common Stocks (“S&P 500”), a widely used measure of stock market performance. The S&P 500 does not reflect any deduction for the expenses of operating and managing an investment portfolio.

Table 1

Average Annual Subaccount Total Return

For the Periods Ended on December 31, 2003

Subaccount	1 Year		3 Years		5 Years		10 Years or Inception		Subaccount Inception Date
WRL Van Kampen Emerging Growth		27.01%		(17.70)%		0.21%		9.92%	03/01/93
WRL T. Rowe Price Small Cap		39.15%		(3.58)%		N/A		0.03%	07/01/99
WRL Third Avenue Value		36.04%		7.73%		14.00%		10.07%	01/02/98
WRL American Century International		24.17%		(9.71)%		(5.15)%		(1.26)%	01/02/97
WRL Great Companies – TechnologySM		49.61%		(16.92)%		N/A		(22.97)%	05/01/00
WRL Janus Growth†		30.82%		(13.53)%		(6.35)%		7.78%	10/02/86
WRL Marsico Growth		25.21%		(7.87)%		N/A		(4.71)%	07/01/99
WRL Great Companies – AmericaSM		23.56%		(5.45)%		N/A		(1.22)%	05/01/00
WRL Salomon All Cap		33.95%		0.37%		N/A		5.43%	07/01/99
WRL T. Rowe Price Equity Income		25.73%		(1.32)%		N/A		(0.93)%	07/01/99
WRL Transamerica Value Balanced		19.09%		1.08%		2.33%		7.26%	01/03/95
WRL Clarion Real Estate Securities		34.53%		14.98%		13.24%		8.34%	05/01/98
WRL Federated Growth & Income		25.71%		12.99%		11.82%		11.33%	03/01/94
WRL AEGON Bond†		3.35%		6.46%		4.99%		5.25%	10/02/86
WRL Transamerica Money Market(1) † .		(0.11)%		1.15%		2.50%		3.24%	10/02/86
WRL Templeton Great Companies Global		22.15%		(11.86)%		(1.04)%		8.23%	03/01/94
WRL Munder Net50		65.10%		(9.35)%		N/A		1.41%	05/03/99
WRL Asset Allocation – Conservative Portfolio		21.82%		N/A		N/A		5.93%	05/01/02
WRL Asset Allocation – Moderate Portfolio		23.75%		N/A		N/A		4.95%	05/01/02
WRL Asset Allocation – Moderate Growth Portfolio		26.03%		N/A		N/A		3.99%	05/01/02
WRL Asset Allocation – Growth Portfolio		29.63%		N/A		N/A		3.13%	05/01/02
WRL Transamerica Convertible Securities		22.56%		N/A		N/A		7.92%	05/01/02
WRL PIMCO Total Return		3.97%		N/A		N/A		5.75%	05/01/02
WRL Transamerica Equity		30.05%		N/A		N/A		6.43%	05/01/02
WRL Transamerica Growth Opportunities		30.04%		N/A		N/A		1.75%	05/01/02
WRL Transamerica U.S. Government Securities		2.03%		N/A		N/A		4.01%	05/01/02
WRL J.P. Morgan Enhanced Index		27.79%		N/A		N/A		2.21%	05/01/02
WRL Capital Guardian Value		33.38%		N/A		N/A		3.27%	05/01/02
WRL Capital Guardian U.S. Equity		35.28%		N/A		N/A		5.15%	05/01/02
WRL MFS High Yield		N/A		N/A		N/A		9.01%	05/01/03
WRL Mercury Large Cap Value		28.62%		2.10%		5.39%		7.25%	05/01/96
WRL J.P. Morgan Mid Cap Value		30.25%		2.36%		N/A		4.47%	07/01/99
WRL Transamerica Balanced		12.88%		N/A		N/A		3.84%	05/01/02
Potomac Dow 30 Plus Portfolio		N/A		N/A		N/A		21.52%	05/01/03
Potomac OTC Plus Portfolio		N/A		N/A		N/A		25.16%	05/01/03
Access U.S. Government Money Market Portfolio		N/A		N/A		N/A		(0.57)%	05/01/03
Wells S&P REIT Index Portfolio		N/A		N/A		N/A		22.39%	05/01/03
S&P 500†		26.38%		(5.55)%		(1.98)%		9.07%	10/02/86

† Shows ten year performance.

(1) The current yield more closely reflects the current earnings of the subaccount than the total return. An investment in this subaccount is not insured or guaranteed by the FDIC. While this subaccount’s investment in shares of the underlying portfolio seeks to preserve its value at $1.00 per share, it is possible to lose money by investing in this subaccount.

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Because the Fidelity VIP Index 500 Portfolio subaccount commenced operations on November 1, 2003, and the WRL Transamerica Small/Mid Cap Value, Potomac Mid Cap Plus Portfolio, Potomac Small Cap Plus Portfolio, and Potomac U.S./Short Portfolio subaccounts commenced operations on May 1, 2004, the above table does not show rates of return for these subaccounts.

Table 2

Adjusted Historical Portfolio Average Annual Total Return

For the Periods Ended on December 31, 2003

Portfolio	1 Year		3 Years		5 Years		10 Years or Inception		Portfolio Inception Date
Van Kampen Emerging Growth		27.01%		(17.70)%		(0.21)%		9.81%	03/01/93
T. Rowe Price Small Cap		39.15%		(3.58)%		N/A		2.45%	05/03/99
Third Avenue Value		36.04%		7.72%		13.99%		10.06%	01/02/98
American Century International		24.17%		(9.72)%		(5.15)%		(1.27)%	01/02/97
Great Companies – TechnologySM		49.61%		(16.93)%		NA		(22.96)%	05/01/00
Janus Growth†		30.82%		(13.54)%		(6.35)%		7.79%	10/02/86
Marsico Growth		25.21%		(7.88)%		N/A		(3.86)%	05/03/99
Great Companies – AmericaSM (15)		23.56%		(5.46)%		N/A		(1.23)%	05/01/00
Salomon All Cap		33.95%		0.36%		N/A		6.84%	05/03/99
T. Rowe Price Equity Income (9)		24.46%		2.88%		N/A		11.29%	05/03/99
Transamerica Value Balanced (17)		19.09%		0.98%		2.32%		7.26%	01/03/95
Clarion Real Estate Securities		34.53%		14.97%		13.23%		8.33%	05/01/98
Federated Growth & Income		25.71%		12.98%		11.81%		11.30%	03/01/94
AEGON Bond†		3.35%		6.45%		4.98%		5.24%	10/02/86
Transamerica Money Market(1) †		(0.11)%		1.16%		2.46%		3.19%	10/02/86
Templeton Great Companies Global †(11)		22.15%		(11.86)%		(1.05)%		8.23%	12/03/92
Munder Net50		65.10%		(9.35)%		N/A		1.41%	05/03/99
Asset Allocation – Conservative Portfolio		21.82%		N/A		N/A		5.92%	05/01/02
Asset Allocation – Moderate Portfolio		23.75%		N/A		N/A		4.94%	05/01/02
Asset Allocation – Moderate Growth Portfolio		26.03%		N/A		N/A		3.99%	05/01/02
Asset Allocation – Growth Portfolio		29.63%		N/A		N/A		3.13%	05/01/02
Transamerica Convertible Securities		22.56%		N/A		N/A		7.92%	05/01/02
PIMCO Total Return		3.97%		N/A		N/A		5.74%	05/01/02
Transamerica Equity(3)(16) †		30.05%		(6.48)%		(0.01)%		15.53%	02/26/69
Transamerica Growth Opportunities(4)(18)		30.04%		N/A		N/A		8.02%	05/02/01
Transamerica U.S. Government Securities(8)		2.03%		3.67%		3.63%		4.83%	05/13/94
J.P. Morgan Enhanced Index(5)		27.79%		(5.91)%		(2.95)%		4.83%	05/02/97
Capital Guardian Value(6)		33.38%		3.47%		2.17%		9.50%	05/27/93
Capital Guardian U.S. Equity(7)		35.28%		(0.74)%		N/A		(0.44)%	10/09/00
MFS High Yield (10)		16.68%		6.67%		3.80%		2.59%	06/01/98
Mercury Large Cap Value (12)		28.62%		2.09%		5.38%		7.25%	05/01/96
J.P. Morgan Mid Cap Value (13)		30.25%		2.36%		N/A		5.41%	05/03/99
Transamerica Balanced (14)		12.88%		N/A		N/A		3.84%	05/01/02

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Transamerica Small/Mid Cap Value	89.11%	13.13%	15.36%	12.93%	05/04/93
Potomac Dow 30 Plus Portfolio (2)	N/A	N/A	N/A	20.17%	05/01/03
Potomac OTC Plus Portfolio (2)	N/A	N/A	N/A	22.96%	05/01/03
Access U.S. Government Money Market Portfolio (2)	N/A	N/A	N/A	(0.60)%	05/01/03
Wells S&P REIT Index Portfolio (2)	N/A	N/A	N/A	20.27%	05/01/03
Fidelity VIP Index 500 Portfolio	25.26%	(6.35)%	N/A	(7.15)%	01/12/00
S&P 500†	26.38%	(5.55)%	(1.98)%	9.07%	10/02/86

† Shows ten year performance.

(1) The current yield more closely reflects the current earnings of the subaccount than the total return. An investment in this subaccount is not insured or guaranteed by the FDIC. While this subaccount’s investment in shares of the underlying portfolio seeks to preserve its value at $1.00 per share, it is possible to lose money by investing in this subaccount.

(2) Not annualized.

(3) The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Growth Portfolio of Transamerica Variable Insurance Fund, Inc.

(4) The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Small Company Portfolio of Transamerica Variable Insurance Fund, Inc.

(5) The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Endeavor Enhanced Index Portfolio of Endeavor Series Trust.

(6) The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Capital Guardian Value Portfolio of Endeavor Series Trust.

(7) The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Capital Guardian U.S. Equity Portfolio of Endeavor Series Trust.

(8) The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Dreyfus U.S. Government Securities Portfolio of Endeavor Series Trust.

(9) The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, T. Rowe Price equity Income Portfolio of Endeavor Series Trust.

(10) The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Endeavor High Yield Portfolio of Endeavor Series Trust.

(11) Effective May 1, 2004, Templeton Great Companies Global merged into Janus Global and was renamed Templeton Great Companies Global.

(12) Effective May 1, 2004, PBHG/NWQ Value Select was renamed Mercury Large Cap Value.

(13) Effective May 1, 2004, Dreyfus Mid Cap was renamed J.P. Morgan Mid Cap Value.

(14) Effective May 1, 2004, Janus Balanced was renamed Transamerica Balanced.

(15) Effective May 1, 2004, GE U.S. Equity merged into Great Companies – America^SM.

(16) Effective May 1, 2004, Alger Aggressive Growth merged into Transamerica Equity.

(17) Effective May 1, 2004, LKCM Strategic Total Return merged into Transamerica Value Balanced.

(18) Effective May 1, 2004, PBHG Mid Cap Growth merged into Transamerica Growth Opportunities.

Because the Potomac Mid Cap Plus Portfolio, Potomac Small Cap Plus Portfolio and Potomac U.S./Short Portfolio commenced operations on May 1, 2004, the above chart does not show rates of return for these portfolios.

The annualized yield for the WRL Transamerica Money Market subaccount for the seven days ended December 31, 2003 was (0.22)%.

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

Table of Contents of the Statement of Additional Information

Glossary

The Policy – General Provisions

Ownership Rights

Our Right to Contest the Policy

Suicide Exclusion

Misstatement of Age or Gender

Modifying the Policy

Mixed and Shared Funding

Addition, Deletion, or Substitution of Investments

Additional Information

Settlement Options

55

Additional Information about Western Reserve and the Separate Account

Legal Matters

Variations in Policy Provisions

Personalized Illustrations of Policy Benefits

Sale of the Policies

Report to Owners

Records

Independent Auditors

Experts

Financial Statements

Underwriters

Underwriting Standards

IMSA

Performance Data

Other Performance Data in Advertising Sales Literature

Western Reserve’s Published Ratings

Index to Financial Statements

WRL Series Life Account

Western Reserve Life Assurance Co. of Ohio

56

Glossary

accounts	The options to which you can allocate your money. The accounts include the fixed account and the subaccounts in the separate account.
attained age	The issue age of the person insured, plus the number of completed years since the Policy date.
Base Policy	The WRL Freedom Elite Advisor variable life insurance policy without any supplemental riders.
beneficiary(ies)	The person or persons you select to receive the death benefit from this 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. We will reduce the death benefit proceeds by the amount of any outstanding loan amount, including accrued loan interest, and any due and unpaid monthly deductions.
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. New Jersey: For Policies issued in the State of New Jersey, the fixed account is not available to you.
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 that 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.
in force	While coverage under the Policy is active and the insured’s life remains insured.
initial premium	The amount you must pay before insurance coverage begins under this Policy. The initial premium is shown on the schedule page of your Policy.
insured	The person whose life is insured by this 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 deduction and any outstanding loan amount, including accrued loan interest, and you have not made a sufficient payment by the end of a grace period.
loan reserve account	A part of the fixed account to which amounts are transferred as collateral for Policy loans.

57

maturity date	The Policy anniversary nearest the insured’s 100th 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 will adjust the minimum monthly guarantee premium if you change death benefit options, take a cash withdrawal or loan, decrease the specified amount, or add, increase or decrease a rider, and you may need to pay additional premiums in order to keep the no lapse guarantee in place.
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 deduction	The monthly Policy charge, plus the monthly cost of insurance, plus the monthly charge for any riders added to your Policy.
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.
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 outstanding loan amount and accrued loan interest.
no lapse date	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 twentieth Policy anniversary, whichever is earlier. For a Policy issued to an insured ages 61-85, the no lapse date is the fifth Policy anniversary. The no lapse date is specified in your Policy.
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.
office	Our administrative office and mailing address is P.O. Box 5068, Clearwater, Florida 33758-5068. Our street address is 570 Carillon Parkway, St. Petersburg, Florida 33716. Our phone number is 1-800-851-9777. Our hours are Monday - Friday from 8:30 a.m. - 7:00 p.m. Eastern time.
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, the initial premium payment has been received, and we begin to make the monthly deductions. The Policy date is shown on the schedule page of your Policy. If you request, we may backdate a Policy by assigning a Policy date earlier than the date the Policy is issued. We measure Policy months, years, and anniversaries from the Policy date.
portfolio	One of the separate investment portfolios of a fund.
premiums	All payments you make under the Policy other than loan repayments.

58

premium expense level	The amount of premium used to determine the charge applied to premium payments.
reallocation account	That portion of the fixed account where we hold the net premium(s) from the record date until the reallocation date.
reallocation date	The date we reallocate all cash value held in the reallocation account to the fixed account and subaccounts you selected on your application. We place your net premium in the reallocation account only if your state requires us to return the full premium in the event you exercise your free-look right. In those states the reallocation date is the Policy date, plus the number of days in your state’s free-look period, plus five days. In all other states, the reallocation date is the Policy date.
record date	The date we record your Policy on our books as an in force Policy. The record date is generally the Policy date, unless the Policy is backdated.
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 is the amount shown on the Base Policy’s schedule page that you receive when the Policy is issued. The specified amount in force is the initial specified amount, adjusted for any decreases in the Base Policy’s specified amount. Other events such as a request to decrease the specified amount, change in death benefit option or take a cash withdrawal (if you choose Option A death benefit) may also affect the specified amount in force.
subaccount	A subdivision of the separate account that invests exclusively in shares of one investment portfolio of a fund.
termination	When the insured’s life is no longer insured under the Policy.
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.
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 (currently 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 (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 office.
you, your (owner or policyowner)	The person entitled to exercise all rights as owner under the Policy.

59

Appendix A

Premium Expense Level Per Thousand

(Based on the gender and rate class of the insured)

Issue Age	Male Ultimate Select/ Select	Male Ultimate Standard/ Standard	Male/ Female Juvenile	Female Ultimate Select/ Select	Female Ultimate Standard/ Standard
0	N/A	N/A	11.76	N/A	N/A
1	N/A	N/A	8.16	N/A	N/A
2	N/A	N/A	8.16	N/A	N/A
3	N/A	N/A	7.92	N/A	N/A
4	N/A	N/A	7.68	N/A	N/A
5	N/A	N/A	7.68	N/A	N/A
6	N/A	N/A	7.68	N/A	N/A
7	N/A	N/A	7.68	N/A	N/A
8	N/A	N/A	7.68	N/A	N/A
9	N/A	N/A	7.68	N/A	N/A
10	N/A	N/A	7.68	N/A	N/A
11	N/A	N/A	7.68	N/A	N/A
12	N/A	N/A	7.68	N/A	N/A
13	N/A	N/A	7.92	N/A	N/A
14	N/A	N/A	8.16	N/A	N/A
15	N/A	N/A	8.40	N/A	N/A
16	N/A	N/A	8.52	N/A	N/A
17	N/A	N/A	8.88	N/A	N/A
18	8.72	9.20		8.72	9.20
19	8.84	9.32		8.84	9.32
20	8.96	9.44		8.96	9.44
21	9.16	9.88		9.16	9.64
22	9.32	10.04		9.32	9.80
23	9.52	10.24		9.52	10.00
24	9.68	10.40		9.68	10.40
25	9.88	10.84		9.88	10.60
26	10.56	11.28		10.32	11.04
27	11.00	11.72		10.76	11.48
28	11.40	12.12		11.16	12.12
29	12.08	12.80		11.84	12.56
30	12.52	13.24		12.28	13.00
31	13.04	14.00		12.80	13.52
32	13.76	14.48		13.52	14.24
33	14.28	15.24		14.04	14.76
34	14.76	15.96		14.52	15.48
35	15.52	16.48		15.28	16.00
36	16.20	17.40		15.96	16.92
37	17.20	18.40		16.72	17.92
38	18.12	19.56		17.64	18.60
39	19.08	20.76		18.36	19.56

60

Issue Age	Male Ultimate Select/ Select	Male Ultimate Standard/ Standard	Female Ultimate Select/ Select	Female Ultimate Standard/ Standard
40	20.28	21.96	19.32		20.52
41	21.64	23.56	20.68		22.12
42	23.08	25.24	22.12		23.80
43	24.44	27.08	23.72		25.40
44	26.04	29.16	25.08		27.00
45	27.44	31.04	26.48		28.64
46	28.72	32.80	27.52		30.16
47	30.00	34.56	28.80		31.92
48	31.28	36.32	29.84		33.44
49	33.04	38.32	31.12		35.20
50	34.56	40.56	32.40		36.96
51	36.32	42.56	33.68		38.72
52	38.04	45.24	35.64		40.92
53	40.00	47.68	37.36		43.36
54	41.72	50.84	39.32		45.56
55	44.08	54.16	41.44		48.64
56	47.04	58.08	44.40		52.08
57	50.68	62.44	47.32		56.44
58	53.76	66.48	49.68		59.76
59	55.68	69.36	50.64		61.68
60	60.08	74.00	54.08		65.84
61	64.80	79.04	58.24		70.56
62	69.60	84.08	62.48		75.12
63	74.40	89.12	66.72		79.68
64	79.20	94.16	70.96		84.24
65	84.00	99.20	75.20		88.80
66	87.60	104.24	78.68		93.36
67	91.20	109.28	82.16		97.92
68	94.80	114.32	85.64		102.48
69	98.40	119.36	89.12		107.04
70	102.00	124.40	92.60		111.60
71	105.60	129.44	96.08		116.16
72	109.20	134.48	99.56		120.72
73	112.80	139.52	103.04		125.28
74	116.40	144.56	106.52		129.84
75	120.00	149.60	110.00		134.40
76	126.00	154.64	115.00		138.96
77	132.00	159.68	120.00		143.52
78	138.00	164.72	125.00		148.08
79	144.00	169.76	130.00		152.64
80	150.00	174.80	135.00		157.20
81	156.00	179.84	140.00		161.76
82	162.00	184.88	145.00		166.32
83	168.00	189.92	150.00		170.88
84	174.00	194.96	155.00		175.44
85	180.00	200.00	160.00		180.00

61

Appendix B

Illustrations

The following illustrations show how certain values under a sample Policy would change with different rates of fictional investment performance over an extended period of time. In particular, the illustrations show how the death benefit, cash value, and net surrender value under a Policy issued to an insured of a given age, would change over time if the premiums indicated were paid and the return on the assets in the subaccounts were a uniform gross annual rate (before any expenses) of 0%, 6% or 10%. The tables illustrate Policy value that would result based on assumptions that you pay the premiums indicated, you do not change your specified amount, and you do not take any cash withdrawals or Policy loans. The values under the Policy will be different from those shown even if the returns averaged 0%, 6% or 10%, but fluctuated over and under those averages throughout the years shown.

We based the illustration on page 63 on a Policy for an insured who is a 30 year old male in the Ultimate Select rate class, annual premium paid on the first day of each Policy year of $2,500, a $300,000 initial specified amount and death benefit Option A. The illustration on that page also assumes cost of insurance charges based on our current cost of insurance rates.

The illustration on page 64 is based on the same factors of those on page 63, except the cost of insurance charges are based on the guaranteed cost of insurance rates and expenses (based on the 1980 Commissioners Standard Ordinary Mortality Table).

The amounts we show for the death benefits, cash values and net surrender values take into account all Policy, subaccount and portfolio fees assessed under the Policy and the timing of those charges. The current illustration uses the current charges for a Policy, and the guaranteed illustration uses the guaranteed charges for a Policy. These fees are:

(1) the daily charge for assuming mortality and expense risks assessed against each subaccount. This charge is equivalent to an annual charge of 0.90% of the average net assets of the subaccounts during the first 15 Policy years. We intend to reduce this charge to 0.75% in the 16^th Policy year, but we do not guarantee that we will do so, and we reserve the right to maintain this charge at the 0.90% level after the 15^th Policy year;

(2) estimated daily expenses equivalent to an effective arithmetic average annual expense level of 0.92% of the portfolios’ gross average daily net assets. The 0.92% gross average portfolio expense level assumes an equal allocation of amounts among the 42 subaccounts. We used annualized actual audited expenses incurred during 2003 for the portfolios to calculate the gross average annual expense level; and

(3) the premium expense charge (10.0% of cumulative premiums paid in each Policy year up to the premium expense level and 3.0% of all premiums in excess of the premium expense level during the first ten Policy years, and 3.0% of all premiums paid thereafter) and cash value charges using the current monthly Policy charge.

The hypothetical returns shown in the tables are provided only to illustrate the mechanics of a hypothetical policy and do not represent past or future investment rates of return. Tax charges that may be attributable to the separate account are not reflected because we are not currently making such charges. In order to produce after tax returns of 0%, 6% or 10% if such charges are made in the future, the separate account would have to earn a sufficient amount in excess of 0%, 6% or 10% or cover any tax charges. Your actual rates of return for a particular Policy likely will be more or less than the hypothetical investment rates of return. The actual return on your cash value will depend on factors such as the amounts you allocate to particular portfolios, the amounts deducted for the Policy’s monthly charges and other charges, the portfolios’ expense ratios, and your loan and withdrawal history, in addition to the actual investment experience of the portfolios.

We will furnish the owner, upon request, a personalized illustration reflecting the proposed insured’s age, gender, risk classification and desired Policy features. Contact your registered representative or our office. (See prospectus back cover – Inquiries.)

62

WRL FREEDOM ELITE ADVISOR

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE

HYPOTHETICAL ILLUSTRATIONS

MALE ISSUE AGE 30

Specified Amount   $300,000	Ultimate Select Class
Annual Premium    $2,500	Option Type A

Using Current Cost of Insurance Rates

	DEATH BENEFIT			CASH VALUE
	Assuming Hypothetical Gross and Net Annual Investment Return of			Assuming Hypothetical Gross and Net Annual Investment Return of
End of Policy	0% (Gross)	6% (Gross)	10% (Gross)	0% (Gross)	6% (Gross)	10% (Gross)
Year	-.92% (Net)	5.08% (Net)	9.08% (Net)	-.92% (Net)	5.08% (Net)	9.08% (Net)
1	300,000	300,000	300,000	1,741	1,861	1,941
2	300,000	300,000	300,000	3,447	3,796	4,038
3	300,000	300,000	300,000	5,116	5,807	6,299
4	300,000	300,000	300,000	6,751	7,898	8,744
5	300,000	300,000	300,000	8,352	10,073	11,385
6	300,000	300,000	300,000	9,909	12,325	14,230
7	300,000	300,000	300,000	11,429	14,664	17,299
8	300,000	300,000	300,000	12,907	17,086	20,608
9	300,000	300,000	300,000	14,349	19,602	24,181
10	300,000	300,000	300,000	15,734	22,194	28,019
15	300,000	300,000	300,000	22,535	37,289	53,043
20	300,000	300,000	300,000	27,731	55,022	89,525
25	300,000	300,000	300,000	32,568	77,265	145,350
30 (Age 60)	300,000	300,000	307,010	36,128	104,340	229,112
35 (Age 65)	300,000	300,000	432,423	37,675	137,057	354,445
40 (Age 70)	300,000	300,000	626,545	35,994	176,624	540,125
45 (Age 75)	300,000	300,000	873,427	30,594	225,871	816,287
50 (Age 80)	300,000	303,224	1,289,536	18,030	288,785	1,228,129
55 (Age 85)	*	386,596	1,928,513	*	368,186	1,836,679
60 (Age 90)	*	487,682	2,868,179	*	464,459	2,731,599
65 (Age 95)	*	589,585	4,105,036	*	583,748	4,064,392
70 (Age 100)	*	734,883	6,078,718	*	734,883	6,078,718

	NET SURRENDER VALUE
	Assuming Hypothetical Gross and Net Annual Investment Return of
End of Policy	0% (Gross)	6% (Gross)	10% (Gross)	End of Policy	0% (Gross)	6% (Gross)	10% (Gross)
Year	-.92% (Net)	5.08% (Net)	9.08% (Net)	Year	-.92% (Net)	5.08% (Net)	9.08% (Net)
1	1,741	1,861	1,941	20	27,731	55,022	89,749
2	3,447	3,796	4,038	25	32,568	77,265	145,350
3	5,116	5,807	6,299	30 (Age 60)	36,128	104,340	229,112
4	6,751	7,898	8,744	35 (Age 65)	37,675	137,057	354,445
5	8,352	10,073	11,385	40 (Age 70)	35,994	176,624	540,125
6	9,909	12,325	14,230	45 (Age 75)	30,594	225,871	816,287
7	11,429	14,664	17,299	50 (Age 80)	18,030	288,785	1,228,129
8	12,907	17,086	20,608	55 (Age 85)	*	368,186	1,836,679
9	14,349	19,602	24,181	60 (Age 90)	*	464,459	2,731,599
10	15,734	22,194	28,019	65 (Age 95)	*	583,748	4,064,392
15	22,535	37,289	53,043	70 (Age 100)	*	734,883	6,078,718

* In the absence of an additional payment, the Policy would lapse.

63

WRL FREEDOM ELITE ADVISOR

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE

HYPOTHETICAL ILLUSTRATIONS

MALE ISSUE AGE 30

Specified Amount   $300,000	Ultimate Select Class
Annual Premium    $2,500	Option Type A

Using Guaranteed Cost of Insurance Rates

	DEATH BENEFIT			CASH VALUE
	Assuming Hypothetical Gross and Net Annual Investment Return of			Assuming Hypothetical Gross and Net Annual Investment Return of
End of Policy	0%(Gross)	6%(Gross)	10%(Gross)	0%(Gross)	6%(Gross)	10%(Gross)
Year	-.92%(Net)	5.08%(Net)	9.08%(Net)	-.92%(Net)	5.08%(Net)	9.08%(Net)
1	300,000	300,000	300,000	1,706	1,824	1,903
2	300,000	300,000	300,000	3,335	3,678	3,915
3	300,000	300,000	300,000	4,928	5,603	6,085
4	300,000	300,000	300,000	6,479	7,596	8,421
5	300,000	300,000	300,000	7,988	9,659	10,934
6	300,000	300,000	300,000	9,449	11,787	13,633
7	300,000	300,000	300,000	10,862	13,985	16,534
8	300,000	300,000	300,000	12,221	16,247	19,645
9	300,000	300,000	300,000	13,524	18,573	22,983
10	300,000	300,000	300,000	14,767	20,962	26,561
15	300,000	300,000	300,000	20,803	34,809	49,837
20	300,000	300,000	300,000	24,747	50,277	83,030
25	300,000	300,000	300,000	25,748	66,944	130,807
30 (Age 60)	300,000	300,000	300,000	21,847	83,486	200,715
35 (Age 65)	300,000	300,000	372,665	9,741	97,711	305,463
40 (Age 70)	*	300,000	529,956	*	104,862	456,859
45 (Age 75)	*	300,000	723,808	*	94,984	676,456
50 (Age 80)	*	300,000	1,049,828	*	40,204	999,836
55 (Age 85)	*	*	1,529,219	*	*	1,456,399
60 (Age 90)	*	*	2,187,589	*	*	2,083,418
65 (Age 95)	*	*	3,030,493	*	*	3,000,488
70 (Age 100)	*	*	4,460,271	*	*	4,460,271

	NET SURRENDER VALUE
	Assuming Hypothetical Gross and Net Annual Investment Return of
End of Policy	0%(Gross)	6%(Gross)	10%(Gross)	End of Policy	0%(Gross)	6%(Gross)	10%(Gross)
Year	-.92%(Net)	5.08%(Net)	9.08%(Net)	Year	-.92%(Net)	5.08%(Net)	9.08%(Net)
1	1,706	1,824	1,903	20	24,747	50,277	83,030
2	3,335	3,678	3,915	25	25,748	66,944	130,807
3	4,928	5,603	6,085	30 (Age 60)	21,847	83,486	200,715
4	6,479	7,596	8,421	35 (Age 65)	9,741	97,711	305,463
5	7,988	9,659	10,934	40 (Age 70)	*	104,862	456,859
6	9,449	11,787	13,633	45 (Age 75)	*	94,984	676,456
7	10,862	13,985	16,534	50 (Age 80)	*	40,204	999,836
8	12,221	16,247	19,645	55 (Age 85)	*	*	1,456,399
9	13,524	18,573	22,983	60 (Age 90)	*	*	2,083,418
10	14,767	20,962	26,561	65 (Age 95)	*	*	3,000,488
15	20,803	34,809	49,837	70 (Age 100)	*	*	4,460,271

* In the absence of an additional payment, the Policy would lapse.

64

Prospectus 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, cash 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. You may request illustrations that reflect the expenses of the portfolios in which you intend to invest.

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. The table of contents of the SAI is included near the end of this prospectus.

For a free copy of the SAI, for other information about the Policy, and to obtain personalized illustrations, please contact your agent, or our office at:

Western Reserve Life

P.O. Box 5068

Clearwater, Florida 33758-5068

1-800-851-9777

Facsimile: 1-727-299-1648

(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 202-942-8090. 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 450 Fifth Street, NW, Washington, D.C. 20549-0102. The Registrant’s file numbers are listed below.

SEC File No. 333-100993/811-4420

AG08700-05/2004

65

PART B

INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION

SUPPLEMENT DATED OCTOBER 1, 2014

TO STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 2004

FOR

WRL FREEDOM ELITE ADVISOR

An Individual Flexible Premium Variable Life Insurance Policy

Issued through

WRL Series Life Account

By

Transamerica Premier Life Insurance Company

This Supplement modifies certain information contained in your WRL Freedom Elite Advisor^SM Statement of Additional Information (“SAI”). Please read it carefully and retain it for future reference. All terms that are not defined in this supplement shall have the same meanings as the same terms used in the SAI.

The Merger. Effective on or about October 1, 2014, Western Reserve Life Assurance Co. of Ohio (“WRL” or “Western Reserve”) merged with and into its affiliate, Transamerica Premier Life Insurance Company (“TPLIC” or “Transamerica Premier”) (prior to July 31, 2014, known as Monumental Life Insurance Company). Before the Merger, your Policy was issued by WRL. Upon consummation of the Merger, WRL’s corporate existence ceased by operation of law, and TPLIC assumed legal ownership of all of the assets of WRL, including the separate account funding the Policies, and the assets of the separate account. As a result of the Merger, TPLIC became responsible for all liabilities and obligations of WRL, including those created under the Policies. The Policies have thereby become flexible premium variable life insurance policies funded by a separate account of TPLIC. Accordingly, all references in the SAI to Western Reserve Life Assurance Co. of Ohio are amended to refer to Transamerica Premier Life Insurance Company.

Please Note: Upon receipt of all regulatory approvals, anticipated to be by year-end, the link for all electronic transactions will change from www.westernreserve.com to www.premier.transamerica.com

* * * * * *

The following replaces the section “Additional Information – Additional Information about Western Reserve and the Separate Account”:

Additional Information about Transamerica Premier and the Separate Account

Transamerica Premier Life Insurance Company (“Transamerica Premier”) was originally founded in 1858 in the state of Maryland as “Maryland Mutual Life and Fire Insurance Company of Baltimore” and was the state’s first insurance company; it then changed its name to Monumental Life Insurance Company in 1935. Monumental Life Insurance Company changed its name to Transamerica Premier Life Insurance Company on July 31, 2014. Transamerica Premier is incorporated under Iowa law and is principally engaged in offering life insurance policies and annuity contracts. Transamerica Premier is licensed to sell insurance in all states (except New York), Puerto Rico, Guam, and in the District of Columbia. Transamerica Premier 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.

Transamerica Premier established the separate account as a separate investment account under Ohio law in 1985 and the separate account was re-domesticated to Iowa in 2014. Transamerica Premier owns the assets in the separate account and is obligated to pay all benefits under the Policies. The

separate account is used to support other life insurance policies of Transamerica Premier, 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.

Transamerica Premier holds the assets of the separate account physically segregated and apart from the general account. Transamerica Premier 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 Transamerica Premier. 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.

* * * * * *

The following information replaces the paragraph under the heading “Additional Information – Legal Matters”:

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

* * * * * *

The following updates the section “Additional Information - Sale of the Policies”:

The Policies are no longer sold to new purchasers.

* * * * * *

The following replaces the section entitled “Additional Information - Independent Auditors”:

Independent Public Accounting Firm

The financial statements of the separate account at December 31, 2013, and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Transamerica Premier and Western Reserve Life Assurance Co. of Ohio (“Western Reserve”) at December 31, 2013 and 2012 (restated for Western Reserve), and for each of the three years in the period ended December 31, 2013, 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.

* * * * * *

The following replaces the section entitled “Additional Information - Financial Statements”:

Western Reserve and Transamerica Premier’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 Transamerica Premier’s ability to meet its 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.

2

Western Reserve’s and Transamerica Premier’s statutory-basis financial statements and schedules at December 31, 2013 and 2012 (restated for Western Reserve) and for each of the three years in the period ended December 31, 2013, have been prepared on the basis of statutory accounting principles rather than U.S. generally accepted accounting principles.

Unaudited pro forma combined financial statements showing the effects of the merger of Western Reserve and Transamerica Premier are also included on the following pages.

The separate account’s financial statements for the period ended December 31, 2013, which include the Report of Independent Registered Public Accounting Firm, also appear on the following pages.

3

UNAUDITED PRO FORMAS

Pro Forma Unaudited Consolidated Statutory Balance Sheet and Income Statement

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

Effective on or about October 1, 2014, Western Reserve Life Assurance Co. of Ohio (WRL) will merge with and into its affiliate, Transamerica Premier Life Insurance Company (TPLIC), f.k.a. Monumental Life Insurance Company. Upon consummation of the merger, WRL’s corporate existence will cease by operation of law, whereby TPLIC will assume legal ownership of all of the assets and responsibility for all of the liabilities and obligations of WRL. The accompanying unaudited pro forma condensed combined statutory basis financial statements have been prepared in accordance with statutory accounting principles, which includes the balance sheet as of December 31, 2013 and income statements for the years ended 2013, 2012 and 2011 in a combined manner, as if the two entities had merged. Accordingly, they do not include all the information and notes required by accounting principles generally accepted in the United States for complete financial statements.

The unaudited pro forma condensed financial data is not intended to represent or to be indicative of our consolidated results of operations or financial position that we would have reported had the merger occurred as of the dates presented, and should not be taken as a representation of our future consolidated results of operations or financial position. The unaudited pro forma condensed combined financial statements do not reflect any operating efficiencies and/or cost savings that we may achieve with respect to the combined companies.

The unaudited pro forma condensed financial data should be read in conjunction with the historical financial statements and accompanying notes of WRL and Monumental Life Insurance Company (renamed TPLIC), which are included in this registration statement.

P-1

Pro Forma Unaudited Consolidated Statutory Balance Sheet

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

As of December 31, 2013

										TPLIC (MLIC)
										Dec 31, 2013
			WRL		TPLIC (MLIC)		Eliminations		Reference	Totals
ASSETS
1.	Bonds		$	1,448,053,453	$	12,381,999,416	$	0		$	13,830,052,869
2.	Stocks:
	2.1	Preferred stocks		0		9,540,762					9,540,762
	2.2	Common stocks		35,347,839		62,267,638					97,615,477
3.	Mortgage loans on real estate:
	3.1	First liens		77,804,931		1,692,859,515					1,770,664,446
	3.2	Other than first liens		0		0					0
4.	Real estate
	4.1	Properties occupied by the company		27,382,074		0					27,382,074
	4.2	Properties held for production of income		0		384,967					384,967
	4.3	Properties held for sale		6,259,139		6,900,282					13,159,421
5.	Cash, cash equivalents and short-term investments			110,546,907		558,922,981					669,469,888
6.	Contract loans (including $ 0 premium notes)			442,799,902		470,548,651					913,348,553
7.	Derivatives			0		186,389,116					186,389,116
8.	Other invested assets			3,011,913		796,355,167					799,367,080
9.	Receivable for securities			0		62					62
10.	Securities lending reinvested collateral assets			88,265,219		322,209,041					410,474,260
11.	Aggregate write-ins for invested assets			0		9,006,454					9,006,454
12.	Subtotals, cash and invested assets (Lines 1 to 9)			2,239,471,377		16,497,384,052		0			18,736,855,429
13.	Title plants less $0 charged off (for Title insurers only)			0		0		0			0
14.	Investment income due and accrued			17,360,751		166,253,130					183,613,881
15.	Premiums and considerations:
	15.1	Uncollected premiums and agents’ balances in course of collection		102,285		46,971,091					47,073,376
	15.2	Deferred premiums, agents’ balances and installments booked but deferred and not yet due (including $0 earned but unbilled premiums)		2,662,663		131,157,528					133,820,191
	15.3.	Accrued retrospective premiums		0		0					0
16.	Reinsurance:
	16.1	Amounts recoverable from reinsurers		1,909,962		6,374,104					8,284,066
	16.2	Funds held by or deposited with reinsured companies		0		0					0
	16.3	Other amounts receivable under reinsurance contracts		0		12,333,424					12,333,424
17.	Amounts receivable relating to uninsured plans			0		0					0
18.1	Current federal and foreign income tax recoverable and interest thereon			0		5,495,809					5,495,809
18.2	Net deferred tax asset			86,384,460		162,711,377					249,095,837
19.	Guaranty funds receivable or on deposit			943,953		3,242,833					4,186,786
20.	Electronic data processing equipment and software			0		0					0
21.	Furniture and equipment, including health care delivery assets ($0)			0		0					0
22.	Net adjustment in assets and liabilities due to foreign exchange rates			0		0					0
23.	Receivable from parent, subsidiaries and affiliates			19,858,988		57,107,606					76,966,594
24.	Health care ($0) and other amounts receivable			0		0					0
25.	Aggregate write-ins for other than invested assets			82,148,235		264,540,509		0			346,688,744
26.	Total assets excluding Separate Accounts business (Lines 12 to 25)			2,450,842,674		17,353,571,463		0			19,804,414,137
27.	From Separate Accounts Statement			6,969,476,743		14,526,002,778		0			21,495,479,521
28.	Total (Lines 27 and 28)		$	9,420,319,417	$	31,879,574,241	$	0		$	41,299,893,658
DETAILS OF ASSET WRITE-INS (Line 11)
Receivable for derivative cash collateral			$	0	$	219,679	$	0		$	219,679
Invested asset collateral balance				0	$	8,786,775				$	8,786,775
TOTAL OF ASSETS WRITE-INS FOR LINES 11			$	0	$	9,006,454	$	0		$	9,006,454
DETAILS OF ASSET WRITE-INS (Line 25)
Accounts receivable			$	5,846,847	$	41,164,204	$	0		$	47,011,051
Contribution receivable from parent				0		135,000,000					135,000,000
Estimated premium tax offsets related to the provision for future GFA				222,285		847,186					1,069,471
Investment receivable				37,483		752,104					789,587
Company owned life insurance				75,881,155		79,732,778					155,613,933
Goodwill				0		6,582,224					6,582,224
State transferable tax credits				160,465		462,013					622,478
TOTAL OF ASSETS WRITE-INS FOR LINES 25			$	82,148,235	$	264,540,509	$	0		$	346,688,744

P-2

Pro Forma Unaudited Consolidated Statutory Balance Sheet

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

As of December 31, 2013

													TPLIC (MLIC)
													Dec 31, 2013
			WRL			TPLIC (MLIC)			Eliminations			Reference	Totals
LIABILITIES
1.	Aggregate reserve for life contracts		$	1,909,589,432		$	9,259,113,572		$	0			$	11,168,703,004
2.	Aggregate reserve for accident and health contracts			1,157,547			716,358,263							717,515,810
3.	Liability for deposit-type contracts			21,519,616			675,894,726							697,414,342
4.	Contract claims:
	4.1	Life		25,085,544			127,458,689							152,544,233
	4.2	Accident and health		0			110,668,627							110,668,627
5.	Policyholders’ dividends and coupons due and unpaid			0			75,358							75,358
6.	Provision for policyholders’ dividends and coupons payable in following calendar year-estimated amounts:
	6.1	Dividends apportioned for payment to December 31, 2005		0			1,293,678							1,293,678
	6.2	Dividends not yet apportioned		0			0							0
	6.3	Coupons and similar benefits		0			0							0
7.	Amount provisionally held for deferred dividend policies not included in Line 6			0			0							0
8.	Premiums and annuity considerations for life and accident and health contracts received in advance less discount			34,996			5,226,469							5,261,465
9.	Contract liabilities not included elsewhere:
	9.1	Surrender values on canceled contracts		0			0							0
	9.2	Provision for experience rating refunds		0			6,735,207							6,735,207
	9.3	Other amounts payable on reinsurance		2,408,262			2,949,115							5,357,377
	9.4	Interest Maintenance Reserve		25,813,207			302,887,952							328,701,159
10.	Commissions to agents due or accrued			74,671			22,153,370							22,228,041
11.	Commissions and expense allowances payable on reinsurance assumed			—			1,870,790							1,870,790
12.	General expenses due or accrued			6,446,238			5,113,171							11,559,409
13 .	Transfers to Separate Accounts due or accrued			(212,707,836	)		(2,957,359	)						(215,665,195	)
14.	Taxes, licenses and fees due or accrued, excluding federal income taxes			4,350,885			23,288,386							27,639,271
15.1.	Current federal and foreign income taxes			17,160,329			0							17,160,329
15.2.	Net deferred tax liability			0			0							0
16.	Unearned investment income			9,736,113			5,639,380							15,375,493
17.	Amounts withheld or retained by company as agent or trustee			944,020			36,161,821							37,105,841
18.	Amounts held for agents’ account, including agents’ credit balance			120,119			1,072,781							1,192,900
19.	Remittances and items not allocated			10,776,233			4,159,410							14,935,643
20.	Net adjustment in assets and liabilities due to foreign exchange rates			0			0							0
21.	Liability for benefits for employees and agents if not included above			0			0							0
22.	Borrowed money and interest thereon			26,717,773			53,453,126							80,170,899
23.	Dividends to stockholders declared and unpaid			0			0							0
24.	Miscellaneous liabilities:
	24.1	Asset valuation reserve		17,642,203			243,971,748							261,613,951
	24.2	Reinsurance in unauthorized companies		0			1,979,758							1,979,758
	24.3	Funds held under reinsurance treaties with unauthorized reinsurers		78,160,850			4,274,528,544							4,352,689,394
	24.4	Payable to parent, subsidiaries and affiliates		0			0							0
	24.5	Drafts outstanding		0			0							0
	24.6	Liability for amounts held under uninsured accident and health plans		0			0							0
	24.7	Funds held under coinsurance		0			(17,903	)						(17,903	)
	24.8	Derivatives		4,100,401			25,231,400							29,331,801
	24.9	Payable for securities		8,000,000			177							8,000,177
	24.10	Payable for securities lending		88,265,219			322,209,046							410,474,265
	24.11	Capital notes and interest thereon		0			0							0
25.	Aggregate write-ins for liabilities			0			155,827,442			0				155,827,442
26.	Total liabilities excluding Separate Accounts business (Lines 1-25)			2,045,395,822			16,382,346,744			0				18,427,742,566
27.	From Separate Accounts Statement			6,969,476,743			14,526,002,778			0				21,495,479,521
28.	Total liabilities (Line 26 and 27)		$	9,014,872,565		$	30,908,349,522		$	0			$	39,923,222,087
DETAILS OF LIABILITIES WRITE-INS (Line 25)
Payable for derivative cash collateral			$	0		$	150,114,562		$	0			$	150,114,562
Deferred derivative gain/loss				0			3,616,019							3,616,019
Synthetic GICs and provision for liquidity reserves				0			1,296,861							1,296,861
Interest payable on surplus notes				0			800,000							800,000
TOTAL OF LIABILITIES WRITE-INS FOR LINE 25			$	0		$	155,827,442		$	0			$	155,827,442
SURPLUS AND OTHER FUNDS
29.	Common capital stock		$	2,500,000		$	10,137,150		$	(2,500,000	)	A	$	10,137,150
30.	Preferred capital stock			0			0			0				0
31.	Aggregate write-ins for other than special surplus funds			0			0							0
32.	Surplus notes			0			160,000,000							160,000,000
33.	Gross paid in and contributed surplus			149,627,109			757,198,973			2,500,000		A		909,326,082
34.	Aggregate write-ins for special surplus funds			0			0							0
35.	Unassigned funds (surplus)			253,319,743			43,888,596			0				297,208,339
36.	Less treasury stock, at cost:
	36.1	Common shares		0			0							0
	36.2	Preferred shares		0			0							0
37.	Surplus (Total lines 31+32+33+34+35-36)			402,946,852			961,087,569			2,500,000				1,366,534,421
38.	Totals of Lines 29, 30 and 37			405,446,852			971,224,719			0				1,376,671,571
39.	Totals of Lines 28 and 38 (Liabilities and Surplus)		$	9,420,319,417		$	31,879,574,241		$	0			$	41,299,893,658

* This balance sheet is an unaudited consolidation of the December 31, 2013 NAIC Annual Statement balance sheets for Western Reserve Life Assurance Co. of Ohio and Monumental Life Insurance Company.

P-3

Pro Forma Unaudited Consolidated Statutory Income Statement

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

For Year Ending December 31, 2013

											TPLIC (MLIC)
											Dec 31, 2013
		WRL			TPLIC (MLIC)			Eliminations		Reference	Totals
1	Premiums and annuity considerations for life and accident and health contracts	$	538,421,190		$	1,586,270,078		$	0		$	2,124,691,268
2	Considerations for supplementary contracts with life contingencies		2,669,815			120,206,309						122,876,124
3	Net investment income		92,490,364			729,328,837						821,819,201
4	Amortization of Interest Maintenance Reserve (IMR)		767,365			15,572,471						16,339,836
5	Separate Accounts net gain from operations excluding unrealized gains or losses		0			0						0
6	Commissions and expense allowances on reinsurance ceded		(15,256,488	)		209,399,681						194,143,193
7	Reserve adjustments on reinsurance ceded		(13,389,610	)		(226,237,769	)					(239,627,379	)
8	Miscellaneous Income:
8.1	Income from fees associated with investment management, administration and contract guarantees from Separate Accounts		291,415,707			40,882,844						332,298,551
8.2	Charges and fees for deposit-type contracts		0			0						0
8.3	Aggregate write-ins for miscellaneous income		23,275,893			15,358,736			0			38,634,629
9	Totals (Lines 1 to 8.3)		920,394,236			2,490,781,187			0			3,411,175,423
10	Death benefits		70,180,365			239,620,179						309,800,544
11	Matured endowments (excluding guaranteed annual pure endowments)		20,665			9,689,204						9,709,869
12	Annuity benefits		19,270,127			313,063,790						332,333,917
13	Disability benefits and benefits under accident and health contracts		1,580,884			272,277,322						273,858,206
14	Coupons, guaranteed annual pure endowments and similar benefits		0			0						0
15	Surrender benefits and withdrawals for life contracts		541,358,940			1,019,521,589						1,560,880,529
16	Group conversions		0			0						0
17	Interest and adjustments on contract or deposit-type contract funds		475,650			40,362,252						40,837,902
18	Payments on supplementary contracts with life contingencies		3,276,454			34,080,716						37,357,170
19	Increase in aggregate reserves for life and accident and health contracts		127,763,858			(57,398,129	)		0			70,365,729
20	Totals (Lines 10 to 19)		763,926,943			1,871,216,923			0			2,635,143,866
21	Commissions on premiums, annuity considerations and deposit-type contract funds		155,583,798			275,345,715						430,929,513
22	Commissions and expense allowances on reinsurance assumed		0			42,743,256						42,743,256
23	General insurance expenses		72,084,952			220,220,369						292,305,321
24	Insurance taxes, licenses and fees, excluding federal income taxes		18,954,377			46,267,149						65,221,526
25	Increase in loading on deferred and uncollected premiums		77,142			(2,835,678	)					(2,758,536	)
26	Net transfers to or (from) Separate Accounts net of reinsurance		(280,807,082	)		(312,793,145	)					(593,600,227	)
27	Aggregate write-ins for deductions		16,255,075			147,145,291			0			163,400,366
28	Totals (Lines 20 to 27)		746,075,205			2,287,309,880			0			3,033,385,085
29	Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)		174,319,031			203,471,307			0			377,790,338
30	Dividends to policyholders		20,746			1,258,647						1,279,393
31	Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30)		174,298,285			202,212,660			0			376,510,945
32	Federal and foreign income taxes incurred (excluding tax on capital gains)		25,591,702			23,987,115						49,578,817
33	Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32)		148,706,583			178,225,545			0			326,932,128
34	Net realized capital gains or (losses) less capital gains tax and transferred to the IMR		11,102,563			(11,351,095	)					(248,532	)
35	Net income (Line 33 plus Line 34)	$	159,809,146		$	166,874,450		$	0		$	326,683,596

P-4

Pro Forma Unaudited Consolidated Statutory Income Statement

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

For Year Ending December 31, 2013

												TPLIC (MLIC)
												Dec 31, 2013
		WRL			TPLIC (MLIC)			Eliminations			Reference	Totals
CAPITAL AND SURPLUS ACCOUNT
36	Capital and surplus, December 31, prior year	$	338,415,864		$	811,320,218		$	0			$	1,149,736,082
37	Net income (Line 35)		159,809,146			166,874,450							326,683,596
38	Change in net unrealized capital gains (losses)		4,188,807			96,957,088							101,145,895
39	Change in net unrealized foreign exchange capital gain (loss)		0			(1,426,888	)						(1,426,888	)
40	Change in net deferred income tax		(14,828,899	)		1,497,207							(13,331,692	)
41	Change in nonadmitted assets and related items		(11,137,898	)		3,579,313							(7,558,585	)
42	Change in liability for reinsurance in unauthorized companies		264,898			187,382							452,280
43	Change in reserve on account of change in valuation basis, (increase) or decrease		0			0							0
44	Change in asset valuation reserve		(5,603,238	)		(51,980,043	)						(57,583,281	)
45	Change in treasury stock		0			0							0
46	Surplus (contributed to) withdrawn from Separate Accounts during period		0			0							0
47	Other changes in surplus in Separate Accounts Statement		0			0							0
48	Change in surplus notes		0			0							0
49	Cumulative effect of changes in accounting principles		0			0							0
50	Capital changes:
50.1	Paid in		0			0			(2,500,000	)	A		(2,500,000	)
50.2	Transferred from surplus (Stock Dividend)		0			0							0
50.3	Transferred to surplus		0			0							0
51	Surplus adjustment:
51.1	Paid in		0			135,925,882			2,500,000		A		138,425,882
51.2	Transferred to capital (Stock Dividend)		0			0							0
51.3	Transferred from capital		0			0							0
51.4	Change in surplus as a result of reinsurance		(15,661,828	)		(63,742,772	)						(79,404,600	)
52	Dividends to stockholders		(50,000,000	)		(135,000,000	)						(185,000,000	)
53	Aggregate write-ins for gains and losses in surplus		0			7,032,882							7,032,882
54	Net change in capital and surplus (Lines 37 through 53)		67,030,988			159,904,501			0				226,935,489
55	Capital and surplus as of statement date (Lines 36 + 54)	$	405,446,852		$	971,224,719		$	0			$	1,376,671,571
DETAILS OF WRITE-INS (Line 8.3)
	Miscellaneous income	$	18,494,295		$	11,387,733		$	0			$	29,882,028
	Income earned on company owned life insurance		3,607,401			2,504,067							6,111,468
	Surrender charges		0			774,952							774,952
	Consideration on reinsurance recaptured		1,174,197			691,984							1,866,181
	TOTAL WRITE-INS FOR LINE 8.3	$	23,275,893		$	15,358,736		$	0			$	38,634,629
DETAILS OF WRITE-INS (Line 27)
	Interest on surplus notes	$	0		$	9,600,000		$	0			$	9,600,000
	Experience refunds		(580	)		246,617							246,037
	Fines and penalties		1,948			154,566							156,514
	Funds withheld ceded investment income		16,253,707			138,639,686							154,893,393
	Reinsurance Allowances		0			0							0
	Modco reserve adjustment		0			(10,254	)						(10,254	)
	Foreign currency translation adjustment		0			0							0
	Change in synthetic GICs and provision for liquidity guarantees		0			(1,485,324	)						(1,485,324	)
	TOTAL WRITE-INS FOR LINE 27	$	16,255,075		$	147,145,291		$	0			$	163,400,366
DETAILS OF WRITE-INS (Line 53)
	Correction of error- change in nonadmitted deferred tax assets	$	0		$	7,032,882		$	0			$	7,032,882
			0			0							0
	TOTAL WRITE-INS FOR LINE 53	$	0		$	7,032,882		$	0			$	7,032,882

* This income statement is an unaudited consolidation of the December 31, 2013 NAIC Annual Statement income statements for Western Reserve Life Assurance Co. of Ohio and Monumental Life Insurance Company.

P-5

Pro Forma Unaudited Consolidated Statutory Income Statement

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

For Year Ending December 31, 2012

											TPLIC (MLIC)
											Dec 31, 2012
		WRL			TPLIC (MLIC)			Eliminations		Reference	Totals
1	Premiums and annuity considerations for life and accident and health contracts	$	486,919,136		$	1,497,625,426		$	0		$	1,984,544,562
2	Considerations for supplementary contracts with life contingencies		(2,210,995	)		24,091,339						21,880,344
3	Net investment income		81,728,965			822,313,801						904,042,766
4	Amortization of Interest Maintenance Reserve (IMR)		1,516,879			11,028,711						12,545,590
5	Separate Accounts net gain from operations excluding unrealized gains or losses		0			0						0
6	Commissions and expense allowances on reinsurance ceded		(3,414,666	)		377,804,411						374,389,745
7	Reserve adjustments on reinsurance ceded		(24,697,078	)		(762,678,546	)					(787,375,624	)
8	Miscellaneous Income:
8.1	Income from fees associated with investment management, administration and contract guarantees from Separate Accounts		300,860,490			36,700,565						337,561,055
8.2	Charges and fees for deposit-type contracts		0			0						0
8.3	Aggregate write-ins for miscellaneous income		19,035,109			8,497,450			0			27,532,559
9	Totals (Lines 1 to 8.3)		859,737,840			2,015,383,157			0			2,875,120,997
10	Death benefits		70,668,289			183,519,981						254,188,270
11	Matured endowments (excluding guaranteed annual pure endowments)		22,545			11,213,370						11,235,915
12	Annuity benefits		21,113,855			306,294,955						327,408,810
13	Disability benefits and benefits under accident and health contracts		871,144			281,497,472						282,368,616
14	Coupons, guaranteed annual pure endowments and similar benefits		0			0						0
15	Surrender benefits and withdrawals for life contracts		423,202,502			824,936,262						1,248,138,764
16	Group conversions		0			0						0
17	Interest and adjustments on contract or deposit-type contract funds		649,406			36,904,416						37,553,822
18	Payments on supplementary contracts with life contingencies		2,238,541			18,437,164						20,675,705
19	Increase in aggregate reserves for life and accident and health contracts		35,664,048			(483,691,447	)		0			(448,027,399	)
20	Totals (Lines 10 to 19)		554,430,330			1,179,112,173			0			1,733,542,503
21	Commissions on premiums, annuity considerations and deposit-type contract funds		160,308,691			258,895,773						419,204,464
22	Commissions and expense allowances on reinsurance assumed		0			48,695,771						48,695,771
23	General insurance expenses		74,016,655			218,791,750						292,808,405
24	Insurance taxes, licenses and fees, excluding federal income taxes		17,897,862			31,214,586						49,112,448
25	Increase in loading on deferred and uncollected premiums		(54,095	)		(4,719,414	)					(4,773,509	)
26	Net transfers to or (from) Separate Accounts net of reinsurance		(107,485,224	)		(189,380,197	)					(296,865,421	)
27	Aggregate write-ins for deductions		12,038,761			216,975,741			0			229,014,502
28	Totals (Lines 20 to 27)		711,152,980			1,759,586,183			0			2,470,739,163
29	Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)		148,584,860			255,796,974			0			404,381,834
30	Dividends to policyholders		21,801			1,279,154						1,300,955
31	Net gain from operations after dividends to policyholders and before federal income (Line 29 minus Line 30)		148,563,059			254,517,820			0			403,080,879
32	Federal and foreign income taxes incurred (excluding tax on capital gains)		13,976,714			103,095,420						117,072,134
33	Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32)		134,586,345			151,422,400			0			286,008,745
34	Net realized capital gains or (losses) less capital gains tax and transferred to the IMR		(4,590,812	)		(7,876,251	)					(12,467,063	)
35	Net income (Line 33 plus Line 34)	$	129,995,533		$	143,546,149		$	0		$	273,541,682

P-6

Pro Forma Unaudited Consolidated Statutory Income Statement

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

For Year Ending December 31, 2012

												TPLIC (MLIC)
												Dec 31, 2012
		WRL			TPLIC (MLIC)			Eliminations			Reference	Totals
CAPITAL AND SURPLUS ACCOUNT
36	Capital and surplus, December 31, prior year	$	275,198,023		$	980,853,380		$	0			$	1,256,051,403
37	Net income (Line 35)		129,995,533			143,546,149							273,541,682
38	Change in net unrealized capital gains (losses)		117,589			(34,637,639	)						(34,520,050	)
39	Change in net unrealized foreign exchange capital gain (loss)		0			1,378,866							1,378,866
40	Change in net deferred income tax		(12,436,991	)		822,923							(11,614,068	)
41	Change in nonadmitted assets and related items		(9,918,907	)		(29,675,578	)						(39,594,485	)
42	Change in liability for reinsurance in unauthorized companies		—			500,492							500,492
43	Change in reserve on account of change in valuation basis, (increase) or decrease		0			0							0
44	Change in asset valuation reserve		(3,200,787	)		(9,467,487	)						(12,668,274	)
45	Change in treasury stock		0			0							0
46	Surplus (contributed to) withdrawn from Separate Accounts during period		0			0							0
47	Other changes in surplus in Separate Accounts Statement		0			0							0
48	Change in surplus notes		0			0							0
49	Cumulative effect of changes in accounting principles		0			0							0
50	Capital changes:
50.1	Paid in		0			0			(2,500,000	)	A		(2,500,000	)
50.2	Transferred from surplus (Stock Dividend)		0			0							0
50.3	Transferred to surplus		0			0							0
51	Surplus adjustment:
51.1	Paid in		0			481,720			2,500,000		A		2,981,720
51.2	Transferred to capital (Stock Dividend)		0			0							0
51.3	Transferred from capital		0			0							0
51.4	Change in surplus as a result of reinsurance		(33,519,286	)		207,517,392							173,998,106
52	Dividends to stockholders		(27,000,000	)		(450,000,000	)						(477,000,000	)
53	Aggregate write-ins for gains and losses in surplus		—			—							0
54	Net change in capital and surplus (Lines 37 through 53)		44,037,151			(169,533,162	)		0				(125,496,011	)
55	Capital and surplus as of statement date (Lines 36 + 54)	$	319,235,174		$	811,320,218		$	0			$	1,130,555,392
DETAILS OF WRITE-INS (Line 8.3)
	Miscellaneous income	$	17,160,566		$	5,094,642		$	0			$	22,255,208
	Income earned on company owned life insurance		1,874,543			2,445,497							4,320,040
	Surrender charges		0			922,816							922,816
	Consideration on reinsurance recaptured		0			34,495							34,495
	TOTAL WRITE-INS FOR LINE 8.3	$	19,035,109		$	8,497,450		$	0			$	27,532,559
DETAILS OF WRITE-INS (Line 27)
	Interest on surplus notes	$	0		$	9,600,000		$	0			$	9,600,000
	Experience refunds		(112	)		(319,009	)						(319,121	)
	Fines and penalties		989			4,535							5,524
	Funds withheld ceded investment income		12,037,884			213,972,859							226,010,743
	Reinsurance Allowances		0			5,385							5,385
	Modco reserve adjustment		0			(10,045	)						(10,045	)
	Foreign currency translation adjustment		0			(4,228,000	)						(4,228,000	)
	Change in synthetic GICs and provision for liquidity guarantees		0			(2,049,984	)						(2,049,984	)
	TOTAL WRITE-INS FOR LINE 27	$	12,038,761		$	216,975,741		$	0			$	229,014,502
DETAILS OF WRITE-INS (Line 53)
		$	0		$	0		$	0			$	0
			0			0							0
	TOTAL WRITE-INS FOR LINE 53	$	0		$	0		$	0			$	0

* This income statement is an unaudited consolidation of the December 31, 2012 NAIC Annual Statement income statements for Western Reserve Life Assurance Co. of Ohio and Monumental Life Insurance Company.

P-7

Pro Forma Unaudited Consolidated Statutory Income Statement

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

For Year Ending December 31, 2011

											TPLIC (MLIC)
											Dec 31, 2011
		WRL			TPLIC (MLIC)			Eliminations		Reference	Totals
1	Premiums and annuity considerations for life and accident and health contracts	$	479,669,678		$	1,391,712,990		$	0		$	1,871,382,668
2	Considerations for supplementary contracts with life contingencies		929,177			11,508,812						12,437,989
3	Net investment income		80,031,434			842,041,493						922,072,927
4	Amortization of Interest Maintenance Reserve (IMR)		1,325,917			4,411,559						5,737,476
5	Separate Accounts net gain from operations excluding unrealized gains or losses		0			0						0
6	Commissions and expense allowances on reinsurance ceded		(41,716,042	)		529,883,046						488,167,004
7	Reserve adjustments on reinsurance ceded		(31,044,498	)		(151,483,511	)					(182,528,009	)
8	Miscellaneous Income:
8.1	Income from fees associated with investment management, administration and contract guarantees from Separate Accounts		312,161,423			34,847,072						347,008,495
8.2	Charges and fees for deposit-type contracts		0			0						0
8.3	Aggregate write-ins for miscellaneous income		20,019,069			8,884,717			0			28,903,786
9	Totals (Lines 1 to 8.3)		821,376,158			2,671,806,178			0			3,493,182,336
10	Death benefits		64,792,471			183,623,096						248,415,567
11	Matured endowments (excluding guaranteed annual pure endowments)		20,646			9,811,580						9,832,226
12	Annuity benefits		25,823,646			275,877,445						301,701,091
13	Disability benefits and benefits under accident and health contracts		1,214,897			305,136,009						306,350,906
14	Coupons, guaranteed annual pure endowments and similar benefits		0			0						0
15	Surrender benefits and withdrawals for life contracts		614,466,490			731,102,194						1,345,568,684
16	Group conversions		0			0						0
17	Interest and adjustments on contract or deposit-type contract funds		797,706			40,623,746						41,421,452
18	Payments on supplementary contracts with life contingencies		1,333,270			17,015,971						18,349,241
19	Increase in aggregate reserves for life and accident and health contracts		85,582,954			(92,560,336	)		0			(6,977,382	)
20	Totals (Lines 10 to 19)		794,032,080			1,470,629,705			0			2,264,661,785
21	Commissions on premiums, annuity considerations and deposit-type contract funds		138,136,489			253,225,339						391,361,828
22	Commissions and expense allowances on reinsurance assumed		0			67,337,377						67,337,377
23	General insurance expenses		84,131,616			223,932,675						308,064,291
24	Insurance taxes, licenses and fees, excluding federal income taxes		14,478,324			28,925,224						43,403,548
25	Increase in loading on deferred and uncollected premiums		11,427			(4,278,103	)					(4,266,676	)
26	Net transfers to or (from) Separate Accounts net of reinsurance		(258,667,339	)		(136,669,812	)					(395,337,151	)
27	Aggregate write-ins for deductions		39,366,107			225,231,807			0			264,597,914
28	Totals (Lines 20 to 27)		811,488,704			2,128,334,212			0			2,939,822,916
29	Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus Line 28)		9,887,454			543,471,966			0			553,359,420
30	Dividends to policyholders		23,797			1,341,907						1,365,704
31	Net gain from operations after dividends to policyholders and before federal income taxes (Line 29 minus Line 30)		9,863,657			542,130,059			0			551,993,716
32	Federal and foreign income taxes incurred (excluding tax on capital gains)		9,379,020			31,580,088						40,959,108
33	Net gain from operations after dividends to policyholders and federal income taxes and before realized capital gains or (losses) (Line 31 minus Line 32)		484,637			510,549,971			0			511,034,608
34	Net realized capital gains or (losses) less capital gains tax and transferred to the IMR		(12,431,038	)		(28,842,181	)					(41,273,219	)
35	Net income (Line 33 plus Line 34)	$	(11,946,401	)	$	481,707,790		$	0		$	469,761,389

P-8

Pro Forma Unaudited Consolidated Statutory Income Statement

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

For Year Ending December 31, 2011

												TPLIC (MLIC)
												Dec 31, 2011
		WRL			TPLIC (MLIC)			Eliminations			Reference	Totals
CAPITAL AND SURPLUS ACCOUNT
36	Capital and surplus, December 31, prior year	$	511,264,493		$	1,174,423,154		$	0			$	1,685,687,647
37	Net income (Line 35)		(11,946,401	)		481,707,790							469,761,389
38	Change in net unrealized capital gains (losses)		(3,720,586	)		(12,830,567	)						(16,551,153	)
39	Change in net unrealized foreign exchange capital gain (loss)		0			747,269							747,269
40	Change in net deferred income tax		18,336,654			218,164,768							236,501,422
41	Change in nonadmitted assets and related items		(27,615,648	)		(246,969,162	)						(274,584,810	)
42	Change in liability for reinsurance in unauthorized companies		(104,262	)		(233,738	)						(338,000	)
43	Change in reserve on account of change in valuation basis, (increase) or decrease		0			0							0
44	Change in asset valuation reserve		378,352			(30,846,724	)						(30,468,372	)
45	Change in treasury stock		0			0							0
46	Surplus (contributed to) withdrawn from Separate Accounts during period		0			0							0
47	Other changes in surplus in Separate Accounts Statement		0			0							0
48	Change in surplus notes		0			0							0
49	Cumulative effect of changes in accounting principles		0			0							0
50	Capital changes:
50.1	Paid in		0			0			(2,500,000	)	A		(2,500,000	)
50.2	Transferred from surplus (Stock Dividend)		0			0							0
50.3	Transferred to surplus		0			0							0
51	Surplus adjustment:
51.1	Paid in		0			175,092			2,500,000		A		2,675,092
51.2	Transferred to capital (Stock Dividend)		0			0							0
51.3	Transferred from capital		0			0							0
51.4	Change in surplus as a result of reinsurance		41,629,207			(321,586,829	)						(279,957,622	)
52	Dividends to stockholders		(250,000,000	)		(300,000,000	)						(550,000,000	)
53	Aggregate write-ins for gains and losses in surplus		(3,023,786	)		18,102,327							15,078,541
54	Net change in capital and surplus (Lines 37 through 53)		(236,066,470	)		(193,569,774	)		0				(429,636,244	)
55	Capital and surplus as of statement date (Lines 36 + 54)	$	275,198,023		$	980,853,380		$	0			$	1,256,051,403
DETAILS OF WRITE-INS (Line 8.3)
	Miscellaneous income	$	17,739,643		$	5,350,789		$	0			$	23,090,432
	Income earned on company owned life insurance		2,279,426			2,386,749							4,666,175
	Surrender charges		0			1,147,179							1,147,179
	TOTAL WRITE-INS FOR LINE 8.3	$	20,019,069		$	8,884,717		$	0			$	28,903,786
DETAILS OF WRITE-INS (Line 27)
	Interest on surplus notes	$	0		$	9,600,000		$	0			$	9,600,000
	Experience refunds		0			(140,105	)						(140,105	)
	Fines and penalties		514			18,999							19,513
	Funds withheld ceded investment income		10,065,593			211,608,375							221,673,968
	Reinsurance Allowances		0			6,173							6,173
	Modco reserve adjustment		0			(21,045	)						(21,045	)
	Consideration on reinsurance recaptured		29,300,000			3,039,400							32,339,400
	Change in synthetic GICs and provision for liquidity guarantees		0			1,120,010							1,120,010
	TOTAL WRITE-INS FOR LINE 27	$	39,366,107		$	225,231,807		$	0			$	264,597,914
DETAILS OF WRITE-INS (Line 53)
	Change in admitted deferred tax assets pursuant to SSAP No. 10R	$	(3,023,786	)	$	23,738,700		$	0			$	20,714,914
	Correction of error—funds withheld investment income		0			(5,636,373	)						(5,636,373	)
	TOTAL WRITE-INS FOR LINE 53	$	(3,023,786	)	$	18,102,327		$	0			$	15,078,541

* This income statement is an unaudited consolidation of the December 31, 2011 NAIC Annual Statement income statements for Western Reserve Life Assurance Co. of Ohio and Monumental Life Insurance Company.

P-9

Pro Forma Unaudited Consolidated Statutory Balance Sheet and Income Statement

Western Reserve Life Assurance Co. of Ohio, Transamerica Premier Life Insurance Company

(f.k.a. Monumental Life Insurance Company)

Eliminations:

The following eliminations have been made to the combined WRL and TPLIC financial statements to more accurately depict the resultant combination of the entities in accordance with statutory accounting principles.

A - Reflect cancellation of WRL’s common stock held by AEGON USA, LLC:

WRL common capital stock owned by AEGON USA, LLC prior to merger $ 2,500,000

WRL’s common shares shall be deemed cancelled by operation of law. As AEGON USA, LLC owns 100% of the common shares of Commonwealth General Corporation (CGC), a Delaware holding company, who in turn will own 100% of TPLIC, and AEGON USA also owns 100% of WRL, AEGON USA is indifferent as to the consideration issued in the merger, since such issuance is meaningless to AEGON USA as an economic matter. Under these circumstances, AEGON USA agrees to accept one share of common stock of CGC in exchange for its agreement to merge WRL into TPLIC.

Overview of eliminations by statutory financial lines:

Balance Sheet Adjustments:
Surplus and Other Fund Adjustments:
Line 29 - Common capital stock	$	(2,500,000	)
Line 30 - Preferred capital stock		-
Line 33 - Gross paid in & contributed surplus		2,500,000
Line 35 - Unassigned		—
Total Surplus and Other Fund Adjustments	$	—
Income Statement Adjustments:
Net Income Adjustments:
	$	—
Total Net Income Adjustments	$	—
Capital and Surplus Adjustments:
Line 36 - Capital and surplus as of the prior year	$	—
Line 37 - Net Income		—
Line 38 - Change in net unrealized capital gains (losses)		—
Line 41 - Change in non-admitted assets and related items		—
Line 50.1 - Capital paid in		(2,500,000	)
Line 51.1 - Surplus paid in		2,500,000
Total Change in Capital and Surplus Adjustments	$	—

P-10

Western Reserve Life Audited Financials

F I N A N C I A L     S T A T E M E N T S     A N D     S C H E D U L E S – S T A T U T O R Y     B A S I S

Western Reserve Life Assurance Co. of Ohio

Years Ended December 31, 2013, 2012 (restated) and 2011

Western Reserve Life Assurance Co. of Ohio

Financial Statements and Schedules – Statutory Basis

Years Ended December 31, 2013, 2012 (restated) and 2011

Contents

Report of Independent Auditors	1
Audited Financial Statements
Balance Sheets – Statutory Basis	3
Statements of Operations – Statutory Basis	5
Statements of Changes in Capital and Surplus – Statutory Basis	6
Statements of Cash Flow – Statutory Basis	8
Notes to Financial Statements – Statutory Basis	10
Statutory-Basis Financial Statement Schedules
Summary of Investments – Other Than Investments in Related Parties	70
Supplementary Insurance Information	71
Reinsurance	72

Report of Independent Auditors

The Board of Directors

Western Reserve Life Assurance Co. of Ohio

We have audited the accompanying statutory-basis financial statements of Western Reserve Life Assurance Company of Ohio, which comprise the balance sheets as of December 31, 2013 and 2012, 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, 2013, and the related notes to the financial statements. Our audits also included the statutory-basis financial statement schedules required by Regulation S-X, Article 7.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance. Management also is responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 1, to meet the requirements of Ohio the financial statements have been prepared 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 are described in Note 1. The effects on the accompanying financial statements of these variances are not reasonably determinable but are presumed to be material.

1

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the effects of the matter described in the preceding paragraph, the statutory-basis 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, 2013 and 2012, or the results of its operations or its cash flows for each of the three years ended December 31, 2013.

Opinion on Statutory-Basis of Accounting

However, in our opinion, the statutory-basis 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, 2013 and 2012, and the results of its operations and its cash flows for the three years ended December 31, 2013 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.

Restatement

As discussed in Note 1 to the financial statements, the 2012 financial statements have been restated to correct an error in accounting for affiliated reinsurance receivables. Our opinion is not modified with respect to this matter.

/s/ Ernst & Young LLP

April 28, 2014

2

Western Reserve Life Assurance Co. of Ohio

Balance Sheets – Statutory Basis

(Dollars in Thousands, Except per Share Amounts)

	December 31
	2013		2012
			Restated
Admitted assets
Cash and invested assets:
Bonds	$	1,448,053	$	1,116,229
Common stocks:
Affiliated entities (cost: 2013- $24,343; 2012- $22,921)		35,348		31,844
Unaffiliated entities (cost: 2013- $0; 2012- $117)		—		117
Mortgage loans on real estate		77,805		50,714
Real estate, at cost less accumulated depreciation (2013 - 14,745; 2012 - $12,942)
Home office properties		27,382		35,209
Properties held for sale		6,259		—
Cash, cash equivalents and short-term investments		110,547		184,234
Policy loans		442,800		411,101
Securities lending reinvested collateral assets		88,265		84,899
Other invested assets		3,012		3,293
Total cash and invested assets		2,239,471		1,917,640
Net deferred income tax asset		86,385		105,141
Premiums deferred and uncollected		2,765		2,735
Reinsurance receivable		1,910		3,358
Receivable from parent, subsidiaries and affiliates		19,859		10,992
Investment income due and accrued		17,361		14,224
Cash surrender value of life insurance policies		75,881		75,295
Other admitted assets		7,210		7,263
Separate account assets		6,969,477		6,477,241
Total admitted assets	$	9,420,319	$	8,613,889

3

Western Reserve Life Assurance Co. of Ohio

Balance Sheets – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Amounts)

	December 31
	2013			2012
				Restated
Liabilities and capital and surplus
Liabilities:
Aggregate reserves for policies and contracts:
Life	$	1,520,248		$	1,300,741
Annuity		389,341			481,279
Accident and health		1,158			963
Life policy and contract claim reserves		25,085			26,339
Liability for deposit-type contracts		21,520			14,647
Other policyholders’ funds		35			41
Interest maintenance reserve		25,813			28,678
Remittances and items not allocated		10,776			9,670
Federal income taxes payable		17,160			17,951
Transfers from separate accounts due or accrued		(212,708	)		(285,883	)
Asset valuation reserve		17,642			12,039
Reinsurance in unauthorized companies		—			265
Funds held under coinsurance and other reinsurance treaties		78,161			54,464
Unearned investment income		9,736			9,509
Payable for securities		8,000			—
Payable for securities lending		88,265			83,058
Derivatives		4,100			1,841
Other liabilities		41,062			42,630
Separate account liabilities		6,969,477			6,477,241
Total liabilities		9,014,871			8,275,473
Capital and surplus:
Common stock, $1.00 par value, 3,000,000 shares authorized and 2,500,000 shares issued and outstanding		2,500			2,500
Paid-in surplus		149,627			149,627
Unassigned surplus		253,321			186,289
Total capital and surplus		405,448			338,416
Total liabilities and capital and surplus	$	9,420,319		$	8,613,889

See accompanying notes.

4

Western Reserve Life Assurance Co. of Ohio

Statement of Operations – Statutory Basis

(Dollars in Thousands, Except per Share Amounts)

	Year Ended December 31
	2013			2012			2011
				Restated
Revenues:
Premiums and other considerations, net of reinsurance:
Life	$	525,693		$	469,503		$	456,926
Annuity		12,952			13,547			22,244
Accident and health		2,446			1,658			1,429
Net investment income		92,490			81,729			80,031
Amortization of interest maintenance reserve		767			1,516			1,326
Commissions and expense allowances on reinsurance ceded		(15,257	)		(8,070	)		(41,716	)
Reserve adjustments on reinsurance ceded		(13,390	)		(13,198	)		(31,044	)
Income from fees associated with investment management, administration and contract guarantees for separate accounts		291,416			300,860			312,161
Income earned on company owned life insurance		3,607			1,875			2,279
Consideration received on reinsurance recapture		1,174			—			—
Income from administrative service agreement with affiliate		24,966			23,814			24,411
Other		(6,470	)		(6,652	)		(6,671	)
		920,394			866,582			821,376
Benefits and expenses:
Benefits paid or provided for:
Life		70,180			70,941			64,792
Surrender benefits		541,359			423,203			418,362
Annuity benefits		19,270			21,114			25,824
Other benefits		5,354			3,781			3,367
Increase (decrease) in aggregate reserves for policies and contracts:
Life		219,507			94,292			66,540
Annuity		(91,938	)		(59,074	)		19,085
Accident and health		195			446			(42	)
		763,927			554,703			597,928
Insurance expenses:
Commissions		155,584			160,309			138,136
General insurance expenses		72,085			74,017			84,132
Taxes, licenses and fees		18,954			17,898			14,478
Net transfers from separate accounts		(280,807	)		(107,485	)		(62,563	)
Consideration paid on reinsurance recapture		—			—			29,300
Other expenses		16,332			11,984			10,077
		(17,852	)		156,723			213,560
Total benefits and expenses		746,075			711,426			811,488
Gain from operations before dividends to policyholders, federal income tax expense and net realized capital gains/losses on investments		174,319			155,156			9,888
Dividends to policyholders		21			22			24
Gain from operations before federal income tax expense and net realized capital gains/losses on investments		174,298			155,134			9,864
Federal income tax expense		25,592			20,548			9,379
Gain from operations before net realized capital gains/losses on investments		148,706			134,586			485
Net realized capital gain/ (loss) on investments (net of related federal income taxes and amounts tranferred to/from interest maintenance reserve)		11,103			(4,591	)		(12,431	)
Net income (loss)	$	159,809		$	129,995		$	(11,946	)

See accompanying notes.

5

Western Reserve Life Assurance Co. of Ohio

Statements of Changes in Capital and Surplus – Statutory Basis

(Dollars in Thousands)

	Common Stock		Aggregate Write-ins for Other than Special Surplus Funds			Paid-in Surplus		Unassigned Surplus			Total Capital and Surplus
Balance at January 1, 2011	$	2,500	$	70,527		$	149,627	$	288,610		$	511,264
Net loss		—		—			—		(11,946	)		(11,946	)
Change in net unrealized capital gains and losses, net of tax		—		—			—		(3,720	)		(3,720	)
Change in nonadmitted assets		—		—			—		(27,616	)		(27,616	)
Change in asset valuation reserve		—		—			—		378			378
Change in liability for reinsurance in unauthorized companies		—		—			—		(104	)		(104	)
Dividend to stockholder		—		—			—		(250,000	)		(250,000	)
Change in net deferred income tax asset		—		—			—		18,337			18,337
Change in surplus as a result of reinsurance		—		—			—		41,629			41,629
Change in admitted deferred tax asset pursuant to SSAP No. 10R		—		(3,024	)		—		—			(3,024	)
Balance at December 31, 2011		2,500		67,503			149,627		55,568			275,198
Net income		—		—			—		129,995			129,995
Change in net unrealized capital gains and losses, net of tax		—		—			—		118			118
Change in nonadmitted assets		—		—			—		(7,849	)		(7,849	)
Change in asset valuation reserve		—		—			—		(3,201	)		(3,201	)
Dividend to stockholder		—		—			—		(27,000	)		(27,000	)
Change in net deferred income tax asset		—		—			—		(12,437	)		(12,437	)
Change in surplus as a result of reinsurance		—		—			—		(21,315	)		(21,315	)
Change in admitted deferred tax assets pursuant to SSAP No. 101		—		(67,503	)		—		67,503			—
Correction of error - reinsurance		—		—			—		4,907			4,907
Balance at December 31, 2012 - restated	$	2,500	$	—		$	149,627	$	186,289		$	338,416

6

Western Reserve Life Assurance Co. of Ohio

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

(Dollars in Thousands)

	Common Stock		Paid-in Surplus		Unassigned Surplus			Total Capital and Surplus
Balance at December 31, 2012 - restated	$	2,500	$	149,627	$	186,289		$	338,416
Net income		—		—		159,809			159,809
Change in net unrealized capital gains and losses, net of tax		—		—		4,189			4,189
Change in nonadmitted assets		—		—		(11,138	)		(11,138	)
Change in asset valuation reserve		—		—		(5,603	)		(5,603	)
Change in liability for reinsurance in unauthorized and certified companies		—		—		265			265
Dividend to stockholder		—		—		(50,000	)		(50,000	)
Change in net deferred income tax asset		—		—		(14,829	)		(14,829	)
Change in surplus as a result of reinsurance		—		—		(15,661	)		(15,661	)
Balance at December 31, 2013	$	2,500	$	149,627	$	253,321		$	405,448

See accompanying notes.

7

Western Reserve Life Assurance Co. of Ohio

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
				Restated
Operating activities
Premiums collected, net of reinsurance	$	540,933		$	485,063		$	480,756
Net investment income received		96,249			84,038			85,361
Miscellaneous income received		278,156			277,542			271,567
Benefit and loss related payments		(636,087	)		(521,038	)		(698,717	)
Commissions, expenses paid and aggregate write-ins for deductions		(262,111	)		(264,731	)		(250,591	)
Net transfers from separate accounts		354,274			200,378			371,180
Dividends paid to policyholders		(21	)		(22	)		(24	)
Federal and foreign income taxes paid		(25,415	)		(5,134	)		(88,126	)
Net cash provided by operating activities		345,978			256,096			171,406
Investing activities
Proceeds from investments sold, matured or repaid:
Bonds		321,363			337,040			263,103
Common stocks		117			2			120
Mortgage loans on real estate		3,846			9,355			6,267
Other invested assets		6			1			—
Securities lending reinvested collateral assets		—			4,729			104,301
Miscellaneous proceeds		21,512			5,275			6
Total investment proceeds		346,844			356,402			373,797
Costs of investments acquired:
Bonds		(657,368	)		(562,044	)		(212,793	)
Common stocks		(825	)		(1,143	)		(597	)
Mortgage loans on real estate		(31,484	)		(10,800	)		(43,694	)
Real estate		(235	)		(153	)		66
Other invested assets		(651	)		(502	)		(845	)
Securities lending reinvested collateral assets		(3,366	)		—			—
Miscellaneous applications		(33	)		(4,550	)		(18,575	)
Total cost of investments acquired		(693,962	)		(579,192	)		(276,438	)
Net increase in policy loans		(31,699	)		(5,064	)		(14,526	)
Net cost of investments acquired		(725,661	)		(584,256	)		(290,964	)
Net cash (used in) provided by investing activities		(378,817	)		(227,854	)		82,833

8

Western Reserve Life Assurance Co. of Ohio

Statements of Cash Flow – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
				Restated
Financing and miscellaneous activities
Cash provided (applied):
Net deposits (withdrawals) on deposit-type contracts and other insurance liabilities		(1,417	)		1,424			(2,510	)
Borrowed funds		331			21,064			5,229
Dividends to stockholder		(50,000	)		(27,000	)		(250,000	)
Funds held under reinsurance treaty with unauthorized reinsurers		23,697			20,836			18,404
Receivable from parent, subsidiaries and affiliates		(8,867	)		(8,925	)		10,767
Payable to parent, subsidiaries and affiliates		—			(26,732	)		6,775
Payable for securities lending		3,366			(4,726	)		(104,302	)
Other cash provided (applied)		(7,958	)		9,696			(10,387	)
Net cash (used in) provided by financing and miscellaneous activities		(40,848	)		(14,363	)		(326,024	)
Net (decrease) increase in cash, cash equivalents and short-term investments		(73,687	)		13,880			(71,785	)
Cash, cash equivalents and short-term investments:
Beginning of year		184,234			170,354			242,139
End of year	$	110,547		$	184,234		$	170,354

See accompanying notes.

9

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands)

December 31, 2013

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:

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 maturity 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.

10

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

All single class and multi-class mortgage-backed/asset-backed securities (e.g., CMOs) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective methods. If the fair value of the mortgage-backed/asset-backed security is less than amortized cost, an entity shall assess whether the impairment is other-than-temporary. An other-than-temporary impairment is considered to have occurred if the fair value of the mortgage-backed/asset-backed security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An other-than-temporary impairment is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security.

If it is determined an other-than-temporary impairment has occurred as a result of the cash flow analysis, the security is written down to the discounted estimated future cash flows. If an other-than-temporary impairment has occurred due to intent to sell or lack of intent and ability to hold, the security is written down to fair value.

For GAAP, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used. If it is determined that a decline in fair value is other-than-temporary and the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the other-than-temporary impairment should be recognized in earnings equal to the entire difference between the amortized cost basis and its fair value at the impairment date. If the entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery, the other-than-temporary impairment should be separated into a) the amount 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.

11

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

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

12

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

GAAP, realized capital gains and losses are 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, incremental costs directly related to the successful acquisition of 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, 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.

13

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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. 101, Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10 (SSAP No. 101). Under SSAP No. 101, admitted adjusted 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 amount of adjusted gross deferred income tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period’s adjusted statutory capital and surplus, plus 3) the amount of remaining adjusted 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) and reversal patterns of the deferred tax assets and liabilities. The remaining adjusted 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 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.

14

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

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

15

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 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.

Common stocks of unaffiliated companies are reported at fair value and the related net unrealized capital gains or losses are reported in unassigned surplus along with any adjustments 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.

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.

Land is reported at cost. Real estate occupied by the Company is reported at depreciated cost net of encumbrances. Real estate that the Company classifies as held for sale is measured at lower

16

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

of carrying amount or fair value less cost to sell. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. The Company recognizes an impairment loss if the Company determines that the carrying amount of the real estate is not recoverable and exceeds its fair value. The Company deems that the carrying amount of the asset is not recoverable if the carrying amount exceeds the sum of undiscounted cash flows expected to result from the use and disposition. The impairment loss is measured as the amount by which the asset’s carrying value exceeds its fair value.

Policy loans are reported at unpaid principal balance.

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. Income is also not accrued when collection is uncertain. In addition, accrued interest is excluded from investment income when payment exceeds 90 days past due. At December 31, 2013 and 2012, 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.

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).

17

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 instead.

Instruments: Total return 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 total return swaps generally provide for the exchange of the difference between fixed leg (tied to the S&P or interest rate index) and floating leg (tied to LIBOR) amounts based on an underlying notional amount (also tied to the underlying index). Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedge item, generally at amortized cost, on the financial statements. If the swap is 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.

Variance swaps are used in the asset/liability management process to mitigate the gamma 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

18

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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. 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 capital and 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 equity 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.

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 $282,851, $305,221 and $349,011, in 2013, 2012 and 2011, 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 $291,416, $300,860 and $312,161, in 2013, 2012 and 2011, respectively, related to fees associated with investment management, administration and contractual guarantees for separate accounts.

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.

19

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of premium for periods beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves.

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 2.0 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.

Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, mean reserves are determined by computing the regular mean reserve for the plan at the true age and holding, in addition, one-half (1/2) of the extra premium charge for the year. For certain flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioner’s Reserve Valuation Method for universal life policies and recognizing any substandard ratings.

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.

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 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 balance sheet 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

20

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

reviewed and adjusted as necessary as experience develops or new information becomes available.

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.

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. Consideration received and benefits paid 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.

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.

Recent Accounting Pronouncements

Effective December 31, 2013, the Company adopted revisions to SSAP No. 35R, Guaranty Fund and Other Assessments – Revised which incorporates subsequent event (Type II) disclosures for entities subject to Section 9010 of the Patient Protection and Affordable Care Act related to assessments payable. The adoption of this revision did not impact the financial position or results of operations of the Company as revisions relate to disclosures only. See Note 13 for further discussion.

Effective January 1, 2013, the Company adopted SSAP No. 92, Accounting for Postretirement Benefits Other Than Pensions, A Replacement of SSAP No. 14 and SSAP No. 102, Accounting for Pensions, A Replacement of SSAP No. 89. This guidance impacts accounting for defined benefit pension plans or other postretirement plans, along with related disclosures. SSAP No. 102 requires recognition of the funded status of the plan based on the projected benefit obligation instead of the accumulated benefit obligation as under SSAP No. 89. In addition, SSAP No. 92

21

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

and SSAP No. 102 require consideration of non-vested participants. The adoption of these standards did not impact the Company’s results of operations, financial position or disclosures as the Company does not sponsor the pension plan and is not directly liable under the plan. See Note 9 for further discussion of the Company’s pension plan and other postretirement plans as sponsored by Aegon.

Effective January 1, 2013, the Company adopted SSAP No. 103, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities which adopts with modifications the guidance in Accounting Standards Update (ASU) 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets and supersedes SSAP No. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. The adoption of this standard did not impact the financial position or results of operation of the Company.

Effective January 1, 2013, the Company adopted non-substantive revisions to SSAP No. 36, Troubled Debt Restructuring. These revisions adopt guidance from ASU 2011-02, Receivables – A Creditors’ Determination of Whether a Restructuring is a Troubled Debt Restructuring, which clarifies what constitutes a troubled debt restructuring and adopts with modification troubled debt restructuring disclosures for creditors from ASU 2010-20: Receivables (Topic 310), Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses. The adoption of this revision did not impact the financial position or results of operations of the Company.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to require disclosure of embedded credit derivatives within a financial instrument that expose the holder to the possibility of making future payments, and adopted guidance from Accounting Standards Update (ASU) 2010-11, Derivatives and Hedging – Scope Exception Related to Embedded Credit Derivatives, to clarify that seller credit derivative disclosures do not apply to embedded derivative features related to the transfer of credit risk that is only in the form of subordination of one financial instrument to another. The adoption of these revisions had no impact to the Company’s results of operations or financial position.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to move one aspect of the criteria for a hedged forecasted transaction and incorporate it as criteria for a fair value hedge. The adoption of this revision had no impact to the Company’s results of operations or financial position.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 27, Disclosure of Information about Financial Instruments with Off-Balance-Sheet Risk, Financial Instruments with Concentrations of Credit Risk and Disclosures about Fair Value of Financial Instruments, which clarifies that embedded derivatives, which are not separately recognized as derivatives under statutory accounting, are included in the disclosures of financial instruments with off-balance-sheet risk. The adoption of this revision had no impact to the Company’s results of operations or financial position.

22

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 1, Disclosures of Accounting Policies, Risks and Uncertainties and Other Disclosures. These revisions require reference to the accounting policy and procedure footnote that describes permitted or prescribed practices when an individual note is impacted by such practices. The adoption of this requirement had no impact to the Company’s results of operation or financial position, but did require additional disclosures. See Note 6 Policy and Contract Attributes for further details.

Effective January 1, 2012, the Company adopted revisions to SSAP No. 100, Fair Value Measurements (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. The adoption of these revisions had no impact to the Company’s results of operations or financial position, but did require additional disclosures. See Note 2 Fair Values of Financial Instruments for further details.

Effective January 1, 2012, the Company began computing current and deferred income taxes in accordance with SSAP No. 101. This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The adoption of this statement resulted in the transfer of $67,503 from Aggregate Write-Ins for Other than Special Surplus Funds to Unassigned Funds and updates to the Company’s income tax disclosures. See Note 5 Income Taxes for further details.

For the year ended December 31, 2011, the Company adopted SSAP No. 10R, Income Taxes –Revised, A Temporary Replacement of SSAP No. 10 (SSAP No. 10R). This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The SSAP temporarily superseded SSAP No. 10, Income Taxes. SSAP No. 10R allowed an entity to elect to admit additional deferred tax assets (DTAs) utilizing a three year loss carryback provision, plus the lesser of a look-forward of three years on gross DTAs expected to be realized or 15% of statutory capital and surplus if the entity’s risk-based capital is above the 250% risk-based capital level where an action level could occur as a result of a trend test utilizing the old SSAP No. 10 provisions to calculate the DTA. Prior to the adoption of SSAP No. 10R, the admitted DTA was calculated by taking into consideration a one year loss carryback and look-forward on gross DTAs that can be expected to be realized and a 10% capital and surplus limit on the admitted amount of the DTA. The Company elected to admit additional deferred tax assets pursuant to SSAP No. 10R and as a result, the cumulative effect of the adoption of this standard was the difference between the calculation of the admitted DTA per SSAP No.10R and the old SSAP No. 10 methodology at December 31, 2011. This change in accounting principle increased surplus by a net amount of $67,503 at December 31, 2011, which has been recorded within the statements of changes in capital and surplus.

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

23

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

equal to the greater of (a) the fair value of the guarantee at its inception, even if the likelihood of payment under the guarantee is remote or (b) the contingent liability amount required to be recognized if it is probable that a liability has been incurred at the financial statement date and the amount of loss can reasonably be determined. While this guidance does not exclude guarantees issued as intercompany transactions or between related parties from the initial liability recognition requirement, there are a couple exceptions. 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. Additional disclosures are also required under this new guidance for all guarantees, whether or not they meet the criteria for initial liability recognition. The adoption of this new accounting principle had no material impact to the Company’s results of operations or financial position, but did require additional disclosures regarding these guarantees.

Effective December 31, 2011, the Company adopted non-substantive revisions to SSAP No. 100, to incorporate the provisions of ASU 2010-06, Improving Disclosures about Fair Value Measurements. This revision required 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 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.

24

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 January 1, 2014, the Company will adopt SSAP No. 105, Working Capital Finance Investments, which allows working capital finance investments to be admitted assets if certain criteria are met. The adoption of this standard had no impact to the financial position or results of operations of the Company.

Effective December 31, 2014 the Company will adopt revisions to SSAP No. 104R, Share-Based Payments, which provides guidance for share-based payments transactions with non-employees. The adoption of this revision is expected to be immaterial to the financial position and results of operations of the Company.

Reclassifications

Certain reclassifications have been made to the 2012 financial statements to conform to the 2013 presentation.

During 2013, the Company changed the presentation of derivative liabilities. As a result of these changes, $1,841 was reclassified between the Other liabilities line and the Derivatives line in the 2012 Balance Sheet to conform to the 2013 presentation.

Correction of Errors

In 2014 after the filing of the Annual Statement, the Company discovered an error in the reporting of an affiliated modified coinsurance transaction resulting in misstatements of the reserve adjustments on reinsurance ceded, commissions and expense allowances on reinsurance ceded, and benefit expenses in the Statement of Operations. The impact of this error on the aforementioned accounts as of December 31, 2011 was an understatement of net income of $7,549 ($4,907 net of tax). This was corrected and is reflected as a correction of an error in the capital and surplus accounts of the 2012 Statement of Changes in Capital and Surplus. The 2012 financial statements have been restated to properly reflect the impact of the error and the 2013 financial statements have been properly stated.

25

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Restatements

The Company identified errors in its prior year audited statutory financial statements related to affiliated reinsurance receivables. The Company has obtained approval from the Ohio Department of Insurance to restate its 2012 statutory financial statements. The following tables show the impact of the restatement.

	Year Ended December 31, 2012
Balance sheet	As Reported			Adjustment			As Restated
Total admitted assets
Net deferred income tax asset		103,071			2,070			105,141
Receivable from parent, subsidiaries and affiliates		—			10,992			10,992
Total admitted assets	$	8,600,827		$	13,062		$	8,613,889
Total liabilities
Payable to parent		15,332			(15,332	)		—
Federal income taxes payable		8,738			9,213			17,951
Total liabilities	$	8,281,592		$	(6,119	)	$	8,275,473
	Year Ended December 31, 2012
Statement of Operation	As Reported			Adjustment			As Restated
Commissions and expense allowances on reinsurance ceded		(3,415	)		(4,655	)		(8,070	)
Reserve adjustments on reinsurance ceded		(24,697	)		11,499			(13,198	)
Benefits paid or provided for: Life		70,668			273			70,941
Gain before benefit from income taxes		148,563			6,571			155,134
Expense from income taxes		13,977			6,571			20,548
Net income	$	129,995		$	—		$	129,995
	Year Ended December 31, 2012
Statement of Changes in Capital and Surplus	As Reported			Adjustment			As Restated
Balance at January 1, 2012	$	275,198		$	—		$	275,198
Net income		129,995			—			129,995
Change in nonadmitted assets		(9,919	)		2,070			(7,849	)
Change in surplus as a result of reinsurance		(33,519	)		12,204			(21,315	)
Correction of error - reinsurance		—			4,907			4,907
Balance at December 31, 2012	$	319,235		$	19,181		$	338,416

26

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31, 2012
Consolidated Statement of Cash Flows	As Reported			Adjustment			As Restated
Operating activities:
Miscellaneous income received		258,494			19,048			277,542
Benefit and loss related payments		(520,765	)		(273	)		(521,038	)
Net cash provided by (used in) operating activities	$	237,321		$	18,775		$	256,096
Investing activities:
Net cash (used in) provided by investing activities	$	(227,854	)	$	—		$	(227,854	)
Financing and miscellaneous activities:
Receivable from parent, subsidiaries and affiliates		2,067			(10,992	)		(8,925	)
Payable to parent, subsidiaries and affiliates		(11,400	)		(15,332	)		(26,732	)
Other cash provided (applied)		2,147			7,549			9,696
Net cash (used in) provided by financing and miscellaneous activities	$	4,412		$	(18,775	)	$	(14,363	)

2. Fair Values of Financial Instruments

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.

27

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3).The levels of the fair value hierarchy are as follows:

Level 1 -	Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.
Level 2 -	Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
	a)      Quoted prices for similar assets or liabilities in active markets
	b)      Quoted prices for identical or similar assets or liabilities in non-active markets
	c)      Inputs other than quoted market prices that are observable
	d)      Inputs that are derived principally from or corroborated by observable market data through correlation or other means
Level 3 -	Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect the Company’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

28

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values. Cash in not included in the below tables.

Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair value.

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.

Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing services, which are determined as discussed above in the description of level one and level two values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.

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.

Real Estate: Real estate held for sale is typically valued utilizing independent external appraisers in conjunctions with reviews by qualified internal appraisers. Valuations are primarily based on active market prices, adjusted for any difference in the nature, location or condition of the specific property. If such information is not available, other valuation methods are applied, considering the value that the property’s net earning power will support, the value indicated by recent sales of comparable properties and the current cost of reproducing or replacing the property.

Other Invested Assets: The fair values for other invested assets, which include investments in surplus notes issued by other insurance companies and fixed or variable rate investments with underlying characteristics of bonds, were determined primarily by using indexes, third party pricing services and internal models.

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.

29

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Policy Loans: The fair value of policy loans is equal to the book value of the loan, which is stated at unpaid principal balance.

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 Equivalents and Short-Term Investments and Bonds and Stocks.

Receivable from/Payable to Parent, Subsidiaries and Affiliates: The carrying amount of receivable from/payable to affiliates approximates their fair value.

Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate their fair values.

Investment Contract Liabilities: The carrying value of the Company’s liabilities for deferred annuities with minimum guaranteed benefits is determined using a stochastic valuation as described in Note 6, which approximates the fair value. For investment contracts without minimum guarantees, fair value is estimated using discounted cash flows. For those liabilities that are short in duration, carrying amount approximates fair value. For investment contracts with no defined maturity, fair value is estimated to be the present surrender value.

Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices when available. When not available, they are valued in the same manner as general account assets as further described in this note. The fair value of separate account annuity liabilities is based on the account value for separate accounts business without guarantees.

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.

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.

30

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables set forth a comparison of the estimated fair values and carrying amounts of the Company’s financial instruments, including those not measured at fair value in the balance sheets, as of December 31, 2013 and 2012, respectively:

	December 31 2013
	Estimated Fair Value		Admitted Assets		(Level 1)		(Level 2)		(Level 3)		Not Practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	106,781	$	106,781	$	—	$	106,781	$	—	$	—
Bonds		1,481,846		1,448,053		92,402		1,360,214		29,230		—
Mortgage loans on real estate		79,470		77,805		—		—		79,470		—
Other invested assets		500		500		—		500		—		—
Policy loans		442,800		442,800		—		442,800		—		—
Securities lending reinvested collateral		88,261		88,265		—		88,261		—		—
Receivable from parent, subsidiaries and affiliates		19,859		19,859		—		19,859		—		—
Separate account assets		6,969,477		6,969,477		6,969,477		—		—		—
Liabilities
Investment contract liabilities		415,572		408,065		—		3,735		411,837		—
Deposit-type contracts		21,520		21,520		—		21,520		—		—
Equity swaps		4,100		4,100		—		4,100		—		—
Separate account annuity liabilities		3,383,676		3,383,676		—		3,383,676		—		—
	December 31 2012 - restated
	Estimated Fair Value		Admitted Assets		(Level 1)		(Level 2)		(Level 3)		Not Practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	182,489	$	182,489	$	—	$	182,489	$	—	$	—
Bonds		1,205,473		1,116,229		72,215		1,124,699		8,559		—
Common stocks, other than affiliates		117		117		117		—		—		—
Mortgage loans on real estate		52,182		50,714		—		—		52,182		—
Policy loans		411,101		411,101		—		411,101		—		—
Securities lending reinvested collateral		84,804		84,899		—		84,804		—		—
Receivable from parent, subsidiaries and affiliates		10,992		10,992		—		10,992		—		—
Separate account assets		6,477,241		6,477,241		6,477,241		—		—		—
Liabilities
Investment contract liabilities		495,984		493,117		—		9,346		486,638		—
Deposit-type contracts		14,647		14,647		—		14,647		—		—
Interest rate swaps		1,841		1,841		—		1,841		—		—
Separate account annuity liabilities		3,251,991		3,251,991		—		3,251,991		—		—

31

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, 2013 and 2012:

	2013
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	1,455	$	551	$	2,006
Total bonds		—		1,455		551		2,006
Cash equivalents and short-term investments
Government		—		3		—		3
Industrial and miscellaneous		—		61,490		—		61,490
Mutual funds		—		45,194		—		45,194
Sweep accounts		—		94		—		94
Total Short-term		—		106,781		—		106,781
Separate account assets		—		—		—		—
Total assets at fair value	$	—	$	108,236	$	551	$	108,787
Liabilities:
Derivative liabilities	$	—	$	4,100	$	—	$	4,100
Total liabilities at fair value	$	—	$	4,100	$	—	$	4,100
	2012
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	1,246	$	555	$	1,801
Total bonds		—		1,246		555		1,801
Common stock
Industrial and miscellaneous		117		—		—		117
Total common stock		117		—		—		117
Cash equivalents and short-term investments
Government		—		3		—		3
Industrial and miscellaneous		—		134,981		—		134,981
Mutual funds		—		47,260		—		47,260
Sweep accounts		—		245		—		245
Total Short-term		—		182,489		—		182,489
Separate account assets		6,477,241		—		—		6,477,241
Total assets at fair value	$	6,477,358	$	183,735	$	555	$	6,661,648

32

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 non-binding broker quotes, which cannot be corroborated by other market observable data or internal modeling which utilize inputs that are not market observable.

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.

During 2013 and 2012, there were no transfers between Level 1 and 2, respectively.

33

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables summarize the changes in assets and liabilities classified in Level 3 for 2013 and 2012:

	Balance at January 1, 2013		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income (a)		Total Gains and (Losses) Included in Surplus (b)
Bonds
Other	$	555	$	—	$	—	$	43	$	(27	)
Total	$	555	$	—	$	—	$	43	$	(27	)
	Issuances		Purchases		Sales		Settlements		Balance at December 31, 2013
Bonds
Other	$	—	$	—	$	—	$	20	$	551
Total	$	—	$	—	$	—	$	20	$	551
	Balance at January 1, 2012		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income (a)		Total Gains and (Losses) Included in Surplus (b)
Bonds
Other	$	559	$	—	$	—	$	51	$	(25	)
Total	$	559	$	—	$	—	$	51	$	(25	)
	Issuances		Purchases		Sales		Settlements		Balance at December 31, 2012
Bonds
Other	$	—	$	—	$	—	$	30	$	555
Total	$	—	$	—	$	—	$	30	$	555

(a) Recorded as a component of Net Realized Capital Gains/Losses in the Statements of Operations

(b) Recorded as a component of Change in Net Unrealized Capital Gains/Losses in the Statements of Changes in Capital and Surplus

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

As indicated in Note 1, real estate held for sale is measured at the lower of carrying amount or fair value less cost to sell. The Company is exploring the sale of 2 parcels of land adjacent to its home office properties. Therefore, these 2 properties are carried at fair value less cost to sell as of December 31, 2013, which amounts to $6,259. There was no real estate carried at fair value as of December 31, 2012.

34

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Fair value was determined by utilizing an external appraisal following the sales comparison approach. The fair value measurements are classified in Level 3 as the comparable sales and adjustments for the specific attributes of these properties are not market observable inputs.

3. Investments

The carrying amount and estimated fair value of investments in bonds are as follows:

					Gross		Gross
					Unrealized		Unrealized
			Gross		Losses 12		Losses less		Estimated
	Carrying		Unrealized		Months or		Than 12		Fair
	Amount		Gains		More		Months		Value
December 31, 2013
Unaffiliated bonds:
United States Government and agencies	$	82,813	$	1,150	$	10	$	2,075	$	81,878
State, municipal and other government		32,010		759		354		1,246		31,169
Hybrid securities		19,038		2,622		—		—		21,660
Industrial and miscellaneous		936,439		37,152		1,088		15,148		957,355
Mortgage and other asset-backed securities		377,753		17,489		1,079		4,379		389,784
	$	1,448,053	$	59,172	$	2,531	$	22,848	$	1,481,846
					Gross		Gross
					Unrealized		Unrealized
			Gross		Losses 12		Losses less		Estimated
	Carrying		Unrealized		Months or		Than 12		Fair
	Amount		Gains		More		Months		Value
December 31, 2012
Unaffiliated bonds:
United States Government and agencies	$	52,940	$	5,702	$	—	$	—	$	58,642
State, municipal and other government		27,378		3,421		50		—		30,749
Hybrid securities		19,055		864		1,238		—		18,681
Industrial and miscellaneous		720,424		68,173		24		1,072		787,501
Mortgage and other asset-backed securities		296,432		19,586		6,083		35		309,900
	$	1,116,229	$	97,746	$	7,395	$	1,107	$	1,205,473

At December 31, 2013 and 2012, respectively, for bonds that have been in a continuous loss position for greater than or equal to twelve months, the Company held 26 and 21 securities with a carrying amount of $49,119 and $51,454 and an unrealized loss of $2,531 and $7,394 with an

35

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

average price of 94.9 and 85.6 (fair value/amortized cost). Of this portfolio, 82.2% and 72.4% were investment grade with associated unrealized losses of $1,394 and $5,266, respectively.

At December 31, 2013 and 2012, respectively, for bonds that have been in a continuous loss position for less than twelve months, the Company held 178 and 17 securities with a carrying amount of $609,765 and $61,424 and an unrealized loss of $22,848 and $1,107 with an average price of 96.3 and 98.2 (fair value/amortized cost). Of this portfolio, 98.0% and 88.5% were investment grade with associated unrealized losses of $21,926 and $788, respectively.

The estimated fair value of bonds and common stocks with gross unrealized losses at December 31, 2013 and 2012 are as follows:

	Losses 12		Losses Less
	Months or		Than 12
	More		Months		Total
December 31, 2013
Unaffiliated bonds:
United States Government and agencies	$	540	$	64,656	$	65,196
State, municipal and other government		1,814		14,149		15,963
Industrial and miscellaneous		27,904		380,486		408,390
Mortgage and other asset-backed securities		16,330		127,625		143,955
	$	46,588	$	586,916	$	633,504
	Losses 12		Losses Less
	Months or		Than 12
	More		Months		Total
December 31, 2012
Unaffiliated bonds:
United States Government and agencies	$	—	$	550	$	550
State, municipal and other government		2,120		—		2,120
Hybrid securities		8,250		—		8,250
Industrial and miscellaneous		641		57,229		57,870
Mortgage and other asset-backed securities		33,049		2,539		35,588
		44,060		60,318		104,378
Unaffiliated common stocks		—		116		116
	$	44,060	$	60,434	$	104,494

36

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The carrying amount and estimated fair value of bonds at December 31, 2013, by contractual maturity, is 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.

	Carrying Amount		Estimated Fair Value
Due in one year or less	$	25,979	$	26,476
Due after one year through five years		294,870		311,620
Due after five years through ten years		507,668		510,003
Due after ten years		241,783		243,963
	$	1,070,300	$	1,092,062
Mortgage and other asset-backed securities		377,753		389,784
	$	1,448,053	$	1,481,846

For impairment policies related to non-structured and structured securities, refer to Note 1 under Investments.

There were no loan-backed securities with a recognized other-than-temporary impairment (OTTI) due to intent to sell or lack of intent and ability to hold during the years ended December 31, 2013 or 2011. The following table provides the 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 during the year ended December 31, 2012.

	Amortized
	Cost Basis		OTTI Recognized in Loss
	Before OTTI		Interest		Non-interest		Fair Value
Year Ended December 31, 2012
OTTI recognized 4th Quarter:
Inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis	$	8,122	$	—	$	117	$	8,005
Total 4th Quarter OTTI on loan-backed securities		8,122		—		117		8,005
Aggregate total	$	8,122	$	—	$	117	$	8,005

37

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield.

	Amortized Cost
	before Current				Amortized Cost
	Period OTTI		Recognized OTTI		After OTTI		Fair Value
Year ended December 31, 2013
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	4,934	$	244	$	4,690	$	930
2nd quarter present value of cash flows expected to be less than the amortized cost basis		3,857		64		3,793		403
3rd quarter present value of cash flows expected to be less than the amortized cost basis		6,137		505		5,632		1,815
4th quarter present value of cash flows expected to be less than the amortized cost basis		2,378		104		2,274		2,135
Aggregate total	$	17,306	$	917	$	16,389	$	5,283
	Amortized Cost
	before Current				Amortized Cost
	Period OTTI		Recognized OTTI		After OTTI		Fair Value
Year ended December 31, 2012
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	1,582	$	10	$	1,572	$	926
2nd quarter present value of cash flows expected to be less than the amortized cost basis		6,924		56		6,868		2,062
3rd quarter present value of cash flows expected to be less than the amortized cost basis		31		1		30		18
4th quarter present value of cash flows expected to be less than the amortized cost basis		14,707		317		14,390		9,570
Aggregate total	$	23,244	$	384	$	22,860	$	12,576

38

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2011
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	1,000	$	24	$	976	$	529
2nd quarter present value of cash flows expected to be less than the amortized cost basis		2,733		80		2,653		1,548
3rd quarter present value of cash flows expected to be less than the amortized cost basis		2,604		25		2,579		1,377
4th quarter present value of cash flows expected to be less than the amortized cost basis		3,821		108		3,713		2,307
Aggregate total	$	10,158	$	237	$	9,921	$	5,761

The following loan-backed and structured securities were held at December 31, 2013, for which an OTTI was recognized during the current reporting period:

CUSIP	Amortized Cost Before Current Period OTTI		Present Value of Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time of OTTI		Quarter in which Impairment Occurred
35729PPC8	$	4,000	$	3,869	$	131	$	3,869	$	703		1Q 2013
759950FJ2		934		822		112		822		227		1Q 2013
35729PPC8		3,857		3,793		64		3,793		403		2Q 2013
35729PPC8		3,783		3,598		185		3,598		355		3Q 2013
759950FJ2		818		652		166		652		255		3Q 2013
12668WAC1		813		785		28		785		727		4Q 2013
759950FJ2		201		190		11		190		207		4Q 2013

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, 2013 and 2012 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months
Year Ended December 31, 2013
The aggregate amount of unrealized losses	$	1,974	$	4,389
The aggregate related fair value of securities with unrealized losses		18,285		127,677

39

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Losses 12 Months or More		Losses Less Than 12 Months
Year Ended December 31, 2012
The aggregate amount of unrealized losses	$	11,568	$	35
The aggregate related fair value of securities with unrealized losses		34,850		4,056

Detail of net investment income is presented below:

	Year Ended December 31
	2013			2012			2011
Income:
Bonds	$	55,638		$	47,292		$	41,739
Common stocks		15,510			13,925			18,667
Mortgage loans on real estate		2,542			2,091			1,502
Real estate		4,520			4,409			4,571
Policy loans		22,562			21,841			21,751
Cash, cash equivalents and short-term investments		213			314			386
Derivatives		23			—			(516	)
Other invested assets		(764	)		(684	)		(1,287	)
Other		1,250			1,130			515
Gross investment income		101,494			90,318			87,328
Less investment expenses		9,004			8,589			7,297
Net investment income	$	92,490		$	81,729		$	80,031

Proceeds from sales and other disposals (excluding maturities) of bonds and preferred stock and related gross realized capital gains and losses were as follows:

	Year Ended December 31
	2013			2012			2011
Proceeds	$	312,963		$	324,065		$	258,853
Gross realized gains	$	3,042		$	6,484		$	3,231
Gross realized losses		(6,545	)		(1,347	)		(2,031	)
Net realized capital gains (losses)	$	(3,503	)	$	5,137		$	1,200

The Company had gross realized losses for the years ended December 31, 2013, 2012, and 2011 of $923, $417 and $311, respectively, which relate to losses recognized on other-than-temporary declines in fair values of bonds.

40

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Net realized capital gains (losses) on investments are summarized below:

	Realized
	Year Ended December 31
	2013			2012			2011
Bonds	$	(4,426	)	$	4,720		$	889
Common stocks		—			1			—
Mortgage loans		—			252			237
Real estate		(830	)		—			—
Cash, cash equivalents and short-term investments		—			—			5
Derivatives		13,326			(4,550	)		(13,204	)
Other		(33	)		(170	)		—
		8,037			253			(12,073	)
Federal income tax effect		968			(1,153	)		402
Transfer to interest maintenance reserve		2,098			(3,691	)		(760	)
Net realized capital gains (losses) on investments	$	11,103		$	(4,591	)	$	(12,431	)

The Company did not have any recorded investments in restructured securities at December 31, 2013 and 2011. At December 31, 2012, the Company had recorded investments in restructured securities of $118. The capital gain taken as a direct result of restructures in 2012 was $34. 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.

The changes in net unrealized capital gains and losses on investments were as follows:

	Change in Unrealized
	Year Ended December 31
	2013			2012			2011
Bonds	$	4,581		$	765		$	(999	)
Common stocks		1			(1	)		(3,237	)
Affiliated entities		2,679			342			—
Derivatives		(2,259	)		(1,330	)		461
Other invested assets		—			222			(206	)
Change in unrealized capital gains (losses)		5,002			(2	)		(3,981	)
Taxes on unrealized capital gains/losses		—			120			261
Change in unrealized capital gains (losses), net of tax	$	5,002		$	118		$	(3,720	)

41

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The credit quality of mortgage loans by type of property for the year ended December 31, 2013 were as follows:

	Commercial		Total
AAA - AA	$	26,358	$	26,358
A		51,447		51,447
	$	77,805	$	77,805

The credit quality for commercial mortgage loans was determined based on an internal credit rating model which assigns a letter rating to each mortgage loan in the portfolio as an indicator of the credit quality of the mortgage loan. The internal credit rating model was designed based on rating agency methodology, then modified for credit risk associated with the Company’s mortgage lending process, taking into account such factors as projected future cash flows, net operating income, and collateral value. The model produces a credit rating score and an associated letter rating which is intended to align with S&P ratings as closely as possible. Information supporting the credit risk rating process is updated at least annually.

During 2013, the Company issued mortgage loans with a maximum interest rate of 3.80% and a minimum interest rate of 3.60% for commercial loans. During 2012, the Company issued mortgage loans with a maximum interest rate of 3.75% and a minimum interest rate of 3.70% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the years ending December 31, 2013 and 2012 at the time of origination was 64% and 70%, respectively. During 2013 and 2012, no loans were transferred from affiliated entities.

42

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables provide the age analysis of mortgage loans aggregated by type:

			Residential				Commercial
December 31, 2013	Farm		Insured		All Other		Insured		All Other		Mezzanine		Total
Recorded Investment (All)
(a) Current	$	—	$	—	$	—	$	—	$	77,805	$	—	$	77,805
(b) 30-59 Days Past Due		—		—		—		—		—		—		—
(c) 60-89 Days Past Due		—		—		—		—		—		—		—
(d) 90-179 Days Past Due		—		—		—		—		—		—		—
(e) 180+ Days Past Due		—		—		—		—		—		—		—
			Residential				Commercial
December 31, 2012	Farm		Insured		All Other		Insured		All Other		Mezzanine		Total
Recorded Investment (All)
(a) Current	$	—	$	—	$	—	$	—	$	50,714	$	—	$	50,714
(b) 30-59 Days Past Due		—		—		—		—		—		—		-
(c) 60-89 Days Past Due		—		—		—		—		—		—		—
(d) 90-179 Days Past Due		—		—		—		—		—		—		—
(e) 180+ Days Past Due		—		—		—		—		—		—		—

The Company accrues interest income on impaired loans to the extent deemed collectible (delinquent less than 91 days) and the loan continues to perform under its original or restructured contractual terms. Interest income on nonperforming loans generally is recognized on a cash basis. The Company did not recognize any interest income on impaired loans for the years ended December 31, 2013, 2012 or 2011. The Company did not recognize any interest income on a cash basis for the years ended December 31, 2013, 2012 or 2011.

During 2013, 2012 and 2011, no mortgage loans were foreclosed and transferred to real estate. At December 31, 2013 and 2012, the Company held a mortgage loan loss reserve in the AVR of $759 and $482, respectively.

43

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:

Geographic Distribution							Property Type Distribution
	December 31							December 31
	2013			2012				2013			2012
South Atlantic		57	%		39	%	Retail		46	%		74	%
W. South Central		15			11		Other		34			2
Pacific		12			24		Office		20			24
Middle Atlantic		7			11
W. North Central		6			10
Mountain		3			5

At December 31, 2013, the Company had ownership interest in five LIHTC investments. The remaining years of unexpired tax credits ranged from two to eight and the properties were not subject to regulatory review. The length of time remaining for holding periods ranged from two to thirteen years. There are no contingent equity commitments expected to be paid in the future. There were no impairment losses, write-downs or reclassifications during 2013 related to these credits.

At December 31, 2012, the Company had ownership interest in five LIHTC investments. The remaining years of unexpired tax credits ranged from three to nine and the properties were not subject to regulatory review. The length of time remaining for holding periods ranged from three to fourteen years. There were no contingent equity commitments expected to be paid in the future. There were no impairment losses, write-downs or reclassifications during 2012 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, 2013 and 2012:

		December 31, 2013
Description of State Transferable Tax Credits	State	Carrying Value		Unused Amount*
Low-Income Housing Tax Credits	MA	$	160	$	489
Total		$	160	$	489
		December 31, 2012
Description of State Transferable Tax Credits	State	Carrying Value		Unused Amount*
Low-Income Housing Tax Credits	MA	$	426	$	755
Total		$	426	$	755

* The unused amount reflects credits that the Company deems will be realizable in the period from 2014 to 2015.

The Company had no non-transferable state tax credits.

44

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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, 2013 and 2012, the Company does not have any contracts, aggregated at a counterparty level, with a positive fair value. At December 31, 2013 and 2012, the fair value of all contracts, aggregated at a counterparty level, with a negative fair value amount to $4,100 and $1,841, respectively.

At December 31, 2013 and 2012, respectively, the Company has recorded $(4,100) and $(1,841) 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 2013 or 2012 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

At December 31, 2013 and 2012, respectively, the Company had outstanding receive fixed - pay fixed swaps with a notional amount of $690 and $8.

At December 31, 2013 and 2012, respectively, the Company had outstanding receive fixed - pay floating swaps with a notional amount of $14,368 and $0.

The Company recognized net realized gain (losses) from swaps in the amount of $(3,558), $(3,791) and $0 for the years ended December 31, 2013, 2012, and 2011, respectively.

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 gains (losses) from futures contracts in the amount of $16,914, $758 and $13,203 for the years ended December 31, 2013, 2012 and 2011, respectively.

45

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Open futures contracts at December 31, 2013 and 2012 are as follows:

Long/Short	Number of Contracts	Contract Type	Opening Fair Value		Year-End Fair Value
December 31, 2013
		DJ EURO STOXX
Long	967	March 2014 Futures	$	28,040	$	30,054
		HANG SENG IDX
Long	140	January 2014 Futures		162,918		163,331
		S&P 500
Long	306	March 2014 Futures		134,506		140,844
		S&P 500
Short	135	March 2014 Futures		59,917		62,137
Long/Short	Number of Contracts	Contract Type	Opening Fair Value		Year-End Fair Value
December 31, 2012
		DJ EURO STOXX
Long	529	March 2013 Futures	$	18,310	$	18,290
		HANG SENG IDX
Long	60	January 2013 Futures		8,751		8,779
		S&P 500
Long	44	March 2013 Futures		15,070		15,621

46

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables show the pledged or restricted assets as of December 31, 2013 and 2012, respectively:

	Gross Restricted Current Year
Restricted Asset Category	Total General Account (G/A)		G/A Supporting Separate Account (S/A) Activity		Total S/A Restricted Assets		S/A Assets Supporting G/A Activity		Total
a. Subject to contractual obligation for which liability is not shown	$	—	$	—	$	—	$	—	$	—
b. Collateral held under security lending agreements		88,184		—		—		—		88,184
c. Subject to repurchase agreements		—		—		—		—		—
d. Subject to reverse repurchase agreements		—		—		—		—		—
e. Subject to dollar repurchase agreements		26,475		—		—		—		26,475
f. Subject to dollar reverse repurchase agreements		—		—		—		—		—
g. Placed under option contracts		—		—		—		—		—
h. Letter stock or securities restricted as to sale		—		—		—		—		—
i. On deposit with state(s)		3,526		—		—		—		3,526
j. On deposit with other regulatory bodies		—		—		—		—		—
k. Pledged as collateral not captured in other categories		18,694		—		—		—		18,694
l. Other restricted assets		—		—		—		—		—
m. Total Restricted Assets	$	136,879	$	—	$	—	$	—	$	136,879

47

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Gross Restricted							Percentage
Restricted Asset Category	Total From Prior Year		Increase/ (Decrease)			Total Current Year Admitted Restricted		Gross Restricted to Total Assets			Admitted Restricted to Total Admitted Assets
a. Subject to contractual obligation for which liability is not shown	$	—	$	—		$	—		0.00	%		0.00	%
b. Collateral held under security lending agreements		84,932		3,252			88,184		0.94			0.94
c. Subject to repurchase agreements		—		—			—		0.00			0.00
d. Subject to reverse repurchase agreements		—		—			—		0.00			0.00
e. Subject to dollar repurchase agreements		25,986		489			26,475		0.28			0.28
f. Subject to dollar reverse repurchase agreements		—		—			—		0.00			0.00
g. Placed under option contracts		—		—			—		0.00			0.00
h. Letter stock or securities restricted as to sale		—		—			—		0.00			0.00
i. On deposit with state(s)		3,567		(41	)		3,526		0.04			0.04
j. On deposit with other regulatory bodies		—		—			—		0.00			0.00
k. Pledged as collateral not captured in other categories		14,125		4,569			18,694		0.20			0.20
l. Other restricted assets		—		—			—		0.00			0.00
m. Total Restricted Assets	$	128,610	$	8,269		$	136,879		1.46	%		1.46	%

Assets pledged as collateral not captured in other categories includes invested assets with a carrying value of $18,694 and $14,125, respectively, in conjunction with derivative transactions as of December 31, 2013 and 2012, respectively.

4. Reinsurance

The Company reinsures portions of the risk on certain insurance policies which exceed its established limits, thereby providing a greater diversification of risk and minimizing exposure on larger risks. The Company remains contingently liable with respect to any insurance ceded, and

48

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

this would become an actual liability in the event that the assuming insurance company became unable to meet its obligations under the reinsurance treaty.

Premiums earned reflect the following reinsurance amounts:

	Year Ended December 31
	2013			2012			2011
Direct premiums	$	729,989		$	684,163		$	670,285
Reinsurance assumed - affiliated		—			—			763
Reinsurance ceded - affiliated		(139,956	)		(149,569	)		(143,983	)
Reinsurance ceded - non-affiliated		(48,942	)		(49,886	)		(46,466	)
Net premiums earned	$	541,091		$	484,708		$	480,599

The Company received reinsurance recoveries in the amount of $126,271, $137,800 (restated) and $129,708 during 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $16,802 and $18,533, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2013 and 2012 of $491,148 and $631,262, respectively. As of December 31, 2013 and 2012, the amount of reserve credits for reinsurance ceded that represented unauthorized affiliated companies were $433,483 and $571,479, respectively.

The Company would experience no reduction in surplus at December 31, 2013 if all reinsurance agreements were cancelled.

On July 1, 2013, the Company recaptured certain treaties from a non-affiliate, for which net consideration received was $1,174, life and claim reserves recaptured were $3,296, premiums recaptured were $2,004, and claims recaptured were $956, resulting in a pre-tax loss of $1,081, which was included in the Statement of Operations.

On April 26, 2011, Aegon N.V announced the divestiture 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 divestiture 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

49

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

(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 was included in the statement of operations as of December 31, 2011. The cession to TIRe resulted in a net of tax gain of $63,541, which was credited directly to unassigned surplus at December 31, 2011.

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 was included in the statement of operations at December 31, 2011.

During 2013, 2012 and 2011, the Company amortized deferred gains from reinsurance transactions occurring prior to 2011 of $15,661, $21,315 (restated) and $21,792, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

Letters of credit held for all unauthorized reinsurers as of December 31, 2013, 2012 and 2011 were $196,300, $179,100 and $273,000, respectively.

50

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

5. Income Taxes

The net deferred income tax asset at December 31, 2013 and 2012 and the change from the prior year are comprised of the following components:

	December 31, 2013
	Ordinary		Capital		Total
Gross Deferred Tax Assets	$	188,007	$	5,014	$	193,021
Statutory Valuation Allowance Adjustment		—		—		—
Adjusted Gross Deferred Tax Assets		188,007		5,014		193,021
Deferred Tax Assets Nonadmitted		98,096		—		98,096
Subtotal (Net Deferred Tax Assets)		89,911		5,014		94,925
Deferred Tax Liabilities		6,726		1,814		8,540
Net Admitted Deferred Tax Assets	$	83,185	$	3,200	$	86,385

	December 31, 2012 – restated
	Ordinary		Capital		Total
Gross Deferred Tax Assets	$	204,072	$	5,477	$	209,549
Statutory Valuation Allowance Adjustment		—		—		—
Adjusted Gross Deferred Tax Assets		204,072		5,477		209,549
Deferred Tax Assets Nonadmitted		94,756		225		94,981
Subtotal (Net Deferred Tax Assets)		109,316		5,252		114,568
Deferred Tax Liabilities		8,074		1,353		9,427
Net Admitted Deferred Tax Assets	$	101,242	$	3,899	$	105,141

	Ordinary			Change Capital			Total
Gross Deferred Tax Assets	$	(16,065	)	$	(463	)	$	(16,528	)
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		(16,065	)		(463	)		(16,528	)
Deferred Tax Assets Nonadmitted		3,340			(225	)		3,115
Subtotal (Net Deferred Tax Assets)		(19,405	)		(238	)		(19,643	)
Deferred Tax Liabilities		(1,348	)		461			(887	)
Net Admitted Deferred Tax Assets	$	(18,057	)	$	(699	)	$	(18,756	)

51

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:

	Year Ended December 31
	2013		2012		Change
			Restated
Ordinary
Policyholder reserves	$	87,923	$	105,158		(17,235	)
Investments		1,436		644		792
Deferred acquisition costs		83,907		85,238		(1,331	)
Compensation and benefits accrual		458		470		(12	)
Receivables - nonadmitted		13,607		10,866		2,741
Corporate Provision		—		350		(350	)
Other (including items <5% of ordinary tax assets)		676		1,346		(670	)
Subtotal		188,007		204,072		(16,065	)
Nonadmitted		98,096		94,756		3,340
Admitted ordinary deferred tax assets		89,911		109,316		(19,405	)
Capital:
Investments		5,014		5,477		(463	)
Other (including items <5% of total total capital tax assets)		—		—		—
Subtotal		5,014		5,477		(463	)
Nonadmitted		—		225		(225	)
Admitted capital deferred tax assets		5,014		5,252		(238	)
Admitted deferred tax assets	$	94,925	$	114,568	$	(19,643	)

	Year Ended December 31
	2013		2012		Change
			Restated
Deferred Tax Liabilities:
Ordinary
Investments	$	27	$	295	$	(268	)
§807(f) adjustment		6,075		7,769		(1,694	)
Other (including items <5% of total ordinary tax liabilities)		291		10		281
Subtotal		6,393		8,074		(1,681	)
Capital
Investments		2,147		1,353		794
Other (including items <5% of total capital tax liabilities)		—		—		—
Subtotal		2,147		1,353		794
Deferred tax liabilities		8,540		9,427		(887	)
Net deferred tax assets/liabilities	$	86,385	$	105,141	$	(18,756	)

The Company did not record a valuation allowance for deferred tax assets as of December 31, 2013 and 2012.

52

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

As discussed in Note 1, for the years ended December 31, 2013 and 2012 the Company admits deferred income tax assets pursuant to SSAP No. 101. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 101 is as follows:

	December 31, 2013
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	59,186	$	568	$	59,754
2(b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		23,999		2,632		26,631
1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		23,999		2,632		26,631
2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		43,246
2(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2( a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		6,726		1,814		8,540
2(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	89,911	$	5,014	$	94,925

	December 31, 2012 - restated
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	78,322	$	1,538	$	79,860
2(b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		22,921		2,360		25,281
1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		22,921		2,360		25,281
2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		32,425
2(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2( a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		8,074		1,353		9,427
2(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	109,317	$	5,251	$	114,568

53

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Ordinary			Change Capital			Total
Admission Calculation Components SSAP No. 101
2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	(19,136	)	$	(970	)	$	(20,106	)
2(b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		1,078			272			1,350
1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		1,078			272			1,350
2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX			XXX			10,821
2(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		(1,348	)		461			(887	)
2(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	(19,406	)	$	(237	)	$	(19,643	)

	December 31
	2013			2012			Change
				Restated
Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount		660	%		629	%		31	%
Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 above	$	319,063		$	233,275		$	85,788

54

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The impact of tax planning strategies at December 31, 2013 and 2012 was as follows:

	December 31, 2013
	Ordinary			Capital
	Percent			Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	188,007		$	5,014		$	193,021
(% of Total Adjusted Gross DTAs)		0	%		89	%		2	%
Net Admitted Adjusted Gross DTAs	$	89,911		$	5,014		$	94,925
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		52	%		3	%

	December 31, 2012 - restated
	Ordinary			Capital
	Percent			Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	204,072		$	5,477		$	209,549
(% of Total Adjusted Gross DTAs)		0	%		72	%		2	%
Net Admitted Adjusted Gross DTAs	$	109,317		$	5,251		$	114,568
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		38	%		2	%

				Change
	Ordinary			Capital
	Percent			Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	(16,065	)	$	(463	)	$	(16,528	)
(% of Total Adjusted Gross DTAs)		0	%		17	%		0	%
Net Admitted Adjusted Gross DTAs	$	(19,406	)	$	(237	)	$	(19,643	)
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		14	%		1	%

The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.

55

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Current income taxes incurred consist of the following major components:

	Year Ended December 31
	2013			2012		Change
				Restated
Current Income Tax
Federal	$	25,592		$	20,548	$	5,044
Foreign		—			—		—
Subtotal		25,592			20,548		5,044
Federal income tax on net capital gains		(968	)		1,153		(2,121	)
Utilization of capital loss carry-forwards		—			—		—
Other		—			—		—
Federal and foreign income taxes incurred	$	24,624		$	21,701	$	2,923

	Year Ended December 31
	2012		2011			Change
	Restated
Current Income Tax
Federal	$	20,548	$	9,379		$	11,169
Foreign		—		—			—
Subtotal		20,548		9,379			11,169
Federal income tax on net capital gains		1,153		(402	)		1,555
Utilization of capital loss carry-forwards		—		—			—
Other		—		—			—
Federal and foreign income taxes incurred	$	21,701	$	8,977		$	12,724

56

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate of 35% to income before tax as follows:

	Year Ended December 31
	2013			2012			2011
				Restated
Current income taxes incurred	$	24,624		$	21,701		$	8,977
Change in deferred income taxes (without tax on unrealized gains and losses)		14,829			12,437			(18,337	)
Total income tax reported	$	39,453		$	34,138		$	(9,360	)
Income before taxes	$	182,335		$	155,387		$	(2,209	)
		35.00	%		35.00	%		35.00	%
Expected income tax expense (benefit) at 35% statutory rate	$	63,817		$	54,385		$	(773	)
Increase (decrease) in actual tax reported resulting from:
Dividends received deduction		(13,794	)		(9,949	)		(13,603	)
Tax credits		(499	)		(847	)		(1,817	)
Tax-exempt Income		(11	)		—			—
Tax adjustment for IMR		(269	)		(531	)		(464	)
Surplus adjustment for in-force ceded		(5,481	)		(7,460	)		14,570
Nondeductible expenses		7			9			53
Deferred tax benefit on other items in surplus		(2,725	)		(258	)		(5,245	)
Provision to return		(583	)		(569	)		(498	)
Life-owned life insurance		(809	)		(808	)		(798	)
Dividends from certain foreign corporations		124			179			165
Prior period adjustment		—			—			(810	)
Other		(324	)		(13	)		(140	)
Total income tax reported	$	39,453		$	34,138		$	(9,360	)

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 2013.

57

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

As of December 31, 2013 and 2012, the Company had no operating loss, capital loss or tax credit carryforwards available for tax purposes.

The Company incurred income taxes during 2013, 2012 and 2011 of $25,819, $23,920 (restated) and $10,171, 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, 2013 and 2012 is $398 and $635, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $398. The Company classifies interest and penalties related to income taxes as income tax expense. The Company’s interest expense related to income taxes for the years ending December 31, 2013, 2012 and 2011 is $17, $34 and $107, respectively. The total interest payable balance as of December 31, 2013 and 2012 is $16 and $43, 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.

58

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

6. Policy and Contract Attributes

A portion of the Company’s policy reserves and other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity and deposit fund products. 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:

	December 31, 2013
	General Account		Separate Account Non-Guaranteed		Total		Percent
Subject to discretionary withdrawal
With fair value adjustment	$	6,430	$	—	$	6,430		0	%
At book value less surrender charge of 5% or more		17,134		—		17,134		0
At fair value		10,146		3,383,580		3,393,727		85
Total with adjustment or at fair value		33,710		3,383,580		3,417,291		85
At book value without adjustment (minimal or no charge or adjustment)		338,449		—		338,449		9
Not subject to discretionary withdrawal		224,984		24,398		249,381		6
Total annuity reserves and deposit liabilities		597,143		3,407,978		4,005,121		100	%
Less reinsurance ceded		176,169		—		176,169
Net annuity reserves and deposit liabilities	$	420,974	$	3,407,978	$	3,828,952

59

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31, 2012
	General Account		Separate Account Non-Guaranteed		Total		Percent
Subject to discretionary withdrawal
With fair value adjustment	$	12,653	$	—	$	12,653		0	%
At book value less surrender charge of 5% or more		23,271		—		23,271		1
At fair value		10,303		3,251,952		3,262,255		79
Total with adjustment or at fair value		46,226		3,251,952		3,298,179		80
At book value without adjustment (minimal or no charge or adjustment)		356,324		—		356,324		9
Not subject to discretionary withdrawal		460,643		17,530		478,173		11
Total annuity reserves and deposit liabilities		863,193		3,269,482		4,132,676		100	%
Less reinsurance ceded		359,372		—		359,372
Net annuity reserves and deposit liabilities	$	503,822	$	3,269,482	$	3,773,304

Information regarding the separate accounts of the Company is as follows:

	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonindexed Guaranteed More Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2013	$	—	$	—	$	—	$	282,851	$	282,851
Reserves for accounts with assets at fair value at December 31, 2013	$	—	$	—	$	—	$	6,751,640	$	6,751,640
Reserves for separate accounts by withdrawal characteristics as of December 31, 2013:
Subject to discretionary withdrawal:	$	—	$	—	$	—	$	—	$	—
With fair value adjustment		—		—		—		—		—
At book value without fair value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		6,727,242		6,727,242
At book value without fair value adjustment and with current surrender charge of less than 5%		—		—		—		—		—
Subtotal		—		—		—		6,727,242		6,727,242
Not subject to discretionary withdrawal		—		—		—		24,398		24,398
Total separate account liabilities at December 31, 2013	$	—	$	—	$	—	$	6,751,640	$	6,751,640

60

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonindexed Guaranteed More Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2012	$	—	$	—	$	—	$	305,221	$	305,221
Reserves for accounts with assets at fair value at December 31, 2012	$	—	$	—	$	—	$	6,184,833	$	6,184,833
Reserves for separate accounts by withdrawal characteristics as of December 31, 2012:
Subject to discretionary withdrawal:	$	—	$	—	$	—	$	—	$	—
With fair value adjustment		—		—		—		—		—
At book value without fair value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		6,167,303		6,167,303
At book value without fair value adjustment and with current surrender charge of less than 5%		—		—		—		—		—
Subtotal		—		—		—		6,167,303		6,167,303
Not subject to discretionary withdrawal		—		—		—		17,530		17,530
Total separate account liabilities at December 31, 2012	$	—	$	—	$	—	$	6,184,833	$	6,184,833

	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonindexed Guaranteed More Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2011	$	—	$	—	$	—	$	349,011	$	349,011
Reserves for accounts with assets at fair value at December 31, 2011	$	—	$	—	$	—	$	6,130,295	$	6,130,295
Reserves for separate accounts by withdrawal characteristics as of December 31, 2011:
Subject to discretionary withdrawal:	$	—	$	—	$	—	$	—	$	—
With fair value adjustment		—		—		—		—		—
At book value without fair value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		6,119,486		6,119,486
At book value without fair value adjustment and with current surrender charge of less than 5%		—		—		—		—		—
Subtotal		—		—		—		6,119,486		6,119,486
Not subject to discretionary withdrawal		—		—		—		10,809		10,809
Total separate account liabilities at December 31, 2011	$	—	$	—	$	—	$	6,130,295	$	6,130,295

61

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 Company’s separate accounts is presented below:

	Year Ended December 31
	2013			2012			2011
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	282,994		$	305,223		$	349,322
Transfers from separate accounts		733,373			619,557			604,330
Net transfers from separate accounts		(450,379	)		(314,334	)		(255,008	)
Miscellaneous reconciling adjustments		169,572			206,848			192,445
Net transfers as reported in the statement of operations of the Company	$	(280,807	)	$	(107,485	)	$	(62,563	)

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, 2013 and 2012, the Company’s separate account statement included legally insulated assets of $6,969,476 and $6,477,236, respectively. The assets legally insulated from general account claims at December 31, 2013 and 2012 are attributed to the following products:

Product	2013		2012
Variable annuities	$	3,418,039	$	3,285,825
Variable universal life		433,847		502,202
WRL asset accumulator		13,874		19,390
Variable life		3,103,717		2,669,818
Total separate account assets	$	6,969,477	$	6,477,236

The Company does not participate in securities lending transactions within the separate account.

For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with 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).

62

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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, 2013 and 2012, the Company had variable and separate account annuities with minimum guaranteed benefits as follows:

Benefit and Type of Risk	Subjected Account Value		Amount of Reserve Held		Reinsurance Reserve Credit
December 31, 2013
Minimum guaranteed death benefit	$	1,972,229	$	43,201	$	32,994
Minimum guaranteed income benefit		911,702		151,267		140,999
Minimum guaranteed withdrawal benefit		743,795		121		—
December 31, 2012
Minimum guaranteed death benefit	$	1,944,966	$	115,540	$	72,996
Minimum guaranteed income benefit		888,320		335,636		296,170
Minimum guaranteed withdrawal benefit		493,265		1,294		—

The Company offers variable and separate account annuities with minimum guaranteed benefits. 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, 2013 and 2012, the general account of the Company had a maximum guarantee for separate account liabilities of $397,079 and $560,717, respectively. To compensate the general account for the risk taken, the separate account paid risk charges of $9,769, $10,487 and $11,446 to the general account in 2013, 2012 and 2011, respectively. During the years ended December 31, 2013, 2012 and 2011, the general account of the Company had paid $11,952, $12,243 and $12,975, respectively, toward separate account guarantees.

63

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 policies’ paid-through date to the policy’s next anniversary date. At December 31, 2013 and 2012, the gross premium and loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:

	Gross		Loading		Net
December 31, 2013
Ordinary direct renewal business	$	—	$	—	$	—
Ordinary new business		1,739		1,026		2,765
	$	1,739	$	1,026	$	2,765
December 31, 2012
Ordinary direct renewal business	$	1,631	$	1,103	$	2,734
Ordinary new business		1		—		1
	$	1,631	$	1,103	$	2,735

At December 31, 2013 and 2012, the Company had insurance in force aggregating $2,281,861 and $3,228,205, 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 $17,449 and $22,152 to cover these deficiencies at December 31, 2013 and 2012, respectively.

7. Capital and Surplus

The Company is subject to limitations, imposed by the Ohio Department of Insurance, on the payment of dividends to its stockholders. Generally, dividends during any year may not be paid, without prior regulatory approval, in excess of the greater of (a) 10 percent of Company’s 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 2014, without the prior approval of insurance regulatory authorities, is $159,809.

On December 23, 2013, the Company paid common stock dividends of $50,000 to its parent company, Aegon. The Company received dividends of $13,090 and $2,420, from its subsidiaries, Transamerica Asset Management, Inc., and Transamerica Fund Services, Inc, respectively, during 2013.

On December 21, 2012, the Company paid common stock dividends of $27,000 to its parent company, Aegon. The Company received dividends of $11,550, $2,200 and $175, from its subsidiaries, Transamerica Asset Management, Inc., Transamerica Fund Services, Inc, and Intersecurities Insurance Agency, Inc., respectively, during 2012.

64

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

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, 2013, 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, 2013 and 2012, respectively, securities in the amount of $85,026 and $81,764 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 $88,261 and $84,804 at December 31, 2013 and 2012, respectively.

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
Open	$	88,184
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Sub-Total		88,184
Securities received		—
Total collateral received	$	88,184

65

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company receives primarily cash collateral in an amount in excess of the fair value of the securities lent. The Company reinvests the cash collateral into higher yielding securities than the securities which the Company has lent to other entities under the arrangement.

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

	Amortized Cost		Fair Value
Open	$	5,395	$	5,395
30 days or less		41,077		41,073
31 to 60 days		24,260		24,260
61 to 90 days		12,634		12,634
91 to 120 days		901		901
121 to 180 days		3,998		3,998
181 to 365 days		—		—
1 to 2 years		—		—
2-3 years		—		—
Greater than 3 years		—		—
Total		88,265		88,261
Securities received		—		—
Total collateral reinvested	$	88,265	$	88,261

For securities lending, the Company’s sources of cash that it uses to return the cash collateral are dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $88,267 (fair value of $88,261) that are currently tradable securities that could be sold and used to pay for the $88,184 in collateral calls that could come due under a worst-case scenario.

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 $490, $627 and $1,255 for the years ended December 31, 2013, 2012 and 2011, 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

66

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 $260, $280 and $532 for the years ended December 31, 2013, 2012 and 2011, 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 2013, 2012 and 2011 was none. 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 with an intercompany cost sharing arrangement. The Company expensed $117, $110 and $210 for the years ended 2013, 2012 and 2011, 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 $51,725, $44,117, and $33,717 during 2013, 2012 and 2011, 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 $24,966, $23,814, and $24,411 from this agreement during 2013, 2012 and 2011, respectively.

Receivables from and payables to affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. At December 31, 2013, and 2012, the Company reported a net amount of $19,859 and $10,992 (restated), respectively, due from affiliates. Terms of settlement

67

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

require that these amounts are settled within 90 days. During 2013, 2012 and 2011, the Company paid net interest of $8, $12, and $39, respectively, to affiliates.

In prior years, the Company purchased life insurance policies covering the lives of certain employees of the Company from an affiliate. At December 31, 2013 and 2012, the cash surrender value of these policies was $75,881 and $75,295, 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 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.

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 $448 and $1,624 and an offsetting premium tax benefit of $222 and $809 at December 31, 2013 and 2012, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund expense was $252, $60 and $(1,824) for 2013, 2012 and 2011, respectively.

The Company had no contingent commitments or LIHTC commitments as of December 31, 2013 and 2012.

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, 2013 and 2012, respectively, the Company pledged assets in the amount of $18,694 and $14,125 to satisfy the requirements of futures trading accounts.

68

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

12. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

The Company enters into dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received. At December 31, 2013 and 2012, the Company had dollar repurchase agreements outstanding in the amount of $26,475 and $25,986, respectively. The Company had an outstanding liability for borrowed money in the amount $26,718 and $26,355 at December 31, 2013 and 2012, respectively due to participation in dollar repurchase agreements which includes accrued interest. The Company did not participate in dollar repurchase agreements at December 31, 2011.

The contractual maturities of the dollar repurchase agreement positions are as follows:

	Fair Value
Open	$	26,624
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Sub-Total		26,624
Securities received		—
Total collateral received	$	26,624

In the course of the Company’s asset management, securities are sold and reacquired within 30 days of the sale date to enhance the Company’s yield on its investment portfolio. There were no securities of NAIC designation 3 or below sold during 2013 and reacquired within 30 days of the sale date.

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 issued, 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). The Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2013 through the date the financial statements are issued.

The Company is not subject to the annual fee imposed under section 9010 of the Affordable Care Act due to the Company’s health insurance premium falling below the $25 million threshold at which the fee applies.

69

Statutory-Basis Financial

Statement Schedules

Western Reserve Life Assurance Co. of Ohio

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2013

Schedule I

Type of Investment	Cost (1)		Fair Value		Amount at Which Shown in the Balance Sheet (2)
Fixed maturities
Bonds:
United States government and government agencies and authorities	$	112,477 $		112,950	$	112,477
States, municipalities and political subdivisions		53,342		52,613		53,342
Foreign governments		20,728		20,645		20,728
Hybrid securities		19,038		21,660		19,038
All other corporate bonds		1,243,373		1,273,978		1,242,468
Total fixed maturities		1,448,958		1,481,846		1,448,053
Mortgage loans on real estate		77,805				77,805
Real estate		33,641				33,641
Cash, cash equivalents and short-term investments		110,547				110,547
Policy loans		442,800				442,800
Securities lending reinvested collateral assets		88,265				88,265
Other invested assets		3,012				3,012
Total investments	$	2,205,028			$	2,204,123

(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.

(2) Corporate bonds of $2,006 are held at fair value rather than amortized cost due to having and NAIC 6 rating.

70

Western Reserve Life Assurance Co. of Ohio

Supplementary Insurance Information

(Dollars in Thousands)

Schedule III

	Future Policy Benefits and Expenses		Policy and Contract Liabilities		Premium Revenue		Net Investment Income*		Benefits, Claims, Losses and Settlement Expenses		Other Operating Expenses*
Year ended December 31, 2013
Individual life	$	1,478,901	$	24,359	$	515,740	$	69,314	$	563,939	$	345,287
Group life and health		42,505		84		12,399		1,834		12,357		4,341
Annuity		389,341		642		12,952		21,342		187,631		(367,480	)
	$	1,910,747	$	25,085	$	541,091	$	92,490	$	763,927	$	(17,852	)
Year ended December 31, 2012 - restated
Individual life	$	1,269,626	$	24,833	$	458,257	$	57,260	$	301,282	$	358,243
Group life and health		32,078		313		12,904		1,296		9,674		9,421
Annuity		481,279		1,193		13,547		23,173		243,747		(210,941	)
	$	1,782,983	$	26,339	$	484,708	$	81,729	$	554,703	$	156,723
Year ended December 31, 2011
Individual life	$	1,182,368	$	27,384	$	447,724	$	54,583	$	248,384	$	428,545
Group life and health		24,599		313		10,631		1,016		8,035		7,554
Annuity		540,352		1,617		22,244		24,432		341,509		(222,539	)
	$	1,747,319	$	29,314	$	480,599	$	80,031	$	597,928	$	213,560

* 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.

71

Western Reserve Life Assurance Co. of Ohio

Reinsurance

(Dollars in Thousands)

Schedule IV

	Gross Amount		Ceded to Other Companies		Assumed From Other Companies		Net Amount		Percentage of Amount Assumed to Net
Year ended December 31, 2013
Life insurance in force	$	90,587,615	$	22,500,865	$	—	$	68,086,750		0	%
Premiums:
Individual life	$	674,998	$	159,258	$	—	$	515,740		0	%
Group life and health		28,039		15,640		—		12,399		0	%
Annuity		26,952		14,000		—		12,952		0	%
	$	729,989	$	188,898	$	—	$	541,091		0	%
Year ended December 31, 2012
Life insurance in force	$	119,611,140	$	63,828,956	$	—	$	55,782,184		0	%
Premiums:
Individual life	$	633,538	$	175,282	$	—	$	458,256		0	%
Group life and health		26,038		13,133		—		12,905		0	%
Annuity		24,587		11,040		—		13,547		0	%
	$	684,163	$	199,455	$	—	$	484,708		0	%
Year ended December 31, 2011
Life insurance in force	$	115,294,179	$	64,174,427	$	—	$	51,119,752		0	%
Premiums:
Individual life	$	612,636	$	165,675	$	763	$	447,724		0	%
Group life		23,890		13,259		—		10,631		0	%
Annuity		33,760		11,516		—		22,244		0	%
	$	670,286	$	190,450	$	763	$	480,599		0	%

72

Transamerica Premier Audited Financials

F I N A N C I A L S T A T E M E N T S A N D S C H E D U L E S – S T A T U T O R Y B A S I S

Monumental Life Insurance Company

Years Ended December 31, 2013, 2012 and 2011

Mon Life 2013 SEC

Monumental Life Insurance Company

Financial Statements and Schedules – Statutory Basis

Years Ended December 31, 2013, 2012 and 2011

Contents

Report of Independent Auditors	1
Audited Financial Statements
Balance Sheets – Statutory Basis	3
Statements of Operations – Statutory Basis	5
Statements of Changes in Capital and Surplus – Statutory Basis	7
Statements of Cash Flow – Statutory Basis	9
Notes to Financial Statements – Statutory Basis	11
Statutory-Basis Financial Statement Schedules	102
Summary of Investments – Other Than Investments in Related Parties	103
Supplementary Insurance Information	104
Reinsurance	105

Mon Life 2013 SEC

Report of Independent Auditors

The Board of Directors

Monumental Life Insurance Company

We have audited the accompanying statutory-basis financial statements of Monumental Life Insurance Company, which comprise the balance sheets as of December 31, 2013 and 2012, 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, 2013, and the related notes to the financial statements. Our audits also included the statutory-basis financial statement schedules required by Regulation S-X, Article 7.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa. Management also is responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 1, to meet the requirements of Iowa the financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles are described in Note 1. The effects on the accompanying financial statements of these variances are not reasonably determinable but are presumed to be material.

Mon Life 2013 SEC 1

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the effects of the matter described in the preceding paragraph, the statutory-basis financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of Monumental Life Insurance Company at December 31, 2013 and 2012, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2013.

Opinion on Statutory-Basis of Accounting

However, in our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of Monumental Life Insurance Company at December 31, 2013 and 2012, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2013 in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa. 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.

/s/ Ernst & Young LLP

April 25, 2014

Mon Life 2013 SEC 2

Monumental Life Insurance Company

Balance Sheets – Statutory Basis

(Dollars in Thousands, Except per Share Amounts)

	December 31
	2013		2012
Admitted assets
Cash and invested assets:
Cash, cash equivalents and short-term investments	$	558,923	$	1,355,524
Bonds:
Affiliated entities		57,200		57,200
Unaffiliated entities		12,324,799		12,391,672
Preferred stocks		9,541		8,418
Common stocks:
Affiliated entities (Cost: 2013- $32,862; 2012- $37,366)		16,599		25,872
Unaffiliated (Cost: 2013- $44,500; 2012- $76,945)		45,669		79,006
Mortgage loans on real estate		1,692,860		1,864,851
Real estate, at cost less allowance for depreciation (2013—$26; 2012—$26)		385		411
Real estate held for sale		6,900		4,792
Policy loans		470,549		477,665
Receivables for securities		—		2,798
Collateral balance		8,787		11,367
Derivatives		186,389		129,733
Securities lending reinvested collateral assets		322,209		350,329
Other invested assets		796,575		851,509
Total cash and invested assets		16,497,385		17,611,147
Premiums deferred and uncollected		178,129		201,418
Accrued investment income		166,253		170,354
Federal and foreign income tax recoverable		5,496		46,400
Net deferred income tax asset		162,711		199,932
Receivable from parent, subsidiaries and affiliates		30,774		1,788
Cash surrender value of life insurance policies		79,733		77,229
Reinsurance receivable		18,708		25,459
Goodwill		6,582		7,773
Contribution receivable from parent		135,000		—
Other assets		46,466		46,172
Separate account assets		14,526,003		12,669,510
Total admitted assets	$	31,853,240	$	31,057,182

Mon Life 2013 SEC 3

Monumental Life Insurance Company

Balance Sheets – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Amounts)

	December 31
	2013			2012
Liabilities and capital and surplus
Liabilities:
Aggregate reserves for policies and contracts:
Life	$	5,833,288		$	5,840,790
Annuity		3,425,826			3,629,809
Accident and health		716,358			562,271
Policy and contract claim reserves:
Life		127,459			78,293
Accident and health		110,669			120,190
Liability for deposit-type contracts		675,895			889,345
Other policyholders’ funds		6,596			6,872
Remittances and items not allocated		4,159			4,504
Reinsurance in unauthorized companies		1,980			2,167
Asset valuation reserve		243,972			191,992
Interest maintenance reserve		302,888			361,935
Funds held under reinsurance agreements		4,274,529			5,104,202
Payable for securities		—			2
Payable to parent, subsidiaries and affiliates		—			34,378
Transfers from separate accounts due or accrued		(29,291	)		(265	)
Deferred derivative gain		3,616			3,822
Derivatives		25,231			72,512
Payable for securities lending		322,209			350,329
Payable for derivative cash collateral		150,115			213,947
Borrowed money		53,453			6,222
Other liabilities		107,061			103,035
Separate account liabilities		14,526,003			12,669,510
Total liabilities		30,882,016			30,245,862
Capital and surplus:
Common stock:
Class A common stock, $750 par value, 10,000 shares authorized, 9,818.93 issued and outstanding		7,364			7,364
Class B common stock, $750 par value, 10,000 shares authorized, 3,697.27 issued and outstanding		2,773			2,773
Surplus notes		160,000			160,000
Paid-in surplus		757,199			621,273
Unassigned surplus		43,888			19,910
Total capital and surplus		971,224			811,320
Total liabilities and capital and surplus	$	31,853,240		$	31,057,182

See accompanying notes.

Mon Life 2013 SEC 4

Monumental Life Insurance Company

Statements of Operations – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
Revenues:
Premiums and other considerations, net of reinsurance:
Life	$	449,210		$	333,981		$	262,979
Annuity		701,427			606,706			546,479
Accident and health		555,840			581,030			593,764
Net investment income		729,329			822,314			842,041
Amortization of interest maintenance reserve		15,572			11,029			4,412
Commissions and expense allowances on reinsurance ceded		209,400			377,804			529,883
Income from fees associated with investment management, administration and contract guarantees for separate accounts		40,883			36,701			34,847
Reserve adjustments on reinsurance ceded		(226,238	)		(762,679	)		(151,484	)
Consideration on reinsurance transaction		692			34			(3,039	)
Other income		14,666			8,463			8,885
		2,490,781			2,015,383			2,668,767
Benefits and expenses:
Benefits paid or provided for:
Life and accident and health benefits		511,898			465,017			488,759
Annuity benefits		313,064			306,295			275,877
Surrender benefits		1,019,522			824,936			731,102
Other benefits		84,131			66,556			67,452
Increase (decrease) in aggregate reserves for policies and contracts:
Life		(7,502	)		(315,073	)		71,596
Annuity		(203,983	)		(210,254	)		(180,075	)
Accident and health		154,087			41,635			15,919
		1,871,217			1,179,112			1,470,630
Insurance expenses:
Commissions		318,089			307,592			320,563
General insurance expenses		220,220			218,792			223,933
Taxes, licenses and fees		46,267			31,215			28,925
Net transfers from separate accounts		(312,793	)		(189,380	)		(136,670	)
Change in provision for liquidity guarantees		(1,485	)		(2,050	)		1,120
Reinsurance reserve adjustment		(10	)		(10	)		(21	)
Funds withheld ceded investment income		138,640			213,973			211,608
Experience refunds		247			(319	)		(140	)
Other expenses		6,918			662			5,347
		416,093			580,475			654,665
Total benefits and expenses		2,287,310			1,759,587			2,125,295
Gain from operations before dividends to policyholders, federal income tax expense and net realized capital losses on investments	$	203,471		$	255,796		$	543,472

Mon Life 2013 SEC 5

Monumental Life Insurance Company

Statements of Operations – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
Dividends to policyholders	$	1,259		$	1,279		$	1,342
Gain from operations before federal income tax expense and net realized capital losses on investments		202,212			254,517			542,130
Federal income tax expense		23,987			103,095			31,580
Gain from operations before net realized capital losses on investments		178,225			151,422			510,550
Net realized capital losses on investments (net of related federal income taxes and amounts tranferred to/from interest maintenance reserve)		(11,351	)		(7,876	)		(28,842	)
Net income	$	166,874		$	143,546		$	481,708

See accompanying notes.

Mon Life 2013 SEC 6

Monumental Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis

(Dollars in Thousands)

	Class A Common Stock		Class B Common Stock		Write-Ins for Other than Special Surplus Funds			Surplus Notes		Paid-in Surplus		Unassigned Surplus (Deficit)			Total Capital and Surplus
Balance at January 1, 2011	$	7,364	$	2,773	$	97,381		$	160,000	$	620,616	$	286,288			1,174,422
Net income		—		—		—			—		—		481,708			481,708
Change in net unrealized capital gains/losses, net of taxes		—		—		—			—		—		(12,083	)		(12,083	)
Change in nonadmitted assets		—		—		—			—		—		(246,969	)		(246,969	)
Change in liability for reinsurance in unauthorized companies		—		—		—			—		—		(234	)		(234	)
Change in net deferred income tax asset		—		—		—			—		—		218,165			218,165
Change in asset valuation reserve		—		—		—			—		—		(30,847	)		(30,847	)
Change in surplus as a result of reinsurance		—		—		—			—		—		(321,587	)		(321,587	)
Increase in admitted deferred tax assets pursuant to SSAP No. 10R		—		—		23,739			—		—		—			23,739
Dividends to stockholders		—		—		—			—		—		(300,000	)		(300,000	)
Correction of funds withheld investment income		—		—		—			—		—		(5,636	)		(5,636	)
Long-term incentive compensation		—		—		—			—		175		—			175
Balance at December 31, 2011		7,364		2,773		121,120			160,000		620,791		68,805			980,853
Net income		—		—		—			—		—		143,546			143,546
Change in net unrealized capital gains/losses, net of taxes		—		—		—			—		—		(33,259	)		(33,259	)
Change in nonadmitted assets		—		—		—			—		—		(29,674	)		(29,674	)
Change in liability for reinsurance in unauthorized companies		—		—		—			—		—		500			500
Change in net deferred income tax asset		—		—		—			—		—		823			823
Change in asset valuation reserve		—		—		—			—		—		(9,468	)		(9,468	)
Change in surplus as a result of reinsurance		—		—		—			—		—		207,517			207,517
Increase in admitted deferred tax assets pursuant to SSAP No. 10R		—		—		(121,120	)		—		—		121,120			—
Dividends to stockholders		—		—		—			—		—		(450,000	)		(450,000	)
Long-term incentive compensation		—		—		—			—		482		—			482
Balance at December 31, 2012	$	7,364	$	2,773	$	—		$	160,000	$	621,273	$	19,910		$	811,320

Mon Life 2013 SEC 7

Monumental Life Insurance Company

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

(Dollars in Thousands)

	Class A Common Stock		Class B Common Stock		Surplus Notes		Paid-in Surplus		Unassigned Surplus			Total Capital and Surplus
Balance at December 31, 2012	$	7,364	$	2,773	$	160,000	$	621,273	$	19,910		$	811,320
Net income		—		—		—		—		166,874			166,874
Capital contribution		—		—		—		135,000		—			135,000
Change in net unrealized capital gains/losses, net of taxes		—		—		—		—		95,530			95,530
Change in nonadmitted assets		—		—		—		—		3,579			3,579
Change in liability for reinsurance in unauthorized companies		—		—		—		—		187			187
Change in net deferred income tax asset		—		—		—		—		1,497			1,497
Change in asset valuation reserve		—		—		—		—		(51,980	)		(51,980	)
Change in surplus as a result of reinsurance		—		—		—		—		(63,742	)		(63,742	)
Correction of error related to deferred tax asset		—		—		—		—		7,033			7,033
Dividends to stockholders		—		—		—		—		(135,000	)		(135,000	)
Long-term incentive compensation		—		—		—		926		—			926
Balance at December 31, 2013	$	7,364	$	2,773	$	160,000	$	757,199	$	43,888		$	971,224

See accompanying notes.

Mon Life 2013 SEC 8

Monumental Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
Operating activities
Premiums collected, net of reinsurance	$	1,732,764		$	1,537,729		$	1,416,345
Net investment income		761,406			853,775			877,714
Reserve adjustments on reinsurance ceded		(226,238	)		(762,679	)		(151,484	)
Consideration on reinsurance transaction		692			34			(3,039	)
Commission and expense allowances on reinsurance ceded		145,783			586,092			715,812
Miscellaneous (loss) income		56,927			45,527			34,367
Benefit and loss related payments		(1,911,975	)		(1,594,215	)		(1,594,795	)
Net transfers from separate accounts		283,766			189,238			137,889
Commissions, expenses paid and aggregate write-ins for deductions		(800,587	)		(815,311	)		(782,498	)
Dividends paid to policyholders		(1,295	)		(1,321	)		(1,383	)
Federal income taxes paid (received)		43,860			(252,995	)		(20,870	)
Net cash provided by (used in) operating activities		85,103			(214,126	)		628,058
Investing activities
Proceeds from investments sold, matured or repaid:
Bonds		2,194,421			5,234,590			2,889,949
Stocks		40,584			25,890			11,025
Mortgage loans		478,341			300,958			291,626
Real estate		2,950			3,570			2,828
Other invested assets		133,812			113,630			100,202
Securities lending reinvested collateral assets		—			—			98,876
Miscellaneous proceeds		15,434			4,313			24,228
Total investment proceeds		2,865,542			5,682,951			3,418,734
Costs of investments acquired:
Bonds		(2,136,260	)		(3,414,940	)		(2,112,595	)
Stocks		(4,960	)		(19,185	)		(54,748	)
Mortgage loans		(305,830	)		(37,799	)		(111,952	)
Real estate		(7,799	)		(5,071	)		(5,436	)
Other invested assets		(66,590	)		(57,944	)		(126,849	)
Securities lending reinvested collateral assets		28,210			(21,939	)		—
Derivatives		(66,568	)		(47,592	)		(115,760	)
Miscellaneous applications		(2,367	)		(1,828	)		—
Total cost of investments acquired		(2,562,164	)		(3,606,298	)		(2,527,340	)
Net decrease in policy loans		7,116			9,378			2,742
Net cost of investments acquired		(2,555,048	)		(3,596,920	)		(2,524,598	)
Net cash provided by investing activities		310,494			2,086,031			894,136

Mon Life 2013 SEC 9

Monumental Life Insurance Company

Statements of Cash Flow – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
Financing and miscellaneous activities
Net withdrawals on deposit-type contracts and other insurance liabilities	$	(1,632,098	)	$	(612,670	)	$	(801,239	)
Net change in reinsurance on deposit-type contracts and other insurance liabilities		1,292,709			456,205			588,705
Borrowed funds		47,065			6,200			—
Dividends to stockholders		(135,000	)		(450,000	)		(300,000	)
Funds held under reinsurance treaties with unauthorized reinsurers		(829,691	)		(785,005	)		(1,266,655	)
Receivable from parent, subsidiaries and affiliates		(28,986	)		102,834			(6,744	)
Payable to parent, subsidiaries and affiliates		(34,378	)		(86,405	)		16,142
Payable for securities lending		(28,120	)		21,939			(98,876	)
Other cash provided (applied)		156,302			144,115			(375,531	)
Net cash used in financing and miscellaneous activities		(1,192,197	)		(1,202,787	)		(2,244,198	)
Net (decrease) increase in cash, cash equivalents and short-term investments		(796,601	)		669,118			(722,004	)
Cash, cash equivalents and short-term investments:
Beginning of year		1,355,524			686,406			1,408,410
End of year	$	558,923		$	1,355,524		$	686,406

See accompanying notes.

Mon Life 2013 SEC 10

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies

Organization

Monumental Life Insurance Company (the Company) is a stock life insurance company owned by Commonwealth General Corporation (CGC) (87.7%) and Aegon USA, LLC (Aegon) (12.3%). Both CGC and Aegon are indirect, wholly owned subsidiaries of Aegon N.V., a holding company organized under the laws of The Netherlands.

Effective December 19, 2011, Capital General Development Corporation (CGDC), which previously owned 99.8% of the Company, merged into Capital General Development Corporation, LLC (CGDC, LLC), a wholly-owned subsidiary of the Company. The merger resulted in the 9,791.64 shares of Class A common stock and 3,686.99 shares of Class B common stock of the Company owned by CGDC transferring to CGDC, LLC. These shares of Class A and Class B common stock were deemed cancelled as a result of the merger. CGDC, LLC was formed on December 16, 2011 for purposes of this merger and dissolved effective December 31, 2011.

Prior to the merger, CGDC was owned by CGC (87.7%) and Aegon (12.3%). As consideration of the merger of CGDC into CGDC, LLC, the Company issued 8,585.39 shares of Class A common stock and 3,232.78 shares of Class B common stock to CGC, and 1,206.25 shares of Class A common stock and 454.21 shares of Class B common stock to Aegon. There was no impact to the Company’s total number of Class A and Class B common stock shares issued and outstanding, only a change in ownership of those shares. As such, this transaction had no impact on the Company’s balance sheets.

Nature of Business

The Company sells a full line of insurance products, including individual, credit and group coverages under life, annuity and accident and health policies as well as investment products, including guaranteed interest contracts and funding agreements. The Company is licensed in 49 states, the District of Columbia, Guam and Puerto Rico. Sales of the Company’s products are primarily through agents, brokers, financial institutions and direct response methods.

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.

Mon Life 2013 SEC 11

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa, which practices differ from accounting principles generally accepted in the United States (GAAP). The more significant variances from GAAP are:

Investments: Investments in bonds, including affiliated 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 also considered to have occurred if the fair value of the mortgage-backed/asset-backed security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An other-than-temporary impairment is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security.

If it is determined an other-than-temporary impairment has occurred as a result of the cash flow analysis, the security is written down to the discounted estimated future cash flows. If an other-than-temporary impairment has occurred due to intent to sell or lack of intent and ability to hold, the security is written down to fair value.

For GAAP, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used. If it is determined that a decline in fair value is other-than-temporary and the entity intends to sell the

Mon Life 2013 SEC 12

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 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.

Mon Life 2013 SEC 13

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

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 are 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, incremental costs directly related to the successful acquisition of 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.

Separate Accounts with Guarantees: Some of the Company’s separate accounts provide policyholders with a guaranteed return. 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. These separate accounts are included in the general account for GAAP due to the nature of the guaranteed return.

Nonadmitted Assets: Certain assets designated as “nonadmitted”, primarily net deferred tax assets and other assets not specifically identified as an admitted asset within the NAIC

Mon Life 2013 SEC 14

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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, 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.

Losses associated with an indemnity reinsurance transaction are reported within income when incurred rather than being deferred and amortized over the remaining life of the underlying reinsured contracts as would be required under GAAP. 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. 101, Income Taxes, A Replacement of

Mon Life 2013 SEC 15

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

SSAP No. 10R and SSAP No. 10. Under SSAP No. 101, admitted adjusted 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 amount of adjusted gross deferred income tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period’s adjusted statutory capital and surplus, plus 3) the amount of remaining adjusted 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) and reversal patterns of the deferred tax assets and liabilities. The remaining adjusted 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 all future years, and a valuation allowance is established for deferred income tax assets not realizable.

Goodwill: Goodwill is admitted subject to an aggregate limitation of ten percent of the capital and surplus in the most recently filed annual statement excluding electronic data processing equipment, operating system software, net deferred income tax assets and net positive goodwill. Excess goodwill is nonadmitted. Goodwill is amortized over ten years. Under GAAP, goodwill is measured as the excess of the consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date as compared to the fair values of the identifiable net assets acquired. Goodwill is not amortized but is assessed for impairment on an annual basis, or more frequently if circumstances indicate that a possible impairment has occurred.

Policyholder Dividends: Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.

Surplus Notes: Surplus notes are reported as surplus rather than liabilities as would be required under GAAP.

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.

Mon Life 2013 SEC 16

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

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-

Mon Life 2013 SEC 17

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 determined to be other-than-temporarily impaired.

Investments in 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.

Common stocks of unaffiliated companies are reported at fair value and the related net unrealized capital gains or 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.

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

Mon Life 2013 SEC 18

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

Land is reported at cost. Real estate occupied by the Company is reported at depreciated cost net of encumbrances. Real estate held for the production of income is reported at depreciated cost net of related obligations. Real estate that the Company classifies as held for sale is measured at lower of carrying amount or fair value less cost to sell. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. The Company recognizes an impairment loss if the Company determines that the carrying amount of the real estate is not recoverable and exceeds its fair value. The Company deems that the carrying amount of the asset is not recoverable if the carrying amount exceeds the sum of undiscounted cash flows expected to result from the use and disposition. The impairment loss is measured as the amount by which the asset’s carrying value exceeds its fair value.

Policy loans are reported at unpaid principal balances.

The Company has minority ownership interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying audited GAAP equity of the investee. For a decline in the fair value of an investment in a joint venture or limited partnership which is determined to be 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 an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.

The Company’s investment in reverse mortgages is recorded net of an appropriate actuarial reserve. The actuarial reserve is calculated using the projected cash flows from the reverse mortgage product. Assumptions used in the actuarial model include an estimate of current home values, projected cash flows from the realization of the appreciated value of the property from its eventual sale (subject to certain limitations in the contract), mortality and termination rates based on group annuity mortality tables adjusted for the Company’s experience and a constant interest rate environment. The carrying amount of the investment in reverse mortgages of $31,763 and $35,444 at December 31, 2013 and 2012, respectively, is net of the reserve of $12,375 and $26,128, respectively. Interest income of $1,969 and $2,758 was recognized for the years ended December 31, 2013 and 2012 respectively. The Company’s commitment includes making advances to the borrower until termination of the contract. The contract is terminated at the time

Mon Life 2013 SEC 19

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

the borrower moves, sells the property, dies, repays the loan balance or violates the provisions of the loan contract.

Investments in Low Income Housing Tax Credits (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.

Other “admitted assets” are valued principally at cost, as required or permitted by the Iowa Insurance Laws.

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, common and preferred 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 on real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain. In addition, accrued interest is excluded from investment income when payment exceeds 90 days past due. At December 31, 2013 and 2012, the Company excluded investment income due and accrued for bonds in default of $210 and $155, respectively, 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 is invested as needed or used for general corporate purposes of the Company.

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).

Mon Life 2013 SEC 20

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

Instruments: Interest rate swaps are the primary derivative financial instruments used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. 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 the swap is 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.

Mon Life 2013 SEC 21

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Interest rate basis swaps are used in the overall asset/liability management process to modify the interest rate characteristics of the underlying liability to mitigate the basis risk of assets and liabilities resetting on different indices. These interest rate swaps generally provide for the exchange of the difference between a floating rate on one index to a floating rate of another index, based upon an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged at each due date. Swaps meeting hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If the swap is 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.

Cross currency swaps are utilized to mitigate risks when the Company holds foreign denominated assets or liabilities therefore converting the asset or liability to a U.S. dollar (USD) denominated security. These cross currency swap agreements involve the exchange of two principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract and the foreign currency translation adjustment is recorded as unrealized gain/loss in unassigned surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus. If a swap is 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 hedged instrument receives that treatment.

Futures contracts are used to hedge the liability risk associated when the Company issues products providing the customer a return based on various global equity 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.

Caps are used in the asset/liability management process to mitigate the interest rate risk created due to a rapidly rising interest rate environment. The caps are similar to options where the underlying interest rate index provides for the market value movements. The caps do not accrue interest until the interest rate environment exceeds the caps strike rate. Cash is exchanged at the onset, and a single receipt or payment occurs at the maturity or termination of the contract. Caps 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

Mon Life 2013 SEC 22

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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. Caps that do not meet hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

The Company issues products providing the customer a return based on the various global equity market indices. The Company uses options to hedge the liability option risk associated with these products. Options are marked to fair value in the balance sheet and fair value adjustments are recorded as unassigned surplus in the financial statements.

The Company may sell products with expected benefit payments extending beyond investment assets currently available in the market. Because assets will have to be purchased in the future to fund future liability cash flows, the Company is exposed to the risk of future investments made at lower yields than what is assumed at the time of pricing. Forward-starting interest rate swaps are utilized to lock-in the current forward rate. The accrual of income begins at the forward date, rather than at the inception date. These forward-starting swaps meet hedge accounting rules and are carried at cost in the financial statements. Gains and losses realized upon termination of the forward-starting swap are deferred and used to adjust the basis of the asset purchased in the hedged forecasted period. The basis adjustment is then amortized into income as a yield adjustment to the asset over its life.

The Company invests in domestic corporate debt securities denominated in U.S. dollars. If the issuers of these debt obligations fail to make timely payments, the value of the investment declines materially. The Company manages credit default risk through the purchase of credit default swaps. As the buyer of credit default protection, the Company will pay a premium to an approved counterparty in exchange for a contingent payment should a defined credit event occur with respect to the underlying reference entity or asset. Typically, the periodic premium or fee is expressed in basis points per notional. Generally, the premium payment for default protection is made periodically, although it may be paid as an up-front fee for short dated transactions. Should a credit event occur, the Company may be required to deliver the reference asset to the counterparty for par. Alternatively, settlement may be in cash. These credit default swaps are carried on the balance sheet at amortized cost. Premium payments made by the Company are recognized as investment expense. If the Company is unable to prove hedge effectiveness, the credit default swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

A replication transaction is a derivative transaction entered into in conjunction with a cash instrument to reproduce the investment characteristics of an otherwise permissible investment. The Company replicates investment grade corporate bonds or sovereign debt by combining a highly rated security as a cash component with a credit default swap which, in effect, converts

Mon Life 2013 SEC 23

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

the high quality asset into a lower rated investment grade asset or sovereign debt. The benefits of using the swap market to replicate credit include possible enhanced relative values as well as ease of executing larger transactions in a shortened time frame. Generally, a premium is received by the Company on a periodic basis and recognized in investment income. In the event the representative issuer defaults on its debt obligation referenced in the contract, a payment equal to the notional of the contract will be made by the Company and recognized as a capital loss.

The Company replicates hybrid fixed to floating treasuries by combining a U.S. Treasury cash component with a forward starting swap which, in effect converts a fixed U.S. Treasury into hybrid fixed to floating treasury. The purpose of these replications is to aid duration matching between the treasuries and the supported liabilities. Generally these swaps are carried at amortized cost with periodic interest payments beginning at a future date. Any early terminations are recognized as capital gains or losses. The Company complies with the specific rules established in AVR for replication transactions.

The Company holds some warrants linked to an Argentina Government GDP as part of an authorized workout from the Argentina Brady Bonds. The Company was put into these warrants and did not voluntarily transact into these types of instruments. The Company does not have any downside risk to the warrants, and only receives a payment if the GDP is above a specific threshold. These swaps are marked to fair value in the balance sheet and the fair value adjustment is recorded in capital and surplus.

Separate Accounts

Assets held in trust for purchases of variable annuity contracts and the Company’s corresponding obligation to the contract owners are shown separately in the balance sheets. The assets consist of shares in funds, considered common stock investments, which are valued daily and carried at fair value. 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 variable contract premiums of $569,933, $466,320 and $402,855 in 2013, 2012 and 2011, respectively. In addition, the Company received $40,883, $36,701 and $34,847, in 2013, 2012 and 2011, respectively, related to fees associated with investment management, administration and contractual guarantees for separate accounts.

Separate account assets and liabilities reported in the accompanying financial statements consist of three types: guaranteed indexed, non-indexed guaranteed and nonguaranteed. Guaranteed indexed separate accounts represent funds invested by the Company for the benefit of contract holders who are guaranteed returns based on published indices. Non-indexed guaranteed separate

Mon Life 2013 SEC 24

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

accounts represent funds invested by the Company for the benefit of contract holders who are guaranteed certain returns as specified in the contracts. Separate account asset performance different than guaranteed requirements is either transferred to or received from the general account and reported in the statements of operations. Guaranteed indexed and non-indexed guaranteed separate account assets and liabilities are carried at fair value.

The nonguaranteed separate account assets and liabilities represent group annuity funds segregated by the Company for the benefit of contract owners, who bear the investment risks. The assets and liabilities of the nonguaranteed separate accounts are carried at fair value.

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 or guaranteed cash value, or the amount required by law. For direct business issued after October 1964, the Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the month of death. For policies assumed during 1992 from former affiliates, Monumental General Insurance Company and Monumental Life Insurance Group, Inc., and for all business from company mergers occurring in 1998, the Company waives deduction of deferred fractional premium upon death of the insured and returns any portion of the final premium paid beyond the month of death. For fixed premium life insurance business resulting from company mergers occurring in 2004 and 2007, the Company waives deduction of deferred fractional premiums upon death of the insured and refunds portions of premiums unearned after the date of death. Where appropriate, the Company holds a nondeduction and/or refund reserve. The reserve for these benefits is computed using aggregate methods. The reserves are equal to the greater of the cash surrender value and the legally computed reserve.

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 1912, 1941 and 1961 Standard Industrial Mortality Tables, the 1960 Commissioner’s Standard Group Mortality Table, and the American Men, Actuaries and American Experience Mortality Tables. The reserves are calculated using interest rates ranging from 2.0 to 6.5 percent and are computed principally on the Net Level Premium Valuation and the Commissioners’ Reserve Valuation Methods. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s Reserve Valuation Method.

Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, mean reserves are

Mon Life 2013 SEC 25

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

determined by computing the regular mean reserve for the plan at the true age and holding, in addition, one-half (1/2) of the extra premium charge for the year. For certain flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioner’s Reserve Valuation Method for universal life policies and recognizing any substandard ratings.

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 and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 2.5 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.

Annuity reserves also include guaranteed investment contracts (GICs) and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications and Definitions of Insurance or Managed Care Contracts In Force. These liabilities have annuitization options at guaranteed rates and consist of floating interest rate and fixed interest rate contracts. The contract reserves are carried at the greater of the account balance or the value as determined for an annuity with cash settlement option, on a change in fund basis, according to the Commissioner’s Annuity Reserve Valuation Method.

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.

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 primarily by formula.

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 balance sheet 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.

Mon Life 2013 SEC 26

Monumental Life Insurance Company

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 GICs, funding agreements and other annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance, and are not reported as premiums, benefits or changes in reserves in the statement of operations.

The Company issues certain funding agreements with well-defined class-based annuity purchase rates defining either specific or maximum purchase rate guarantees. However, these funding agreements are not issued to or for the benefit of an identifiable individual or group of individuals. These contracts are classified as deposit-type contracts in accordance with SSAP No. 50.

Municipal Repurchase Agreements

Municipal repurchase agreements are investment contracts issued to municipalities that pay either a fixed or floating rate of interest on the guaranteed deposit balance. The floating interest rate is based on a market index. The related liabilities are equal to the policyholder deposit and accumulated interest on the contract.

These municipal repurchase agreements require a minimum of 95% of the fair value of the securities transferred to be maintained as collateral. The Company did not participate in repurchase agreements during 2013 or 2012.

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. Consideration received and benefits paid 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 revenue.

Claims and Claim Adjustment Expense

Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business.

Mon Life 2013 SEC 27

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Activity in the liability for unpaid claims and related processing costs net of reinsurance is summarized as follows:

	Unpaid Claims Liability Beginning of Year		Claims Incurred			Claims Paid		Unpaid Claims Liability End of Year
Year ended December 31, 2013
2013	$	—	$	287,548		$	175,537	$	112,011
2012 and prior		195,349		(7,707	)		106,262		81,380
		195,349	$	279,841		$	281,799		193,391
Active life reserve		487,112							633,636
Total accident and health reserves	$	682,461						$	827,027
	Unpaid Claims Liability Beginning of Year		Claims Incurred			Claims Paid		Unpaid Claims Liability End of Year
Year ended December 31, 2012
2012	$	—	$	297,471		$	177,262	$	120,209
2011 and prior		192,420		(8,435	)		108,845		75,140
		192,420	$	289,036		$	286,107		195,349
Active life reserve		453,015							487,112
Total accident and health reserves	$	645,435						$	682,461

The Company’s unpaid claims reserve was decreased by $7,707 and $8,435 for the years ended December 31, 2013 and 2012, respectively, for health claims that occurred prior to those balance sheet dates. The change in 2013 and 2012 resulted primarily from variances in the estimated frequency of claims and claim severity.

The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2013 and 2012 was $2,367 and $2,096, respectively. The Company incurred $3,895 and paid $3,624 of claim adjustment expenses during 2013, of which $1,972 of the paid amount was attributable to insured or covered events of prior years. The Company incurred $3,036 and paid $3,066 of claim adjustment expenses during 2012, of which $1,475 of the paid amount was attributable to insured or covered events of prior years. The Company did not

Mon Life 2013 SEC 28

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

increase or decrease the claim adjustment expense provision for insured events of prior years during 2013 or 2012.

Reinsurance

Reinsurance 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.

Stock Option Plan, Long-Term Incentive Compensation and Stock Appreciation Rights Plans

Certain management employees of the Company participate in a stock-based long-term incentive compensation plan issued by the Company’s indirect parent. In accordance with SSAP No. 13, Stock Options and Stock Purchase Plans, the expense or benefit related to this plan for the Company’s management employees has been charged to the Company, with an offsetting amount credit to paid-in surplus. The Company recorded an accrued expense in the amount of $926, $482 and $175 for the years ended December 31, 2013, 2012 and 2011, respectively.

Recent Accounting Pronouncements

Effective December 31, 2013, the Company adopted revisions to SSAP No. 35R, Guaranty Fund and Other Assessments – Revised which incorporates subsequent event (Type II) disclosures for entities subject to Section 9010 of the Patient Protection and Affordable Care Act related to assessments payable. The adoption of this revision did not impact the financial position or results of operations of the Company as revisions relate to disclosures only. See Note 16 for further discussion.

Effective January 1, 2013, the Company adopted SSAP No. 92, Accounting for Postretirement Benefits Other Than Pensions, A Replacement of SSAP No. 14 and SSAP No. 102, Accounting for Pensions, A Replacement of SSAP No. 89. This guidance impacts accounting for defined benefit pension plans or other postretirement plans, along with related disclosures. SSAP No. 102 requires recognition of the funded status of the plan based on the projected benefit obligation instead of the accumulated benefit obligation as under SSAP No. 89. In addition, SSAP No. 92 and SSAP No. 102 require consideration of non-vested participants. The adoption of these standards did not impact the Company’s results of operations, financial position or disclosures as

Mon Life 2013 SEC 29

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

the Company does not sponsor the pension plan and is not directly liable under the plan. See Note 11 for further discussion of the Company’s pension plan and other postretirement plans as sponsored by Aegon.

Effective January 1, 2013, the Company adopted SSAP No. 103, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities which adopts with modifications the guidance in ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets and supersedes SSAP No. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. The adoption of this standard did not impact the financial position or results of operation of the Company.

Effective January 1, 2013, the Company adopted non-substantive revisions to SSAP No. 36, Troubled Debt Restructuring. These revisions adopt guidance from ASU 2011-02, Receivables – A Creditors’ Determination of Whether a Restructuring is a Troubled Debt Restructuring, which clarifies what constitutes a troubled debt restructuring and adopts with modification troubled debt restructuring disclosures for creditors from ASU 2010-20: Receivables (Topic 310), Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses. The adoption of this revision did not impact the financial position or results of operations of the Company.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to require disclosure of embedded credit derivatives within a financial instrument that expose the holder to the possibility of making future payments, and adopted guidance from Accounting Standards Update (ASU) 2010-11, Derivatives and Hedging – Scope Exception Related to Embedded Credit Derivatives, to clarify that seller credit derivative disclosures do not apply to embedded derivative features related to the transfer of credit risk that is only in the form of subordination of one financial instrument to another. The adoption of these revisions had no impact to the Company’s results of operations or financial position.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to move one aspect of the criteria for a hedged forecasted transaction and incorporate it as criteria for a fair value hedge. The adoption of this revision had no impact to the Company’s results of operations or financial position.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 27, Disclosure of Information about Financial Instruments with Off-Balance-Sheet Risk, Financial Instruments with Concentrations of Credit Risk and Disclosures about Fair Value of Financial Instruments, which clarifies that embedded derivatives, which are not separately recognized as derivatives under statutory accounting, are included in the disclosures of financial instruments

Mon Life 2013 SEC 30

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

with off-balance-sheet risk. The adoption of this revision had no impact to the Company’s results of operations or financial position.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 1, Disclosures of Accounting Policies, Risks and Uncertainties and Other Disclosures. These revisions require reference to the accounting policy and procedure footnote that describes permitted or prescribed practices when an individual note is impacted by such practices. The adoption of this requirement had no impact to the Company’s results of operation or financial position and did not require any additional disclosures. See Note 8 Policy and Contract Attributes for further details.

Effective January 1, 2012, the Company adopted revisions to SSAP No. 100, Fair Value Measurements (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. The adoption of these revisions had no impact to the Company’s results of operations or financial position, but did require additional disclosures. See Note 4 Fair Values of Financial Instruments for further details.

Effective January 1, 2012, the Company began computing current and deferred income taxes in accordance with SSAP No. 101. This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The adoption of this statement resulted in the transfer of $121,120 from Aggregate Write-Ins for Other than Special Surplus Funds to Unassigned Funds and updates to the Company’s income tax disclosures. See Note 7 Income Taxes for further details.

For the year ended December 31, 2011, the Company adopted SSAP No. 10R, Income Taxes – Revised, A Temporary Replacement of SSAP No. 10 (SSAP No. 10R). This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The SSAP temporarily superseded SSAP No. 10, Income Taxes. SSAP No. 10R allowed an entity to elect to admit additional deferred tax assets (DTAs) utilizing a three year loss carryback provision, plus the lesser of a look-forward of three years on gross DTAs expected to be realized or 15% of statutory capital and surplus if the entity’s risk-based capital is above the 250% risk-based capital level where an action level could occur as a result of a trend test utilizing the old SSAP No. 10 provisions to calculate the DTA. Prior to the adoption of SSAP No. 10R, the admitted DTA was calculated by taking into consideration a one year loss carryback and look-forward on gross DTAs that can be expected to be realized and a 10% capital and surplus limit on the admitted amount of the DTA. The Company elected to admit additional deferred tax assets pursuant to SSAP No. 10R and as a result, the cumulative effect of the

Mon Life 2013 SEC 31

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

adoption of this standard was the difference between the calculation of the admitted DTA per SSAP No.10R and the old SSAP No. 10 methodology at December 31, 2011. This change in accounting principle increased surplus by a net amount of $121,120, at December 31, 2011, which has been recorded within the statements of changes in capital and surplus.

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 greater of (a) the fair value of the guarantee at its inception, even if the likelihood of payment under the guarantee is remote or (b) the contingent liability amount required to be recognized if it is probable that a liability has been incurred at the financial statement date and the amount of loss can reasonably be determined. While this guidance does not exclude guarantees issued as intercompany transactions or between related parties from the initial liability recognition requirement, there are certain exceptions. 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. Additional disclosures are also required under this new guidance for all guarantees, whether or not they meet the criteria for initial liability recognition. The adoption of this new accounting principle had no material impact to the Company’s results of operations or financial position, but did require additional disclosures regarding these guarantees. See Note 14 on Commitments and Contingencies for further details.

Effective December 31, 2011, the Company adopted non-substantive revisions to SSAP No. 100, to incorporate the provisions of ASU 2010-06, Improving Disclosures about Fair Value Measurements. This revision required 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 4 for further details.

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

Mon Life 2013 SEC 32

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

liability for insurance-related assessments and required additional disclosures. The adoption of this accounting principle had no financial impact to the Company. See Note 14 for disclosures related to guaranty fund assessments. 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 January 1, 2014, the Company will adopt SSAP No. 105, Working Capital Finance Investments, which allows working capital finance investments to be admitted assets if certain criteria are met. The adoption of this standard had no impact to the financial position or results of operations of the Company.

Effective December 31, 2014, the Company will adopt revisions to SSAP No. 104R, Share-Based Payments, which provides guidance for share-based payments transactions with non-employees. The adoption of this revision is expected to be immaterial to the financial position and results of operations of the Company.

Reclassifications

Certain reclassifications have been made to the 2012 financial statements to conform to the 2013 presentation.

During 2013, the Company changed the presentation of derivative liabilities. As a result of this change, $72,512 was reclassified between the Other liabilities line and the Derivatives line in the 2012 Balance Sheet to conform to the 2013 presentation.

During 2013, the Company changed the presentation of deposit-type contract fund deposit and withdrawal activity within the Statement of Cash Flow. As a result of this change, $613,183 was reclassified from Other cash provided (applied) to Net withdrawals on deposit-type contracts and other insurance liabilities within the 2012 Statement of Cash Flow to conform to the 2013 presentation.

Mon Life 2013 SEC 33

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

On the 2012 Statements of Operations, $10,786 was reclassified from Premiums and other considerations, net of reinsurance: Annuity to Premiums and other considerations, net of reinsurance: Life as it was determined that this amount represented considerations for supplementary contracts with life contingencies and should be shown accordingly.

2. Prescribed and Permitted Statutory Accounting Practices

The State of Iowa recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company for determining its solvency under Iowa Insurance Law.

The NAIC SAP has been adopted as a component of prescribed or permitted practices by the State of Iowa. The State of Iowa adopted a prescribed accounting practice that differs from that found in the NAIC SAP related to reserve credits and secondary guarantee reinsurance treaties. As prescribed by Iowa Administrative Code 191-17.3(2), the commissioner found that the Company is entitled to take reserve credit for such a reinsurance contract in the amount equal to the portion of total reserves attributable to the secondary guarantee, whereas this type of reinsurance does not meet the specific requirements of SSAP No. 61, Life, Deposit-Type and Accident and Health Reinsurance and Appendix A-791 of the NAIC SAP.

A reconciliation of the Company’s net income and capital and surplus between NAIC SAP and practices prescribed by the State of Iowa is shown below:

	2013			2012			2011
Net income (loss) State of Iowa basis	$	166,874		$	143,456		$	481,708
State prescribed practice for secondary guarantee reinsurance		—			—			—
Net income (loss), NAIC SAP	$	166,874		$	143,456		$	481,708
Statutory surplus, State of Iowa basis	$	971,224		$	811,320		$	980,853
State prescribed practice for secondary guarantee reinsurance		(38,696	)		(36,211	)		(33,734	)
Statutory surplus, NAIC SAP	$	932,528		$	775,109		$	947,119

Mon Life 2013 SEC 34

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

3. Accounting Changes and Correction of Errors

During 2013, the Company determined the mark-to-market adjustment on certain swap unwinds within its synthetic asset mortgage loan program were incorrectly not made for purposes of determining taxable income at December 31, 2011. Upon reviewing the impact on the prior years, an adjustment of $7,033 was designated as a prior year correction of an error and presented as a change in unassigned surplus for the year ended December 31, 2013.

During the first quarter of 2011, it was determined that the investment income credit calculation that was utilized at year end 2010 to determine the amount of income to remit to an affiliated reinsurer was incorrect. This prior year error resulted in an understatement of the amount of funds withheld investment income that should have been remitted to the affiliated reinsurer for the year of 2010 in the amount of $5,636. This correction has been presented as a change in unassigned surplus.

4. Fair Values of Financial Instruments

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

Mon Life 2013 SEC 35

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.

Level 2 - Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

a) Quoted prices for similar assets or liabilities in active markets

b) Quoted prices for identical or similar assets or liabilities in non-active markets

c) Inputs other than quoted market prices that are observable

d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means

Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect the Company’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

Mon Life 2013 SEC 36

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values. Cash is not included in the below tables.

Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair value.

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.

Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing services, which are determined as discussed above in the description of level one and level two values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.

Mortgage Loans on Real Estate: The fair values for mortgage loans on real estate are estimated utilizing discounted cash flows analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.

Real estate: Real estate held for sale is typically valued utilizing independent external appraisers in conjunction with reviews by qualified internal appraisers. Valuations are primarily based on active market prices, adjusted for any difference in the nature, location or condition of the specific property. If such information is not available, other valuation methods are applied, considering the value that the property’s net earning power will support, the value indicated by recent sales of comparable properties and the current cost of reproducing or replacing the property.

Other Invested Assets: The fair values for other invested assets, which include investments in surplus notes issued by other insurance companies and fixed or variable rate investments with underlying characteristics of bonds, were determined primarily by using indexes, third party pricing services and internal models.

Mon Life 2013 SEC 37

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Derivative Financial Instruments: The estimated fair values of interest rate caps and options are based upon the latest quoted market price at the balance sheet date. The estimated fair values of swaps, including interest rate and currency swaps are based on pricing models or formulas using current assumptions. The estimated fair value of credit default swaps are based upon the pricing differential as of the balance sheet date for similar swap agreements. The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at amortized cost, then the derivative is also held at amortized cost.

Policy Loans: The fair value of policy loans is equal to the book value of the loan, which is stated at unpaid principal balance.

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.

Receivable From/Payable to Parent, Subsidiaries and Affiliates: The carrying amount of receivable from/payable to affiliates approximates their fair value.

Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices when available. When not available, they are valued in the same manner as general account assets as further described in this note. The fair value of separate account annuity liabilities is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.

Investment Contract Liabilities: Fair value for the Company’s liabilities under investment contracts, which include deferred annuities, GICs and funding agreements, are estimated using discounted cash flow calculations. The carrying value of the Company’s liabilities for deferred annuities with minimum guaranteed benefits is determined using a stochastic valuation as described in Note 8, which approximates the fair value. For investment contracts without minimum guarantees, fair value is estimated using discounted cash flows. For those liabilities that are short in duration, carrying amount approximates fair value.

Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate their fair values.

Mon Life 2013 SEC 38

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Surplus Notes: Fair values for surplus notes are estimated using a discounted cash flow analysis based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements.

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.

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, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.

Mon Life 2013 SEC 39

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables set forth a comparison of the estimated fair values and carrying amounts of the Company’s financial instruments, including those not measured at fair value in the balance sheets, as of December 31, 2013 and 2012, respectively:

	December 31 2013
	Aggregate Fair Value			Admitted Assets		(Level 1)		(Level 2)			(Level 3)		Not practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	471,024		$	471,024	$	—	$	471,024		$	—	$	—
Bonds		12,966,536			12,381,999		805,464		11,658,490			502,582		—
Preferred stocks, other than affiliates		8,955			9,541		—		8,819			136		—
Common stocks, other than affiliates		45,668			45,668		4,313		1			41,354		—
Mortgage loans on real estate		1,750,784			1,692,860		—		—			1,750,784		—
Other invested assets		139,312			132,528		—		132,614			6,698		—
Options		175,442			174,065		238		170,009			5,195		—
Interest rate swaps		4,890			4,215		—		4,890			—		—
Currency swaps		11,725			6,153		—		11,725			—		—
Credit default swaps		3,864			1,955		—		3,864			—		—
Policy loans		470,549			470,549		—		470,549			—		—
Securities lending reinvested collateral		322,142			322,209		—		322,142			—		—
Receivable from parent, subsidiaries and affiliates		30,774			30,774		—		57,108			—		—
Separate account assets		13,637,553			13,637,553		11,637,283		1,998,253			2,017		—
Liabilities
Investment contract liabilities		3,660,871			3,644,500		—		47,704			3,613,167		—
Interest rate swaps		(141,882	)		4,164		—		(141,882	)		—		—
Currency swaps		19,741			13,783		—		19,741			—		—
Credit default swaps		(4,576	)		7,285		—		(4,576	)		—		—
Separate account annuity liabilities		14,413,405			14,416,133		—		14,337,451			75,954		—
Surplus notes		168,622			160,000		—		—			168,622		—

Mon Life 2013 SEC 40

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31 2012
	Aggregate Fair Value		Admitted Assets		(Level 1)		(Level 2)		(Level 3)		Not practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	1,340,103	$	1,340,103	$	—	$	1,340,103	$	—	$	—
Bonds		13,724,625		12,448,872		657,112		12,371,746		695,767		—
Preferred stocks, other than affiliates		7,715		8,418		—		7,579		136		—
Common stocks, other than affiliates		79,006		79,006		5,773		—		73,233		—
Mortgage loans on real estate		1,964,977		1,864,851		—		—		1,964,977		—
Other invested assets		145,019		135,696		—		136,328		8,691		—
Floors, caps, options and swaptions		96,009		96,009		65		95,944		—		—
Interest rate swaps		474,682		27,728		—		474,682		—		—
Currency swaps		13,552		5,960		—		13,552		—		—
Credit default swaps		1,283		36		—		1,283		—		—
Policy loans		477,665		477,665		—		477,665		—		—
Securities lending reinvested collateral		350,162		350,329		—		350,162		—		—
Receivable from parent, subsidiaries and affiliates		1,788		1,788		—		1,788		—		—
Separate account assets		11,548,616		12,669,510		9,723,879		1,800,699		24,038		—
Liabilities
Investment contract liabilities		4,522,569		4,619,786		—		435,540		4,087,029		—
Interest rate swaps		146,339		26,853		—		146,339		—		—
Currency swaps		37,673		39,587		—		37,673		—		—
Credit default swaps		2,616		6,072		—		2,616		—		—
Payable to parent, subsidiaries and affiliates		34,378		34,378		—		34,378		—		—
Separate account annuity liabilities		12,605,439		12,605,099		—		12,435,092		170,347		—
Surplus notes		178,570		160,000		—		—		178,570		—

Mon Life 2013 SEC 41

Monumental Life Insurance Company

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, 2013 and 2012:

	2013
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Government	$	—	$	15,835	$	—	$	15,835
Industrial and miscellaneous		—		12,688		42,852		55,540
Total bonds		—		28,523		42,852		71,375
Preferred stock
Industrial and miscellaneous		—		—		136		136
Total preferred stock		—		—		136		136
Common stock
Industrial and miscellaneous		4,313		1		41,354		45,668
Total common stock		4,313		1		41,354		45,668
Short-term
Government		—		2		—		2
Industrial and miscellaneous		—		285,271		—		285,271
Mutual funds		—		185,481		—		185,481
Sweep accounts		—		270		—		270
Total short-term		—		471,024		—		471,024
Derivative assets		238		186,624		5,195		192,057
Separate account assets		11,637,283		1,998,253		13,923		13,649,459
Total assets	$	11,641,834	$	2,684,425	$	103,460	$	14,429,719
Liabilities:
Derivative liabilities	$	—	$	122,024	$	—	$	122,024
Separate account liabilities		538		1,129		—		1,667
Total liabilities	$	538	$	123,153	$	—	$	123,691

Mon Life 2013 SEC 42

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	2012
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	27,052	$	15,467	$	42,519
Total bonds		—		27,052		15,467		42,519
Preferred stock
Industrial and miscellaneous		—		—		136		136
Total preferred stock		—		—		136		136
Common stock
Industrial and miscellaneous		5,773		—		73,233		79,006
Total common stock		5,773		—		73,233		79,006
Short-term investments
Government		—		2		—		2
Industrial and miscellaneous		—		1,098,015		—		1,098,015
Mutual funds		—		166,890		—		166,890
Sweep accounts		—		75,196		—		75,196
Total short-term investments		—		1,340,103		—		1,340,103
Derivative assets		66		97,509		—		97,575
Separate account assets		9,723,879		1,800,700		24,038		11,548,617
Total assets	$	9,729,718	$	3,265,364	$	112,874	$	13,107,956
Liabilities:
Derivative liabilities	$	—	$	21,020	$	—	$	21,020
Separate account liabilities		—		1,722		—		1,722
Total liabilities	$	—	$	22,742	$	—	$	22,742

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 non-binding broker quotes, which cannot be corroborated by other market observable data or internal modeling which utilize inputs that are not market observable.

Preferred stock in Level 3 is being internally calculated.

Common stock in Level 3 is comprised primarily of shares in the Federal Home Loan Bank (FHLB) of Des Moines, which are valued at par as a proxy for fair value as they can only be redeemed by the bank. In addition, the Company owns common stock being carried at book value and some warrants that are valued using broker quotes.

Mon Life 2013 SEC 43

Monumental Life Insurance Company

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 would 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.

Derivatives classified as Level 3 represent OTC contracts valued using internal pricing models based on observable bond market prices and other market observable data or third party pricing and broker quotes.

Separate account assets are valued and classified in the same way as general account assets (described above). For example, separate account assets in Level 3 are those valued using non-binding broker quotes, which cannot be corroborated by other market observable data or internal modeling which utilize inputs that are not market observable.

Separate account liabilities consist of derivative liabilities held on the separate accounts. They are valued in the same way as the general account derivatives (described above).

During 2013 and 2012, there were no transfers between Level 1 and 2, respectively.

Mon Life 2013 SEC 44

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables summarize the changes in assets classified in Level 3 for 2013 and 2012:

	Balance at January 1, 2013		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income (a)			Total Gains and (Losses) Included in Surplus (b)
Bonds
RMBS	$	247	$	—	$	—	$	(128	)	$	95
Other		15,220		12,501		—		(569	)		17,686
Preferred stock		136		—		—		—			—
Common stock		73,233		84		—		(13	)		(1,005	)
Derivatives		—		—		—		2,753			—
Separate account assets		24,038		—		11,839		78			2,777
Total	$	112,874	$	12,585	$	11,839	$	2,121		$	19,553
	Purchases		Issuances		Sales		Settlements			Balance at December 31, 2013
Bonds
RMBS	$	—	$	—	$	—	$	—		$	214
Other		142		—		—		2,342			42,638
Preferred stock		—		—		—		—			136
Common stock		15		—		18,725		12,234			41,355
Derivatives		—		2,442		—		—			5,195
Separate account assets		—		—		—		1,131			13,923
Total	$	157	$	2,442	$	18,725	$	15,707		$	103,461

Mon Life 2013 SEC 45

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Balance at January 1, 2012		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income (a)			Total Gains and (Losses) Included in Surplus (b)
Bonds
RMBS	$	1,219	$	621	$	1,047	$	(198	)	$	(236	)
Other		13,224		3,149		2,993		(1,835	)		3,127
Preferred stock		136		—		—		—			—
Common stock		78,106		—		788		—			(2,486	)
Derivatives		—		4,257		—		—			1,400
Separate account assets		31,150		1,145		1,033		104			(6,422	)
Total	$	123,835	$	9,172	$	5,861	$	(1,929	)	$	(4,617	)
	Purchases		Issuances		Sales		Settlements			Balance at December 31, 2012
Bonds
RMBS	$	—	$	—	$	—	$	112		$	247
Other		30		2,610		—		2,092			15,220
Preferred stock		—		—		—		—			136
Common stock		—		2,116		—		3,715			73,233
Derivatives		6,369		—		—		12,026			—
Separate account assets		—		—		—		906			24,038
Total	$	6,399	$	4,726	$	—	$	18,851		$	112,874

(a) Recorded as a component of Net Realized Capital Gains/Losses in the Statements of Operations

(b) Recorded as a component of Change in Net Unrealized Capital Gains/Losses in the Statements of Changes in Capital and Surplus

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

Transfers in for bonds were attributed to securities being valued using third party vendor inputs at December 31, 2012 and 2011, subsequently changing to being internally modeled during 2013 and 2012. In addition, transfers in for bonds were attributed to securities being carried at amortized cost at December 31, 2012 and 2011, subsequently being carried at fair value during 2013 and 2012. Transfers in for bonds were also attributed to securities being valued using broker quotes which utilize observable inputs at December 31, 2011, subsequently changing to being valued using broker quotes which utilize unobservable inputs during 2012.

Mon Life 2013 SEC 46

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Transfers out for bonds were attributed to securities being carried at fair value at December 31, 2011, subsequently changing to being carried at amortized cost during 2012. Also, transfers out for bonds were the result of securities being valued using internal models at December 31, 2011, subsequently changing to being valued using third party vendor inputs during 2012.

Transfers in for common stock were attributed to securities being valued using third party vendor inputs at December 31, 2012, subsequently changing to being internally modeled during 2013.

Transfers out for common stock were attributed to securities being valued using a stale price at December 31, 2011, subsequently changing to being valued using third party vendor inputs during 2012.

Transfers in for derivatives were attributed to securities being carried at amortized cost at December 31, 2011, subsequently changing to being carried at fair value during 2012.

Transfers in for separate account bonds were partly attributed to securities being valued using third party vendor inputs at December 31, 2011, subsequently changing to being valued using a stale price, thus causing the transfer into Level 3 during 2012. Transfers in for separate account bonds were also attributed to securities being carried at amortized cost at December 31, 2011, subsequently changing to being carried at fair value during 2012.

Transfers out for separate account bonds were partly attributed to securities being valued using non-binding broker quotes or internal modeling which utilize unobservable inputs at December 21, 2012, subsequently changing to being valued using third party vendor inputs during 2013. Transfers out for separate account bonds were attributed to securities being valued using internal modeling at December 31, 2011, subsequently changing to being valued using third party vendor inputs during 2012.

Nonrecurring fair value measurements

As indicated in Note 1, real estate held for sale is measured at the lower of carrying amount or fair value less cost to sell. As of December 31, 2013 and 2012, the Company has several properties that are held for sale. Therefore, these properties are carried at fair value less cost to sell, which amounts to $6,900 and $4,792 as of December 31, 2013 and 2012, respectively.

The properties held for sale include one home office property with a fair value of $3,500 as of December 31, 2013 and 2012. Fair value of this property was determined based upon an external appraisal following the income approach. In addition, several residential properties are held for sale with a fair value of $3,400 and $1,292 as of December 31, 2013 and 2012, respectively. Fair value for these residential properties was also determined based upon external appraisals.

Mon Life 2013 SEC 47

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The fair value measurements are classified in Level 3 as the external appraisals utilize inputs and adjustments for the specific attributes of these properties that are not market observable.

5. Investments

The carrying amounts and estimated fair values of investments in bonds and preferred stocks are as follows:

	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses 12 Months or More		Gross Unrealized Losses less Than 12 Months		Estimated Fair Value
December 31, 2013
Unaffiliated bonds:
United States Government and agencies	$	603,161	$	11,257	$	3,328	$	16,419	$	594,671
State, municipal and other government		407,239		36,555		1,818		8,507		433,469
Hybrid securities		405,592		7,433		53,637		73		359,315
Industrial and miscellaneous		8,507,349		752,983		64,818		93,914		9,101,600
Mortgage and other asset-backed securities		2,401,458		115,242		60,791		24,903		2,431,006
		12,324,799		923,470		184,392		143,816		12,920,061
Unaffiliated preferred stocks		9,541		411		997		—		8,955
	$	12,334,340	$	923,881	$	185,389	$	143,816	$	12,929,016

Mon Life 2013 SEC 48

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses 12 Months or More		Gross Unrealized Losses less Than 12 Months		Estimated Fair Value
December 31, 2012
Unaffiliated bonds:
United States Government and agencies	$	374,681	$	69,908	$	71	$	32	$	444,486
State, municipal and other government		439,755		80,688		6,794		83		513,566
Hybrid securities		407,536		10,892		102,392		—		316,036
Industrial and miscellaneous		8,568,198		1,242,136		12,199		14,798		9,783,337
Mortgage and other asset-backed securities		2,601,502		139,599		118,613		1,714		2,620,774
		12,391,672		1,543,223		240,069		16,627		13,678,199
Unaffiliated preferred stocks		8,418		275		978		—		7,715
	$	12,400,090	$	1,543,498	$	241,047	$	16,627	$	13,685,914

At December 31, 2013 and 2012, respectively, for bonds and preferred stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 219 and 192 securities with a carrying amount of $1,506,148 and $1,524,672 and an unrealized loss of $185,389 and $241,047 with an average price of 87.7 and 84.2 (fair value/amortized cost). Of this portfolio, 76.4% and 66.6% were investment grade with associated unrealized losses of $124,981 and $107,124, respectively.

At December 31, 2013 and 2012, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 461 and 144 securities with a carrying amount of $3,079,455 and $874,294 and an unrealized loss of $143,816 and $16,627 with an average price of 95.3 and 98.1 (fair value/amortized cost). Of this portfolio, 97.3% and 96.8% were investment grade with associated unrealized losses of $140,339 and $15,035, respectively.

At December 31, 2013 and 2012, respectively, for common stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 3 and 3 securities with a cost of $14 and $14 and an unrealized loss of $1 and $1 with an average price of 96.9 and 96.9 (fair value/cost).

At December 31, 2013 and 2012, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 2 and 5 securities with a cost of $14,052 and $28,665 and an unrealized loss of $1 and $78 with an average price of 100.0 and 99.7 (fair value/cost).

Mon Life 2013 SEC 49

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2013 and 2012 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2013
Unaffiliated bonds:
United States Government and agencies	$	15,070	$	372,247	$	387,317
State, municipal and other government		9,976		110,669		120,645
Hybrid securities		197,309		22,080		219,389
Industrial and miscellaneous		590,431		1,823,597		2,414,028
Mortgage and other asset-backed securities		505,970		607,046		1,113,016
		1,318,756		2,935,639		4,254,395
Unaffiliated preferred stocks		2,003		—		2,003
Unaffiliated common stocks		14		14,051		14,065
	$	1,320,773	$	2,949,690	$	4,270,463
	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2012
Unaffiliated bonds:
United States Government and agencies	$	3,328	$	14,923	$	18,251
State, municipal and other government		35,022		3,614		38,636
Hybrid securities		202,462		—		202,462
Industrial and miscellaneous		189,141		781,804		970,945
Mortgage and other asset-backed securities		851,649		57,326		908,975
		1,281,602		857,667		2,139,269
Unaffiliated preferred stocks		2,022		—		2,022
Unaffiliated common stocks		14		28,588		28,602
	$	1,283,638	$	886,255	$	2,169,893

Mon Life 2013 SEC 50

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The carrying amount and estimated fair value of bonds at December 31, 2013, 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 prepayment penalties.

	Carrying Amount		Estimated Fair Value
Due in one year or less	$	216,702	$	219,687
Due after one year through five years		1,968,356		2,103,074
Due after five years through ten years		2,014,564		2,117,004
Due after ten years		5,723,719		6,049,290
		9,923,341		10,489,055
Mortgage and other asset-backed securities		2,401,458		2,431,006
	$	12,324,799	$	12,920,061

For impairment policies related to non-structured and structured securities, refer to Note 1 under Investments.

Banking

At December 31, 2013 the Company’s banking sector portfolio had investments in an unrealized loss position which had a fair value of $651,783 and a carrying value of $746,112, resulting in a gross unrealized loss of $94,329. The gross unrealized losses in the banking sub-sector primarily reflect low floating rate coupons on some securities, credit spread widening since the time of acquisition due to the Sovereign debt crisis in Europe, residual impact from the U.S. financial crisis, and global economic uncertainty. Following the implementation of new, more stringent global legislation on bank capital and liquidity requirements, credit spreads in the sector have outperformed the broader corporate market in 2013. Decisive steps by EU leaders and world central banks continue to stabilize the euro and improve funding conditions for most banks. Globally, there remain pockets of concentrated risk on bank balance sheets, and ratings for some countries and banks remain under pressure, but the banking sub-sector has largely been strengthened and oversight increased.

The value of the Company’s investments in deeply subordinated securities in the financial services sector may be significantly impacted if issuers of certain securities with optional deferral features exercise the option to defer coupon payments or are required to defer as a condition of receiving government aid. The deeply subordinated securities issued by non-US Banks are broadly referred to as capital securities which can be categorized as Tier 1 or Upper Tier 2. Capital securities categorized as “Tier 1” are typically perpetual with a non-cumulative coupon that can be deferred under certain conditions. Capital securities categorized as “Upper Tier 2” are

Mon Life 2013 SEC 51

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

generally perpetual with a cumulative coupon that is deferrable under certain conditions. The deeply subordinated securities issued by US Banks can be categorized as Trust Preferred or Hybrid. Capital securities categorized as trust preferred typically have an original maturity of 30 years with call features after 10 years with a cumulative coupon that is deferrable under certain conditions. Capital securities categorized as hybrid typically have an original maturity of more than 30 years, may be perpetual and are generally subordinate to traditional trust preferred securities.

The Company evaluated the near-term prospects of the issuers in relation to the severity and duration of the unrealized loss and does not consider those investments to be impaired as of December 31, 2013.

Subprime Mortgages

At December 31, 2013, the Company’s asset-backed securities (ABS) subprime mortgages portfolio had investments in an unrealized loss position which had a fair value of $382,043 and a carrying value of $418,865, resulting in a gross unrealized loss of $36,822. ABS – housing securities are secured by pools of residential mortgage loans primarily those which are categorized as subprime. The unrealized loss is primarily due to decreased liquidity and increased credit spreads in the market combined with significant increases in expected losses on loans within the underlying pools.

The Company does not currently invest in or originate whole loan residential mortgages. The Company categorizes ABS issued by a securitization trust as having subprime mortgage exposure when the average credit score of the underlying mortgage borrowers in a securitization trust is below 660 at issuance. The Company also categorizes ABS issued by a securitization trust with second lien mortgages as subprime mortgage exposure, even though a significant percentage of second lien mortgage borrowers may not necessarily have credit scores below 660 at issuance. The Company does not have any “direct” residential mortgages to subprime borrowers outside of the ABS structures.

All ABS subprime mortgage securities are monitored and reviewed on a monthly basis. Detailed cash flow models using the current collateral pool and capital structure on the portfolio are updated and are reviewed quarterly. Model output is generated under base and stress-case scenarios. The Company’s internal ABS-housing 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. Loan-to-value, loan size and borrower credit history are some of the key characteristics used to determine the level of assumption that is utilized. Defaults

Mon Life 2013 SEC 52

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

were estimated by identifying the loans that are in various delinquency buckets and defaulting a certain percentage of them over the near-term and long-term. Assumed defaults on delinquent loans are dependent on the specific security’s collateral attributes and historical performance.

Loss severity assumptions were determined by observing historical rates from broader market data and by adjusting those rates for vintage specific pool performance, collateral type, mortgage insurance and estimated loan modifications. Prepayments were estimated by examining historical averages of prepayment activity on the underlying collateral. Once the entire pool is modeled, the results are closely analyzed by the Company’s internal asset specialist to determine whether or not the 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 subprime mortgage portfolio 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, 2013.

There were no loan-backed securities with a recognized other-than-temporary impairment (OTTI) due to intent to sell or lack of intent and ability to hold during the years ended December 31, 2103, 2012 or 2011.

Mon Life 2013 SEC 53

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield.

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2013
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	64,235	$	4,238	$	59,997	$	29,895
2nd quarter present value of cash flows expected to be less than the amortized cost basis		63,316		23,474		39,842		23,109
3rd quarter present value of cash flows expected to be less than the amortized cost basis		51,903		6,627		45,276		23,345
4th quarter present value of cash flows expected to be less than the amortized cost basis		42,936		6,503		36,433		22,696
Aggregate total	$	222,390	$	40,842	$	181,548	$	99,045
	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2012
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	39,343	$	1,922	$	37,421	$	25,549
2nd quarter present value of cash flows expected to be less than the amortized cost basis		49,355		3,300		46,055		21,984
3rd quarter present value of cash flows expected to be less than the amortized cost basis		36,667		2,145		34,522		20,556
4th quarter present value of cash flows expected to be less than the amortized cost basis		36,404		885		35,519		17,847
Aggregate total	$	161,769	$	8,252	$	153,517	$	85,936

Mon Life 2013 SEC 54

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2011
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	70,530	$	5,417	$	65,113	$	32,730
2nd quarter present value of cash flows expected to be less than the amortized cost basis		78,321		4,614		73,707		32,487
3rd quarter present value of cash flows expected to be less than the amortized cost basis		58,385		3,162		55,223		35,076
4th quarter present value of cash flows expected to be less than the amortized cost basis		54,581		7,175		47,406		39,648
Aggregate total	$	261,817	$	20,368	$	241,449	$	139,941

Mon Life 2013 SEC 55

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following loan-backed and structured securities were held at December 31, 2013, for which an OTTI was recognized during the current reporting period:

CUSIP	Amortized Cost before Current Period OTTI		Present Value of Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time of OTTI		Quarter in which Impairment Occurred
00075XAG2	$	9,270	$	8,751	$	519	$	8,751	$	341		1Q 2013
00442LAD1		2,454		2,325		129		2,325		2,088		1Q 2013
02148YAJ3		84		82		2		82		45		1Q 2013
02149QAD2		3,277		3,234		43		3,234		2,721		1Q 2013
045427AE1		753		311		442		311		169		1Q 2013
05953YAG6		215		209		6		209		159		1Q 2013
14984WAA8		11,205		10,969		236		10,969		10,570		1Q 2013
35729PPC8		4,000		3,869		131		3,869		703		1Q 2013
39539KAF0		213		205		8		205		199		1Q 2013
46628SAJ2		2,367		2,247		120		2,247		2,287		1Q 2013
55308LAB2		5,692		5,230		462		5,230		3,740		1Q 2013
65536PAA8		15		14		1		14		10		1Q 2013
75971EAF3		4,666		4,576		90		4,576		3,462		1Q 2013
761118VY1		3,127		3,065		62		3,065		2,444		1Q 2013
81379EAD4		47		—		47		—		1		1Q 2013
83612TAF9		7,863		7,176		687		7,176		358		1Q 2013
86358EZU3		8,849		7,653		1,196		7,653		525		1Q 2013
3622NAAC4		82		81		1		81		72		1Q 2013
00075XAG2		8,737		4,832		3,905		4,832		298		2Q 2013
05953YAG6		202		199		3		199		149		2Q 2013
126670ZN1		7,108		3,498		3,610		3,498		6,137		2Q 2013
126694A32		1,710		1,698		12		1,698		1,432		2Q 2013
14984WAA8		10,701		10,522		179		10,522		10,201		2Q 2013
24763LDE7		190		189		1		189		147		2Q 2013
35729PPC8		3,857		3,793		64		3,793		403		2Q 2013
68400DAG9		5,917		547		5,370		547		8		2Q 2013
68403HAF9		2,226		4		2,222		4		2		2Q 2013
83611MMM7		7,430		7,128		302		7,128		408		2Q 2013
83612TAC6		7,498		6,902		596		6,902		3,863		2Q 2013
83612TAF9		7,159		18		7,141		18		18		2Q 2013

Mon Life 2013 SEC 56

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

CUSIP	Amortized Cost before Current Period OTTI		Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value		Quarter in which Impairment Occurred
86358EZU3		554		486		68		486		28		2Q 2013
61753NAC4		28		27		1		27		15		2Q 2013
00075XAG2		4,819		2,950		1,869		2,950		90		3Q 2013
00442LAD1		2,163		2,055		108		2,055		2,627		3Q 2013
02146QAB9		64		63		1		63		108		3Q 2013
02149QAD2		3,087		3,083		4		3,083		2,600		3Q 2013
045427AE1		291		283		8		283		383		3Q 2013
059515AC0		555		528		27		528		402		3Q 2013
05953YAG6		193		183		10		183		145		3Q 2013
35729PPC8		3,783		3,598		185		3,598		355		3Q 2013
36245RAA7		719		714		5		714		540		3Q 2013
39539KAF0		151		151		—		151		127		3Q 2013
61754HAB8		352		341		11		341		245		3Q 2013
68400DAG9		543		4		539		4		2		3Q 2013
75970QAJ9		3,245		3,162		83		3,162		2,691		3Q 2013
75971EAF3		4,459		4,398		61		4,398		3,532		3Q 2013
761118VY1		3,497		3,273		224		3,273		2,843		3Q 2013
83611MMM7		7,118		6,863		255		6,863		356		3Q 2013
83612TAC6		6,899		6,751		148		6,751		3,855		3Q 2013
86358EZU3		7,508		4,477		3,031		4,477		329		3Q 2013
52524YAF0		2,430		2,373		57		2,373		2,102		3Q 2013
61753NAC4		26		26		—		26		14		3Q 2013
00075XAG2		2,937		1,013		1,924		1,013		57		4Q 2013
00442LAD1		1,980		1,931		49		1,931		2,724		4Q 2013
02149QAD2		2,983		2,902		81		2,902		2,589		4Q 2013
045427AE1		270		218		52		218		169		4Q 2013
24763LDE7		189		164		25		164		154		4Q 2013
35729PPC8		3,589		3,174		415		3,174		343		4Q 2013
75970QAJ9		3,127		2,974		153		2,974		2,684		4Q 2013
75971EAF3		4,325		4,127		198		4,127		3,599		4Q 2013
761118RM2		1,818		1,490		328		1,490		1,620		4Q 2013
83611MMM7		6,854		6,457		397		6,457		757		4Q 2013
83612TAC6		6,716		6,518		198		6,518		4,026		4Q 2013
86358EZU3		4,443		1,936		2,507		1,936		279		4Q 2013
12640WAG5		1,995		1,851		144		1,851		2,111		4Q 2013
61753NAC4		25		24		1		24		15		4Q 2013
45660LKW8		1,685		1,652		33		1,652		1,571		4Q 2013

Mon Life 2013 SEC 57

Monumental Life Insurance Company

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, 2013 and 2012 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months
Year ended December 31, 2013
The aggregate amount of unrealized losses	$	115,229	$	24,886
The aggregate related fair value of securities with unrealized losses		605,686		607,046
	Losses 12 Months or More		Losses Less Than 12 Months
Year ended December 31, 2012
The aggregate amount of unrealized losses	$	235,956	$	7,106
The aggregate related fair value of securities with unrealized losses		917,808		79,785

Detail of net investment income is presented below:

	Year Ended December 31
	2013			2012		2011
Income:
Bonds	$	608,872		$	665,143	$	698,531
Preferred stocks		4,516			3,791		3,007
Common stocks		1,893			3,599		3,305
Mortgage loans on real estate		98,876			119,979		123,944
Real estate		1,247			1,018		1,095
Policy loans		29,032			29,076		30,126
Cash, cash equivalents and short-term investments		1,353			2,203		2,440
Derivatives		12,632			15,357		5,840
Other invested assets		3,991			13,212		8,697
Other		(738	)		3,441		1,121
Gross investment income		761,674			856,819		878,106
Less investment expenses		32,345			34,505		36,065
Net investment income	$	729,329		$	822,314	$	842,041

Mon Life 2013 SEC 58

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Proceeds from sales and other disposals (excluding maturities) of bonds and preferred stock and related gross realized capital gains and losses were as follows:

	Year Ended December 31
	2013			2012			2011
Proceeds	$	1,582,738		$	4,357,730		$	2,597,080
Gross realized gains	$	12,758		$	417,006		$	66,223
Gross realized losses		(13,236	)		(27,531	)		(22,934	)
Net realized capital gains (losses)	$	(478	)	$	389,475		$	43,289

The Company had gross realized losses for the years ended December 31, 2013, 2012 and 2011 of $41,176, $22,898 and $33,707, respectively, which relate to losses recognized on other-than-temporary declines in the fair value of bonds and preferred stocks.

Net realized capital gains (losses) on investments are summarized below:

	Realized
	Year Ended December 31
	2013			2012			2011
Bonds	$	(41,648	)	$	366,392		$	9,633
Preferred stocks		—			185			(51	)
Common stocks		(203	)		181			2,699
Mortgage loans on real estate		(30	)		(3,240	)		(8,533	)
Real estate		(2,742	)		(3,704	)		(1,869	)
Cash, cash equivalents and short-term investments		1			1			14
Derivatives		(66,568	)		(47,592	)		(115,760	)
Other invested assets		20,448			24,655			14,586
		(90,742	)		336,878			(99,281	)
Federal income tax effect		35,916			(128,376	)		24,360
Transfer to (from) interest maintenance reserve		43,475			(216,378	)		46,079
Net realized capital losses on investments	$	(11,351	)	$	(7,876	)	$	(28,842	)

At December 31, 2013 and 2012, the Company had recorded investments in restructured securities of $320 and $7,170, respectively. The capital (losses) taken as a result of restructures in 2013, 2012 and 2011 were $(156), $(368) and $(6,868), respectively. 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.

Mon Life 2013 SEC 59

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The changes in net unrealized capital gains and losses on investments were as follows:

	Change in Unrealized
	Year Ended December 31
	2013			2012			2011
Bonds	$	50,095		$	(16,551	)	$	4,454
Preferred stocks		—			1,408			(1,408	)
Common stocks		(892	)		(4,558	)		(5,607	)
Affiliated entities		(4,768	)		(5,899	)		(570	)
Mortgage loans on real estate		253			1,255			(1,637	)
Derivatives		94,576			26,867			3,422
Other invested assets		18,545			(38,135	)		(4,716	)
Change in unrealized capital gains (losses), before tax		157,809			(35,613	)		(6,062	)
Taxes on unrealized capital gains/loss		(62,279	)		2,354			(6,021	)
Change in unrealized capital gains (losses), net of tax	$	95,530		$	(33,259	)	$	(12,083	)

The Company’s investments in mortgage loans principally involve commercial real estate.

The credit quality of mortgage loans by type of property for the year ended December 31, 2013 were as follows:

	Farm		Commercial		Total
AAA - AA	$	755	$	1,151,315	$	1,152,070
A		40,812		330,399		371,211
BBB		6,719		22,496		29,215
BB		—		131,804		131,804
B		—		3,352		3,352
	$	48,286	$	1,639,366	$	1,687,652

The credit quality for commercial and farm mortgage loans was determined based on an internal credit rating model which assigns a letter rating to each mortgage loan in the portfolio as an indicator of the credit quality of the mortgage loan. The internal credit rating model was designed based on rating agency methodology, then modified for credit risk associated with the Company’s mortgage lending process, taking into account such factors as projected future cash flows, net operating income, and collateral value. The model produces a credit rating score and an associated letter rating which is intended to align with S&P ratings as closely as possible. Information supporting the credit risk rating process is updated at least annually.

During 2013, the maximum and minimum lending rates for mortgage loans during were 5.87% and 3.00%, respectively. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2013 at the time of

Mon Life 2013 SEC 60

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

origination was 77%. During 2013, the Company did not reduce interest rates on any outstanding mortgages. At December 31, 2013, mortgage loans with a carrying value of $1,061 were non-income producing for the previous 180 days. There was no accrued interest related to these mortgage loans that required excluding the amount from investment income at December 31, 2013. The Company did not have any taxes, assessments and other amounts advanced not included in the mortgage loan total for the year ended December 31, 2013.

The following tables provide the age analysis of mortgage loans aggregated by type:

			Residential				Commercial
December 31, 2013	Farm		Insured		All Other		Insured		All Other		Mezzanine		Total
Recorded Investment (All)
(a) Current	$	48,286	$	—	$	3,930	$	—	$	1,505,460	$	133,906	$	1,691,582
(b) 30-59 Days Past Due		—		—		217		—		—		—		217
(c) 60-89 Days Past Due		—		—		—		—		—		—		—
(d) 90-179 Days Past Due		—		—		—		—		—		—		—
(e) 180+ Days Past Due		—		—		1,061		—		—		—		1,061
			Residential				Commercial
December 31, 2012	Farm		Insured		All Other		Insured		All Other		Mezzanine		Total
Recorded Investment (All)
(a) Current	$	74,872	$	—	$	4,176	$	—	$	1,608,517	$	175,705	$	1,863,270
(b) 30-59 Days Past Due		—		—		190		—		—		—		190
(c) 60-89 Days Past Due		—		—		125		—		—		—		125
(d) 90-179 Days Past Due		—		—		138		—		—		—		138
(e) 180+ Days Past Due		—		—		1,128		—		—		—		1,128

During 2012, the maximum and minimum lending rates for mortgage loans during were 5.00% and 3.65%, respectively. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2012 at the time of origination was 67%. During 2012, the Company did not reduce interest rates on any outstanding mortgages. At December 31, 2012, mortgage loans with a carrying value of $1,128 were non-income producing for the previous 180 days. Accrued interest of $152 related to these mortgage loans was excluded from investment income at December 31, 2012. The Company did not have any taxes, assessments and other amounts advanced not included in the mortgage loan total for the year ended December 31, 2012.

At December 31, 2013 and 2012, respectively, the net admitted asset value in impaired loans with a related allowance for credit losses was $7,983 and $7,926. The Company held an allowance for credit losses on mortgage loans in the amount of $247 and $499 at December 31, 2013 and 2012, respectively. The average recorded investment in impaired loans during 2013 and 2012 was $7,915 and $7,735, respectively. There was no recorded investment in impaired loans without an allowance for credit losses during 2013 or 2012.

Mon Life 2013 SEC 61

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following table provides a reconciliation of the beginning and ending balances for the allowance for credit losses on mortgage loans:

	Year Ended December 31
	2013			2012			2011
Balance at beginning of period	$	499		$	1,754		$	117
Additions, net charged to operations		—			—			1,754
Recoveries in amounts previously charged off		(252	)		(1,255	)		(117	)
Balance at end of period	$	247		$	499		$	1,754

The Company accrues interest income on impaired loans to the extent deemed collectible (delinquent less than 91 days) and the loan continues to perform under its original or restructured contractual terms. Interest income on nonperforming loans generally is recognized on a cash basis. The Company recognized $540, $552 and $312 of interest income on impaired loans for the years ended December 31, 2013, 2012 and 2011, respectively. The Company recognized interest income on a cash basis of $540, $552 and $312 for the years ended December 31, 2013, 2012 and 2011, respectively.

The fair value of property is determined based on an appraisal from a third-party appraiser, along with information obtained from discussions with internal asset managers and a listing broker regarding recent comparable sales data and other relevant property information. Impairment losses of $2,768, $3,996 and $2,373 were taken on real estate in 2013, 2012 and 2011, respectively, to write the book value down to the current fair value and were reflected as realized losses in the statements of operations.

During 2013 and 2012, respectively, mortgage loans of $7,754 and $4,690 were foreclosed or acquired by deed and transferred to real estate. At December 31, 2013 and 2012, the Company held a mortgage loan loss reserve in the AVR of $21,969 and $17,693, respectively.

Mon Life 2013 SEC 62

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:

Geographic Distribution
	December 31
	2013			2012
Pacific		25	%		22	%
South Atlantic		19			18
Middle Atlantic		16			24
E. South Central		13			12
W. South Central		10			8
Mountain		7			6
E. North Central		5			4
W. North Central		4			4
New England		1			2

Property Type Distribution
	December 31
	2013			2012
Office		47	%		48	%
Retail		18			18
Apartment		14			15
Industrial		10			9
Other		4			3
Medical		4			3
Agricultural		3			4
Residential		0			0

At December 31, 2013, 2012 and 2011, the Company held mortgage loans with a total net admitted value of $378, $137 and $137, respectively, which had been restructured in accordance with SSAP No. 36, Troubled Debt Restructuring. There were no realized losses during the years ended December 31, 2013, 2012 and 2011 related to such restructurings. There were no commitments to lend additional funds to debtors owing receivables at December 31, 2013, 2012 or 2011.

During 2012, the Company recorded an impairment of $694 for its investment in Green Mountain Partners II, L.P. The impairment was taken because the decline in fair value of the fund was deemed to be other than temporary and a recovery in value from the remaining underlying investments in the fund was not anticipated. The write-down was included in net realized capital gains (losses) within the statements of operations.

During 2011, the Company recorded an impairment of $1,982 for its investment in Ridge Capital Fund I, L.P. The impairment was taken because the decline in fair value of the fund was deemed to be other than temporary and a recovery in value from the remaining underlying investments in the fund was not anticipated. The write-down was included in net realized capital gains (losses) within the statements of operations.

On December 31, 2010, the Company acquired two real estate related limited liability company interests (Transamerica Pyramid Properties, LLC and Transamerica Realty Properties, LLC) from Transamerica Life Insurance Company (TLIC), an affiliate, for a combined purchase price of $252,975. The price paid was based predominantly on the valuations of the properties within each of those entities. This transaction was accounted for as a business combination using the statutory purchase method and resulted in goodwill of $100,674, which was included in the

Mon Life 2013 SEC 63

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

carrying amount of these other invested assets. Amortization in the amount of $10,067 was recorded during each of the years ending December 31, 2013 and 2012, which is reflected in the carrying value of these other invested assets with an offset to the change in net unrealized capital gains/losses. As the carrying amount of the total positive goodwill of the Company exceeded 10% of the September 30, 2013 capital and surplus, adjusted to exclude positive goodwill and net deferred tax assets as of September 30, 2013, goodwill in the amount of $10,702 associated with this transaction was nonadmitted at December 31, 2013. The entire goodwill balance associated with this transaction was admitted at December 31, 2012.

For the year ending December 31, 2013, the Company had ownership interests in forty-eight LIHTC properties. The remaining years of unexpired tax credits ranged from one to nine and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from one to fourteen years. The amount of contingent equity commitments expected to be paid during the years 2014 to 2025 is $2,032. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

For the year ending December 31, 2012, the Company had ownership interests in fifty-seven LIHTC properties. The remaining years of unexpired tax credits ranged from one to thirteen and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from one to fifteen years. The amount of contingent equity commitments expected to be paid during the years 2013 to 2025 is $7,640. There were no impairment losses, write-downs or reclassifications during the year related to any of 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, 2013 and 2012:

			December 31, 2013
Description of State Transferable and Non-transferable Tax Credits	State		Carrying Value		Unused Amount*
Low-Income Housing Tax Credits		MA	$	462	$	1,033
Total			$	462	$	1,033
			December 31, 2012
Description of State Transferable and Non-transferable Tax Credits	State		Carrying Value		Unused Amount
Low-Income Housing Tax Credits		MA	$	810	$	1,381
Total			$	810	$	1,381

*The unused amount reflects credits that the Company deems will be realizable in the period from 2014 to 2015.

Mon Life 2013 SEC 64

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company had no non-transferable state tax credits.

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 as of December 31, 2013, 2012 and 2011.

Derivatives

The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets (cash or securities) on the Company’s behalf in an amount equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, then the Company is required to post similar assets (cash or securities).

At December 31, 2013 and 2012, the fair value of all derivative contracts, aggregated at a counterparty level, with a positive fair value amounted to $370,542 and $585,525, respectively.

At December 31, 2013 and 2012, the fair value of all derivative contracts, aggregated at a counterparty level, with a negative fair value amounted to $47,904 and $186,630, respectively.

For the years ended December 31, 2013, 2012 and 2011, the Company has recorded $88,048, $287 and $(14,830), respectively, 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 gain (loss).

The Company did not recognize any unrealized gains or losses during 2013, 2012 or 2011 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

The maximum term over which the Company is hedging its exposure to the variability of future cash flows is approximately 20 years for forecasted hedge transactions.

For the years ended December 31, 2013, 2012 and 2011 none of the Company’s cash flow hedges have been discontinued as it was probable that the original forecasted transactions would occur by the end of the originally specified time period documented at inception of the hedging relationship.

Mon Life 2013 SEC 65

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

As of December 31, 2013 and 2012, the company has accumulated deferred gains in the amount of $3,616 and $3,822, respectively, related to the termination of swaps that were hedging forecasted transactions. It is expected that these gains will be used as basis adjustments on futures asset purchases expected to transpire throughout 2026.

At December 31, 2013 and 2012, the Company had replicated assets with a fair value of $562,373 and $469,474, respectively, and credit default and forward starting interest rate swaps with a fair value of $8,188 and $(26,540), respectively.

For the year ended December 31, 2013 and 2012, the Company recognized $77 and $1,639 in capital losses related to replication transactions.

As stated in Note 1, the Company replicates investment grade corporate bonds by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, the Company has recourse provisions from the proceeds of the bankruptcy settlement of the underlying entity or by the sale of the underlying bond.

Mon Life 2013 SEC 66

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

As of December 31, 2013, credit default swaps, used in replicating corporate bonds are as follows:

	Maximum Future
	Maturity		Payout		Current Fair
Deal, Receive (Pay), Underlying	Date		(Estimated)		Value
43231,SWAP, USD 1 / (USD 0), :912810PX0		12/20/2015	$	10,000	$	111
43285,SWAP, USD 1 / (USD 0), :CDXIG 17		12/20/2016		7,500		154
43286,SWAP, USD 1 / (USD 0), :CDXIG17		12/20/2016		3,500		72
43299,SWAP, USD 1 / (USD 0), :JP1200551248		3/20/2017		12,000		293
43302,SWAP, USD 1 / (USD 0), :US50064FAD69		3/20/2017		10,000		198
43307,SWAP, USD 1 / (USD 0), :US731011AN26		3/20/2017		15,000		264
43310,SWAP, USD 1 / (USD 0), :US50064FAD69		3/20/2017		10,000		198
43321,SWAP, USD 1 / (USD 0), :USY6826RAA06		3/20/2017		5,000		57
43347,SWAP, USD 1 / (USD 0), :US416515AY06		6/20/2017		25,000		437
47295,SWAP, USD 1 / (USD 0), :US59156RAN89		6/20/2017		25,000		418
47296,SWAP, USD 1 / (USD 0), :US172967ES69		6/20/2017		25,000		420
47297,SWAP, USD 1 / (USD 0), :US743410AW27		6/20/2017		25,000		345
43374,SWAP, USD 1 / (USD 0), :CDX IG 18		6/20/2017		10,000		215
43394,SWAP, USD 1 / (USD 0), :XS0114288789		9/20/2017		10,000		(113	)
43601,SWAP, USD 1 / (USD 0), :US88322LAA70		9/20/2017		5,100		10
43613,SWAP, USD 1 / (USD 0), :US455780AQ93		9/20/2017		7,800		(206	)
46410,SWAP, USD 1 / (USD 0), :912810QL5		12/20/2017		20,000		426
46411,SWAP, USD 1 / (USD 0), :912810QL5		12/20/2017		19,000		405
46915,SWAP, USD 1 / (USD 0), :61761DAD4		12/20/2017		20,000		247
47037,SWAP, USD 1 / (USD 0), :12624PAE5		12/20/2017		5,000		106
47657,SWAP, USD 1 / (USD 0), :92939RBB7		12/20/2017		12,500		209
48775,SWAP, USD 1 / (USD 0), :12624QAR4		12/20/2017		12,500		266
49952,SWAP, USD 1 / (USD 0), :94987MAB7		12/20/2017		5,000		73
53497,SWAP, USD 1 / (USD 0), :20048EAY7		12/20/2017		15,000		319
53821,SWAP, USD 1 / (USD 0), :92937EAZ7		3/20/2018		22,000		432
54329,SWAP, USD 1 / (USD 0), :76116FAG2		3/20/2018		10,000		30
54865,SWAP, USD 5 / (USD 0), :61761QAE3		3/20/2018		15,000		2408
55127,SWAP, USD 1 / (USD 0), :36228CUV3		3/20/2018		2,300		(95	)
60519,SWAP, USD 1 / (USD 0), :912828TY6		6/20/2018		20,000		275
60520,SWAP, USD 1 / (USD 0), :912828TY6		6/20/2018		20,000		(7	)
60521,SWAP, USD 1 / (USD 0), :912828TY6		6/20/2018		10,000		(1	)
59110,SWAP, USD 1 / (USD 0), :912828TY6		6/20/2018		20,000		200
59117,SWAP, USD 1 / (USD 0), :912828TY6		6/20/2018		10,000		(1	)
59280,SWAP, USD 1 / (USD 0), :912828TY6		6/20/2018		20,000		275

Mon Life 2013 SEC 67

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2013 and 2012, the Company held options with a fair value of $5,432 and $66, respectively.

At December 31, 2013 and 2012, the Company’s outstanding derivative financial instruments with on and off balance sheet risks, shown in notional amounts, are summarized as follows:

	Notional Amount
	2013		2012
Interest rate and currency swaps:
Receive floating—pay floating	$	—	$	31,620
Receive fixed—pay floating		43,970		88,562
Receive floating—pay fixed		19,500		19,500
Receive fixed—pay fixed		482,442		—
Swaps:
Receive fixed—pay floating		1,701,576		2,748,946
Receive fixed—pay fixed		53,003		—
Receive floating—pay fixed		179,200		664,840
Receive floating—pay floating		39,200		39,200

The Company recognized net realized gains (losses) from futures contracts in the amount of $3,578, $1,917 and $(399), for the years ended December 31, 2013, 2012 and 2011, respectively.

Open futures contracts at December 31, 2013 and 2012 were as follows:

				Opening		Year-End
				Fair		Fair
Long/Short	Number of Contracts		Contract Type	Value		Value
December 31, 2013
Long		50	S&P 500 March 2014 Futures	$	22,253	$	23,013
Short		116	S&P 500 E-MINI March 2014 Futures		10,325		10,678
Long		10	NASDAQ 100 E-MINI March 2014 Futures		693		716

Mon Life 2013 SEC 68

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Long/Short	Number of Contracts	Contract Type	Opening Fair Value			Year-End Fair Value
December 31, 2012
Long	46	S&P 500 March 2013 Futures	$	16,262		$	16,331
Short	(69)	S&P 500 E-MINI March 2013 Futures		(4,857	)		(4,774	)
Long	3	NASDAQ 100 E-MINI March 2013 Futures	$	157		$	159

The following tables show the pledged or restricted assets as of December 31, 2013 and 2012, respectively:

	Gross Restricted
Restricted Asset Category	Total General Account (G/A)		G/A Supporting Separate Account (S/A) Activity		Total S/A Restricted Assets		S/A Assets Supporting G/A Activity		Total
a. Subject to contractual obligation for which liability is not shown	$	—	$	—	$	—	$	—	$	—
b. Collateral held under security lending agreements		322,169		—		—		—		322,169
c. Subject to repurchase agreements		—		—		—		—		—
d. Subject to reverse repurchase agreements		—		—		—		—		—
e. Subject to dollar repurchase agreements		52,930		—		—		—		52,930
f. Subject to dollar reverse repurchase agreements		—		—		—		—		—
g. Placed under option contracts		—		—		—		—		—
h. Letter stock or securities restricted as to sale		—		—		—		—		—
i. On deposit with state(s)		9,184		—		—		—		9,184
j. On deposit with other regulatory bodies		—		—		—		—		—
k. Pledged as collateral not captured in other categories		587,282		—		—		—		587,282
l. Other restricted assets - reinsurance		189,895		—		—		—		189,895
m. Total Restricted Assets	$	1,161,460	$	—	$	—	$	—	$	1,161,460

Mon Life 2013 SEC 69

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Gross Restricted							Percentage
Restricted Asset Category	Total From Prior Year		Increase/ (Decrease)			Total Current Year Admitted Restricted		Gross Restricted to Total Assets			Admitted Restricted to Total Admitted Assets
a. Subject to contractual obligation for which liability is not shown	$	—	$	—		$	—		0.00	%		0.00	%
b. Collateral held under security lending agreements		347,440		(25,271	)		322,169		1.01			1.01
c. Subject to repurchase agreements		—		—			—		0.00			0.00
d. Subject to reverse repurchase agreements		—		—			—		0.00			0.00
e. Subject to dollar repurchase agreements		6,422		46,508			52,930		0.17			0.17
f. Subject to dollar reverse repurchase agreements		—		—			—		0.00			0.00
g. Placed under option contracts		—		—			—		0.00			0.00
h. Letter stock or securities restricted as to sale		—		—			—		0.00			0.00
i. On deposit with state(s)		10,498		(1,314	)		9,184		0.03			0.03
j. On deposit with other regulatory bodies		—		—			—		0.00			0.00
k. Pledged as collateral not captured in other categories		1,346,969		(759,687	)		587,282		1.84			1.84
l. Other restricted assets - reinsurance		200,281		(10,386	)		189,895		0.60			0.60
m. Total Restricted Assets	$	1,911,610	$	(750,150	)	$	1,161,460		3.65	%		3.65	%

Assets pledged as collateral not captured in other categories includes the following:

Invested assets with a carrying value of $15,185 and $14,443 pledged in conjunction with derivative transactions as of December 31, 2013 and 2012, respectively.

Mon Life 2013 SEC 70

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Invested assets with a carrying amount of $572,097 and $1,332,526 pledged in conjunction with funding agreement transactions as of December 31, 2013 and 2012, respectively.

6. Reinsurance

Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The Company reinsures portions of the risk on certain insurance policies which exceed its established limits, thereby providing a greater diversification of 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 obligation under the reinsurance treaty.

Premiums earned reflect the following reinsurance amounts:

	Year Ended December 31
	2013			2012			2011
Direct premiums	$	2,068,373		$	1,867,885		$	1,794,666
Reinsurance assumed—non affiliates		131,992			178,530			190,059
Reinsurance assumed—affiliates		25,047			28,940			22,874
Reinsurance ceded—non affiliates		(62,896	)		(61,142	)		(61,076	)
Reinsurance ceded—affiliates		(456,039	)		(492,496	)		(543,301	)
Net premiums earned	$	1,706,477		$	1,521,717		$	1,403,222

The Company received reinsurance recoveries in the amount of $405,026, $450,571 and $455,081 during 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $28,006 and $27,288, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2013 and 2012 of $6,610,550 and $8,221,493, respectively, of which $6,523,603 and $8,112,442, respectively, were ceded to affiliates.

At December 31, 2013 and 2012, amounts recoverable from unaffiliated unauthorized reinsurers totaled $2,885 and $3,590, respectively, and reserve credits for reinsurance ceded totaled $10,367 and $13,406, respectively. The reinsurers hold collateral under these reinsurance agreements in the form of trust agreements totaling $19,539 and $18,269 at December 31, 2013 and 2012, respectively, that can be drawn on for amounts that remain unpaid for more than 120 days. There would be no reduction in surplus at December 31, 2013 if all reinsurance agreements were cancelled.

Mon Life 2013 SEC 71

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

During 2013, the Company did not enter into any new reinsurance agreements in which a reserve credit was taken.

Effective September 30, 2012, the Company agreed to amend and restate the indemnity reinsurance treaty originally effective October 1, 2009 with MLIC Re, Inc., an affiliate. The amended and restated treaty now includes an experience refund mechanism and a revised schedule of coinsurance reserves. The Company received consideration of $425,000, paid a treaty settlement equal to the change in modified coinsurance reserves of $497,500 and increased ceded coinsurance reserves by $497,500 resulting in a pre-tax gain of $425,000 ($276,250 net of tax) which has been credited directly to unassigned surplus on a net of tax basis.

On April 26, 2011, Aegon N.V. announced the divestiture of its life reinsurance operations, Transamerica Reinsurance, to SCOR SE (SCOR), a Societas Europaea organized under the laws of France, 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 (TIRI), an Irish reinsurance company. In preparation of the disposition 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 $20,567 which was included in the statement of operations, and a net of tax gain of $15,885 which was credited directly to unassigned surplus. These amounts include current year amortization of previously deferred gains, as well as releases of previously deferred gains from unassigned surplus into earnings. Additional information surrounding these transactions is outlined below.

Effective April 1, 2011, the Company recaptured the life, military universal life, final settlement and Korean accidental death business that was previously reinsured on a coinsurance and a coinsurance funds withheld basis to affiliates. The Company paid recapture consideration of $15,400, received invested assets of $12,200, released the associated funds withheld liability of $2,130, recaptured reserves of $24,805, assumed other assets of $5,248 and released into income a previously deferred unamortized gain resulting from the original transaction in the amount of $60 ($39 after-tax). The resulting pre-tax loss of $20,567 was included in the statement of operations.

Subsequently, effective April 1, 2011, the Company ceded the life and military universal life business on a coinsurance funds withheld basis to an affiliate. The Company received an initial ceding commission of $12,100, transferred other assets of $4,159, established a funds withheld

Mon Life 2013 SEC 72

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

liability of $4,796 and released reserves of $20,770, resulting in a pre-tax gain of $23,915 ($15,545 on a net of tax basis) which was credited directly to unassigned surplus.

Effective December 31, 2011, the Company recaptured the credit life and credit disability business that was previously reinsured on a coinsurance funds withheld basis to an unaffiliated party. The Company released the associated funds withheld liability of $2,428, recaptured reserves of $4,466 and exchanged no consideration resulting in a pre-tax loss of $2,038 which was included in the statement of operations.

Subsequently, December 31, 2011, the Company ceded that credit life and credit disability business, as well as additional in force business written and assumed by the Company as well as all new policies issued thereafter, on a coinsurance funds withheld basis to an affiliate. The Company established a funds withheld liability of $19,980, released reserves of $39,420 and exchanged no consideration resulting in a pre-tax gain of $19,440 ($12,637 after-tax) which was credited directly to unassigned surplus on a net of tax basis.

Effective September 30, 2011, the Company recaptured the term life business previously coinsured to an affiliate. Also effective September 30, 2011, the same block of business was recaptured by an affiliate, from which it had been assumed. The Company recaptured reserves of $402,985, released reserves of the same amount and released into income a previously deferred unamortized gain resulting from the original cession of the business to an affiliate in the amount of $421,601 ($274,041 net of tax) resulting in a pre-tax gain of $421,601 was included in the statement of operations.

The Company entered into an assumption reinsurance transaction with TLIC effective September 30, 2008. TLIC was the issuer of a series of corporate-owned life insurance policies issued to Life Investors Insurance Company of America (LIICA), an affiliate. The assumption reinsurance transaction resulted in the Company assuming all liabilities of TLIC arising under these policies. The Company assumed reserves of $138,025 and received consideration of $125,828. The Company recorded $12,197 of goodwill related to this transaction. The Company amortized $1,130 and $1,073 of this balance during 2012 and 2011, respectively.

During 2013, 2012 and 2011, the Company amortized deferred gains from reinsurance transactions of $63,742, $68,733 and $59,795, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

Mon Life 2013 SEC 73

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

7. Income Taxes

The net deferred income tax asset at December 31, 2013 and 2012 and the change from the prior year are comprised of the following components:

				December 31, 2013
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	349,840		$	137,099		$	486,939
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		349,840			137,099			486,939
Deferred Tax Assets Nonadmitted		187,165			15,215			202,380
Subtotal (Net Deferred Tax Assets)		162,675			121,884			284,559
Deferred Tax Liabilities		64,832			57,016			121,848
Net Admitted Deferred Tax Assets	$	97,843		$	64,868		$	162,711
				December 31, 2012
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	345,565		$	167,073		$	512,638
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		345,565			167,073			512,638
Deferred Tax Assets Nonadmitted		202,027			14,941			216,968
Subtotal (Net Deferred Tax Assets)		143,538			152,132			295,670
Deferred Tax Liabilities		39,461			56,277			95,738
Net Admitted Deferred Tax Assets	$	104,077		$	95,855		$	199,932
	Ordinary			Change Capital			Total
Gross Deferred Tax Assets	$	4,275		$	(29,974	)	$	(25,699	)
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		4,275			(29,974	)		(25,699	)
Deferred Tax Assets Nonadmitted		(14,862	)		274			(14,588	)
Subtotal (Net Deferred Tax Assets)		19,137			(30,248	)		(11,111	)
Deferred Tax Liabilities		25,371			739			26,110
Net Admitted Deferred Tax Assets	$	(6,234	)	$	(30,987	)	$	(37,221	)

Mon Life 2013 SEC 74

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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

	Year Ended December 31
	2013		2012		Change
Ordinary
Policyholder reserves	$	206,923	$	196,726	$	10,197
Investments		15,714		12,069		3,645
Deferred acquisition costs		108,377		113,728		(5,351	)
Compensation and benefits accrual		308		1,432		(1,124	)
Receivables—nonadmitted		13,879		16,270		(2,391	)
Section 197 Intangible Amortization		570		629		(59	)
Corporate Provision		105		202		(97	)
Other (including items <5% of ordinary tax assets)		3,964		4,509		(545	)
Subtotal		349,840		345,565		4,275
Nonadmitted		187,165		202,027		(14,862	)
Admitted ordinary deferred tax assets		162,675		143,538		19,137
Capital:
Investments		137,099		167,073		(29,974	)
Subtotal		137,099		167,073		(29,974	)
Statutory valuation allowance adjustment		—		—		—
Nonadmitted		15,215		14,941		274
Admitted capital deferred tax assets		121,884		152,132		(30,248	)
Admitted deferred tax assets	$	284,559	$	295,670	$	(11,111	)

Mon Life 2013 SEC 75

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2013		2012		Change
Deferred Tax Liabilities:
Ordinary
Investments	$	46,938	$	18,864	$	28,074
§807(f) adjustment		10,617		12,766		(2,149	)
Reinsurance ceded.		2,304		2,896		(592	)
Intercompany gain amortization		4,601		4,754		(153	)
Other (including items <5% of total ordinary tax liabilities)		372		181		191
Subtotal		64,832		39,461		25,371
Capital
Investments		57,016		56,277		739
Subtotal		57,016		56,277		739
Deferred tax liabilities		121,848		95,738		26,110
Net deferred tax assets/liabilities	$	162,711	$	199,932	$	(37,221	)

As discussed in Note 1, for the years ended December 31, 2013 and 2012 the Company admits deferred income tax assets pursuant to SSAP No. 101. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 101 is as follows:

	December 31, 2013
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	97,843	$	44,058	$	141,901
2(b)  Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		—		20,810		20,810
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		—		20,810		20,810
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		120,297
2(c)  Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		64,832		57,016		121,848
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	162,675	$	121,884	$	284,559

Mon Life 2013 SEC 76

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

				December 31, 2012
	Ordinary			Capital			Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	104,077		$	95,855		$	199,932
2(b)  Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		—			—			—
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		—			—			—
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX			XXX			107,057
2(c)  Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		39,461			56,277			95,738
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) +2(c))	$	143,538		$	152,132		$	295,670
	Ordinary			Change Capital			Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	(6,234	)	$	(51,797	)	$	(58,031	)
2(b)  Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		—			20,810			20,810
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		—			20,810			20,810
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX			XXX			13,240
2(c)  Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		25,371			739			26,110
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	19,137		$	(30,248	)	$	(11,111	)

Mon Life 2013 SEC 77

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31
	2013			2012			Change
Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount		578	%		564	%		14	%
Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 above	$	801,931		$	603,615		$	198,316

The impact of tax planning strategies at December 31, 2013 and 2012 was as follows:

				December 31, 2013
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	349,840		$	137,099		$	486,939
(% of Total Adjusted Gross DTAs)		0	%		58	%		16	%
Net Admitted Adjusted Gross DTAs	$	162,675		$	121,884		$	284,559
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		17	%		7	%
				December 31, 2012
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	345,565		$	167,073		$	512,638
(% of Total Adjusted Gross DTAs)		0	%		23	%		7	%
Net Admitted Adjusted Gross DTAs	$	143,538		$	152,132		$	295,670
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		0	%		0	%

Mon Life 2013 SEC 78

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Ordinary Percent			Change Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	4,275		$	(29,974	)	$	(25,699	)
(% of Total Adjusted Gross DTAs)		0	%		35	%		9	%
Net Admitted Adjusted Gross DTAs	$	19,137		$	(30,248	)	$	(11,111	)
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		17	%		7	%

The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.

Current income taxes incurred consist of the following major components:

	Year Ended December 31
	2013			2012			Change
Current Income Tax
Federal	$	23,987		$	103,095		$	(79,108	)
Subtotal		23,987			103,095			(79,108	)
Federal income tax on net capital gains		(35,916	)		128,376			(164,292	)
Federal and foreign income taxes incurred	$	(11,929	)	$	231,471		$	(243,400	)
	Year Ended December 31
	2012			2011			Change
Current Income Tax
Federal	$	103,095		$	31,580		$	71,515
Subtotal		103,095			31,580			71,515
Federal income tax on net capital gains		128,376			(24,360	)		152,736
Federal and foreign income taxes incurred	$	231,471		$	7,220		$	224,251
	Year Ended December 31
	2011			2010			Change
Current Income Tax
Federal	$	31,580		$	39,987		$	(8,407	)
Subtotal		31,580			39,987			(8,407	)
Federal income tax on net capital gains		(24,360	)		28,435			(52,795	)
Federal and foreign income taxes incurred	$	7,220		$	68,422		$	(61,202	)

Mon Life 2013 SEC 79

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company did not report a valuation allowance for deferred income tax assets as of December 31, 2013 or 2012.

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate of 35% to income before tax as follows:

	Year Ended December 31
	2013			2012			2011
Current income taxes incurred	$	(11,929	)	$	231,472		$	7,220
Change in deferred income taxes		(10,470	)		(823	)		(218,165	)
(without tax on unrealized gains and losses)
Total income tax reported	$	(22,399	)	$	230,649		$	(210,945	)
Income before taxes	$	107,663		$	591,395		$	442,849
		35.00	%		35.00	%		35.00	%
Expected income tax expense (benefit) at 35% statutory rate	$	37,682		$	206,988		$	154,997
Increase (decrease) in actual tax reported resulting from:
Dividends received deduction		(3,157	)		(3,847	)		(4,257	)
Tax credits		(18,501	)		(21,244	)		(24,476	)
Tax-exempt Income		(8	)		(6	)		(182	)
Tax adjustment for IMR		(5,450	)		(3,860	)		(1,544	)
Surplus adjustment for in-force ceded		(22,310	)		72,631			(112,555	)
Nondeductible expenses		694			766			483
Deferred tax benefit on other items in surplus		(3,209	)		(7,569	)		(17,505	)
Provision to return		357			(2,625	)		9,962
Life-owned life insurance		(876	)		(856	)		(835	)
Dividends from certain foreign corporations		319			423			329
Prior period adjustment		(8,973	)		(5,876	)		(23,612	)
Pre-tax income of SMLLC’s		—			(4,441	)		(2,550	)
Change in basis due to corporate restructuring		—			—			(185,900	)
Other		1,033			165			(3,300	)
Total income tax reported	$	(22,399	)	$	230,649		$	(210,945	)

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

Mon Life 2013 SEC 80

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 2013.

As of December 31, 2013 and 2012, the Company had no operating loss or tax credit carryforwards available for tax purposes. The Company did not have a capital loss carryforward at December 31, 2013 and 2012.

The Company incurred income taxes during 2013, 2012 and 2011 of $19,577, $224,089, and $14,014, 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, 2013 and 2012 is $194 and $198, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $194. The Company classifies interest and penalties related to income taxes as income tax expense. The Company’s interest (benefit) expense related to income taxes for the years ending December 31, 2013, 2012 and 2011 is $(525), $766 and $(136), respectively. The total interest payable balance as of December 31, 2013 and 2012 is $8 and $9, 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.

8. Policy and Contract Attributes

Participating life insurance policies were issued by the Company which entitle policyholders to a share in the earnings of the participating policies, provided that a dividend distribution, which is determined annually based on mortality and persistency experience of the participating policies, is authorized by the Company. Participating insurance constituted less than 1% of ordinary life insurance in force at December 31, 2013 and 2012.

Mon Life 2013 SEC 81

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

For the years ended December 31, 2013, 2012 and 2011, premiums for participating life insurance policies were $1,185, $1,232 and $1,298, respectively. The Company accounts for its policyholder dividends based on dividend scales and experience of the policies. The Company paid dividends in the amount of $1,259, $1,279 and $1,342 to policyholders during 2013, 2012 and 2011, respectively, and did not allocate any additional income to such policyholders.

A portion of the Company’s policy reserves and other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity and deposit fund products. 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:

	December 31, 2013
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal
With fair value adjustment	$	28,645	$	20,697	$	—	$	49,342		0	%
At book value less surrender charge of 5% or more		13,831		—		—		13,831		0
At fair value		74		—		14,304,849		14,304,923		60
Total with adjustment or at fair value		42,550		20,697		14,304,849		14,368,096		60
At book value without adjustment
(minimal or no charge or adjustment)		3,867,503		—		—		3,867,503		16
Not subject to discretionary withdrawal		5,415,525		78,682		63,097		5,557,304		24
Total annuity reserves and deposit liabilities		9,325,578		99,379		14,367,946		23,792,903		100	%
Less reinsurance ceded		5,017,441		—		—		5,017,441
Net annuity reserves and deposit liabilities	$	4,308,137	$	99,379	$	14,367,946	$	18,775,462

Mon Life 2013 SEC 82

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31, 2012
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal
With fair value adjustment	$	42,069	$	23,609	$	—	$	65,678		0	%
At book value less surrender charge of 5% or more		22,755		—		—		22,755		0
At fair value		111		—		12,400,461		12,400,572		52
Total with adjustment or at fair value		64,935		23,609		12,400,461		12,489,005		52
At book value without adjustment
(minimal or no charge or adjustment)		4,276,647		—		—		4,276,647		18
Not subject to discretionary withdrawal		6,934,154		170,007		54,778		7,158,939		30
Total annuity reserves and deposit liabilities		11,275,736		193,616		12,455,239		23,924,591		100	%
Less reinsurance ceded		6,637,964		—		—		6,637,964
Net annuity reserves and deposit liabilities	$	4,637,772	$	193,616	$	12,455,239	$	17,286,627

Included in the liability for deposit-type contracts at December 31, 2013 and 2012 are approximately $53,121 and $52,574, respectively, of funding agreements issued to special purpose entities in conjunction with non-recourse medium-term note programs. Under these programs, the proceeds from each note series issuance are used to purchase a funding agreement from the Company which secures that particular series of notes. In general, the payment terms of the note series match the payment terms of the funding agreement that secures that series. Claims for the principal and interest for these funding agreements are afforded equal priority as other policyholders.

At December 31, 2013 the contractual maturities were as follows:

Year	Amount
2014	$	—
2015		—
2016		—
2017		—
Thereafter		53,121

The Company’s liability for deposit-type contracts includes GIC’s and Funding Agreements assumed from Transamerica Life Insurance Company, an affiliate. The liabilities assumed are $900,065 and $900,084 at December 31, 2013 and 2012, respectively.

Mon Life 2013 SEC 83

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Certain separate and variable accounts held by the Company represent funds for which the benefit is determined by the performance and/or fair value of the investments held in the separate account. The assets and the liabilities of these are carried at fair value. These variable annuities generally provide an additional minimum guaranteed death benefit. Some variable annuities also provide a minimum guaranteed income benefit. The Company’s Guaranteed Indexed separate accounts provide customers a return based on the total performance of a specified financial index plus an enhancement. Hedging instruments that return the chosen index are purchased by the Company and held within the separate account. The assets in the accounts, carried at fair value, consist primarily of long-term bonds. Information regarding the separate accounts of the Company are as follows:

	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonguaranteed		Total
Premiums, deposits and other considerations for the year ended December 31, 2013	$	—	$	132	$	569,801	$	569,933
Reserves for separate accounts as of December 31, 2013 with assets at fair value	$	78,682	$	20,697	$	14,377,033	$	14,476,412
Total	$	78,682	$	20,697	$	14,377,033	$	14,476,412
Reserves by withdrawal characteristics as of December 31, 2013:
With fair value adjustment	$	78,682	$	20,697	$	—	$	99,379
At fair value		—		—		14,313,937		14,313,937
Not subject to discretionary withdrawal		—		—		63,096		63,096
Total separate account liabilities at December 31, 2013	$	78,682	$	20,697	$	14,377,033	$	14,476,412

Mon Life 2013 SEC 84

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonguaranteed		Total
Premiums, deposits and other considerations for the year ended December 31, 2012	$	—	$	120	$	466,200	$	466,320
Reserves for separate accounts as of December 31, 2012 with assets at fair value	$	170,007	$	23,609	$	12,462,862	$	12,656,478
Total as of December 31, 2012	$	170,007	$	23,609	$	12,462,862	$	12,656,478
Reserves by withdrawal characteristics as of December 31, 2012:
With fair value adjustment	$	170,007	$	23,609	$	—	$	193,616
At fair value		—		—		12,408,084		12,408,084
Not subject to discretionary withdrawal		—		—		54,778		54,778
Total separate account liabilities at December 31, 2012	$	170,007	$	23,609	$	12,462,862	$	12,656,478
	Guaranteed Indexed		Nonindexed Guaranteed Less Than 4%		Nonguaranteed		Total
Premiums, deposits and other considerations for the year ended December 31, 2011	$	—	$	107	$	402,748	$	402,855
Reserves for separate accounts as of December 31, 2011 with assets at fair value	$	170,658	$	25,929	$	11,260,745	$	11,457,332
Total as of December 31, 2011	$	170,658	$	25,929	$	11,260,745	$	11,457,332
Reserves by withdrawal characteristics as of December 31, 2011:
With fair value adjustment	$	170,658	$	25,929	$	—	$	196,587
At fair value		—		—		11,203,196		11,203,196
Not subject to discretionary withdrawal	$	—		—		57,549		57,549
Total separate account liabilities at December 31, 2011	$	170,658	$	25,929	$	11,260,745	$	11,457,332

Mon Life 2013 SEC 85

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:

	Year Ended December 31
	2013			2012			2011
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	569,933		$	466,321		$	402,855
Transfers from separate accounts		(888,332	)		(656,788	)		(540,288	)
Net transfers from separate accounts		(318,399	)		(190,467	)		(137,433	)
Miscellaneous reconciling adjustments		5,606			1,087			763
Net transfers as reported in the statement of operations of the life, accident and health annual statement	$	(312,793	)	$	(189,380	)	$	(136,670	)

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, 2013 and 2012, the Company’s separate account statement included legally insulated assets of $14,524,270 and $12,530,256, respectively. The assets legally insulated from general account claims at December 31, 2013 and 2012 are attributed to the following products:

Product	2013		2012
Variable annuities	$	12,390,614		10,609,856
Group annuities		1,993,324		1,715,754
Modified separate account		131,244		197,024
Variable life		9,088		7,623
Total separate account assets	$	14,524,270	$	12,530,256

The Company does not participate in securities lending transactions within the separate account.

For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with 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

Mon Life 2013 SEC 86

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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).

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, 2013 and 2012, the Company had variable and separate account annuities with minimum guaranteed benefits as follows:

Benefit and Type of Risk	Subjected Account Value		Amount of Reserve Held		Reinsurance Reserve Credit
December 31, 2013
Minimum guaranteed death benefit	$	7,417,616	$	2,889	$	—
Minimum guaranteed income benefit		11,336		1,018		—
Minimum guaranteed withdrawal benefit		160,497		—		—
December 31, 2012
Minimum guaranteed death benefit	$	6,541,811	$	3,495	$	—
Minimum guaranteed income benefit		9,960		1,602		—
Minimum guaranteed withdrawal benefit		102,022		—		—

The Company offers variable and separate account annuities with minimum guaranteed benefits. 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, 2013 and 2012, the general account of the Company had a maximum guarantee for separate account liabilities of $107,007 and $170,007, respectively. To compensate the general account for the risk taken, the separate account paid risk charges of $1,392, $545 and $104 to the general account in 2013, 2012 and 2011, respectively. During the years ended December 31, 2013, 2012 and 2011, the general account of the Company had paid $501, $239 and $613, respectively, toward separate account guarantees.

Mon Life 2013 SEC 87

Monumental Life Insurance Company

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 policies’s paid-through date to the policy’s next anniversary date. At December 31, 2013 and 2012, the gross premium and loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:

	Gross			Loading		Net
December 31, 2013
Life and annuity:
Ordinary direct first year business	$	16,769		$	12,176	$	4,593
Ordinary direct renewal business		194,579			51,318		143,261
Group life direct business		13,030			3,386		9,644
Credit direct business		440			—		440
Reinsurance ceded		(20,766	)		—		(20,766	)
Total life and annuity		204,052			66,880		137,172
Accident and health:
Direct		35,888			—		35,888
Reinsurance assumed		6,714			—		6,714
Reinsurance ceded		(1,645	)		—		(1,645	)
Total accident and health		40,957			—		40,957
	$	245,009		$	66,880	$	178,129
	Gross			Loading		Net
December 31, 2012
Life and annuity:
Ordinary direct first year business	$	17,360		$	12,774	$	4,586
Ordinary direct renewal business		201,276			53,166		148,110
Group life direct business		14,508			3,775		10,733
Credit direct business		508			—		508
Reinsurance ceded		(19,565	)		—		(19,565	)
Total life and annuity		214,087			69,715		144,372
Accident and health:
Direct		47,336			—		47,336
Reinsurance assumed		11,786			—		11,786
Reinsurance ceded		(2,076	)		—		(2,076	)
Total accident and health		57,046			—		57,046
	$	271,133		$	69,715	$	201,418

Mon Life 2013 SEC 88

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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. At December 31, 2013 and 2012, the Company established a premium deficiency reserve of $117,300 and $0, respectively.

At December 31, 2013 and 2012, the Company had insurance in force aggregating $4,156,319 and $4,262,496, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the Insurance Division, Department of Commerce, of the State of Iowa. The Company established policy reserves of $50,445 and $42,640 to cover these deficiencies at December 31, 2013 and 2012, respectively.

The Company’s primary method utilized to estimate premium adjustments for contracts subject to redetermination is to review experience periodically and to adjust premiums for differences between the experience anticipated at the time of redetermination and that underlying the original premiums. The Company has not limited its degree of discretion contractually; however, in some states it has agreed not to raise premiums in order to recoup past losses. The Company forgoes premium changes on existing policies at its option if the administrative cost and other business issues associated with the change outweigh the direct financial impact of the change. Also, the Company has extra-contractually guaranteed the current premium scale for certain policies.

Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business. The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2013 and 2012 was $2,367 and $2,096, respectively.

9. Capital and Surplus

The Company is subject to limitations, imposed by the State of Iowa, on the payment of dividends to its stockholders. 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) statutory gain from operations before net realized capital gains (losses) on investments for the preceding year. Subject to the availability of unassigned surplus at the time of such dividend, the Company can make a dividend payment of up to $178,225 without the prior approval of insurance regulatory authorities in 2014.

The Company paid an ordinary common stock dividend of $118,422 and $16,578 to its parent companies, CGC and Aegon, respectively, on December 26, 2013. The Company reported a contribution receivable from parent companies of $135,000 at December 31, 2013. Capital

Mon Life 2013 SEC 89

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

contributions of $118,422 and $16,578 were received from CGC and Aegon, respectively, on February 14, 2014. The Company paid a capital contribution of $368 to its subsidiary, Aegon Direct Marketing Services, Inc., on December 31, 2013.

The Company paid an ordinary common stock dividend of $394,560 and $55,440 to its parent companies, CGC and Aegon, respectively, on December 21, 2012. The Company paid a capital contribution of $368 to its subsidiary, Aegon Direct Marketing Services, Inc., on December 31, 2012.

On December 23, 2011, the Company paid a common stock dividend of $300,000 to its parent companies. Of this amount, $117,400 was an ordinary cash dividend and $182,600 was an extraordinary cash dividend. CGC received $263,100 and Aegon received $36,900.

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, 2013, the Company meets the minimum RBC requirements.

The Company has two classes of common stock, Class A and Class B. Each outstanding share of Class A is entitled to four votes for any matter submitted to a vote at a meeting of stockholders, whereas each outstanding share of Class B is entitled to on such vote.

On December 23, 2004, the Company received $117,168 from CGDC and $42,832 from Aegon, both affiliates, in exchange for surplus notes. Prior to the merger discussed in Note 1, CGDC dividended the Company’s surplus notes to its direct shareholders in the amount of $102,734 to CGC and $14,434 to Aegon. These notes are due 20 years from the date of issuance at an interest rate of 6% and are subordinate and junior in right of payment to all obligations and liabilities of the Company. In the event of liquidation of the Company, full payment of the surplus notes shall be made before the holders of common stock become entitled to any distribution of the remaining assets of the Company. The Company received approval from the Insurance Division, Department of Commerce, of the State of Iowa prior to paying quarterly interest payments.

Mon Life 2013 SEC 90

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Additional information related to the surplus notes at December 31, 2013 and 2012 is as follows:

For Year Ending	Balance Outstanding		Interest Paid Current Year		Cumulative Interest Paid		Accrued Interest
2013
CGC	$	102,734	$	6,164	$	61,695	$	514
AEGON		57,266		3,436		24,918		286
Total	$	160,000	$	9,600	$	86,613	$	800
2012
CGC	$	102,734	$	6,164	$	55,531	$	514
AEGON		57,266		3,436		21,483		286
Total	$	160,000	$	9,600	$	77,014	$	800

10. 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 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 or 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, 2013 and 2012, respectively, securities in the amount of $310,280 and $333,420 were on loan under securities lending agreements as part of this program. At December 31, 2013, the collateral the Company received from securities lending activities 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 has a fair value of $322,142 and $350,162 at December 31, 2013 and 2012, respectively.

Mon Life 2013 SEC 91

Monumental Life Insurance Company

Notes to Financial Statements —  Statutory Basis (continued)

(Dollars in Thousands)

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
Open	$	322,169
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Total		322,169
Securities received		—
Total collateral received	$	322,169

The Company receives primarily cash collateral in an amount in excess of the fair value of the securities lent. The Company reinvests the cash collateral into higher yielding securities than the securities which the Company has lent to other entities under the arrangement.

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

	Amortized Cost		Fair Value
Open	$	31,493	$	31,493
30 days or less		107,759		107,759
31 to 60 days		100,576		100,576
61 to 90 days		61,175		61,175
91 to 120 days		1,516		1,516
121 to 180 days		18,394		18,394
Greater than 3 years		1,296		1,229
Total		322,209		322,142
Securities received		—		—
Total collateral reinvested	$	322,209	$	322,142

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 $322,254 (fair value of $322,142) that are currently tradable securities that could be sold and used to pay for the $322,169 in collateral calls that could come due under a worst-case scenario.

11. Retirement and Compensation Plans

The Company’s employees participate in a qualified defined benefit pension plan sponsored by Aegon. The Company has no legal obligation for the plan. The Company recognizes pension

Mon Life 2013 SEC 92

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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. Pension expenses were $4,311, $4,350 and $5,134, for the years ended December 31, 2013, 2012 and 2011, respectively. The plan is subject to the reporting and disclosure requirements of the Employee Retirement 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 25% 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 Income Security Act of 1974. Expense related to this plan was $1,219, $1,276 and $1,682, for the years ended December 31, 2013, 2012 and 2011, 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 Service 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 each of the years ended December 31, 2013, 2012 and 2011 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 accrued or 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 with an intercompany cost sharing arrangement. The Company expensed $1,246, $1,285 and $1,307 related to these plans for the years ended December 31, 2013, 2012 and 2011, respectively.

Mon Life 2013 SEC 93

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

12. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

The Company is party to a common cost allocation service arrangement between Aegon companies, in which various affiliated companies may perform specified administrative functions in connection with the operation of the Company, in consideration of reimbursement of actual costs of services rendered. The Company is also a 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. Aegon USA Investment Management, LLC acts as a discretionary investment manager under an Investment Management Agreement with the Company. During 2013, 2012 and 2011, the Company paid $108,918, $100,736 and $47,194, respectively, for these services, which approximates their costs to the affiliates.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $61, $71 and $64 for the years ended December 31, 2013, 2012 and 2011, respectively.

At December 31, 2013 and 2012, the Company reported a net amount of $30,774 and $32,590 due to parent, subsidiary and affiliated companies, respectively. Terms of settlement require that these amounts be settled within 90 days. Receivables from and payables to affiliates bear interest at the thirty-day commercial paper rate. During 2013, 2012 and 2011, the Company paid net interest of $26, $40 and $111, respectively, to affiliates.

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 $471, $436 and $385 for these services during 2013, 2012 and 2011, respectively.

The Company had no short-term notes receivable at December 31, 2013 and 2012.

In prior years, the Company purchased life insurance policies covering the lives of certain employees of the Company from an affiliate. At December 31, 2013 and 2012, the cash surrender value of these policies was $79,733 and $77,229, respectively.

During 1998, TLIC issued life insurance policies to LIICA, covering the lives of certain LIICA employees. As discussed in Note 6—Reinsurance, the Company entered into an assumption reinsurance transaction with TLIC effective September 30, 2008, resulting in the Company assuming all liabilities of TLIC arising under these policies. Accordingly, the Company held

Mon Life 2013 SEC 94

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

aggregate reserves for policies and contracts related to these policies of $161,384 and $156,981 at December 31, 2013 and 2012, respectively.

13. Managing General Agents

The Company utilizes managing general agents and third-party administrators in its operation. Information regarding these entities for the year ended December 31, 2013 is as follows:

Name and Address of Managing General Agent or Third-Party Administrator	FEIN		Exclusive Contract		Types of Business Written	Types of Authority Granted		Total Direct Premiums Written/ Produced By
The Vanguard Group, Inc. 100 Vanguard Blvd. Malvern, PA 19355		23-1945930		No	Deferred and Income Annuities		C, B, P, U	$	522,058
Gallagher Bollinger, Inc. 101 JFK Parkway Short Hills, NJ 07078		22-0781130		No	Group A&H, Life		C, CA, P, U		91,233
All Other TPA Premiums									184
Total								$	613,475

C- Claims Payment

CA- Claims Adjustment

B- Binding Authority

P- Premium Collection

U- Underwriting

For years ended December 31, 2013, 2012 and 2011, the Company had $522,058, $422,874 and $345,517, respectively, of direct premiums written by The Vanguard Group, Inc. For years ended December 31, 2013, 2012 and 2011, the Company had $91,233, $93,480 and $104,706, respectively, of direct premiums written by Gallagher Bollinger, Inc. For years ended December 31, 2013, 2012 and 2011, the Company had $184, $146 and $576, respectively, of direct premiums written by all other managing general agents.

14. Commitments and Contingencies

The Company has issued synthetic GIC contracts to benefit plan sponsors on assets totaling $59,317,033 and $58,306,775 as of December 31, 2013 and 2012, respectively. A synthetic GIC is an off-balance sheet fee-based product sold primarily to tax qualified plans. The plan sponsor retains ownership and control of the related plan assets. The Company provides book value benefit responsiveness in the event that qualified plan benefit requests exceed plan cash flows. In

Mon Life 2013 SEC 95

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

certain contracts, the Company agrees to make advances to meet benefit payment needs and earns a market interest rate on these advances. The periodically adjusted contract-crediting rate is the means by which investment and benefit responsive experience is passed through to participants. In return for the book value benefit responsive guarantee, the Company receives a premium that varies based on such elements as benefit responsive exposure and contract size. The Company underwrites the plans for the possibility of having to make benefit payments and also must agree to the investment guidelines to ensure appropriate credit quality and cash flow. A contract reserve has been established for the possibility of unexpected benefit payments at below market interest rates of $127 and $1,612 at December 31, 2013 and 2012, respectively.

At December 31, 2013 and 2012, the Company has no mortgage loan commitments. At December 31, 2011, the Company had mortgage loan commitments of $4,160. The Company has contingent commitments of $42,822 and $46,975 at December 31, 2013 and 2012, respectively, to provide additional funding for various joint ventures, partnerships and limited liability companies, which includes LIHTC commitments of $2,032 and $7,640, respectively.

At December 31, 2013 and 2012, the Company has private placement commitments outstanding of $24,000 and $0, respectively.

At December 31, 2013 and 2012, no securities were acquired (sold) on a “to be announced” (TBA) basis.

The Company may pledge assets as collateral for derivative transactions. At December 31, 2013 and 2012, the Company has pledged invested assets with a carrying value of $15,185 and $14,443, respectively, and fair value of $15,853 and $17,892, respectively, in conjunction with these transactions.

Cash collateral received from derivative counterparties as well as the obligation to return the collateral is recorded on the Company’s balance sheet. The amount of cash collateral posted as of December 31, 2013 and 2012, respectively, was $149,006 and $213,917. In addition, securities in the amount of $206,338 and $224,372 were posted to the Company as of December 31, 2013 and 2012, respectively, which were not included on the balance sheet of the Company as the Company does not have the ability to sell or repledge the collateral. A portion of the cash collateral received by the Company has been reposted as collateral to other counterparties. The amount of cash collateral reposted was $0 and $2,580 as of December 31, 2013 and 2012, respectively.

The Company may pledge assets as collateral for transactions involving funding agreements. At December 31, 2013 and 2012, the Company has pledged invested assets with a carrying amount

Mon Life 2013 SEC 96

Monumental Life Insurance Company

Notes to Financial Statements —  Statutory Basis (continued)

(Dollars in Thousands)

of $14,780 and $245,905 respectively, and fair value of $14,564 and $276,565 respectively, in conjunction with these transactions.

The Company has provided back-stop guarantees for the performance of non-insurance affiliates or subsidiaries that are involved in the guaranteed sale of investments in low-income housing tax credit partnerships. The nature of the obligation is to provide third party investors with a minimum guaranteed annual and cumulative return on their contributed capital which is based on tax credits and tax losses generated from the low income housing tax credit partnerships. Guarantee payments arise if low income housing tax credit partnerships experience unexpected significant decreases in tax credits and tax losses or there are compliance issues with the partnerships. A significant portion of the remaining term of the guarantees is between 13-21 years. In accordance with SSAP No. 5R, the Company did not recognize a liability for the low income housing tax credit since the amount is considered immaterial to the Company’s financial results. The maximum potential amount of future payments (undiscounted) that the Company could be required to make under these guarantees was $173 and $245 at December 31, 2013 and 2012, respectively. No payments are required as of December 31, 2013. The current assessment of risk of making payments under these guarantees is remote.

The following table provides an aggregate compilation of guarantee obligations as of December 31, 2013 and 2012:

	December 31
	2013		2012
Aggregate maximum potential of future payments of all guarantees (undiscounted)	$	173	$	245
Current liability recognized in financial statements:
Noncontingent liabilities	$	—	$	—
Contingent liabilities	$	—	$	—
Ultimate financial statement impact if action required:
Other	$	173	$	245
Total impact if action required	$	173	$	245

The Company has issued funding agreements to FHLB, and the funds received are reported as deposit-type liabilities per SSAP No. 52, Deposit-Type Contracts. Total reserves are equal to the funding agreements balance. These funding agreements are used for investment spread management purposes and are subject to the same asset/liability management practices as other deposit-type business. All of the funding agreements issued to FHLB are classified in the general account as it is a general obligation of the Company. Collateral is required by FHLB to support repayment of the funding agreements. In addition, FHLB requires their common stock to be purchased.

Mon Life 2013 SEC 97

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2013		2012
FHLB stock purchased/owned as part of the agreement	$	26,000	$	27,800
Collateral pledged to the FHLB		557,317		1,086,622
Borrowing capacity currently available		897,824		560,000
Agreement General Account
Assets		1,742,275		1,690,805
Liabilities		1,300,000		1,300,130

The Company has provided guarantees for the obligations of noninsurance affiliates who have accepted assignments of structured settlement payment obligations from other insurers and purchase structured settlement insurance policies from subsidiaries of the Company that match those obligations. The guarantees made by the Company are specific to each structured settlement contract and vary in date and duration of the obligation. These are numerous and are backed by the reserves established by the Company to represent the present value of the future payments for those contracts. The statutory reserve established at December 31, 2012 for the total payout block is $2,383,901. As this reserve is already recorded on the balance sheet of the Company, there was no additional liability recorded due to the adoption of SSAP No. 5R.

The Company is a party to legal proceedings involving a variety of issues incidental to its business, including class actions. Lawsuits may be brought in nearly any federal or state court in the United 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.

In addition, the insurance industry has increasingly and routinely been the subject of litigation, investigations, regulatory activity and challenges by various governmental and enforcement authorities and policyholder advocate groups concerning certain practices. For example, unclaimed property administrators and state insurance regulators are performing unclaimed property examinations of the life insurance industry in the U.S., including the Company. These are in some cases multi-state examinations that include the collective action of many of the states. Additionally, some states are conducting separate examinations or instituting separate enforcement actions in regard to unclaimed property laws and related claims practices. As other insurers in the United States have done, the Company identified certain additional internal processes that it has implemented or is in the process of implementing. As of December 31, 2013 and 2012, the Company’s reserves related to this matter were $45,219 and $10,297, respectively.

Mon Life 2013 SEC 98

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Also, various major insurers in the U.S. have entered into settlements with insurance regulators recently regarding claims settlement practices. Certain examinations are still ongoing.

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 Associations. 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 $2,212 and $3,395 and an offsetting premium tax benefit of $847 and $1,347 at December 31, 2013 and 2012, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund expense (benefit) was $990, $(2,874) and $(8,063), at December 31, 2013, 2012 and 2011, respectively.

15. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

Municipal repurchase agreements require a minimum of 95% of the fair value of the securities transferred to be maintained as collateral. At December 31, 2013 and 2012, the Company had no recorded liabilities for municipal repurchase agreements.

The Company enters into dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received. At December 31, 2013 and 2012, the Company had dollar repurchase agreements outstanding in the amount of $52,930 and $5,825, respectively. The Company had an outstanding liability for borrowed money in the amount $53,453 and $6,222 at December 31, 2013 and 2012, respectively due to participation in dollar repurchase agreements which includes accrued interest.

Mon Life 2013 SEC 99

Monumental Life Insurance Company

Notes to Financial Statements —  Statutory Basis (continued)

(Dollars in Thousands)

The contractual maturities of dollar repurchase agreements are as follows:

	Fair Value
Open	$	53,266
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Total		53,266
Securities received		—
Total collateral received	$	53,266

In the course of the Company’s asset management, securities are sold and reacquired within 30 days of the sale date to enhance the Company’s yield on its investment portfolio. The details by NAIC designation 3 or below of securities sold during 2013 and reacquired within 30 days of the sale date are:

	Number of Transactions		Book Value of Securities Sold		Cost of Securities Repurchased		Gain/(Loss)
Bonds:
NAIC 6		1	$	36	$	72	$	3

16. 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 issued, 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). With the exception of the Affordable Care Act annual fee described below, the Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2013 through the date the financial statements are issued.

On January 1, 2014, the Company will be subject to an annual fee under section 9010 of the Affordable Care Act (ACA). This annual fee will be allocated to individual health insurers based on the ratio of the amount of the entity’s net premiums written during the preceding calendar year to the amount of health insurance for any U.S. health risk that is written during the preceding calendar year. A health insurance entity’s portion of the annual fee becomes payable once the entity provides health insurance for any U.S. health risk for each calendar year beginning on or after January 1, 2014. As of December 31, 2013, the Company has written health insurance

Mon Life 2013 SEC 100

Monumental Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

subject to the ACA assessment, expects to conduct health insurance business in 2014, and estimates their portion of the annual health insurance industry fee to be payable on September 30, 2014 to be $1,381. This assessment is not expected to have a material impact on risk based capital in 2014.

Mon Life 2013 SEC 101

Statutory-Basis

Financial Statement Schedules

Mon Life 2013 SEC

Monumental Life Insurance Company

Summary of Investments – Other Than Investments in Related Parties

(Dollars in Thousands)

December 31, 2013

Schedule I

Type of Investment	Cost (1)		Market Value		Amount at Which Shown in the Balance Sheet (2)
Fixed maturities
Bonds:
United States government and government agencies and authorities	$	702,488	$	698,416	$	702,757
States, municipalities and political subdivisions		365,585		397,439		365,585
Foreign governments		196,331		188,850		192,500
Hybrid Securities		654,097		582,931		654,097
All other corporate bonds		10,453,434		11,052,424		10,409,860
Redeemable preferred stocks		9,541		8,955		9,541
Total fixed maturities		12,381,476		12,929,015		12,334,340
Equity securities
Common stocks:
Industrial, miscellaneous and all other		44,500		45,669		45,669
Total equity securities		44,500		45,669		45,669
Mortgage loans on real estate		1,692,860				1,692,860
Real estate		7,285				7,285
Policy loans		470,549				470,549
Other long-term investments		336,388				336,388
Securities Lending		322,209				322,209
Cash, cash equivalents and short-term investments		558,923				558,923
Total investments	$	15,814,190			$	15,768,223

(1) Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual discounts.

(2) United States government and corporate bonds of $71,375 are held at fair value rather than amortized cost due to having an NAIC 6 rating.

Mon Life 2013 SEC 102

Monumental Life Insurance Company

Supplementary Insurance Information

(Dollars in Thousands)

December 31, 2013

Schedule III

	Future Policy Benefits and Expenses		Unearned Premiums		Policy and Contract Liabilities		Premium Revenue		Net Investment Income*		Benefits, Claims Losses and Settlement Expenses			Other Operating Expenses*
Year ended December 31, 2013
Individual life	$	5,234,408	$	—	$	105,825	$	400,933	$	285,191	$	249,758		$	301,105
Individual health		616,993		24,181		43,741		163,907		30,895		221,766			83,668
Group life and health		643,125		30,939		88,494		440,210		34,434		271,048			175,801
Annuity		3,425,826		—		68		701,427		378,809		1,128,645			(144,481	)
	$	9,920,352	$	55,120	$	238,128	$	1,706,477	$	729,329	$	1,871,217		$	416,093
Year ended December 31, 2012
Individual life	$	5,237,303	$	—	$	62,480	$	270,263	$	310,669	$	(133,512	)	$	274,367
Individual health		456,177		25,536		48,467		175,625		29,136		113,040			60,804
Group life and health		646,721		37,324		87,409		458,397		37,114		270,127			201,138
Annuity		3,629,809		—		127		617,432		445,395		929,457			44,166
	$	9,970,010	$	62,860	$	198,483	$	1,521,717	$	822,314	$	1,179,112		$	580,475
Year ended December 31, 2011
Individual life	$	5,530,556	$	—	$	52,163	$	208,344	$	306,133	$	245,580		$	260,215
Individual health		410,107		29,906		49,827		174,245		24,563		95,201			71,698
Group life and health		667,286		38,644		93,530		474,154		37,963		297,090			210,966
Annuity		3,840,063		—		41		546,479		470,382		832,759			111,786
	$	10,448,012	$	68,550	$	195,561	$	1,403,222	$	839,041	$	1,470,630		$	654,665

* Allocations of net investment income and other operating expenses are based on a number and assumptions of estimates, and the results would change if different methods were applied.

Mon Life 2013 SEC 103

Monumental Life Insurance Company

Reinsurance

(Dollars in Thousands)

December 31, 2013

Schedule IV

	Gross Amount		Ceded to Other Companies		Assumed From Other Companies		Net Amount		Percentage of Amount Assumed to Net
Year ended December 31, 2013
Life insurance in force	$	53,926,362	$	34,924,942	$	3,588,743		22,590,163		16	%
Premiums:
Individual life	$	786,161	$	396,054	$	10,826	$	400,933		3	%
Individual health		116,968		8,564		55,503		163,907		34	%
Group life and health		461,308		86,001		64,902		440,209		15	%
Annuity		703,936		28,317		25,808		701,427		4	%
	$	2,068,373	$	518,936	$	157,039	$	1,706,476		9	%
Year ended December 31, 2012
Life insurance in force	$	59,790,366	$	39,457,731	$	2,789,989	$	23,122,624		12	%
Premiums:
Individual life	$	678,988	$	421,821	$	13,096	$	270,263		5	%
Individual health		120,598		7,260		62,287		175,625		35	%
Group life and health		470,794		93,042		80,645		458,397		18	%
Annuity		597,505		31,514		51,441		617,432		8	%
	$	1,867,885	$	553,637	$	207,469	$	1,521,717		14	%
Year ended December 31, 2011
Life insurance in force	$	62,029,782	$	41,743,562	$	2,686,755	$	22,972,975		12	%
Premiums:
Individual life	$	657,650	$	456,986	$	7,679	$	208,343		4	%
Individual health		124,649		22,292		71,889		174,246		41	%
Group life and health		487,397		93,904		80,661		474,154		17	%
Annuity		524,970		31,195		52,704		546,479		10	%
	$	1,794,666	$	604,377	$	212,933	$	1,403,222		15	%

Mon Life 2013 SEC 104

WRL Series Life Account Audited Financials

FINANCIAL STATEMENTS

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Years Ended December 31, 2013 and 2012

S-1

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Financial Statements

Years Ended December 31, 2013 and 2012

Contents

Report of Independent Registered Public Accounting Firm	1
Financial Statements
Statements of Assets and Liabilities	S-4
Statements of Operations and Changes in Net Assets	S-6
Notes to Financial Statements	S-14

S-2

    Building a better working world

    Ernst & Young LLP Suite 3000

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Des Moines, IA 50309-2764

Tel: +1515 243 2727

Fax: +1515 362 7200

The Board of Directors and Contract Owners

Of WRL Series Life Account

Western Reserve Life Assurance Co. of Ohio

We have audited the accompanying statements of assets and liabilities of the subaccounts of Western Reserve Life Assurance Co. of Ohio WRL Series Life Account (the Separate Account), comprised of subaccounts as listed in the accompanying statements of assets and liabilities, as of December 31, 2013, and the related statements of operations and changes in net assets for the periods indicated thereon. These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Separate Account’s internal control over financial reporting. Our 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, 2013 by correspondence with the fund companies or their transfer agents. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the respective subaccounts of Western Reserve Life Assurance Co. of Ohio WRL Series Life Account, at December 31,2013, the results of their operations and changes in their net assets for the periods indicated thereon, in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

Des Moines, Iowa

April 28, 2014

A member firm of Ernst & Young Global Limited

S-3

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Assets and Liabilities

December 31, 2013

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
AllianceBernstein Balanced Wealth Strategy Class B Shares		119,934.123	$	1,459,833	$	1,637,101	$	(1	)	$	1,637,100		96,496	$	12.355811	$	17.665367
Fidelity® VIP Contrafund® Service Class 2		627,758.128		15,963,711		21,199,392		(2	)		21,199,390		1,061,778		14.020766		20.013995
Fidelity® VIP Equity-Income Service Class 2		502,007.111		10,858,400		11,485,923		(2	)		11,485,921		627,239		14.212334		18.356476
Fidelity® VIP Growth Opportunities Service Class 2		221,959.058		4,084,343		6,587,745		2			6,587,747		495,704		13.288362		15.835002
Fidelity® VIP Index 500 Service Class 2		106,895.651		15,190,999		19,728,661		(13	)		19,728,648		1,059,391		14.682625		19.469248
Franklin Templeton VIP Founding Funds Allocation Class 4 Shares		290,982.871		2,242,475		2,194,011		1			2,194,012		114,612		13.300390		19.940509
Access VP High Yield		196,878.416		5,741,053		5,908,321		(1	)		5,908,320		354,737		12.600722		17.510682
ProFund VP Asia 30		93,204.808		4,654,949		5,217,605		1			5,217,606		578,009		8.977163		10.202458
ProFund VP Basic Materials		70,225.572		3,362,756		3,893,306		24			3,893,330		382,073		10.027675		10.718093
ProFund VP Bull		144,056.708		4,912,118		5,456,868		(4	)		5,456,864		379,024		13.754578		14.521932
ProFund VP Consumer Services		59,443.245		2,723,150		3,394,209		—			3,394,209		174,922		17.217920		20.920899
ProFund VP Emerging Markets		219,992.582		5,635,491		5,253,423		(2,378	)		5,251,045		763,357		6.860433		8.314749
ProFund VP Europe 30		27,446.855		616,099		710,050		1			710,051		70,112		10.077904		12.020777
ProFund VP Falling U.S. Dollar		27,271.186		750,826		757,594		(1	)		757,593		91,312		7.874793		9.245773
ProFund VP Financials		127,207.539		3,020,217		3,559,267		46			3,559,313		384,821		9.192863		13.528156
ProFund VP International		113,881.020		2,552,908		2,733,144		35			2,733,179		297,995		9.143276		11.419377
ProFund VP Japan		133,371.978		2,242,376		2,520,730		(591	)		2,520,139		264,230		9.507379		14.326343
ProFund VP Mid-Cap		153,147.270		4,762,679		5,239,168		655			5,239,823		354,544		13.596900		15.530244
ProFund VP Money Market		15,946,965.500		15,946,966		15,946,966		4,349			15,951,315		1,587,303		9.239971		10.546944
ProFund VP NASDAQ-100		251,002.282		6,506,831		7,650,550		272			7,650,822		370,711		15.020042		20.904236
ProFund VP Oil & Gas		144,474.584		6,860,410		7,726,501		(1	)		7,726,500		716,936		9.683747		11.504333
ProFund VP Pharmaceuticals		132,395.605		3,947,831		4,526,606		7			4,526,613		272,535		16.555338		17.445073
ProFund VP Precious Metals		165,452.984		5,385,983		3,896,418		(7	)		3,896,411		888,589		4.370272		4.605538
ProFund VP Short Emerging Markets		32,514.186		412,505		421,709		6			421,715		83,885		4.550910		9.172235
ProFund VP Short International		33,111.148		519,975		425,809		3			425,812		91,408		4.243829		6.627263
ProFund VP Short NASDAQ-100		119,306.949		682,753		578,639		4			578,643		198,467		2.902010		5.366754
ProFund VP Short Small-Cap		255,367.835		1,300,552		1,095,528		(2	)		1,095,526		418,451		2.483097		5.264126
ProFund VP Small-Cap		225,961.612		8,181,855		8,995,532		1,649			8,997,181		575,020		14.225744		15.840460
ProFund VP Small-Cap Value		122,871.113		4,679,130		5,133,555		1,633			5,135,188		328,402		14.772168		16.481570
ProFund VP Telecommunications		76,640.985		678,002		672,141		1			672,142		54,824		12.198288		13.401226
ProFund VP U.S. Government Plus		130,783.996		2,931,010		2,316,185		12			2,316,197		185,209		11.998188		13.144663
ProFund VP UltraNASDAQ-100		169,137.261		6,489,645		8,712,260		—			8,712,260		524,419		16.442301		16.771435
ProFund VP UltraSmall-Cap		434,966.489		7,983,390		10,830,666		2			10,830,668		687,819		15.672330		18.182846
ProFund VP Utilities		59,714.208		2,104,928		2,094,774		(2	)		2,094,772		187,028		10.435155		12.928726
TA Aegon Active Asset Allocation - Conservative Initial Class		959,112.587		9,922,786		10,559,830		(4	)		10,559,826		949,238		10.943511		11.560433
TA Aegon Active Asset Allocation - Moderate Initial Class		253,610.661		2,744,268		2,939,348		1			2,939,349		255,835		11.292449		11.656557
TA Aegon Active Asset Allocation - Moderate Growth Initial Class		2,837,707.574		27,381,609		33,768,720		(166	)		33,768,554		2,854,987		11.622154		12.865116
TA Aegon High Yield Bond Initial Class		2,355,435.888		19,341,765		19,314,574		1,016			19,315,590		958,905		12.522507		20.433261
TA Aegon Money Market Initial Class		37,528,493.470		37,528,493		37,528,493		(29	)		37,528,464		2,061,971		9.316270		20.398106
TA Aegon U.S. Government Securities Initial Class		644,957.393		8,437,342		7,952,325		(677	)		7,951,648		548,374		10.958200		14.663209
TA AllianceBernstein Dynamic Allocation Initial Class		380,471.742		3,157,487		3,473,707		(14	)		3,473,693		211,633		10.648655		16.846779
TA Asset Allocation - Conservative Initial Class		3,270,800.577		32,676,153		36,960,047		(38	)		36,960,009		2,123,723		11.789846		17.538227

S-4

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Assets and Liabilities

December 31, 2013

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA Asset Allocation - Growth Initial Class		27,296,760.346	$	262,417,873	$	308,453,392	$	3,111		$	308,456,503		16,494,167	$	12.873074	$	19.073415
TA Asset Allocation - Moderate Initial Class		7,122,044.436		71,382,027		86,176,738		(39	)		86,176,699		4,718,623		12.177407		18.416756
TA Asset Allocation - Moderate Growth Initial Class		24,489,882.351		269,810,367		312,490,899		2,919			312,493,818		16,718,753		12.571518		18.790500
TA Barrow Hanley Dividend Focused Initial Class		3,613,877.643		50,835,306		69,350,312		144			69,350,456		2,340,738		13.051362		32.660389
TA BlackRock Global Allocation Initial Class		525,994.992		5,036,613		5,486,128		2			5,486,130		475,997		11.328843		11.687343
TA BlackRock Tactical Allocation Initial Class		459,212.315		4,740,316		5,010,006		3			5,010,009		422,236		11.663657		12.032649
TA BNP Paribas Large Cap Growth Initial Class		302,059.738		5,316,438		6,959,456		(6	)		6,959,450		300,744		14.428149		24.096790
TA Clarion Global Real Estate Securities Initial Class		4,075,407.986		47,462,447		47,560,011		(103	)		47,559,908		1,637,406		10.986776		31.425633
TA Hanlon Income Initial Class		2,299,305.940		25,658,118		25,637,261		(148	)		25,637,113		2,168,193		10.927524		12.292544
TA International Moderate Growth Initial Class		1,187,503.576		9,919,081		11,863,161		(458	)		11,862,703		1,035,656		11.024814		12.309103
TA Janus Balanced Initial Class		759,962.394		8,054,699		9,621,124		(71	)		9,621,053		776,819		11.456573		12.852511
TA Jennison Growth Initial Class		1,548,826.511		13,438,357		16,587,932		944			16,588,876		997,359		15.131767		17.172210
TA JPMorgan Core Bond Initial Class		3,374,812.019		42,779,129		42,590,128		55			42,590,183		1,189,246		10.950996		44.008979
TA JPMorgan Enhanced Index Initial Class		398,090.513		5,437,411		7,002,412		6			7,002,418		363,316		14.808199		19.916705
TA JPMorgan Mid Cap Value Initial Class		400,053.591		5,383,104		8,409,126		6			8,409,132		297,704		15.470946		28.390027
TA JPMorgan Tactical Allocation Initial Class		3,826,358.202		51,185,970		50,814,037		(66	)		50,813,971		1,836,341		10.218215		36.047329
TA MFS International Equity Initial Class		5,066,375.747		36,636,346		44,178,797		(53	)		44,178,744		2,542,705		11.892127		17.849759
TA Morgan Stanley Capital Growth Initial Class		2,774,166.053		31,712,605		41,973,132		(245	)		41,972,887		1,614,954		15.367704		26.415253
TA Morgan Stanley Mid-Cap Growth Initial Class		10,562,229.075		267,847,412		400,730,971		(5,247	)		400,725,724		6,801,694		13.605045		73.383598
TA Multi-Managed Balanced Initial Class		9,034,369.585		103,085,116		122,596,395		(487	)		122,595,908		5,788,779		13.152086		21.225720
TA PIMCO Tactical - Balanced Initial Class		623,153.044		6,716,367		7,222,344		(1	)		7,222,343		619,030		10.756257		12.125705
TA PIMCO Tactical - Conservative Initial Class		899,022.997		9,675,498		9,862,282		148			9,862,430		892,693		9.964341		11.487913
TA PIMCO Tactical - Growth Initial Class		1,197,589.376		12,939,141		13,712,398		76			13,712,474		1,186,871		10.142407		12.013286
TA PIMCO Total Return Initial Class		2,393,815.772		28,545,739		27,193,747		2			27,193,749		1,680,310		11.014671		16.405073
TA Systematic Small/Mid Cap Value Initial Class		5,603,462.449		108,919,284		132,633,956		575			132,634,531		4,447,355		14.460043		30.555964
TA T. Rowe Price Small Cap Initial Class		3,878,867.021		43,187,970		55,235,066		(524	)		55,234,542		2,153,737		15.786342		26.762648
TA Vanguard ETF - Balanced Initial Class		73,646.529		813,299		870,502		(1	)		870,501		69,037		12.023765		13.230608
TA Vanguard ETF - Growth Initial Class		311,555.507		3,206,357		3,470,728		5			3,470,733		269,355		12.740878		13.501839
TA WMC Diversified Growth Initial Class		27,545,189.146		658,218,427		877,038,822		(6,046	)		877,032,776		42,951,581		13.197108		20.523353

S-5

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Operations and Change in Net Assets

Year Ended December 31, 2012, Except as Noted

			Investment Income		Investment Expense							Increase (Decrease) in Net Assets from Operations
Subaccount	Net Assets as of January 1, 2012		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			Capital Gain Distributions		Realized Gain (Loss) on Investments			Net Realized Capital Gains (Losses) on Investments			Net Change in Unrealized Appreciation (Depreciation)			Net Gain (Loss) on Investment			Net Increase (Decrease) in Net Assets Resulting from Operations			Increase (Decrease) in Net Assets from Contract Transactions			Total Increase (Decrease) in Net Assets			Net Assets as of December 31, 2012
AllianceBernstein Balanced Wealth Strategy Class B Shares	$	647,958	$	14,996	$	6,674	$	8,322		$	—	$	20,671		$	20,671		$	58,756		$	79,427		$	87,749		$	188,644		$	276,393		$	924,351
Fidelity® VIP Contrafund® Service Class 2		15,287,373		185,584		148,975		36,609			—		70,872			70,872			2,164,818			2,235,690			2,272,299			(911,276	)		1,361,023			16,648,396
Fidelity® VIP Equity-Income Service Class 2		7,793,281		243,512		74,381		169,131			535,153		(158,049	)		377,104			661,774			1,038,878			1,208,009			(439,164	)		768,845			8,562,126
Fidelity® VIP Growth Opportunities Service Class 2		3,926,217		7,393		43,353		(35,960	)		—		21,935			21,935			698,001			719,936			683,976			208,206			892,182			4,818,399
Fidelity® VIP Index 500 Service Class 2		9,370,215		231,118		91,769		139,349			135,160		271,893			407,053			854,941			1,261,994			1,401,343			1,772,160			3,173,503			12,543,718
Franklin Templeton VIP Founding Funds Allocation Class 4 Shares		669,001		22,583		7,947		14,636			—		13,634			13,634			87,730			101,364			116,000			265,328			381,328			1,050,329
Access VP High Yield		2,258,889		125,872		24,252		101,620			—		43,444			43,444			186,986			230,430			332,050			1,037,149			1,369,199			3,628,088
ProFund VP Asia 30		3,927,613		—		38,143		(38,143	)		—		(485,676	)		(485,676	)		898,915			413,239			375,096			(10,181	)		364,915			4,292,528
ProFund VP Basic Materials		4,487,958		14,250		39,058		(24,808	)		—		(142,088	)		(142,088	)		410,776			268,688			243,880			(432,450	)		(188,570	)		4,299,388
ProFund VP Bull		2,419,318		—		23,063		(23,063	)		—		295,744			295,744			(28,252	)		267,492			244,429			(136,156	)		108,273			2,527,591
ProFund VP Consumer Services		1,868,275		—		13,166		(13,166	)		4,562		233,284			237,846			42,707			280,553			267,387			(488,732	)		(221,345	)		1,646,930
ProFund VP Emerging Markets		5,637,656		67,524		56,818		10,706			—		(766,440	)		(766,440	)		1,014,391			247,951			258,657			3,264,163			3,522,820			9,160,476
ProFund VP Europe 30		322,844		10,425		3,775		6,650			—		9,334			9,334			93,102			102,436			109,086			1,476,736			1,585,822			1,908,666
ProFund VP Falling U.S. Dollar		612,079		—		4,350		(4,350	)		—		(33,177	)		(33,177	)		27,753			(5,424	)		(9,774	)		(20,748	)		(30,522	)		581,557
ProFund VP Financials		1,628,344		3,102		18,260		(15,158	)		—		(39,058	)		(39,058	)		345,050			305,992			290,834			138,400			429,234			2,057,578
ProFund VP International		1,434,875		—		13,412		(13,412	)		—		(127,758	)		(127,758	)		355,345			227,587			214,175			465,737			679,912			2,114,787
ProFund VP Japan		1,222,963		—		3,162		(3,162	)		—		(86,108	)		(86,108	)		70,723			(15,385	)		(18,547	)		(973,126	)		(991,673	)		231,290
ProFund VP Mid-Cap		2,408,185		—		35,901		(35,901	)		—		446,912			446,912			214,357			661,269			625,368			1,701,172			2,326,540			4,734,725
ProFund VP Money Market		21,461,631		3,488		151,097		(147,609	)		—		—			—			—			—			(147,609	)		(4,438,881	)		(4,586,490	)		16,875,141
ProFund VP NASDAQ-100		8,536,019		—		82,829		(82,829	)		—		1,900,564			1,900,564			14,423			1,914,987			1,832,158			(4,256,364	)		(2,424,206	)		6,111,813
ProFund VP Oil & Gas		6,560,703		7,807		60,387		(52,580	)		567,477		(291,208	)		276,269			(191,974	)		84,295			31,715			343,382			375,097			6,935,800

S-6

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Operations and Change in Net Assets

Year Ended December 31, 2012, Except as Noted

			Investment Income		Investment Expense							Increase (Decrease) in Net Assets from Operations
Subaccount	Net Assets as of January 1, 2012		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			Capital Gain Distributions		Realized Gain (Loss) on Investments			Net Realized Capital Gains (Losses) on Investments			Net Change in Unrealized Appreciation (Depreciation)			Net Gain (Loss) on Investment			Net Increase (Decrease) in Net Assets Resulting from Operations			Increase (Decrease) in Net Assets from Contract Transactions			Total Increase (Decrease) in Net Assets			Net Assets as of December 31, 2012
ProFund VP Pharmaceuticals	$	3,002,517	$	32,378	$	23,043	$	9,335		$	—	$	274,518		$	274,518		$	(38,114	)	$	236,404		$	245,739		$	(660,602	)	$	(414,863	)	$	2,587,654
ProFund VP Precious Metals		8,366,429		—		69,579		(69,579	)		—		(711,592	)		(711,592	)		(589,571	)		(1,301,163	)		(1,370,742	)		457,093			(913,649	)		7,452,780
ProFund VP Short Emerging Markets		588,647		—		4,314		(4,314	)		—		(40,823	)		(40,823	)		(38,943	)		(79,766	)		(84,080	)		(85,466	)		(169,546	)		419,101
ProFund VP Short International		664,257		—		5,679		(5,679	)		23,144		(84,977	)		(61,833	)		(74,010	)		(135,843	)		(141,522	)		20,927			(120,595	)		543,662
ProFund VP Short NASDAQ-100		964,827		—		8,604		(8,604	)		—		(249,254	)		(249,254	)		13,731			(235,523	)		(244,127	)		197,703			(46,424	)		918,403
ProFund VP Short Small-Cap		1,119,129		—		8,369		(8,369	)		—		(187,309	)		(187,309	)		791			(186,518	)		(194,887	)		(181,571	)		(376,458	)		742,671
ProFund VP Small-Cap		1,729,449		—		38,541		(38,541	)		100,003		(11,188	)		88,815			156,522			245,337			206,796			4,017,443			4,224,239			5,953,688
ProFund VP Small-Cap Value		584,329		—		28,703		(28,703	)		—		52,706			52,706			104,561			157,267			128,564			3,884,767			4,013,331			4,597,660
ProFund VP Telecommunications		243,416		16,249		8,700		7,549			—		148,543			148,543			1,998			150,541			158,090			641,501			799,591			1,043,007
ProFund VP U.S. Government Plus		5,859,541		—		58,593		(58,593	)		1,052,718		188,817			1,241,535			(1,253,036	)		(11,501	)		(70,094	)		2,234,257			2,164,163			8,023,704
ProFund VP UltraNASDAQ-100(1)		—		—		15,739		(15,739	)		—		325,483			325,483			(107,712	)		217,771			202,032			2,103,999			2,306,031			2,306,031
ProFund VP UltraSmall-Cap		5,757,669		—		46,135		(46,135	)		—		809,063			809,063			106,390			915,453			869,318			(2,437,805	)		(1,568,487	)		4,189,182
ProFund VP Utilities		3,795,806		66,490		26,222		40,268			—		182,944			182,944			(282,515	)		(99,571	)		(59,303	)		(1,490,137	)		(1,549,440	)		2,246,366
TA AEGON Active Asset Allocation - Conservative Initial Class		4,719,304		27,004		60,699		(33,695	)		34,819		69,207			104,026			326,715			430,741			397,046			2,673,778			3,070,824			7,790,128
TA AEGON Active Asset Allocation - Moderate Initial Class		852,713		2,130		11,286		(9,156	)		1,505		36,551			38,056			64,020			102,076			92,920			777,067			869,987			1,722,700
TA AEGON Active Asset Allocation - Moderate Growth Initial Class		28,522,037		193,754		243,569		(49,815	)		—		241,099			241,099			2,651,384			2,892,483			2,842,668			(2,023,280	)		819,388			29,341,425
TA AEGON High Yield Bond Initial Class		15,387,057		1,336,224		181,310		1,154,914			—		271,332			271,332			1,554,227			1,825,559			2,980,473			5,230,950			8,211,423			23,598,480
TA AEGON Money Market Initial Class		49,515,480		2,305		396,747		(394,442	)		—		—			—			—			—			(394,442	)		(7,718,192	)		(8,112,634	)		41,402,846
TA AEGON U.S. Government Securities Initial Class		12,040,949		193,388		96,096		97,292			281,268		76,754			358,022			(44,084	)		313,938			411,230			(652,160	)		(240,930	)		11,800,019
TA AllianceBernstein Dynamic Allocation Initial Class		3,015,977		27,665		28,309		(644	)		—		(8,403	)		(8,403	)		171,938			163,535			162,891			218,171			381,062			3,397,039
TA Asset Allocation - Conservative Initial Class		40,133,908		1,332,645		371,237		961,408			—		647,358			647,358			1,058,224			1,705,582			2,666,990			(328,955	)		2,338,035			42,471,943

S-7

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Operations and Change in Net Assets

Year Ended December 31, 2012, Except as Noted

			Investment Income		Investment Expense							Increase (Decrease) in Net Assets from Operations
Subaccount	Net Assets as of January 1, 2012		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			Capital Gain Distributions		Realized Gain (Loss) on Investments			Net Realized Capital Gains (Losses) on Investments			Net Change in Unrealized Appreciation (Depreciation)			Net Gain (Loss) on Investment			Net Increase (Decrease) in Net Assets Resulting from Operations		Increase (Decrease) in Net Assets from Contract Transactions			Total Increase (Decrease) in Net Assets			Net Assets as of December 31, 2012
TA Asset Allocation - Growth Initial Class	$	238,137,274	$	3,389,090	$	2,171,012	$	1,218,078		$	—	$	(7,437,969	)	$	(7,437,969	)	$	33,604,600		$	26,166,631		$	27,384,709	$	(9,527,913	)	$	17,856,796		$	255,994,070
TA Asset Allocation - Moderate Initial Class		82,588,491		2,168,740		716,680		1,452,060			—		(2,155,334	)		(2,155,334	)		7,427,760			5,272,426			6,724,486		(8,264,432	)		(1,539,946	)		81,048,545
TA Asset Allocation - Moderate Growth Initial Class		271,487,804		6,960,136		2,408,621		4,551,515			—		(2,322,326	)		(2,322,326	)		23,552,020			21,229,694			25,781,209		(16,773,704	)		9,007,505			280,495,309
TA Barrow Hanley Dividend Focused Initial Class		58,346,888		1,073,118		527,887		545,231			—		(674,661	)		(674,661	)		6,379,435			5,704,774			6,250,005		(4,107,865	)		2,142,140			60,489,028
TA BlackRock Global Allocation Initial Class		1,832,732		116,028		24,039		91,989			80,419		(13,188	)		67,231			71,956			139,187			231,176		1,646,857			1,878,033			3,710,765
TA BlackRock Tactical Allocation Initial Class		1,074,808		59,050		19,534		39,516			89,344		23,094			112,438			21,399			133,837			173,353		2,083,782			2,257,135			3,331,943
TA BNP Paribas Large Cap Growth Initial Class		3,339,827		32,659		34,091		(1,432	)		—		184,586			184,586			352,333			536,919			535,487		177,107			712,594			4,052,421
TA Clarion Global Real Estate Securities Initial Class		39,627,251		1,592,380		393,540		1,198,840			—		(5,590,112	)		(5,590,112	)		13,817,409			8,227,297			9,426,137		(650,848	)		8,775,289			48,402,540
TA Hanlon Income Initial Class		30,165,370		708,052		251,752		456,300			—		137,444			137,444			269,769			407,213			863,513		(1,135,338	)		(271,825	)		29,893,545
TA International Moderate Growth Initial Class		10,957,032		311,328		88,450		222,878			—		(485,045	)		(485,045	)		1,422,071			937,026			1,159,904		(1,283,515	)		(123,611	)		10,833,421
TA Janus Balanced Initial Class		8,735,617		—		74,937		(74,937	)		—		9,813			9,813			1,073,332			1,083,145			1,008,208		(685,417	)		322,791			9,058,408
TA Jennison Growth Initial Class		15,313,587		11,700		135,479		(123,779	)		1,193,687		1,521,713			2,715,400			91,262			2,806,662			2,682,883		(4,792,434	)		(2,109,551	)		13,204,036
TA JPMorgan Core Bond Initial Class		55,847,749		1,462,219		503,457		958,762			22,457		900,560			923,017			379,747			1,302,764			2,261,526		(3,147,971	)		(886,445	)		54,961,304
TA JPMorgan Enhanced Index Initial Class		4,287,113		43,178		36,028		7,150			—		394,458			394,458			161,970			556,428			563,578		(235,514	)		328,064			4,615,177
TA JPMorgan Mid Cap Value Initial Class		6,976,202		53,687		65,220		(11,533	)		—		120,803			120,803			1,172,138			1,292,941			1,281,408		(974,501	)		306,907			7,283,109
TA JPMorgan Tactical Allocation Initial Class		58,567,573		347,109		510,278		(163,169	)		—		(2,326,995	)		(2,326,995	)		6,283,315			3,956,320			3,793,151		(3,857,180	)		(64,029	)		58,503,544
TA MFS International Equity Initial Class		35,715,997		623,763		336,094		287,669			—		(2,093,916	)		(2,093,916	)		8,973,054			6,879,138			7,166,807		(1,947,575	)		5,219,232			40,935,229
TA Morgan Stanley Capital Growth Initial Class		28,217,193		—		269,468		(269,468	)		5,482,103		(507,320	)		4,974,783			(716,995	)		4,257,788			3,988,320		(3,131,500	)		856,820			29,074,013
TA Morgan Stanley Mid-Cap Growth Initial Class		320,319,419		—		2,906,653		(2,906,653	)		16,069,972		6,519,362			22,589,334			5,156,982			27,746,316			24,839,663		(36,161,019	)		(11,321,356	)		308,998,063
TA Multi-Managed Balanced Initial Class		109,394,054		1,842,586		1,014,790		827,796			17,061,517		1,701,777			18,763,294			(7,297,732	)		11,465,562			12,293,358		(8,589,665	)		3,703,693			113,097,747
TA PIMCO Tactical - Balanced Initial Class		9,877,534		145,489		61,551		83,938			—		(251,066	)		(251,066	)		208,259			(42,807	)		41,131		(2,699,835	)		(2,658,704	)		7,218,830

S-8

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Operations and Change in Net Assets

Year Ended December 31, 2012, Except as Noted

			Investment Income		Investment Expense							Increase (Decrease) in Net Assets from Operations
Subaccount	Net Assets as of January 1, 2012		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			Capital Gain Distributions		Realized Gain (Loss) on Investments			Net Realized Capital Gains (Losses) on Investments			Net Change in Unrealized Appreciation (Depreciation)			Net Gain (Loss) on Investment		Net Increase (Decrease) in Net Assets Resulting from Operations		Increase (Decrease) in Net Assets from Contract Transactions			Total Increase (Decrease) in Net Assets			Net Assets as of December 31, 2012
TA PIMCO Tactical - Conservative Initial Class	$	9,346,564	$	146,415	$	82,669	$	63,746		$	—	$	(89,616	)	$	(89,616	)	$	102,304		$	12,688	$	76,434	$	391,628		$	468,062		$	9,814,626
TA PIMCO Tactical - Growth Initial Class		12,936,910		99,237		108,992		(9,755	)		—		(163,709	)		(163,709	)		188,345			24,636		14,881		(524,796	)		(509,915	)		12,426,995
TA PIMCO Total Return Initial Class		33,381,877		1,438,403		299,499		1,138,904			—		570,687			570,687			436,358			1,007,045		2,145,949		1,689,184			3,835,133			37,217,010
TA Systematic Small/Mid Cap Value Initial Class		35,587,598		198,885		343,170		(144,285	)		9,626,975		2,719,306			12,346,281			(6,615,996	)		5,730,285		5,586,000		(164,792	)		5,421,208			41,008,806
TA T. Rowe Price Small Cap Initial Class		26,401,828		—		282,450		(282,450	)		2,569,391		4,123,894			6,693,285			(2,758,495	)		3,934,790		3,652,340		(1,495,714	)		2,156,626			28,558,454
TA Vanguard ETF - Balanced Initial Class		392,883		6,448		4,233		2,215			11,949		2,303			14,252			19,517			33,769		35,984		53,373			89,357			482,240
TA Vanguard ETF - Growth Initial Class		1,996,047		23,795		13,749		10,046			107,992		70,950			178,942			621			179,563		189,609		(780,545	)		(590,936	)		1,405,111
TA WMC Diversified Growth Initial Class		709,945,091		2,333,333		6,775,768		(4,442,435	)		—		(4,566,559	)		(4,566,559	)		94,743,039			90,176,480		85,734,045		(68,855,531	)		16,878,514			726,823,605

S-9

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Operations and Change in Net Assets

Year Ended December 31, 2013

			Investment Income		Investment Expense							Increase (Decrease) in Net Assets from Operations
Subaccount	Net Assets as of January 1, 2012		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			Capital Gain Distributions		Realized Gain (Loss) on Investments			Net Realized Capital Gains (Losses) on Investments			Net Change in Unrealized Appreciation (Depreciation)			Net Gain (Loss) on Investment			Net Increase (Decrease) in Net Assets Resulting from Operations			Increase (Decrease) in Net Assets from Contract Transactions			Total Increase (Decrease) in Net Assets			Net Assets as of December 31, 2012
AllianceBernstein Balanced Wealth Strategy Class B Shares	$	924,351	$	30,499	$	10,841	$	19,658		$	—	$	46,747		$	46,747		$	116,427		$	163,174		$	182,832		$	529,917		$	712,749		$	1,637,100
Fidelity® VIP Contrafund® Service Class 2		16,648,396		159,832		168,866		(9,034	)		5,597		(25,222	)		(19,625	)		4,965,574			4,945,949			4,936,915			(385,921	)		4,550,994			21,199,390
Fidelity® VIP Equity-Income Service Class 2		8,562,126		244,659		90,627		154,032			717,634		(146,380	)		571,254			1,604,255			2,175,509			2,329,541			594,254			2,923,795			11,485,921
Fidelity® VIP Growth Opportunities Service Class 2		4,818,399		2,655		49,686		(47,031	)		3,087		517,796			520,883			1,241,379			1,762,262			1,715,231			54,117			1,769,348			6,587,747
Fidelity® VIP Index 500 Service Class 2		12,543,718		298,163		135,654		162,509			151,119		917,402			1,068,521			3,048,361			4,116,882			4,279,391			2,905,539			7,184,930			19,728,648
Franklin Templeton VIP Founding Funds Allocation Class 4 Shares		1,050,329		180,757		15,026		165,731			299,325		(6,669	)		292,656			(130,476	)		162,180			327,911			815,772			1,143,683			2,194,012
Access VP High Yield		3,628,088		110,197		36,617		73,580			104,662		231,279			335,941			(15,946	)		319,995			393,575			1,886,657			2,280,232			5,908,320
ProFund VP Asia 30		4,292,528		2,488		38,564		(36,076	)		—		(203,334	)		(203,334	)		778,182			574,848			538,772			386,306			925,078			5,217,606
ProFund VP Basic Materials		4,299,388		36,218		33,121		3,097			—		(176,258	)		(176,258	)		730,330			554,072			557,169			(963,227	)		(406,058	)		3,893,330
ProFund VP Bull		2,527,591		—		39,705		(39,705	)		62,717		457,065			519,782			512,332			1,032,114			992,409			1,936,864			2,929,273			5,456,864
ProFund VP Consumer Services		1,646,930		5,881		21,936		(16,055	)		6,665		221,442			228,107			593,987			822,094			806,039			941,240			1,747,279			3,394,209
ProFund VP Emerging Markets		9,160,476		47,497		66,451		(18,954	)		—		(549,094	)		(549,094	)		(568,676	)		(1,117,770	)		(1,136,724	)		(2,772,707	)		(3,909,431	)		5,251,045
ProFund VP Europe 30		1,908,666		6,637		15,763		(9,126	)		—		(4,539	)		(4,539	)		4,228			(311	)		(9,437	)		(1,189,178	)		(1,198,615	)		710,051
ProFund VP Falling U.S. Dollar		581,557		—		4,463		(4,463	)		—		(30,386	)		(30,386	)		24,129			(6,257	)		(10,720	)		186,756			176,036			757,593
ProFund VP Financials		2,057,578		9,963		26,009		(16,046	)		—		401,106			401,106			367,699			768,805			752,759			748,976			1,501,735			3,559,313
ProFund VP International		2,114,787		—		20,982		(20,982	)		178,255		69,781			248,036			7,223			255,259			234,277			384,115			618,392			2,733,179
ProFund VP Japan		231,290		—		10,679		(10,679	)		—		160,664			160,664			254,853			415,517			404,838			1,884,011			2,288,849			2,520,139
ProFund VP Mid-Cap		4,734,725		—		63,590		(63,590	)		456,491		1,031,542			1,488,033			318,073			1,806,106			1,742,516			(1,237,418	)		505,098			5,239,823
ProFund VP Money Market		16,875,141		3,350		141,473		(138,123	)		—		—			—			—			—			(138,123	)		(785,703	)		(923,826	)		15,951,315
ProFund VP NASDAQ-100		6,111,813		—		59,167		(59,167	)		—		856,241			856,241			1,296,775			2,153,016			2,093,849			(554,840	)		1,539,009			7,650,822
ProFund VP Oil & Gas		6,935,800		30,673		63,568		(32,895	)		272,133		(89,559	)		182,574			1,357,598			1,540,172			1,507,277			(716,577	)		790,700			7,726,500

S-10

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Operations and Change in Net Assets

Year Ended December 31, 2013

			Investment Income		Investment Expense							Increase (Decrease) in Net Assets from Operations
Subaccount	Net Assets as of January 1, 2012		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			Capital Gain Distributions		Realized Gain (Loss) on Investments			Net Realized Capital Gains (Losses) on Investments			Net Change in Unrealized Appreciation (Depreciation)			Net Gain (Loss) on Investment			Net Increase (Decrease) in Net Assets Resulting from Operations			Increase (Decrease) in Net Assets from Contract Transactions			Total Increase (Decrease) in Net Assets			Net Assets as of December 31, 2012
ProFund VP Pharmaceuticals	$	2,587,654	$	55,745	$	30,752	$	24,993		$	151,238	$	235,990		$	387,228		$	456,071		$	843,299		$	868,292		$	1,070,667		$	1,938,959		$	4,526,613
ProFund VP Precious Metals		7,452,780		—		42,153		(42,153	)		—		(2,893,758	)		(2,893,758	)		198,582			(2,695,176	)		(2,737,329	)		(819,040	)		(3,556,369	)		3,896,411
ProFund VP Short Emerging Markets		419,101		—		4,037		(4,037	)		—		(61,354	)		(61,354	)		52,413			(8,941	)		(12,978	)		15,592			2,614			421,715
ProFund VP Short International		543,662		—		4,384		(4,384	)		—		(110,708	)		(110,708	)		(6,017	)		(116,725	)		(121,109	)		3,259			(117,850	)		425,812
ProFund VP Short NASDAQ-100		918,403		—		7,304		(7,304	)		—		(180,959	)		(180,959	)		(96,473	)		(277,432	)		(284,736	)		(55,024	)		(339,760	)		578,643
ProFund VP Short Small-Cap		742,671		—		10,723		(10,723	)		—		(280,558	)		(280,558	)		(167,608	)		(448,166	)		(458,889	)		811,744			352,855			1,095,526
ProFund VP Small-Cap		5,953,688		—		49,293		(49,293	)		119,306		964,036			1,083,342			596,909			1,680,251			1,630,958			1,412,535			3,043,493			8,997,181
ProFund VP Small-Cap Value		4,597,660		12,963		31,197		(18,234	)		—		868,698			868,698			352,581			1,221,279			1,203,045			(665,517	)		537,528			5,135,188
ProFund VP Telecommunications		1,043,007		27,332		7,982		19,350			41,378		20,403			61,781			(1,728	)		60,053			79,403			(450,268	)		(370,865	)		672,142
ProFund VP U.S. Government Plus		8,023,704		7,105		30,590		(23,485	)		197,838		(684,449	)		(486,611	)		(406,400	)		(893,011	)		(916,496	)		(4,791,011	)		(5,707,507	)		2,316,197
ProFund VP UltraNASDAQ-100		2,306,031		—		47,303		(47,303	)		—		626,444			626,444			2,330,327			2,956,771			2,909,468			3,496,761			6,406,229			8,712,260
ProFund VP UltraSmall-Cap		4,189,182		—		58,402		(58,402	)		—		1,788,178			1,788,178			2,310,720			4,098,898			4,040,496			2,600,990			6,641,486			10,830,668
ProFund VP Utilities		2,246,366		63,787		21,225		42,562			—		119,785			119,785			40,608			160,393			202,955			(354,549	)		(151,594	)		2,094,772
TA Aegon Active Asset Allocation - Conservative Initial Class		7,790,128		131,131		90,892		40,239			131,587		185,731			317,318			261,693			579,011			619,250			2,150,448			2,769,698			10,559,826
TA Aegon Active Asset Allocation - Moderate Initial Class		1,722,700		13,290		18,364		(5,074	)		12,608		79,309			91,917			120,186			212,103			207,029			1,009,620			1,216,649			2,939,349
TA Aegon Active Asset Allocation - Moderate Growth Initial Class		29,341,425		296,072		265,066		31,006			—		613,646			613,646			4,034,530			4,648,176			4,679,182			(252,053	)		4,427,129			33,768,554
TA Aegon High Yield Bond Initial Class		23,598,480		1,158,162		183,565		974,597			—		1,532,398			1,532,398			(1,475,867	)		56,531			1,031,128			(5,314,018	)		(4,282,890	)		19,315,590
TA Aegon Money Market Initial Class		41,402,846		2,020		345,856		(343,836	)		—		—			—			—			—			(343,836	)		(3,530,546	)		(3,874,382	)		37,528,464
TA Aegon U.S. Government Securities Initial Class		11,800,019		197,926		78,367		119,559			185,209		(40,271	)		144,938			(539,655	)		(394,717	)		(275,158	)		(3,573,213	)		(3,848,371	)		7,951,648
TA AllianceBernstein Dynamic Allocation Initial Class		3,397,039		39,899		29,992		9,907			—		153,145			153,145			48,069			201,214			211,121			(134,467	)		76,654			3,473,693
TA Asset Allocation - Conservative Initial Class		42,471,943		1,183,426		337,016		846,410			58,378		2,760,001			2,818,379			(603,717	)		2,214,662			3,061,072			(8,573,006	)		(5,511,934	)		36,960,009

S-11

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Operations and Change in Net Assets

Year Ended December 31, 2013

			Investment Income		Investment Expense							Increase (Decrease) in Net Assets from Operations
Subaccount	Net Assets as of January 1, 2012		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			Capital Gain Distributions		Realized Gain (Loss) on Investments			Net Realized Capital Gains (Losses) on Investments			Net Change in Unrealized Appreciation (Depreciation)			Net Gain (Loss) on Investment			Net Increase (Decrease) in Net Assets Resulting from Operations			Increase (Decrease) in Net Assets from Contract Transactions			Total Increase (Decrease) in Net Assets			Net Assets as of December 31, 2012
TA Asset Allocation - Growth Initial Class	$	255,994,070	$	3,427,804	$	2,394,684	$	1,033,120		$	—	$	(4,255,599	)	$	(4,255,599	)	$	67,755,941		$	63,500,342		$	64,533,462		$	(12,071,029	)	$	52,462,433		$	308,456,503
TA Asset Allocation - Moderate Initial Class		81,048,545		2,040,997		722,481		1,318,516			—		(581,555	)		(581,555	)		9,168,344			8,586,789			9,905,305			(4,777,151	)		5,128,154			86,176,699
TA Asset Allocation - Moderate Growth Initial Class		280,495,309		6,748,863		2,513,630		4,235,233			—		(38,417	)		(38,417	)		45,687,018			45,648,601			49,883,834			(17,885,325	)		31,998,509			312,493,818
TA Barrow Hanley Dividend Focused Initial Class		60,489,028		1,513,223		566,665		946,558			—		(520,060	)		(520,060	)		15,872,206			15,352,146			16,298,704			(7,437,276	)		8,861,428			69,350,456
TA BlackRock Global Allocation Initial Class		3,710,765		89,851		37,264		52,587			54,790		51,763			106,553			421,467			528,020			580,607			1,194,758			1,775,365			5,486,130
TA BlackRock Tactical Allocation Initial Class		3,331,943		95,354		36,173		59,181			100,479		82,709			183,188			235,313			418,501			477,682			1,200,384			1,678,066			5,010,009
TA BNP Paribas Large Cap Growth Initial Class		4,052,421		55,759		47,752		8,007			—		278,687			278,687			1,236,827			1,515,514			1,523,521			1,383,508			2,907,029			6,959,450
TA Clarion Global Real Estate Securities Initial Class		48,402,540		2,720,130		438,213		2,281,917			—		(3,123,847	)		(3,123,847	)		2,228,021			(895,826	)		1,386,091			(2,228,723	)		(842,632	)		47,559,908
TA Hanlon Income Initial Class		29,893,545		1,217,607		228,956		988,651			—		159,772			159,772			(492,298	)		(332,526	)		656,125			(4,912,557	)		(4,256,432	)		25,637,113
TA International Moderate Growth Initial Class		10,833,421		231,249		96,242		135,007			—		84,950			84,950			1,042,200			1,127,150			1,262,157			(232,875	)		1,029,282			11,862,703
TA Janus Balanced Initial Class		9,058,408		76,999		78,983		(1,984	)		—		315,031			315,031			1,286,911			1,601,942			1,599,958			(1,037,313	)		562,645			9,621,053
TA Jennison Growth Initial Class		13,204,036		34,365		115,310		(80,945	)		991,955		286,269			1,278,224			3,036,269			4,314,493			4,233,548			(848,708	)		3,384,840			16,588,876
TA JPMorgan Core Bond Initial Class		54,961,304		1,384,040		429,513		954,527			—		967,664			967,664			(3,313,464	)		(2,345,800	)		(1,391,273	)		(10,979,848	)		(12,371,121	)		42,590,183
TA JPMorgan Enhanced Index Initial Class		4,615,177		37,849		48,982		(11,133	)		39,389		282,257			321,646			1,226,685			1,548,331			1,537,198			850,043			2,387,241			7,002,418
TA JPMorgan Mid Cap Value Initial Class		7,283,109		38,197		71,260		(33,063	)		91,544		329,860			421,404			1,725,105			2,146,509			2,113,446			(987,423	)		1,126,023			8,409,132
TA JPMorgan Tactical Allocation Initial Class		58,503,544		597,856		467,565		130,291			—		(1,452,268	)		(1,452,268	)		3,709,395			2,257,127			2,387,418			(10,076,991	)		(7,689,573	)		50,813,971
TA MFS International Equity Initial Class		40,935,229		477,227		380,345		96,882			—		(1,799,797	)		(1,799,797	)		8,311,026			6,511,229			6,608,111			(3,364,596	)		3,243,515			44,178,744
TA Morgan Stanley Capital Growth Initial Class		29,074,013		227,815		296,485		(68,670	)		149,329		(139,008	)		10,321			13,291,604			13,301,925			13,233,255			(334,381	)		12,898,874			41,972,887
TA Morgan Stanley Mid-Cap Growth Initial Class		308,998,063		2,868,497		3,107,432		(238,935	)		7,180,039		10,044,069			17,224,108			95,909,828			113,133,936			112,895,001			(21,167,340	)		91,727,661			400,725,724
TA Multi-Managed Balanced Initial Class		113,097,747		1,869,038		1,047,337		821,701			3,832,854		1,923,401			5,756,255			11,998,614			17,754,869			18,576,570			(9,078,409	)		9,498,161			122,595,908
TA PIMCO Tactical - Balanced Initial Class		7,218,830		45,900		60,512		(14,612	)		—		40,461			40,461			748,230			788,691			774,079			(770,566	)		3,513			7,222,343

S-12

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Statements of Operations and Change in Net Assets

Year Ended December 31, 2013

			Investment Income		Investment Expense							Increase (Decrease) in Net Assets from Operations
Subaccount	Net Assets as of January 1, 2012		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			Capital Gain Distributions		Realized Gain (Loss) on Investments			Net Realized Capital Gains (Losses) on Investments			Net Change in Unrealized Appreciation (Depreciation)			Net Gain (Loss) on Investment			Net Increase (Decrease) in Net Assets Resulting from Operations			Increase (Decrease) in Net Assets from Contract Transactions			Total Increase (Decrease) in Net Assets			Net Assets as of December 31, 2012
TA PIMCO Tactical - Conservative Initial Class	$	9,814,626	$	67,942	$	81,861	$	(13,919	)	$	—	$	(66,371	)	$	(66,371	)	$	801,141		$	734,770		$	720,851		$	(673,047	)	$	47,804		$	9,862,430
TA PIMCO Tactical - Growth Initial Class		12,426,995		110,985		108,665		2,320			—		(108,622	)		(108,622	)		2,040,067			1,931,445			1,933,765			(648,286	)		1,285,479			13,712,474
TA PIMCO Total Return Initial Class		37,217,010		643,732		279,341		364,391			365,846		54,339			420,185			(2,011,329	)		(1,591,144	)		(1,226,753	)		(8,796,508	)		(10,023,261	)		27,193,749
TA Systematic Small/Mid Cap Value Initial Class		41,008,806		501,323		867,084		(365,761	)		241,100		2,934,422			3,175,522			25,403,556			28,579,078			28,213,317			63,412,408			91,625,725			132,634,531
TA T. Rowe Price Small Cap Initial Class		28,558,454		33,712		363,628		(329,916	)		1,951,775		1,297,951			3,249,726			11,839,370			15,089,096			14,759,180			11,916,908			26,676,088			55,234,542
TA Vanguard ETF - Balanced Initial Class		482,240		7,731		5,224		2,507			8,612		8,391			17,003			43,504			60,507			63,014			325,247			388,261			870,501
TA Vanguard ETF - Growth Initial Class		1,405,111		38,203		21,340		16,863			55,211		42,024			97,235			277,696			374,931			391,794			1,673,828			2,065,622			3,470,733
TA WMC Diversified Growth Initial Class		726,823,605		8,339,087		7,075,995		1,263,092			—		8,955,932			8,955,932			207,244,939			216,200,871			217,463,963			(67,254,792	)		150,209,171			877,032,776

S-13

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

December 31, 2013

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 contract owners of WRL Financial Freedom Builder, WRL Freedom Elite, WRL Freedom Equity Protector, WRL Freedom Wealth Protector, WRL Freedom Elite Builder, WRL Freedom Elite Builder II, WRL Freedom Elite Advisor, WRL Freedom Excelerator, WRL SP Plus, and WRL For Life.

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
AllianceBernstein Variable Products Series Fund	AllianceBernstein Variable Products Series Fund
AllianceBernstein Balanced Wealth Strategy Class B Shares	AllianceBernstein Balanced Wealth Strategy Portfolio Class B Shares
Fidelity® Variable Insurance Products Fund	Fidelity® Variable Insurance Products Fund
Fidelity® VIP Contrafund® Service Class 2	Fidelity® VIP Contrafund® Portfolio Service Class 2
Fidelity® VIP Equity-Income Service Class 2	Fidelity® VIP Equity-Income Portfolio Service Class 2
Fidelity® VIP Growth Opportunities Service Class 2	Fidelity® VIP Growth Opportunities Portfolio Service Class 2
Fidelity® VIP Index 500 Service Class 2	Fidelity® VIP Index 500 Portfolio Service Class 2
Franklin Templeton Variable Insurance Products Trust	Franklin Templeton Variable Insurance Products Trust
Franklin Templeton VIP Founding Funds Allocation Class 4 Shares	Franklin Templeton VIP Founding Funds Allocation Class 4 Shares
Access One Trust	Access One Trust
Access VP High Yield	Access VP High Yield
Profunds Trust	Profunds Trust
ProFund VP Asia 30	ProFund VP Asia 30
ProFund VP Basic Materials	ProFund VP Basic Materials
ProFund VP Bull	ProFund VP Bull
ProFund VP Consumer Services	ProFund VP Consumer Services
ProFund VP Emerging Markets	ProFund VP Emerging Markets
ProFund VP Europe 30	ProFund VP Europe 30
ProFund VP Falling U.S. Dollar	ProFund VP Falling U.S. Dollar
ProFund VP Financials	ProFund VP Financials
ProFund VP International	ProFund VP International
ProFund VP Japan	ProFund VP Japan
ProFund VP Mid-Cap	ProFund VP Mid-Cap
ProFund VP Money Market	ProFund VP Money Market
ProFund VP NASDAQ-100	ProFund VP NASDAQ-100
ProFund VP Oil & Gas	ProFund VP Oil & Gas
ProFund VP Pharmaceuticals	ProFund VP Pharmaceuticals
ProFund VP Precious Metals	ProFund VP Precious Metals
ProFund VP Short Emerging Markets	ProFund VP Short Emerging Markets
ProFund VP Short International	ProFund VP Short International
ProFund VP Short NASDAQ-100	ProFund VP Short NASDAQ-100
ProFund VP Short Small-Cap	ProFund VP Short Small-Cap

S-14

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

December 31, 2013

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
Profunds Trust	Profunds Trust
ProFund VP Small-Cap	ProFund VP Small-Cap
ProFund VP Small-Cap Value	ProFund VP Small-Cap Value
ProFund VP Telecommunications	ProFund VP Telecommunications
ProFund VP U.S. Government Plus	ProFund VP U.S. Government Plus
ProFund VP UltraNASDAQ-100	ProFund VP UltraNASDAQ-100
ProFund VP UltraSmall-Cap	ProFund VP UltraSmall-Cap
ProFund VP Utilities	ProFund VP Utilities
Transamerica Series Trust	Transamerica Series Trust
TA Aegon Active Asset Allocation - Conservative Initial Class	Transamerica Aegon Active Asset Allocation - Conservative Initial Class
TA Aegon Active Asset Allocation - Moderate Initial Class	Transamerica Aegon Active Asset Allocation - Moderate Initial Class
TA Aegon Active Asset Allocation - Moderate Growth Initial Class	Transamerica Aegon Active Asset Allocation - Moderate Growth Initial Class
TA Aegon High Yield Bond Initial Class	Transamerica Aegon High Yield Bond Initial Class
TA Aegon Money Market Initial Class	Transamerica Aegon Money Market Initial Class
TA Aegon U.S. Government Securities Initial Class	Transamerica Aegon U.S. Government Securities Initial Class
TA AllianceBernstein Dynamic Allocation Initial Class	Transamerica AllianceBernstein Dynamic Allocation Initial Class
TA Asset Allocation - Conservative Initial Class	Transamerica Asset Allocation - Conservative Initial Class
TA Asset Allocation - Growth Initial Class	Transamerica Asset Allocation - Growth Initial Class
TA Asset Allocation - Moderate Initial Class	Transamerica Asset Allocation - Moderate Initial Class
TA Asset Allocation - Moderate Growth Initial Class	Transamerica Asset Allocation - Moderate Growth Initial Class
TA Barrow Hanley Dividend Focused Initial Class	Transamerica Barrow Hanley Dividend Focused Initial Class
TA BlackRock Global Allocation Initial Class	Transamerica BlackRock Global Allocation Initial Class
TA BlackRock Tactical Allocation Initial Class	Transamerica BlackRock Tactical Allocation Initial Class
TA BNP Paribas Large Cap Growth Initial Class	Transamerica BNP Paribas Large Cap Growth Initial Class
TA Clarion Global Real Estate Securities Initial Class	Transamerica Clarion Global Real Estate Securities Initial Class
TA Hanlon Income Initial Class	Transamerica Hanlon Income Initial Class
TA International Moderate Growth Initial Class	Transamerica International Moderate Growth Initial Class
TA Janus Balanced Initial Class	Transamerica Janus Balanced Initial Class
TA Jennison Growth Initial Class	Transamerica Jennison Growth Initial Class
TA JPMorgan Core Bond Initial Class	Transamerica JPMorgan Core Bond Initial Class
TA JPMorgan Enhanced Index Initial Class	Transamerica JPMorgan Enhanced Index Initial Class
TA JPMorgan Mid Cap Value Initial Class	Transamerica JPMorgan Mid Cap Value Initial Class
TA JPMorgan Tactical Allocation Initial Class	Transamerica JPMorgan Tactical Allocation Initial Class
TA MFS International Equity Initial Class	Transamerica MFS International Equity Initial Class
TA Morgan Stanley Capital Growth Initial Class	Transamerica Morgan Stanley Capital Growth Initial Class
TA Morgan Stanley Mid-Cap Growth Initial Class	Transamerica Morgan Stanley Mid-Cap Growth Initial Class
TA Multi-Managed Balanced Initial Class	Transamerica Multi-Managed Balanced Initial Class
TA PIMCO Tactical - Balanced Initial Class	Transamerica PIMCO Tactical - Balanced Initial Class
TA PIMCO Tactical - Conservative Initial Class	Transamerica PIMCO Tactical - Conservative Initial Class
TA PIMCO Tactical - Growth Initial Class	Transamerica PIMCO Tactical - Growth Initial Class
TA PIMCO Total Return Initial Class	Transamerica PIMCO Total Return Initial Class

S-15

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

December 31, 2013

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
Transamerica Series Trust	Transamerica Series Trust
TA Systematic Small/Mid Cap Value Initial Class	Transamerica Systematic Small/Mid Cap Value Initial Class
TA T. Rowe Price Small Cap Initial Class	Transamerica T. Rowe Price Small Cap Initial Class
TA Vanguard ETF - Balanced Initial Class	Transamerica Vanguard ETF - Balanced Initial Class
TA Vanguard ETF - Growth Initial Class	Transamerica Vanguard ETF - Growth Initial Class
TA WMC Diversified Growth Initial Class	Transamerica WMC Diversified Growth Initial Class

Each period reported on reflects a full twelve month period except as follows:

Subaccount	Inception Date
ProFund VP UltraNASDAQ-100	April 30, 2012
TA BlackRock Global Allocation Initial Class	May 19, 2011
TA BlackRock Tactical Allocation Initial Class	May 19, 2011
TA Aegon Active Asset Allocation - Conservative Initial Class	April 29, 2011
TA Aegon Active Asset Allocation - Moderate Initial Class	April 29, 2011
TA Aegon Active Asset Allocation - Moderate Growth Initial Class	April 29, 2011
TA Jennison Growth Initial Class	April 29, 2010
TA Janus Balanced Initial Class	July 1, 2009
AllianceBernstein Balanced Wealth Strategy Class B Shares	May 1, 2009
Franklin Templeton VIP Founding Funds Allocation Class 4 Shares	May 1, 2009
TA Hanlon Income Initial Class	May 1, 2009
TA BNP Paribas Large Cap Growth Initial Class	May 1, 2009
TA PIMCO Tactical - Balanced Initial Class	May 1, 2009
TA PIMCO Tactical - Conservative Initial Class	May 1, 2009
TA PIMCO Tactical - Growth Initial Class	May 1, 2009

The following subaccount name changes were made effective during the fiscal year ended December 31, 2013:

Subaccount	Formerly
TA Barrow Hanley Dividend Focused Initial Class	TA BlackRock Large Cap Value Initial Class
TA BNP Paribas Large Cap Growth Initial Class	TA Multi Managed Large Cap Core Initial Class
TA Vanguard ETF - Balanced Initial Class	TA Index 50 Initial Class
TA Vanguard ETF - Growth Initial Class	TA Index 75 Initial Class

During the current year the following subaccounts were liquidated and subsequently reinvested:

Reinvested Subaccount	Liquidated Subaccount
TA Systematic Small/Mid-Cap Value Initial Class	TA Third Avenue Value Initial Class
TA Vanguard ETF - Growth Initial Class	TA Efficient Markets Initial Class

S-16

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

December 31, 2013

1. Organization and Summary of Significant Accounting Policies (continued)

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, 2013.

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 annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.

S-17

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

2. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2013 were as follows:

Subaccount	Purchases		Sales
AllianceBernstein Balanced Wealth Strategy Class B Shares	$	860,274	$	310,700
Fidelity® VIP Contrafund® Service Class 2		1,481,870		1,871,084
Fidelity® VIP Equity-Income Service Class 2		2,317,028		850,753
Fidelity® VIP Growth Opportunities Service Class 2		890,468		880,538
Fidelity® VIP Index 500 Service Class 2		6,099,371		2,880,195
Franklin Templeton VIP Founding Funds Allocation Class 4 Shares		1,569,530		288,705
Access VP High Yield		4,926,313		2,861,304
ProFund VP Asia 30		2,173,470		1,823,157
ProFund VP Basic Materials		1,264,516		2,224,622
ProFund VP Bull		6,963,395		5,003,869
ProFund VP Consumer Services		2,069,495		1,137,647
ProFund VP Emerging Markets		9,282,156		12,071,248
ProFund VP Europe 30		5,128,854		6,327,146
ProFund VP Falling U.S. Dollar		735,487		552,959
ProFund VP Financials		2,708,566		1,975,662
ProFund VP International		4,299,675		3,757,813
ProFund VP Japan		4,895,992		3,022,066
ProFund VP Mid-Cap		9,042,720		9,887,862
ProFund VP Money Market		37,320,818		38,248,985
ProFund VP NASDAQ-100		11,774,777		12,388,932
ProFund VP Oil & Gas		1,944,683		2,422,005
ProFund VP Pharmaceuticals		2,610,019		1,363,122
ProFund VP Precious Metals		3,068,772		3,929,723
ProFund VP Short Emerging Markets		877,266		865,610
ProFund VP Short International		389,349		390,258
ProFund VP Short NASDAQ-100		2,414,619		2,476,898
ProFund VP Short Small-Cap		2,822,214		2,021,339
ProFund VP Small-Cap		11,319,680		9,839,187
ProFund VP Small-Cap Value		10,533,100		11,218,476
ProFund VP Telecommunications		490,822		880,257
ProFund VP U.S. Government Plus		1,442,543		6,058,886
ProFund VP UltraNASDAQ-100		12,355,045		8,905,587
ProFund VP UltraSmall-Cap		7,868,178		5,325,622
ProFund VP Utilities		3,085,826		3,397,801
TA Aegon Active Asset Allocation - Conservative Initial Class		4,389,996		2,067,714
TA Aegon Active Asset Allocation - Moderate Initial Class		1,807,935		790,784

S-18

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

2. Investments (continued)

Subaccount	Purchases		Sales
TA Aegon Active Asset Allocation - Moderate Growth Initial Class	$	3,742,690	$	3,963,510
TA Aegon High Yield Bond Initial Class		10,901,913		15,242,352
TA Aegon Money Market Initial Class		12,463,177		16,337,194
TA Aegon U.S. Government Securities Initial Class		2,803,590		6,071,271
TA AllianceBernstein Dynamic Allocation Initial Class		748,179		872,620
TA Asset Allocation - Conservative Initial Class		4,126,323		11,794,475
TA Asset Allocation - Growth Initial Class		11,937,503		22,978,716
TA Asset Allocation - Moderate Initial Class		5,552,353		9,010,894
TA Asset Allocation - Moderate Growth Initial Class		13,623,592		27,276,671
TA Barrow Hanley Dividend Focused Initial Class		9,542,787		16,033,655
TA BlackRock Global Allocation Initial Class		2,107,038		804,903
TA BlackRock Tactical Allocation Initial Class		2,333,392		973,349
TA BNP Paribas Large Cap Growth Initial Class		2,353,044		961,032
TA Clarion Global Real Estate Securities Initial Class		6,669,807		6,617,008
TA Hanlon Income Initial Class		3,379,730		7,303,379
TA International Moderate Growth Initial Class		1,334,867		1,432,263
TA Janus Balanced Initial Class		1,389,269		2,428,492
TA Jennison Growth Initial Class		3,673,153		3,611,783
TA JPMorgan Core Bond Initial Class		4,230,853		14,256,226
TA JPMorgan Enhanced Index Initial Class		2,105,597		1,227,296
TA JPMorgan Mid Cap Value Initial Class		180,374		1,109,315
TA JPMorgan Tactical Allocation Initial Class		5,577,931		15,524,589
TA MFS International Equity Initial Class		6,745,602		10,013,056
TA Morgan Stanley Capital Growth Initial Class		4,144,106		4,397,578
TA Morgan Stanley Mid-Cap Growth Initial Class		24,722,996		38,943,858
TA Multi-Managed Balanced Initial Class		8,913,809		13,337,158
TA PIMCO Tactical - Balanced Initial Class		830,938		1,616,115
TA PIMCO Tactical - Conservative Initial Class		1,077,584		1,764,702
TA PIMCO Tactical - Growth Initial Class		1,315,819		1,961,861
TA PIMCO Total Return Initial Class		7,100,214		15,166,480
TA Systematic Small/Mid Cap Value Initial Class		80,671,368		17,383,295
TA T. Rowe Price Small Cap Initial Class		19,943,761		6,404,150
TA Vanguard ETF - Balanced Initial Class		470,422		134,054
TA Vanguard ETF - Growth Initial Class		2,205,864		459,963
TA WMC Diversified Growth Initial Class		20,021,876		86,007,324

S-19

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

3. Change in Units

The change in units outstanding were as follows:

	Year Ended December 31, 2013								Year Ended December 31, 2012
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
AllianceBernstein Balanced Wealth Strategy Class B Shares		120,348		(86,630	)		33,718			33,414		(20,120	)		13,294
Fidelity® VIP Contrafund® Service Class 2		25,867		(46,373	)		(20,506	)		166,982		(228,567	)		(61,585	)
Fidelity® VIP Equity-Income Service Class 2		21,161		13,677			34,838			96,766		(129,912	)		(33,146	)
Fidelity® VIP Growth Opportunities Service Class 2		183,915		(182,481	)		1,434			194,226		(176,228	)		17,998
Fidelity® VIP Index 500 Service Class 2		88,424		94,350			182,774			388,268		(258,646	)		129,622
Franklin Templeton VIP Founding Funds Allocation Class 4 Shares		105,506		(58,192	)		47,314			35,873		(17,517	)		18,356
Access VP High Yield		16,798		100,067			116,865			203,772		(133,371	)		70,401
ProFund VP Asia 30		11,328		24,123			35,451			315,929		(342,226	)		(26,297	)
ProFund VP Basic Materials		68,709		(182,089	)		(113,380	)		318,889		(379,760	)		(60,871	)
ProFund VP Bull		30,364		122,845			153,209			519,684		(538,104	)		(18,420	)
ProFund VP Consumer Services		18,673		38,540			57,213			205,398		(249,540	)		(44,142	)
ProFund VP Emerging Markets		30,522		(503,287	)		(472,765	)		1,163,893		(731,755	)		432,138
ProFund VP Europe 30		236,719		(394,305	)		(157,586	)		221,715		(38,500	)		183,215
ProFund VP Falling U.S. Dollar		68,308		(45,175	)		23,133			47,519		(49,978	)		(2,459	)
ProFund VP Financials		19,863		73,437			93,300			377,978		(372,558	)		5,420
ProFund VP International		21,373		3,249			24,622			343,723		(283,594	)		60,129
ProFund VP Japan		21,611		206,951			228,562			255,620		(449,783	)		(194,163	)
ProFund VP Mid-Cap		889,722		(950,409	)		(60,687	)		996,462		(823,394	)		173,068
ProFund VP Money Market		129,093		(208,249	)		(79,156	)		5,853,895		(6,289,354	)		(435,459	)
ProFund VP NASDAQ-100		23,003		(46,504	)		(23,501	)		1,640,523		(1,878,992	)		(238,469	)
ProFund VP Oil & Gas		13,156		(87,176	)		(74,020	)		528,455		(501,201	)		27,254
ProFund VP Pharmaceuticals		12,219		56,926			69,145			295,362		(353,724	)		(58,362	)
ProFund VP Precious Metals		81,176		(238,825	)		(157,649	)		778,524		(727,724	)		50,800
ProFund VP Short Emerging Markets		2,923		(1,306	)		1,617			135,730		(152,942	)		(17,212	)
ProFund VP Short International		3,560		(3,257	)		303			316,927		(313,897	)		3,030
ProFund VP Short NASDAQ-100		15,019		(36,958	)		(21,939	)		766,829		(732,996	)		33,833
ProFund VP Short Small-Cap		20,933		203,816			224,749			1,374,432		(1,415,119	)		(40,687	)

S-20

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

3. Change in Units (continued)

	Year Ended December 31, 2013								Year Ended December 31, 2012
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 Small-Cap		11,942		45,316			57,258			1,327,315		(981,001	)		346,314
ProFund VP Small-Cap Value		18,101		(91,310	)		(73,209	)		1,197,973		(854,949	)		343,024
ProFund VP Telecommunications		681		(40,553	)		(39,872	)		236,793		(167,660	)		69,133
ProFund VP U.S. Government Plus		1,555		(330,926	)		(329,371	)		728,570		(590,471	)		138,099
ProFund VP UltraNASDAQ-100		35,539		242,455			277,994			1,331,090		(1,084,665	)		246,425
ProFund VP UltraSmall-Cap		52,237		143,647			195,884			1,931,930		(2,309,104	)		(377,174	)
ProFund VP Utilities		5,256		(43,472	)		(38,216	)		423,736		(576,036	)		(152,300	)
TA Aegon Active Asset Allocation - Conservative Initial Class		5,899		198,650			204,549			550,240		(284,031	)		266,209
TA Aegon Active Asset Allocation - Moderate Initial Class		12,915		77,405			90,320			153,395		(76,200	)		77,195
TA Aegon Active Asset Allocation - Moderate Growth Initial Class		23,800		(46,426	)		(22,626	)		824,963		(1,031,151	)		(206,188	)
TA Aegon High Yield Bond Initial Class		9,453		(285,937	)		(276,484	)		1,016,557		(715,853	)		300,704
TA Aegon Money Market Initial Class		24,739		(152,009	)		(127,270	)		1,017,361		(1,416,183	)		(398,822	)
TA Aegon U.S. Government Securities Initial Class		5,966		(245,767	)		(239,801	)		460,698		(509,608	)		(48,910	)
TA AllianceBernstein Dynamic Allocation Initial Class		4,010		(11,114	)		(7,104	)		74,821		(58,940	)		15,881
TA Asset Allocation - Conservative Initial Class		17,691		(540,948	)		(523,257	)		651,526		(668,556	)		(17,030	)
TA Asset Allocation - Growth Initial Class		57,580		(763,708	)		(706,128	)		2,986,691		(3,633,690	)		(646,999	)
TA Asset Allocation - Moderate Initial Class		23,326		(294,186	)		(270,860	)		905,218		(1,427,518	)		(522,300	)
TA Asset Allocation - Moderate Growth Initial Class		61,337		(1,091,223	)		(1,029,886	)		2,901,893		(3,982,670	)		(1,080,777	)
TA Barrow Hanley Dividend Focused Initial Class		39,509		(245,344	)		(205,835	)		784,937		(927,758	)		(142,821	)
TA BlackRock Global Allocation Initial Class		49,385		60,707			110,092			278,192		(109,924	)		168,268
TA BlackRock Tactical Allocation Initial Class		12,320		96,269			108,589			288,261		(85,217	)		203,044
TA BNP Paribas Large Cap Growth Initial Class		12,166		57,426			69,592			96,542		(86,555	)		9,987
TA Clarion Global Real Estate Securities Initial Class		25,418		(59,658	)		(34,240	)		473,010		(489,470	)		(16,460	)
TA Hanlon Income Initial Class		10,872		(430,669	)		(419,797	)		972,242		(1,070,820	)		(98,578	)
TA International Moderate Growth Initial Class		7,879		(29,134	)		(21,255	)		228,051		(366,497	)		(138,446	)
TA Janus Balanced Initial Class		11,831		(100,348	)		(88,517	)		260,654		(328,505	)		(67,851	)
TA Jennison Growth Initial Class		48,651		(135,122	)		(86,471	)		793,569		(1,152,148	)		(358,579	)

S-21

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

3. Change in Units (continued)

	Year Ended December 31, 2013								Year Ended December 31, 2012
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA JPMorgan Core Bond Initial Class		27,163		(231,101	)		(203,938	)		427,808		(518,466	)		(90,658	)
TA JPMorgan Enhanced Index Initial Class		8,754		39,769			48,523			230,701		(252,912	)		(22,211	)
TA JPMorgan Mid Cap Value Initial Class		1,243		(39,016	)		(37,773	)		1,036		(49,242	)		(48,206	)
TA JPMorgan Tactical Allocation Initial Class		49,853		(248,933	)		(199,080	)		672,979		(748,448	)		(75,469	)
TA MFS International Equity Initial Class		19,911		(202,968	)		(183,057	)		465,057		(594,814	)		(129,757	)
TA Morgan Stanley Capital Growth Initial Class		41,778		(58,434	)		(16,656	)		362,182		(542,301	)		(180,119	)
TA Morgan Stanley Mid-Cap Growth Initial Class		145,061		478,128			623,189			2,317,412		(3,010,460	)		(693,048	)
TA Multi-Managed Balanced Initial Class		63,785		(517,276	)		(453,491	)		793,462		(1,285,339	)		(491,877	)
TA PIMCO Tactical - Balanced Initial Class		9,518		(79,003	)		(69,485	)		270,747		(529,027	)		(258,280	)
TA PIMCO Tactical - Conservative Initial Class		18,659		(81,484	)		(62,825	)		347,277		(309,376	)		37,901
TA PIMCO Tactical - Growth Initial Class		9,880		(71,584	)		(61,704	)		400,307		(453,299	)		(52,992	)
TA PIMCO Total Return Initial Class		8,952		(546,143	)		(537,191	)		1,192,076		(1,091,648	)		100,428
TA Systematic Small/Mid Cap Value Initial Class		37,667		2,542,653			2,580,320			820,995		(808,554	)		12,441
TA T. Rowe Price Small Cap Initial Class		52,802		501,845			554,647			1,388,548		(1,475,396	)		(86,848	)
TA Vanguard ETF - Balanced Initial Class		5,640		21,050			26,690			22,132		(16,926	)		5,206
TA Vanguard ETF - Growth Initial Class		8,359		132,111			140,470			35,922		(109,952	)		(74,030	)
TA WMC Diversified Growth Initial Class		443,599		(4,052,875	)		(3,609,276	)		19,118,163		(23,543,209	)		(4,425,046	)

S-22

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

December 31, 2013

4. Financial Highlights

The Separate Account offers various death benefit options, which have differing fees that are charged against the contract owner’s account balance. These charges are discussed in more detail in the individual’s policy. Differences in the fee structures for these units result in different unit values, expense ratios, and total returns.

Subaccount	Year Ended	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
AllianceBernstein Balanced Wealth Strategy Class B Shares
	12/31/2013		96,496	$	17.67	to	$	16.48	$	1,637,100		2.44	%		0.00	%	to	1.50	%		16.27	%	to	14.55	%
	12/31/2012		62,778		15.19	to		14.39		924,351		1.93			0.00		to	1.50			13.38		to	11.69
	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
Fidelity® VIP Contrafund® Service Class 2
	12/31/2013		1,061,778		14.02	to		19.96		21,199,390		0.85			0.30		to	0.90			30.56		to	29.79
	12/31/2012		1,082,284		10.74	to		15.38		16,648,396		1.12			0.30		to	0.90			15.79		to	15.10
	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
Fidelity® VIP Equity-Income Service Class 2
	12/31/2013		627,239		14.21	to		18.31		11,485,921		2.43			0.30		to	0.90			27.44		to	26.69
	12/31/2012		592,401		11.15	to		14.45		8,562,126		2.95			0.30		to	0.90			16.70		to	16.01
	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
Fidelity® VIP Growth Opportunities Service Class 2
	12/31/2013		495,704		15.84	to		13.29		6,587,747		0.05			0.30		to	0.90			37.13		to	36.31
	12/31/2012		494,270		11.55	to		9.75		4,818,399		0.15			0.30		to	0.90			18.96		to	18.25
	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
Fidelity® VIP Index 500 Service Class 2
	12/31/2013		1,059,391		15.36	to		15.01		19,728,648		1.84			0.00		to	1.50			31.91		to	29.96
	12/31/2012		876,617		11.64	to		11.55		12,543,718		2.08			0.00		to	1.50			15.63		to	13.91
	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
Franklin Templeton VIP Founding Funds Allocation Class 4 Shares
	12/31/2013		114,612		19.94	to		18.60		2,194,012		10.64			0.00		to	1.50			23.68		to	21.85
	12/31/2012		67,298		16.12	to		15.27		1,050,329		2.54			0.00		to	1.50			15.17		to	13.46
	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
Access VP High Yield
	12/31/2013		354,737		17.51	to		15.89		5,908,320		2.62			0.00		to	1.50			10.02		to	8.39
	12/31/2012		237,872		15.92	to		14.66		3,628,088		4.52			0.00		to	1.50			14.12		to	12.43
	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
ProFund VP Asia 30
	12/31/2013		578,009		9.46	to		10.20		5,217,606		0.06			0.00		to	1.50			14.97		to	13.27
	12/31/2012		542,558		8.23	to		9.01		4,292,528		-			0.00		to	1.50			15.48		to	13.76
	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

S-23

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

4. Financial Highlights

Subaccount	Year Ended	Units		Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Ratio** Lowest to Highest						Corresponding to Lowest to Highest Expense Ratio
ProFund VP Basic Materials
	12/31/2013		382,073	$	10.72	to	$	10.03	$	3,893,330		0.95	%		0.00	%	to	1.50	%		18.43	%	to	16.68	%
	12/31/2012		495,453		9.05	to		8.59		4,299,388		0.32			0.00		to	1.50			8.49		to	6.87
	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
ProFund VP Bull
	12/31/2013		379,024		13.76	to		13.75		5,456,864		—			0.00		to	1.50			29.76		to	27.84
	12/31/2012		225,815		10.61	to		10.76		2,527,591		—			0.00		to	1.50			13.89		to	12.20
	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
ProFund VP Consumer Services
	12/31/2013		174,922		20.35	to		20.92		3,394,209		0.23			0.00		to	1.50			39.87		to	37.80
	12/31/2012		117,709		14.55	to		15.18		1,646,930		—			0.00		to	1.50			22.10		to	20.29
	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
ProFund VP Emerging Markets
	12/31/2013		763,357		7.23	to		7.47		5,251,045		0.62			0.00		to	1.50			(6.42	)	to	(7.81	)
	12/31/2012		1,236,122		7.73	to		8.10		9,160,476		1.06			0.00		to	1.50			6.57		to	4.99
	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
ProFund VP Europe 30
	12/31/2013		70,112		10.62	to		10.16		710,051		0.36			0.00		to	1.50			21.64		to	19.84
	12/31/2012		227,698		8.73	to		8.48		1,908,666		2.21			0.00		to	1.50			16.60		to	14.86
	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
ProFund VP Falling U.S. Dollar
	12/31/2013		91,312		8.71	to		7.87		757,593		—			0.00		to	1.50			(2.01	)	to	(3.46	)
	12/31/2012		68,179		8.89	to		8.16		581,557		—			0.00		to	1.50			(0.77	)	to	(2.24	)
	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
ProFund VP Financials
	12/31/2013		384,821		9.69	to		11.45		3,559,313		0.33			0.00		to	1.50			32.08		to	30.13
	12/31/2012		291,521		7.33	to		8.80		2,057,578		0.15			0.00		to	1.50			24.73		to	22.88
	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
ProFund VP International
	12/31/2013		297,995		9.64	to		9.58		2,733,179		—			0.00		to	1.50			19.49		to	17.73
	12/31/2012		273,373		8.06	to		8.14		2,114,787		—			0.00		to	1.50			15.93		to	14.21
	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
ProFund VP Japan
	12/31/2013		264,230		10.02	to		9.53		2,520,139		—			0.00		to	1.50			48.24		to	46.05
	12/31/2012		35,668		6.76	to		6.53		231,290		—			0.00		to	1.50			22.95		to	21.12
	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

S-24

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

4. Financial Highlights

Subaccount	Year Ended	Units		Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Ratio** Lowest to Highest						Corresponding to Lowest to Highest Expense Ratio
ProFund VP Mid-Cap
	12/31/2013		354,544	$	15.53	to	$	14.96	$	5,239,823		—	%		0.00	%	to	1.50	%		30.79	%	to	28.86	%
	12/31/2012		415,231		11.87	to		11.61		4,734,725		—			0.00		to	1.50			15.54		to	13.82
	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
ProFund VP Money Market
	12/31/2013		1,587,303		10.55	to		9.24		15,951,315		0.02			0.00		to	1.50			0.02		to	(1.46	)
	12/31/2012		1,666,459		10.54	to		9.38		16,875,141		0.02			0.00		to	1.50			0.02		to	(1.47	)
	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	)
ProFund VP NASDAQ-100
	12/31/2013		370,711		19.51	to		17.40		7,650,822		—			0.00		to	1.50			34.27		to	32.29
	12/31/2012		394,212		14.53	to		13.15		6,111,813		—			0.00		to	1.50			16.23		to	14.51
	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
ProFund VP Oil & Gas
	12/31/2013		716,936		11.36	to		9.68		7,726,500		0.42			0.00		to	1.50			24.07		to	22.24
	12/31/2012		790,956		9.16	to		7.92		6,935,800		0.11			0.00		to	1.50			2.90		to	1.37
	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
ProFund VP Pharmaceuticals
	12/31/2013		272,535		17.45	to		17.14		4,526,613		1.57			0.00		to	1.50			31.63		to	29.68
	12/31/2012		203,390		13.25	to		13.22		2,587,654		1.19			0.00		to	1.50			11.85		to	10.19
	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
ProFund VP Precious Metals
	12/31/2013		888,589		4.61	to		4.56		3,896,411		—			0.00		to	1.50			(37.94	)	to	(38.86	)
	12/31/2012		1,046,238		7.42	to		7.46		7,452,780		—			0.00		to	1.50			(14.55	)	to	(15.82	)
	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
ProFund VP Short Emerging Markets
	12/31/2013		83,885		5.32	to		4.55		421,715		—			0.00		to	1.50			(0.23	)	to	(1.70	)
	12/31/2012		82,268		5.33	to		4.63		419,101		—			0.00		to	1.50			(13.04	)	to	(14.34	)
	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	)
ProFund VP Short International
	12/31/2013		91,408		4.92	to		4.24		425,812		—			0.00		to	1.50			(21.01	)	to	(22.18	)
	12/31/2012		91,105		6.23	to		5.45		543,662		—			0.00		to	1.50			(20.15	)	to	(21.34	)
	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	)
ProFund VP Short NASDAQ-100
	12/31/2013		198,467		3.07	to		2.90		578,643		—			0.00		to	1.50			(29.40	)	to	(30.45	)
	12/31/2012		220,406		4.34	to		4.17		918,403		—			0.00		to	1.50			(18.79	)	to	(20.00	)
	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	)

S-25

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

4. Financial Highlights

Subaccount	Year Ended	Units		Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Ratio** Lowest to Highest						Corresponding to Lowest to Highest Expense Ratio
ProFund VP Short Small-Cap
	12/31/2013		418,451	$	3.10	to	$	2.48	$	1,095,526		—	%		0.00	%	to	1.50	%		(31.25	)%	to	(32.27	)%
	12/31/2012		193,702		4.51	to		3.67		742,671		—			0.00		to	1.50			(18.96	)	to	(20.17	)
	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	)
ProFund VP Small-Cap
	12/31/2013		575,020		15.11	to		15.84		8,997,181		—			0.00		to	1.50			37.18		to	35.16
	12/31/2012		517,762		11.02	to		11.72		5,953,688		—			0.00		to	1.50			14.75		to	13.04
	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
ProFund VP Small-Cap Value
	12/31/2013		328,402		16.40	to		16.48		5,135,188		0.34			0.00		to	1.50			37.67		to	35.64
	12/31/2012		401,611		11.91	to		12.15		4,597,660		—			0.00		to	1.50			16.16		to	14.43
	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
ProFund VP Telecommunications
	12/31/2013		54,824		12.85	to		12.60		672,142		3.00			0.00		to	1.50			12.07		to	10.41
	12/31/2012		94,696		11.47	to		11.41		1,043,007		1.62			0.00		to	1.50			16.52		to	14.79
	12/31/2011		25,563		9.84	to		9.94		243,416		5.16			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
ProFund VP U.S. Government Plus
	12/31/2013		185,209		13.14	to		12.00		2,316,197		0.19			0.00		to	1.50			(19.11	)	to	(20.31	)
	12/31/2012		514,580		16.25	to		15.06		8,023,704		—			0.00		to	1.50			0.97		to	(0.53	)
	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	)
ProFund VP UltraNASDAQ-100
	12/31/2013		524,419		16.77	to		16.44		8,712,260		—			0.30		to	1.50			78.51		to	76.40
	12/31/2012(1)		246,425		9.40	to		9.32		2,306,031		—			0.30		to	1.50			—		to	—
ProFund VP UltraSmall-Cap
	12/31/2013		687,819		16.52	to		17.53		10,830,668		—			0.00		to	1.50			86.66		to	83.90
	12/31/2012		491,935		8.85	to		9.53		4,189,182		—			0.00		to	1.50			29.51		to	27.59
	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
ProFund VP Utilities
	12/31/2013		187,028		11.79	to		10.44		2,094,772		2.62			0.00		to	1.50			13.31		to	11.64
	12/31/2012		225,244		10.41	to		9.35		2,246,366		2.18			0.00		to	1.50			0.14		to	(1.35	)
	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
TA Aegon Active Asset Allocation - Conservative Initial Class
	12/31/2013		949,238		11.56	to		10.94		10,559,826		1.27			0.00		to	1.50			7.29		to	5.70
	12/31/2012		744,689		10.78	to		10.35		7,790,128		0.39			0.00		to	1.50			6.99		to	5.40
	12/31/2011(1)		478,480		10.07	to		9.82		4,719,304		—			0.00		to	1.50			0.71		to	(1.77	)

S-26

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

4. Financial Highlights

Subaccount	Year Ended	Units		Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Ratio** Lowest to Highest						Corresponding to Lowest to Highest Expense Ratio
TA Aegon Active Asset Allocation - Moderate Initial Class
	12/31/2013		255,835	$	11.66	to	$	11.29	$	2,939,349		0.61	%		0.30	%	to	1.50	%		10.98	%	to	9.67	%
	12/31/2012		165,515		10.50	to		10.30		1,722,700		0.16			0.30		to	1.50			8.38		to	7.10
	12/31/2011(1)		88,320		9.69	to		9.61		852,713		—			0.30		to	1.50			(3.38	)	to	(3.85	)
TA Aegon Active Asset Allocation - Moderate Growth Initial Class
	12/31/2013		2,854,987		12.87	to		11.62		33,768,554		0.94			0.00		to	1.50			16.96		to	15.23
	12/31/2012		2,877,613		11.00	to		10.09		29,341,425		0.67			0.00		to	1.50			11.18		to	9.53
	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	)
TA Aegon High Yield Bond Initial Class
	12/31/2013		958,905		17.02	to		15.27		19,315,590		5.47			0.00		to	1.50			6.60		to	5.02
	12/31/2012		1,235,389		15.96	to		14.54		23,598,480		6.51			0.00		to	1.50			17.37		to	15.63
	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
TA Aegon Money Market Initial Class
	12/31/2013		2,061,971		10.85	to		9.32		37,528,464		0.01			0.00		to	1.50			0.01		to	(1.47	)
	12/31/2012		2,189,241		10.85	to		9.46		41,402,846		0.01			0.00		to	1.50			0.01		to	(1.48	)
	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	)
TA Aegon U.S. Government Securities Initial Class
	12/31/2013		548,374		13.82	to		11.72		7,951,648		2.15			0.00		to	1.50			(2.24	)	to	(3.68	)
	12/31/2012		788,175		14.14	to		12.17		11,800,019		1.73			0.00		to	1.50			5.14		to	3.58
	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
TA AllianceBernstein Dynamic Allocation Initial Class
	12/31/2013		211,633		12.79	to		10.65		3,473,693		1.15			0.00		to	1.50			7.18		to	5.60
	12/31/2012		218,737		11.93	to		10.08		3,397,039		0.86			0.00		to	1.50			6.14		to	4.56
	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
TA Asset Allocation - Conservative Initial Class
	12/31/2013		2,123,723		14.09	to		12.56		36,960,009		3.07			0.00		to	1.50			9.37		to	7.75
	12/31/2012		2,646,980		12.89	to		11.66		42,471,943		3.16			0.00		to	1.50			7.46		to	5.86
	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
TA Asset Allocation - Growth Initial Class
	12/31/2013		16,494,167		13.68	to		12.87		308,456,503		1.22			0.00		to	1.50			26.81		to	24.94
	12/31/2012		17,200,295		10.79	to		10.30		255,994,070		1.34			0.00		to	1.50			12.60		to	10.92
	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
TA Asset Allocation - Moderate Initial Class
	12/31/2013		4,718,623		14.35	to		12.84		86,176,699		2.44			0.00		to	1.50			13.50		to	11.82
	12/31/2012		4,989,483		12.64	to		11.48		81,048,545		2.62			0.00		to	1.50			9.44		to	7.81
	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

S-27

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

4. Financial Highlights

Subaccount	Year Ended	Units		Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Ratio** Lowest to Highest						Corresponding to Lowest to Highest Expense Ratio
TA Asset Allocation - Moderate Growth Initial Class
	12/31/2013		16,718,753	$	14.04	to	$	12.94	$	312,493,818		2.29	%		0.00	%	to	1.50	%		19.38	%	to	17.62	%
	12/31/2012		17,748,639		11.76	to		11.00		280,495,309		2.48			0.00		to	1.50			10.65		to	9.00
	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
TA Barrow Hanley Dividend Focused Initial Class
	12/31/2013		2,340,738		13.47	to		13.05		69,350,456		2.35			0.00		to	1.50			30.24		to	28.32
	12/31/2012		2,546,573		10.34	to		10.17		60,489,028		1.80			0.00		to	1.50			11.72		to	10.06
	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
TA BlackRock Global Allocation Initial Class
	12/31/2013		475,997		11.69	to		11.33		5,486,130		2.00			0.30		to	1.50			14.27		to	12.92
	12/31/2012		365,905		10.23	to		10.03		3,710,765		4.03			0.30		to	1.50			9.94		to	8.64
	12/31/2011(1)		197,637		9.30	to		9.24		1,832,732		—			0.30		to	1.50			(7.22	)	to	(7.65	)
TA BlackRock Tactical Allocation Initial Class
	12/31/2013		422,236		12.03	to		11.66		5,010,009		2.22			0.30		to	1.50			12.29		to	10.97
	12/31/2012		313,647		10.72	to		10.51		3,331,943		2.55			0.30		to	1.50			9.90		to	8.60
	12/31/2011(1)		110,603		9.75	to		9.68		1,074,808		—			0.30		to	1.50			(2.77	)	to	(3.21	)
TA BNP Paribas Large Cap Growth Initial Class
	12/31/2013		300,744		24.10	to		22.48		6,959,450		1.02			0.00		to	1.50			33.10		to	31.13
	12/31/2012		231,152		18.10	to		17.14		4,052,421		0.84			0.00		to	1.50			17.13		to	15.39
	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
TA Clarion Global Real Estate Securities Initial Class
	12/31/2013		1,637,406		10.99	to		11.67		47,559,908		5.50			0.00		to	1.50			3.90		to	2.36
	12/31/2012		1,671,646		10.57	to		11.40		48,402,540		3.58			0.00		to	1.50			25.25		to	23.39
	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
TA Hanlon Income Initial Class
	12/31/2013		2,168,193		12.29	to		11.47		25,637,113		4.44			0.00		to	1.50			3.19		to	1.66
	12/31/2012		2,587,990		11.91	to		11.28		29,893,545		2.38			0.00		to	1.50			3.72		to	2.18
	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
TA International Moderate Growth Initial Class
	12/31/2013		1,035,656		12.31	to		11.02		11,862,703		2.05			0.00		to	1.50			12.72		to	11.05
	12/31/2012		1,056,911		10.92	to		9.93		10,833,421		2.98			0.00		to	1.50			12.81		to	11.13
	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
TA Janus Balanced Initial Class
	12/31/2013		776,819		12.85	to		12.02		9,621,053		0.81			0.00		to	1.50			19.27		to	17.51
	12/31/2012		865,336		10.78	to		10.23		9,058,408		—			0.00		to	1.50			12.75		to	11.08
	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

S-28

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

4. Financial Highlights

Subaccount	Year Ended	Units		Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Ratio** Lowest to Highest						Corresponding to Lowest to Highest Expense Ratio
TA Jennison Growth Initial Class
	12/31/2013		997,359	$	17.17	to	$	16.26	$	16,588,876		0.26	%		0.00	%	to	1.50	%		37.70	%	to	35.67	%
	12/31/2012		1,083,830		12.47	to		11.98		13,204,036		0.08			0.00		to	1.50			15.77		to	14.05
	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
TA JPMorgan Core Bond Initial Class
	12/31/2013		1,189,246		14.94	to		12.53		42,590,183		2.84			0.00		to	1.50			(1.84	)	to	(3.29	)
	12/31/2012		1,393,184		15.22	to		12.96		54,961,304		2.59			0.00		to	1.50			4.98		to	3.42
	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
TA JPMorgan Enhanced Index Initial Class
	12/31/2013		363,316		15.71	to		15.57		7,002,418		0.66			0.00		to	1.50			32.52		to	30.56
	12/31/2012		314,793		11.86	to		11.93		4,615,177		1.04			0.00		to	1.50			16.35		to	14.62
	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
TA JPMorgan Mid Cap Value Initial Class
	12/31/2013		297,704		15.47	to		28.39		8,409,132		0.48			0.30		to	0.90			31.42		to	30.64
	12/31/2012		335,477		11.77	to		21.73		7,283,109		0.74			0.30		to	0.90			20.16		to	19.45
	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
TA JPMorgan Tactical Allocation Initial Class
	12/31/2013		1,836,341		11.81	to		10.22		50,813,971		1.12			0.00		to	1.50			5.51		to	3.95
	12/31/2012		2,035,421		11.19	to		9.83		58,503,544		0.60			0.00		to	1.50			7.72		to	6.12
	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
TA MFS International Equity Initial Class
	12/31/2013		2,542,705		12.41	to		12.59		44,178,744		1.12			0.00		to	1.50			18.09		to	16.35
	12/31/2012		2,725,762		10.51	to		10.82		40,935,229		1.67			0.00		to	1.50			22.16		to	20.34
	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
TA Morgan Stanley Capital Growth Initial Class
	12/31/2013		1,614,954		17.73	to		17.56		41,972,887		0.68			0.00		to	1.50			48.25		to	46.06
	12/31/2012		1,631,610		11.96	to		12.02		29,074,013		—			0.00		to	1.50			15.55		to	13.83
	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
TA Morgan Stanley Mid-Cap Growth Initial Class
	12/31/2013		6,801,694		20.86	to		17.35		400,725,724		0.82			0.00		to	1.50			39.14		to	37.09
	12/31/2012		6,178,505		14.99	to		12.66		308,998,063		—			0.00		to	1.50			9.08		to	7.46
	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
TA Multi-Managed Balanced Initial Class
	12/31/2013		5,788,779		16.93	to		15.16		122,595,908		1.59			0.00		to	1.50			18.09		to	16.35
	12/31/2012		6,242,270		14.33	to		13.03		113,097,747		1.63			0.00		to	1.50			12.57		to	10.90
	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

S-29

Western Reserve Life Assurance Co. of

Ohio

WRL Series Life Account

Notes to Financial

4. Financial Highlights

Subaccount	Year Ended	Units		Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Ratio** Lowest to Highest						Corresponding to Lowest to Highest Expense Ratio
TA PIMCO Tactical - Balanced Initial Class
	12/31/2013		619,030	$	12.13	to	$	11.31	$	7,222,343		0.63	%		0.00	%	to	1.50	%		12.16	%	to	10.50	%
	12/31/2012		688,515		10.81	to		10.24		7,218,830		1.97			0.00		to	1.50			1.29		to	(0.22	)
	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
TA PIMCO Tactical - Conservative Initial Class
	12/31/2013		892,693		11.49	to		10.72		9,862,430		0.70			0.00		to	1.50			8.44		to	6.83
	12/31/2012		955,518		10.59	to		10.03		9,814,626		1.50			0.00		to	1.50			1.70		to	0.19
	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
TA PIMCO Tactical - Growth Initial Class
	12/31/2013		1,186,871		12.01	to		11.21		13,712,474		0.86			0.00		to	1.50			17.03		to	15.30
	12/31/2012		1,248,575		10.27	to		9.72		12,426,995		0.77			0.00		to	1.50			0.98		to	(0.52	)
	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
TA PIMCO Total Return Initial Class
	12/31/2013		1,680,310		14.74	to		12.51		27,193,749		2.00			0.00		to	1.50			(2.55	)	to	(3.99	)
	12/31/2012		2,217,501		15.12	to		13.02		37,217,010		4.20			0.00		to	1.50			7.55		to	5.95
	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
TA Systematic Small/Mid Cap Value Initial Class
	12/31/2013		4,447,355		22.17	to		16.00		132,634,531		0.50			0.00		to	1.50			36.32		to	34.30
	12/31/2012		1,867,035		16.26	to		11.91		41,008,806		1.00			0.00		to	1.50			16.39		to	14.66
	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
TA T. Rowe Price Small Cap Initial Class
	12/31/2013		2,153,737		22.45	to		20.00		55,234,542		0.08			0.00		to	1.50			44.07		to	41.94
	12/31/2012		1,599,090		15.58	to		14.09		28,558,454		—			0.00		to	1.50			15.69		to	13.97
	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
TA Vanguard ETF - Balanced Initial Class
	12/31/2013		69,037		13.23	to		12.91		870,501		1.25			0.00		to	1.50			11.76		to	10.11
	12/31/2012		42,347		11.84	to		11.73		482,240		1.31			0.00		to	1.50			8.67		to	7.06
	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
TA Vanguard ETF - Growth Initial Class
	12/31/2013		269,355		13.50	to		13.46		3,470,733		1.54			0.00		to	1.50			19.09		to	17.33
	12/31/2012		128,885		11.34	to		11.48		1,405,111		1.47			0.00		to	1.50			11.79		to	10.13
	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
TA WMC Diversified Growth Initial Class
	12/31/2013		42,951,581		14.05	to		13.20		877,032,776		1.05			0.00		to	1.50			32.46		to	30.51
	12/31/2012		46,560,857		10.60	to		10.11		726,823,605		0.31			0.00		to	1.50			13.17		to	11.49
	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

S-30

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

December 31, 2013

4. Financial Highlights (continued)

⁽¹⁾  See footnote 1

* 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 subaccount, 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 2012, total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Effective 2011, expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return.

S-31

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

December 31, 2013

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 Tax

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-32

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account

Notes to Financial Statements

December 31, 2013

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

Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon daily unadjusted quoted prices, therefore are considered Level 1.

9. Subsequent Events

The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition or disclosure in the financial statements.

S-33

STATEMENT OF ADDITIONAL INFORMATION

May 1, 2004

WRL FREEDOM ELITE ADVISOR^SM

issued through

WRL Series Life Account

by

Western Reserve Life Assurance Co. of Ohio

570 Carillon Parkway

St. Petersburg, Florida 33716

1-800-851-9777

(727) 299-1800

This Statement of Additional Information (“SAI”) expands upon subjects discussed in the current prospectus for the WRL Freedom Elite Advisor^SM 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, 2004 by calling 1-800-851-9777 (Monday – Friday from 8:30 a.m. – 7:00 p.m. Eastern time), or by writing to the administrative office at, Western Reserve Life, P.O. Box 5068, Clearwater, Florida 33758-5068. 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 AEGON/Transamerica Series Fund, Inc. – Initial Class, Access Variable Insurance Trust and Fidelity Variable Insurance Products Fund – Service Class 2 Shares.

AG08701-05/2004

Table of Contents

Glossary	1
The Policy – General Provisions	4
Ownership Rights	4
Our Right to Contest the Policy	5
Suicide Exclusion	5
Misstatement of Age or Gender	5
Modifying the Policy	5
Mixed and Shared Funding	5
Addition, Deletion, or Substitution of Investments	6
Additional Information	6
Settlement Options	6
Additional Information about Western Reserve and the Separate Account	7
Legal Matters	8
Variations in Policy Provisions	8
Personalized Illustrations of Policy Benefits	8
Sale of the Policies	8
Reports to Owners	9
Records	9
Independent Auditors	9
Experts	9
Financial Statements	9
Underwriters	10
Underwriting Standards	10
IMSA	10
Performance Data	10
Other Performance Data in Advertising Sales Literature	10
Western Reserve’s Published Ratings	11
Index to Financial Statements	11
WRL Series Life Account	11
Western Reserve Life Assurance Co. of Ohio	11

1

Glossary

accounts	The options to which you can allocate your money. The accounts include the fixed account and the subaccounts in the separate account.
attained age	The issue age of the person insured, plus the number of completed years since the Policy date.
Base Policy	The WRL Freedom Elite Advisor variable life insurance policy without any supplemental riders.
beneficiary(ies)	The person or persons you select to receive the death benefit from this 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. We will reduce the death benefit proceeds by the amount of any outstanding loan amount, including any accrued loan interest, and any due and unpaid monthly deductions.
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.
free-look period	The period during which you may return the Policy and receive a refund as described in the prospectus. The length of the free-look period varies by state. The free-look period is listed in the Policy.
funds	Investment companies that 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.
in force	While coverage under the Policy is active and the insured’s life remains insured.
initial premium	The amount you must pay before insurance coverage begins under this Policy. The initial premium is shown on the schedule page of your Policy.
insured	The person whose life is insured by this 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 deduction and any outstanding loan amount, including any accrued loan interest, and you have not made a sufficient payment by the end of a grace period.
loan reserve account	A part of the fixed account to which amounts are transferred as collateral for Policy loans.
maturity date	The Policy anniversary nearest the insured’s 100th 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.

1

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 will adjust the minimum monthly guarantee premium if you change death benefit options, take a cash withdrawal or loan, decrease the specified amount, or add, increase or decrease a rider, and you may need to pay additional premiums in order to keep the no lapse guarantee in place.
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 deduction	The monthly Policy charge, plus the monthly cost of insurance, plus the monthly charge for any riders added to your Policy.
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.
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 outstanding loan amount and accrued loan interest.
no lapse date	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 twentieth Policy anniversary, whichever is earlier. For a Policy issued to an insured ages 61-85, the no lapse date is the fifth Policy anniversary. The no lapse date is specified in your Policy.
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.
office	Our administrative office and mailing address is P.O. Box 5068, Clearwater, Florida 33758-5068. Our street address is 570 Carillon Parkway, St. Petersburg, Florida 33716. Our phone number is 1-800-851-9777. Our hours are Monday - Friday from 8:30 a.m. - 7:00 p.m. Eastern time.
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, the initial premium payment has been received, and we begin to make the monthly deductions. The Policy date is shown on the schedule page of your Policy. If you request, we may backdate a Policy by assigning a Policy date earlier than the date the Policy is issued. We measure Policy months, years, and anniversaries from the Policy date.
portfolio	One of the separate investment portfolios of a fund.
premiums	All payments you make under the Policy other than loan repayments.
premium expense level	The amount of premium used to determine the charge applied to premium payments.
reallocation account	That portion of the fixed account where we hold the net premium(s) from the record date until the reallocation date.

2

reallocation date	The date we reallocate all cash value held in the reallocation account to the fixed account and subaccounts you selected on your application. We place your net premium in the reallocation account only if your state requires us to return the full premium in the event you exercise your free-look right. In those states the reallocation date is the Policy date, plus the number of days in your state’s free-look period, plus five days. In all other states, the reallocation date is the Policy date.
record date	The date we record your Policy on our books as an in force Policy. The record date is generally the Policy date, unless the Policy is backdated.
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 is the amount shown on the Base Policy’s schedule page that you receive when the Policy is issued. The specified amount in force is the initial specified amount, adjusted for any decreases in the Base Policy’s specified amount. Other events such as a request to decrease the specified amount, a change in death benefit option or take a cash withdrawal (if you choose Option A death benefit) may also affect the specified amount in force.
subaccount	A subdivision of the separate account that invests exclusively in shares of one investment portfolio of a fund.
termination	When the insured’s life is no longer insured under the Policy.
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.
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 (currently 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   (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 office.
you, your (owner or policyowner)	The person entitled to exercise all rights as owner under the Policy.

3

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 at our office 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 at our office.
	•       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 office.
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 at our office.
	•       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 office.
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:
	g       bound by any assignment unless we receive a written notice of the assignment at   our office;
	g       responsible for the validity of any assignment;
	g       liable for any payment we made before we received written notice of the   assignment at our office; or
	g       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.

4

Our Right to Contest the Policy

In issuing this 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.

In the absence of fraud, we cannot bring any legal action to contest the validity of the Policy after the Policy 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.

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 this Policy or waive any of our rights or requirements under this Policy. Any modification or waiver must be in writing. No registered representative may bind us by making any promise not contained in this Policy.

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

Mixed and Shared Funding

In addition to the separate account, shares of the portfolios are also sold to other separate accounts that we (or our affiliates) establish to support variable annuity contracts and variable life insurance policies. It is possible that, in the future, it may become disadvantageous for variable life insurance separate accounts and variable annuity separate accounts to invest in the portfolios simultaneously. Neither the funds nor we currently foresee any such disadvantages, either to variable life insurance policyowners or to variable annuity contract owners. However, each fund’s Board of Directors/Trustees will monitor events in order to identify any material conflicts between the interests of such variable life insurance policyowners and variable annuity contract owners, and will determine what action, if any, it should take. Such action could include the sale of portfolio shares by one or more of the separate accounts, which could have adverse consequences. Material conflicts could result from, for example, (1) changes in state insurance laws, (2) changes in federal income tax laws, or (3) differences in voting instructions between those given by variable life insurance policyowners and those given by variable annuity contract owners.

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.

5

Addition, Deletion, or Substitution of Investments

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 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.

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

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 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 $100, 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 insured’s date of death.

Under any settlement option, the dollar amount of each payment will depend on four things:

• the amount of the surrender on the surrender date or death benefit proceeds on the insured’s date of death;

• the interest rate we credit on those amounts (we guarantee a minimum annual interest rate of 3.0%);

• the mortality tables we use; and

• 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.

6

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:
	g     the full amount paid to the payee before the payee’s death; or
	g     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.

Additional Information about Western Reserve and the Separate Account

Western Reserve is a stock life insurance company that is wholly-owned by First AUSA Life Insurance Company, which, in turn, is wholly-owned indirectly by AEGON USA, Inc., which conducts most of its operations through subsidiary companies engaged in the insurance business or in providing non-insurance financial services. Western Reserve’s office is located at 570 Carillon Parkway, St. Petersburg, Florida 33716-1202 and the mailing address is P.O. Box 5068, Clearwater, Florida 33758-5068.

Western Reserve was 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 AFSG to a limit of $10 million.

7

Legal Matters

Sutherland Asbill & Brennan LLP of Washington, D.C. has provided advice on certain matters relating to the federal securities laws. All matters of Ohio law pertaining to the Policy have been passed upon by Thomas E. Pierpan, Vice President, Senior Counsel and Assistant Secretary of Western Reserve.

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 restrictions on use of the fixed account and different interest rates charged and credited on Policy loans. Please refer to your Policy, since 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

The Policy will be sold by individuals who are licensed as our life insurance agents and who are also registered representatives of broker-dealers having written sales agreements for the Policy with Western Reserve and AFSG Securities Corporation (“AFSG”), the principal underwriter of the Policy. Both AFSG and Western Reserve are indirect subsidiaries of AEGON U.S. Corporation. AFSG is located at 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499. AFSG is registered with the SEC under the Securities Exchange Act of 1934 as a broker-dealer, and is a member of the National Association of Securities Dealers, Inc. (“NASD”). AFSG was organized on March 12, 1986 under the laws of the State of Pennsylvania. The Principal Underwriting Agreement between AFSG and Western Reserve on behalf of its separate account went into effect May 1, 1999. More information about AFSG is available at http://www.nasdr.com or by calling 1-800-289-9999. The sales commission paid to broker-dealers during 2003 was, on average:

• 17.44% of all premiums you make up to the premium expense level in the first Policy year, plus

• 12.00% of all premiums you make up to the premium expense level in Policy years 2 through 10; plus

• 3.00% of all premiums in excess of the premium expense level in Policy years 1 – 10; plus

• 3.00% of all premiums in Policy years 11+.

We will pay an additional trail commission of up to 0.50% of the Policy’s cash value on the Policy anniversary for Policy years 5 – 10 and 1.00% of the Policy’s cash value on the Policy anniversary for Policy years 11+ and each anniversary thereafter where the cash value (minus amounts attributable to loans) equals at least $5,000. In addition, certain production, persistency and managerial bonuses may be paid.

To the extent permitted by NASD rules, promotional incentives or payments may also be provided to broker-dealers based on sales volumes, the assumption of wholesaling functions or other sales-related criteria. Payments may also be made for other services that do not directly involve the sale of the Policies. These services may include the recruitment and training of personnel, production of promotional literatures, and similar services.

We intend to recoup commissions and other sales expenses through: the premium expense charge, the cost of insurance charge, the mortality and expense risk charge, and earnings on amounts allocated under the Policies to the fixed account and the loan account. Commissions paid on sales of the Policies, including other sales incentives, are not directly charged to the policyowners or the separate account.

8

We offer the Policies to the public on a continuous basis. We anticipate continuing to offer the Policies, but reserve the right to discontinue the offering.

AFSG Securities Corporation, the principal underwriter for the Policy, will receive 12b-1 fees that equal 0.25% of average daily portfolio assets of the Fidelity VIP Fund, and 0.25 of average daily net assets of the AVIT portfolio shares held for the Policies as compensation for providing certain shareholder support services. AFSG will also receive an additional fee based on the value of shares of the Fidelity VIP Fund and the AVIT portfolios held for the Policies as compensation for providing certain recordkeeping services.

During fiscal years 2003, 2002 and 2001, AFSG received $67,236,938, $82,236,981, and $104,819,449, respectively, as sales compensation with respect to all Policies issued through the separate account. No amounts were retained by AFSG.

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:

P	the current cash value	P	any activity since the last report
P	the current net surrender value	P	projected values
P	the current death benefit	P	investment experience of each subaccount
P	outstanding loans	P	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 Auditors

The accounting firm of Ernst & Young LLP, independent auditors, provided audit services to the separate account and Western Reserve for the year ended December 31, 2003. The principal business address of Ernst & Young LLP is 801 Grand Avenue, Suite 3400, Des Moines, Iowa 50309-2764.

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.

Financial Statements

Western Reserve’s financial statements and schedules appear on the following pages. These financial statements and schedules should be distinguished from the separate account’s financial statements and you should consider these financial statements and schedules only as bearing upon Western Reserve’s ability to meet our obligations under the Policies. You should not consider our financial statements and schedules as bearing upon the investment performance of the assets held in the separate account.

9

Western Reserve’s financial statements and schedules at December 31, 2003 and 2002 and for each of the three years in the period ended December 31, 2003, have been prepared on the basis of statutory accounting principles rather than accounting principles generally accepted in the United States.

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 will vary by the insured’s gender, issue age on the Policy date, and rate class. We currently place insureds into the following rate classes:

• ultimate select (preferred) non-tobacco use;

• select (non-preferred) non-tobacco use;

• ultimate standard (preferred) tobacco use;

• standard (non-preferred) tobacco use; and

• juvenile – under 18.

We also place insureds in various sub-standard rate classes, which involve a higher mortality risk and higher charges. We generally charge higher rates for insureds who use tobacco. We currently charge lower cost of insurance rates for insureds who are in an “ultimate class.” An ultimate class is only available if our underwriting guidelines require you to take a blood test because of the specified amount you have chosen.

IMSA

We are a member of the Insurance Marketplace Standards Association (“IMSA”). IMSA is an independent, voluntary organization of life insurance companies. It promotes high ethical standards in the sales and advertising of individual life insurance, long-term care insurance and annuity products. Through its Principles and Code of Ethical Market Conduct, IMSA encourages its member companies to develop and implement policies and procedures to promote sound market practices. Companies must undergo a rigorous self and independent assessment of their practices to become a member of IMSA. The IMSA logo in our sales literature shows our ongoing commitment to these standards. You may find more information about IMSA and its ethical standards at www.imsaethics.org in the “Consumer” section or by contacting IMSA at 240-497-2900.

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);

g 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;

10

g 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:

g certificates of deposit;

g savings accounts and U.S. Treasuries;

g certain interest rate and inflation indices (e.g., the Consumer Price Index); or

g indices measuring the performance of a defined group of securities recognized by investors as representing a particular segment of the securities markets (e.g., Donoghue Money Market Institutional Average, Lehman Brothers Corporate Bond Index, or Lehman Brothers Government Bond 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 fund or it’s portfolios, or to their performance.

Index to Financial Statements

WRL Series Life Account:

Report of Independent Auditors, dated February 5, 2004

Statements of Assets and Liabilities at December 31, 2003

Statements of Operations for the year ended December 31, 2003

Statements of Changes in Net Assets for the years ended December 31, 2003 and 2002

Notes to the Financial Statements

Western Reserve Life Assurance Co. of Ohio

Report of Independent Auditors, dated February 13, 2004

Balance Sheets Statutory-Basis at December 31, 2003 and 2002

Statements of Operations Statutory-Basis for the years ended December 31, 2003, 2002 and 2001

Statements of Changes in Capital and Surplus Statutory-Basis for the years ended December 31, 2003, 2002 and 2001

Statements of Cash Flow Statutory-Basis for the years ended December 31, 2003, 2002 and 2001

Notes to Financial Statements—Statutory-Basis

Statutory-Basis Financial Statement Schedules

11

PART C - OTHER INFORMATION

Item	Exhibits
26.
	(a)		Board of Directors Resolutions
		(i)	Resolution of the Board of Directors of Western Reserve establishing the separate account (1)
		(ii)	Resolution of TPLIC Board authorizing Plan of Merger and attached Plan of Merger (8)
		(iii)	Resolution of WRL Board of Directors authorizing Plan of Merger and attached Plan of Merger (8)
		(iv)	Resolution for Authorization of Re-domestication of Separate Account (8)
	(b)		Not Applicable
	(c)		Underwriting Contracts
		(i)	Amended and Restated Principal Underwriting Agreement between Transamerica Capital Inc. and Monumental Life dated March 1, 2013 (5)
		(ii)	Amendment to the Amended and Restated Principal Underwriting Agreement between Transamerica Capital Inc. and Western Reserve dated July 31, 2014 (8)
	(d)		Contracts
		(i)	Specimen Flexible Premium Variable Life Insurance Policy (3)
	(e)		Applications
		(i)	Application for Flexible Premium Variable Life Insurance Policy (2)
	(f)		Depositor’s Certification of Incorporation and By-Laws
		(i)	Restated Articles of Incorporation and Articles of Re-domestication of TPLIC (formerly, Monumental Life Insurance Company) (8)
		(ii)	Amended By-Laws of TPLIC (formerly, Monumental Life Insurance Company (8)
	(g)		Reinsurance Contracts
		(i)	Reinsurance Treaty dated September 30, 2000 and Amendments Thereto (2)
		(ii)	Reinsurance Treaty dated July 1, 2002 and Amendments Thereto (2)
	(h)		Participation Agreements
		(i)	Participation Agreement among Transamerica Series Trust and Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company, Monumental Life Insurance Company, and Western Reserve Life Assurance Co. of Ohio dated May 1, 2013 (7)
		(ii)	Amendment No. 1 to Participation Agreement among Transamerica Series Trust and Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company, Monumental Life Insurance Company, and Western Reserve Life Assurance Co. of Ohio dated May 1, 2013 (7)
		(iii)	Revision to Schedule A dated September 3, 2013 of the Participation Agreement among Transamerica Series Trust and Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company, Monumental Life Insurance Company, and Western Reserve Life Assurance Co. of Ohio dated May 1, 2013 (7)
		(iv)	Revision to Schedule A dated September 18, 2013 of the Participation Agreement among Transamerica Series Trust and Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company, Monumental Life Insurance Company, and Western Reserve Life Assurance Co. of Ohio dated May 1, 2013 (7)
		(v)	Revision to Schedule A dated October 31, 2013 of the Participation Agreement among Transamerica Series Trust and Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company, Monumental Life Insurance Company, and Western Reserve Life Assurance Co. of Ohio dated May 1, 2013 (7)
		(vi)	Amended and Restated Participation Agreement Among Variable Insurance Products’ Funds, Fidelity Distributors Corporation and Western Reserve dated February 28, 2014 (8)
		(vii)	Amendment No. 1 to Amended and Restated Participation Agreement Among Variable Insurance Products’ Funds, Fidelity Distributors Corporation and Western Reserve dated October 1, 2014 (8)
		(viii)	Summary Prospectus Agreement between WRL and Fidelity Distributors Corporation dated May 1, 2011 (6)
	(i)		Not Applicable

C – 1

(j)		Not Applicable
(k)		Legal Opinion
	(i)	Opinion and Consent of Arthur D. Woods, Esq. (9)
(l)		Actuarial Opinion
	(i)	Opinion and Consent of Lorne Schinbein (2)
(m)		Calculation
	(i)	Sample Hypothetical Illustration (2)
(n)		Other Opinions:
	(i)	Written Consent of Ernst & Young LLP (9)
(o)		Not Applicable
(p)		Not Applicable
(q)		Redeemability Exemption
	(i)	Memorandum describing issuance, transfer and redemption procedures, as amended (4)
(r)		Powers of Attorney for: (8)
	(i)	Mark W. Mullin
	(ii)	Arthur C. Schneider
	(iii)	Brenda K. Clancy
	(iv)	Jason Orlandi
	(v)	Robert J. Kontz
	(vi)	C. Michiel van Katwijk
	(vii)	Eric J. Martin
	(viii)	Scott W. Ham

(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 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.

(3) 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.

(4) 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.

(5) This exhibit was previously filed on Post-Effective amendment No. 9 to Form N-4 Registration Statement dated April 25, 2013
(File No. 333-146323) and is incorporated herein by reference.

(6) 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.

(7) This exhibit previously filed on Post-Effective amendment No. 16 to Form N-6 Registration Statement dated April 21, 2014
(File No. 333-110315) and is incorporated herein by reference.

(8) This exhibit was previously filed on the Initial Filing to Form N-6 Registration Statement dated October 1, 2014
(File No. 333-199047) and is incorporated herein by reference.

(9) Filed herewith.

Item 27. Directors and Officers of the Depositor

Name	Principal Business Address	Position and Offices with Depositor
Mark W. Mullin	(2)	Director
Brenda K. Clancy	(1)	Director, Chairman of the Board, Chief Executive Office and President
Scott W. Ham	(1)	Director and Division President – Life & Protection
Arthur C. Schneider	(1)	Director, Senior Vice President and Chief Tax Officer
Robert J. Kontz	(1)	Director and Vice President
Eric J. Martin	(1)	Senior Vice President and Corporate Controller
C. Michiel van Katwijk	(1)	Director, Chief Financial Officer, Senior Vice President and Treasurer
Jason Orlandi	(1)	Director, Secretary, Senior Vice President and General Counsel

(1) 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499-0001

(2) Two East Chase St., Baltimore, MD 21202

C – 2

Item 28. Persons Controlled 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	Sole Member: Yarra Rapids, LLC	Real estate investments
239 West 20th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
313 East 95th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
319 East 95th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
44764 Yukon Inc.	Canada	100% Creditor Resources, Inc.	Holding company
AEGON Alliances, Inc.	Virginia	100% Commonwealth General Corporation	Insurance company marketing support
AEGON Asset Management Services, Inc.	Delaware	100% AUSA Holding Company	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 174,588,712 shares of Common Stock; 1,500 shares of Series II Preferred stock; 2 shares of Series III 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 Direct & Affinity Marketing Services Australia Pty Limited	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Marketing/operations company
AEGON Direct & Affinity Marketing Services Co., Ltd.	Japan	100% AEGON DMS Holding B.V.	Marketing company
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 & Affinity Marketing Services (Thailand) Limited	Thailand	97% Transamerica International Direct Marketing Consultants, LLC; remaining 3% held by various AEGON employees	Marketing of insurance products in Thailand
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 Europe Ltd.	United Kingdom	100% Cornerstone International Holdings, Ltd.	Marketing

C – 3

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 Korea Co., Ltd.	Korea	100% AEGON DMS Holding B.V.	Provide consulting services ancillary to the marketing of insurance products overseas.
AEGON Direct Marketing Services Mexico, S.A. de C.V.	Mexico	100% AEGON DMS Holding B.V.	Provide management advisory and technical consultancy services.
AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V.	Mexico	100% AEGON DMS Holding B.V.	Provide marketing, trading, telemarketing and advertising services in favor of any third party, particularly in favor of insurance and reinsurance companies.
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 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 (91.2389%); Monumental Life Insurance Company (8.7611%)	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 Structured Settlements, Inc.	Kentucky	100% Commonwealth General Corporation	Administers structured settlements of plaintiff’s physical injury claims against property and casualty insurance companies.

C – 4

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AEGON U.S. Holding Corporation	Delaware	100% Transamerica Corporation	Holding company
AEGON USA Asset Management Holding, LLC	Iowa	100% AUSA Holding Company	Holding company
AEGON USA Investment Management, LLC	Iowa	100% AEGON USA Asset Management Holding, LLC	Investment advisor
AEGON USA Real Estate Services, Inc.	Delaware	100% AEGON USA Realty Advisors, Inc.	Real estate and mortgage holding company
AEGON USA Realty Advisors, LLC	Iowa	Sole Member - AEGON USA Asset Management Holding, LLC	Administrative and investment services
AEGON USA Realty Advisors of California, Inc.	Iowa	100% AEGON USA Realty Advisors, Inc.	Investments
AEGON USA, 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
AMTAX HOLDINGS 308, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 347, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 388, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing

C – 5

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AMTAX HOLDINGS 483, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 546, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 559, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 561, LLC	Ohio	TAHP Fund VII, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 567, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 588, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 613, LLC	Ohio	Garnet LIHTC Fund VII, LLC - 99% member; Cupples State LIHTC Investors, LLC - 1% member; TAH Pentagon Funds, LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 639, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 649, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 672, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 713, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
Apollo Housing Capital Arrowhead Gardens, LLC	Delaware	Garnet LIHTC Fund XXXV, LLC - sole Member	Affordable housing

C – 6

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Asia Investment Holding 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
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, LP	California	Partners: 69.995% Transamerica Life Insurance Company; 29.995% Monumental Life Insurance Company; 0.01% Transamerica Affordable housing, Inc.	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
Canadian Premier Life Insurance Company	Canada	100% Transamerica Life Canada	Insurance company
CBC Insurance Revenue Securitization, LLC	Delaware	100% Clark Consulting, LLC	Special purpose
Cedar Funding, Ltd.	Cayman Islands	100% Transamerica Life Insurance Company	Investments
Clark, LLC	Delaware	Sole Member - Diversified Retirement Corporation	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% AEGON Canada ULC	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 Company	Credit insurance

C – 7

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
CRI Canada Ltd.	Canada	44764 Yukon Inc. owns all preferred shares of stock; various non-AEGON entities/investors own common shares of stock	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
Erfahrungsschatz GmbH	Germany	100% Cornerstone International Holdings, Ltd.	Marketing/membership
FD TLIC, Limited Liability Company	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
Fong LCS Associates, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
Fourth FGP LLC	Delaware	100% FGH USA LLC	Real estate
Garnet Assurance Corporation	Kentucky	100%Transamerica Life Insurance Company	Investments
Garnet Assurance Corporation II	Iowa	100% Commonwealth General Corporation	Business investments
Garnet Assurance Corporation III	Iowa	100% Transamerica Life Insurance Company	Business investments
Garnet Community Investments, LLC	Delaware	100% Monumental Life Insurance Company	Investments

C – 8

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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

C – 9

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 Community Investments XXXII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXIII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXIV, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXV, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXVI, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXVII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXVIII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXIX, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XL, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XLI, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XLII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet LIHTC Fund II, LLC	Delaware	Members: Garnet Community Investments II, LLC (99.99%); Transamerica Life Insurance Company (0.01%)	Investments
Garnet LIHTC Fund III, LLC	Delaware	Members: Garnet Community Investments III, LLC (0.01%); Jefferson-Pilot Life Insurance Company, a non-AEGON affiliate (99.99%)	Investments

C – 10

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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

C – 11

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%); ING USA Annuity and Life Insurance company, a non-affiliate of AEGON (12.999%), and ReliaStar Life Insurance Company, a non-affiliate of AEGON (86.991%).	Investments
Garnet LIHTC Fund XVIII, LLC	Delaware	Members: Garnet Community Investments XVIII, LLC (0.01%); Verizon Capital Corp., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIX, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XX, LLC	Delaware	Sole Member - Garnet Community Investments XX, LLC	Investments
Garnet LIHTC Fund XXI, LLC	Delaware	100% Garnet Community Investments, LLC	Investments

C – 12

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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	Members: Garnet Community Investments XXIV, LLC (0.01% as Managing Member); Transamerica Life Insurance Company (21.26%); non-affiliates of AEGON: New York Life Insurance Company (25.51%), New York Life Insurance and Annuity Corporation (21.73%) and Principal Life Insurance Company (31.49%)	Investments
Garnet LIHTC Fund XXV, LLC	Delaware	Members: Garnet Community Investment XXV, LLC (0.01%); Garnet LIHTC Fund XXVIII LLC (1%); non-affiliates of AEGON: Mt. Hamilton Fund, LLC (97.99%); Google Affordable housing I LLC (1%)	Investments
Garnet LIHTC Fund XXVI, LLC	Delaware	Members: Garnet Community Investments XXVI, LLC (0.01%); American Income Life Insurance Company, a non-affiliate of AEGON (99.99%)	Investments
Garnet LIHTC Fund XXVII, LLC	Delaware	Members: Garnet Community Investments XXVII, LLC (0.01%); Transamerica Life Insurance Company (16.7045%); non-affiliates of AEGON: Aetna Life Insurance Company (30.2856%); New York Life Insurance Company (22.7142%); ProAssurance Casualty Company (3.6343%); ProAssurance Indemnity Company (8.4800%); State Street Bank 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

C – 13

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XXX, LLC	Delaware	Garnet Community Investments XXX, LLC (0.01%); non-affiliate of AEGON, New York Life Insurance Company (99.99%)	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
Garnet LIHTC Fund XXXII, LLC	Delaware	Sole Member: Garnet Community Investments XXXVII, LLC.	Investments
Garnet LIHTC Fund XXXIII, LLC	Delaware	Members: Garnet Community Investment XXXIII, LLC (0.01%); non-affiliate of AEGON, NorLease, Inc. (99.99%)	Investments
Garnet LIHTC Fund XXXIV, LLC	Delaware	Members: non-AEGON affiliate, U.S. Bancorp Community Development Corporation (99.99%); Garnet Community Investments XXXIV, LLC (.01%)	Investments
Garnet LIHTC Fund XXXV, LLC	Delaware	Members: Garnet Community Investment XXXV, LLC (0.01%); non-affiliate of AEGON, Microsoft Corporation (99.99%)	Investments
Garnet LIHTC Fund XXXVI, LLC	Delaware	Members: Garnet Community Investments XXXVI, LLC (1%) as managing member; JPM Capital Corporation, a non-AEGON affiliate (99%) as investor member	Investments
Garnet LIHTC Fund XXXVII, LLC	Delaware	Members: Garnet Community Investments XXXVII, LLC (.01%); LIH Realty Corporation, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XXXVIII, LLC	Delaware	Sole Member - Garnet Community Investments XXXVIII, LLC	Investments
Garnet LIHTC Fund XXXIX, LLC	Delaware	Sole Member - Garnet Community Investments XXXIX, LLC	Investments
Garnet LIHTC Fund XL, LLC	Delaware	Sole Member - Garnet Community Investments XL, LLC	Investments
Garnet LIHTC Fund XLI, LLC	Delaware	Sole Member - Garnet Community Investments XL, LLC	Investments
Garnet LIHTC Fund XLII, LLC	Delaware	Sole Member - Garnet Community Investments XL, LLC	Investments
Global Preferred Re Limited	Bermuda	100% AEGON USA, LLC	Reinsurance
Harbor View Re Corp.	Hawaii	100% Commonwealth General Corporation	Captive insurance company
Horizons Acquisition 5, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company

C – 14

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Horizons St. Lucie Development, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company
Imani Fe, LP	California	Partners: Garnet LIHTC Fund XIV, LL (99.99% investor limited partner); Transamerica Affordable housing, Inc. (non-owner manager); non-affiliates of AEGON: ABS Imani Fe, LLC (.0034% class A limited partner); Central Valley Coalition for Affordable housing (.0033% co-managing general partner); Grant Housing and Economic Development Corporation (.0033% managing partner)	Affordable housing
InterSecurities Insurance Agency, Inc.	California	100% Western Reserve Life Assurance Co. of Ohio	Insurance agency
Interstate North Office Park GP, LLC	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park, LP	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park Owner, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
Interstate North Office Park (Land) GP, LLC	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park (Land) LP	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Investors Warranty of America, Inc.	Iowa	100% AUSA Holding Company	Leases business equipment
LCS Associates, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
Legacy General Insurance Company	Canada	100% AEGON Canada ULC	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 Company	Trust company

C – 15

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
McDonald Corporate Tax Credit Fund IV Limited Partnership	Delaware	Partners: Monumental Life Insurance Company - 99.9% General Partner; TAH-McD IV, LLC - 0.10% General Partner	Tax credit fund
MLIC Re I, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
Money Services, Inc.	Delaware	100% AUSA Holding Company	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 Virginia for United Financial Services, Inc.
Monumental General Administrators, Inc.	Maryland	100% AUSA Holding Company	Provides management services to unaffiliated third party administrator
nVISION Financial, Inc.	Iowa	100% AUSA Holding Company	Special-purpose subsidiary
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
Pearl Holdings, Inc. I	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Pearl Holdings, Inc. II	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
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	Members: Transamerica Life Insurance Company (20% 13.1%) and non-affiliates of AEGON and the public holders own the remainder.	Provides protection from default risk of investment grade corporate and sovereign issues of financial obligations.
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

C – 16

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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

C – 17

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
River Ridge Insurance Company	Vermont	100% AEGON Management Company	Captive insurance company
SB Frazer Owner, LLC	Delaware	100% Stonebridge Life Insurance Company	Investments
Second FGP LLC	Delaware	100% FGH USA LLC	Real estate
Selient Inc.	Canada	100% AEGON Canada ULC	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	Dormant
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 International Insurance Ltd.	UK	100% Cornerstone International Holdings Ltd.	General insurance company
Stonebridge Life Insurance Company	Vermont	100% Commonwealth General Corporation	Insurance company
Stonebridge Reinsurance Company	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
TAH-MCD IV, LLC	Iowa	Sole Member - Transamerica Affordable housing, Inc.	Serve as the general partner for McDonald Corporate Tax Credit Fund IV Limited Partnership
TAH Pentagon Funds, LLC	Iowa	Sole Member - Transamerica Affordable housing, Inc.	Serve as a general partner in a lower-tier tax credit entity
TAHP Fund I, LLC	Delaware	Sole Member - Monumental Life Insurance Company	Real estate investments

C – 18

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
TAHP Fund II, 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 estate 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	100% AEGON International B.V.	Voting Trust
The RCC Group, Inc.	Delaware	100% FGH USA LLC	Real estate
THH Acquisitions, LLC	Iowa	Sole Member - Investors Warranty 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
TLIC Oakbrook Reinsurance, Inc.	Iowa	100% Transamerica Life Insurance Company	Limited purpose subsidiary life insurance company
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
Tradition Land Company, LLC	Iowa	Sole Member: Investors Warranty of America, Inc.	Acquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed real estate.
Transamerica Accounts Holding Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica Advisors Life Insurance Company	Arkansas	100% AEGON USA, LLC	Insurance company

C – 19

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Affinity Marketing Corretora de Seguros Ltda.	Brazil	749,000 quota shares owned by AEGON DMS Holding B.V.; 1 quota share owned by AEGON International B.V.	Brokerage company
Transamerica Affinity Services, Inc.	Maryland	100% AEGON Direct Marketing Services, Inc.	Marketing company
Transamerica Affordable housing, Inc.	California	100% Transamerica Realty Services, LLC	General partner LHTC Partnership
Transamerica Agency Network, Inc.	Iowa	100% AUSA Holding Company	Special purpose subsidiary
Transamerica Annuity Service Corporation	New Mexico	100% Transamerica International Holdings, Inc.	Performs services required for structured settlements
Transamerica Asset Management, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 77%; AUSA Holding Co. owns 23%.	Fund advisor
Transamerica Aviation LLC	Delaware	100% TCFC Air Holdings, Inc.	Special purpose corporation
Transamerica (Bermuda) Services Center, Ltd.	Bermuda	100% AEGON International B.V.	Special purpose corporation
Transamerica Capital, Inc.	California	100% AUSA Holding Company	Broker/Dealer
Transamerica Casualty Insurance Company	Ohio	100% AEGON USA, LLC	Insurance company
Transamerica Commercial Finance Corporation, I	Delaware	100% Transamerica Finance Corporation	Holding company
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 Private Limited	India	99.95% AEGON DMS Holding B.V.; non-AEGON affiliate, Keshav Sunderraj owns .05%	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	1,000 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc.; 729 shares owned by AEGON Asset Management Services, Inc.	Broker/Dealer

C – 20

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Financial Life Insurance Company	New York	87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company	Insurance
Transamerica Fund Services, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 44%; AUSA Holding Company owns 56%	Mutual fund
Transamerica Funding LP	U.K.	99% Transamerica Leasing Holdings, Inc.; 1% Transamerica Commercial Finance Corporation, I	Intermodal leasing
Transamerica Home Loan	California	100% Transamerica Consumer Finance Holding Company	Consumer mortgages
Transamerica Insurance Marketing Asia Pacific Pty Ltd.	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Insurance intermediary
Transamerica International Direct Marketing Consultants, LLC	Maryland	51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc.	Provide consulting services ancillary to the marketing of insurance products overseas.
Transamerica International Holdings, Inc.	Delaware	100% AEGON USA, LLC	Holding company
Transamerica International RE (Bermuda) Ltd.	Bermuda	100% AEGON USA, LLC	Reinsurance
Transamerica International Re Escritório de Representação no Brasil Ltd	Brazil	95% Transamerica International Re(Bermuda) Ltd.; 5% Transamerica International Holdings, Inc.	Insurance and reinsurance consulting
Transamerica Investment Management, LLC	Delaware	Sole Member - AEGON USA Asset Management Holding, LLC	Investment advisor
Transamerica Investors Securities Corporation	Delaware	100% Transamerica Retirement Solutions Corporation	Broker/Dealer
Transamerica Leasing Holdings Inc.	Delaware	100% Transamerica Finance Corporation	Holding company
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 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 Oakmont Corporation	California	100% Transamerica International Holdings, Inc.	General partner retirement properties

C – 21

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Oakmont Corporation	California	100% Transamerica International Holdings, Inc.	General partner retirement properties
Transamerica Pacific Insurance Company, Ltd.	Hawaii	26,000 shares common stock owned by Commonwealth General Corporation; 1,000 shares of common stock owned by Transamerica International Holdings, Inc.	Life insurance
Transamerica Premier Life Insurance Company	Iowa	100% Commonwealth General Corporation	Insurance Company
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 education and information regarding retirement and economic issues.
Transamerica Retirement Advisors, Inc.	Delaware	100% Transamerica Retirement Solutions Corporation	Investment advisor
Transamerica Retirement Insurance Agency, Inc.	Delaware	100% Transamerica Retirement Solutions Corporation	Conduct business as an insurance agency.
Transamerica Retirement Solutions Corporation	Delaware	100% AUSA Holding Company	Retirement plan services.
Transamerica Securities Inc.	Canada	100% World Financial Group Holding Company of Canada, Inc.	Mutual fund dealer
Transamerica Small Business Capital, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica 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.
Transamerica Travel and Conference Services, LLC	Iowa	100% Money Services, Inc.	Travel and conference services
Transamerica Vendor Financial Services Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Provides commercial leasing
Transamerica Ventures, LLC	Delaware	100% AUSA Holding Company	Investments
Transamerica Ventures Fund, LLC	Delaware	100% AUSA Holding Company	Investments
United Financial Services, Inc.	Maryland	100% AEGON USA, LLC	General agency
Universal Benefits, LLC	Iowa	100% AUSA Holding Company	Third party administrator

C – 22

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 Reinsurance Limited	Bermuda	51% owned by World Financial Group, Inc; remaining 49% is annually offered to independent contractors associated with WFG Reinsurance Ltd.	Reinsurance
World Financial Group Canada Inc.	Canada	100% World Financial Group Holding Company of Canada Inc.	Marketing
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
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
Yarra Rapids, LLC	Delaware	Members are: Real Estate Alternatives Portfolio 4MR, LLC (49%) and non-AEGON affiliate (51%)	Real estate investments
Zahorik Company, Inc.	California	100% AUSA Holding Company	Inactive
Zero Beta Fund, LLC	Delaware	Members are: Transamerica Life Insurance Company (82.35%); Monumental Life Insurance Company (16.16%); Transamerica Financial Life Insurance Company (1.49%) Manager: AEGON USA Investment Management LLC	Aggregating vehicle formed to hold various fund investments.

C – 23

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
McDonald Corporate Tax Credit Fund IV Limited Partnership	Delaware	Partners: Monumental Life Insurance Company - 99.9% General Partner; TAH-McD IV, LLC - 0.10% General Partner	Tax credit fund
MLIC Re I, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
Money Services, Inc.	Delaware	100% AUSA Holding Company	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 Virginia 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
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
Pearl Holdings, Inc. I	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Pearl Holdings, Inc. II	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
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	Members: Transamerica Life Insurance Company (20% 13.1%) and non-affiliates of AEGON and the public holders own the remainder.	Provides protection from default risk of investment grade corporate and sovereign issues of financial obligations.
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

C – 24

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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

C – 25

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% AEGON Canada ULC	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	Dormant
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 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

C – 26

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
TAH-MCD IV, LLC	Iowa	Sole Member - Transamerica Affordable housing, Inc.	Serve as the general partner for McDonald Corporate Tax Credit Fund IV Limited Partnership
TAH Pentagon Funds, LLC	Iowa	Sole Member - Transamerica Affordable housing, Inc.	Serve as a general partner in a lower-tier tax credit entity
TAHP Fund I, LLC	Delaware	Sole Member - Monumental Life Insurance Company	Real estate investments
TAHP Fund II, 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 estate 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	100% AEGON International B.V.	Voting Trust
The RCC Group, Inc.	Delaware	100% FGH USA LLC	Real estate
THH Acquisitions, LLC	Iowa	Sole Member - Investors Warranty 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
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
Tradition Land Company, LLC	Iowa	Sole Member: Investors Warranty of America, Inc.	Acquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed real estate.
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

C – 27

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Affinity Marketing Corretora de Seguros Ltda.	Brazil	749,000 quota shares owned by AEGON DMS Holding B.V.; 1 quota share owned by AEGON International B.V.	Brokerage company
Transamerica Affinity Services, Inc.	Maryland	100% AEGON Direct Marketing Services, Inc.	Marketing company
Transamerica Affordable housing, Inc.	California	100% Transamerica Realty Services, LLC	General partner LHTC Partnership
Transamerica Agency Network, Inc.	Iowa	100% AUSA Holding Company	Special purpose subsidiary
Transamerica Annuity Service Corporation	New Mexico	100% Transamerica International Holdings, Inc.	Performs services required for structured settlements
Transamerica Asset Management, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 77%; AUSA Holding Co. owns 23%.	Fund advisor
Transamerica Aviation LLC	Delaware	100% TCFC Air Holdings, Inc.	Special purpose corporation
Transamerica (Bermuda) Services Center, Ltd.	Bermuda	100% AEGON International B.V.	Special purpose corporation
Transamerica Capital, Inc.	California	100% AUSA Holding Company	Broker/Dealer
Transamerica Commercial Finance Corporation, I	Delaware	100% Transamerica Finance Corporation	Holding company
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 Private Limited	India	99.95% AEGON DMS Holding B.V.; non-AEGON affiliate, Keshav Sunderraj owns .05%	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	1,000 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc.; 729 shares owned by AEGON Asset Management Services, Inc.	Broker/Dealer

C – 28

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Financial Life Insurance Company	New York	87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company	Insurance
Transamerica Fund Services, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 44%; AUSA Holding Company owns 56%	Mutual fund
Transamerica Funding LP	U.K.	99% Transamerica Leasing Holdings, Inc.; 1% Transamerica Commercial Finance Corporation, I	Intermodal leasing
Transamerica Home Loan	California	100% Transamerica Consumer Finance Holding Company	Consumer mortgages
Transamerica Insurance Marketing Asia Pacific Pty Ltd.	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Insurance intermediary
Transamerica International Direct Marketing Consultants, LLC	Maryland	51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc.	Provide consulting services ancillary to the marketing of insurance products overseas.
Transamerica International Holdings, Inc.	Delaware	100% AEGON USA, LLC	Holding company
Transamerica International RE (Bermuda) Ltd.	Bermuda	100% AEGON USA, LLC	Reinsurance
Transamerica International Re Escritório de Representação no Brasil Ltd	Brazil	95% Transamerica International Re(Bermuda) Ltd.; 5% Transamerica International Holdings, Inc.	Insurance and reinsurance consulting
Transamerica Investment Management, LLC	Delaware	Sole Member - AEGON USA Asset Management Holding, LLC	Investment advisor
Transamerica Investors Securities Corporation	Delaware	100% Transamerica Retirement Solutions Corporation	Broker/Dealer
Transamerica Leasing Holdings Inc.	Delaware	100% Transamerica Finance Corporation	Holding company
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 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 Oakmont Corporation	California	100% Transamerica International Holdings, Inc.	General partner retirement properties

C – 29

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Oakmont Retirement Associates	California	General Partner is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors.	Senior living apartments
Transamerica Pacific Insurance Company, Ltd.	Hawaii	26,000 shares common stock owned by Commonwealth General Corporation; 1,000 shares of common stock owned by Transamerica International Holdings, Inc.	Life insurance
Transamerica Pyramid Properties LLC	Iowa	100% Monumental Life Insurance Company	Realty limited liability company
Transamerica Realty Investment Properties LLC	Delaware	100% Monumental Life Insurance Company	Realty limited liability company
Transamerica Realty Services, LLC	Delaware	AUSA Holding Company - sole Member	Real estate investments
Transamerica Resources, Inc.	Maryland	100% Monumental General Administrators, Inc.	Provides education and information regarding retirement and economic issues.
Transamerica Retirement Advisors, Inc.	Delaware	100% Transamerica Retirement Solutions Corporation	Investment advisor
Transamerica Retirement Insurance Agency, Inc.	Delaware	100% Transamerica Retirement Solutions Corporation	Conduct business as an insurance agency.
Transamerica Retirement Solutions Corporation	Delaware	100% AUSA Holding Company	Retirement plan services.
Transamerica Securities Inc.	Canada	100% World Financial Group Holding Company of Canada, Inc.	Mutual fund dealer
Transamerica Small Business Capital, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica 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.
Transamerica Travel and Conference Services, LLC	Iowa	100% Money Services, Inc.	Travel and conference services
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 Company	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

C – 30

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
WFG Properties Holdings, LLC	Georgia	100% World Financial Group, Inc.	Marketing
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
World Financial Group Canada Inc.	Canada	100% World Financial Group Holding Company of Canada Inc.	Marketing
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
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
Yarra Rapids, LLC	Delaware	Members are: Real Estate Alternatives Portfolio 4MR, LLC (49%) and non-AEGON affiliate (51%)	Real estate investments
Zahorik Company, Inc.	California	100% AUSA Holding Company	Inactive
Zero Beta Fund, LLC	Delaware	Members are: Transamerica Life Insurance Company (82.35%); Monumental Life Insurance Company (16.16%); Transamerica Financial Life Insurance Company (1.49%) Manager: AEGON USA Investment Management LLC	Aggregating vehicle formed to hold various fund investments.

C – 31

Item 29. Indemnification

The Iowa Code (Sections 490.850 et. seq.) provides for permissive indemnification in certain situations, mandatory indemnification in other situations, and prohibits indemnification in certain situations. The Code also specifies procedures for determining when indemnification payments can be made.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Depositor pursuant to the foregoing provisions, or otherwise, the Depositor has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in connection with the securities being registered), the Depositor will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Item 30. Principal 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 B, Separate Account VA Q, 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 BNY, Separate Account VA QNY, TFLIC Separate Account VNY, Separate Account VA-2LNY, TFLIC Separate Account C, Separate Account VA-5NLNY, Separate Account VA-6NY, TFLIC Series Annuity Account, TFLIC Series Life Account, 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 Financial Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for Separate Account VA BB, Separate Account VA CC, Separate Account VL E, 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 Transamerica Premier Life Insurance Company (formerly, 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 Transamerica Series Trust, Transamerica Funds, Transamerica Investors, Inc., Transamerica Partners Funds Group, Transamerica Partners Funds Group II, Transamerica Partners Portfolios, and Transamerica Asset Allocation Variable Funds.

(b)     Directors and Officers of Transamerica Capital, Inc.:

Name	Principal Business Address	Position and Offices with Underwriter
Michael W. Brandsma	(2)	Director, President and Chief Financial Officer
David W. Hopewell	(1)	Director

C – 32

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
Amy Angle	(3)	Assistant Vice President
Elizabeth Belanger	(4)	Assistant Vice President
Dennis P. Gallagher	(5)	Assistant Vice President
Brenda L. Smith	(5)	Assistant Vice President
Lisa Wachendorf	(1)	Assistant Vice President
Arthur D. Woods	(5)	Assistant Vice President
Jeffrey T. McGlaun	(3)	Assistant Treasurer
Carrie N. Powicki	(2)	Secretary
C. Michael van Katwijk	(3)	Treasurer

(1) 4333 Edgewood Road N.E., Cedar Rapids, IA 52499-0001

(2) 4600 S Syracuse St, Suite 1100, Denver, CO 80237-2719

(3) 100 Light Street, Floor B1, Baltimore, MD 21202

(4) 440 Mamaroneck Avenue, Harrison, NY 10528

(5) 570 Carillon Parkway, St. Petersburg, FL 33716

(c) Compensation to Principal Underwriter:

Name of Principal Underwriter	Net Underwriting Discounts and Commissions(1)	Compensation on Redemption	Brokerage Commissions	Compensation
Transamerica Capital, Inc.		0	$12,715,049.51	0

⁽¹⁾  Fiscal Year 2013

* 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 Transamerica Premier Life Insurance Company at 570 Carillon Parkway, St. Petersburg, Florida 33716, 4800 140^th Avenue North, Clearwater, Florida 33762, 12855 Starkey Road, Largo, Florida 33773 or 4333 Edgewood Road, NE, Cedar Rapids, Iowa 52499-0001.

Item 32. Management Services

Not Applicable

Item 33. Fee Representation

Transamerica Premier Life Insurance Company (“Transamerica Premier”) hereby represents that the fees and charges deducted under the WRL Freedom Elite Advisor, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Transamerica Premier.

C – 33

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant, WRL Series Life Account, has duly caused this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of St. Petersburg and in the State of Florida, on this 1st day of October 2014.

WRL SERIES LIFE ACCOUNT
(Registrant)
Transamerica Premier Life Insurance Company
(depositor)
By:	Brenda K. Clancy*
Chairman of the Board, Chief Executive Officer & President of Transamerica Premier Life Insurance Company

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities indicated on October 1, 2014:

Mark W. Mullin*	Director
Mark W. Mullin
Arthur C. Schneider*	Director, Senior Vice President and Chief
Arthur C. Schneider	Tax Officer
Brenda K. Clancy*	Director, Chairman of the Board, Chief Executive
Brenda K. Clancy	Officer and President
Jason Orlandi*	Director, Secretary, Senior Vice
Jason Orlandi	President and General Counsel
Robert J. Kontz*	Director and Vice President
Robert J. Kontz
C. Michiel van Katwijk*	Director, Chief Financial Officer,
C. Michiel van Katwijk	Senior Vice President and Treasurer
Eric J. Martin*	Senior Vice President and Corporate
Eric J. Martin	Controller
Scott W. Ham*	Director and Division President-
Scott W. Ham	Life & Protection
/s/ Arthur D. Woods	Vice President and Senior Counsel
*By: Arthur D. Woods

*By: Arthur D. Woods – Attorney-in-Fact pursuant to Powers of Attorney previously filed.

EXHIBIT INDEX

Exhibit No.	Description         of Exhibit
26 (k) (i)	Opinion and Consent of Arthur D. Woods, Esq.
26(n)(i)	Written Consent of Ernst & Young LLP

EX-26.K.I

26 (k) (i)

Opinion and Consent of Arthur D. Woods, Esq.

TRANSAMERICA PREMIER LIFE INSURANCE COMPANY

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499-0001

October 1, 2014

Board of Directors

Transamerica Premier Life Insurance Company

WRL Series Life Account

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499-0001

Directors:

In my capacity as Vice President and Senior Counsel of Transamerica Premier Life Insurance Company, I have participated in the preparation and review of the Initial Registration Statement on Form N-6 filed with the U.S. Securities and Exchange Commission under the Securities Act of 1933 for the purpose of changing the depositor of certain individual flexible premium variable life insurance policies (WRL Freedom Elite Advisor or the “Policies”) that are funded through WRL Series Life Account (the “Separate Account,” File No. 811-4420) from Western Reserve Life Assurance Co. of Ohio to Transamerica Premier Life Insurance Company (formerly, Monumental Life Insurance Company). I have consulted with outside counsel and examined such documents and such law as I considered necessary and appropriate, and on the basis of such examination and consideration, it is my opinion that:

1. Transamerica Premier Life Insurance Company has been duly organized under the laws of the State of Iowa and is a validly existing corporation.

2. The Separate Account has been duly created and validly exists as a separate account pursuant to Iowa Insurance Law.

3. Iowa Insurance Law Section 508A.1 provides that the portion of the assets of any such separate account equal to the reserves and other policy liabilities with respect to such separate account shall not be chargeable with liabilities arising out of any other business Transamerica Premier Life Insurance Company may conduct.

4. The Policies, when issued as contemplated by the Registration Statement, are legal and binding obligations of Transamerica Premier Life Insurance Company in accordance with their terms.

I hereby consent to the filing of this opinion as an exhibit to the Registration Statement and the use of my name under “Legal Matters” in the Statement of Additional Information.

Very truly yours,

/s/ Arthur D. Woods

Arthur D. Woods, Esq.

Vice President and Senior Counsel

EX-26.N.I

26(n)(i)

Written Consent of Ernst & Young LLP

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the caption “Independent Registered Public Accounting Firm” in the Supplement to the Statement of Additional Information and to the use, in this Initial Registration Statement for WRL Series Life Account (File No. 811-4420) on Form N-6, of our reports: (1) dated April 28, 2014, with respect to the statutory-basis financial statements and schedules of Western Reserve Life Assurance Co. of Ohio; (2) dated April 25, 2014, with respect to the statutory-basis financial statements and schedules of Monumental Life Insurance Company (which changed its name to “Transamerica Premier Life Insurance Company” on July 31, 2014); and (3) dated April 28, 2014, with respect to the financial statements of the subaccounts of WRL Series Life Account, which are available for investment by owners of the WRL Freedom Elite Advisor policies.

/s/ Ernst & Young LLP

Des Moines, IA

October 1, 2014