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

A N D   S U P P L E M E N T A R Y   I N F O R M A T I O N

Transamerica Life Insurance Company

Years Ended December 31, 2020, 2019 and 2018

Transamerica Life Insurance Company

Financial Statements – Statutory Basis

and Supplementary Information

Years Ended December 31, 2020, 2019 and 2018

Contents

Report of Independent Auditors	1
Audited Financial Statements
Balance Sheets – Statutory Basis	3
Statements of Operations – Statutory Basis	4
Statements of Changes in Capital and Surplus – Statutory Basis	5
Statements of Cash Flow – Statutory Basis	7

1. Organization and Nature of Business	9
2. Basis of Presentation and Summary of Significant Accounting Policies	10
3. Accounting Changes and Correction of Error	25
4. Fair Values of Financial Instruments	27
5. Investments	35
6. Premium and Annuity Considerations Deferred and Uncollected	56
7. Policy and Contract Attributes	57
8. Reinsurance	70
9. Income Taxes	74
10. Capital and Surplus	81
11. Securities Lending	82
12. Retirement and Compensation Plans	83
13. Related Party Transactions	85
14. Managing General Agents	92
15. Commitments and Contingencies	92
16. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities	98
17. Reconciliation to Statutory Statement	101
18. Subsequent Events	102
Appendix A –Listing of Affiliated Companies	103
Statutory-Basis Financial Statement Schedules
Summary of Investments – Other Than Investments in Related Parties	106
Supplementary Insurance Information	107
Reinsurance	108

Report of Independent Auditors

To the Board of Directors of

Transamerica Life Insurance Company

We have audited the accompanying statutory-basis financial statements of Transamerica Life Insurance Company (the “Company”), which comprise the balance sheets as of December 31, 2020 and 2019, and the related statements of operations, of changes in capital and surplus, and of cash flow for each of the three years in the period ended December 31, 2020, including the related notes and schedules of supplementary insurance information and reinsurance for each of the three years in the period ended December 31, 2020 and summary of investments - other than investments in related parties as of December 31, 2020 listed in the accompanying index (collectively referred to as the “financial statements”).

Management’s Responsibility for the Financial Statements

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

Auditors’ Responsibility

Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from 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 our 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, we consider internal control relevant to the Company’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 Company’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 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Iowa Insurance Division, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

PricewaterhouseCoopers LLP, One North Wacker, Chicago, IL 60606

T: (312)298-2000, F: (312)298 2001, www.pwc.com/us

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2020 and 2019 or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2020.

Opinion on Statutory Basis of Accounting

In our opinion, the financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities and surplus of the Company as of December 31, 2020 and 2019 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division described in Note 2.

Emphasis of Matters

As discussed in Note 1 to the financial statements, the financial statements give retroactive effect to the mergers of Transamerica Premier Life Insurance Company and MLIC Re I, Inc. into the Company on October 1, 2020, and the merger of Pine Falls Re, Inc. into the Company on December 31, 2020, in transactions accounted for as statutory mergers. Our opinion is not modified with respect to these matters.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

April 14, 2021

Transamerica Life Insurance Company

Balance Sheets – Statutory Basis

(Dollars in Millions)

	December 31
	2020			2019
Admitted assets
Cash, cash equivalents and short-term investments	$	1,832		$	2,442
Bonds		50,444			43,976
Preferred stocks		105			117
Common stocks		3,556			3,376
Mortgage loans on real estate		9,015			7,834
Real estate		56			239
Policy loans		2,037			2,062
Securities lending reinvested collateral assets		2,115			2,004
Derivatives		2,973			1,743
Other invested assets		3,222			3,170
Total cash and invested assets		75,355			66,963
Accrued investment income		697			637
Premiums deferred and uncollected		240			438
Net deferred income tax asset		812			742
Variable annuity reserve hedge offset deferral		–			195
Letter of credit		–			1,870
Other assets		1,344			1,022
Separate account assets		121,820			112,229
Total admitted assets	$	200,268		$	184,096
Liabilities and capital and surplus
Aggregate reserves for policies and contracts	$	50,966		$	45,865
Policy and contract claim reserves		1,257			943
Liability for deposit-type contracts		946			948
Other policyholders’ funds		32			32
Transfers from separate accounts due or accrued		(823	)		(925	)
Funds held under reinsurance treaties		3,889			3,994
Asset valuation reserve		1,198			1,267
Interest maintenance reserve		1,389			1,356
Derivatives		3,493			1,933
Payable for collateral under securities loaned and other transactions		2,755			2,691
Borrowed money		3,486			2,709
Variable annuity reserve hedge offset deferral		145			–
Other liabilities		1,605			1,703
Separate account liabilities		121,820			112,229
Total liabilities		192,158			174,745
Total capital and surplus		8,110			9,351
Total liabilities and capital and surplus	$	200,268		$	184,096

See accompanying notes.

3

Transamerica Life Insurance Company

Statements of Operations – Statutory Basis

(Dollars in Millions)

	Year Ended December 31
	2020			2019			2018
Revenues
Premiums and other considerations	$	16,723		$	15,708		$	14,597
Net investment income		3,361			2,765			2,744
Commissions and expense allowances on reinsurance ceded		661			470			785
Reserve adjustment on reinsurance ceded		(273	)		(128	)		(155	)
Consideration received on reinsurance recapture and novations		2,958			15			183
Fee revenue and other income		2,096			2,150			2,338
Total revenue		25,526			20,980			20,492
Benefits and expenses
Death benefits		2,863			2,358			2,380
Annuity benefits		1,528			1,492			1,442
Accident and health benefits		1,120			1,112			1,124
Surrender benefits		15,352			16,301			15,853
Other benefits		234			230			224
Net increase (decrease) in reserves		4,985			(1,329	)		991
Commissions		1,435			1,481			1,600
Net transfers to (from) separate accounts		(4,850	)		(5,130	)		(4,407	)
IMR adjustment due to reinsurance		–			–			(13	)
General insurance expenses and other		1,780			1,254			1,615
Total benefits and expenses		24,447			17,769			20,809
Gain (loss) from operations before dividends and federal income taxes		1,079			3,211			(317	)
Dividends to policyholders		10			10			7
Gain (loss) from operations before federal income taxes		1,069			3,201			(324	)
Federal income tax (benefit) expense		(109	)		(39	)		(36	)
Net gain (loss) from operations		1,178			3,240			(288	)
Net realized capital gains (losses), after tax and amounts transferred to interest maintenance reserve		113			469			(786	)
Net income (loss)	$	1,291		$	3,709		$	(1,074	)

See accompanying notes.

4

Transamerica Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis

(Dollars in Millions)

Balance at January 1, 2018	Common Stock		Preferred Stock			Treasury Stock			Surplus Notes			Paid-in     Surplus			Special    Surplus    Funds			Unassigned    Surplus			Total Capital and Surplus
As originally presented	$	7	$	1		$	(58	)	$	150		$	3,473		$	90		$	3,689			7,352
Merger of TPLIC, MLIC Re and PFRe		–		–			–			160			1,246			4			896			2,306
Balance at January 1, 2018		7		1			(58	)		310			4,719			94			4,585			9,658
Net income (loss)		–		–			–			–			–			–			(1,074	)		(1,074	)
Change in net unrealized capital gains/losses, net of taxes		–		–			–			–			–			145			1,182			1,327
Change in net deferred income tax asset		–		–			–			–			–			–			168			168
Change in nonadmitted assets		–		–			–			–			–			–			63			63
Change in reserve on account of change in valuation basis		–		–			–			–			–			–			(7	)		(7	)
Change in asset valuation reserve		–		–			–			–			–			–			(12	)		(12	)
Change in surplus as a result of reinsurance		–		–			–			–			–			–			33			33
Change in letter of credit		–		–			–			–			–			–			(82	)		(82	)
Dividends to stockholders		–		–			–			–			–			–			(624	)		(624	)
Return of capital		–		–			–			–			(559	)		–			–			(559	)
Other changes - net		–		(1	)		–			–			3			(7	)		(1	)		(6	)
Balance at December 31, 2018	$	7	$	–		$	(58	)	$	310		$	4,163		$	232		$	4,231		$	8,885
Net income (loss)		–		–			–			–			–			–			3,709			3,709
Change in net unrealized capital gains/losses, net of taxes		–		–			–			–			–			(37	)		(239	)		(276	)
Change in net deferred income tax asset		–		–			–			–			–			–			(160	)		(160	)
Change in nonadmitted assets		–		–			–			–			–			–			124			124
Change in reserve on account of change in valuation basis		–		–			–			–			–			–			(1,218	)		(1,218	)
Change in asset valuation reserve		–		–			–			–			–			–			(252	)		(252	)
Change in surplus as a result of reinsurance		–		–			–			–			–			–			(143	)		(143	)
Change in surplus notes		–		–			–			(250	)		–			–			–			(250	)
Change in treasury stock		–		–			58			–			–			–			–			58
Change in letter of credit		–		–			–			–			–			–			(160	)		(160	)
Dividends to stockholders		–		–			–			–			–			–			(733	)		(733	)
Return of capital		–		–			–			–			(308	)		–			–			(308	)
Other changes - net		–		–			–			–			2			2			71			75
Balance at December 31, 2019	$	7	$	–		$	–		$	60		$	3,857		$	197		$	5,230		$	9,351

Continued on next page.

5

Transamerica Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis

(Dollars in Millions)

	Common Stock		Preferred Stock		Treasury Stock		Surplus Notes			Paid-in Surplus		Special Surplus Funds			Unassigned Surplus			Total Capital and Surplus
Balance at December 31, 2019	$	7	$	–	$	–	$	60		$	3,857	$	197		$	5,230		$	9,351
Net income (loss)		–		–		–		–			–		–			1,291			1,291
Change in net unrealized capital gains/losses, net of tax		–		–		–		–			–		(342	)		216			(126	)
Change in net deferred income tax asset		–		–		–		–			–		–			(126	)		(126	)
Change in nonadmitted assets		–		–		–		–			–		–			201			201
Change in reserve on account of change in valuation basis		–		–		–		–			–		–			14			14
Change in asset valuation reserve		–		–		–		–			–		–			69			69
Change in surplus as a result of reinsurance		–		–		–		–			–		–			(51	)		(51	)
Change in surplus notes		–		–		–		(60	)		–		–			–			(60	)
Change in letter of credit		–		–		–		–			–		–			(1,870	)		(1,870	)
Capital contribution		–		–		–		–			700		–			–			700
Dividends to stockholders		–		–		–		–			–		–			(1,200	)		(1,200	)
Other changes - net		–		–		–		–			5		–			(88	)		(83	)
Balance at December 31, 2020	$	7	$	–	$	–	$	–		$	4,562	$	(145	)	$	3,686		$	8,110

See accompanying notes.

6

Transamerica Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Millions)

	Year Ended December 31
	2020			2019			2018
Operating activities
Premiums and annuity considerations	$	16,785		$	15,551		$	14,618
Net investment income		2,758			2,931			2,843
Other income		2,311			2,379			2,999
Benefit and loss related payments		(20,629	)		(21,328	)		(20,885	)
Net transfers from separate accounts		4,958			5,282			4,688
Commissions and operating expenses		(3,002	)		(2,842	)		(2,957	)
Dividends paid to policyholders		(7	)		(7	)		(7	)
Federal income taxes (paid) received		37			(166	)		(64	)
Net cash provided by (used in) operating activities		3,211			1,800			1,235
Investing activities
Proceeds from investments sold, matured or repaid	$	12,107		$	19,902		$	13,389
Costs of investments acquired		(16,438	)		(18,351	)		(12,543	)
Net change in policy loans		25			15			37
Net cost of investments acquired		(16,413	)		(18,336	)		(12,506	)
Net cash provided by (used in) investing activities	$	(4,306	)	$	1,566		$	883
Financing and miscellaneous activities
Repayment of surplus notes	$	(60	)	$	(250	)	$	–
Capital and paid in surplus received (returned)		705			(248	)		(407	)
Dividends to stockholders		(1,200	)		(725	)		(564	)
Net deposits (withdrawals) on deposit-type contracts		(34	)		(667	)		(331	)
Net change in borrowed money		783			(1,621	)		(1,340	)
Net change in funds held under reinsurance treaties		(105	)		261			279
Net change in payable for collateral under securities lending and other transactions		65			(1,084	)		49
Other cash (applied) provided		331			162			(20	)
Net cash provided by (used in) financing and miscellaneous activities		485			(4,172	)		(2,334	)
Net increase (decrease) in cash, cash equivalents and short-term investments		(610	)		(806	)		(216	)
Cash, cash equivalents and short-term investments:
Beginning of year		2,442			3,248			3,464
End of year	$	1,832		$	2,442		$	3,248

See accompanying notes.

7

Transamerica Life Insurance Company

Statements of Cash Flow (supplemental) – Statutory Basis

(Dollars in Millions)

	Year Ended December 31
Supplemental disclosures of cash flow information	2020			2019			2018
Non-cash activities during the year not included in the Statutory Statements of Cash Flows:
Transfer of bonds, mortgage loans and interest related to affiliated reinsurance recapture	$	2,121		$	–		$	–
Release of funds withheld related to affiliated reinsurance recaptures		500			–			–
Increase of funds withheld related to affiliated reinsurance agreement		(76	)		–			–
Receipt of assets related to nonaffiliated reinsurance recapture		310			–			–
Stock cancellations		–			58			–
Non-cash dividend received from subsidiary		–			11			30
Non-cash dividend to parent company		–			–			60
Investments received for insured securities losses		–			–			47
Other		–			(9	)		12

See accompanying notes.

8

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

December  31, 2020

1. Organization and Nature of Business

Transamerica Life Insurance Company (the Company) is a stock life insurance company owned by Commonwealth General Corporation (CGC). CGC is an indirect, wholly-owned subsidiary of Aegon N.V., a holding company organized under the laws of The Netherlands.

On October 1, 2020, the Company completed mergers with Transamerica Premier Life Insurance Company (TPLIC), an Iowa-domiciled affiliate and MLIC Re I, Inc. (MLIC Re), a Vermont-domiciled subsidiary. On December 31, 2020, the Company completed a merger with Pine Falls Re, Inc. (PFRe), a Vermont-domiciled subsidiary. Also, on July 1, 2019, the Company completed a merger with Transamerica Advisors Life Insurance Company (TALIC), an Arkansas-domiciled affiliate.

The mergers were accounted for in accordance with the Statement of Statutory Accounting Principles (SSAP) No. 68, Business Combinations and Goodwill, as statutory mergers. As such, financial statements for periods prior to the mergers were combined and the recorded assets, liabilities and surplus of TPLIC, MLIC Re, PFRe and TALIC on a US statutory basis were carried forward to the merged company. The common capital stock of TPLIC, MLIC Re, PFRe and TALIC was deemed cancelled by operation of law under the Plans of Merger. Each share of the Company’s capital stock issued and outstanding immediately before the mergers continues to represent one share of the capital stock. The business the Company previously assumed from TPLIC and TALIC and the business previously ceded from the Company to TPLIC, MLIC Re and PFRe is no longer reflected as assumed and ceded risks in the restated merged financials.

Summarized financial information for the Company (which includes TALIC), TPLIC, MLIC Re and PFRe presented separately for periods prior to the merger is as follows.

	Year Ended December 31, 2019
	Company			TPLIC		MLIC Re		PFRe			Eliminations			Merged Totals
Total assets	$	130,223		$	52,517	$	1,120	$	1,507		$	(1,271	)	$	184,096
Total liabilities		123,695			50,216		779		1,326			(1,271	)		174,745
Capital and surplus		6,528			2,301		341		181			–			9,351
Total revenue		16,142			4,634		211		29			(36	)		20,980
Total benefits and expenses		13,157			4,251		150		61			150			17,769
Net income (loss)		3,294			572		61		(32	)		(186	)		3,709
	Year Ended December 31, 2018
	Company			TPLIC		MLIC Re		PFRe			Eliminations			Merged Totals
Total revenue	$	15,437		$	4,873	$	230	$	29		$	(77	)	$	20,492
Total benefits and expenses		16,204			4,233		183		71			118			20,809
Net income (loss)		(1,424	)		536		47		(38	)		(195	)		(1,074	)

9

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Nature of Business

The Company sells individual life insurance, including index universal life, whole life, term life, and final expense life. It also sells a range of variable and fixed annuities. In addition, the Company offers supplemental health insurance, long-term care insurance, life insurance, group annuity contracts and stable value solutions. The Company is licensed in 49 states and the District of Columbia, Guam, Puerto Rico and US Virgin Islands. Sales of the Company’s products are primarily through a network of independent agents and broker-dealers, affiliated agencies, and financial institutions.

2. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Iowa Insurance Division (IID), which practices differ from accounting principles generally accepted in the United States of America (GAAP).

The IID 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, and for determining its solvency under the Iowa Insurance Law. The National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) has been adopted as a component of prescribed practices by the State of Iowa. Prescribed statutory accounting practices include state laws and regulations. Permitted statutory accounting practices encompass accounting practices that are not prescribed.

The following is a summary of the accounting practices permitted and prescribed by the IID and reflected in the Company’s financial statements which differs from NAIC SAP:

The State of Iowa has adopted a prescribed accounting practice that differs from that found in the NAIC SAP related to the reported value of the assets supporting the Company’s guaranteed separate accounts. As prescribed by Iowa Administrative Code 508A.1.4, the Commissioner found that the Company is entitled to value the assets of the guaranteed separate account at amortized cost, whereas the assets would be required to be reported at fair value under SSAP No. 56, Separate Accounts, of the NAIC SAP. There is no impact to the Company’s income or surplus as a result of utilizing this prescribed practice.

10

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

A reconciliation of the Company’s net income (loss) and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of Iowa is shown below:

	SSAP#		F/S Page		F/S Line		2020		2019			2018
Net income (loss), State of Iowa basis State prescribed practices that are an increase(decrease) from NAIC SAP:		XXX		XXX		XXX	$	1,291	$	3,709		$	(1,074	)
Separate account asset valuation		56		NA		NA		–		–			–
State permitted practices that are an increase(decrease) from NAIC SAP:
None								–		–			–
Net income (loss), NAIC SAP		XXX		XXX		XXX	$	1,291	$	3,709		$	(1,074	)
Statutory surplus, state of Iowa basis State prescribed practices that are an increase(decrease) from NAIC SAP:		XXX		XXX		XXX	$	8,110	$	9,351		$	8,885
Separate account asset valuation		56		NA		NA		–		–			–
State permitted practices that are an increase(decrease) from NAIC SAP:
Letter of credit		4		Balance Sheet		Letter of credit		–		(1,870	)		(2,030	)
Hedge reserve offset deferral		86		Balance Sheet; Statement of Changes in Capital and Surplus		Variable annuity reserve hedge offset deferral Special surplus funds - Change in net unrealized capital gains/ losses		–		–			(232	)
Statutory surplus, NAIC SAP		XXX		XXX		XXX	$	8,110	$	7,481		$	6,623

The IID issued a no objection letter in the current year for the Company to present historical permitted practices that differ from that found in the NAIC SAP related to the admission of letters of credit as admitted assets and as an element of capital surplus. Prior to merging with the Company, MLIC Re and PFRe, with the explicit permission of the Deputy Commissioner of the Captive Insurance Division of the Vermont Department of Financial Regulation, included as admitted assets the value of letters of credit serving as collateral for reinsurance credit taken by affiliates in connection with reinsurance agreements. These historical permitted practices were included on a merged entity basis for periods prior to the effective date of the mergers. The letters of credit were for the benefit of the Company and TPLIC. The permitted practice terminated upon the merger of MLIC Re and PFRe into the Company and had no impact at December 31, 2020.

11

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The Company elected early adoption of SSAP No. 108, Derivatives Hedging Variable Annuities Guarantees (SSAP 108) effective July 1, 2019. The early adoption allowed for transition from and release of a similar permitted practice in place with the IID since October 1, 2016 (the Permitted Practice). The Company received approval from the IID on September 4, 2019.

Use of Estimates

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 effects of the following variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material. Significant accounting policies and variances from GAAP are as follows:

Investments

Investments in bonds, except those to which the Securities Valuation Office (SVO) of the NAIC has ascribed a NAIC designation of 6, are reported at amortized cost using the interest method. Bonds containing call provisions, except make-whole call provisions, are amortized to the call or maturity value/date which produces the lowest asset value, often referred to as yield-to-worst method. Bonds ascribed a NAIC designation of 6 are reported at the lower of amortized cost or fair value with unrealized gains and losses reported in changes in capital and surplus. Prepayment penalty or acceleration fees received in the event a bond is liquidated prior to its scheduled termination date are reported as investment income.

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. 26R, Bonds, and therefore, are reported at amortized cost or fair value based upon their 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.

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. These securities are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium using either the retrospective or prospective methods. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. For statutory reporting, the

12

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.

For GAAP, all securities purchased or retained that represent beneficial interests in securitized assets, 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.

The Company closely monitors below investment grade holdings and investment grade issuers where the Company has concerns to determine if an other-than-temporary impairment (OTTI) has occurred. 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. The Company will record a charge to the statements of operations for the amount of the impairment.

For structured securities, cash flow trends and underlying levels of collateral are monitored. An OTTI is considered to have occurred if the fair value of the structured 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 OTTI is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security and the security is in an unrealized loss position. 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. The Company will record a charge to the statements of operations for the amount of the impairments.

For GAAP, 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 OTTI is 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 or the entity will likely not be required to sell the security before recovery, the OTTI 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.

Investments in both affiliated and unaffiliated preferred stocks in good standing (those with NAIC designations RP1 to RP3 and P1 to P3), are reported at cost or amortized cost, depending on the characteristics of the securities. Investments in both affiliated and unaffiliated preferred stocks not in good standing (those with NAIC designations RP4 to RP6 and P4 to P6), are

13

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

reported at the lower of cost, amortized cost, or fair value, depending on the characteristics of the securities. The related net unrealized capital gains and losses for all NAIC designations are reported in changes in capital and surplus.

Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in net unrealized capital gains or losses and are reported in changes in capital and surplus.

Common stocks of unaffiliated companies, which include shares of mutual funds, are reported at fair value and the related net unrealized capital gains or losses are reported in changes in capital and surplus.

The Company owns stock issued by the Federal Home Loan Bank (FHLB), which is only redeemable at par, and its fair value is presumed to be par, unless other-than-temporarily impaired.

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 statements 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.

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 the impairment is other-than-temporary, the mortgage loan is written down to realizable value and a realized loss is recognized. Prepayment penalty or acceleration fees received in the event a loan is liquidated prior to its scheduled termination date are reported as investment income.

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.

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 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

14

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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.

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.

The Company has interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying 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 statements 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.

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. The carrying value is amortized over the life of the investment. Amortization is calculated as a ratio of the current year tax credits and tax benefits compared to the total expected tax credits and tax benefits over the life of the investment.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less (principally stated at amortized cost) or money market mutual funds which are reported at fair value.

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.

Policy loans are reported at unpaid principal balances.

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

15

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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. Due and accrued amounts determined to be uncollectible are written off through the statements of operations.

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, primarily bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals into net investment income over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. The 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 statements 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.

In 2019, the NAIC revised the AVR Factors (basic contribution, reserve objective and maximum reserve) to be consistent with the risk-based capital (RBC) after-tax factors, which were amended in 2018 as a result of federal tax reform. The AVR factor changes are effective for year-end 2019. As of December 31, 2019, the factor changes decreased capital and surplus by $183. The changes were recorded to the Change in Asset Valuation Reserve line of the Statements of Changes in Capital and Surplus.

Derivative Instruments

Overview: The Company may use various derivative instruments (options, caps, floors, swaps, 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 - Derivatives.

(A) 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 (amortized cost or fair value). 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

16

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

that is not clearly and closely related to the economic characteristics and the risk of the host contract is accounted for separately from the host contract and valued and reported at fair value.

(B) Derivative instruments are also used in replication (synthetic asset) transactions. 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. In these transactions, the derivative is accounted for in a manner consistent with the cash instrument and replicated asset. For GAAP, the derivative is reported at fair value, with the changes in fair value reported in income.

(C) 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 relates (amortized cost or fair value).

(D) Derivative instruments held for other investment/risk management activities are measured at fair value with value adjustments recorded in unassigned surplus.

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 hedged asset or liability changes, the value of the hedging derivative is expected to 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 derivative instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit rating of ‘BBB’ 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:

Interest rate swaps are 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 equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying

17

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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 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 capital and surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in capital and 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.

Total return swaps are used in the asset/liability management process to mitigate the market risk on 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 Standard & Poor’s (S&P) or other global market financial index) and floating leg (tied to the London Interbank Offered Rate (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 hedged item, generally at amortized cost, in 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 capital and 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 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.

Bond forwards are used to hedge the interest rate risk that future liability claims increase as rates decrease, leading to higher guarantee values. Bond return swaps are also used to hedge interest rate risk of the underlying liability by exchanging performance and interest of a treasury asset for a funding level plus spread.

18

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Futures contracts are used to hedge the liability risk when the Company issues products providing the customer a return based on various global market indices. Futures are marked to market on a daily basis whereby a cash payment is made or received by the Company. These payments are recognized as realized gains or losses in the financial statements.

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 sheets and fair value adjustments are recorded as capital and surplus in the financial statements. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment.

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 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 uses zero cost collars to hedge the interest rate risk associated with rising short term interest rates, whereby the exposure would otherwise adversely impact the Company’s capital generation. The collar position(s) help range bound the floating rate by combining a cap and floor position.

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 issues fixed liabilities that have a guaranteed minimum crediting rate. The Company uses receiver swaptions, whereby the swaption is designed to generate cash flows to offset lower yields on assets during a low interest rate environment. The Company pays a single premium at the beginning of the contract and is amortized throughout the life of the swaption. These swaptions are marked to fair value in the balance sheets and the fair value adjustment is recorded in unassigned surplus. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment.

19

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The Company replicates investment grade corporate bonds or sovereign debt by combining a highly rated security as a cash component with a written credit default swap which, in effect, converts the high quality asset into an investment grade corporate asset or a 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 amount of the contract will be made by the Company and recognized as a capital loss.

Securities Lending Assets and Liabilities

The Company loans securities to third parties under agent-managed securities lending programs accounted for as secured borrowings. Cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the balance sheets (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Non-cash collateral received which may not be sold or repledged is not recorded on the Company’s balance sheets. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

Repurchase Agreements

For dollar repurchase agreements accounted for as secured borrowings, 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. The securities transferred are not removed from the balance sheets, and the cash received as collateral is invested as needed or used for general corporate purposes of the Company. A liability is established to record the obligation to return the cash collateral and included in borrowed money on the balance sheets.

Offsetting of Assets and Liabilities

Financial assets and liabilities are offset in the balance sheets when the Company has a legally enforceable right to offset and has the intention to settle the asset and liability on a net basis.

Other Assets and Other Liabilities

Other assets consist primarily of cash surrender value of company owned life insurance, reinsurance receivable, general insurance accounts receivable and current federal income tax recoverable.

Other liabilities consist primarily of amounts withheld by the Company, accrued expenses, reinsurance payable, payable for securities, and 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

20

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

interest. These municipal repurchase agreements require a minimum of 95% of the fair value of the securities transferred to be maintained as collateral.

Separate Accounts

The majority of separate accounts held by the Company, primarily for individual policyholders as well as for group pension plans, do not have any minimum guarantees, and the investment risks associated with fair value changes are borne by the policyholder. 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.

Certain other separate accounts held by the Company provide a minimum guaranteed return of 3% of the average investment balance to policyholders. The assets consist of long-term bonds and short-term investments which are carried at amortized cost.

Certain other non-indexed guaranteed separate accounts represent funds invested by the Company for the benefit of the contract holders who are guaranteed certain returns as specified in the contracts. Separate account asset performance different than the guaranteed requirements is either transferred to or received from the general account and reported in the statements of operations. Non-indexed guaranteed separate account assets and liabilities are carried at fair value. These guarantees are included in the general account due to the nature of the guaranteed return.

Assets held in trust for purchases of variable life, variable universal life, variable annuity, and modified guaranteed annuity contracts and the Company’s corresponding obligation to the contract owners are shown separately in the balance sheets. The assets in the separate accounts are valued 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 investment risks associated with fair value changes of the separate accounts are borne entirely by the policyholders except in cases where minimum guarantees exist.

Income and gains and losses with respect to the assets in the separate accounts supporting modified guaranteed annuity contracts are included in the statements of operations as a component of net transfers from separate accounts.

Surplus funds transferred from the general account to the separate accounts, commonly referred to as seed money, and earnings accumulated on seed money are reported as surplus in the separate accounts until transferred or repatriated to the general account. The transfer of such funds between the separate account and the general account is reported as surplus contributed or withdrawn during the year.

Aggregate Reserves for Policies and Contracts

Life, annuity and accident and health benefit reserves are calculated by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation

21

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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 non-deduction 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.

For GAAP, policy reserves are calculated based on estimated expected experience or actual account balances.

Surrender values are not promised in excess of the legally computed reserves. For annual premium variable life insurance there is an extra premium charged to the policyholder before the premium is transferred to the Separate Accounts. An additional reserve for this policy is held in the General Account that is a multiple of the reserve that would otherwise be held. For interest sensitive whole life, the reserves held in the General Account are equal to the cash surrender value.

In accordance with SSAP No. 51R, Life Contracts, and No. 54R, Individual and Group Accident and Health Contracts, the Company reports the amount of insurance, if any, for which the gross premiums are less than the net premiums according to the valuation standards and any related premium deficiency reserve established. Anticipated investment income is included as a factor in the health contract premium deficiency calculation.

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 sheets 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.

Deposit-Type Contracts

Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include guaranteed investment contracts (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,

22

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

benefits or changes in reserves in the statements of operations. Interest on these policies is reflected in other benefits.

Premiums and Annuity Considerations

Revenues for 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. 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 using deposit accounting.

Policyholder Dividends

Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.

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.

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.

23

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Under GAAP, for certain reinsurance agreements whereby assets are retained by the ceding insurer (such as funds withheld or modified coinsurance) and a return is paid based on the performance of underlying investments, the assets and liabilities for these reinsurance arrangements must be adjusted to reflect the fair value of the invested assets. The NAIC SAP does not contain a similar requirement.

Deferred Income Taxes

The Company computes deferred income taxes in accordance with SSAP No. 101, Income Taxes. Unlike GAAP, SSAP No. 101 does not consider state income taxes in the measurement of deferred taxes. SSAP No. 101 also requires additional testing to measure gross deferred tax assets. The additional testing limits gross deferred tax asset admission to 1) the amount of federal income taxes paid in prior years recoverable through hypothetical loss carrybacks of existing temporary differences expected to reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the amount of remaining gross deferred 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 gross deferred tax assets that can be offset against existing gross deferred tax liabilities after considering character (i.e. ordinary versus capital) and reversal patterns. The Company’s reported deferred tax asset or liability is the sum of gross deferred tax assets admitted through this three-part test plus the sum of all deferred tax liabilities.

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 insurance and investment contracts are deferred. For traditional life insurance and certain long-duration accident and health insurance, to the extent recoverable from future policy revenues, acquisition costs are 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.

Value of Business Acquired

Under GAAP, value of business acquired (VOBA) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future contracts and contract changes, premiums, mortality and morbidity, separate account performance, surrenders, operation expenses, investment returns, nonperformance risk adjustment and other factors. VOBA is not recognized under the NAIC SAP.

24

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Subsidiaries and Affiliated Companies

Investments in subsidiaries, controlled and affiliated companies (SCA) are stated in accordance with the Purposes and Procedures Manual of the NAIC SVO, as well as SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities.

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. Dividends or distributions received from an investee are recognized in investment income when declared to the extent that they are not in excess of the undistributed accumulated earnings attributable to an investee. Changes in investments in SCA’s are recorded as a change to the carrying value of the investment with a corresponding amount recorded directly to unrealized gain/loss (capital and surplus).

Surplus Notes

Surplus notes are reported as surplus rather than as liabilities as would be required under GAAP.

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 SAP, are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheets to the extent that they are not impaired.

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 and money market mutual funds. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.

3. Accounting Changes and Correction of Error

The Company’s policy is to disclose as recent accounting pronouncements the adopted accounting guidance with a current year effective date that has been classified by the NAIC as a substantive change, as well as items classified as nonsubstantive changes that have had a material impact on the financial position or results of operations of the Company.

25

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Recent Accounting Pronouncements

Effective June 30, 2020, the NAIC adopted revisions to SSAP No. 105, Working Capital Finance Investments, and the corresponding Issue Paper No. 163, Working Capital Finance Investments. The revisions provided substantive updates to the Working Capital Finance Investments (WCFI) Program requirements in SSAP No. 105. The adoption of this guidance did not impact the financial position or results of operations of the Company as the Company does not invest in WCFI.

Effective January 1, 2020, the NAIC adopted revisions to SSAP No. 22, Leases, and the corresponding Issue Paper No. 161, Leases, to incorporate various concepts from U.S. GAAP guidance in Accounting Standards Update (ASU) 2016-02, Leases, into statutory accounting. The revised guidance retains the operating lease concept for statutory accounting, clarifies the application of statutory accounting guidance for leases in certain areas (e.g., sale-leaseback transactions), and identifies the types of assets allowed for lease and sale-leaseback treatment. The adoption of this guidance did not impact the financial position or results of operations of the Company.

Change in Valuation Basis

As of December 31, 2019, the Company received IID approval on an approach for adoption of the NAIC 2020 VM-21 and related Risk Based Capital C3P2 changes documented in the VM- 21 2020 NAIC Valuation Manual: Requirements for Principle-Based Reserves for Variable Annuities. The Company elected to early adopt the VM-21 requirements for variable annuities effective December 31, 2019. The approved transition approach did not result in an adjustment to the Company’s historical statutory reporting or existing balances at the time of transition. The Company reported the increase to the VM-21 reserve of $1,218 as of December 31, 2019. As of the date of transition, the Company was fully compliant with the provisions of VM-21 and remains compliant as of December 31, 2020.

Correction of Error

During 2020, management identified and corrected an error in the Company’s prior year statutory Actuarial Guideline (AG) 38 8C cash flow testing reserves. The error resulted in an understatement of aggregate reserves for life contracts of $116 net of tax at December 31, 2019 which was reflected in Other changes - net in the Statement of Changes in Capital and Surplus.

Reclassifications

Certain amounts in prior year financial statement balances and footnote disclosures have been reclassified to conform to the current year presentation.

26

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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 the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.

Each month, the Company performs an analysis of the information obtained from indices, third-party services, and brokers to ensure 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. 100R, Fair Value. 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:

27

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.

Level 2 - Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

a) Quoted prices for similar assets or liabilities in active markets

b) Quoted prices for identical or similar assets or liabilities in non-active markets

c) Inputs other than quoted market prices that are observable

d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means

Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect the Company’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

The 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 is either reported at fair value or amortized cost (which approximates fair value). 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: indices, 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 1 and Level 2 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.

28

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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 indices, third-party pricing services and internal models.

Derivative Financial Instruments: The fair value of futures and forwards are based upon the latest quoted market price and spot rates at the balance sheets date. The estimated fair values of equity and interest rate options (calls, puts, caps) are based upon the latest quoted market price at the balance sheets date. The estimated fair values of swaps, including equity, interest rate and currency swaps, are based on pricing models or formulas using current assumptions. The estimated fair values of credit default swaps are based upon active market data, including interest rate quotes, credit spreads, and recovery rates, which are then used to calculate probabilities of default for the fair value calculation. 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 book value of policy loans is considered to approximate the fair 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.

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 primarily valued either using third-party pricing services or are valued in the same manner as the general account assets as further described in this note. However, some separate account assets are valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilizes input that are not market observable. 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 and GICs, are estimated using discounted cash flow calculations. 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.

29

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Deposit–Type Contracts: The carrying amounts of deposit–type contracts reported in the accompanying balance sheets approximate their fair values. These are included in the Investment Contract Liabilities.

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.

The Company accounts for its investments in affiliated common stock in accordance with SSAP No. 97, as such, they are not included in the following disclosures.

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, 2020 and 2019, respectively:

	December 31, 2020
	Aggregate Fair Value		Admitted Value		(Level 1)		(Level 2)		(Level 3)		Net Asset Value (NAV)		Not Practicable   (Carrying   Value)
Admitted assets
Cash equivalents and short–term investments, other than affiliates	$	1,522	$	1,522	$	1,030	$	492	$	–	$	–	$	–
Short–term notes receivable from affiliates		149		149		–		149		–		–		–
Bonds		60,092		50,444		10,161		49,535		396		–		–
Preferred stocks, other than affiliates		109		105		–		109		–		–		–
Common stocks, other than affiliates		180		180		20		–		160		–		–
Mortgage loans on real estate		9,792		9,015		–		–		9,792		–		–
Other invested assets		555		474		–		534		21		–		–
Derivative assets:
Options		278		278		–		278		–		–		–
Interest rate swaps		2,544		2,531		–		2,544		–		–		–
Currency swaps		21		8		–		21		–		–		–
Credit default swaps		67		49		–		67		–		–		–
Equity swaps		88		88		–		88		–		–		–
Interest rate futures		10		10		10		–		–		–		–
Equity futures		9		9		9		–		–		–		–
Derivative assets total		3,017		2,973		19		2,998		–		–		–
Policy loans		2,037		2,037		–		2,037		–		–		–
Securities lending reinvested collateral		1,893		1,893		–		1,893		–		–		–
Separate account assets		119,784		119,677		112,719		7,065		–		–		–
Liabilities
Investment contract liabilities		17,556		15,294		–		257		17,299		–		–
Derivative liabilities:
Options		165		165		–		165		–		–		–
Interest rate swaps		2,853		2,806		–		2,853		–		–		–
Currency swaps		30		31		–		30		–		–		–
Credit default swaps		–		14		–		–		–		–		–
Equity swaps		472		472		–		472		–		–		–
Interest rate futures		1		1		1		–		–		–		–
Equity futures		4		4		4		–		–		–		–
Derivative liabilities total		3,525		3,493		5		3,520		–		–		–
Dollar repurchase agreements		967		967		–		967		–		–		–
Payable for securities lending		2,115		2,115		–		2,115		–		–		–
Payable for derivative cash collateral		640		640		–		640		–		–		–
Separate account liabilities		109,407		109,407		1		109,354		52		–		–

30

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

	December 31, 2019
	Aggregate Fair Value			Admitted Value		(Level 1)		(Level 2)			(Level 3)		Net Asset Value (NAV)		Not Practicable   (Carrying   Value)
Admitted assets
Cash equivalents and short–term investments, other than affiliates	$	1,949		$	1,949	$	1,504	$	445		$	–	$	–	$	–
Short–term notes receivable from affiliates		343			343		–		343			–		–		–
Bonds		49,377			43,976		7,355		41,373			649		–		–
Preferred stocks, other than affiliates		114			117		–		111			3		–		–
Common stocks, other than affiliates		140			140		12		–			128		–		–
Mortgage loans on real estate		8,259			7,834		–		–			8,259		–		–
Other invested assets		461			398		–		441			20		–		–
Derivative assets:
Options		312			312		–		312			–		–		–
Interest rate swaps		1,375			1,372		–		1,375			–		–		–
Currency swaps		22			12		–		22			–		–		–
Credit default swaps		79			45		–		79			–		–		–
Equity futures		3			3		3		–			–		–		–
Derivative assets total		1,791			1,744		3		1,788			–		–		–
Policy loans		2,062			2,062		–		2,062			–		–		–
Securities lending reinvested collateral		1,588			1,588		–		1,588			–		–		–
Separate account assets		110,612			110,546		104,750		5,857			5		–		–
Liabilities
Investment contract liabilities		18,960			13,396		–		264			18,696		–		–
Derivative liabilities:
Options		152			152		–		152			–		–		–
Interest rate swaps		1,204			1,501		–		1,204			–		–		–
Currency swaps		19			19		–		19			–		–		–
Credit default swaps		(7	)		15		–		(7	)		–		–		–
Equity swaps		216			216		–		216			–		–		–
Interest rate futures		23			23		23		–			–		–		–
Equity futures		7			7		7		–			–		–		–
Derivative liabilities total		1,614			1,933		30		1,584			–		–		–
Dollar repurchase agreements		704			704		–		704			–		–		–
Payable for securities lending		2,004			2,004		–		2,004			–		–		–
Payable for derivative cash collateral		687			687		–		687			–		–		–
Separate account liabilities		101,194			101,195		3		101,144			47		–		–

31

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The following tables provide information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 and 2019:

	2020
	Level 1		Level 2		Level 3		Net Asset     Value (NAV)		Total
Assets:
Bonds
Industrial and miscellaneous	$	–	$	41	$	7	$	–	$	48
Total bonds		–		41		7		–		48
Preferred stock
Industrial and miscellaneous		–		6		–		–		6
Total preferred stock		–		6		–		–		6
Common stock
Mutual funds		6		–		–		–		6
Industrial and miscellaneous		14		–		160		–		174
Total common stock		20		–		160		–		180
Cash equivalents and short–term
Money market mutual funds		1,029		–		–		–		1,029
Total cash equivalents and short–term		1,029		–		–		–		1,029
Derivative assets		18		2,894		–		–		2,912
Separate account assets		112,606		6,393		–		–		118,999
Total assets	$	113,673	$	9,334	$	167	$	–	$	123,174
Liabilities:
Derivative liabilities	$	5	$	3,184	$	–	$	–		3,189
Separate account liabilities		1		–		–		–		1
Total liabilities	$	6	$	3,184	$	–	$	–	$	3,190
	2019
	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
Assets:
Bonds
Industrial and miscellaneous	$	–	$	16	$	7	$	–	$	23
Total bonds		–		16		7		–		23
Preferred stock
Industrial and miscellaneous		–		–		3		–		3
Total preferred stock		–		–		3		–		3
Common stock
Mutual funds		5		–		–		–		5
Industrial and miscellaneous		7		–		128		–		135
Total common stock		12		–		128		–		140
Cash equivalents and short–term
Money market mutual funds		1,504		–		–		–		1,504
Total cash equivalents and short–term		1,504		–		–		–		1,504
Derivative assets		3		1,680		–		–		1,683
Separate account assets		104,614		5,273		4		–		109,891
Total assets	$	106,133	$	6,969	$	142	$	–	$	113,244
Liabilities:
Derivative liabilities	$	30	$	1,650	$	–	$	–	$	1,680
Separate account liabilities		3		–		–		–		3
Total liabilities	$	33	$	1,650	$	–	$	–	$	1,683

Bonds classified as Level 2 are valued using inputs from third party pricing services or broker quotes. Bonds classified as Level 3 are primarily those valued using non–binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilize significant inputs that are not market observable.

32

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Preferred stock classified as Level 2 are valued using inputs from third party pricing services or broker quotes. Preferred stock classified as Level 3 are internally valued using significant unobservable inputs.

Common stock classified as Level 3 are comprised primarily of shares in the FHLB of Des Moines, which are valued at par as a proxy for fair value as a result of restrictions that allow redemptions only by FHLB.

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.

Separate account assets and liabilities are valued and classified in the same way as general account assets and liabilities (described above).

The following tables summarize the changes in assets classified as Level 3 for 2020 and 2019:

	Beginning Balance at   January 1, 2020		Transfers in (Level 3)		Transfers out (Level 3)		Total Gains (Losses) Included in Net income (a)			Total Gains (Losses) Included in Surplus (b)
Bonds
Other	$	7	$	2	$	–	$	–		$	(2)
Preferred stock		3		–		–		(17	)		13
Common stock		128		–		2		(1	)		16
Separate account assets		4		–		4		–			–
Total	$	142	$	2	$	6	$	(18	)	$	27
	Purchases		Issuances		Sales		Settlements			Ending Balance at  December 31, 2020
Bonds
Other	$	–	$	–	$	–	$	–		$	7
Preferred stock		2		–		–		1			–
Common stock		21		8		10		–			160
Separate account assets		1		-		-		1			-
Total	$	24	$	8	$	10	$	2		$	167

(a) Recorded as a component of Net Realized Capital Gains (Losses) on Investments 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

33

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

	Beginning Balance at   January 1, 2019		Transfers in (Level 3)		Transfers out (Level 3)		Total Gains (Losses) Included in Net income (a)			Total Gains (Losses) Included in Surplus (b)
Bonds
Other	$	13	$	–	$	2	$	–		$	1
Preferred stock		10		–		–		–			(9	)
Common stock		223		–		6		(6	)		3
Separate account assets		4		1		1		–			(1	)
Total	$	250	$	1	$	9	$	(6	)	$	(6	)
	Purchases		Issuances		Sales		Settlements			Ending Balance at  December 31, 2019
Bonds
Other	$	–	$	–	$	–	$	5		$	7
Preferred stock		2		–		–		–			3
Common stock		6		8		100		–			128
Separate account assets		1		–		–		–			4
Total	$	9	$	8	$	100	$	5		$	142

(a) Recorded as a component of Net Realized Capital Gains (Losses) on Investments 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

Transfers between fair value hierarchy levels are recognized at the beginning of the reporting period.

Nonrecurring fair value measurements

As indicated in Note 2, real estate held for sale is measured at the lower of carrying amount or fair value less cost to sell. As of December 31, 2020, the Company held no properties as held-for-sale, where fair value was less than its carrying value. As of December 31, 2020, the Company held four properties as held-for sale, where carrying amount of $10 was equal to fair value.

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

34

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

5. Investments

Bonds and Stocks

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

	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair   Value
December 31, 2020
Bonds:
United States Government and agencies	$	7,279	$	2,349	$	7	$	9,621
State, municipal and other government		2,214		310		8		2,516
Hybrid securities		360		83		6		437
Industrial and miscellaneous		33,784		6,355		48		40,091
Mortgage and other asset-backed securities		6,807		679		59		7,427
Total unaffiliated bonds		50,444		9,776		128		60,092
Unaffiliated preferred stocks		105		11		7		109
	$	50,549	$	9,787	$	135	$	60,201
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair   Value
Unaffiliated common stocks	$	136	$	44	$	–	$	180
	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair   Value
December 31, 2019
Bonds:
United States Government and agencies	$	5,882	$	1,023	$	1	$	6,904
State, municipal and other government		1,877		161		25		2,013
Hybrid securities		412		60		4		468
Industrial and miscellaneous		29,448		3,737		86		33,099
Mortgage and other asset-backed securities		6,357		558		22		6,893
Total unaffiliated bonds		43,976		5,539		138		49,377
Unaffiliated preferred stocks		117		5		8		114
	$	44,093	$	5,544	$	146	$	49,491
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair   Value
Unaffiliated common stocks	$	117	$	23	$	–	$	140

35

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The carrying amount and estimated fair value of bonds at December 31, 2020, 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.

	2020
December 31:	Carrying Value		Fair Value
Due in one year or less	$	1,157	$	1,176
Due after one year through five years		7,139		7,988
Due after five years through ten years		8,893		10,601
Due after ten years		26,448		32,900
		43,637		52,665
Mortgage and other asset-backed securities		6,807		7,427
	$	50,444	$	60,092

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2020 and 2019 is as follows:

	2020
	Equal to or Greater than 12 Months				Less than 12 Months
	Estimated   Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross   Unrealized   Losses
United States Government and agencies	$	–	$	–	$	248	$	7
State, municipal and other government		39		6		89		2
Hybrid securities		20		5		10		1
Industrial and miscellaneous		160		15		836		33
Mortgage and other asset-backed securities		150		18		742		41
Total bonds		369		44		1,925		84
Preferred stocks-unaffiliated		22		6		16		1
	$	391	$	50	$	1,941	$	85

36

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

	2019
	Equal to or Greater than 12 Months				Less than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross   Unrealized   Losses
United States Government and agencies	$	1	$	–	$	22	$	1
State, municipal and other government		55		12		329		13
Hybrid securities		45		4		3		–
Industrial and miscellaneous		615		62		798		24
Mortgage and other asset-backed securities		286		16		884		6
Total bonds		1,002		94		2,036		44
Preferred stocks-unaffiliated		49		8		5		–
Common stocks-unaffiliated		–		–		1		–
	$	1,051	$	102	$	2,042	$	44

During 2020, 2019, and 2018, respectively, there were $0, $7 and $99, of loan-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold for a period of time to recover the amortized cost basis.

For loan-backed and structured 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, in 2020, 2019 and 2018 the Company recognized OTTI of $4, $6 and $10, respectively.

The following loan-backed and structured securities were held at December 31, 2020, 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		Date of   Financial   Statement   Where   Reported
36828QQK5	$	1	$	–	$	1	$	–	$	–		3/31/2020
52108MDM2		4		3		1		4		4		3/31/2020
52108MDM2		3		1		2		1		3		9/30/2020
					$	4

37

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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, 2020 and 2019 is as follows:

	2020				2019
	Losses 12 Months or More		Losses Less Than 12 Months		Losses 12 Months or More		Losses Less   Than 12 Months
Year ended December 31:
The aggregate amount of unrealized losses	$	18	$	61	$	15	$	19
The aggregate related fair value of securities with unrealized losses		150		765		286		901

At December 31, 2020 and 2019, 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 116 and 306 securities with a carrying amount of $441 and $1,154, and an unrealized loss of $50 and $102. Of this portfolio, 50.1% and 66.1% were investment grade with associated unrealized losses of $17 and $30, respectively.

At December 31, 2020 and 2019, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 359 and 469 securities with a carrying amount of $2,026 and $2,085 and an unrealized loss of $85 and $44. Of this portfolio, 79.6% and 93.4% were investment grade with associated unrealized losses of $49 and $34, respectively.

At December 31, 2020 and 2019, there were no common stocks that have been in a continuous loss position for greater than or equal to twelve months.

At December 31, 2020 and 2019, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 5 and 12 securities with a cost of $0 and $1 and no unrealized losses.

The following table provides the number of 5GI securities, aggregate book adjusted carrying value and aggregate fair value by investment type:

	Number of 5GI Securities		Book / Adjusted Carrying Value		Fair Value
December 31, 2020
Bond, amortized cost		2	$	13	$	13
Loan-backed and structured securities, amortized cost		4		10		6
Total		6	$	23	$	19
December 31, 2019
Bond, amortized cost		3	$	24	$	24
Loan-backed and structured securities, amortized cost		4		10		10
Preferred stock, amortized cost		1		3		3
Total		8	$	37	$	37

38

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The tables below present the Company’s gross and net receivable for securities and borrowed money financial statement line items that were subject to offsetting:

December 31, 2020	Gross Amount Recognized		Amount Offset		Net Amount     Presented on     Financial      Statements
Assets:
Receivables for securities	$	3	$	–	$	3
Liabilities:
Borrowed money	$	967	$	–	$	967
December 31, 2019	Gross Amount Recognized		Amount Offset		Net Amount     Presented on     Financial     Statements
Assets:
Receivables for securities	$	120	$	101	$	19
Liabilities:
Borrowed money	$	550	$	101	$	449

During 2020 and 2019, the Company sold, redeemed or otherwise disposed of 108 and 250 securities as a result of a callable feature which generated investment income of $25 and $19 as a result of a prepayment penalty and/or acceleration fee.

Proceeds from sales and other disposals of bonds and preferred stock and related gross realized capital gains and losses are reflected in the following table. The amounts exclude maturities and include transfers associated with reinsurance agreements.

	Year Ended December 31
	2020		2019		2018
Proceeds	$	8,747	$	16,076	$	9,500
Gross realized gains	$	232	$	159	$	111
Gross realized losses		(37)		(56)		(379)
Net realized capital gains (losses)	$	195	$	103	$	(268)

The Company had gross realized losses, which relate to losses recognized on other-than-temporary declines in the fair value of bonds and preferred stocks, for the years ended December 31, 2020, 2019 and 2018 of $161, $39 and $36, respectively.

At December 31, 2020 and 2019, the Company had no investments in restructured securities.

39

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Mortgage Loans

The credit quality of mortgage loans by type of property for the years ended December 31, 2020 and 2019 were as follows:

December 31, 2020
	Farm		Commercial		Total
AAA - AA	$	7	$	4,612	$	4,619
A		41		3,491		3,532
BBB		5		767		772
BB		9		82		91
	$	62	$	8,952	$	9,014

December 31, 2019
	Farm		Commercial		Total
AAA - AA	$	11	$	4,373	$	4,384
A		41		3,068		3,109
BBB		6		317		323
BB		9		4		13
B		–		4		4
	$	67	$	7,766	$	7,833
The above tables exclude residential mortgage loans.

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 2020, the Company issued mortgage loans with a maximum interest rate of 6.50% and a minimum interest rate of 2.92% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2020 at the time of origination was 79%. During 2019, the Company issued mortgage loans with a maximum interest rate of 5.57% and a minimum interest rate of 3.50% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2019 at the time of origination was 82%.

During 2020 and 2019, the Company did not reduce the interest rate on any outstanding mortgage loans.

40

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The age analysis of mortgage loans and identification in which the Company is a participant or co-lender in a mortgage loan agreement is as follows for December 31, 2020 and 2019.

			Residential		Commercial
	Farm		All Other		All Other		Total
December 31, 2020
Recorded Investment (All)
Current	$	62	$	–	$	8,846	$	8,908
30-59 Days Past Due		–		1		–		1
180+ Days Past Due		–		–		106		106
Participant or Co-lender in
Mortgage Loan Agreement
Recorded Investment	$	42	$	–	$	911	$	953

			Residential		Commercial
	Farm		All Other		All Other		Total
December 31, 2019
Recorded Investment (All)
Current	$	67	$	–	$	7,659	$	7,726
30-59 Days Past Due		–		1		–		1
90-179 Days Past Due		–		–		4		4
180+ Days Past Due		–		–		103		103
Participant or Co-lender in
Mortgage Loan Agreement
Recorded Investment	$	44	$	–	$	2,530	$	2,574

At December 31, 2020 and 2019, respectively, multiple mortgage loans with a carrying value of $106 and $106 were non-income producing for the previous 180 days. There was no accrued interest related to these mortgage loans at December 31, 2020 and 2019. The Company has a mortgage or deed of trust on the property thereby creating a lien which gives it the right to take possession of the property (among other things) if the borrower fails to perform according to the terms of the loan documents. The Company requires all mortgaged properties to carry fire insurance equal to the value of the underlying property. At December 31, 2020 and 2019, there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.

At December 31, 2020 and 2019, the Company held no impaired loans with or without a related allowance for credit losses. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2020 and 2019, respectively, that were subject to participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loans. The average recorded investment in impaired loans during 2020 and 2019 was $3 and $0, respectively.

41

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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
	2020			2019		2018
Balance at beginning of period	$	–		$	–	$	27
Additions, net charged to operations		1			–		–
Recoveries in amounts previously charged off		(1	)		–		(27	)
Balance at end of period	$	–		$	–	$	–

As of December 31, 2020 and 2019, the Company had no mortgage loans derecognized as a result of foreclosure.

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. For the years ended December 31, 2020, 2019 and 2018, respectively, the Company recognized $0, $0 and $1 of interest income on impaired loans. Interest income of $0, $0 and $1, respectively, was recognized on a cash basis for the years ended December 31, 2020, 2019 and 2018.

At December 31, 2020 and 2019, the Company held a mortgage loan loss reserve in the AVR of $116 and $105, respectively.

The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:

Geographic Distribution								Property Type Distribution
	December 31								December 31
	2020			2019					2020			2019
Pacific		29	%		25	%	Apartment			48	%		49	%
South Atlantic		23			25		Office			17			13
Middle Atlantic		13			14		Retail			16			18
E. North Central		9			9		Industrial			14			15
W. South Central		9			8		Other			3			3
Mountain		7			7		Medical			1			1
W. North Central		6			8		Agricultural			1			1
E. South Central		3			3
New England		1			1

At December 31, 2020, 2019 and 2018, the Company had mortgage loans with a total net admitted asset value of $14, $21 and $23, 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, 2020, 2019 and 2018 related to such restructurings. At

42

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

December 31, 2020 and 2019, there were no commitments to lend additional funds to debtors owing receivables.

Real Estate

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 $1, $5 and $26 were taken on real estate in 2020, 2019 and 2018, respectively, to write the book value down to the current fair value, and included in net realized capital gains (losses), within the Statements of Operations, for the year ended December 31, 2020.

As of December 31, 2020, there were eight properties classified as held for sale. As of December 31, 2019, there were five properties classified as held for sale. The Company is working with an external commercial real estate advisor firm to actively market the properties and negotiate with potential buyers. During 2020, one property classified as held for sale was disposed. During 2019, four properties classified as held for sale were disposed of resulting in a net realized gain of $26. These gains and losses were included in net realized capital gains (losses) within the Statements of Operations.

On October 28, 2020, the Company sold the Transamerica Pyramid Property located in San Francisco, CA, resulting in a realized gain of $255. As part of the sale transaction, the Company issued mortgage loans supporting the property at commercial rates in the amount of $427. The Company also disposed of other properties during 2020 and 2019 resulting in net realized gains of $3 and $9, respectively. These gains and losses were included in net realized capital gains (losses) within the Statements of Operations.

The carrying value of the Company’s real estate assets at December 31, 2020 and 2019 was as follows:

	2020		2019
Home office properties	$	41	$	46
Investment properties		–		187
Properties held for sale		15		6
	$	56	$	239

Accumulated depreciation on real estate at December 31, 2020 and 2019, was $24 and $106, respectively.

Other Invested Assets

The Company recorded impairments of $19, $5, and $3 throughout years 2020, 2019 and 2018, respectively. These impairments were primarily related to private equity funds. The impairments were taken because the decline in fair value of the funds were deemed to be other than temporary and a recovery in value from the remaining underlying investments in the funds were not anticipated. These write-downs are included in net realized capital gains (losses) within the Statements of Operations.

43

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Tax Credits

At December 31, 2020, the Company had ownership interests in sixty-four LIHTC investments with a carrying value of $141. The remaining years of unexpired tax credits ranged from one to thirteen, and the properties were not subject to regulatory review. The length of time remaining for holding periods ranged from one to seventeen years. The amount of contingent equity commitments expected to be paid during the years 2021 to 2029 is $30. Tax credits recognized in 2020 were $119, and other tax benefits recognized in 2020 were $9. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

At December 31, 2019, the Company had ownership interests in sixty-seven LIHTC investments with a carrying value of $103. The remaining years of unexpired tax credits ranged from one to twelve, and the properties were not subject to regulatory review. The length of time remaining for holding periods ranged from one to seventeen years. The amount of contingent equity commitments expected to be paid during the years 2020 to 2029 is $93. Tax credits recognized during 2019 was $94 and other benefits recognized in 2019 were $4. 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 transferable state tax credits gross of any related tax liabilities and total unused transferable tax credits by state and in total as of December 31, 2020 and 2019:

		December 31, 2020
Description of State Transferable and Non- transferable Tax Credits	State	Carrying Value		Unused Amount*
Low-Income Housing Tax Credits	MA	$	1	$	5
Economic Redevelopment and Growth Tax Credits	NJ		6		37
Total		$	7	$	42
		December 31, 2019
Description of State Transferable and Non- transferable Tax Credits	State	Carrying Value		Unused Amount
Low-Income Housing Tax Credits	MA	$	3	$	6
Economic Redevelopment and Growth Tax Credits	NJ		5		40
Total		$	8	$	46

*The unused amount reflects credits that the Company deems will be realizable in the period 2020-2030.

The Company did not have any 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.

44

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Derivatives

Amounts disclosed in this Derivatives section do not include derivatives utilized in the hedging of variable annuity guarantees in accordance with SSAP 108. Please see the subsequent section “Derivatives Hedging Variable Annuity Guarantees” for results associated with those 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). Fair value of derivative contracts, aggregated at a counterparty level at December 31, 2020 and 2019 was as follows:

	2020			2019
Fair value - positive	$	976		$	866
Fair value - negative		(1,557	)		(763	)

At December 31, 2020, 2019 and 2018, the Company has recorded unrealized gains (losses) of ($334), ($266) and $861, respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. The Company did not recognize any unrealized gains or losses during 2020, 2019 and 2018 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 23 years for forecasted hedge transactions. At December 31, 2020 and 2019, 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. As of December 31, 2020 and 2019, the Company has accumulated deferred gains in the amount of $1 and $4, 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 future asset purchases expected to transpire throughout 2021.

45

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Summary of realized gains (losses) by derivative type for the years ended December 31, 2020, 2019 and 2018:

	2020			2019			2018
Options:
Calls	$	(805	)	$	(15	)	$	60
Puts		(299	)		–			(27	)
Collars		(62	)		–			–
Total options	$	(1,166	)	$	(15	)	$	33
Swaps:
Interest rate	$	–		$	95		$	(300	)
Credit		(6	)		(3	)		(17	)
Total return		(851	)		(621	)		(210	)
Total swaps	$	(857	)	$	(529	)	$	(527	)
Futures - net positions		480			752			(393	)
Lehman settlements		–			–			1
Total realized gains (losses)	$	(1,543	)	$	208		$	(886	)

The average estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020 and 2019:

	Asset(1)				Liability(1)
	2020		2019		2020			2019
Derivative component of RSATs
Credit default swaps	$	34	$	75	$	(6	)	$	(12	)
Interest rate swaps		6		3		–			–

⁽¹⁾ Asset and liability classification is based on the positive (asset) or negative (liability) book/adjusted carrying value of each derivative.

The estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020 and 2019:

	Asset(1)				Liability(1)
	2020		2019		2020			2019
Derivative component of RSATs
Credit default swaps	$	67	$	79	$	(10	)	$	(14	)
Interest rate swaps		6		4		–			–
Total	$	73	$	83	$	(10	)	$	(14	)

⁽¹⁾ Asset and liability classification is based on the positive (asset) or negative (liability) book/adjusted carrying value of each derivative.

46

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The net realized gains (losses) on the derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2020, 2019 and 2018:

	2020			2019			2018
Derivative component of RSATs
Credit default swaps	$	(6	)	$	(3	)	$	(7	)
Interest rate swaps		–			–			(9	)
Total	$	(6	)	$	(3	)	$	(16	)

As stated in Note 2, the Company replicates investment grade corporate bonds, sovereign debt, or commercial mortgage backed securities 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, a payment equal to the notional amount of the contract, less any potential recoveries as determined by the underlying agreement, will be made by the Company to the counterparty to the swap.

47

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The following tables present the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at December 31, 2020 and 2019:

		2020
Rating Agency Designation of Referenced Credit Obligations (1)	NAIC Designation	Estimated Fair Value of Credit Default   Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
AAA/AA/A	1
Single name credit default swaps (3)		$	15	$	779		3.4
Credit default swaps referencing indices			–		44		32.6
Subtotal			15		823		5.0
BBB	2
Single name credit default swaps (3)			36		1,870		3.5
Credit default swaps referencing indices			24		1,741		2.9
Subtotal			60		3,611		3.2
BB	3
Single name credit default swaps (3)			3		113		1.9
Subtotal			3		113		1.9
B	4
Single name credit default swaps (3)			(1)		50		2.2
Subtotal			(1)		50		2.2
Total		$	77	$	4,597		3.5

⁽¹⁾  The rating agency designations are based on availability and the blending of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard and Poor’s Rating Services (“S&P”), and Fitch Ratings. If no rating is available from a rating agency, then an internally derived rating is used.

⁽²⁾  The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.

⁽³⁾  Includes corporate, foreign government and state entities.

48

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Rating Agency Designation of Referenced Credit Obligations (1)			2019
	NAIC Designation		Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity (2)
AAA/AA/A		1
Single name credit default swaps (3)			$	10	$	714		1.8
Credit default swaps referencing indices				–		20		40.8
Subtotal				10		734		2.9
BBB		2
Single name credit default swaps (3)				51		2,342		1.9
Credit default swaps referencing indices				29		1,508		2.8
Subtotal				80		3,850		2.2
BB		3
Single name credit default swaps (3)				3		78		1.6
Subtotal				3		78		1.6
Total			$	93	$	4,662		2.3

⁽¹⁾  The rating agency designations are based on availability and the blending of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard and Poor’s Rating Services (“S&P”), and Fitch Ratings. If no rating is available from a rating agency, then an internally derived rating is used.

⁽²⁾  The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.

⁽³⁾  Includes corporate, foreign government and state entities.

The Company may enter into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. At December 31, 2020, there were not any potential future recoveries available to offset the $4,597 from the table above. At December 31, 2019, there were not any potential future recoveries available to offset the $4,662 from the table above.

49

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

At December 31, 2020 and 2019, the Company’s outstanding derivative instruments, shown in notional or contract amounts and fair value, are summarized as follows:

	Contract or Notional Amount*						Fair Value
	2020			2019			2020		2019
Derivative assets:
Credit default swaps	$	3,813		$	3,303		$	67	$	79
Currency swaps		214			140			21		22
Equity futures		–			–			9		3
Equity swaps		969			209			88		–
Interest rate futures		–			–			10		–
Interest rate swaps		2,543			399			100		16
Options		9,449			21,197			278		312
Derivative liabilities:
Credit default swaps		1,218			1,734			–		(7	)
Currency swaps		373			400			30		19
Equity futures		–			–			4		7
Equity swaps		8,158			4,902			472		216
Interest rate futures		–			–			1		1
Interest rate swaps		8,233			5,498			480		(58	)
Options		(4,960	)		(3,677	)		165		152

*Futures are presented in contract format. Swaps and options are presented in notional format.

Derivatives Hedging Variable Annuity Guarantees

The hedged obligation consists of guaranteed benefits on variable annuity contracts and resembles a long dated put option where claim payment is made whenever account value is less than a guaranteed amount, adjusted for applicable fees. Changes in interest rates impact the present value of future product cash flows (discount rate) as well as the value of investments comprising the account value to be assessed against the guarantee. Under this VM-21 compliant clearly defined hedging strategy (CDHS), interest rate risk may be hedged by a duration matched portfolio of interest sensitive derivatives such as treasury bond forwards, treasury futures, interest rate swaps, interest rate swaptions or treasury future options. Retroactive to January 1, 2020, the Company re-designated the portfolio of contracts giving rise to the hedged item. The re-designation will more acutely reflect alignment between hedge performance and reserve valuations pertaining to the hedged item on a forward-looking basis. Also retroactive to January 1, 2020, the Company elected to immediately amortize the full $195 SSAP No. 108 asset balance associated with the former designated portfolio through net realized capital gains (losses) within the Statements of Operations. Total return on the designated portfolio of derivatives remains highly effective in covering the interest rate risk of the hedged obligation. Hedge effectiveness is measured in accordance with the requirements outlined under SSAP 108 and entails assessment of the total return on the designated portfolio of derivatives against changes in the fair value of the hedged obligation due to interest rate movements on a cumulative basis.

50

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Scheduled amortization for SSAP 108 derivatives as of December 31, 2020 is as follows:

Amortization Year	Deferred Assets			Deferred Liabilities
2021	$	(16	)	$	1
2022		(16	)		1
2023		(16	)		1
2024		(16	)		1
2025		(16	)		1
2026		(16	)		1
2027		(16	)		1
2028		(16	)		1
2029		(16	)		1
2030		(11	)		1
Total	$	(155	)	$	10

The following table is a reconciliation of the total deferred balance (net of tax) of SSAP 108 derivatives:

		Total Deferred   Balance
1.	Balance at July 1, 2019	$	190
2.	Amortization		19
3.	Deferred Recognition		(24	)
4.	Balance at December 31, 2019 [1-(2+3)]	$	195
5.	Amortization		191
6.	Deferred Recognition		149
7.	Balance at December 31, 2020 [4-(5+6)]	$	(145	)

The following tables provide information regarding SSAP 108 hedging instruments:

	2020			2019
Amortized cost	$	1		$	–
Fair value		(2	)		74

December 31, 2020

	Net Investment   Income			Realized Gain  (Loss)			Unrealized  Gain (Loss)			Total*
Derivative performance	$	–		$	1,819		$	(80	)	$	1,739
SSAP 108 Adjustments
Portion of the derivative performance attributed to natural offset		37			(1,417	)		(170	)		(1,550)
Deferred		(37	)		(402	)		250			(189)

*Totals shown are pre-tax

51

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

December 31, 2019

	Net Investment  Income			Realized Gain (Loss)			Unrealized     Gain (Loss)			Total
Derivative performance	$	24		$	495		$	(373	)	$	146
SSAP 108 Adjustments
Portion of the derivative performance attributed to natural offset		–			(184	)		14			(170	)
Deferred		(24	)		(311	)		359			24

	Year Ended December 31
	2020			2019
Prior year fair value of hedged item	$	(1,395	)	$	(2,294	)
Current year fair value of hedged item		(3,021	)		(2,574	)
Change in fair value attributable to interest rates	$	(1,626	)	$	(280	)
Portion of the fair value change attributed to the hedged risk	$	(1,626	)	$	(232	)

Restricted Assets

The following tables show the pledged or restricted assets as of December 31, 2020 and 2019, respectively:

	Gross Restricted (Admitted & Nonadmitted) 2020
Restricted Asset Category	Total General Account (G/A)		G/A Supporting Separate   Account (S/A)		Total S/A   Restricted   Assets		S/A Assets Supporting   G/A Activity		Total
Collateral held under security lending agreements	$	2,115	$	–	$	–	$	–	$	2,115
Subject to repurchase agreements		200		–		–		–		200
Subject to dollar repurchase agreements		958		–		–		–		958
FHLB capital stock		111		–		–		–		111
On deposit with states		44		–		–		–		44
Pledged as collateral to FHLB (including assets backing funding agreements)		3,818		–		–		–		3,818
Pledged as collateral not captured in other categories		1,399		–		–		–		1,399
Other restricted assets		1,689		–		–		–		1,689
Total restricted assets	$	10,334	$	–	$	–	$	–	$	10,334

52

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

	Gross (Admitted & Nonadmitted) Restricted									Percentage
Restricted Asset Category	Total From   Prior Year (2019)		Increase/   (Decrease)			Total   Nonadmitted   Restricted		Total Admitted   Restricted		Gross (Admitted &   Nonadmitted)   Restricted to Total Assets		Admitted  Restricted to  Total Admitted Assets
Collateral held under security lending agreements	$	2,004	$	111		$	–	$	2,115		1.05%		1.06%
Subject to repurchase agreements		113		87			–		200		0.10%		0.10%
Subject to dollar repurchase agreements		805		153			–		958		0.48%		0.48%
FHLB capital stock		100		11			–		111		0.06%		0.06%
On deposit with states		48		(4	)		–		44		0.02%		0.02%
Pledged as collateral to FHLB (including assets backing funding agreements)		3,089		729			–		3,818		1.90%		1.90%
Pledged as collateral not captured in other categories		986		413			–		1,399		0.70%		0.70%
Other restricted assets		1,582		107			–		1,689		0.84%		0.84%
Total restricted assets	$	8,727	$	1,607		$	–	$	10,334		5.15%		5.16%

The amounts reported as other restricted assets in the table above represent assets held in trust related to reinsurance.

The following tables show the pledged or restricted assets in other categories as of December 31, 2020 and 2019, respectively:

	Gross (Admitted & Nonadmitted) Restricted 2020
Description of Assets	Total General   Account (G/A)		G/A Supporting   S/A Activity		Total Separate   Account (S/A) Restricted Assets		S/A Assets Supporting   G/A Activity		Total
Derivatives	$	1,376	$	–	$	–	$	–	$	1,376
Secured funding agreements		21		–		–		–		21
AMBAC		2		–		–		–		2
Total	$	1,399	$	–	$	–	$	–	$	1,399

	Gross (Admitted & Nonadmitted) Restricted						Percentage
Description of Assets	Total From   Prior Year (2019)		Increase/   (Decrease)		Total Current   Year Admitted   Restricted		Gross   (Admitted &   Nonadmitted) Restricted to Total Assets		Admitted Restricted to  Total Admitted  Assets
Derivatives	$	977	$	399	$	1,376		0.69%		0.69%
Secured funding agreements		6		15		21		0.01%		0.01%
AMBAC		2		–		2		0.00%		0.00%
Total	$	985	$	414	$	1,399		0.70%		0.70%

53

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2020 and 2019:

2020
Collateral Assets	Carrying     Value		Fair Value		Total Assets (Admitted and Nonadmitted)			% of CV to Total Admitted Assets
Cash	$	1,574	$	1,574		2.00	%		2.01	%
Securities lending collateral assets		2,115		2,115		2.68			2.70
Other		33		33		0.04			0.04
Total collateral assets	$	3,722	$	3,722		4.72	%		4.75	%

	Amount		% of Liability to Total Liabilities
Recognized obligation to return collateral asset	$	3,724		5.29%

2019
Collateral Assets	Carrying     Value		Fair Value		Total Assets (Admitted and Nonadmitted)			% of CV to Total Admitted Assets
Cash	$	1,354	$	1,354		1.87	%		1.89	%
Securities lending collateral assets		2,004		2,004		2.77			2.79
Other		36		36		0.05			0.05
Total collateral assets	$	3,394	$	3,394		4.69	%		4.73	%

	Amount		% of Liability to Total Liabilities
Recognized obligation to return collateral asset	$	3,397		5.44	%

54

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Net Investment Income

Detail of net investment income is presented below:

	Year Ended December 31
	2020		2019		2018
Income:
Bonds	$	2,025	$	1,992	$	2,066
Preferred stocks		9		8		10
Common stocks		57		235		164
Mortgage loans on real estate		378		346		309
Real estate		40		55		56
Policy loans		116		117		119
Cash, cash equivalents and short-term investments		24		80		53
Derivatives		606		42		59
Other invested assets		214		64		84
Gross investment income		3,469		2,939		2,920
Less: investment expenses		210		283		304
Net investment income before amortization of IMR		3,259		2,656		2,616
Amortization of IMR		102		109		128
Net investment income	$	3,361	$	2,765	$	2,744

Realized Capital Gains (Losses)

Net realized capital gains (losses) on investments, including OTTI, are summarized below:

	Realized
	Year Ended December 31
	2020			2019			2018
Bonds	$	53		$	58		$	(307	)
Preferred stocks		(20	)		2			2
Common stocks		(13	)		25			(3	)
Mortgage loans on real estate		(1	)		–			(27	)
Real estate		257			30			5
Cash, cash equivalents and short-term investments		(1	)		–			–
Derivatives		249			519			(886	)
Variable annuity reserve hedge offset		(192	)		(160	)		–
Other invested assets		43			95			137
Change in realized capital gains (losses), before taxes		375			569			(1,079	)
Federal income tax effect		(128	)		(52	)		51
Transfer from (to) interest maintenance reserve		(134	)		(48	)		242
Net realized capital gains (losses) on investments	$	113		$	469		$	(786	)

55

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Unrealized Capital Gains (Losses)

The changes in net unrealized capital gains and losses on investments, including the changes in net unrealized foreign capital gains and losses were as follows:

	Change in Unrealized
	Year Ended December 31
	2020			2019			2018
Bonds	$	53		$	74		$	43
Preferred stocks		9			(9	)		(3	)
Common stocks		22			5			1
Affiliated entities		182			467			187
Mortgage loans on real estate		–			–			27
Derivatives		(364	)		(787	)		1,088
Other invested assets		3			67			42
Change in unrealized capital gains (losses), before taxes		(95	)		(183	)		1,385
Taxes on unrealized capital gains (losses)		(31	)		(93	)		(58	)
Change in unrealized capital gains (losses), net of tax	$	(126	)	$	(276	)	$	1,327

6. Premium and Annuity Considerations Deferred and Uncollected

Deferred and uncollected life premium and annuity considerations, net of reinsurance, at December 31, 2020 and 2019 were as follows:

	2020				2019
	Gross		Net of Loading		Gross		Net of Loading
Life and annuity:
Ordinary first-year business	$	1	$	–	$	9	$	2
Ordinary renewal business		206		172		422		370
Group life direct business		23		13		24		14
	$	230	$	185	$	455	$	386

56

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

7. Policy and Contract Attributes

Insurance Liabilities

Policy reserves, deposit-type contracts and policy claims at December 31, 2020 and 2019 were as follows:

	Year Ended December 31
	2020		2019
Life insurance reserves	$	25,805	$	23,650
Annuity reserves and supplementary contracts with life contingencies		18,328		15,478
Accident and health reserves (including long term care)		6,833		6,737
Total policy reserves	$	50,966	$	45,865
Deposit-type contracts		946		948
Policy claims		1,257		943
Total policy reserves, deposit-type contracts and claim liabilities	$	53,169	$	47,756

Life Insurance Reserves

The aggregate policy reserves for life insurance policies are based upon the 1941, 1958, 1980, 2001 and 2017 Commissioner’s Standard Ordinary Mortality Tables, the 1912, 1941 and 1961 Standard Industrial Mortality Tables, the 1960 Commissioner’s Standard Group Mortality Table, the American Men, Actuaries and American Experience Mortality Tables. The reserves are calculated using interest rates ranging from 2.00 to 6.50 percent and are computed principally on the Net Level Premium Valuation and the Commissioner’s Reserve Valuation Method. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s Reserve Valuation Method or Actuarial Guideline XXXVIII. Effective July 1, 2017, term insurance issued follows Valuation Manual section 20 (VM-20) reserve requirements.

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula.

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 date of death. 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. Effective July 1, 2017, for substandard term insurance policies, per VM-20 requirements, the substandard rating is applied to the reserve mortality. 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.

57

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

As of December 31, 2020 and 2019, the Company had insurance in force aggregating $52,537 and $65,518, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the IID. The Company established policy reserves of $1,586 and $1,936 to cover these deficiencies as of December 31, 2020 and 2019, respectively.

Participating life insurance policies were issued by the Company in prior years 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 0.05% of ordinary life insurance in force at December 31, 2020 and 2019.

Annuity Reserves and Supplementary Contracts Involving Life Contingencies

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 1.00 to 11.75 percent and mortality rates, where appropriate, from a variety of tables.

Annuity reserves also include GICs and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications of Insurance or Managed Care Contracts. 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.

For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with VM-21. VM-21 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The VM-21 reserve calculation covers all variable annuity products. 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 VM-21 is equal to the stochastic reserves plus the additional standard projection amount.

Both the stochastic reserves and the standard projection are determined as the conditional tail expectation (CTE)-70 of the scenario reserves. To determine the CTE-70 values, the Company used 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) and Society of Actuaries. The stochastic reserves uses prudent estimate assumptions based on Company experience, while the standard projection uses the assumptions prescribed in VM-21 for determining the additional standard projection amount.

58

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Accident and Health Liabilities

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.

At December 31, 2020 and 2019, the Company had no premium deficiency reserve related to accident and health policies.

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.

For indeterminate premium products, a full schedule of current and anticipated premium rates is developed at the point of issue. Premium rate adjustments are considered when anticipated future experience foretells deviations from the original profit standards. The source of deviation (mortality, persistency, expense, etc.) is an important consideration in the re-rating decision as well as the potential effect of a rate change on the future experience of the existing block of business.

The Company does not write any accident and health business that is subject to the Affordable Care Act risk sharing provisions.

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. Unpaid claims include amounts for losses and related adjustment expenses and are estimates of the ultimate net costs of all losses, reported and unreported. These estimates are subject to the impact of future changes in claim severity, frequency and other factors.

59

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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, 2020
2020	$	–	$	1,105		$	410	$	695
2019 and prior		2,009		(97	)		612		1,300
		2,009	$	1,008		$	1,022		1,995
Active life reserve	$	5,136						$	5,342
Total accident and health reserves	$	7,145						$	7,337
	Unpaid Claims   Liability Beginning of Year		Claims   Incurred			Claims   Paid		Unpaid Claims   Liability End of Year
Year ended December 31, 2019
2019	$	–	$	1,142		$	468	$	674
2018 and prior		1,996		(16	)		645		1,335
		1,996	$	1,126		$	1,113		2,009
Active life reserve	$	5,023						$	5,136
Total accident and health reserves	$	7,019						$	7,145

The change in the Company’s unpaid claims reserve was ($97) and ($16) for the years ended December 31, 2020 and 2019, respectively, for health claims that were incurred prior to those balance sheets dates. The change in 2020 was due to significantly better than expected experience primarily due to reduced medical claims and accidental deaths. The change in 2019 was in normal range.

Activity in the liability for unpaid claims adjustment expense is summarized as follows:

	Liability   Beginning   of Year		Incurred			Paid		Liability   End of Year
Year ended December 31, 2020
2019	$	–	$	37		$	22	$	15
2018 and prior		44		(14	)		2		28
	$	44	$	23		$	24	$	43
Year ended December 31, 2019
2018	$	–	$	33		$	19	$	14
2017 and prior		49		(15	)		4		30
	$	49	$	18		$	23	$	44

60

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The Company decreased the claim adjustment expense provision for insured events of prior years during 2020.

Deposit-type Contracts

Tabular interest on funds not involving life contingencies has been determined primarily by formula.

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.

Included in the liability for deposit-type contracts at December 31, 2020 and 2019 are approximately $12 and $11, 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.

61

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Withdrawal Characteristics of Annuity Reserves and Deposit Funds

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, deposit fund and life products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on annuity and deposit fund products, by withdrawal characteristics, is summarized as follows:

	December 31
	2020
Individual Annuities:	General     Account		Separate   Account with   Guarantees		Separate   Account Non-   Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	466	$	7	$	–	$	473		1  %
At book value less surrender charge of 5% or more		1,411		–		–		1,411		2
At fair value		4		–		74,045		74,049		83
Total with adjustment or at fair value		1,881		7		74,045		75,933		86
At book value without adjustment (minimal or no charge or adjustment)		8,050		–		–		8,050		9
Not subject to discretionary withdrawal provision		3,943		–		497		4,440		5
Total individual annuity reserves		13,874		7		74,542		88,423		100  %
Less reinsurance ceded		3,027		–		–		3,027
Net individual annuities reserves	$	10,847	$	7	$	74,542	$	85,396
	December 31
	2020
Group Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	1,886	$	23	$	–	$	1,909		4  %
At book value less surrender charge of 5% or more		21		–		–		21		–
At fair value		–		–		34,723		34,723		82
Total with adjustment or at fair value		1,907		23		34,723		36,653		86
At book value without adjustment (minimal or no charge or adjustment)		4,066		–		–		4,066		9
Not subject to discretionary withdrawal provision		2,124		–		42		2,166		5
Total group annuities reserves		8,097		23		34,765		42,885		100  %
Less reinsurance ceded		358		–		–		358
Net group annuities reserves	$	7,739	$	23	$	34,765	$	42,527

62

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

	December 31
	2020
Deposit-type contracts (no life contingencies):	General     Account		Separate   Account with   Guarantees		Separate   Account Non-   Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	5	$	–	$	–	$	5		1  %
Total with adjustment or at fair value		5		–		–		5		1
At book value without adjustment (minimal or no charge or adjustment)		2		–		–		2		–
Not subject to discretionary withdrawal provision		691		52		18		761		99
Total deposit-type contracts		698		52		18		768		100  %
Less reinsurance ceded		10		–		–		10
Net deposit-type contracts	$	688	$	52	$	18	$	758

Reconcililation to the Annual Statement:	Amount
Life & Accident & Health Annual Statement:
Exhibit 5, Annuities section, total (net)	$	17,423
Exhibit 5, Supp contracts with life contingencies section, total (net)		906
Exhibit 7, Deposit-type contracts, net balance at the end of the current year after reinsurance		945
Subtotal		19,274
Separate Accounts Annual Statement:
Exhibit 3, Annuities section, total		108,841
Exhibit 3, Supp contracts with life contingencies section, total		496
Other contract deposit funds		70
Subtotal		109,407
Combined total	$	128,681

	December 31
	2019
			Separate   Account with   Guarantees		Separate   Account Non-   Guaranteed		Total		Percent
	General
Individual Annuities:	Account
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	549	$	7	$	–	$	556		1  %
At book value less surrender charge of 5% or more		910		–		–		910		1
At fair value		4		–		69,434		69,438		84
Total with adjustment or at fair value		1,463		7		69,434		70,904		86
At book value without adjustment (minimal or no charge or adjustment)		8,764		–		–		8,764		10
Not subject to discretionary withdrawal provision		2,820		–		399		3,219		4
Total individual annuity reserves		13,047		7		69,833		82,887		100  %
Less reinsurance ceded		3,043		–		–		3,043
Net individual annuity reserves	$	10,004	$	7	$	69,833	$	79,844

63

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

	December 31
	2019
Group Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	1,108	$	27	$	–	$	1,135		3  %
At book value less surrender charge of 5% or more		–		–		–		–		–
At fair value		–		–		31,245		31,245		83
Total with adjustment or at fair value		1,108		27		31,245		32,380		86
At book value without adjustment (minimal or no charge or adjustment)		2,794		–		–		2,794		8
Not subject to discretionary withdrawal provision		2,219		–		38		2,257		6
Total group annuity reserves		6,121		27		31,283		37,431		100  %
Less reinsurance ceded		377		–		–		377
Net group annuity reserves	$	5,744	$	27	$	31,283	$	37,054
	December 31
	2019
Deposit-type contracts (no life contingencies):	General     Account		Separate   Account with   Guarantees		Separate   Account Non-   Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	5	$	–	$	–	$	5		1  %
Total with adjustment or at fair value		5		–		–		5		1
At book value without adjustment (minimal or no charge or adjustment)		1		–		–		1		–
Not subject to discretionary withdrawal provision		697		49		12		758		99
Total deposit-type contracts		703		49		12		764		100  %
Less reinsurance ceded		24		–		–		24
Net deposit-type contracts	$	679	$	49	$	12	$	740

Reconcililation to the Annual Statement:	Amount
Life & Accident & Health Annual Statement:
Exhibit 5, Annuities section, total (net)	$	14,604
Exhibit 5, Supp contracts with life contingencies section, total (net)		875
Exhibit 7, Deposit-type contracts, net balance at the end of the current year after reinsurance		948
Subtotal		16,427
Separate Accounts Annual Statement:
Exhibit 3, Annuities section, total		100,752
Exhibit 3, Supp contracts with life contingencies section, total		398
Other contract deposit funds		61
Subtotal		101,211
Combined total	$	117,638

64

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The amount of reserves on life products, by withdrawal characteristics, is summarized as follows:

	December 31
	2020
	General Account
	Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Term policies with cash value	$	254	$	254	$	389
Universal life		9,936		9,515		11,720
Universal life with secondary guarantees		5,153		5,043		10,712
Indexed universal life with secondary guarantees		4,663		3,067		4,301
Other permanent cash value life insurance		4,573		4,573		7,046
Variable universal life		661		644		1,529
Not subject to discretionary withdrawal or no cash values
Term policies without cash value		–		–		8,349
Accidental death benefits		–		–		50
Disability- active lives		–		–		49
Disability- disabled lives		–		–		167
Miscellaneous reserves		–		–		1,921
Total (gross)		25,240		23,096		46,233
Reinsurance ceded		4,203		4,203		20,428
Total (net)	$	21,037	$	18,893	$	25,805
		Separate Account - Guaranteed
	Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable universal life	$	665	$	665	$	665
Total (gross)		665		665		665
Total (net)	$	665	$	665	$	665
	Separate Account - Nonguaranteed
	Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable universal life	$	8,292	$	8,274	$	9,689
Total (gross)		8,292		8,274		9,689
Total (net)	$	8,292	$	8,274	$	9,689

65

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Reconcililation to the Annual Statement:	Amount
Life & Accident & Health Annual Statement:
Exhibit 5, Life insurance section, total (net)	$	24,725
Exhibit 5, Accidental death benefits section total (net)		23
Exhibit 5, Disability - active lives section, total (net)		23
Exhibit 5, Disability - disabled lives section, total (net)		146
Exhibit 5, Miscellaneous reserves section, total (net)		888
Subtotal		25,805
Separate Accounts Annual Statement:
Exhibit 3, Life insurance section, total		10,354
Subtotal		10,354
Combined total	$	36,159

	December 31
	2019
	General Account
	Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Term policies with cash value	$	174	$	223	$	377
Universal life		10,143		9,684		13,611
Universal life with secondary guarantees		3,586		3,499		10,028
Indexed universal life with secondary guarantees		3,964		2,536		3,628
Other permanent cash value life insurance		4,099		5,050		7,638
Variable universal life		647		634		1,560
Not subject to discretionary withdrawal or no cash values
Term policies without cash value		–		–		8,445
Accidental death benefits		–		–		52
Disability- active lives		–		–		67
Disability- disabled lives		–		–		172
Miscellaneous reserves		–		–		2,889
Total (gross)		22,613		21,626		48,467
Reinsurance ceded		4,156		4,156		24,817
Total (net)	$	18,457	$	17,470	$	23,650
	Separate Account - Guaranteed
	Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable universal life	$	653	$	653	$	653
Total (gross)		653		653		653
Total (net)	$	653	$	653	$	653

66

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

	Separate Account - Nonguaranteed
	Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Variable universal life	$	7,408	$	7,375	$	8,705
Total (gross)		7,408		7,375		8,705
Total (net)	$	7,408	$	7,375	$	8,705

Reconcililation to the Annual Statement:	Amount
Life & Accident & Health Annual Statement:
Exhibit 5, Life insurance section, total (net)	$	21,934
Exhibit 5, Accidental death benefits section total (net)		24
Exhibit 5, Disability - active lives section, total (net)		40
Exhibit 5, Disability - disabled lives section, total (net)		154
Exhibit 5, Miscellaneous reserves section, total (net)		1,498
Subtotal		23,650
Separate Accounts Annual Statement:
Exhibit 3, Life insurance section, total		9,358
Subtotal		9,358
Combined total	$	33,008

Separate Accounts

Certain separate and variable accounts held by the Company relate to individual variable life insurance policies. The benefits provided on the policies are determined by the performance and/or fair value of the investments held in the separate account. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative. The assets of these separate accounts are carried at fair value. The life insurance policies typically provide a guaranteed minimum death benefit.

Certain separate accounts held by the Company represent funds which are administered for pension plans. The assets consist primarily of fixed maturities and equity securities and are carried at fair value. The Company provides a minimum guaranteed return to policyholders of certain separate accounts. Certain other separate accounts do not have any minimum guarantees and the investment risks associated with fair value changes are borne entirely by the policyholder.

67

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Information regarding the separate accounts of the Company as of and for the years ended December 31, 2020, 2019 and 2018 is as follows:

	Guaranteed Indexed		Nonindexed Guarantee Less Than or Equal to 4%		Nonindexed Guarantee Greater Than 4%		Nonguaranteed Accounts Separate		Total
Premiums, deposits and other considerations for the year ended December 31, 2020	$	–	$	1	$	12	$	9,402	$	9,415
Reserves for separate accounts as of December 31, 2020 with assets at:
Fair value	$	–	$	80	$	2	$	119,013	$	119,095
Amortized cost		–		665		–		–		665
Total as of December 31, 2020	$	–	$	745	$	2	$	119,013	$	119,760
Reserves for separate accounts by withdrawal characteristics as of December 31, 2020:
With fair value adjustment	$	–	$	30		–	$	–	$	30
At fair value		–		–		–		118,457		118,457
At book value without fair value adjustment and with current surrender charge of less than 5%		–		665		–		–		665
Subtotal		–		695		–		118,457		119,152
Not subject to discretionary withdrawal		–		50		2		556		608
Total separate account reserve liabilities at December 31, 2020	$	–	$	745	$	2	$	119,013	$	119,760
	Guaranteed Indexed		Nonindexed Guarantee Less Than or Equal to 4%		Nonindexed Guarantee Greater Than 4%		Nonguaranteed Accounts Separate		Total
Premiums, deposits and other considerations for the year ended December 31, 2019	$	–	$	–	$	12	$	9,623	$	9,635
Reserves for separate accounts as of December 31, 2019 with assets at:
Fair value	$	–	$	65	$	18	$	109,833	$	109,916
Amortized cost		–		653		–		–		653
Total as of December 31, 2019	$	–	$	718	$	18	$	109,833	$	110,569
Reserves for separate accounts by withdrawal characteristics as of December 31, 2019:
With fair value adjustment	$	–	$	35	$	–	$	–	$	35
At fair value		–		–		–		109,384		109,384
At book value without fair value adjustment and with current surrender charge of less than 5%		–		653		–		–		653
Subtotal		–		688		–		109,384		110,072
Not subject to discretionary withdrawal		–		30		18		449		497
Total separate account reserve liabilities at December 31, 2019	$	–	$	718	$	18	$	109,833	$	110,569

68

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

	Guaranteed Indexed		Nonindexed Guarantee Less Than or Equal to 4%		Nonindexed Guarantee Greater Than 4%		Nonguaranteed Accounts Separate		Total
Premiums, deposits and other considerations for the year ended December 31, 2018	$	–	$	–	$	12	$	9,855	$	9,867
Reserves for separate accounts as of December 31, 2018 with assets at:
Fair value	$	–	$	67	$	15	$	97,484	$	97,566
Amortized cost		–		647		–		–		647
Total as of December 31, 2018	$	–	$	714	$	15	$	97,484	$	98,213
Reserves for separate accounts by withdrawal characteristics as of December 31, 2018:
With fair value adjustment	$	–	$	43	$	–	$	–	$	43
At fair value		–		–		–		97,125		97,125
At book value without fair value adjustment and with current surrender charge of less than 5%		–		647		–		–		647
Subtotal		–		690		–		97,125		97,815
Not subject to discretionary withdrawal		–		24		15		359		398
Total separate account reserve liabilities at December 31, 2018	$	–	$	714	$	15	$	97,484	$	98,213

A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:

	Year Ended December 31
	2020		2019		2018
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	9,484	$	10,116	$	10,219
Transfers from separate accounts		(14,305)		(15,216)		(14,591)
Net transfers from separate accounts		(4,821)		(5,100)		(4,372)
Miscellaneous reconciling adjustments		(29)		(30)		(35)
Net transfers as reported in the summary of operations of the life, accident and health annual statement	$	(4,850)	$	(5,130)	$	(4,407)

69

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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, 2020 and 2019, the Company’s separate account statement included legally insulated assets of $121,803 and $112,206, respectively. The assets legally insulated from general account claims at December 31, 2020 and 2019 are attributed to the following products:

	2020		2019
Group annuities	$	32,435	$	29,613
Variable annuities		77,850		72,488
Fixed universal life		696		684
Variable universal life		9,257		8,034
Variable life		1,492		1,338
Modified separate accounts		50		27
Registered market value annuity product - SPL		12		13
WRL asset accumulator		11		9
Total separate account assets	$	121,803	$	112,206

At December 31, 2020 and 2019, the Company held separate account assets not legally insulated from the general account in the amount of $17 and $22, respectively, related to variable annuity products.

Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. To compensate the general account for the risk taken, the separate account paid risk charges of $565, $552, $550, $538, and $517, to the general account in 2020, 2019, 2018, 2017, and 2016, respectively. During the years ended December 31, 2020, 2019, 2018, 2017, and 2016 the general account of the Company had paid $75, $75, $69, $70, and $119 respectively, toward separate account guarantees.

At December 31, 2020 and 2019, the Company reported guaranteed separate account assets at amortized cost in the amount of $678 and $653, respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $786 and $719 at December 31, 2020 and 2019, respectively, which would have resulted in an unrealized gain of $107 and $66, respectively, had these assets been reported at fair value.

The Company does not participate in securities lending transactions within the separate account.

8. 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.

70

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Premiums earned reflect the following reinsurance amounts:

	Year Ended December 31
	2020			2019			2018
Direct premiums	$	19,191		$	17,922		$	17,428
Reinsurance assumed - non affiliates		1,248			1,279			1,337
Reinsurance assumed - affiliates		2			215			243
Reinsurance ceded - non affiliates		(2,612	)		(2,540	)		(3,120	)
Reinsurance ceded - affiliates		(1,106	)		(1,168	)		(1,291	)
Net premiums earned	$	16,723		$	15,708		$	14,597

The Company received reinsurance recoveries in the amount of $4,316, $4,468 and $4,266, during 2020, 2019 and 2018, respectively. At December 31, 2020 and 2019, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $939 and $1,176. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2020 and 2019 of $36,764 and $46,752, respectively, of which $13,916 and $15,156 were ceded to affiliates.

During 2020, 2019 and 2018, amortization of deferred gains associated with previously transacted reinsurance agreements was released into income in the amount of $274 ($179 after tax), $213 ($139 after tax) and $490 ($319 after tax), respectively.

On January 29, 2020, Senior Health Insurance Company of Pennsylvania (SHIP) was placed in rehabilitation by order of the Commonwealth Court of Pennsylvania. The Company worked with the Receiver on a proposal to recapture the business throughout 2020 and a proposal was approved on December 29, 2020. The agreement resulted in the Company recapturing all business previously ceded to SHIP and receiving $310 of assets held in trust while legal proceedings were underway. The assets in excess of the ultimate settlement of the liabilities will be returned to the receiver. The Company will also assume responsibility for administration of the business. No gain or loss was recognized as part of the recapture.

On June 30, 2020, the Company, Transamerica Pacific Re, Inc. (TPRe), and Transamerica Pacific Insurance Company (TPIC) entered into a novation agreement whereby the Company consented to TPIC’s assignment and transfer of its rights and obligations under the universal life coinsurance agreements to TPRe. The novation resulted in no gain or loss. Also on June 30, 2020, the Company recaptured certain universal life policy risks not associated with the secondary guarantee from TPRe for consideration of $2,124 equal to the statutory reserves recaptured resulting in no gain loss and amended and restated the universal life coinsurance agreements to cede only certain universal life secondary guarantee risks to TPRe.

Effective October 1, 2020, the Company recaptured several blocks of life insurance business from an affiliate, Ironwood Re Corp. The Company released funds withheld of $313 and recaptured policyholder reserves of $385 and claims reserves of $4. The transaction resulted in a pre-tax loss of $76 which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cessions

71

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

of this business to Ironwood in the amount of $125 with a corresponding charge to unassigned surplus.

Also effective October 1, 2020, an amendment was made to the military life reinsurance agreement with Ironwood Re Corp. to increase the cession percentage to 100%. As a result of this amendment, the Company ceded additional policyholder reserves of $201 and due premiums of $7 and provided net consideration of $76 which was retained as funds withheld by the Company. The transaction resulted in a pre-tax gain of $118 which was charged directly to unassigned surplus. Recognition of the surplus increase as income shall be reflected on a net of tax basis as earnings emerge from the business reinsured.

Effective October 1, 2020, the Company recaptured term insurance business from Ironwood Re Corp. The Company received consideration of $206 in the form of released funds withheld and a cash payment, recaptured $445 of policy holder and claim reserves and $2 of due premiums. The transaction resulted in a pre-tax loss of $237 which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cessions of this business to Ironwood in the amount of $106 with a corresponding charge to unassigned surplus.

Effective December 31, 2020, the Company ceded certain term insurance business to an unaffiliated entity. The Company paid cash consideration of $201, ceded $439 of reserves and $2 of due and deferred premium. The transaction resulted in a pre-tax gain of $236 which has been recorded directly to unassigned surplus. Recognition of the surplus increase as income shall be reflected on a net of tax basis as earnings emerge from the business reinsured.

Effective January 1, 2019, the Company recaptured term insurance business of a reinsurance treaty with an affiliate, LIICA Re II, Inc. The universal life with secondary guarantees remained reinsured under the treaty. The Company received cash of $15, recaptured $68 in policyholder reserves, and net due, deferred and advance premiums of $2. The transaction resulted in a pre-tax loss of $51, which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cession of this business to LIICA Re II in the amount of $14 with a corresponding charge to unassigned surplus.

Effective July 1, 2019, the Company recaptured indexed universal life and variable universal life insurance business from an affiliate, WFG Reinsurance Limited. The Company paid cash of $39, recaptured $2 in policyholder reserves, and policy loans of $1. The transaction resulted in a pre-tax loss of $40 which was partially offset by a commission expense allowance of $6 as unamortized amounts previously deferred to unassigned surplus related to the original inforce reinsurance transactions were released.

In January 2018, Scottish Re Group announced a sale and restructuring plan and commenced Chapter 11 (reorganization) procedures for some of its subsidiaries. In December 2018, the Delaware Department of Insurance began oversight procedures of Scottish Re (U.S.), Inc. (SRUS), with whom the Company is a counterparty for some of its reinsurance activities. SRUS was ordered into receivership for the purposes of rehabilitation on March 6, 2019. On May 16, 2019, the IID suspended the certificate of authority for SRUS but later clarified that reserve credit

72

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

could be taken on reinsurance agreements entered into prior to the revocation date if a recovery analysis could be illustrated. Now, with the continued delays of the reorganization legal proceedings and with no reliable financial information being provided by the receiver or SRUS, the Company has determined it is unable to support a favorable recovery analysis. Therefore, the Company did not take statutory reserve credit and established a loss contingency allowance for doubtful recoveries of billed and unbilled claims in its December 31, 2020 financial statements. The impact was a $182 charge reported in the Statements of Operations.

Effective June 29, 2018, the Company and Wilton Re U. S. Holdings, Inc. (Wilton Re) entered into an agreement as to the “Final Net Settlement Statements and Other Matters” (NSS) associated with the reinsurance agreement between the two companies that was effective April 1, 2017. This agreement related to the reinsurance of the payout annuity and BOLI/COLI business to Wilton Re. As a result of the mutual concessions between the parties, Wilton Re will pay the Company $66. In addition, the Company released a reinsurance receivable in the amount of $12 related to the initial proposed final NSS that was used for closing. The net pretax impact to capital and surplus of these adjustments was $55.

Effective June 29, 2018, the Company and Wilton Re agreed to Amendment No. 1 to the Reinsurance Agreement dated June 28, 2017. This amendment converted risks that were ceded on a modified coinsurance basis to a coinsurance basis by reducing the amount of reinsurance ceded in the NSS and reducing the modco reserves ceded. At the close of the original transaction, the Company offset the reserve ceded related to a modified separate account contract. Within the amendment to the Master Transaction Agreement, the Company agrees to pay Wilton Re an amount in cash equal to $95, which will be offset in full against an equivalent balance of other amounts due and payable to the Company, such that no cash or other assets shall be required to be transferred by the Parties.

Effective July 1, 2018, the Company entered into a reinsurance agreement to cede an in force block of term insurance business to SCOR Global Life Americas. The Company paid consideration of $260, ceded $675 in policyholder reserves, $28 in claim reserves, $8 in due premium (net of commissions), and $13 in interest maintenance reserves liability. The transaction resulted in a pre-tax gain of $448 which will be identified separately on the insurer’s statutory financial statement as a surplus item. Recognition of the surplus increase as income shall be reflected on a net of tax basis as earnings emerge from the business reinsured.

Effective October 1, 2018, the Company recaptured credit insurance business from an affiliate, Ironwood Re Corp. The Company released $2 in funds withheld liability and recaptured $2 of policyholder reserves. The transaction resulted in a pre-tax loss of $1 which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cession of this business to Ironwood in the amount of $1 ($1 after-tax) with a corresponding charge to unassigned surplus.

Effective October 1, 2018, the Company recaptured insurance business from an affiliate, Harbor View Re Corp. The Company paid cash of $1, released a funds withheld liability of $10 and assumed $10 of policyholder reserves and net due premiums and commissions of $1. The transaction resulted in a pre-tax loss of $1 which has been included in the Statements of Operations.

73

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

Effective July 1, 2018, the Company recaptured term insurance business from an affiliate, Stonebridge Reinsurance Company. The Company received cash of $137, recaptured $680 in policyholder reserves, $29 in claim reserves, net due premiums and commissions of $12 and $11 in interest maintenance reserve liability. The transaction resulted in a pre-tax loss of $571 which was included in the Statements of Operations. In addition, as a result of this transaction, amounts previously deferred to surplus under SSAP No. 61R, were released resulting in an increase to earnings, net of tax, of $184.

9. Income Taxes

The net deferred income tax asset at December 31, 2020 and 2019 and the change from the prior year are comprised of the following components:

	December 31, 2020
	Ordinary		Capital			Total
Gross Deferred Tax Assets	$	1,923	$	243		$	2,166
Statutory Valuation Allowance Adjustment		–		–			–
Adjusted Gross Deferred Tax Assets		1,923		243			2,166
Deferred Tax Assets Nonadmitted		226		–			226
Subtotal (Net Deferred Tax Assets)		1,697		243			1,940
Deferred Tax Liabilities		698		430			1,128
Net Admitted Deferred Tax Assets (Liabilities)	$	999	$	(187	)	$	812
	December 31, 2019
	Ordinary		Capital			Total
Gross Deferred Tax Assets	$	2,288	$	133		$	2,421
Statutory Valuation Allowance Adjustment		14		–			14
Adjusted Gross Deferred Tax Assets		2,274		133			2,407
Deferred Tax Assets Nonadmitted		427		–			427
Subtotal (Net Deferred Tax Assets)		1,847		133			1,980
Deferred Tax Liabilities		1,000		238			1,238
Net Admitted Deferred Tax Assets (Liabilities)	$	847	$	(105)		$	742
			Change
	Ordinary		Capital			Total
Gross Deferred Tax Assets	$	(365)	$	110		$	(255)
Statutory Valuation Allowance Adjustment		(14)		–			(14)
Adjusted Gross Deferred Tax Assets		(351)		110			(241)
Deferred Tax Assets Nonadmitted		(201)		–			(201)
Subtotal (Net Deferred Tax Assets)		(150)		110			(40)
Deferred Tax Liabilities		(302)		192			(110)
Net Admitted Deferred Tax Assets (Liabilities)	$	152	$	(82)		$	70

74

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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

	Year Ended December 31
	2020		2019		Change
Deferred Tax Assets:
Ordinary
Policyholder reserves	$	824	$	960	$	(136)
Investments		227		403		(176)
Deferred acquisition costs		534		495		39
Policyholder dividends accrual		3		2		1
Fixed assets		–		7		(7)
Compensation and benefits accrual		34		20		14
Receivables - nonadmitted		32		32		–
Net operating loss carry-forward		–		44		(44)
Tax credit carry-forward		144		260		(116)
Contingent Experience Rate Refunds		32		1		31
Bad Debt Allowance		17		–		17
Litigation reserve		36		18		18
Other (including items <5% of total ordinary tax assets)		40		46		(6)
Subtotal		1,923		2,288		(365)
Statutory valuation allowance adjustment		–		14		(14)
Nonadmitted		226		427		(201)
Admitted ordinary deferred tax assets		1,697		1,847		(150)
Capital:
Investments		243		133		110
Subtotal		243		133		110
Statutory valuation allowance adjustment		–		–		–
Nonadmitted		–		–		–
Admitted capital deferred tax assets		243		133		110
Admitted deferred tax assets	$	1,940	$	1,980	$	(40)
	Year Ended December 31
	2020		2019		Change
Deferred Tax Liabilities:
Ordinary
Investments	$	467	$	731	$	(264)
Policyholder reserves		223		267		(44)
Other (including items <5% of total ordinary tax liabilities)		8		2		6
Subtotal		698		1,000		(302)
Capital
Investments		430		238		192
Subtotal		430		238		192
Deferred tax liabilities		1,128		1,238		(110)
Net admitted deferred tax assets (liabilities)	$	812	$	742	$	70

75

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

As a result of the 2017 Tax Cuts and Jobs Act (TCJA), the Company’s tax reserve deductible temporary difference decreased by ($396). This change results in an offsetting $396 deductible taxable temporary difference that will be amortized into taxable income evenly over the eight years subsequent to 2017. The remaining amortizable balance is included within the Policyholder Reserves line items above.

At December 31, 2020, the Company released its valuation allowance against ordinary deferred tax assets of $14 related to Foreign Tax Credits. During the 2020 tax year, the Company fully utilized its foreign tax credit carryover resulting in no remaining carryover.

As discussed in Note 2, for the years ended December 31, 2020 and 2019, 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, 2020
			Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a)	Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks		$	–	$	1	$	1
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)			754		57		811
	1.	Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		754		57		811
	2.	Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		1,095
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			943		185		1,128
2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))		$	1,697	$	243	$	1,940

76

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

			December 31, 2019
			Ordinary		Capital			Total
Admission Calculation Components SSAP No. 101
2(a)	Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks		$	–	$	11		$	11
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)			813		32			845
	1.	Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		813		32			845
	2.	Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX			1,291
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			1,034		90			1,124
2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))		$	1,847	$	133		$	1,980
			Ordinary		Change Capital			Total
Admission Calculation Components SSAP No. 101
2(a)	Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks		$	–	$	(10	)	$	(10)
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)			(59)		25			(34)
	1.	Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		(59)		25			(34)
	2.	Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX			(196)
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			(91)		95			4
2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))		$	(150)	$	110		$	(40)

	December 31
	2020		2019		Change
Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount		735%		874%		-139%
Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 Above	$	7,298	$	8,610	$	(1,312)

77

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The impact of tax planning strategies at December 31, 2020 and 2019 was as follows:

	December 31, 2020
	Ordinary       Percent			Capital         Percent			Total Percent
Impact of Tax Planning Strategies:
(% of Total Adjusted Gross DTAs)		0	%		0	%		0	%
(% of Total Net Admitted Adjusted Gross DTAs)		7	%		0	%		7	%
	December 31, 2019
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
(% of Total Adjusted Gross DTAs)		0	%		0	%		0	%
(% of Total Net Admitted Adjusted Gross DTAs)		1	%		0	%		1	%

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
	2020		2019		Change
Current Income Tax
Federal	$	(109)	$	(39)	$	(70)
Subtotal		(109)		(39)		(70)
Federal income tax on net capital gains		128		52		76
Federal and foreign income taxes incurred	$	19	$	13	$	6
	Year Ended December 31
	2019		2018		Change
Current Income Tax
Federal	$	(39)	$	(36)	$	(3)
Subtotal		(39)		(36)		(3)
Federal income tax on net capital gains		52		(51)		103
Federal and foreign income taxes incurred	$	13	$	(87)	$	100

78

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate to income before tax as follows:

	Year Ended December 31
	2020		2019		2018
Current income taxes incurred	$	19	$	13	$	(87)
Change in deferred income taxes (without tax on unrealized gains and losses)		126		160		(168)
Total income tax reported	$	145	$	173	$	(255)
Income before taxes	$	1,444	$	3,770	$	(1,402)
Federal statutory tax rate		21.00%		21.00%		21.00%
Expected income tax expense (benefit) at statutory rate	$	303	$	792	$	(294)
Increase (decrease) in actual tax reported resulting from:
Pre-tax income of disregarded subsidiaries	$	17	$	21	$	11
Dividends received deduction		(59)		(90)		(77)
Tax-exempt income		(3)		(11)		(4)
Nondeductible expenses		6		5		6
Pre-tax items reported net of tax		(35)		(53)		(23)
Tax credits		(40)		(43)		(61)
Prior period tax return adjustment		(11)		15		(10)
Change in statutory valuation allowance		(14)		14		(2)
Change in uncertain tax positions		–		–		4
Deferred tax change on other items in surplus		(20)		(478)		211
Other		1		1		(16)
Total income tax reported	$	145	$	173	$	(255)

The Company’s federal income tax return is consolidated with other included affiliated companies. Please see the listing of companies in Appendix A. 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 been filed for 2020.

79

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The amounts, origination dates and expiration dates of operating loss and tax credit carryforwards available for tax purposes:

Description	Amounts		Origination Dates	Expiration Dates
General Business Credit	$	4	12/31/2012	12/31/2032
General Business Credit		17	12/31/2013	12/31/2033
General Business Credit		25	12/31/2014	12/31/2034
General Business Credit		56	12/31/2015	12/31/2035
General Business Credit		7	12/31/2016	12/31/2036
General Business Credit		10	12/31/2017	12/31/2037
General Business Credit		7	12/31/2018	12/31/2038
General Business Credit		8	12/31/2019	12/31/2039
General Business Credit		12	12/31/2020	12/31/2040
General Business Credit Total	$	146

The following is income tax expense for current year and preceding years that is available for recoupment in the event of future losses:

	Total
2018	$	–
2019	$	–
2020	$	1

The total amount of the unrecognized tax benefits that if recognized, would affect the effective income tax rate:

	Unrecognized Tax     Benefits
Balance at January 1, 2019	$	21
Tax positions taken during prior period		–
Balance at December 31, 2019	$	21
Tax positions taken during prior period		–
Balance at December 31, 2020	$	21

80

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The Company classifies interest and penalties related to income taxes as income tax expense. The amount of interest and penalties accrued on the balance sheets as income taxes includes the following:

	Interest		Penalties		Total payable       (receivable)
Balance at January 1, 2018	$	(3)	$	–	$	(3)
Interest expense (benefit)		4		–		4
Cash received (paid)		2		–		2
Balance at December 31, 2018	$	3	$	–	$	3
Interest expense (benefit)		6		–		6
Balance at December 31, 2019	$	9	$	–	$	9
Interest expense (benefit)		–		–		–
Penalties expense (benefit)		–		–		–
Cash received (paid)		–		–		–
Balance at December 31, 2020	$	9	$	–	$	9

The Company has no federal income tax returns currently under examination. The Internal Revenue Service completed its examination for years 2009 through 2013 resulting in tax return adjustments for which an appeals conference was requested. Federal income tax returns filed in 2017 through 2019 remain open, subject to potential future examination. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.

10. Capital and Surplus

The Company has authorized 1,000,000 common stock shares at $10 per share par value of which 676,190 shares were issued and outstanding at December 31, 2020.

The Company has 42,500 Series A preferred shares authorized, of which 0 shares were issued and outstanding at December 31, 2020. The Company repurchased its Series A preferred shares for $58,000 on December 26, 2006 and previously reported 42,500 shares of Series A preferred stock outstanding at $10 par, carried as treasury stock. It was determined that these shares were cancelled by operation of law as they were not stipulated by the Board of Directors to be treasury shares at the time they were repurchased. The cancellation and removal of the preferred stock had no impact to capital and surplus of the Company. The Company also has 250,000 Series B preferred non-voting shares authorized at $10 per share par value, of which 0 shares were issued and outstanding at December 31, 2020.

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 the Company’s statutory surplus as of the preceding December 31, or (b) the Company’s 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 maximum payment which may be made in 2021, without the prior approval of insurance regulatory authorities, is $1,178.

81

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

On December 7, 2020, the Company paid an ordinary common stock dividend of $500 to CGC.

On May 13, 2020, TPLIC paid a dividend to its parent company, CGC, in the amount of $700. CGC then contributed this amount to the Company. The dividend and contribution included $77 in cash and $623 in securities. This transaction occurred prior to the merger of TPLIC and the Company. This transaction had no overall impact to capital and surplus of the merged Company.

On December 20, 2019, the Company paid extraordinary common stock dividends of $725 to CGC.

On June 21, 2019, the Company paid a return of capital of $250 to CGC.

On February 1, 2019, the Company paid an ordinary common stock dividend of $8 to CGC.

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 various risk factors. At December 31, 2020, the Company meets the minimum RBC requirements.

The Company’s surplus notes were held by CGC and Transamerica Corporation (TA Corp). These notes were due 20 years from the date of issuance at an interest rate of 6% and were 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 was to be made before the holders of common stock become entitled to any distribution of the remaining assets of the Company.

On June 22, 2020, the Company repaid in full its $60 surplus note with CGC. On December 20, 2019, the Company repaid in full its $57 surplus note with TA Corp and made a partial repayment of $43 on its surplus note with CGC. On June 21, 2019, the Company repaid $150 on its surplus note with TA Corp. The Company received approval from IID for each of these transactions as well as prior to making quarterly interest payments.

11. Securities Lending

The Company participates in an agent-managed securities lending program in which the Company primarily loans out US Treasuries and other bonds. The Company receives collateral equal to 102% of the fair value of the loaned government or 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 or 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, 2020 and 2019, respectively, securities with a fair value of $2,000 and $1,837 were on loan under securities lending agreements. At December 31, 2020 and 2019, the collateral

82

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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 $2,115 and $2,004 at December 31, 2020 and 2019, respectively.

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
	2020		2019
Open	$	2,115	$	2,004
Securities received		–		–
Total collateral received	$	2,115	$	2,004

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:

	2020				2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Open	$	215	$	215	$	70	$	70
30 days or less		656		656		551		551
31 to 60 days		429		429		819		819
61 to 90 days		219		219		200		200
91 to 120 days		393		393		195		195
121 to 180 days		203		203		169		169
Total		2,115		2,115		2,004		2,004
Securities received		–		–		–		–
Total collateral reinvested	$	2,115	$	2,115	$	2,004	$	2,004

For securities lending, the Company’s source of cash used 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 $2,116 (fair value of $2,115) that are currently tradable securities that could be sold and used to pay for the $2,115 in collateral calls that could come due under a worst-case scenario.

12. Retirement and Compensation Plans

Defined Contribution Plans

The Company’s employees participate in a contributory defined contribution plan sponsored by TA Corp which is qualified under Section 401(k) of the Internal Revenue Code (IRC). Generally, employees of the Company who customarily work at least 20 hours per week and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to 100% of eligible earnings, subject to government or other plan restrictions for certain key

83

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

employees. The Company will match an amount up to three percent of the participant’s eligible earnings. 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, as amended (ERISA). Benefits expense of $14, $14 and $15 was allocated to the Company for the years ended December 31, 2020, 2019 and 2018 respectively.

Defined Benefit Plans

The Company’s employees participate in a qualified defined benefit pension plan sponsored by TA Corp. Generally, employees of the Company who customarily work at least 20 hours per week and complete six months of continuous service and meet the other eligibility requirements are participants of the plan. The Company has no legal obligation for the plan. The benefits are based on years of service and the employee’s eligible compensation. The plan provides benefits based on a traditional final average formula or a cash balance formula. The plan is subject to the reporting and disclosure requirements of ERISA.

TA Corp sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The Company has no legal obligation for the plan. The plans are noncontributory and benefits are based on years of service and the employee’s eligible compensation. The plan provides benefits based on a traditional final average formula or cash balance formula. The plans are unfunded and nonqualified under the IRC.

The Company recognizes pension expense equal to its allocation from TA Corp. The pension expense related to both the qualified defined pension plan and the supplemental retirement plans 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, which is within the guidelines of SSAP No. 102, Pensions. Pension expenses were $27, $28 and $27 for the years ended December 31, 2020, 2019 and 2018, respectively.

In addition to pension benefits, TA Corp sponsors unfunded plans that provide health care and life insurance benefits to retired Company employees meeting certain eligibility requirements. The Company has no legal obligation for the plan. Portions of the medical and dental plans are contributory. The expenses of the postretirement plans are allocated among the participating companies based on IAS 19 and based upon actuarial participant benefit calculations which is within the guidelines of SSAP No. 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of postretirement expenses was $5, $6 and $6 for the years ended December 31, 2020, 2019 and 2018, respectively.

Other Plans

TA Corp has established 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, 2020, 2019 and 2018 was insignificant.

84

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

13. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

The Company is party to a shared services and cost sharing agreement among and between the Transamerica companies, under 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. Effective August 1, 2020, the Company, and an affiliate, TFLIC, entered into a Shared Services and Cost Sharing Agreement for both parties to provide accounting, administrative, and other advisory services in accordance with the agreement. The agreement, filed and approved by the IID, replaces prior agreements between the entities. The amount received by the Company as a result of being a party to these agreements was $703, $486 and $385 during 2020, 2019 and 2018, respectively. The amount paid as a result of being a party to these agreements was $698, $352 and $360 during 2020, 2019 and 2018, respectively. Fees charged between affiliates approximate their cost.

The Company is party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors (AURA), LLC whereby AURA serves as the administrator and advisor for the Company’s mortgage loan operations. The Company paid $20, $5, and $6 for these services during 2020, 2019 and 2018, respectively.

The Company is party to an Investment Management Agreement with AEGON USA Investment Management (AUIM), LLC whereby AUIM acts as a discretionary investment manager for the Company. The Company paid $89, $97, and $99 for these services during 2020, 2019 and 2018, respectively.

The Company has an administration service agreement with TAM to provide administrative services to the Transamerica Series Trust. The Company received $149, $151 and $160 for these services during 2020, 2019 and 2018, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $43, $51 and $41 for the years ended December 31, 2020, 2019 and 2018, respectively.

Receivables from and payables to affiliates bear interest at the thirty-day commercial paper rate. During 2020, 2019 and 2018, the Company received (paid) net interest of $0, ($2) and ($1) from (to) affiliates, respectively. At December 31, 2020 and 2019, respectively, the Company reported net receivables (payables) from (to) affiliates of $191 and ($1). Terms of settlement require that these amounts are settled within 60 days.

85

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

At December 31, 2020, the Company had short-term intercompany notes receivable of $149 as follows. In accordance with SSAP No. 25, Affiliates and Other Related Parties, these notes are reported as short-term investments.

Receivable from	Amount		Due By	Interest Rate
TA Corp	$	5	August 3, 2021		0.10%
TA Corp		128	October 1, 2021		0.07%
TA Corp		10	November 24, 2021		0.09%
TA Corp		6	December 15, 2021		0.08%

At December 31, 2019, the Company had short-term intercompany notes receivable of $343.

Receivable from	Amount		Due By	Interest Rate
TA Corp	$	78	September 4, 2020		2.04%
TA Corp		1	September 5, 2020		2.04%
TA Corp		43	September 19, 2020		2.04%
TA Corp		49	October 21, 2020		1.92%
TA Corp		9	December 18, 2020		1.61%
TA Corp		44	December 26, 2020		1.61%
TA Corp		25	December 29, 2020		1.61%
TA Corp		94	December 30, 2020		1.61%

On June 23, 2020, the Company provided $5 to TPRe in consideration for 5,000 shares of its stock becoming the sole shareholder of TPRe. The Company provided an additional capital contribution of $70 to TPRe on June 26, 2020.

The Company utilizes the look-through approach in valuing its investment in the following entities.

	Book Adjusted
	Carrying Value
Real Estate Alternatives Portfolio 2, LLC	$	19
Real Estate Alternatives Portfolio 3, LLC		21
Real Estate Alternatives Portfolio 3A, Inc		6
Real Estate Alternatives Portfolio 4 HR, LLC		142
Real Estate Alternatives Portfolio 4 MR, LLC		9
Aegon Workforce Housing Fund 2, L.P.		218
Aegon Workforce Housing Fund 3, L.P.		18
Natural Resources Alternatives Portfolio I, LLC		280
Natural Resources Alternatives Portfolio II, LLC		16
Natural Resources Alternatives Portfolio 3, LLC		229
TA Private Equity Assets LLC		296
Zero Beta Fund, LLC		71

These entity’s financial statements are not audited and the Company has limited the value of its investment in these entities to the value contained in the audited financial statements of the underlying LP/LLC investments, including adjustments required by SSAP No. 97 entities and/or non-SCA SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies, entities owned by these entities. All liabilities, commitments, contingencies, guarantees or obligations of

86

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

these entities which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in these entities.

The following tables shows the disclosures for all SCA investments, except 8bi entities, and balance sheet value (admitted and nonadmitted) as of December 31, 2020 and 2019:

December 31, 2020
SCA Entity	Percentage of SCA Ownership			Gross Amount		Admitted Amount		Nonadmitted   Amount
SSAP No. 97 8a Entities
None		–	%	$	–	$	–	$	–
Total SSAP No. 97 8a Entities		XXX		$	–	$	–	$	–
SSAP No. 97 8b(ii) Entities
None		–	%	$	–	$	–	$	–
Total SSAP No. 97 8b(ii) Entities		XXX		$	–	$	–	$	–
SSAP No. 97 8b(iii) Entities
AEGON Direct Marketing Services, Inc.		73	%	$	–	$	–	$	–
AEGON Financial Services Group, Inc.		100			–		–		–
Garnet Assurance Corporation		100			–		–		–
Garnet Assurance Corporation III		100			–		–		–
Intersecurities Insurance Agency, Inc.		100			–		–		–
Life Investors Alliance LLC		100			–		–		–
Real Estate Alternatives Portfolio 3A, Inc.		91			6		6		–
Transamerica Asset Management, Inc.		77			97		97		–
Transamerica Fund Services, Inc.		44			–		–		–
Total SSAP No. 97 8b(iii) Entities		XXX		$	103	$	103	$	–
SSAP No. 97 8b(iv) Entities
Transamerica Life (Bermuda) Ltd.		94	%	$	1,462	$	1,462	$	–
Total SSAP No. 97 8b(iv) Entities		XXX		$	1,462	$	1,462	$	–
Total SSAP No. 97 8b Entities (except 8bi entities)		XXX		$	1,565	$	1,565	$	–
Aggregate Total		XXX		$	1,565	$	1,565	$	–

87

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

December 31, 2019
SCA Entity	Percentage of SCA Ownership			Gross Amount		Admitted Amount		Nonadmitted   Amount
SSAP No. 97 8a Entities
None		–	%	$	–	$	–	$	–
Total SSAP No. 97 8a Entities		XXX		$	–	$	–	$	–
SSAP No. 97 8b(ii) Entities
None		–	%	$	–	$	–	$	–
Total SSAP No. 97 8b(ii) Entities		XXX		$	–	$	–	$	–
SSAP No. 97 8b(iii) Entities
Real Estate Alternatives Portfolio 3A, Inc.		91	%	$	22	$	22	$	–
Garnet Assurance Corporation		100			–		–		–
Life Investors Alliance LLC		100			–		–		–
Asia Investment Holding Ltd.		100			–		–		–
AEGON Financial Services Group, Inc.		100			–		–		–
Garnet Assurance Corporation III		100			–		–		–
Intersecurities Insurance Agency, Inc.		100			–		–		–
Transamerica Asset Management, Inc.		77			90		90		–
Transamerica Fund Services, Inc.		44			–		–		–
World Financial Group Insurance Agency, Inc.		100			–		–		–
AEGON Direct Marketing Services, Inc.		73			–		–		–
Total SSAP No. 97 8b(iii) Entities		XXX		$	112	$	112	$	–
SSAP No. 97 8b(iv) Entities
Transamerica Life (Bermuda) Ltd.		94	%	$	1,261	$	1,261	$	–
Total SSAP No. 97 8b(iv) Entities		XXX		$	1,261	$	1,261	$	–
Total SSAP No. 97 8b Entities (except 8bi entities)		XXX		$	1,373	$	1,373	$	–
Aggregate Total		XXX		$	1,373	$	1,373	$	–

88

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The following table shows the NAIC responses for the SCA filings (except 8bi entities):

December 31, 2020
SCA Entity	Type of NAIC Filing*		Date of Filing to the NAIC			NAIC Valuation Amount		NAIC Response Received Y/N	NAIC Disallowed Entities Valuation Method, Submission Required Y/N	Code**
SSAP No. 97 8a Entities
None					$		–
Total SSAP No. 97 8a Entities		—		—	$		–	—	—	—
SSAP No. 97 8b(ii) Entities
None					$		–
Total SSAP No. 97 8b(ii) Entities		—		—	$		–	—	—	—
SSAP No. 97 8b(iii) Entities
AEGON Direct Marketing Services, Inc.		NA			$		–	–	–	I
AEGON Financial Services Group, Inc.		S2		12/21/2020			–	Y	N	I
Garnet Assurance Corporation		NA					–	–	–	I
Garnet Assurance Corporation III		NA					–	–	–	I
Intersecurities Insurance Agency, Inc.		NA					–	–	–	I
Life Investors Alliance LLC		NA					–	–	–	I
Real Estate Alternatives Portfolio 3A, Inc.		NA					21	–	–	I
Transamerica Asset Management, Inc.		S2		12/17/2020			91	Y	N	I
Transamerica Fund Services, Inc.		NA					–	–	–	I
Total SSAP No. 97 8b(iii) Entities		—		–	$		112	—	–	—
SSAP No. 97 8b(iv) Entities
Transamerica Life (Bermuda) Ltd.		S2		2/18/2021	$		941	Y	N	I
Total SSAP No. 97 8b(iv) Entities		—		—	$		941	—	—	—
Total SSAP No. 97 8b Entities (except 8bi entities)		—		—	$		1,053	—	—	—
Aggregate Total		—		—	$		1,053	—	—	—

* S1 – Sub1, S2 – Sub2 or RDF – Resubmission of Disallowed Filing

** I – Immaterial or M – Material

⁽¹⁾ NAIC Valuation Amount is as of the Filing Date to the NAIC

89

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

December 31, 2019

SCA Entity

Type of NAIC Filing*

Date of Filing to the NAIC

NAIC Valuation Amount

NAIC Response Received Y/N

NAIC Disallowed Entities Valuation Method, Submission Required Y/N

Code**

SSAP No. 97 8a Entities

None

$

–

Total SSAP No. 97 8a Entities

—

—

$

–

—

—

—

SSAP No. 97 8b(ii) Entities

None

$

–

Total SSAP No. 97 8b(ii) Entities

—

—

$

–

—

—

—

SSAP No. 97 8b(iii) Entities

Real Estate Alternatives Portfolio 3A, Inc.

S2

10/31/2019

$

35

Y

N

I

Garnet Assurance Corporation

NA

–

–

–

I

Life Investors Alliance LLC

NA

–

–

–

I

Asia Investment Holding Ltd.

NA

–

–

–

I

AEGON Financial Services Group, Inc.

NA

–

–

–

I

Garnet Assurance Corporation III

NA

–

–

–

I

Intersecurities Insurance Agency, Inc.

NA

–

–

–

I

Transamerica Asset Management, Inc.

S2

8/30/2019

67

Y

N

I

Transamerica Fund Services, Inc.

NA

–

–

–

I

World Financial Group Insurance Agency, Inc.

NA

–

–

–

I

AEGON Direct Marketing Services, Inc.

NA

–

–

–

I

Total SSAP No. 97 8b(iii) Entities

—

—

$

102

—

—

—

SSAP No. 97 8b(iv) Entities

Transamerica Life (Bermuda) Ltd.

S2

1/21/2020

$

609

Y

N

I

Total SSAP No. 97 8b(iv) Entities

—

—

$

609

—

—

—

Total SSAP No. 97 8b Entities (except 8bi entities)

—

—

$

711

—

—

—

Aggregate Total

—

—

$

711

—

—

—

* S1 – Sub1, S2 – Sub2 or RDF – Resubmission of Disallowed Filing

** I – Immaterial or M – Material

(1)NAIC Valuation Amount is as of the Filing Date to the NAIC

The Company reports an investment in the following insurance SCAs for which the reported statutory equity reflects a departure from NAIC SAP. Each of the insurance SCAs listed in the table below reflects an admitted asset, equal to the value of the excess of loss reinsurance asset provided by an unaffiliated company, whereas this would not be an admitted asset recognized by SSAP No. 4, Assets and Non Admitted Assets.

LIICA Re II, Inc.	Excess of loss reinsurance asset
Transamerica Pacific Reinsurance, Inc. (TPRe)	Excess of loss reinsurance asset

90

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The Company has two Limited Purpose Subsidiaries (LPS) with prescribed practices whereby under Iowa Administrative Code 191-99.11(3), the LPS are entitled to admit the following assets that would not be admissible under the NAIC SAP:

TLIC Oakbrook Reinsurance, Inc. (TORI)	Credit linked note
TLIC Watertree Reinsurance, Inc. (TWRI)	Excess of loss reinsurance asset

The monetary effect on net income and surplus as a result of using an accounting practice that differed from NAIC SAP, the amount of the investment in the insurance SCA per reported statutory equity, and amount of the investment if the insurance SCA has completed statutory financial statements in accordance with the NAIC SAP. The SCAs are valued in the Company’s financial statements at zero in accordance with SSAP No. 97.

	Monetary Effect on NAIC SAP					Amount of Investment
SCA Entity (Investments in Insurance SCA Entities)	Net Income Increase (Decrease)		Surplus Increase (Decrease)			Per Reported Statutory Equity		If the Insurance SCA Had Completed Statutory Financial Statements*
LIICA Re II**	$	–	$	(2,216	)	$	–	$	–
Transamerica Pacific Reinsurance, Inc.**		–		(1,177	)		–		–
TLIC Oakbrook Reinsurance, Inc.		–		(3,493	)		1,292		–
TLIC Watertree Reinsurance, Inc.		–		(908	)		519		–

* Per AP&P Manual (without permitted or prescribed practices)

** The SCA is valued at zero in the Company’s financial statements

Had the above SCA entities not been permitted to recognize the excess of loss reinsurance assets or the credit linked note as admitted assets in the financial statements, the risk-based capital would have been below the mandatory control level which would have triggered a regulatory event.

Information regarding the Company’s affiliated reinsurance transactions is available in Note 8. Reinsurance.

Information regarding the Company’s affiliated guarantees is available in Note 15. Commitments and Contingencies.

91

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

14. Managing General Agents

The Company utilizes managing general agents (MGA) and third-party administrators (TPA) in its operation. Information regarding these entities for the years ended December 31, 2020, 2019 and 2018, respectively, is:

									Total Direct Premiums Written /
									Produced By
Name and Address of Managing General Agent or Third-Party Administrator	FEIN		Exclusive Contract		Types of Business Written		Types of Authority Granted		2020		December 31, 2019		2018
The Vanguard Group, Inc. 100 Vanguard Blvd. Malvern, PA 19355		23-1945930		No		Deferred and income annuities		C, B, P, U	$	247	$	631	$	784
Total									$	247	$	631	$	784

C - Claims Payment

B - Binding Authority

P - Premium Collection

U - Underwriting

The premiums written in 2020, which represents less than 5% of surplus, declined due to the underlying business being closed to new sales in December 2019.

15. Commitments and Contingencies

At December 31, 2020 and 2019, the Company has mortgage loan commitments of $289 and $383, respectively.

The Company has contingent commitments of $893 and $1,190 as of December 31, 2020 and 2019, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $30 and $93, respectively.

The Company leases office buildings and equipment under various non-cancelable operating lease agreements. Rental expense for the years 2020 and 2019 was $20 and $19, respectively.

Private placement commitments outstanding as of December 31, 2020 and 2019 were $115 and $155, respectively.

During 2019, the Company entered into an agreement with Aegon USA Realty Advisors, LLC to commit to purchase certain tax credit investments up to a maximum of $100,000. Under the terms of the agreement, the Company provides certain commitments to purchase tax credit investments that are part of tax credit funds in the event certain conditions are met. The Company did not acquire any tax credit investments during 2020 under this agreement. As of December 31, 2020, the commit to purchase amount is $23.

The Company sold $0 and $101 of “to-be-announced” (TBA) securities as of December 31, 2020 and 2019, respectively. The December 31, 2019 receivable related to these TBAs was reclassed accordingly.

92

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The Company may pledge cash as collateral for derivative transactions. When cash is pledged as collateral, it is derecognized and a receivable is recorded to reflect the eventual return of that cash by the counterparty. The amount of cash collateral pledged by the Company as of December 31, 2020 and 2019, respectively, was $295 and $81.

At December 31, 2020 and 2019, securities in the amount of $61 and $47, respectively, were posted to the Company as collateral from derivative counterparties. The securities were not included on the Company’s balance sheets as the Company does not have the ability to sell or repledge the collateral.

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 13-18 years. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial statements as a decrease in net investment income. No payments are required as of December 31, 2020. The current assessment of risk of making payments under these guarantees is remote.

As of January 20, 2020, the Company has been discharged of its guarantee to the Monetary Authority of Singapore (MAS) to provide adequate funds to make up for any liquidity shortfall in its wholly-owned foreign life insurance subsidiary, TLB (Singapore Branch), and ensure that TLB was able to continue to meet, pay and settle all present and future obligations. The Company was not required to provide funds prior to the discharge of the guarantee on January 20, 2020 because TLB maintained adequate liquidity to settle its obligations.

The Company has guaranteed to the Hong Kong Insurance Authority that it will provide the financial support to TLB for maintaining TLB’s solvency at all times so as to enable TLB to promptly meet its obligations and liabilities. If at any time the value of TLB’s assets do not exceed its liabilities by the prevailing acceptable level of solvency, the Company will increase the paid up share capital of TLB or provide financial assistance to TLB to maintain the acceptable level of solvency. An acceptable level of solvency is net assets at one hundred and fifty percent of the required margin of solvency as stipulated under the Insurance Companies (Margin of Solvency) Regulation. As of December 31, 2020, there is no payment or performance risk because TLB is able to meet its obligations and has assets in excess of its liabilities by the prevailing level of solvency as of this date.

The Company has guaranteed that TLB will (1) maintain tangible net worth of at least equal to the greater of 165% of Standard & Poor’s Risk-Based Capital and the minimum required by regulatory authorities in all jurisdictions in which TLB operates, (2) have, at all times, sufficient cash to pay all contractual obligations in a timely manner and (3) have a maximum operating leverage ratio of 20 times. The Company can terminate this agreement upon thirty days written

93

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

notice, but not until TLB attains a rating from Standard & Poor’s the same as without the support from this agreement, or the entire book of TLB business is transferred provided that it is transferred to an entity with a rating from S&P that is the same as or better than the Company’s then current rating or AA, whichever is lower. As of December 31, 2020, there is no payment or performance risk because TLB has adequate tangible net worth, sufficient cash to meet its obligations and an operating leverage ratio not in excess of 20 times as of this date.

The Company is not able to estimate the financial statement impact or the maximum potential amount of future payments it could be required to make under these two guarantees as they are considered to be unlimited under the provisions of SSAP No. 5R.

The Company has provided a guarantee to TLB’s (Singapore Branch) policyholders. If TLB fails to pay a valid claim solely by reason of it becoming insolvent as defined by Bermuda law, then the Company shall pay directly to the policy owner or named beneficiary the amount of the valid claim. At December 31, 2020 and 2019, TLB holds related statutory-basis policy and claim reserves of $2,315 and $2,335, respectively, which would be the maximum potential amount of future payments the Company could be required to make under this guarantee. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial statements as an increase to incurred claims. As of December 31, 2020, there is no payment or performance risk because TLB is not insolvent as of this date.

The Company has provided a guarantee to TLB’s (Hong Kong Branch) policyholders. If TLB fails to pay a valid claim solely by reason of it becoming insolvent as defined by Bermuda law, then the Company shall pay directly to the policy owner or named beneficiary the amount of the valid claim. At December 31, 2020 and 2019, TLB policies covered by this guarantee would have resulted in US statutory policy and claim reserves of $3,533 and $3,585, respectively, which would represent a fair measure of the maximum potential amount of future payments the Company under this guarantee based on the US statutory reserve requirements. TLB is a subsidiary of the Company and TLB has invested assets supporting these policies which mitigates this risk. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial statements as an increase to incurred claims. As of December 31, 2020, there is no payment or performance risk because TLB is not insolvent as of this date.

The Company did not recognize a liability for any of the TLB guarantees due to the adoption of SSAP No. 5R, as a liability is not required for guarantees to or on behalf of a wholly-owned subsidiary. Management monitors TLB’s financial condition, and there are no indications that TLB will become insolvent. As such, management feels the risk of payment under these guarantees on behalf of TLB is remote.

The Company is a party to a fee agreement with TLB whereby the Company continues to provide the guarantees with respect to TLB described in the paragraphs above. The Company received $1 and $1 under this agreement in 2020 and 2019, respectively.

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

94

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

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 direct statutory reserve established at December 31, 2020 and 2019 for the total payout block is $5,124 and $5,279, respectively. As this reserve is already recorded on the balance sheets of the Company, there was no additional liability recorded due to the adoption of SSAP No. 5R.

The following table provides an aggregate compilation of guarantee obligations as of December 31, 2020 and 2019:

	December 31
	2020		2019
Aggregate maximum potential of future payments of all guarantees (undiscounted)	$	5,848	$	5,920
Current liability recognized in financial statements:
Noncontingent liabilities		–		–
Contingent liabilities		–		–
Ultimate financial statement impact if action required:
Incurred claims		5,848		5,920
Other		–		–
Total impact if action required	$	5,848	$	5,920

The Company is a member of the FHLB of Des Moines. Through its membership, the Company has conducted business activity (borrowings) with the FHLB. It is part of the Company’s strategy to utilize these funds for asset and liability management and spread lending purposes. The Company has determined the actual/estimated long-term maximum borrowing capacity as $5,793. The Company calculated this amount in accordance with the terms and conditions of agreement with FHLB of Des Moines.

At December 31, 2020 and 2019, the Company purchased/owned the following FHLB stock as part of the agreement:

	Year Ended December 31
	2020		2019
Membership Stock:
Class A	$	–	$	–
Class B		10		20
Activity Stock		101		80
Excess Stock		–		–
Total	$	111	$	100

95

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

At December 31, 2020 and 2019, Membership Stock (Class A and B) Eligible for Redemption and the anticipated timeframe for redemption was as follows:

	Less Than   6 Months		6 Months to   Less Than 1 Year		1 to Less   Than 3 Years		3 to 5   Years
December 31, 2020
Membership Stock
Class A	$	–	$	–	$	–	$	–
Class B		–		–		–		10
Total	$	–	$	–	$	–	$	10
	Less Than 6 Months		6 Months to Less Than 1 Year		1 to Less Than 3 Years		3 to 5 Years
December 31, 2019
Membership Stock
Class A	$	–	$	–	$	–	$	–
Class B		–		–		–		20
Total	$	–	$	–	$	–	$	20

At December 31, 2020 and 2019, the amount of collateral pledged and the maximum amount pledged to the FHLB was as follows:

	Fair Value		Carry Value
December 31, 2020
Total Collateral Pledged	$	4,215	$	3,818
Maximum Collateral Pledged		4,258		3,860
	Fair Value		Carry Value
December 31, 2019
Total Collateral Pledged	$	3,263	$	3,089
Maximum Collateral Pledged		5,818		5,813

96

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

At December 31, 2020 and 2019, the borrowings from the FHLB were as follows:

	December 31, 2020				December 31, 2019
			Funding				Funding
			Agreements				Agreements
	General		Reserves		General		Reserves
	Account		Established		Account		Established
Debt1	$	2,515	$	–	$	1,995	$	–
Funding agreements2		–		–		–		–
Other		–		–		–		–
Total	$	2,515	$	–	$	1,995	$	–

¹ The maximum amount of borrowing during 2020 was $2,515

² The maximum amount of borrowing during 2020 was $0

As of December 31, 2020, the weighted average interest rate on FHLB advances was 0.443% with a weighted average term of 2.3 years. As of December 31, 2019, the weighted average interest rate on FHLB advances was 2.146% with a weighted average term of 1.3 years.

At December 31, 2020, the borrowings from the FHLB were not subject to prepayment penalties.

The Company has issued synthetic GIC contracts to benefit plan sponsors totaling $56,004 and $52,230 as of December 31, 2020 and 2019, respectively. A synthetic GIC is an off-balance sheet fee-based product sold primarily to tax qualified plans, where the plan sponsor retains ownership and control of the related plan assets and the Company provides book value benefit responsiveness to qualified participant withdrawals, in the event withdrawals requested exceeds plan cash flows. In certain contracts, the Company agrees to make advances to meet benefit withdrawal needs and earns a market interest rate on these advances. A periodically adjusted contract-crediting rate is a means by which investment and benefit responsiveness experience is passed through to participants. In return for the book value benefit responsiveness guarantee, the Company receives a premium that varies based on such elements as benefit responsiveness 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 ensuring the appropriate credit quality and cash flow. Funding requirements to date have been minimal and management does not anticipate any future material funding requirements to have a material impact on the reported financial results. In compliance with statutory guidelines, no reserves were recorded at December 31, 2020.

The Company is party to legal proceedings involving a variety of issues incidental to its business, including class action lawsuits. Lawsuits may be brought in 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 their complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes includes substantial demands for compensatory and punitive damages, and injunctive relief, damages arising from such demands are typically not to be material to the Company’s financial position.

97

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The Company has been named in class actions, as well as individual litigation, relating to increases in monthly deduction rates (MDR) on universal life products. The Company has settled two such class actions, one in January 2019 and one in April 2020. In connection with the first lawsuit, the Company continues to defend against a number of lawsuits initiated by opt out class members. The Company holds provisions totaling approximately $170 for these lawsuits as of December 31, 2020.

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 sheets. 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 $9 and $10 and an offsetting premium tax benefit $7 and $8 at December 31, 2020 and 2019, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $3, $3 and $1, for the years ended December 31, 2020, 2019 and 2018, respectively.

16. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

The Company is party to municipal repurchase agreements which were established via bilateral trades and accounted for as secured borrowings. For municipal repurchase agreements, the Company rigorously manages asset/liability risks via an integrated risk management framework. The Company’s liquidity position is monitored constantly, and factors heavily in the management of the asset portfolio. Projections comparing liquidity needs to available resources in both adverse and routine scenarios are refreshed monthly. The results of these projections on time horizons ranging from 16 months to 24 months are the basis for the near-term liquidity planning. This liquidity model excludes new business (non applicable for the spread business), renewals and other sources of cash and assumes all liabilities are paid off on the earliest dates required. Interest rate risk is carefully managed, in part through rigorously defined and monitored derivatives programs.

98

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

The following tables provide information on the securities sold under the municipal repurchase agreements for four quarters of 2020 and 2019:

December 31, 2020
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Maximum Amount
BACV		XXX		XXX		XXX	$	200
Fair Value	$	167	$	211	$	232	$	232
Ending Balance
BACV		XXX		XXX		XXX	$	200
Fair Value	$	167	$	211	$	232	$	232
December 31, 2019
	First     Quarter		Second     Quarter		Third     Quarter		Fourth     Quarter
Maximum Amount
BACV		XXX		XXX		XXX	$	113
Fair Value	$	219	$	207	$	232	$	126
Ending Balance
BACV		XXX		XXX		XXX	$	113
Fair Value	$	171	$	207	$	232	$	126

			2020						2019
	NAIC 1		NAIC 2		Total		NAIC 1		NAIC 2		Total
Bonds - BACV	$	160	$	40	$	200	$	112	$	1	$	113
Bonds - FV		190		42		232		125		1		126

These securities have maturity dates that range from 2021 to 2097.

The following table provides information on the cash collateral received and liability to return collateral under the municipal repurchase agreements for four quarters of 2020 and 2019:

December 31, 2020
	First     Quarter		Second     Quarter		Third     Quarter		Fourth     Quarter
Maximum Amount
Cash	$	131	$	164	$	182	$	101
Ending Balance (1)
Cash	$	131	$	162	$	79	$	100

⁽¹⁾ The remaining collateral held was greater than 90 days from contractual maturity.

99

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

December 31, 2019
	First     Quarter		Second     Quarter		Third     Quarter		Fourth     Quarter
Maximum Amount
Cash	$	126	$	157	$	174	$	100
Ending Balance (1)
Cash	$	126	$	154	$	78	$	98

The Company enters into dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received. At December 31, 2020 and 2019, the Company had dollar repurchase agreements outstanding in the amount of $969 and $706, respectively, which is included in borrowed money on the balance sheets. Those amounts include accrued interest of $2 and $2, at December 31, 2020 and 2019, respectively. At December 31, 2020, securities with a book value of $958 and a fair value of $972 were subject to dollar repurchase agreements. These securities have maturity dates that range from April 1, 2035 to January 1, 2051. At December 31, 2019, securities with a book value of $805 and a fair value of $807 were subject to dollar repurchase agreements. The Company does not have the legal right to recall or substitute the underlying assets prior to the transaction’s scheduled termination. Upon scheduled termination, the counterparty is obligated to return substantially similar assets.

The contractual maturities of the dollar repurchase agreement positions are as follows:

	Fair Value
	2020		2019
Open	$	967	$	704
Securities received		–		–
Total collateral received	$	967	$	704

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 2020 and reacquired within 30 days of the sale date are:

	Number of Transactions	Book Value of Securities Sold		Cost of Securities Repurchased		Gains (Losses)
Preferred stocks:
NAIC 4	1	$	–	$	–	$	–
Common stocks	3	$	–	$	–	$	–

100

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

17. Reconciliation to Statutory Statement

The following is a reconciliation of amounts previously reported to the Iowa Department of Financial Regulation in the 2020 Annual Statement, to those reported in the accompanying statutory-basis financial statements:

	December 31
	2020			2019
Balance Sheets
Total assets as reported in the Company’s Annual Statement	$	200,268		$	185,304
Decrease in other assets		–			(1,217	)
Increase in net deferred income tax asset		–			9
Total assets as reported in the accompanying audited statutory basis balance sheet	$	200,268		$	184,096
Total liabilities as reported in the Company’s Annual Statement	$	192,158		$	175,914
Decrease in aggregate reserves for policies and contracts		–			(311	)
Increase in policy and contract claim reserves		–			8
Decrease in funds held under reinsurance treaties		–			(742	)
Decrease in other liabilities		–			(124	)
Total liabilities as reported in the accompanying audited statutory basis balance sheet	$	192,158		$	174,745
Total capital and surplus as reported in the Company’s Annual Statement	$	8,110		$	9,390
Decrease in net income		–			(234	)
Increase in change in net deferred income tax asset		–			9
Increase in change in surplus as a result of reinsurance		–			186
Total capital and surplus as reported in the accompanying audited statutory basis balance sheet	$	8,110		$	9,351
Statements of Operations
Statutory net income as reported in the Company’s Annual Statement	$	1,291		$	3,757
Increase in commissions and expense allowances on reinsurance ceded		(69	)		–
Increase in reserve adjustment on reinsurance ceded		193			243
Decrease in fee revenue and other income		3			(104	)
Increase in commissions		69			–
Increase in general insurance expenses and other		(196	)		(140	)
Decrease in premiums and other considerations		–			(653	)
Decrease in surrender benefits		–			653
Increase in change in aggregate reserves		–			(41	)
Decrease in federal income tax (benefit) expense		–			2
Increase in death benefits		–			(8	)
Total net income as reported in the accompanying audited statutory basis statement of operations	$	1,291		$	3,709

The reconciling differences to the Annual Statement for current and prior year is primarily driven by elimination of affiliated activity for the merged entities in 2020. For additional detail on the impacts of the merger, please refer to Note 1. In addition, prior year reconciling differences also relate to adjustments for actuarial modeling and misclassifications within the Statements of Operations related to accounting for retirement plans.

101

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Millions, Except per Share amounts)

18. Subsequent Events

The financial statements are adjusted to reflect events that occurred between the balance sheets date and the date when the financial statements are available to be issued, provided they give evidence of conditions that existed at the balance sheets date (Type I). Events that are indicative of conditions that arose after the balance sheets 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, 2020 through April 14, 2021.

102

Transamerica Life Insurance Company

Appendix A – Listing of Affiliated Companies

Transamerica Corporation EIN: 42-1484983 AFFILIATIONS SCHEDULE YEAR ENDED DECEMBER 31, 2020
Entity Name	FEIN
Transamerica Corporation		42-1484983
AEGON Asset Management Services Inc		39-1884868
AEGON Direct Marketing Services Inc		42-1470697
AEGON Financial Services Group Inc		41-1479568
AEGON Institutional Markets Inc		61-1085329
AEGON Management Company		35-1113520
AEGON USA Real Estate Services Inc		61-1098396
AEGON USA Realty Advisors of CA		20-5023693
AUSA Properties Inc		27-1275705
Commonwealth General Corporation		51-0108922
Creditor Resources Inc		42-1079584
CRI Solutions Inc		52-1363611
Financial Planning Services Inc		23-2130174
Garnet Assurance Corporation		11-3674132
Garnet Assurance Corporation II		14-1893533
Garnet Assurance Corporation III		01-0947856
Intersecurities Ins Agency		42-1517005
Ironwood Re Corp		47-1703149
LIICA RE II		20-5927773
Massachusetts Fidelity Trust		42-0947998
MLIC RE I Inc		01-0930908
Money Services Inc		42-1079580
Monumental General Administrators Inc		52-1243288
Pearl Holdings Inc I		20-1063558
Pearl Holdings Inc II		20-1063571
Pine Falls Re Inc		26-1552330
Real Estate Alternatives Portfolio 3A Inc		20-1627078
River Ridge Insurance Company		20-0877184
Short Hills Management		42-1338496
Stonebridge Benefit Services Inc		75-2548428
TCF Asset Management Corp		84-0642550
TCFC Air Holdings Inc		32-0092333
TCFC Asset Holdings Inc		32-0092334

103

Transamerica Corporation EIN: 42-1484983 AFFILIATIONS SCHEDULE YEAR ENDED DECEMBER 31, 2020
Entity Name	FEIN
TLIC Oakbrook Reinsurance Inc.		47-1026613
TLIC Watertree Reinsurance, Inc.		81-3715574
Transamerica Accounts Holding Corp		36-4162154
Transamerica Affinity Services Inc		42-1523438
Transamerica Affordable Housing Inc		94-3252196
Transamerica Asset Management		59-3403585
Transamerica Capital Inc		95-3141953
Transamerica Casualty Insurance Company		31-4423946
Transamerica Commercial Finance Corp I		94-3054228
Transamerica Corporation (OREGON)		98-6021219
Transamerica Finance Corporation		95-1077235
Transamerica Financial Advisors		59-2476008
Transamerica Financial Life Insurance Company		36-6071399
Transamerica Fund Services Inc		59-3403587
Transamerica Home Loan		95-4390993
Transamerica International Re (Bermuda) Ltd		98-0199561
Transamerica Investors Securities Corp		13-3696753
Transamerica Life Insurance Company		39-0989781
Transamerica Pacific Insurance Co Ltd		94-3304740
Transamerica Pacific Re, Inc.		85-1028131
Transamerica Premier Life Insurance Company		52-0419790
Transamerica Resources Inc		52-1525601
Transamerica Stable Value Solutions Inc		27-0648897
Transamerica Vendor Financial Services Corporation		36-4134790
United Financial Services Inc		52-1263786
World Fin Group Ins Agency of Massachusetts Inc		04-3182849
World Financial Group Inc		42-1518386
World Financial Group Ins Agency of Hawaii Inc		99-0277127
World Financial Group Insurance Agency of WY Inc		42-1519076
World Financial Group Insurance Agency		95-3809372
Zahorik Company Inc		95-2775959
Zero Beta Fund LLC		26-1298094

104

Statutory-Basis Financial

Statement Schedules

105

Transamerica Life Insurance Company

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Millions)

December 31, 2020

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	$	7,039	$	9,657	$	7,314
States, municipalities and political subdivisions		2,863		3,123		2,863
Foreign governments		485		544		485
Hybrid securities		576		658		576
All other corporate bonds		39,241		46,111		39,206
Preferred stocks		109		109		105
Total fixed maturities		50,313		60,202		50,549
Equity securities
Common stocks:
Industrial, miscellaneous and all other		136		180		180
Total equity securities		136		180		180
Mortgage loans on real estate		9,015				9,015
Real estate		56				56
Policy loans		2,037				2,037
Other long-term investments		1,496				1,496
Receivable for securities		3				3
Receivable for derivative cash collateral posted to counterparty		295				295
Securities lending		2,115				2,115
Cash, cash equivalents and short-term investments		1,683				1,683
Total investments	$	67,149			$	67,429

(1) Equity securities are reported at original cost. Fixed maturities are reported at original cost reduced by repayments and adjusted for amortization of premiums and accrual of discounts.

(2) United States government and corporate bonds of $48 are held at fair value rather than amortized cost due to having an NAIC 6 rating. Two preferred stock securities are held at fair value of $6 due to having an NAIC 4 and 6 ratings.

106

Transamerica Life Insurance Company

Supplementary Insurance Information

(Dollars in Millions)

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, 2020
Individual life	$	24,275	$	–	$	685	$	2,264	$	1,460	$	5,342	$	1,388
Individual health		5,760		112		401		750		423		908		405
Group life and health		2,468		23		138		841		159		496		347
Annuity		18,328		–		33		12,868		1,319		19,336		(3,775	)
	$	50,831	$	135	$	1,257	$	16,723	$	3,361	$	26,082	$	(1,635	)
Year ended December 31, 2019
Individual life	$	22,141	$	–	$	472	$	2,884	$	1,267	$	2,658	$	1,255
Individual health		5,567		185		299		750		357		1,034		262
Group life and health		2,463		31		138		866		155		471		305
Annuity		15,478		–		34		11,208		986		16,001		(4,217	)
	$	45,649	$	216	$	943	$	15,708	$	2,765	$	20,164	$	(2,395	)
Year ended December 31, 2018
Individual life	$	22,542	$	–	$	488	$	1,885	$	1,233	$	3,089	$	1,607
Individual health		5,439		180		270		729		380		915		217
Group life and health		2,462		38		167		1,094		151		604		433
Annuity		15,711		–		38		10,889		745		17,406		(3,462	)
Other		–		–		–		–		235		–		–
	$	46,154	$	218	$	963	$	14,597	$	2,744	$	22,014	$	(1,205	)

*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.

107

Transamerica Life Insurance Company

Reinsurance

(Dollars in Millions)

SCHEDULE IV

	Gross Amount		Ceded to Other Companies		Assumed From Other Companies		Net Amount		Percentage of  Amount  Assumed to Net
Year ended December 31, 2020
Life insurance in force	$	739,067	$	736,338	$	397,134	$	399,863	99%
Premiums:
Individual life	$	4,173	$	3,106	$	1,197	$	2,264	53%
Individual health		797		61		14		750	2%
Group life and health		948		133		26		841	3%
Annuity		13,273		418		13		12,868	0%
	$	19,191	$	3,718	$	1,250	$	16,723	7%
Year ended December 31, 2019
Life insurance in force	$	726,805	$	809,789	$	421,752	$	338,768	124%
Premiums:
Individual life	$	4,575	$	2,988	$	1,297	$	2,884	45%
Individual health		797		66		19		750	3%
Group life and health		968		137		35		866	4%
Annuity		11,582		517		143		11,208	1%
	$	17,922	$	3,708	$	1,494	$	15,708	10%
Year ended December 31, 2018
Life insurance in force	$	744,474	$	871,308	$	452,075	$	325,241	139%
Premiums:
Individual life	$	4,393	$	3,859	$	1,351	$	1,885	72%
Individual health		773		69		25		729	3%
Group life and health		1,207		187		74		1,094	7%
Annuity		11,055		296		130		10,889	1%
	$	17,428	$	4,411	$	1,580	$	14,597	11%

108

FINANCIAL STATEMENTS

Transamerica Life Insurance Company

WRL Series Life Account

Years Ended December 31, 2020 and 2019

Transamerica Life Insurance Company

WRL Series Life Account

Financial Statements

Years Ended December 31, 2020 and 2019

Contents

Report of Independent Registered Public Accounting Firm	1
Financial Statements
Statements of Assets and Liabilities	2
Statements of Operations and Changes in Net Assets	4
Notes to Financial Statements	18

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Transamerica Life Insurance Company and the Contract Owners of WRL Series Life Account

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the subaccounts of WRL Series Life Account indicated in the table below as of December 31, 2020, and the related statements of operations and changes in net assets for each of the two years in the period ended December 31, 2020, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts of WRL Series Life Account as of December 31, 2020, and the results of each of their operations and the changes in each of their net assets for each of the two years in the period ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.

AB Balanced Wealth Strategy Class B Shares	TA Aegon High Yield Bond Initial Class
Access VP High Yield	TA Aegon Sustainable Equity Income Initial Class
Fidelity® VIP Contrafund® Service Class 2	TA Aegon U.S. Government Securities Initial Class
Fidelity® VIP Equity-Income Service Class 2	TA BlackRock Global Real Estate Securities Initial Class
Fidelity® VIP Growth Opportunities Service Class 2	TA BlackRock Government Money Market Initial Class
Fidelity® VIP Index 500 Service Class 2	TA BlackRock iShares Edge 40 Initial Class
Franklin Allocation Class 4 Shares	TA BlackRock Tactical Allocation Initial Class
ProFund VP Asia 30	TA International Growth Initial Class
ProFund VP Basic Materials	TA Janus Balanced Initial Class
ProFund VP Bull	TA Janus Mid-Cap Growth Initial Class
ProFund VP Consumer Services	TA JPMorgan Asset Allocation - Conservative Initial Class
ProFund VP Emerging Markets	TA JPMorgan Asset Allocation - Growth Initial Class
ProFund VP Europe 30	TA JPMorgan Asset Allocation - Moderate Initial Class
ProFund VP Falling U.S. Dollar	TA JPMorgan Asset Allocation - Moderate Growth Initial Class
ProFund VP Financials	TA JPMorgan Core Bond Initial Class
ProFund VP Government Money Market	TA JPMorgan Enhanced Index Initial Class
ProFund VP International	TA JPMorgan International Moderate Growth Initial Class
ProFund VP Japan	TA JPMorgan Mid Cap Value Initial Class
ProFund VP Mid-Cap	TA JPMorgan Tactical Allocation Initial Class
ProFund VP NASDAQ-100	TA Managed Risk - Balanced ETF Initial Class
ProFund VP Oil & Gas	TA Managed Risk - Growth ETF Initial Class
ProFund VP Pharmaceuticals	TA Morgan Stanley Capital Growth Initial Class
ProFund VP Precious Metals	TA Morgan Stanley Global Allocation Initial Class
ProFund VP Short Emerging Markets	TA Multi-Managed Balanced Initial Class
ProFund VP Short International	TA PIMCO Tactical - Balanced Initial Class
ProFund VP Short NASDAQ-100	TA PIMCO Tactical - Conservative Initial Class
ProFund VP Short Small-Cap	TA PIMCO Tactical - Growth Initial Class
ProFund VP Small-Cap	TA PIMCO Total Return Initial Class
ProFund VP Small-Cap Value	TA QS Investors Active Asset Allocation - Conservative Initial Class
ProFund VP Telecommunications	TA QS Investors Active Asset Allocation - Moderate Initial Class
ProFund VP U.S. Government Plus	TA QS Investors Active Asset Allocation - Moderate Growth Initial Class
ProFund VP UltraNASDAQ-100	TA Small/Mid Cap Value Initial Class
ProFund VP UltraSmall-Cap	TA T. Rowe Price Small Cap Initial Class
ProFund VP Utilities	TA WMC US Growth Initial Class

Basis for Opinions

These financial statements are the responsibility of the Transamerica Life Insurance Company’s management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts of WRL Series Life Account based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the subaccounts of WRL Series Life Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2020 by correspondence with the investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

April 21, 2021

We have served as the auditor of one or more of the subaccounts of WRL Series Life Account since 2014.

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Assets and Liabilities

December 31, 2020

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
AB Balanced Wealth Strategy Class B Shares		252,746.882	$	2,610,305	$	2,646,260	$	(4	)	$	2,646,256		113,729	$	18.774933	$	27.973056
Access VP High Yield		118,188.032		3,186,259		3,202,896		1			3,202,897		175,745		15.808925		22.893913
Fidelity® VIP Contrafund® Service Class 2		648,236.208		21,298,878		30,292,078		(64	)		30,292,014		792,862		32.183400		44.523208
Fidelity® VIP Equity-Income Service Class 2		465,031.898		9,843,714		10,779,439		2			10,779,441		403,834		23.722441		29.694346
Fidelity® VIP Growth Opportunities Service Class 2		332,514.179		14,379,293		25,301,004		14			25,301,018		440,051		52.408911		65.113919
Fidelity® VIP Index 500 Service Class 2		185,898.601		53,490,654		68,174,594		(33	)		68,174,561		1,897,267		30.882313		42.199084
Franklin Allocation Class 4 Shares		460,877.920		2,849,383		2,590,134		(1	)		2,590,133		111,828		18.750120		29.294634
ProFund VP Asia 30		74,921.043		4,665,206		5,684,260		(13	)		5,684,247		384,501		14.016696		15.726857
ProFund VP Basic Materials		42,042.908		2,619,767		2,916,096		27			2,916,123		202,508		13.009431		15.433164
ProFund VP Bull		81,917.144		4,148,767		4,864,240		(6	)		4,864,234		175,403		25.258411		28.088433
ProFund VP Consumer Services		84,328.113		6,392,770		6,421,586		(9	)		6,421,577		156,855		38.610268		47.554837
ProFund VP Emerging Markets		207,065.876		5,687,824		7,586,894		(6	)		7,586,888		646,787		10.147486		12.823011
ProFund VP Europe 30		35,798.107		778,116		743,169		4			743,173		74,499		8.829599		11.355646
ProFund VP Falling U.S. Dollar		31,095.958		562,963		571,233		-			571,233		85,122		5.464156		6.972546
ProFund VP Financials		87,218.986		3,527,082		3,629,182		73			3,629,255		203,241		15.002746		23.019217
ProFund VP Government Money Market		18,415,896.250		18,415,896		18,415,896		(24	)		18,415,872		1,896,770		8.435476		10.686506
ProFund VP International		131,489.638		2,145,992		2,698,167		66			2,698,233		230,505		9.682480		12.608515
ProFund VP Japan		12,456.370		620,629		792,848		(71	)		792,777		48,718		13.715454		22.403887
ProFund VP Mid-Cap		272,547.119		5,051,786		4,946,730		106			4,946,836		222,065		21.450255		25.531849
ProFund VP NASDAQ-100		439,234.648		25,219,672		31,067,067		8			31,067,075		544,387		48.557684		66.837303
ProFund VP Oil & Gas		268,108.678		5,074,167		5,035,081		(3	)		5,035,078		1,024,721		4.065396		5.294161
ProFund VP Pharmaceuticals		164,041.840		5,592,767		6,322,173		1			6,322,174		247,778		24.619497		27.807506
ProFund VP Precious Metals		347,965.620		9,060,061		10,748,658		(40	)		10,748,618		1,925,848		5.396102		6.054860
ProFund VP Short Emerging Markets		10,174.007		376,379		236,037		-			236,037		93,554		1.628502		3.567298
ProFund VP Short International		12,189.327		487,156		353,856		(2	)		353,854		116,781		2.237195		3.797053
ProFund VP Short NASDAQ-100		155,855.773		3,594,012		2,839,692		(21	)		2,839,671		3,126,218		0.492703		0.990378
ProFund VP Short Small-Cap		19,872.927		706,924		548,692		(75	)		548,617		500,342		0.806082		1.857343
ProFund VP Small-Cap		112,507.738		3,923,852		4,480,058		(6	)		4,480,052		193,508		22.250425		24.631672
ProFund VP Small-Cap Value		79,976.666		3,267,804		3,392,610		59			3,392,669		160,330		20.653373		23.898228
ProFund VP Telecommunications		29,989.561		900,493		967,163		(2	)		967,161		65,367		13.874011		16.033887
ProFund VP U.S. Government Plus		250,786.638		8,657,751		7,661,532		6			7,661,538		340,584		20.492944		24.916878
ProFund VP UltraNASDAQ-100		695,821.629		48,966,172		64,620,955		(7,271	)		64,613,684		473,658		126.447097		140.926868
ProFund VP UltraSmall-Cap		359,195.744		5,535,251		8,336,933		17			8,336,950		255,139		29.549627		35.745371
ProFund VP Utilities		127,936.842		5,641,823		4,781,000		(9	)		4,780,991		227,355		17.403253		23.433489
TA Aegon High Yield Bond Initial Class		1,965,515.641		14,794,358		15,055,850		(29	)		15,055,821		674,049		17.373462		27.746438
TA Aegon Sustainable Equity Income Initial Class		3,262,932.311		66,168,504		57,427,609		(53	)		57,427,556		1,982,242		17.284837		45.087650
TA Aegon U.S. Government Securities Initial Class		987,555.971		11,430,820		11,544,529		19			11,544,548		755,102		13.210248		17.361987
TA BlackRock Global Real Estate Securities Initial Class		3,441,570.928		40,537,710		36,790,393		49			36,790,442		1,544,313		14.912429		41.874412
TA BlackRock Government Money Market Initial Class		29,986,215.200		29,986,215		29,986,215		(147	)		29,986,068		2,331,862		8.741119		19.949897
TA BlackRock iShares Edge 40 Initial Class		275,229.859		2,635,880		2,746,794		(21	)		2,746,773		146,727		13.760634		22.692547
TA BlackRock Tactical Allocation Initial Class		3,106,807.536		28,361,220		27,557,383		(17	)		27,557,366		1,527,504		16.646262		19.041066
TA International Growth Initial Class		4,107,939.489		34,201,218		40,422,125		(131	)		40,421,994		1,988,790		17.325991		25.736468
TA Janus Balanced Initial Class		766,849.168		12,310,197		14,171,373		(7	)		14,171,366		671,553		20.127153		23.886708

See accompanying notes. 2

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Assets and Liabilities

December 31, 2020

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA Janus Mid-Cap Growth Initial Class		10,248,429.343	$	319,907,433	$	443,552,022	$	11		$	443,552,033		8,151,056	$	25.225979	$	133.174086
TA JPMorgan Asset Allocation - Conservative Initial Class		2,265,000.997		23,823,778		25,594,511		(75	)		25,594,436		1,279,451		16.309910		23.746639
TA JPMorgan Asset Allocation - Growth Initial Class		25,812,964.792		310,578,182		366,285,970		(75	)		366,285,895		14,018,912		21.766585		33.968939
TA JPMorgan Asset Allocation - Moderate Initial Class		6,058,413.737		71,658,758		77,729,448		(146	)		77,729,302		3,739,893		17.769820		26.576238
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		24,342,557.461		299,234,393		323,756,014		(264	)		323,755,750		14,530,939		19.141655		29.245375
TA JPMorgan Core Bond Initial Class		2,699,871.361		35,310,498		36,853,244		(83	)		36,853,161		1,513,024		13.796598		54.266836
TA JPMorgan Enhanced Index Initial Class		579,350.939		12,426,637		13,944,977		6			13,944,983		378,797		31.962292		43.058422
TA JPMorgan International Moderate Growth Initial Class		1,098,387.190		10,879,298		12,258,001		(26	)		12,257,975		779,849		14.341177		17.770582
TA JPMorgan Mid Cap Value Initial Class		399,632.808		6,886,520		6,250,257		-			6,250,257		173,752		24.419491		43.858938
TA JPMorgan Tactical Allocation Initial Class		2,709,284.722		39,063,389		43,700,763		(24	)		43,700,739		1,877,825		13.616681		50.071454
TA Managed Risk - Balanced ETF Initial Class		209,420.929		2,623,178		2,743,414		(2	)		2,743,412		163,791		16.314837		18.708194
TA Managed Risk - Growth ETF Initial Class		313,617.102		3,372,406		3,437,243		8			3,437,251		191,544		17.645666		19.767190
TA Morgan Stanley Capital Growth Initial Class		5,849,494.064		115,983,190		227,311,339		78			227,311,417		2,578,953		70.535586		118.667407
TA Morgan Stanley Global Allocation Initial Class		633,457.218		5,607,162		6,277,561		13			6,277,574		363,530		15.984012		18.018448
TA Multi-Managed Balanced Initial Class		7,924,738.059		106,361,346		135,037,537		(54	)		135,037,483		3,966,299		23.461220		37.058908
TA PIMCO Tactical - Balanced Initial Class		485,714.276		5,794,842		6,052,000		(20	)		6,051,980		368,625		15.602786		18.563564
TA PIMCO Tactical - Conservative Initial Class		908,068.679		10,583,933		11,323,616		(24	)		11,323,592		734,492		14.719419		17.684434
TA PIMCO Tactical - Growth Initial Class		1,052,824.605		12,362,700		12,749,706		(20	)		12,749,686		807,176		14.990671		18.503412
TA PIMCO Total Return Initial Class		1,856,079.069		22,110,022		22,421,435		(25	)		22,421,410		1,334,112		13.918828		20.290092
TA QS Investors Active Asset Allocation - Conservative Initial Class		407,620.673		4,411,520		4,577,580		(13	)		4,577,567		314,889		13.417673		15.730984
TA QS Investors Active Asset Allocation - Moderate Initial Class		198,555.744		2,263,319		2,305,232		(8	)		2,305,224		160,979		13.322899		15.027504
TA QS Investors Active Asset Allocation - Moderate Growth Initial Class		2,286,452.851		25,467,665		24,830,878		(31	)		24,830,847		1,763,969		12.921192		15.874372
TA Small/Mid Cap Value Initial Class		6,234,597.254		118,490,031		119,641,921		64			119,641,985		3,742,740		22.991770		48.050054
TA T. Rowe Price Small Cap Initial Class		3,758,187.935		59,670,215		71,104,916		(65	)		71,104,851		1,659,731		34.306875		57.520723
TA WMC US Growth Initial Class		36,683,962.052		1,002,710,061		1,603,455,981		(181	)		1,603,455,800		29,290,504		36.128588		58.565190

See accompanying notes.   3

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	AB Balanced Wealth Strategy Class B Shares Subaccount			Access VP High Yield Subaccount			Fidelity® VIP Contrafund® Service Class 2 Subaccount			Fidelity® VIP Equity-Income Service Class 2 Subaccount			Fidelity® VIP Growth    Opportunities Service Class 2    Subaccount
Net Assets as of December 31, 2018:	$	2,234,709		$	3,304,109		$	19,754,892		$	9,560,346		$	9,532,742
Investment Income:
Reinvested Dividends		54,083			200,492			48,729			189,292			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		18,149			28,449			139,740			65,837			74,664
Net Investment Income (Loss)		35,934			172,043			(91,011	)		123,455			(74,664)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		280,567			-			2,578,194			689,944			963,293
Realized Gain (Loss) on Investments		(60,537	)		68,461			(119,866	)		(86,054	)		580,245
Net Realized Capital Gains (Losses) on Investments		220,030			68,461			2,458,328			603,890			1,543,538
Net Change in Unrealized Appreciation (Depreciation)		115,879			203,232			3,475,822			1,659,938			2,420,324
Net Gain (Loss) on Investment		335,909			271,693			5,934,150			2,263,828			3,963,862
Net Increase (Decrease) in Net Assets Resulting from Operations		371,843			443,736			5,843,139			2,387,283			3,889,198
Increase (Decrease) in Net Assets from Contract Transactions		(196,612	)		33,932			(1,376,835	)		(973,465	)		757,826
Total Increase (Decrease) in Net Assets		175,231			477,668			4,466,304			1,413,818			4,647,024
Net Assets as of December 31, 2019:	$	2,409,940		$	3,781,777		$	24,221,196		$	10,974,164		$	14,179,766
Investment Income:
Reinvested Dividends		49,706			212,591			20,013			159,302			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		17,601			21,555			162,080			59,848			107,475
Net Investment Income (Loss)		32,105			191,036			(142,067	)		99,454			(107,475)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		70,829			-			136,390			464,451			992,363
Realized Gain (Loss) on Investments		(61,421	)		(87,352	)		359,784			20,979			1,388,371
Net Realized Capital Gains (Losses) on Investments		9,408			(87,352	)		496,174			485,430			2,380,734
Net Change in Unrealized Appreciation (Depreciation)		168,707			(123,401	)		6,577,645			(54,555	)		7,267,342
Net Gain (Loss) on Investment		178,115			(210,753	)		7,073,819			430,875			9,648,076
Net Increase (Decrease) in Net Assets Resulting from Operations		210,220			(19,717	)		6,931,752			530,329			9,540,601
Increase (Decrease) in Net Assets from Contract Transactions		26,096			(559,163	)		(860,934	)		(725,052	)		1,580,651
Total Increase (Decrease) in Net Assets		236,316			(578,880	)		6,070,818			(194,723	)		11,121,252
Net Assets as of December 31, 2020:	$	2,646,256		$	3,202,897		$	30,292,014		$	10,779,441		$	25,301,018

See Accompanying Notes.
(1) See Footnote 1	4

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	Fidelity® VIP Index 500 Service Class 2 Subaccount			Franklin Allocation Class 4 Shares Subaccount			ProFund VP Asia 30 Subaccount			ProFund VP Basic Materials Subaccount			ProFund VP Bull    Subaccount
Net Assets as of December 31, 2018:	$	45,890,930		$	2,002,167		$	3,704,275		$	2,505,171		$	3,134,335
Investment Income:
Reinvested Dividends		926,928			71,810			9,986			9,134			12,120
Investment Expense:
Mortality and Expense Risk and Administrative Charges		360,784			16,316			36,323			17,236			27,065
Net Investment Income (Loss)		566,144			55,494			(26,337	)		(8,102	)		(14,945)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		763,322			138,149			-			79,821			78,720
Realized Gain (Loss) on Investments		3,852,749			(37,056	)		(75,392	)		(52,256	)		(43,338)
Net Realized Capital Gains (Losses) on Investments		4,616,071			101,093			(75,392	)		27,565			35,382
Net Change in Unrealized Appreciation (Depreciation)		8,013,397			207,382			1,082,320			398,603			824,754
Net Gain (Loss) on Investment		12,629,468			308,475			1,006,928			426,168			860,136
Net Increase (Decrease) in Net Assets Resulting from Operations		13,195,612			363,969			980,591			418,066			845,191
Increase (Decrease) in Net Assets from Contract Transactions		(983,061	)		(148,003	)		3,629,736			(197,459	)		875,966
Total Increase (Decrease) in Net Assets		12,212,551			215,966			4,610,327			220,607			1,721,157
Net Assets as of December 31, 2019:	$	58,103,481		$	2,218,133		$	8,314,602		$	2,725,778		$	4,855,492
Investment Income:
Reinvested Dividends		924,341			31,224			50,526			15,286			3,797
Investment Expense:
Mortality and Expense Risk and Administrative Charges		363,775			14,946			33,834			14,452			29,393
Net Investment Income (Loss)		560,566			16,278			16,692			834			(25,596)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		191,165			601,659			460,583			183,992			210,238
Realized Gain (Loss) on Investments		4,598,062			(124,434	)		348,516			(142,540	)		109,756
Net Realized Capital Gains (Losses) on Investments		4,789,227			477,225			809,099			41,452			319,994
Net Change in Unrealized Appreciation (Depreciation)		4,691,438			(232,552	)		681,934			305,627			277,539
Net Gain (Loss) on Investment		9,480,665			244,673			1,491,033			347,079			597,533
Net Increase (Decrease) in Net Assets Resulting from Operations		10,041,231			260,951			1,507,725			347,913			571,937
Increase (Decrease) in Net Assets from Contract Transactions		29,849			111,049			(4,138,080	)		(157,568	)		(563,195)
Total Increase (Decrease) in Net Assets		10,071,080			372,000			(2,630,355	)		190,345			8,742
Net Assets as of December 31, 2020:	$	68,174,561		$	2,590,133		$	5,684,247		$	2,916,123		$	4,864,234

See Accompanying Notes.
(1) See Footnote 1	5

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	ProFund VP Consumer Services Subaccount			ProFund VP Emerging Markets Subaccount			ProFund VP Europe 30 Subaccount			ProFund VP Falling U.S. Dollar Subaccount			ProFund VP Financials    Subaccount
Net Assets as of December 31, 2018:	$	4,177,142		$	5,692,807		$	1,043,087		$	249,306		$	4,069,052
Investment Income:
Reinvested Dividends		-			30,632			27,124			90			22,358
Investment Expense:
Mortality and Expense Risk and Administrative Charges		32,688			52,355			7,908			1,298			29,712
Net Investment Income (Loss)		(32,688	)		(21,723	)		19,216			(1,208	)		(7,354)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		203,683			-			-			-			210,050
Realized Gain (Loss) on Investments		408,063			(370,650	)		(12,148	)		(8,239	)		171,886
Net Realized Capital Gains (Losses) on Investments		611,746			(370,650	)		(12,148	)		(8,239	)		381,936
Net Change in Unrealized Appreciation (Depreciation)		378,940			1,627,209			205,915			3,936			748,194
Net Gain (Loss) on Investment		990,686			1,256,559			193,767			(4,303	)		1,130,130
Net Increase (Decrease) in Net Assets Resulting from Operations		957,998			1,234,836			212,983			(5,511	)		1,122,776
Increase (Decrease) in Net Assets from Contract Transactions		(449,647	)		3,615,411			(317,767	)		(51,600	)		(475,808)
Total Increase (Decrease) in Net Assets		508,351			4,850,247			(104,784	)		(57,111	)		646,968
Net Assets as of December 31, 2019:	$	4,685,493		$	10,543,054		$	938,303		$	192,195		$	4,716,020
Investment Income:
Reinvested Dividends		-			41,024			19,868			801			23,143
Investment Expense:
Mortality and Expense Risk and Administrative Charges		32,555			40,047			5,057			1,388			23,650
Net Investment Income (Loss)		(32,555	)		977			14,811			(587	)		(507)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,624,961			-			-			-			251,592
Realized Gain (Loss) on Investments		136,129			396,262			(58,265	)		1,549			(77,391)
Net Realized Capital Gains (Losses) on Investments		1,761,090			396,262			(58,265	)		1,549			174,201
Net Change in Unrealized Appreciation (Depreciation)		(508,487	)		1,190,622			(58,435	)		12,371			(433,999)
Net Gain (Loss) on Investment		1,252,603			1,586,884			(116,700	)		13,920			(259,798)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,220,048			1,587,861			(101,889	)		13,333			(260,305)
Increase (Decrease) in Net Assets from Contract Transactions		516,036			(4,544,027	)		(93,241	)		365,705			(826,460)
Total Increase (Decrease) in Net Assets		1,736,084			(2,956,166	)		(195,130	)		379,038			(1,086,765)
Net Assets as of December 31, 2020:	$	6,421,577		$	7,586,888		$	743,173		$	571,233		$	3,629,255

See Accompanying Notes.
(1) See Footnote 1	6

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	ProFund VP Government Money Market Subaccount			ProFund VP International Subaccount			ProFund VP Japan Subaccount			ProFund VP Mid-Cap Subaccount			ProFund VP NASDAQ-100    Subaccount
Net Assets as of December 31, 2018:	$	19,100,813		$	2,137,619		$	766,064		$	3,349,100		$	14,347,955
Investment Income:
Reinvested Dividends		104,686			5,935			1,007			6,492			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		78,136			17,402			5,949			26,364			127,729
Net Investment Income (Loss)		26,550			(11,467	)		(4,942	)		(19,872	)		(127,729)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			-			127,114
Realized Gain (Loss) on Investments		-			(105,511	)		58,526			(547,152	)		1,054,090
Net Realized Capital Gains (Losses) on Investments		-			(105,511	)		58,526			(547,152	)		1,181,204
Net Change in Unrealized Appreciation (Depreciation)		-			492,496			89,001			1,225,600			4,628,461
Net Gain (Loss) on Investment		-			386,985			147,527			678,448			5,809,665
Net Increase (Decrease) in Net Assets Resulting from Operations		26,550			375,518			142,585			658,576			5,681,936
Increase (Decrease) in Net Assets from Contract Transactions		(7,633,506	)		(199,011	)		(49,145	)		(732,363	)		1,156,614
Total Increase (Decrease) in Net Assets		(7,606,956	)		176,507			93,440			(73,787	)		6,838,550
Net Assets as of December 31, 2019:	$	11,493,857		$	2,314,126		$	859,504		$	3,275,313		$	21,186,505
Investment Income:
Reinvested Dividends		6,086			12,652			1,842			33,877			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		99,760			13,390			4,729			20,912			170,915
Net Investment Income (Loss)		(93,674	)		(738	)		(2,887	)		12,965			(170,915)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			1,045,964			1,920,109
Realized Gain (Loss) on Investments		-			(266,306	)		(63,133	)		(370,987	)		5,116,780
Net Realized Capital Gains (Losses) on Investments		-			(266,306	)		(63,133	)		674,977			7,036,889
Net Change in Unrealized Appreciation (Depreciation)		-			495,619			147,663			(187,266	)		3,042,384
Net Gain (Loss) on Investment		-			229,313			84,530			487,711			10,079,273
Net Increase (Decrease) in Net Assets Resulting from Operations		(93,674	)		228,575			81,643			500,676			9,908,358
Increase (Decrease) in Net Assets from Contract Transactions		7,015,689			155,532			(148,370	)		1,170,847			(27,788)
Total Increase (Decrease) in Net Assets		6,922,015			384,107			(66,727	)		1,671,523			9,880,570
Net Assets as of December 31, 2020:	$	18,415,872		$	2,698,233		$	792,777		$	4,946,836		$	31,067,075

See Accompanying Notes.
(1) See Footnote 1	7

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	ProFund VP Oil & Gas Subaccount			ProFund VP Pharmaceuticals Subaccount			ProFund VP Precious Metals Subaccount			ProFund VP Short Emerging Markets Subaccount			ProFund VP Short    International    Subaccount
Net Assets as of December 31, 2018:	$	6,013,987		$	5,199,084		$	4,574,070		$	744,822		$	351,032
Investment Income:
Reinvested Dividends		81,803			42,914			2,051			2,415			1,645
Investment Expense:
Mortality and Expense Risk and Administrative Charges		40,611			37,397			42,888			3,679			2,257
Net Investment Income (Loss)		41,192			5,517			(40,837	)		(1,264	)		(612)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		193,938			625,421			-			39,791			8,031
Realized Gain (Loss) on Investments		(662,789	)		(224,564	)		361,001			(68,969	)		1,669
Net Realized Capital Gains (Losses) on Investments		(468,851	)		400,857			361,001			(29,178	)		9,700
Net Change in Unrealized Appreciation (Depreciation)		910,051			206,336			1,890,385			(135,617	)		(73,037)
Net Gain (Loss) on Investment		441,200			607,193			2,251,386			(164,795	)		(63,337)
Net Increase (Decrease) in Net Assets Resulting from Operations		482,392			612,710			2,210,549			(166,059	)		(63,949)
Increase (Decrease) in Net Assets from Contract Transactions		(1,080,596	)		(794,458	)		979,175			(226,410	)		6,019
Total Increase (Decrease) in Net Assets		(598,204	)		(181,748	)		3,189,724			(392,469	)		(57,930)
Net Assets as of December 31, 2019:	$	5,415,783		$	5,017,336		$	7,763,794		$	352,353		$	293,102
Investment Income:
Reinvested Dividends		114,693			6,474			25,222			3,453			2,411
Investment Expense:
Mortality and Expense Risk and Administrative Charges		28,559			38,411			70,796			5,256			3,067
Net Investment Income (Loss)		86,134			(31,937	)		(45,574	)		(1,803	)		(656)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		50,718			-			-			-			-
Realized Gain (Loss) on Investments		(2,347,880	)		(233,848	)		1,804,024			(274,008	)		(55,979)
Net Realized Capital Gains (Losses) on Investments		(2,297,162	)		(233,848	)		1,804,024			(274,008	)		(55,979)
Net Change in Unrealized Appreciation (Depreciation)		350,639			1,014,391			50,533			(61,193	)		(97,190)
Net Gain (Loss) on Investment		(1,946,523	)		780,543			1,854,557			(335,201	)		(153,169)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,860,389	)		748,606			1,808,983			(337,004	)		(153,825)
Increase (Decrease) in Net Assets from Contract Transactions		1,479,684			556,232			1,175,841			220,688			214,577
Total Increase (Decrease) in Net Assets		(380,705	)		1,304,838			2,984,824			(116,316	)		60,752
Net Assets as of December 31, 2020:	$	5,035,078		$	6,322,174		$	10,748,618		$	236,037		$	353,854

See Accompanying Notes.
(1) See Footnote 1	8

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	ProFund VP Short NASDAQ- 100 Subaccount			ProFund VP Short Small-Cap Subaccount			ProFund VP Small-Cap Subaccount			ProFund VP Small-Cap Value Subaccount			ProFund VP Telecommunications    Subaccount
Net Assets as of December 31, 2018:	$	2,986,569		$	426,579		$	2,243,155		$	1,648,295		$	668,160
Investment Income:
Reinvested Dividends		946			468			-			-			23,551
Investment Expense:
Mortality and Expense Risk and Administrative Charges		7,080			3,436			16,495			13,214			5,161
Net Investment Income (Loss)		(6,134	)		(2,968	)		(16,495	)		(13,214	)		18,390
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			41,575			-			-			-
Realized Gain (Loss) on Investments		(127,373	)		(49,225	)		(106,362	)		(68,532	)		(66,292)
Net Realized Capital Gains (Losses) on Investments		(127,373	)		(7,650	)		(106,362	)		(68,532	)		(66,292)
Net Change in Unrealized Appreciation (Depreciation)		(315,340	)		(96,464	)		590,014			436,537			142,444
Net Gain (Loss) on Investment		(442,713	)		(104,114	)		483,652			368,005			76,152
Net Increase (Decrease) in Net Assets Resulting from Operations		(448,847	)		(107,082	)		467,157			354,791			94,542
Increase (Decrease) in Net Assets from Contract Transactions		1,080,537			193,787			1,728,106			2,052,654			(48,290)
Total Increase (Decrease) in Net Assets		631,690			86,705			2,195,263			2,407,445			46,252
Net Assets as of December 31, 2019:	$	3,618,259		$	513,284		$	4,438,418		$	4,055,740		$	714,412
Investment Income:
Reinvested Dividends		6,413			4,752			1,349			417			7,930
Investment Expense:
Mortality and Expense Risk and Administrative Charges		10,574			5,886			15,891			11,293			5,695
Net Investment Income (Loss)		(4,161	)		(1,134	)		(14,542	)		(10,876	)		2,235
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			84,901			192,770			-
Realized Gain (Loss) on Investments		(723,485	)		(370,386	)		(97,760	)		(387,001	)		(47,384)
Net Realized Capital Gains (Losses) on Investments		(723,485	)		(370,386	)		(12,859	)		(194,231	)		(47,384)
Net Change in Unrealized Appreciation (Depreciation)		(505,631	)		(108,349	)		494,457			111,932			93,533
Net Gain (Loss) on Investment		(1,229,116	)		(478,735	)		481,598			(82,299	)		46,149
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,233,277	)		(479,869	)		467,056			(93,175	)		48,384
Increase (Decrease) in Net Assets from Contract Transactions		454,689			515,202			(425,422	)		(569,896	)		204,365
Total Increase (Decrease) in Net Assets		(778,588	)		35,333			41,634			(663,071	)		252,749
Net Assets as of December 31, 2020:	$	2,839,671		$	548,617		$	4,480,052		$	3,392,669		$	967,161

See Accompanying Notes.
(1) See Footnote 1	9

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	ProFund VP U.S. Government Plus Subaccount			ProFund VP UltraNASDAQ- 100 Subaccount			ProFund VP UltraSmall-Cap Subaccount			ProFund VP Utilities Subaccount			TA Aegon High Yield Bond Initial    Class Subaccount
Net Assets as of December 31, 2018:	$	3,231,995		$	23,124,940		$	5,975,141		$	4,679,004		$	16,374,808
Investment Income:
Reinvested Dividends		34,858			-			-			78,533			1,082,025
Investment Expense:
Mortality and Expense Risk and Administrative Charges		29,702			197,372			50,733			34,884			124,366
Net Investment Income (Loss)		5,156			(197,372	)		(50,733	)		43,649			957,659
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			294,870			-
Realized Gain (Loss) on Investments		307,547			(2,905,340	)		(1,698,223	)		241,650			(64,182)
Net Realized Capital Gains (Losses) on Investments		307,547			(2,905,340	)		(1,698,223	)		536,520			(64,182)
Net Change in Unrealized Appreciation (Depreciation)		239,285			19,257,595			4,360,120			387,990			1,249,819
Net Gain (Loss) on Investment		546,832			16,352,255			2,661,897			924,510			1,185,637
Net Increase (Decrease) in Net Assets Resulting from Operations		551,988			16,154,883			2,611,164			968,159			2,143,296
Increase (Decrease) in Net Assets from Contract Transactions		510,598			(3,472,224	)		(653,925	)		659,261			(457,840)
Total Increase (Decrease) in Net Assets		1,062,586			12,682,659			1,957,239			1,627,420			1,685,456
Net Assets as of December 31, 2019:	$	4,294,581		$	35,807,599		$	7,932,380		$	6,306,424		$	18,060,264
Investment Income:
Reinvested Dividends		2,311			-			7,265			79,326			924,903
Investment Expense:
Mortality and Expense Risk and Administrative Charges		51,532			277,326			36,228			34,431			101,013
Net Investment Income (Loss)		(49,221	)		(277,326	)		(28,963	)		44,895			823,890
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		663,416			11,283,397			861,952			1,107,065			-
Realized Gain (Loss) on Investments		1,128,181			10,409,473			(1,702,602	)		(290,976	)		(790,853)
Net Realized Capital Gains (Losses) on Investments		1,791,597			21,692,870			(840,650	)		816,089			(790,853)
Net Change in Unrealized Appreciation (Depreciation)		(1,267,806	)		7,981,420			2,003,792			(1,195,878	)		357,619
Net Gain (Loss) on Investment		523,791			29,674,290			1,163,142			(379,789	)		(433,234)
Net Increase (Decrease) in Net Assets Resulting from Operations		474,570			29,396,964			1,134,179			(334,894	)		390,656
Increase (Decrease) in Net Assets from Contract Transactions		2,892,387			(590,879	)		(729,609	)		(1,190,539	)		(3,395,099)
Total Increase (Decrease) in Net Assets		3,366,957			28,806,085			404,570			(1,525,433	)		(3,004,443)
Net Assets as of December 31, 2020:	$	7,661,538		$	64,613,684		$	8,336,950		$	4,780,991		$	15,055,821

See Accompanying Notes.
(1) See Footnote 1	10

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	TA Aegon Sustainable Equity Income Initial Class Subaccount			TA Aegon U.S. Government Securities Initial Class Subaccount			TA BlackRock Global Real Estate Securities Initial Class Subaccount			TA BlackRock Government Money Market Initial Class Subaccount			TA BlackRock iShares Edge 40    Initial Class Subaccount
Net Assets as of December 31, 2018:	$	62,532,917		$	6,445,842		$	35,023,934		$	36,454,670		$	2,620,516
Investment Income:
Reinvested Dividends		1,602,952			133,355			357,326			623,424			62,230
Investment Expense:
Mortality and Expense Risk and Administrative Charges		472,508			47,270			274,103			223,470			18,262
Net Investment Income (Loss)		1,130,444			86,085			83,223			399,954			43,968
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		9,849,243			-			-			-			368,111
Realized Gain (Loss) on Investments		3,934,962			37,402			249,763			-			18,757
Net Realized Capital Gains (Losses) on Investments		13,784,205			37,402			249,763			-			386,868
Net Change in Unrealized Appreciation (Depreciation)		(1,118,597	)		284,002			8,045,090			-			(56,653)
Net Gain (Loss) on Investment		12,665,608			321,404			8,294,853			-			330,215
Net Increase (Decrease) in Net Assets Resulting from Operations		13,796,052			407,489			8,378,076			399,954			374,183
Increase (Decrease) in Net Assets from Contract Transactions		(7,652,004	)		(479,473	)		(2,391,165	)		(6,637,000	)		(120,384)
Total Increase (Decrease) in Net Assets		6,144,048			(71,984	)		5,986,911			(6,237,046	)		253,799
Net Assets as of December 31, 2019:	$	68,676,965		$	6,373,858		$	41,010,845		$	30,217,624		$	2,874,315
Investment Income:
Reinvested Dividends		1,645,948			190,750			4,292,846			89,702			63,506
Investment Expense:
Mortality and Expense Risk and Administrative Charges		373,811			79,656			230,363			213,987			16,933
Net Investment Income (Loss)		1,272,137			111,094			4,062,483			(124,285	)		46,573
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		6,651,061			13,960			2,547,163			-			18,044
Realized Gain (Loss) on Investments		(213,364	)		714,772			(621,706	)		-			(17,203)
Net Realized Capital Gains (Losses) on Investments		6,437,697			728,732			1,925,457			-			841
Net Change in Unrealized Appreciation (Depreciation)		(13,749,395	)		(62,974	)		(6,695,444	)		-			175,150
Net Gain (Loss) on Investment		(7,311,698	)		665,758			(4,769,987	)		-			175,991
Net Increase (Decrease) in Net Assets Resulting from Operations		(6,039,561	)		776,852			(707,504	)		(124,285	)		222,564
Increase (Decrease) in Net Assets from Contract Transactions		(5,209,848	)		4,393,838			(3,512,899	)		(107,271	)		(350,106)
Total Increase (Decrease) in Net Assets		(11,249,409	)		5,170,690			(4,220,403	)		(231,556	)		(127,542)
Net Assets as of December 31, 2020:	$	57,427,556		$	11,544,548		$	36,790,442		$	29,986,068		$	2,746,773

See Accompanying Notes.
(1) See Footnote 1	11

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	TA BlackRock Tactical Allocation Initial Class Subaccount			TA International Growth Initial Class Subaccount			TA Janus Balanced Initial Class Subaccount			TA Janus Mid-Cap Growth Initial Class Subaccount			TA JPMorgan Asset Allocation -    Conservative Initial Class    Subaccount
Net Assets as of December 31, 2018:	$	24,034,351		$	31,067,991		$	10,568,133		$	312,172,498		$	23,252,229
Investment Income:
Reinvested Dividends		1,026,884			552,871			192,619			277,961			610,824
Investment Expense:
Mortality and Expense Risk and Administrative Charges		180,824			215,855			85,286			2,819,135			164,162
Net Investment Income (Loss)		846,060			337,016			107,333			(2,541,174	)		446,662
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,925,279			5,551,202			539,347			20,294,136			865,822
Realized Gain (Loss) on Investments		(940,190	)		665,919			705,791			9,014,826			(158,591)
Net Realized Capital Gains (Losses) on Investments		985,089			6,217,121			1,245,138			29,308,962			707,231
Net Change in Unrealized Appreciation (Depreciation)		1,982,157			1,583,452			931,716			82,711,840			1,796,107
Net Gain (Loss) on Investment		2,967,246			7,800,573			2,176,854			112,020,802			2,503,338
Net Increase (Decrease) in Net Assets Resulting from Operations		3,813,306			8,137,589			2,284,187			109,479,628			2,950,000
Increase (Decrease) in Net Assets from Contract Transactions		(2,363,826	)		(2,780,442	)		252,705			(25,920,682	)		(1,542,605)
Total Increase (Decrease) in Net Assets		1,449,480			5,357,147			2,536,892			83,558,946			1,407,395
Net Assets as of December 31, 2019:	$	25,483,831		$	36,425,138		$	13,105,025		$	395,731,444		$	24,659,624
Investment Income:
Reinvested Dividends		912,395			773,603			214,324			853,861			589,998
Investment Expense:
Mortality and Expense Risk and Administrative Charges		175,375			209,016			84,117			2,772,268			158,001
Net Investment Income (Loss)		737,020			564,587			130,207			(1,918,407	)		431,997
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,514,419			-			512,221			30,578,426			582,615
Realized Gain (Loss) on Investments		(1,040,842	)		(244,554	)		826,483			8,035,268			37,544
Net Realized Capital Gains (Losses) on Investments		1,473,577			(244,554	)		1,338,704			38,613,694			620,159
Net Change in Unrealized Appreciation (Depreciation)		857,520			6,423,141			213,549			30,187,358			1,412,344
Net Gain (Loss) on Investment		2,331,097			6,178,587			1,552,253			68,801,052			2,032,503
Net Increase (Decrease) in Net Assets Resulting from Operations		3,068,117			6,743,174			1,682,460			66,882,645			2,464,500
Increase (Decrease) in Net Assets from Contract Transactions		(994,582	)		(2,746,318	)		(616,119	)		(19,062,056	)		(1,529,688)
Total Increase (Decrease) in Net Assets		2,073,535			3,996,856			1,066,341			47,820,589			934,812
Net Assets as of December 31, 2020:	$	27,557,366		$	40,421,994		$	14,171,366		$	443,552,033		$	25,594,436

See Accompanying Notes.
(1) See Footnote 1	12

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	TA JPMorgan Asset Allocation - Growth Initial Class Subaccount			TA JPMorgan Asset Allocation - Moderate Initial Class Subaccount			TA JPMorgan Asset Allocation - Moderate Growth Initial Class Subaccount			TA JPMorgan Core Bond Initial Class Subaccount			TA JPMorgan Enhanced Index Initial Class Subaccount
Net Assets as of December 31, 2018:	$	263,807,775		$	67,106,795		$	265,001,910		$	34,423,020		$	8,703,767
Investment Income:
Reinvested Dividends		5,069,967			1,540,241			6,205,604			912,798			116,978
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,882,462			446,171			1,769,877			261,566			68,196
Net Investment Income (Loss)		3,187,505			1,094,070			4,435,727			651,232			48,782
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		26,837,389			3,991,806			23,886,756			-			1,149,521
Realized Gain (Loss) on Investments		10,365,964			1,501,352			2,841,007			175,421			331,401
Net Realized Capital Gains (Losses) on Investments		37,203,353			5,493,158			26,727,763			175,421			1,480,922
Net Change in Unrealized Appreciation (Depreciation)		24,776,221			3,659,556			18,579,810			1,798,590			1,049,319
Net Gain (Loss) on Investment		61,979,574			9,152,714			45,307,573			1,974,011			2,530,241
Net Increase (Decrease) in Net Assets Resulting from Operations		65,167,079			10,246,784			49,743,300			2,625,243			2,579,023
Increase (Decrease) in Net Assets from Contract Transactions		(14,992,350	)		(3,870,929	)		(14,975,384	)		(3,047,617	)		(337,881	)
Total Increase (Decrease) in Net Assets		50,174,729			6,375,855			34,767,916			(422,374	)		2,241,142
Net Assets as of December 31, 2019:	$	313,982,504		$	73,482,650		$	299,769,826		$	34,000,646		$	10,944,909
Investment Income:
Reinvested Dividends		5,126,260			1,537,846			5,891,875			1,376,765			171,165
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,696,615			392,037			1,559,884			258,438			73,679
Net Investment Income (Loss)		3,429,645			1,145,809			4,331,991			1,118,327			97,486
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		24,058,579			2,120,548			14,861,595			96,785			945,299
Realized Gain (Loss) on Investments		7,397,346			539,464			1,593,168			323,451			20,160
Net Realized Capital Gains (Losses) on Investments		31,455,925			2,660,012			16,454,763			420,236			965,459
Net Change in Unrealized Appreciation (Depreciation)		35,714,518			4,362,962			19,757,008			739,610			1,077,700
Net Gain (Loss) on Investment		67,170,443			7,022,974			36,211,771			1,159,846			2,043,159
Net Increase (Decrease) in Net Assets Resulting from Operations		70,600,088			8,168,783			40,543,762			2,278,173			2,140,645
Increase (Decrease) in Net Assets from Contract Transactions		(18,296,697	)		(3,922,131	)		(16,557,838	)		574,342			859,429
Total Increase (Decrease) in Net Assets		52,303,391			4,246,652			23,985,924			2,852,515			3,000,074
Net Assets as of December 31, 2020:	$	366,285,895		$	77,729,302		$	323,755,750		$	36,853,161		$	13,944,983

See Accompanying Notes.
(1) See Footnote 1	13

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	TA JPMorgan International Moderate Growth Initial Class Subaccount			TA JPMorgan Mid Cap Value Initial Class Subaccount			TA JPMorgan Tactical Allocation Initial Class Subaccount			TA Managed Risk -Balanced ETF Initial Class Subaccount			TA Managed Risk -Growth ETF Initial Class Subaccount
Net Assets as of December 31, 2018:	$	10,202,855		$	5,759,797		$	42,293,856		$	1,631,149		$	3,189,192
Investment Income:
Reinvested Dividends		251,028			89,010			1,007,811			59,946			79,329
Investment Expense:
Mortality and Expense Risk and Administrative Charges		80,846			45,835			292,811			18,412			27,410
Net Investment Income (Loss)		170,182			43,175			715,000			41,534			51,919
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		881,789			576,227			535,536			70,348			340,179
Realized Gain (Loss) on Investments		118,333			(60,248	)		861,577			28,870			117,019
Net Realized Capital Gains (Losses) on Investments		1,000,122			515,979			1,397,113			99,218			457,198
Net Change in Unrealized Appreciation (Depreciation)		509,288			857,744			2,490,040			178,573			121,218
Net Gain (Loss) on Investment		1,509,410			1,373,723			3,887,153			277,791			578,416
Net Increase (Decrease) in Net Assets Resulting from Operations		1,679,592			1,416,898			4,602,153			319,325			630,335
Increase (Decrease) in Net Assets from Contract Transactions		(598,513	)		(530,508	)		(5,354,152	)		1,045,655			223,429
Total Increase (Decrease) in Net Assets		1,081,079			886,390			(751,999	)		1,364,980			853,764
Net Assets as of December 31, 2019:	$	11,283,934		$	6,646,187		$	41,541,857		$	2,996,129		$	4,042,956
Investment Income:
Reinvested Dividends		290,580			69,798			1,009,238			61,342			78,691
Investment Expense:
Mortality and Expense Risk and Administrative Charges		78,121			39,746			276,406			20,305			24,613
Net Investment Income (Loss)		212,459			30,052			732,832			41,037			54,078
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		975			209,896			1,032,746			33,475			93,283
Realized Gain (Loss) on Investments		60,932			(124,277	)		506,735			55,795			(13,862	)
Net Realized Capital Gains (Losses) on Investments		61,907			85,619			1,539,481			89,270			79,421
Net Change in Unrealized Appreciation (Depreciation)		1,215,350			(138,595	)		2,324,795			(46,333	)		(58,456	)
Net Gain (Loss) on Investment		1,277,257			(52,976	)		3,864,276			42,937			20,965
Net Increase (Decrease) in Net Assets Resulting from Operations		1,489,716			(22,924	)		4,597,108			83,974			75,043
Increase (Decrease) in Net Assets from Contract Transactions		(515,675	)		(373,006	)		(2,438,226	)		(336,691	)		(680,748	)
Total Increase (Decrease) in Net Assets		974,041			(395,930	)		2,158,882			(252,717	)		(605,705	)
Net Assets as of December 31, 2020:	$	12,257,975		$	6,250,257		$	43,700,739		$	2,743,412		$	3,437,251

See Accompanying Notes.
(1) See Footnote 1	14

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	TA Morgan Stanley Capital Growth Initial Class Subaccount			TA Morgan Stanley Global Allocation Initial Class Subaccount			TA Multi-Managed Balanced Initial Class Subaccount			TA PIMCO Tactical-Balanced Initial Class Subaccount			TA PIMCO Tactical - Conservative Initial Class Subaccount
Net Assets as of December 31, 2018:	$	65,480,293		$	5,454,596		$	111,103,271		$	5,644,298		$	9,513,930
Investment Income:
Reinvested Dividends		-			107,730			1,967,094			24,881			35,633
Investment Expense:
Mortality and Expense Risk and Administrative Charges		523,538			40,659			942,240			41,139			73,027
Net Investment Income (Loss)		(523,538	)		67,071			1,024,854			(16,258	)		(37,394	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		6,521,332			362,825			7,458,183			-			-
Realized Gain (Loss) on Investments		2,583,408			63,318			2,855,819			(5,799	)		85,116
Net Realized Capital Gains (Losses) on Investments		9,104,740			426,143			10,314,002			(5,799	)		85,116
Net Change in Unrealized Appreciation (Depreciation)		8,946,383			408,183			11,102,784			1,052,397			1,553,240
Net Gain (Loss) on Investment		18,051,123			834,326			21,416,786			1,046,598			1,638,356
Net Increase (Decrease) in Net Assets Resulting from Operations		17,527,585			901,397			22,441,640			1,030,340			1,600,962
Increase (Decrease) in Net Assets from Contract Transactions		23,509,515			(576,619	)		(7,963,515	)		(535,669	)		(562,771	)
Total Increase (Decrease) in Net Assets		41,037,100			324,778			14,478,125			494,671			1,038,191
Net Assets as of December 31, 2019:	$	106,517,393		$	5,779,374		$	125,581,396		$	6,138,969		$	10,552,121
Investment Income:
Reinvested Dividends		-			107,845			1,945,517			204,268			177,340
Investment Expense:
Mortality and Expense Risk and Administrative Charges		973,569			38,901			967,483			38,240			71,217
Net Investment Income (Loss)		(973,569	)		68,944			978,034			166,028			106,123
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		6,390,693			340,552			4,991,273			369,313			701,767
Realized Gain (Loss) on Investments		10,682,494			20,796			3,152,052			60,782			168,310
Net Realized Capital Gains (Losses) on Investments		17,073,187			361,348			8,143,325			430,095			870,077
Net Change in Unrealized Appreciation (Depreciation)		105,066,656			482,201			8,636,011			(127,489	)		(11,616	)
Net Gain (Loss) on Investment		122,139,843			843,549			16,779,336			302,606			858,461
Net Increase (Decrease) in Net Assets Resulting from Operations		121,166,274			912,493			17,757,370			468,634			964,584
Increase (Decrease) in Net Assets from Contract Transactions		(372,250	)		(414,293	)		(8,301,283	)		(555,623	)		(193,113	)
Total Increase (Decrease) in Net Assets		120,794,024			498,200			9,456,087			(86,989	)		771,471
Net Assets as of December 31, 2020:	$	227,311,417		$	6,277,574		$	135,037,483		$	6,051,980		$	11,323,592

See Accompanying Notes.
(1) See Footnote 1	15

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	TA PIMCO Tactical - Growth Initial Class Subaccount			TA PIMCO Total Return Initial Class Subaccount			TA QS Investors Active Asset Allocation - Conservative Initial Class Subaccount			TA QS Investors Active Asset Allocation - Moderate Initial Class Subaccount
Net Assets as of December 31, 2018:	$	11,257,710		$	21,095,608		$	4,151,993		$	2,282,530
Investment Income:
Reinvested Dividends		-			526,145			98,697			50,864
Investment Expense:
Mortality and Expense Risk and Administrative Charges		86,377			153,015			31,047			18,319
Net Investment Income (Loss)		(86,377	)		373,130			67,650			32,545
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			327,617			167,456
Realized Gain (Loss) on Investments		157,658			375,260			3,519			10,462
Net Realized Capital Gains (Losses) on Investments		157,658			375,260			331,136			177,918
Net Change in Unrealized Appreciation (Depreciation)		2,231,514			630,539			39,149			31,279
Net Gain (Loss) on Investment		2,389,172			1,005,799			370,285			209,197
Net Increase (Decrease) in Net Assets Resulting from Operations		2,302,795			1,378,929			437,935			241,742
Increase (Decrease) in Net Assets from Contract Transactions		(979,462	)		(1,478,307	)		(159,378	)		(6,278	)
Total Increase (Decrease) in Net Assets		1,323,333			(99,378	)		278,557			235,464
Net Assets as of December 31, 2019:	$	12,581,043		$	20,996,230		$	4,430,550		$	2,517,994
Investment Income:
Reinvested Dividends		493,572			1,129,154			95,504			48,523
Investment Expense:
Mortality and Expense Risk and Administrative Charges		80,155			154,865			29,918			17,118
Net Investment Income (Loss)		413,417			974,289			65,586			31,405
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		982,238			116,623			61,925			41,917
Realized Gain (Loss) on Investments		147,980			523,910			7,915			(21,702	)
Net Realized Capital Gains (Losses) on Investments		1,130,218			640,533			69,840			20,215
Net Change in Unrealized Appreciation (Depreciation)		(542,393	)		75,437			138,327			1,925
Net Gain (Loss) on Investment		587,825			715,970			208,167			22,140
Net Increase (Decrease) in Net Assets Resulting from Operations		1,001,242			1,690,259			273,753			53,545
Increase (Decrease) in Net Assets from Contract Transactions		(832,599	)		(265,079	)		(126,736	)		(266,315	)
Total Increase (Decrease) in Net Assets		168,643			1,425,180			147,017			(212,770	)
Net Assets as of December 31, 2020:	$	12,749,686		$	22,421,410		$	4,577,567		$	2,305,224

See Accompanying Notes.
(1) See Footnote 1	16

Transamerica Life Insurance Company

WRL Series Life Account

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2019 and 2020

	TA QS Investors Active Asset Allocation - Moderate Growth Initial Class Subaccount			TA Small/Mid Cap Value Initial Class Subaccount			TA T. Rowe Price Small Cap Initial Class Subaccount			TA WMC US Growth Initial Class Subaccount
Net Assets as of December 31, 2018:	$	26,218,151		$	113,071,433		$	47,121,727		$	943,928,588
Investment Income:
Reinvested Dividends		524,197			1,205,324			-			1,467,441
Investment Expense:
Mortality and Expense Risk and Administrative Charges		190,884			859,814			367,049			8,707,262
Net Investment Income (Loss)		333,313			345,510			(367,049	)		(7,239,821	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,773,079			9,600,856			6,131,130			95,562,429
Realized Gain (Loss) on Investments		934,450			(1,989,612	)		1,510,130			13,707,524
Net Realized Capital Gains (Losses) on Investments		2,707,529			7,611,244			7,641,260			109,269,953
Net Change in Unrealized Appreciation (Depreciation)		(245,310	)		18,684,298			7,262,258			257,141,749
Net Gain (Loss) on Investment		2,462,219			26,295,542			14,903,518			366,411,702
Net Increase (Decrease) in Net Assets Resulting from Operations		2,795,532			26,641,052			14,536,469			359,171,881
Increase (Decrease) in Net Assets from Contract Transactions		(1,967,330	)		(10,890,569	)		(1,851,731	)		(56,292,712	)
Total Increase (Decrease) in Net Assets		828,202			15,750,483			12,684,738			302,879,169
Net Assets as of December 31, 2019:	$	27,046,353		$	128,821,916		$	59,806,465		$	1,246,807,757
Investment Income:
Reinvested Dividends		512,341			1,234,099			-			1,437,010
Investment Expense:
Mortality and Expense Risk and Administrative Charges		159,218			678,712			356,236			10,330,533
Net Investment Income (Loss)		353,123			555,387			(356,236	)		(8,893,523	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		483,803			4,300,130			3,900,460			104,616,441
Realized Gain (Loss) on Investments		(373,417	)		(6,123,022	)		152,433			30,402,951
Net Realized Capital Gains (Losses) on Investments		110,386			(1,822,892	)		4,052,893			135,019,392
Net Change in Unrealized Appreciation (Depreciation)		(1,218,256	)		2,972,327			7,777,840			306,266,406
Net Gain (Loss) on Investment		(1,107,870	)		1,149,435			11,830,733			441,285,798
Net Increase (Decrease) in Net Assets Resulting from Operations		(754,747	)		1,704,822			11,474,497			432,392,275
Increase (Decrease) in Net Assets from Contract Transactions		(1,460,759	)		(10,884,753	)		(176,111	)		(75,744,232	)
Total Increase (Decrease) in Net Assets		(2,215,506	)		(9,179,931	)		11,298,386			356,648,043
Net Assets as of December 31, 2020:	$	24,830,847		$	119,641,985		$	71,104,851		$	1,603,455,800

See Accompanying Notes.
(1) See Footnote 1	17

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

1. Organization

WRL Series Life Account (the Separate Account) is a segregated investment account of Transamerica Life Insurance Company (TLIC). The Separate Account was formerly a segregated investment account of Transamerica Premier Life Insurance Company (TPLIC). Effective October 1, 2020, TPLIC merged into TLIC. The merger did not affect the assets or liabilities of the Separate Account. TLIC is 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. TLIC and the Separate Account are regulated by the Securities and Exchange Commission. The assets and liabilities of the Separate Account are clearly identified and distinguished from TLIC’s other assets and liabilities. 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
AB Variable Products Series Fund	AB Variable Products Series Fund
AB Balanced Wealth Strategy Class B Shares	AB Balanced Wealth Strategy Portfolio Class B Shares
Access One Trust	Access One Trust
Access VP High Yield	Access VP High Yield
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 Allocation Class 4 Shares	Franklin Allocation Fund Class 4 Shares
ProFunds	ProFunds
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 Government Money Market	ProFund VP Government Money Market
ProFund VP International	ProFund VP International
ProFund VP Japan	ProFund VP Japan
ProFund VP Mid-Cap	ProFund VP Mid-Cap
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

18

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

1. Organization (continued)

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
ProFunds	ProFunds
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 High Yield Bond Initial Class	Transamerica Aegon High Yield Bond VP Initial Class
TA Aegon Sustainable Equity Income Initial Class	Transamerica Aegon Sustainable Equity Income VP Initial Class
TA Aegon U.S. Government Securities Initial Class	Transamerica Aegon U.S. Government Securities VP Initial Class
TA BlackRock Global Real Estate Securities Initial Class	Transamerica BlackRock Global Real Estate Securities VP Initial Class
TA BlackRock Government Money Market Initial Class	Transamerica BlackRock Government Money Market VP Initial Class
TA BlackRock iShares Edge 40 Initial Class	Transamerica BlackRock iShares Edge 40 VP Initial Class
TA BlackRock Tactical Allocation Initial Class	Transamerica BlackRock Tactical Allocation VP Initial Class
TA International Growth Initial Class	Transamerica International Growth VP Initial Class
TA Janus Balanced Initial Class	Transamerica Janus Balanced VP Initial Class
TA Janus Mid-Cap Growth Initial Class	Transamerica Janus Mid-Cap Growth VP Initial Class
TA JPMorgan Asset Allocation - Conservative Initial Class	Transamerica JPMorgan Asset Allocation - Conservative VP Initial Class
TA JPMorgan Asset Allocation - Growth Initial Class	Transamerica JPMorgan Asset Allocation - Growth VP Initial Class
TA JPMorgan Asset Allocation - Moderate Initial Class	Transamerica JPMorgan Asset Allocation - Moderate VP Initial Class
TA JPMorgan Asset Allocation - Moderate Growth Initial Class	Transamerica JPMorgan Asset Allocation - Moderate Growth VP Initial Class
TA JPMorgan Core Bond Initial Class	Transamerica JPMorgan Core Bond VP Initial Class
TA JPMorgan Enhanced Index Initial Class	Transamerica JPMorgan Enhanced Index VP Initial Class
TA JPMorgan International Moderate Growth Initial Class	Transamerica JPMorgan International Moderate Growth VP Initial Class
TA JPMorgan Mid Cap Value Initial Class	Transamerica JPMorgan Mid Cap Value VP Initial Class
TA JPMorgan Tactical Allocation Initial Class	Transamerica JPMorgan Tactical Allocation VP Initial Class
TA Managed Risk - Balanced ETF Initial Class	Transamerica Managed Risk - Balanced ETF VP Initial Class
TA Managed Risk - Growth ETF Initial Class	Transamerica Managed Risk - Growth ETF VP Initial Class
TA Morgan Stanley Capital Growth Initial Class	Transamerica Morgan Stanley Capital Growth VP Initial Class
TA Morgan Stanley Global Allocation Initial Class	Transamerica Morgan Stanely Global Allocation VP Initial Class
TA Multi-Managed Balanced Initial Class	Transamerica Multi-Managed Balanced VP Initial Class
TA PIMCO Tactical - Balanced Initial Class	Transamerica PIMCO Tactical - Balanced VP Initial Class
TA PIMCO Tactical - Conservative Initial Class	Transamerica PIMCO Tactical - Conservative VP Initial Class
TA PIMCO Tactical - Growth Initial Class	Transamerica PIMCO Tactical - Growth VP Initial Class
TA PIMCO Total Return Initial Class	Transamerica PIMCO Total Return VP Initial Class
TA QS Investors Active Asset Allocation - Conservative Initial Class	Transamerica QS Investors Active Asset Allocation - Conservative VP Initial Class
TA QS Investors Active Asset Allocation - Moderate Initial Class	Transamerica QS Investors Active Asset Allocation - Moderate VP Initial Class
TA QS Investors Active Asset Allocation - Moderate Growth Initial Class	Transamerica QS Investors Active Asset Allocation - Moderate Growth VP Initial Class
TA Small/Mid Cap Value Initial Class	Transamerica Small/Mid Cap Value VP Initial Class
TA T. Rowe Price Small Cap Initial Class	Transamerica T. Rowe Price Small Cap VP Initial Class
TA WMC US Growth Initial Class	Transamerica WMC US Growth VP Initial Class

19

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

1. Organization (continued)

The following subaccount name changes were made effective during the fiscal year ended December 31, 2020:

Subaccount

TA Aegon Sustainable Equity Income Initial Class

TA International Growth Initial Class

TA Morgan Stanley Global Allocation Initial Class

Formerly

TA Barrow Hanley Dividend Focused Initial Class

TA Greystone International Growth Initial Class

TA BlackRock Global Allocation Initial Class

20

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

2. Summary of Significant Accounting Policies

The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable life separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.

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, 2020.

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.

Fair Value Measurements and Fair Value Hierarchy

The Accounting Standards Codification™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.

The Separate Account has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded at fair value on the Statements of Assets and Liabilities are categorized as follows:

Level 1. Unadjusted quoted prices for identical assets or liabilities in an active market.

Level 2. Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

a) Quoted prices for similar assets or liabilities in active markets

b) Quoted prices for identical or similar assets or liabilities in non-active markets

c) Inputs other than quoted market prices that are observable

d) Inputs that are derived principally from or corroborated by observable market data

through correlation or other means.

Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon published closing NAV per share and therefore are considered Level 1.

There were no transfers between Level 1, Level 2 and Level 3 during the year ended December 31, 2020.

21

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

3. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2020 were as follows:

Subaccount	Purchases		Sales
AB Balanced Wealth Strategy Class B Shares	$	643,681	$	514,649
Access VP High Yield		2,121,866		2,489,993
Fidelity® VIP Contrafund® Service Class 2		1,675,062		2,541,653
Fidelity® VIP Equity-Income Service Class 2		1,243,962		1,405,110
Fidelity® VIP Growth Opportunities Service Class 2		5,752,271		3,286,737
Fidelity® VIP Index 500 Service Class 2		19,932,367		19,150,777
Franklin Allocation Class 4 Shares		1,263,656		534,668
ProFund VP Asia 30		4,749,133		8,409,936
ProFund VP Basic Materials		1,156,245		1,128,990
ProFund VP Bull		2,274,837		2,653,391
ProFund VP Consumer Services		3,782,483		1,674,039
ProFund VP Emerging Markets		5,696,638		10,239,681
ProFund VP Europe 30		302,649		381,079
ProFund VP Falling U.S. Dollar		1,051,937		686,821
ProFund VP Financials		1,225,424		1,800,798
ProFund VP Government Money Market		40,295,991		33,374,007
ProFund VP International		1,833,821		1,679,032
ProFund VP Japan		745,755		897,004
ProFund VP Mid-Cap		3,884,455		1,654,688
ProFund VP NASDAQ-100		28,353,348		26,631,942
ProFund VP Oil & Gas		4,950,111		3,333,576
ProFund VP Pharmaceuticals		2,502,895		1,978,599
ProFund VP Precious Metals		6,703,453		5,573,173
ProFund VP Short Emerging Markets		4,058,161		3,839,275
ProFund VP Short International		1,309,871		1,095,950
ProFund VP Short NASDAQ-100		7,643,508		7,192,956
ProFund VP Short Small-Cap		3,908,627		3,394,488
ProFund VP Small-Cap		3,124,761		3,479,823
ProFund VP Small-Cap Value		2,779,553		3,167,554
ProFund VP Telecommunications		592,621		386,020
ProFund VP U.S. Government Plus		9,217,267		5,710,683
ProFund VP UltraNASDAQ-100		59,588,144		49,165,680
ProFund VP UltraSmall-Cap		6,643,367		6,539,988
ProFund VP Utilities		2,953,494		2,992,074
TA Aegon High Yield Bond Initial Class		5,088,776		7,659,985
TA Aegon Sustainable Equity Income Initial Class		12,020,152		9,306,793

22

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

3. Investments (continued)

Subaccount	Purchases		Sales
TA Aegon U.S. Government Securities Initial Class	$	14,092,743	$	9,573,853
TA BlackRock Global Real Estate Securities Initial Class		10,013,624		6,916,868
TA BlackRock Government Money Market Initial Class		26,063,458		26,294,961
TA BlackRock iShares Edge 40 Initial Class		435,721		721,208
TA BlackRock Tactical Allocation Initial Class		8,297,254		6,040,391
TA International Growth Initial Class		3,071,873		5,253,582
TA Janus Balanced Initial Class		4,065,138		4,038,831
TA Janus Mid-Cap Growth Initial Class		47,823,815		38,225,970
TA JPMorgan Asset Allocation - Conservative Initial Class		5,749,578		6,264,645
TA JPMorgan Asset Allocation - Growth Initial Class		73,563,593		64,372,063
TA JPMorgan Asset Allocation - Moderate Initial Class		13,637,126		14,292,881
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		60,953,136		58,317,332
TA JPMorgan Core Bond Initial Class		9,462,814		7,673,359
TA JPMorgan Enhanced Index Initial Class		6,668,459		4,766,246
TA JPMorgan International Moderate Growth Initial Class		1,301,578		1,603,813
TA JPMorgan Mid Cap Value Initial Class		290,237		423,296
TA JPMorgan Tactical Allocation Initial Class		4,882,955		5,555,603
TA Managed Risk - Balanced ETF Initial Class		541,505		803,683
TA Managed Risk - Growth ETF Initial Class		798,001		1,331,387
TA Morgan Stanley Capital Growth Initial Class		32,548,360		27,503,607
TA Morgan Stanley Global Allocation Initial Class		1,203,994		1,208,793
TA Multi-Managed Balanced Initial Class		11,669,824		14,001,828
TA PIMCO Tactical - Balanced Initial Class		1,733,634		1,753,913
TA PIMCO Tactical - Conservative Initial Class		3,357,710		2,742,928
TA PIMCO Tactical - Growth Initial Class		4,066,560		3,503,500
TA PIMCO Total Return Initial Class		17,041,346		16,215,509
TA QS Investors Active Asset Allocation - Conservative Initial Class		1,476,330		1,475,554
TA QS Investors Active Asset Allocation - Moderate Initial Class		530,189		723,182
TA QS Investors Active Asset Allocation - Moderate Growth Initial Class		5,467,363		6,091,195
TA Small/Mid Cap Value Initial Class		16,022,376		22,051,702
TA T. Rowe Price Small Cap Initial Class		21,504,360		18,136,218
TA WMC US Growth Initial Class		124,021,616		104,042,944

23

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

4. Change in Units

The change in units outstanding were as follows:

	Year Ended December 31, 2020								Year Ended December 31, 2019
Subaccount	Units Purchased		Units Redeemed     and Transferred     to/from			Net Increase     (Decrease)			Units Purchased		Units Redeemed     and Transferred     to/from			Net Increase     (Decrease)
AB Balanced Wealth Strategy Class B Shares		27,692		(26,655	)		1,037			23,056		(29,746	)		(6,690	)
Access VP High Yield		120,264		(147,466	)		(27,202	)		186,144		(175,584	)		10,560
Fidelity® VIP Contrafund® Service Class 2		48,343		(76,554	)		(28,211	)		35,698		(86,450	)		(50,752	)
Fidelity® VIP Equity-Income Service Class 2		26,677		(57,800	)		(31,123	)		32,371		(71,925	)		(39,554	)
Fidelity® VIP Growth Opportunities Service Class 2		109,733		(83,864	)		25,869			97,939		(70,413	)		27,526
Fidelity® VIP Index 500 Service Class 2		651,581		(604,798	)		46,783			566,836		(594,778	)		(27,942	)
Franklin Allocation Class 4 Shares		33,859		(24,834	)		9,025			20,233		(26,937	)		(6,704	)
ProFund VP Asia 30		376,008		(746,710	)		(370,702	)		846,172		(521,545	)		324,627
ProFund VP Basic Materials		79,670		(97,280	)		(17,610	)		106,309		(124,511	)		(18,202	)
ProFund VP Bull		91,297		(117,973	)		(26,676	)		143,103		(108,159	)		34,944
ProFund VP Consumer Services		63,427		(51,863	)		11,564			43,441		(57,198	)		(13,757	)
ProFund VP Emerging Markets		640,355		(1,165,644	)		(525,289	)		1,181,295		(828,078	)		353,217
ProFund VP Europe 30		28,489		(40,160	)		(11,671	)		197,949		(224,122	)		(26,173	)
ProFund VP Falling U.S. Dollar		160,031		(106,281	)		53,750			14,533		(22,692	)		(8,159	)
ProFund VP Financials		56,864		(112,926	)		(56,062	)		53,676		(89,434	)		(35,758	)
ProFund VP Government Money Market		4,130,338		(3,411,978	)		718,360			2,991,842		(3,781,840	)		(789,998	)
ProFund VP International		205,446		(209,442	)		(3,996	)		29,208		(53,607	)		(24,399	)
ProFund VP Japan		53,425		(59,856	)		(6,431	)		148,318		(157,313	)		(8,995	)
ProFund VP Mid-Cap		154,543		(92,587	)		61,956			232,232		(273,113	)		(40,881	)
ProFund VP NASDAQ-100		627,498		(618,498	)		9,000			578,411		(513,585	)		64,826
ProFund VP Oil & Gas		1,021,242		(718,224	)		303,018			492,672		(639,706	)		(147,034	)
ProFund VP Pharmaceuticals		114,430		(86,935	)		27,495			47,391		(86,842	)		(39,451	)
ProFund VP Precious Metals		1,249,997		(1,044,918	)		205,079			1,276,089		(1,028,417	)		247,672
ProFund VP Short Emerging Markets		913,779		(915,581	)		(1,802	)		178,551		(267,307	)		(88,756	)
ProFund VP Short International		302,917		(268,825	)		34,092			35,743		(36,887	)		(1,144	)
ProFund VP Short NASDAQ-100		6,893,263		(6,016,158	)		877,105			4,741,428		(4,382,253	)		359,175
ProFund VP Short Small-Cap		2,147,818		(1,973,758	)		174,060			824,755		(712,622	)		112,133

24

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2020								Year Ended December 31, 2019
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		154,088		(183,729	)		(29,641	)		139,231		(52,332	)		86,899
ProFund VP Small-Cap Value		134,497		(166,885	)		(32,388	)		126,590		(28,336	)		98,254
ProFund VP Telecommunications		43,748		(27,990	)		15,758			18,816		(22,495	)		(3,679	)
ProFund VP U.S. Government Plus		353,431		(242,677	)		110,754			275,239		(248,563	)		26,676
ProFund VP UltraNASDAQ-100		556,492		(570,604	)		(14,112	)		414,480		(488,477	)		(73,997	)
ProFund VP UltraSmall-Cap		310,379		(340,281	)		(29,902	)		185,695		(218,910	)		(33,215	)
ProFund VP Utilities		84,281		(148,633	)		(64,352	)		197,945		(174,392	)		23,553
TA Aegon High Yield Bond Initial Class		214,146		(367,768	)		(153,622	)		213,035		(199,843	)		13,192
TA Aegon Sustainable Equity Income Initial Class		196,268		(339,841	)		(143,573	)		503,053		(691,567	)		(188,514	)
TA Aegon U.S. Government Securities Initial Class		927,567		(622,779	)		304,788			323,260		(349,962	)		(26,702	)
TA BlackRock Global Real Estate Securities Initial Class		196,606		(281,810	)		(85,204	)		229,616		(249,658	)		(20,042	)
TA BlackRock Government Money Market Initial Class		1,960,728		(1,861,922	)		98,806			823,163		(1,172,341	)		(349,178	)
TA BlackRock iShares Edge 40 Initial Class		22,532		(41,271	)		(18,739	)		25,659		(30,975	)		(5,316	)
TA BlackRock Tactical Allocation Initial Class		301,057		(369,682	)		(68,625	)		196,664		(359,849	)		(163,185	)
TA International Growth Initial Class		159,230		(310,562	)		(151,332	)		405,819		(559,631	)		(153,812	)
TA Janus Balanced Initial Class		180,545		(211,576	)		(31,031	)		180,911		(162,316	)		18,595
TA Janus Mid-Cap Growth Initial Class		621,754		(946,324	)		(324,570	)		943,251		(1,439,605	)		(496,354	)
TA JPMorgan Asset Allocation - Conservative Initial Class		265,435		(335,885	)		(70,450	)		276,058		(337,959	)		(61,901	)
TA JPMorgan Asset Allocation - Growth Initial Class		2,333,626		(2,932,671	)		(599,045	)		2,859,418		(3,061,822	)		(202,404	)
TA JPMorgan Asset Allocation - Moderate Initial Class		596,601		(740,583	)		(143,982	)		869,678		(917,962	)		(48,284	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		2,313,348		(2,840,772	)		(527,424	)		3,119,548		(3,256,789	)		(137,241	)
TA JPMorgan Core Bond Initial Class		468,278		(355,190	)		113,088			338,295		(400,347	)		(62,052	)
TA JPMorgan Enhanced Index Initial Class		178,445		(152,466	)		25,979			86,939		(89,954	)		(3,015	)
TA JPMorgan International Moderate Growth Initial Class		76,928		(116,609	)		(39,681	)		100,039		(147,891	)		(47,852	)
TA JPMorgan Mid Cap Value Initial Class		513		(13,788	)		(13,275	)		2,864		(18,946	)		(16,082	)
TA JPMorgan Tactical Allocation Initial Class		170,685		(246,211	)		(75,526	)		538,374		(758,765	)		(220,391	)
TA Managed Risk - Balanced ETF Initial Class		28,623		(50,383	)		(21,760	)		100,909		(31,504	)		69,405

25

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2020								Year Ended December 31, 2019
Subaccount	Units Purchased		Units Redeemed     and Transferred     to/from			Net Increase     (Decrease)			Units Purchased		Units Redeemed     and Transferred     to/from			Net Increase     (Decrease)
TA Managed Risk - Growth ETF Initial Class		37,907		(80,595	)		(42,688	)		73,867		(59,405	)		14,462
TA Morgan Stanley Capital Growth Initial Class		450,785		(446,607	)		4,178			1,053,429		(391,556	)		661,873
TA Morgan Stanley Global Allocation Initial Class		51,993		(83,042	)		(31,049	)		61,188		(104,379	)		(43,191	)
TA Multi-Managed Balanced Initial Class		199,714		(455,625	)		(255,911	)		188,710		(443,033	)		(254,323	)
TA PIMCO Tactical - Balanced Initial Class		77,855		(112,227	)		(34,372	)		66,650		(103,378	)		(36,728	)
TA PIMCO Tactical - Conservative Initial Class		177,546		(187,028	)		(9,482	)		185,255		(219,175	)		(33,920	)
TA PIMCO Tactical - Growth Initial Class		186,325		(233,071	)		(46,746	)		160,091		(223,070	)		(62,979	)
TA PIMCO Total Return Initial Class		1,049,192		(1,024,278	)		24,914			1,282,839		(1,353,056	)		(70,217	)
TA QS Investors Active Asset Allocation - Conservative Initial Class		97,649		(107,309	)		(9,660	)		54,150		(67,049	)		(12,899	)
TA QS Investors Active Asset Allocation - Moderate Initial Class		32,937		(52,546	)		(19,609	)		36,374		(37,482	)		(1,108	)
TA QS Investors Active Asset Allocation - Moderate Growth Initial Class		333,286		(452,143	)		(118,857	)		467,026		(614,439	)		(147,413	)
TA Small/Mid Cap Value Initial Class		517,683		(758,638	)		(240,955	)		618,638		(785,100	)		(166,462	)
TA T. Rowe Price Small Cap Initial Class		570,686		(572,499	)		(1,813	)		441,775		(454,209	)		(12,434	)
TA WMC US Growth Initial Class		526,513		(2,217,992	)		(1,691,479	)		899,197		(2,354,899	)		(1,455,702	)

26

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2020								Year Ended December 31, 2019
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
AB Balanced Wealth Strategy Class B Shares	$	530,414	$	(504,318	)	$	26,096		$	411,457	$	(608,069	)	$	(196,612	)
Access VP High Yield		1,918,513		(2,477,676	)		(559,163	)		3,082,946		(3,049,014	)		33,932
Fidelity® VIP Contrafund® Service Class 2		1,576,083		(2,437,017	)		(860,934	)		994,027		(2,370,862	)		(1,376,835	)
Fidelity® VIP Equity-Income Service Class 2		640,711		(1,365,763	)		(725,052	)		740,210		(1,713,675	)		(973,465	)
Fidelity® VIP Growth Opportunities Service Class 2		4,815,571		(3,234,920	)		1,580,651			2,829,933		(2,072,107	)		757,826
Fidelity® VIP Index 500 Service Class 2		18,984,204		(18,954,355	)		29,849			15,603,761		(16,586,822	)		(983,061	)
Franklin Allocation Class 4 Shares		636,845		(525,796	)		111,049			419,857		(567,860	)		(148,003	)
ProFund VP Asia 30		4,252,042		(8,390,122	)		(4,138,080	)		8,797,606		(5,167,870	)		3,629,736
ProFund VP Basic Materials		963,912		(1,121,480	)		(157,568	)		1,251,838		(1,449,297	)		(197,459	)
ProFund VP Bull		2,070,184		(2,633,379	)		(563,195	)		3,126,946		(2,250,980	)		875,966
ProFund VP Consumer Services		2,175,269		(1,659,233	)		516,036			1,270,780		(1,720,427	)		(449,647	)
ProFund VP Emerging Markets		5,671,529		(10,215,556	)		(4,544,027	)		10,264,515		(6,649,104	)		3,615,411
ProFund VP Europe 30		285,158		(378,399	)		(93,241	)		2,176,858		(2,494,625	)		(317,767	)
ProFund VP Falling U.S. Dollar		1,051,692		(685,987	)		365,705			93,090		(144,690	)		(51,600	)
ProFund VP Financials		960,894		(1,787,354	)		(826,460	)		1,005,669		(1,481,477	)		(475,808	)
ProFund VP Government Money Market		40,332,283		(33,316,594	)		7,015,689			29,238,533		(36,872,039	)		(7,633,506	)
ProFund VP International		1,826,977		(1,671,445	)		155,532			300,867		(499,878	)		(199,011	)
ProFund VP Japan		745,815		(894,185	)		(148,370	)		2,442,333		(2,491,478	)		(49,145	)
ProFund VP Mid-Cap		2,815,099		(1,644,252	)		1,170,847			4,406,250		(5,138,613	)		(732,363	)
ProFund VP NASDAQ-100		26,512,377		(26,540,165	)		(27,788	)		18,963,942		(17,807,328	)		1,156,614
ProFund VP Oil & Gas		4,800,404		(3,320,720	)		1,479,684			3,738,224		(4,818,820	)		(1,080,596	)
ProFund VP Pharmaceuticals		2,515,252		(1,959,020	)		556,232			1,015,623		(1,810,081	)		(794,458	)
ProFund VP Precious Metals		6,712,725		(5,536,884	)		1,175,841			4,783,726		(3,804,551	)		979,175
ProFund VP Short Emerging Markets		4,056,808		(3,836,120	)		220,688			886,245		(1,112,655	)		(226,410	)
ProFund VP Short International		1,308,650		(1,094,073	)		214,577			160,718		(154,699	)		6,019
ProFund VP Short NASDAQ-100		7,641,029		(7,186,340	)		454,689			7,786,474		(6,705,937	)		1,080,537
ProFund VP Short Small-Cap		3,906,340		(3,391,138	)		515,202			1,407,767		(1,213,980	)		193,787

27

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

4. Change in Unit Dollars (continued)

	Year Ended December 31, 2020								Year Ended December 31, 2019
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
ProFund VP Small-Cap	$	3,044,975	$	(3,470,397	)	$	(425,422	)	$	2,692,784	$	(964,678	)	$	1,728,106
ProFund VP Small-Cap Value		2,590,589		(3,160,485	)		(569,896	)		2,606,007		(553,353	)		2,052,654
ProFund VP Telecommunications		587,162		(382,797	)		204,365			265,550		(313,840	)		(48,290	)
ProFund VP U.S. Government Plus		8,578,307		(5,685,920	)		2,892,387			4,760,819		(4,250,221	)		510,598
ProFund VP UltraNASDAQ-100		48,446,905		(49,037,784	)		(590,879	)		24,174,913		(27,647,137	)		(3,472,224	)
ProFund VP UltraSmall-Cap		5,792,821		(6,522,430	)		(729,609	)		4,600,387		(5,254,312	)		(653,925	)
ProFund VP Utilities		1,780,035		(2,970,574	)		(1,190,539	)		4,138,488		(3,479,227	)		659,261
TA Aegon High Yield Bond Initial Class		4,198,719		(7,593,818	)		(3,395,099	)		3,941,509		(4,399,349	)		(457,840	)
TA Aegon Sustainable Equity Income Initial Class		3,817,827		(9,027,675	)		(5,209,848	)		11,179,726		(18,831,730	)		(7,652,004	)
TA Aegon U.S. Government Securities Initial Class		13,921,008		(9,527,170	)		4,393,838			4,285,756		(4,765,229	)		(479,473	)
TA BlackRock Global Real Estate Securities Initial Class		3,242,738		(6,755,637	)		(3,512,899	)		4,102,242		(6,493,407	)		(2,391,165	)
TA BlackRock Government Money Market Initial Class		26,067,903		(26,175,174	)		(107,271	)		10,152,451		(16,789,451	)		(6,637,000	)
TA BlackRock iShares Edge 40 Initial Class		360,680		(710,786	)		(350,106	)		398,057		(518,441	)		(120,384	)
TA BlackRock Tactical Allocation Initial Class		4,943,301		(5,937,883	)		(994,582	)		3,026,916		(5,390,742	)		(2,363,826	)
TA International Growth Initial Class		2,363,322		(5,109,640	)		(2,746,318	)		5,987,715		(8,768,157	)		(2,780,442	)
TA Janus Balanced Initial Class		3,374,413		(3,990,532	)		(616,119	)		3,102,834		(2,850,129	)		252,705
TA Janus Mid-Cap Growth Initial Class		16,814,390		(35,876,446	)		(19,062,056	)		21,815,894		(47,736,576	)		(25,920,682	)
TA JPMorgan Asset Allocation - Conservative Initial Class		4,627,512		(6,157,200	)		(1,529,688	)		4,387,448		(5,930,053	)		(1,542,605	)
TA JPMorgan Asset Allocation - Growth Initial Class		44,859,217		(63,155,914	)		(18,296,697	)		50,829,650		(65,822,000	)		(14,992,350	)
TA JPMorgan Asset Allocation - Moderate Initial Class		10,111,367		(14,033,498	)		(3,922,131	)		13,885,434		(17,756,363	)		(3,870,929	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		40,659,916		(57,217,754	)		(16,557,838	)		51,346,695		(66,322,079	)		(14,975,384	)
TA JPMorgan Core Bond Initial Class		8,078,684		(7,504,342	)		574,342			5,676,381		(8,723,998	)		(3,047,617	)
TA JPMorgan Enhanced Index Initial Class		5,585,395		(4,725,966	)		859,429			2,260,024		(2,597,905	)		(337,881	)
TA JPMorgan International Moderate Growth Initial Class		1,046,110		(1,561,785	)		(515,675	)		1,295,544		(1,894,057	)		(598,513	)
TA JPMorgan Mid Cap Value Initial Class		10,736		(383,742	)		(373,006	)		67,837		(598,345	)		(530,508	)
TA JPMorgan Tactical Allocation Initial Class		2,915,109		(5,353,335	)		(2,438,226	)		8,737,476		(14,091,628	)		(5,354,152	)

28

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

4. Change in Unit Dollars (continued)

	Year Ended December 31, 2020								Year Ended December 31, 2019
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
TA Managed Risk - Balanced ETF Initial Class	$	453,102	$	(789,793	)	$	(336,691	)	$	1,520,703	$	(475,048	)	$	1,045,655
TA Managed Risk - Growth ETF Initial Class		637,868		(1,318,616	)		(680,748	)		1,171,256		(947,827	)		223,429
TA Morgan Stanley Capital Growth Initial Class		26,580,284		(26,952,534	)		(372,250	)		40,001,471		(16,491,956	)		23,509,515
TA Morgan Stanley Global Allocation Initial Class		776,233		(1,190,526	)		(414,293	)		842,279		(1,418,898	)		(576,619	)
TA Multi-Managed Balanced Initial Class		4,899,161		(13,200,444	)		(8,301,283	)		4,173,929		(12,137,444	)		(7,963,515	)
TA PIMCO Tactical - Balanced Initial Class		1,177,717		(1,733,340	)		(555,623	)		943,063		(1,478,732	)		(535,669	)
TA PIMCO Tactical - Conservative Initial Class		2,513,692		(2,706,805	)		(193,113	)		2,387,511		(2,950,282	)		(562,771	)
TA PIMCO Tactical - Growth Initial Class		2,631,848		(3,464,447	)		(832,599	)		2,097,876		(3,077,338	)		(979,462	)
TA PIMCO Total Return Initial Class		15,852,673		(16,117,752	)		(265,079	)		18,521,674		(19,999,981	)		(1,478,307	)
TA QS Investors Active Asset Allocation - Conservative Initial Class		1,332,634		(1,459,370	)		(126,736	)		718,592		(877,970	)		(159,378	)
TA QS Investors Active Asset Allocation - Moderate Initial Class		447,277		(713,592	)		(266,315	)		492,275		(498,553	)		(6,278	)
TA QS Investors Active Asset Allocation - Moderate Growth Initial Class		4,544,154		(6,004,913	)		(1,460,759	)		6,395,569		(8,362,899	)		(1,967,330	)
TA Small/Mid Cap Value Initial Class		10,668,925		(21,553,678	)		(10,884,753	)		13,776,478		(24,667,047	)		(10,890,569	)
TA T. Rowe Price Small Cap Initial Class		17,736,867		(17,912,978	)		(176,111	)		12,994,054		(14,845,785	)		(1,851,731	)
TA WMC US Growth Initial Class		18,955,106		(94,699,338	)		(75,744,232	)		26,368,163		(82,660,875	)		(56,292,712	)

29

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

5. 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.

		At December 31									For the Year Ended December 31
Subaccount		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
AB Balanced Wealth Strategy Class B Shares
	12/31/2020		113,729	$	27.97	to	$	23.51	$	2,646,256		2.11	%		0.00	%	to	1.50	%		9.25	%	to	7.64	%
	12/31/2019		112,692		25.60	to		21.84		2,409,940		2.32			0.00		to	1.50			18.20		to	16.46
	12/31/2018		119,382		21.66	to		18.76		2,234,709		1.69			0.00		to	1.50			(6.41	)	to	(7.80	)
	12/31/2017		129,250		23.14	to		20.34		2,657,289		1.86			0.00		to	1.50			15.62		to	13.92
	12/31/2016		140,901		20.02	to		17.86		2,528,013		1.83			0.00		to	1.50			4.44		to	2.90
Access VP High Yield
	12/31/2020		175,745		22.89	to		18.72		3,202,897		6.43			0.00		to	1.50			(0.06	)	to	(1.54	)
	12/31/2019		202,947		22.91	to		19.01		3,781,777		4.93			0.00		to	1.50			12.43		to	10.77
	12/31/2018		192,387		20.38	to		17.16		3,304,109		2.63			0.00		to	1.50			(0.61	)	to	(2.09	)
	12/31/2017		181,089		20.50	to		17.53		3,242,904		3.74			0.00		to	1.50			4.79		to	3.25
	12/31/2016		201,970		19.56	to		16.98		3,508,714		3.10			0.00		to	1.50			9.00		to	7.39
Fidelity® VIP Contrafund® Service Class 2
	12/31/2020		792,862		32.18	to		43.95		30,292,014		0.08			0.30		to	0.90			29.84		to	29.07
	12/31/2019		821,073		24.79	to		34.05		24,221,196		0.22			0.30		to	0.90			30.88		to	30.10
	12/31/2018		871,825		18.94	to		26.17		19,754,892		0.43			0.30		to	0.90			(6.92	)	to	(7.48	)
	12/31/2017		910,354		20.35	to		28.29		22,638,242		0.77			0.30		to	0.90			21.22		to	20.51
	12/31/2016		941,893		16.78	to		23.47		20,270,933		0.62			0.30		to	0.90			7.41		to	6.77
Fidelity® VIP Equity-Income Service Class 2
	12/31/2020		403,834		23.72	to		29.31		10,779,441		1.64			0.30		to	0.90			6.12		to	5.49
	12/31/2019		434,957		22.35	to		27.79		10,974,164		1.82			0.30		to	0.90			26.73		to	25.97
	12/31/2018		474,511		17.64	to		22.06		9,560,346		2.04			0.30		to	0.90			(8.81	)	to	(9.36	)
	12/31/2017		514,492		19.34	to		24.34		11,550,024		1.48			0.30		to	0.90			12.31		to	11.65
	12/31/2016		529,514		17.22	to		21.80		11,037,774		2.18			0.30		to	0.90			17.36		to	16.66
Fidelity® VIP Growth Opportunities Service Class 2
	12/31/2020		440,051		65.11	to		52.41		25,301,018		-			0.30		to	0.90			67.73		to	66.73
	12/31/2019		414,182		38.82	to		31.43		14,179,766		-			0.30		to	0.90			40.07		to	39.24
	12/31/2018		386,656		27.71	to		22.57		9,532,742		0.09			0.30		to	0.90			11.87		to	11.20
	12/31/2017		398,985		24.77	to		20.30		8,736,075		0.11			0.30		to	0.90			33.78		to	32.98
	12/31/2016		385,655		18.52	to		15.27		6,152,567		0.05			0.30		to	0.90			(0.24	)	to	(0.83	)
Fidelity® VIP Index 500 Service Class 2
	12/31/2020		1,897,267		35.07	to		30.88		68,174,561		1.60			0.00		to	1.50			17.95		to	16.20
	12/31/2019		1,850,484		29.74	to		26.58		58,103,481		1.78			0.00		to	1.50			31.02		to	29.08
	12/31/2018		1,878,426		22.70	to		20.59		45,890,930		1.62			0.00		to	1.50			(4.73	)	to	(6.15	)
	12/31/2017		1,804,677		23.82	to		21.94		47,478,979		1.61			0.00		to	1.50			21.41		to	19.62
	12/31/2016		1,575,244		19.62	to		18.34		35,119,328		1.40			0.00		to	1.50			11.58		to	9.94
Franklin Allocation Class 4 Shares
	12/31/2020		111,828		29.29	to		24.62		2,590,133		1.36			0.00		to	1.50			11.75		to	10.10
	12/31/2019		102,803		26.21	to		22.36		2,218,133		3.34			0.00		to	1.50			19.56		to	17.79
	12/31/2018		109,507		21.93	to		18.99		2,002,167		2.79			0.00		to	1.50			(9.58	)	to	(10.92	)
	12/31/2017		115,582		24.25	to		21.31		2,494,958		2.58			0.00		to	1.50			11.78		to	10.13
	12/31/2016		125,006		21.69	to		19.35		2,439,233		3.67			0.00		to	1.50			12.92		to	11.26
ProFund VP Asia 30
	12/31/2020		384,501		15.73	to		15.28		5,684,247		0.94			0.00		to	1.50			35.55		to	33.55
	12/31/2019		755,203		11.60	to		11.44		8,314,602		0.19			0.00		to	1.50			26.31		to	24.44
	12/31/2018		430,576		9.19	to		9.20		3,704,275		0.40			0.00		to	1.50			(18.59	)	to	(19.81	)
	12/31/2017		820,573		11.28	to		11.47		8,723,348		-			0.00		to	1.50			32.87		to	30.92
	12/31/2016		560,320		8.49	to		8.76		4,476,330		1.03			0.00		to	1.50			0.64		to	(0.84	)

30

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

5. Financial Highlights (continued)

		At December 31									For the Year Ended December 31
Subaccount		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
ProFund VP Basic Materials
	12/31/2020		202,508	$	15.43	to	$	13.01	$	2,916,123		0.64	%		0.00	%	to	1.50	%		16.49	%	to	14.76	%
	12/31/2019		220,118		13.25	to		11.34		2,725,778		0.34			0.00		to	1.50			17.72		to	15.98
	12/31/2018		238,320		11.25	to		9.77		2,505,171		0.39			0.00		to	1.50			(17.66	)	to	(18.88	)
	12/31/2017		353,517		13.67	to		12.05		4,507,974		0.38			0.00		to	1.50			22.96		to	21.15
	12/31/2016		342,923		11.12	to		9.95		3,568,051		0.40			0.00		to	1.50			18.49		to	16.74
ProFund VP Bull
	12/31/2020		175,403		28.05	to		25.26		4,864,234		0.09			0.00		to	1.50			16.03		to	14.32
	12/31/2019		202,079		24.18	to		22.09		4,855,492		0.32			0.00		to	1.50			28.88		to	26.98
	12/31/2018		167,135		18.76	to		17.40		3,134,335		-			0.00		to	1.50			(6.15	)	to	(7.54	)
	12/31/2017		231,602		19.99	to		18.82		4,665,839		-			0.00		to	1.50			19.34		to	17.58
	12/31/2016		331,447		16.75	to		16.01		5,644,107		-			0.00		to	1.50			9.66		to	8.04
ProFund VP Consumer Services
	12/31/2020		156,855		47.55	to		44.05		6,421,577		-			0.00		to	1.50			28.34		to	26.45
	12/31/2019		145,291		37.05	to		34.84		4,685,493		-			0.00		to	1.50			24.64		to	22.80
	12/31/2018		159,048		29.73	to		28.37		4,177,142		-			0.00		to	1.50			0.62		to	(0.88	)
	12/31/2017		149,083		29.55	to		28.62		3,954,853		-			0.00		to	1.50			18.37		to	16.62
	12/31/2016		163,438		24.96	to		24.54		3,722,987		-			0.00		to	1.50			4.18		to	2.65
ProFund VP Emerging Markets
	12/31/2020		646,787		11.39	to		10.59		7,586,888		0.60			0.00		to	1.50			26.72		to	24.85
	12/31/2019		1,172,076		8.98	to		8.49		10,543,054		0.41			0.00		to	1.50			24.23		to	22.40
	12/31/2018		818,859		7.23	to		6.93		5,692,807		0.22			0.00		to	1.50			(15.27	)	to	(16.53	)
	12/31/2017		1,217,400		8.54	to		8.31		10,163,614		0.07			0.00		to	1.50			33.26		to	31.29
	12/31/2016		717,341		6.41	to		6.33		4,420,456		0.22			0.00		to	1.50			11.01		to	9.37
ProFund VP Europe 30
	12/31/2020		74,499		10.25	to		8.83		743,173		2.67			0.00		to	1.50			(9.23	)	to	(10.57	)
	12/31/2019		86,170		11.29	to		9.87		938,303		2.37			0.00		to	1.50			17.79		to	16.05
	12/31/2018		112,343		9.58	to		8.51		1,043,087		2.52			0.00		to	1.50			(14.13	)	to	(15.41	)
	12/31/2017		145,661		11.16	to		10.06		1,554,182		2.22			0.00		to	1.50			19.71		to	17.95
	12/31/2016		123,591		9.32	to		8.53		1,090,839		3.01			0.00		to	1.50			7.81		to	6.22
ProFund VP Falling U.S. Dollar
	12/31/2020		85,122		6.71	to		5.46		571,233		0.32			0.00		to	1.50			4.80		to	3.26
	12/31/2019		31,372		6.40	to		5.29		192,195		0.05			0.00		to	1.50			(2.34	)	to	(3.78	)
	12/31/2018		39,531		6.55	to		5.50		249,306		-			0.00		to	1.50			(6.31	)	to	(7.70	)
	12/31/2017		39,617		6.99	to		5.96		269,359		-			0.00		to	1.50			8.46		to	6.86
	12/31/2016		44,786		6.45	to		5.58		275,533		-			0.00		to	1.50			(5.86	)	to	(7.25	)
ProFund VP Financials
	12/31/2020		203,241		16.83	to		17.93		3,629,255		0.65			0.00		to	1.50			(1.77	)	to	(3.22	)
	12/31/2019		259,303		17.14	to		18.52		4,716,020		0.51			0.00		to	1.50			30.27		to	28.35
	12/31/2018		295,061		13.15	to		14.43		4,069,052		0.38			0.00		to	1.50			(10.43	)	to	(11.76	)
	12/31/2017		367,605		14.69	to		16.35		5,425,492		0.34			0.00		to	1.50			18.19		to	16.45
	12/31/2016		338,073		12.43	to		14.04		4,108,516		0.34			0.00		to	1.50			15.32		to	13.62
ProFund VP Government Money Market
	12/31/2020		1,896,770		10.69	to		8.44		18,415,872		0.04			0.00		to	1.50			0.04		to	(1.44	)
	12/31/2019		1,178,410		10.68	to		8.56		11,493,857		0.78			0.00		to	1.50			0.77		to	(0.72	)
	12/31/2018		1,968,408		10.60	to		8.62		19,100,813		0.42			0.00		to	1.50			0.42		to	(1.07	)
	12/31/2017		1,004,665		10.56	to		8.71		9,769,539		0.02			0.00		to	1.50			0.02		to	(1.45	)
	12/31/2016		1,058,271		10.55	to		8.84		10,369,020		0.02			0.00		to	1.50			0.02		to	(1.45	)
ProFund VP International
	12/31/2020		230,505		10.86	to		9.73		2,698,233		0.54			0.00		to	1.50			4.90		to	3.35
	12/31/2019		234,501		10.36	to		9.42		2,314,126		0.27			0.00		to	1.50			19.27		to	17.51
	12/31/2018		258,900		8.68	to		8.01		2,137,619		-			0.00		to	1.50			(15.76	)	to	(17.01	)
	12/31/2017		406,411		10.31	to		9.66		4,191,633		-			0.00		to	1.50			21.80		to	20.00
	12/31/2016		144,517		8.46	to		8.05		1,166,852		-			0.00		to	1.50			(0.93	)	to	(2.39	)

31

Transamerica Life Insurance Company

WRL Series Life Account

Notes Financial Statements

December 31, 2020

5. Financial Highlights (continued)

		At December 31									For the Year Ended December 31
Subaccount		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
ProFund VP Japan
	12/31/2020		48,718	$	16.00	to	$	13.72	$	792,777		0.26	%		0.00	%	to	1.50	%		15.93	%	to	14.22	%
	12/31/2019		55,149		13.80	to		12.01		859,504		0.11			0.00		to	1.50			20.00		to	18.22
	12/31/2018		64,144		11.50	to		10.16		766,064		-			0.00		to	1.50			(11.63	)	to	(12.95	)
	12/31/2017		68,842		13.02	to		11.67		926,938		-			0.00		to	1.50			18.45		to	16.71
	12/31/2016		103,751		10.99	to		10.00		1,119,515		-			0.00		to	1.50			0.41		to	(1.07	)
ProFund VP Mid-Cap
	12/31/2020		222,065		25.53	to		22.16		4,946,836		1.03			0.00		to	1.50			10.76		to	9.12
	12/31/2019		160,109		23.05	to		20.30		3,275,313		0.17			0.00		to	1.50			23.53		to	21.70
	12/31/2018		200,990		18.66	to		16.68		3,349,100		-			0.00		to	1.50			(12.86	)	to	(14.16	)
	12/31/2017		205,685		21.42	to		19.43		3,998,852		-			0.00		to	1.50			13.43		to	11.76
	12/31/2016		391,109		18.88	to		17.39		6,758,644		-			0.00		to	1.50			18.19		to	16.44
ProFund VP NASDAQ-100
	12/31/2020		544,387		65.74	to		52.82		31,067,075		-			0.00		to	1.50			45.57		to	43.42
	12/31/2019		535,387		45.16	to		36.83		21,186,505		-			0.00		to	1.50			36.70		to	34.68
	12/31/2018		470,561		33.04	to		27.35		14,347,955		-			0.00		to	1.50			(1.87	)	to	(3.33	)
	12/31/2017		440,866		33.67	to		28.29		14,214,808		-			0.00		to	1.50			30.37		to	28.45
	12/31/2016		397,360		25.82	to		22.02		10,123,687		-			0.00		to	1.50			5.26		to	3.70
ProFund VP Oil & Gas
	12/31/2020		1,024,721		5.29	to		4.07		5,035,078		2.67			0.00		to	1.50			(34.46	)	to	(35.43	)
	12/31/2019		721,703		8.08	to		6.30		5,415,783		1.42			0.00		to	1.50			8.51		to	6.91
	12/31/2018		868,737		7.44	to		5.89		6,013,987		1.72			0.00		to	1.50			(20.22	)	to	(21.41	)
	12/31/2017		928,891		9.33	to		7.49		8,081,643		1.27			0.00		to	1.50			(3.17	)	to	(4.60	)
	12/31/2016		960,671		9.64	to		7.85		8,659,629		1.41			0.00		to	1.50			24.18		to	22.35
ProFund VP Pharmaceuticals
	12/31/2020		247,778		27.81	to		24.62		6,322,174		0.12			0.00		to	1.50			12.51		to	10.85
	12/31/2019		220,283		24.71	to		22.21		5,017,336		0.85			0.00		to	1.50			14.04		to	12.36
	12/31/2018		259,734		21.67	to		19.77		5,199,084		1.07			0.00		to	1.50			(6.20	)	to	(7.59	)
	12/31/2017		279,193		23.10	to		21.39		5,994,460		0.95			0.00		to	1.50			10.36		to	8.73
	12/31/2016		345,205		20.94	to		19.67		6,749,993		0.94			0.00		to	1.50			(3.73	)	to	(5.15	)
ProFund VP Precious Metals
	12/31/2020		1,925,848		6.05	to		5.40		10,748,618		0.25			0.00		to	1.50			24.10		to	22.27
	12/31/2019		1,720,769		4.88	to		4.42		7,763,794		0.03			0.00		to	1.50			45.98		to	43.82
	12/31/2018		1,473,097		3.34	to		3.07		4,574,070		-			0.00		to	1.50			(13.47	)	to	(14.76	)
	12/31/2017		1,507,392		3.86	to		3.61		5,439,646		-			0.00		to	1.50			5.28		to	3.73
	12/31/2016		1,777,677		3.67	to		3.48		6,099,905		-			0.00		to	1.50			55.81		to	53.52
ProFund VP Short Emerging Markets
	12/31/2020		93,554		2.11	to		1.63		236,037		0.44			0.00		to	1.50			(31.76	)	to	(32.77	)
	12/31/2019		95,356		3.09	to		2.42		352,353		0.45			0.00		to	1.50			(20.99	)	to	(22.16	)
	12/31/2018		184,112		3.92	to		3.11		744,822		-			0.00		to	1.50			12.59		to	10.91
	12/31/2017		80,509		3.48	to		2.81		288,783		-			0.00		to	1.50			(27.84	)	to	(28.91	)
	12/31/2016		186,560		4.82	to		3.95		947,222		-			0.00		to	1.50			(16.24	)	to	(17.48	)
ProFund VP Short International
	12/31/2020		116,781		2.88	to		2.24		353,854		0.51			0.00		to	1.50			(16.94	)	to	(18.17	)
	12/31/2019		82,689		3.47	to		2.73		293,102		0.52			0.00		to	1.50			(17.42	)	to	(18.64	)
	12/31/2018		83,833		4.20	to		3.36		351,032		-			0.00		to	1.50			15.47		to	13.76
	12/31/2017		79,108		3.63	to		2.95		278,713		-			0.00		to	1.50			(20.64	)	to	(21.81	)
	12/31/2016		128,281		4.58	to		3.78		560,218		-			0.00		to	1.50			(5.90	)	to	(7.28	)
ProFund VP Short NASDAQ-100
	12/31/2020		3,126,218		0.58	to		0.49		2,839,671		0.24			0.00		to	1.50			(42.77	)	to	(43.62	)
	12/31/2019		2,249,113		1.01	to		0.87		3,618,259		0.07			0.00		to	1.50			(28.06	)	to	(29.12	)
	12/31/2018		1,889,938		1.40	to		1.23		2,986,569		-			0.00		to	1.50			(2.89	)	to	(4.33	)
	12/31/2017		590,697		1.44	to		1.29		870,919		-			0.00		to	1.50			(25.25	)	to	(26.35	)
	12/31/2016		596,809		1.93	to		1.75		1,126,767		-			0.00		to	1.50			(10.06	)	to	(11.39	)

32

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

5. Financial Highlights (continued)

		At December 31									For the Year Ended December 31
Subaccount		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
ProFund VP Short Small-Cap
	12/31/2020		500,342	$	1.12	to	$	0.81	$	548,617		0.57	%		0.00	%	to	1.50	%		(31.96	)  %	to	(32.97	)  %
	12/31/2019		326,282		1.64	to		1.20		513,284		0.10			0.00		to	1.50			(20.78	)	to	(21.96	)
	12/31/2018		214,149		2.07	to		1.54		426,579		-			0.00		to	1.50			10.39		to	8.75
	12/31/2017		390,362		1.88	to		1.42		667,558		-			0.00		to	1.50			(14.20	)	to	(15.47	)
	12/31/2016		500,897		2.19	to		1.68		1,051,128		-			0.00		to	1.50			(21.60	)	to	(22.75	)
ProFund VP Small-Cap
	12/31/2020		193,508		24.63	to		23.26		4,480,052		0.05			0.00		to	1.50			17.06		to	15.33
	12/31/2019		223,149		21.04	to		20.17		4,438,418		-			0.00		to	1.50			23.60		to	21.78
	12/31/2018		136,250		17.02	to		16.56		2,243,155		-			0.00		to	1.50			(12.89	)	to	(14.19	)
	12/31/2017		194,574		19.54	to		19.30		3,732,484		-			0.00		to	1.50			12.43		to	10.77
	12/31/2016		437,377		17.38	to		17.43		7,507,148		-			0.00		to	1.50			19.68		to	17.92
ProFund VP Small-Cap Value
	12/31/2020		160,330		23.90	to		21.64		3,392,669		0.02			0.00		to	1.50			1.06		to	(0.43	)
	12/31/2019		192,718		23.65	to		21.73		4,055,740		-			0.00		to	1.50			22.56		to	20.75
	12/31/2018		94,464		19.29	to		18.00		1,648,295		-			0.00		to	1.50			(14.21	)	to	(15.49	)
	12/31/2017		166,430		22.49	to		21.29		3,418,360		0.01			0.00		to	1.50			9.71		to	8.09
	12/31/2016		386,675		20.50	to		19.70		7,280,442		-			0.00		to	1.50			28.77		to	26.88
ProFund VP Telecommunications
	12/31/2020		65,367		15.70	to		13.87		967,161		0.95			0.00		to	1.50			3.15		to	1.63
	12/31/2019		49,609		15.23	to		13.65		714,412		3.24			0.00		to	1.50			14.77		to	13.07
	12/31/2018		53,288		13.27	to		12.07		668,160		5.55			0.00		to	1.50			(15.10	)	to	(16.37	)
	12/31/2017		72,686		15.63	to		14.44		1,069,305		4.01			0.00		to	1.50			(2.12	)	to	(3.57	)
	12/31/2016		168,362		15.97	to		14.97		2,521,360		1.86			0.00		to	1.50			21.65		to	19.86
ProFund VP U.S. Government Plus
	12/31/2020		340,584		24.92	to		20.49		7,661,538		0.03			0.00		to	1.50			20.69		to	18.91
	12/31/2019		229,830		20.65	to		17.23		4,294,581		0.83			0.00		to	1.50			18.22		to	16.47
	12/31/2018		203,154		17.46	to		14.80		3,231,995		0.94			0.00		to	1.50			(5.42	)	to	(6.83	)
	12/31/2017		216,837		18.46	to		15.88		3,673,437		0.43			0.00		to	1.50			9.49		to	7.87
	12/31/2016		394,826		16.86	to		14.72		6,160,130		-			0.00		to	1.50			(0.31	)	to	(1.78	)
ProFund VP UltraNASDAQ-100
	12/31/2020		473,658		140.93	to		126.45		64,613,684		-			-		to	1.50			86.30		to	83.55
	12/31/2019		487,770		75.65	to		68.89		35,807,599		-			-		to	1.50			79.13		to	77.01
	12/31/2018		561,767		42.13	to		38.92		23,124,940		-			0.30		to	1.50			(9.90	)	to	(10.98	)
	12/31/2017		536,454		46.76	to		43.72		24,476,044		-			0.30		to	1.50			67.83		to	65.85
	12/31/2016		445,062		27.86	to		26.36		12,124,081		-			0.30		to	1.50			8.30		to	7.02
ProFund VP UltraSmall-Cap
	12/31/2020		255,139		33.16	to		31.70		8,336,950		0.13			0.00		to	1.50			16.39		to	14.67
	12/31/2019		285,041		28.49	to		27.65		7,932,380		-			0.00		to	1.50			47.33		to	45.15
	12/31/2018		318,256		19.34	to		19.05		5,975,141		-			0.00		to	1.50			(26.95	)	to	(28.04	)
	12/31/2017		334,026		26.47	to		26.47		8,487,733		-			0.00		to	1.50			25.20		to	23.35
	12/31/2016		374,082		21.14	to		21.46		7,577,278		-			0.00		to	1.50			39.59		to	37.53
ProFund VP Utilities
	12/31/2020		227,355		21.83	to		17.40		4,780,991		1.55			0.00		to	1.50			(2.40	)	to	(3.84	)
	12/31/2019		291,707		22.36	to		18.10		6,306,424		1.55			0.00		to	1.50			22.88		to	21.06
	12/31/2018		268,154		18.20	to		14.95		4,679,004		1.99			0.00		to	1.50			2.89		to	1.36
	12/31/2017		258,882		17.69	to		14.75		4,365,893		2.03			0.00		to	1.50			10.64		to	9.01
	12/31/2016		397,813		15.99	to		13.53		6,006,825		1.62			0.00		to	1.50			15.07		to	13.38
TA Aegon High Yield Bond Initial Class
	12/31/2020		674,049		24.60	to		19.89		15,055,821		6.23			0.00		to	1.50			5.04		to	3.49
	12/31/2019		827,671		23.42	to		19.22		18,060,264		6.30			0.00		to	1.50			14.21		to	12.53
	12/31/2018		814,479		20.51	to		17.08		16,374,808		6.03			0.00		to	1.50			(2.35	)	to	(3.80	)
	12/31/2017		908,539		21.00	to		17.76		19,145,546		5.93			0.00		to	1.50			7.44		to	5.86
	12/31/2016		922,333		19.55	to		16.77		18,909,800		5.86			0.00		to	1.50			15.34		to	13.64

33

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

5. Financial Highlights (continued)

		At December 31									For the Year Ended December 31
Subaccount		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
TA Aegon Sustainable Equity Income Initial Class
	12/31/2020		1,982,242	$	19.80	to	$	17.28	$	57,427,556		3.02	%		0.00	%	to	1.50	%		(7.35	)  %	to	(8.72	)  %
	12/31/2019		2,125,815		21.38	to		18.94		68,676,965		2.40			0.00		to	1.50			23.91		to	22.08
	12/31/2018		2,314,329		17.25	to		15.51		62,532,917		2.14			0.00		to	1.50			(11.50	)	to	(12.82	)
	12/31/2017		2,270,293		19.49	to		17.79		74,360,907		2.32			0.00		to	1.50			16.43		to	14.71
	12/31/2016		2,280,104		16.74	to		15.51		68,871,227		2.12			0.00		to	1.50			14.91		to	13.22
TA Aegon U.S. Government Securities Initial Class
	12/31/2020		755,102		17.36	to		13.27		11,544,548		1.62			0.00		to	1.50			8.97		to	7.36
	12/31/2019		450,314		15.93	to		12.36		6,373,858		1.89			0.00		to	1.50			6.60		to	5.03
	12/31/2018		477,016		14.95	to		11.77		6,445,842		2.91			0.00		to	1.50			0.26		to	(1.23	)
	12/31/2017		622,834		14.91	to		11.92		8,651,009		3.74			0.00		to	1.50			2.66		to	1.14
	12/31/2016		582,207		14.52	to		11.78		8,268,214		0.66			0.00		to	1.50			0.30		to	(1.18	)
TA BlackRock Global Real Estate Securities Initial Class
	12/31/2020		1,544,313		15.59	to		14.91		36,790,442		12.31			0.00		to	1.50			(0.31	)	to	(1.79	)
	12/31/2019		1,629,517		15.64	to		15.18		41,010,845		0.90			0.00		to	1.50			25.19		to	23.34
	12/31/2018		1,649,559		12.49	to		12.31		35,023,934		8.62			0.00		to	1.50			(10.09	)	to	(11.43	)
	12/31/2017		1,719,191		13.89	to		13.90		43,179,257		3.64			0.00		to	1.50			11.32		to	9.68
	12/31/2016		1,748,145		12.48	to		12.67		43,864,350		1.75			0.00		to	1.50			0.62		to	(0.86	)
TA BlackRock Government Money Market Initial Class
	12/31/2020		2,331,862		11.30	to		8.74		29,986,068		0.27			0.00		to	1.50			0.29		to	(1.19	)
	12/31/2019		2,233,056		11.27	to		8.85		30,217,624		1.96			0.00		to	1.50			1.97		to	0.47
	12/31/2018		2,582,234		11.05	to		8.81		36,454,670		1.82			0.00		to	1.50			1.81		to	0.29
	12/31/2017		2,103,005		10.86	to		8.78		28,500,890		0.01			0.00		to	1.50			0.01		to	(1.47	)
	12/31/2016		2,421,818		10.86	to		8.91		35,815,432		0.01			0.00		to	1.50			0.01		to	(1.47	)
TA BlackRock iShares Edge 40 Initial Class
	12/31/2020		146,727		18.34	to		13.76		2,746,773		2.37			0.00		to	1.50			9.65		to	8.03
	12/31/2019		165,466		16.73	to		12.74		2,874,315		2.23			0.00		to	1.50			15.31		to	13.60
	12/31/2018		170,782		14.51	to		11.21		2,620,516		1.91			0.00		to	1.50			(4.14	)	to	(5.56	)
	12/31/2017		182,008		15.13	to		11.87		3,013,996		1.75			0.00		to	1.50			9.74		to	8.13
	12/31/2016		197,400		13.79	to		10.98		3,092,227		1.47			0.00		to	1.50			2.22		to	0.72
TA BlackRock Tactical Allocation Initial Class
	12/31/2020		1,527,504		19.04	to		16.65		27,557,366		3.58			0.00		to	1.50			13.40		to	11.73
	12/31/2019		1,596,129		16.79	to		14.90		25,483,831		4.10			0.00		to	1.50			17.43		to	15.69
	12/31/2018		1,759,314		14.30	to		12.88		24,034,351		2.02			0.00		to	1.50			(4.21	)	to	(5.64	)
	12/31/2017		1,908,492		14.93	to		13.65		27,366,726		2.69			0.00		to	1.50			12.02		to	10.37
	12/31/2016		2,075,714		13.33	to		12.36		26,720,762		3.90			-		to	1.50			5.16		to	3.61
TA International Growth Initial Class
	12/31/2020		1,988,790		19.05	to		17.41		40,421,994		2.26			0.00		to	1.50			20.90		to	19.11
	12/31/2019		2,140,122		15.75	to		14.62		36,425,138		1.62			0.00		to	1.50			27.68		to	25.80
	12/31/2018		2,293,934		12.34	to		11.62		31,067,991		1.21			0.00		to	1.50			(17.70	)	to	(18.93	)
	12/31/2017		2,582,105		14.99	to		14.34		43,373,061		1.39			0.00		to	1.50			27.24		to	25.37
	12/31/2016		2,430,919		11.78	to		11.43		33,839,961		1.51			0.00		to	1.50			0.08		to	(1.40	)
TA Janus Balanced Initial Class
	12/31/2020		671,553		23.89	to		20.13		14,171,366		1.67			0.00		to	1.50			14.59		to	12.90
	12/31/2019		702,584		20.85	to		17.83		13,105,025		1.59			0.00		to	1.50			22.08		to	20.28
	12/31/2018		683,989		17.08	to		14.82		10,568,133		1.65			0.00		to	1.50			0.22		to	(1.27	)
	12/31/2017		724,892		17.04	to		15.01		11,305,225		1.58			0.00		to	1.50			17.05		to	15.32
	12/31/2016		715,770		14.56	to		13.02		9,685,373		1.22			0.00		to	1.50			4.33		to	2.79
TA Janus Mid-Cap Growth Initial Class
	12/31/2020		8,151,056		40.30	to		30.20		443,552,033		0.23			0.00		to	1.50			19.20		to	17.44
	12/31/2019		8,475,626		33.81	to		25.72		395,731,444		0.07			0.00		to	1.50			36.71		to	34.69
	12/31/2018		8,971,980		24.73	to		19.09		312,172,498		0.06			0.00		to	1.50			(1.22	)	to	(2.69	)
	12/31/2017		9,183,297		25.03	to		19.62		337,913,344		0.10			0.00		to	1.50			29.01		to	27.11
	12/31/2016		9,076,020		19.40	to		15.44		282,519,239		-			0.00		to	1.50			(2.04	)	to	(3.49	)

34

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

5. Financial Highlights (continued)

		At December 31									For the Year Ended December 31
Subaccount		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
TA JPMorgan Asset Allocation - Conservative Initial Class
	12/31/2020		1,279,451	$	20.32	to	$	16.32	$	25,594,436		2.48	%		0.00	%	to	1.50	%		11.47	%	to	9.82	%
	12/31/2019		1,349,901		18.23	to		14.86		24,659,624		2.56			0.00		to	1.50			13.90		to	12.22
	12/31/2018		1,411,802		16.00	to		13.24		23,252,229		1.90			0.00		to	1.50			(3.98	)	to	(5.41	)
	12/31/2017		1,808,077		16.66	to		14.00		33,444,895		2.07			0.00		to	1.50			12.81		to	11.15
	12/31/2016		1,828,993		14.77	to		12.59		31,056,638		2.03			0.00		to	1.50			4.62		to	3.08
TA JPMorgan Asset Allocation - Growth Initial Class
	12/31/2020		14,018,912		25.67	to		21.77		366,285,895		1.70			0.00		to	1.50			24.74		to	22.90
	12/31/2019		14,617,957		20.58	to		17.71		313,982,504		1.72			0.00		to	1.50			26.05		to	24.19
	12/31/2018		14,820,361		16.33	to		14.26		263,807,775		1.88			0.00		to	1.50			(10.39	)	to	(11.73	)
	12/31/2017		14,903,405		18.22	to		16.16		312,891,018		1.45			0.00		to	1.50			24.63		to	22.80
	12/31/2016		14,967,195		14.62	to		13.16		264,735,115		2.18			0.00		to	1.50			6.08		to	4.51
TA JPMorgan Asset Allocation - Moderate Initial Class
	12/31/2020		3,739,893		22.05	to		17.77		77,729,302		2.19			0.00		to	1.50			12.60		to	10.94
	12/31/2019		3,883,875		19.58	to		16.02		73,482,650		2.18			0.00		to	1.50			16.42		to	14.70
	12/31/2018		3,932,159		16.82	to		13.96		67,106,795		1.74			0.00		to	1.50			(5.13	)	to	(6.54	)
	12/31/2017		3,956,767		17.73	to		14.94		76,977,415		1.86			0.00		to	1.50			16.47		to	14.75
	12/31/2016		4,086,087		15.22	to		13.02		71,525,376		2.20			0.00		to	1.50			5.56		to	4.01
TA JPMorgan Asset Allocation - Moderate Growth Initial Class
	12/31/2020		14,530,939		23.05	to		19.14		323,755,750		2.05			0.00		to	1.50			15.07		to	13.37
	12/31/2019		15,058,363		20.03	to		16.88		299,769,826		2.18			0.00		to	1.50			20.01		to	18.24
	12/31/2018		15,195,604		16.69	to		14.28		265,001,910		1.87			0.00		to	1.50			(7.07	)	to	(8.45	)
	12/31/2017		15,118,264		17.96	to		15.60		304,126,820		1.72			0.00		to	1.50			19.77		to	18.01
	12/31/2016		15,259,736		15.00	to		13.22		269,751,359		2.03			0.00		to	1.50			6.55		to	4.98
TA JPMorgan Core Bond Initial Class
	12/31/2020		1,513,024		19.62	to		14.82		36,853,161		3.82			0.00		to	1.50			7.46		to	5.88
	12/31/2019		1,399,936		18.25	to		14.00		34,000,646		2.59			0.00		to	1.50			8.53		to	6.92
	12/31/2018		1,461,988		16.82	to		13.09		34,423,020		3.26			0.00		to	1.50			0.08		to	(1.41	)
	12/31/2017		1,388,407		16.81	to		13.28		35,983,696		2.91			0.00		to	1.50			3.66		to	2.14
	12/31/2016		1,437,967		16.21	to		13.00		40,055,708		2.17			0.00		to	1.50			2.39		to	0.88
TA JPMorgan Enhanced Index Initial Class
	12/31/2020		378,797		35.79	to		31.96		13,944,983		1.52			0.00		to	1.50			20.16		to	18.39
	12/31/2019		352,818		29.79	to		27.00		10,944,909		1.18			0.00		to	1.50			31.03		to	29.10
	12/31/2018		355,833		22.73	to		20.91		8,703,767		1.05			0.00		to	1.50			(6.01	)	to	(7.41	)
	12/31/2017		375,201		24.19	to		22.59		10,203,033		0.59			0.00		to	1.50			21.15		to	19.37
	12/31/2016		351,180		19.96	to		18.92		8,082,798		0.40			0.00		to	1.50			11.35		to	9.71
TA JPMorgan International Moderate Growth Initial Class
	12/31/2020		779,849		17.77	to		14.34		12,257,975		2.73			0.00		to	1.50			14.90		to	13.20
	12/31/2019		819,530		15.47	to		12.67		11,283,934		2.33			0.00		to	1.50			17.77		to	16.03
	12/31/2018		867,382		13.13	to		10.92		10,202,855		2.37			0.00		to	1.50			(11.58	)	to	(12.90	)
	12/31/2017		946,821		14.85	to		12.54		12,670,600		1.83			0.00		to	1.50			21.78		to	19.99
	12/31/2016		979,021		12.20	to		10.45		10,835,853		2.10			0.00		to	1.50			1.22		to	(0.27	)
TA JPMorgan Mid Cap Value Initial Class
	12/31/2020		173,752		25.05	to		43.86		6,250,257		1.26			0.00		to	0.90			1.35		to	0.45
	12/31/2019		187,027		24.72	to		43.66		6,646,187		1.39			-		to	0.90			25.83		to	25.08
	12/31/2018		203,109		19.60	to		34.91		5,759,797		0.86			0.30		to	0.90			(12.07	)	to	(12.60	)
	12/31/2017		218,249		22.29	to		39.94		7,157,522		0.78			0.30		to	0.90			13.14		to	12.46
	12/31/2016		236,161		19.70	to		35.51		7,277,280		2.08			0.30		to	0.90			14.25		to	13.57
TA JPMorgan Tactical Allocation Initial Class
	12/31/2020		1,877,825		17.46	to		13.62		43,700,739		2.43			0.00		to	1.50			12.36		to	10.70
	12/31/2019		1,953,351		15.54	to		12.30		41,541,857		2.36			0.00		to	1.50			12.18		to	10.52
	12/31/2018		2,173,742		13.86	to		11.13		42,293,856		2.23			0.00		to	1.50			(2.94	)	to	(4.38	)
	12/31/2017		2,044,825		14.27	to		11.64		43,708,710		1.84			0.00		to	1.50			8.75		to	7.15
	12/31/2016		1,962,394		13.13	to		10.86		43,892,286		1.35			0.00		to	1.50			4.46		to	2.92

35

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

5. Financial Highlights (continued)

		At December 31									For the Year Ended December 31
Subaccount		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
TA Managed Risk - Balanced ETF Initial Class
	12/31/2020		163,791	$	18.71	to	$	16.45	$	2,743,412		2.29	%		0.00	%	to	1.50	%		4.48	%	to	2.94	%
	12/31/2019		185,551		17.91	to		15.98		2,996,129		2.53			0.00		to	1.50			15.92		to	14.21
	12/31/2018		116,146		15.45	to		13.99		1,631,149		1.77			0.00		to	1.50			(4.33	)	to	(5.75	)
	12/31/2017		134,365		16.15	to		14.85		1,980,672		1.81			0.00		to	1.50			13.72		to	12.04
	12/31/2016		110,976		14.20	to		13.25		1,460,057		1.89			0.00		to	1.50			3.94		to	2.41
TA Managed Risk - Growth ETF Initial Class
	12/31/2020		191,544		19.77	to		17.76		3,437,251		2.25			0.00		to	1.50			4.52		to	2.98
	12/31/2019		234,232		18.91	to		17.25		4,042,956		2.10			0.00		to	1.50			19.74		to	17.97
	12/31/2018		219,770		15.79	to		14.62		3,189,192		1.81			0.00		to	1.50			(6.99	)	to	(8.37	)
	12/31/2017		224,120		16.98	to		15.96		3,522,359		1.89			0.00		to	1.50			18.78		to	17.03
	12/31/2016		267,686		14.30	to		13.63		3,564,335		1.92			0.00		to	1.50			4.97		to	3.42
TA Morgan Stanley Capital Growth Initial Class
	12/31/2020		2,578,953		84.80	to		75.68		227,311,417		-			0.00		to	1.50			117.87		to	114.66
	12/31/2019		2,574,775		38.92	to		35.25		106,517,393		-			0.00		to	1.50			23.74		to	21.91
	12/31/2018		1,912,902		31.45	to		28.92		65,480,293		-			0.00		to	1.50			6.68		to	5.10
	12/31/2017		1,921,519		29.48	to		27.52		63,401,145		-			0.00		to	1.50			43.59		to	41.48
	12/31/2016		1,695,157		20.53	to		19.45		42,402,687		-			0.00		to	1.50			(2.26	)	to	(3.70	)
TA Morgan Stanley Global Allocation Initial Class
	12/31/2020		363,530		18.02	to		15.98		6,277,574		1.95			-		to	1.50			18.59		to	16.84
	12/31/2019		394,579		15.19	to		13.68		5,779,374		1.91			-		to	1.50			17.85		to	16.46
	12/31/2018		437,770		12.86	to		11.75		5,454,596		2.20			0.30		to	1.50			(7.68	)	to	(8.78	)
	12/31/2017		468,871		13.93	to		12.88		6,348,837		2.00			0.30		to	1.50			13.41		to	12.07
	12/31/2016		497,686		12.28	to		11.49		5,948,994		0.98			0.30		to	1.50			4.62		to	3.39
TA Multi-Managed Balanced Initial Class
	12/31/2020		3,966,299		31.46	to		25.40		135,037,483		1.56			0.00		to	1.50			15.90		to	14.18
	12/31/2019		4,222,210		27.15	to		22.24		125,581,396		1.64			0.00		to	1.50			21.77		to	19.97
	12/31/2018		4,476,533		22.30	to		18.54		111,103,271		1.42			0.00		to	1.50			(3.66	)	to	(5.09	)
	12/31/2017		4,746,359		23.14	to		19.54		124,785,035		0.85			0.00		to	1.50			14.14		to	12.45
	12/31/2016		4,932,676		20.28	to		17.37		117,567,654		0.96			0.00		to	1.50			7.87		to	6.28
TA PIMCO Tactical - Balanced Initial Class
	12/31/2020		368,625		18.56	to		15.60		6,051,980		3.44			0.00		to	1.50			9.18		to	7.57
	12/31/2019		402,997		17.00	to		14.51		6,138,969		0.42			0.00		to	1.50			19.90		to	18.13
	12/31/2018		439,725		14.18	to		12.28		5,644,298		3.46			0.00		to	1.50			(6.75	)	to	(8.13	)
	12/31/2017		474,705		15.21	to		13.37		6,615,284		0.53			0.00		to	1.50			12.42		to	10.76
	12/31/2016		510,821		13.53	to		12.07		6,408,762		0.51			0.00		to	1.50			5.65		to	4.09
TA PIMCO Tactical - Conservative Initial Class
	12/31/2020		734,492		17.68	to		14.86		11,323,592		1.67			0.00		to	1.50			10.22		to	8.59
	12/31/2019		743,974		16.04	to		13.69		10,552,121		0.35			0.00		to	1.50			17.86		to	16.12
	12/31/2018		777,894		13.61	to		11.79		9,513,930		3.53			0.00		to	1.50			(4.92	)	to	(6.33	)
	12/31/2017		745,711		14.32	to		12.59		9,721,335		1.48			0.00		to	1.50			10.70		to	9.07
	12/31/2016		776,246		12.93	to		11.54		9,288,937		0.59			0.00		to	1.50			5.22		to	3.67
TA PIMCO Tactical - Growth Initial Class
	12/31/2020		807,176		18.50	to		15.55		12,749,686		4.08			0.00		to	1.50			9.26		to	7.65
	12/31/2019		853,922		16.94	to		14.45		12,581,043		-			0.00		to	1.50			21.97		to	20.17
	12/31/2018		916,901		13.88	to		12.02		11,257,710		3.25			0.00		to	1.50			(7.49	)	to	(8.87	)
	12/31/2017		970,002		15.01	to		13.19		13,146,326		0.61			0.00		to	1.50			15.13		to	13.44
	12/31/2016		1,008,345		13.04	to		11.63		12,091,793		-			0.00		to	1.50			5.09		to	3.54
TA PIMCO Total Return Initial Class
	12/31/2020		1,334,112		19.41	to		14.84		22,421,410		4.61			0.00		to	1.50			7.68		to	6.09
	12/31/2019		1,309,198		18.02	to		13.99		20,996,230		2.34			0.00		to	1.50			8.41		to	6.81
	12/31/2018		1,379,415		16.63	to		13.09		21,095,608		2.52			0.00		to	1.50			(0.65	)	to	(2.13	)
	12/31/2017		1,518,101		16.74	to		13.38		24,393,778		-			0.00		to	1.50			4.88		to	3.34
	12/31/2016		1,462,201		15.96	to		12.95		23,475,769		2.34			0.00		to	1.50			2.71		to	1.20

36

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

5. Financial Highlights (continued)

		At December 31									For the Year Ended December 31
Subaccount		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
TA QS Investors Active Asset Allocation - Conservative Initial Class
	12/31/2020		314,889	$	15.73	to	$	13.42	$	4,577,567		2.20	%		0.00	%	to	1.50	%		6.99	%	to	5.41	%
	12/31/2019		324,549		14.70	to		12.73		4,430,550		2.27			0.00		to	1.50			11.47		to	9.82
	12/31/2018		337,448		13.19	to		11.59		4,151,993		1.93			0.00		to	1.50			(2.61	)	to	(4.05	)
	12/31/2017		329,104		13.54	to		12.08		4,174,813		1.95			0.00		to	1.50			11.92		to	10.27
	12/31/2016		365,468		12.10	to		10.96		4,166,203		1.48			0.00		to	1.50			2.87		to	1.36
TA QS Investors Active Asset Allocation - Moderate Initial Class
	12/31/2020		160,979		15.03	to		13.32		2,305,224		2.11			-		to	1.50			3.59		to	2.06
	12/31/2019		180,588		14.51	to		13.05		2,517,994		2.10			-		to	1.50			11.10		to	9.79
	12/31/2018		181,696		13.03	to		11.89		2,282,530		1.75			0.30		to	1.50			(4.27	)	to	(5.40	)
	12/31/2017		184,491		13.61	to		12.57		2,429,683		1.71			0.30		to	1.50			15.36		to	14.00
	12/31/2016		219,017		11.79	to		11.03		2,512,939		1.46			0.30		to	1.50			2.13		to	0.92
TA QS Investors Active Asset Allocation - Moderate Growth Initial Class
	12/31/2020		1,763,969		15.87	to		12.92		24,830,847		2.11			0.00		to	1.50			(1.85	)	to	(3.30	)
	12/31/2019		1,882,826		16.17	to		13.36		27,046,353		1.94			0.00		to	1.50			11.59		to	9.94
	12/31/2018		2,030,239		14.49	to		12.15		26,218,151		1.56			0.00		to	1.50			(5.67	)	to	(7.07	)
	12/31/2017		2,197,545		15.36	to		13.08		30,221,332		1.53			0.00		to	1.50			20.55		to	18.78
	12/31/2016		2,356,485		12.75	to		11.01		27,030,879		1.32			0.00		to	1.50			2.32		to	0.81
TA Small/Mid Cap Value Initial Class
	12/31/2020		3,742,740		36.74	to		23.88		119,641,985		1.19			0.00		to	1.50			4.04		to	2.50
	12/31/2019		3,983,695		35.31	to		23.30		128,821,916		0.97			0.00		to	1.50			25.28		to	23.43
	12/31/2018		4,150,157		28.19	to		18.88		113,071,433		0.90			0.00		to	1.50			(11.46	)	to	(12.77	)
	12/31/2017		4,237,645		31.83	to		21.64		139,162,267		1.13			0.00		to	1.50			15.55		to	13.85
	12/31/2016		4,252,175		27.55	to		19.01		130,924,094		0.80			0.00		to	1.50			21.13		to	19.34
TA T. Rowe Price Small Cap Initial Class
	12/31/2020		1,659,731		50.84	to		40.82		71,104,851		-			0.00		to	1.50			23.56		to	21.74
	12/31/2019		1,661,544		41.15	to		33.53		59,806,465		-			0.00		to	1.50			32.77		to	30.81
	12/31/2018		1,673,978		30.99	to		25.63		47,121,727		-			0.00		to	1.50			(7.08	)	to	(8.46	)
	12/31/2017		1,827,193		33.35	to		28.00		57,593,105		-			0.00		to	1.50			22.39		to	20.59
	12/31/2016		1,842,107		27.25	to		23.22		50,509,301		-			0.00		to	1.50			11.22		to	9.58
TA WMC US Growth Initial Class
	12/31/2020		29,290,504		42.67	to		36.13		1,603,455,800		0.11			0.00		to	1.50			37.30		to	35.27
	12/31/2019		30,981,983		31.08	to		26.71		1,246,807,757		0.13			0.00		to	1.50			40.05		to	37.98
	12/31/2018		32,437,685		22.19	to		19.36		943,928,588		0.48			0.00		to	1.50			0.21		to	(1.28	)
	12/31/2017		34,286,966		22.15	to		19.61		1,009,620,361		0.42			0.00		to	1.50			29.20		to	27.29
	12/31/2016		35,944,589		17.14	to		15.40		839,304,146		0.40			0.00		to	1.50			2.81		to	1.30

^{(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.

37

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

5. Financial Highlights (continued)

*** 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. 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. 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.

38

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

6. Administrative and Mortality and Expense Risk Charges

Under some forms of the contracts, a sales charge and premium taxes are deducted by TLIC 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 TLIC 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 TLIC 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. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.

7. Income Tax

Operations of the Separate Account form a part of TLIC, 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 TLIC 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 TLIC. Under existing federal income tax laws, the income of the Separate Account is not taxable to TLIC, as long as earnings are credited under the variable life contracts.

39

Transamerica Life Insurance Company

WRL Series Life Account

Notes to Financial Statements

December 31, 2020

8. 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 in the financial statements.

9. Related Parties

Transamerica Capital, Inc. (TCI), a wholesaling broker-dealer, is an affiliated entity of TLIC and an indirect wholly owned subsidiary of Aegon N.V. TCI distributes TLIC’s products through broker-dealers and other financial intermediaries.

The subaccounts invest in the mutual funds listed in Footnote 1. These investments include funds managed by Transamerica Asset Management, Inc. (TAM). Transamerica Fund Services, Inc. (TFS) serves as a transfer agent to TAM, and Aegon USA Asset Management Holding, LLC (AAM) serves as a sub-advisor for certain funds managed by TAM. TAM, TFS and AAM are affiliated entities of TLIC and indirect wholly owned subsidiaries of Aegon N.V. Funds managed by TAM are identified by their fund name, which includes reference to Aegon, Transamerica or both. The Separate Account pays management fees to the related funds as detailed in the fund prospectus.

No charges other than those disclosed in Footnote 6 are deducted for the service rendered by related parties.

Contract owners may transfer funds between available subaccount options within the Separate Account. These transfers are performed at unit value at the time of the transfer.

40